Commercial Transportation Business Plan in Nigeria

Our sample commercial transportation business plan in Nigeria can be used to access bank loans, proposal writing and grant applications. This business plan was complied after a proper feasibility study on inter state transport business in Nigeria was carried out. Furthermore,this business plan will be answer questions on how to register a transport company in Nigeria.

Read: Taxi Business Plan in Nigeria

To get your sample commercial transportation business plan in Nigeria, pay N10,000 to:

BANK NAME: FIRST BANK PLC

ACCOUNT NAME: CHIBUZOR TOCHI ONYEMENAM

ACCOUNT NUMBER: 3066880122

After payment, text your full name, email address and title (transportation business plan pdf) to 07033378184. Your business plan will be sent to your email within 15 minutes.

Now Read On…..

The need for human to move themselves, goods and services from one place to another, dates back as far back as the creation of man. It is and has always been a major concern for us to move from one place to another, whether via land, air or sea.

Many forms of transportation means have been made available over the centuries past, which within the last century has become more effective as the need is on the rise too but of these three above listed means of transportation the most popular and highly used means of transportation is the land transport system which is the easiest means of transportation of humans, goods and commodities.

The commitment to ensuring that land transportation is smooth and successful relates to more money for the one going into business because the owner wants to get his goods safely to its destination and people also need a smooth, hitch-free and accident-free transportation. So if you can guarantee the above you are assured of becoming rich very quickly.

Commercial transportation can be classified into three (3) sub-class and each of these class have different start-up capital and risk involved. They are as follows:

• Commercial motorcycle (Bike)
• Commercial tricycle (also known as keke-napep in most parts of Nigeria)
• Commercial vehicle
• Haulage services

Depending on the state in Nigeria you are located. Some state governments have banned the use of motorcycle and some state are not just interested in the use of keke-napep.

But for the benefit of this business plan we are going to be taking an in-depth look at commercial vehicles

CONSIDERATIONS BEFORE STARTING THIS BUSINESS

The first question to ask yourself is, DO I WANT TO START BIG OR SMALL? And if the answer that question is the former then the second question is DO I HAVE THE FUNDS OR A MEANS TO GET THIS FUND? If yes then you are good to go.

Here are other things to consider or step to carry out to ensure a great start-up.

1. DO adequate feasibility studies: Any business that must thrive the business owner must of a necessity do proper feasibility studies about the business, risk involves, high times and low times. This can help you in your decision before you put your money into it if you are willing to walk the mile. Contact drivers, car owners, union worker, transport companies (both private and government). This brings to light all dark or grey areas before going into the business.
2. Buy a bus (first grade tokunbo) – getting a clean first grade tokunbo bus is fairly easy. With the right amount you can secure one or more for your business depending on the cash at hand and the size of the business. A tokunbo bus with Air Conditioner cost about 1.9 million naira – N2.5 million depending on where you are buying from. Having this in mind that intra-city transport doesn’t give as much as inter-state transport, you may need to ensure that the vehicle(s) you are purchasing will be able to take the rigors of this business.

Things to consider when purchasing a car for this business:

1. Ensure that the car is new or almost new (a clean tokunbo will be nice for a start)
2. Ensure the make and model of car you are buying have readily available parts here in Nigeria.

• Ensure you go through the right channel when purchasing your car. You don’t want to get into any legal matters just yet.

1. Register the vehicle – there are two key registrations that need to be done after purchasing the vehicle. First registration should be vehicle registration with the federal road safety and all relevant bodies to ensure that the papers of the car are intact. Secondly is to register the vehicle with the union so as to operate without hindrances eg NURTW
2. Get a Qualified Driver – If you have one vehicle I will recommend that you drive the vehicle yourself to ensure maximum return on investment but if you have more than one it becomes impossible for you to take that advice so you will need to employ the services of a professional driver (with added vehicle repair skills will be of benefit but shouldn’t be a criteria for the hire).
3. Get a location for your cars (car park) – what this does is it makes it easy for your customers to locate you. When they want to travel they know exactly where to find you. What I love about the transport business is people don’t have favorites. They patronize who can get them to their destination and plus with only a little above 30% of Nigerians mobile the need for transport vehicle is on a daily increase. This location also needs a few things which I will list below:

