A popular marketing influencer once added transportation (logistics business) to his billion-dollar industry list
Guess what? He was never wrong as he further defines how high in demand transportation is in our day to day lives from goods delivery to human transportation
A popular marketing influencer once added transportation to his billion-dollar industry list
Guess what? He was never wrong as he further defines how high in demand transportation is in our day to day lives from goods delivery to human transportation
Transportation industry is wide enough with developed branches whereby “delivery business” is one and also known as “logistics business” “courier services” and “Freight Company” respectively
If you find a way to help people or companies handle their inventory better, you’ll surely be rewarded handsomely, which is the primary purpose of this guide [inventory], with a few questions to complement the move
- How genuine is your logistic company?
- Why should clients or people choose you?
- What does your offer look like?
- How equipped are your employees and tools?
Let’s quickly see how these questions boil down into the steps to start a successful logistics business in Nigeria, as the transport business can never get saturated unless you’re not a hungry lion in this line of business
- What is a logistics business?
- How profitable is logistics or delivery business in Nigeria
- Step 1- mode of operating your logistics business
- Step 2- Get sufficient capital for your logistics business
- Step 3- Register your delivery business with CAC
- Step 4- Get an office for your delivery service
- Step 5- Create a website for your logistics service
- Step 6- Hire staff for your delivery business
- Step 7- Get all the gears for your delivery business
- Step 8- Market your delivery business
- Step 9- Get a receipt for your logistics service
What is a logistics business?
Logistics simply means the process of planning, implementing, and controlling the effective flow and storage of goods and services and related information from point of origin to point of consumption in accordance with consumer requirements
How profitable is logistics or delivery business in Nigeria
The holy trinity of all business comes in 3’S
- Strategy
- System
- Structure
You cannot achieve or sustain success in any business without perfecting them
Mastering these 3 elements is your key to a successful delivery business or logistic business in Nigeria and literally other businesses around the world, to keep getting an inflow of money day-in-day-out, even if you can’t lift a finger for months or you just decide to take a vacation
Because it’s next to the perfect system put in place for its counterpart [ecommerce business]
Delivery business and eCommerce work in synergy and as long as eCommerce business keeps the exponential growth, earning of potential customers per time with improvement in your delivery efficiency, there is endless to how much you can earn in logistics business as just 30 clients can put you on absolute millions of naira benchmark real quick with 1,500 deliveries
Now, what are you going to do to kick start your delivery business journey? Start with mode of operation
Step 1- mode of operating your logistics business
You need to know your intended level at which you’d operate beforehand, is it bus or motorcycle level, Interstate, or intra transport?
Would you like to start out as a transporter, contractor, or agent? You should know all these before you get your head in the game
You need your personal vehicle and a driver’s license to operate as a transporter while you need non, giving an agent a role a shot, but rewarded in commission from a concluded percentage from freight fee
In addition, the contractor’s role put you in a managerial position from getting contract and connecting transporter to clients, except for handling the wheel, and you can be all if you want to [agent, transporter, and contractor] depending on your ability and schedule
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Step 2- Get sufficient capital for your logistics business
As far a setting up a business is concerned, am not a fan of bank loans, just count me out
It’s okay to reach out to family and friends, religious microfinance cooperatives, as these sources barely place interest or attach stringent to the favor
An investor can also spread their wing far wide into your business idea if you perfectly sell yourself through how they could get the most of their money with a persuasive delivery business plan
Otherwise, get or stay at your 9-5 job until you’re flamboyant enough to garner around #400,000-#500,000 for the dive
Also Read: How to make money online in Nigeria top 12 ideas (2022)
Step 3- Register your delivery business with CAC
A registered business portrays credibility and unlocks access to more opportunities
You’d agree with me that some companies or high profile businesses can’t entrust their shipment to an unregistered delivery service, thus curtailing the logistics service in question client base or luck
We all know how tedious it is to get a loan from microfinance agencies
Big names in the industry now advertise how they constantly lower the loan approval bar to become more relevant in the field while the upcoming are already tapering down the same rigid policy to pull in more patrons
You should know not all have completely adhere to this likewise other humanitarian establishments that could be of great help to your logistics service existence
Register your delivery business with the corporate affairs commission to break unnecessary barriers for your business alongside acquisition of few licenses and permits from the government to prevent law enforcement agents drama
Also Read: How to start a successful business in Nigeria and the legal requirements
Step 4- Get an office for your delivery service
You need a spacious apartment to establish a physical presence and your automobile [vehicles & bikes]
it’s ideal to always have a physical presence for this kind of business to bolster clients trust and attract other relevant bodies that will be of significant cog in your establishment wheel
Step 5- Create a website for your logistics service
Yes, the essence is to get clients shipment down to their doorstep, yet a website can be a boon to your business movement
It tells more about your business than a business card, that is, you could cover a lot about your business [description, offices, image] and more
Bonabecks is a web design agency that could help you set up cost-effective delivery/logistics website within 72 hours frame
Step 6- Hire staff for your delivery business
This is no brainer, but I recommend skilful if not experienced employees
You can’t be at different places at a time, however, it’s still okay to take multiple roles before the appealing results start smiling upon your bank account
Step 7- Get all the gears for your delivery business
A mobile phone is paramount to establish communication
A bike equipped with the box to house shipment/product is still okay as per your little budget, aside from being cost-effective, it’s also easy to quickly navigate heavy traffic congestion
Below are other necessary equipment for your logistics service
- Computer system
- Dispatch box
- Accounting and other software
- Stationery
Step 8- Market your delivery business
The success of every business heavily rest on Its exposure to more target audience or people
This is why they say rich people reach more people, you need more eyes on your business beyond your physical location or few relatives that hear about it, that’s why you need to shine more lights on your logistics services with the below medium
- Logistics and delivery Business directories
- Press release/publication
- Social media advert
- Partnerships
- Referral marketing
Never, forget to get a good graphic designer to help design your delivery company brand logo into a sticker, then slap it ruthlessly on your delivery truck & bikes for free promotion, if you can also afford a paint job, let it drip
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Step 9- Get a receipt for your logistics service
For every delivery, you need a hard copy for the signatory to sign on as a reference for successful order delivery
You can’t wait for anything like the best time to start was yesterday, the second-best time is today
There will never be a perfect time to get in the game than now, someone somewhere is waiting to be your potential client
Would you leave them all to the next action taker or start building your client base with the first client hastily waiting for your service?
See you at the top!!!
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