• Office space.
• Staff (which may comprise of the following)
  • Driver(s)
  • Accountant
  • Mechanic(s)
  • Secretary
  • Conductor (where needed)
  1. Ensure to keep tabs on your driver – you don’t running of running your business aground. Make a clear estimate of the weekly, monthly and yearly income. This helps you to know if you’re been cheated.
  2. Have a percentage of your income that goes into compulsory savings. This will be for either a rainy day or to expand the business except if you want to remain at that level but soon you will go out of the business especially because of it competitive nature.
  3. Insure your vehicle. This I very important even though very few vehicles in Nigeria are insured; this protects you and your business from unwanted and unfortunate lose.
  4. Get all relevant papers work in place and registration from proper authorities.
  • National Union of Road Transport Workers (NURTW)
  • Road Transport Employers Association of Nigeria (RTEAN)
  • Chartered Institute of Logistics and Transport (CILT)
  • Nigerian Association of Road Transport Owners (NARTO)
  • National Association of Government Approved Freight Forwarders (NAGAFF)
  1. Have a legal practitioner: You really may not know when you may need the help of a legal practitioner to get you out of a tight corner either with a disgruntled staff, law enforcement agents /agencies, customer or from someone that wants to take your business for himself.
  2. Install speed limiter: this is a device that restricts the driver to a particular speed and if this speed is exceeded the engine is shut down for a few minutes. This helps to keep the driver in check and to avoid over-speeding which may be disastrous in the event of an accident on the highway.
  3. INSTALL A TRACKING SYSTEM: As insecurity is on the rise and corruption is through the roof it is important to have measures in place to secure you from the unfortunate. Installation of a tracking system can help you in the following areas:
  4. It can help keep track of drivers route, stops etc.
  5. It can help recover vehicle in the advent of theft
  See also How to start a Ferry Business in Nigeria

  iii. cars and passengers can be recovered on time in the event of kidnappings.

  1. Website and publicity: you could build a website which will help ease the stress of booking and paying for transportation fare. This system helps to ensure that less cash is carried around since the customer books for the journey at his convenience and pays through a payment processor which sends the money straight to the bank. In the beginning you will need to do a lot of publicity because of the competitions around; you may need to go on radio, TV, social media etc. To advertise your business until you have the hearts and minds of the customers. Give discounts and offer to give them free meal as they travel with your busses. All these helps to attract people your way.

  REASONS WHY TRANSPORTATION BUSINESS IS LUCRATIVE

  1. Due to the land mass in Nigeria with few water bodies scattered all over the country except for cities like Lagos and other riverine areas, most Nigerians are stuck with road transportation as the only available means of moving themselves, their goods and services. With the population of the country rising slightly above 160,000,000 people with the need to go to school, places of work and place of interest and with only 30% as car owners, it is obvious that transport business will be a legal and lucrative way of making money.
  2. You can make this business a passive one. You do not need to quit your daily job or stay with this full time. It can function like a goldmine you don’t have to get dirty only smile to the bank.
  3. It is a lucrative business which can make close to N300,000 in a month. (This depends on your location, where you transport people to, how often you travel and how many vehicles you have. It may even be more).
  4. The demand is high and always on the increase especially during festive seasons where transport fare can increase by 300% due to the rush that is experience at that moment.
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  Tools Needed to Start Transportation Business

  You will surely need the following tools to start up this business.

  1. Engine and vehicle lift
  2. Air tools and accessories
  3. Clamps and measuring tools
  4. Creepers and carts
  5. Fitting and hose/ Line connector
  6. Gloves
  7. Hammer
  8. Nuts, Bolts Washers
  9. Screwdrivers
  10. Power tools
  11. etc

  FOR A SUSTAINABLE BUSINESS HERE ARE A FEW TIPS

  Because of the nature of this business and the competitive nature there are a few things that your organization cannot compromise to ensure that you remain in business and expand within a short time.

  1. Avoid delays: no one appreciates time wastage when about to go for a trip
  2. Have good customer relationship
  3. Never leave a customer stranded always ensure that they get to their destination in good time as much as it depends on you.
  4. You cannot mortgage the health of your customers and staff so always endeavor to keep your environment clean as it is said “cleanliness is next to Godliness”
  5. Be time conscious ensure that you always keep to your daily schedules; it has a way of increasing patronage.
  6. Make sure your prices are affordable. Give them the best service for the best price
  7. Avoid over speeding “speed kills” if people feel unsafe in your vehicles then they will not patronize your business. Encourage you drivers to stay with safe speed limit.
  8. Get local food sellers available in your garage to keep customers satisfied.
  9. Do regular maintenance on your vehicle and if they are becoming very old I advise that you change them.
  10. Employ well behaved and possible educated staff. When your customers are treated with respect and dignity that could also help market your business. (it is called word of mouth kind of marketing).

  CONCLUSION: Every business that follows the proper channel and covers all the necessary details will most often than not succeed. If you plan to remain in this business for a long time and grow bigger then you must always put your customers need ahead. Seek to train your staff to satisfy the customer. One other thing that makes staff help crumble business is when they see that you are making lots of money and you are not paying them properly; try as much as possible as the business grows also be concerned about the growth and welfare of your staff members. This instills loyalty and commitment which cannot be bought but earned over time by good gestures.

  Get your sample commercial transportation business plan in Nigeria, pay N10,000 to:

  BANK NAME: GUARANTY TRUST BANK (GTB)

  ACCOUNT NAME: CHIBUZOR TOCHI ONYEMENAM

  ACCOUNT NUMBER: 0044056891

  BANK NAME: FIRST BANK PLC

  ACCOUNT NAME: CHIBUZOR TOCHI ONYEMENAM

  ACCOUNT NUMBER: 3066880122

  After payment, send your full name, email address and topic (i.e. transportation business plan pdf) to 07033378184. Your business plan will be sent to your email within 15 minutes.