An Offline business like logistics is one of the thriving businesses in Nigeria. The business may also be described as a delivery business. It involves the movement or delivering of goods from one place to another. Starting a logistic business does not require one to break the bank; you can either run it as a macro or micro business as there are alternatives regards the means of conveyance ranging from airlines, trucks, vans, saloon cars and bike. In this article, I will be revealing the steps on how to Start Logistics Business in Nigeria.
The logistic business has been existing for some time now, but the business remains evergreen. There is no better time to start a business. It is a lucrative offline business for anyone planning of establishing a business in Nigeria. The business can be capital intensive depending on the logistics factors you want to put in place or if you’re planning to run it on a small-scale level. But before going into this line of business, it is important that you know the right steps and have full knowledge on how the business works. Here are the steps to follow if you are planning to start logistics business.
Steps on how to Start Logistics Business in Nigeria
1. Write a business plan for the business
Every business starts with idea conceptualization. It is your idea to start a logistics business in Nigeria, that’s good, but you need to write a business plan for the business. The business plan is where you have everything about the company, including the vision and mission statement written down.
Your business plan is a blueprint about your business. It covers your investment capital and returns (Profit). As an entrepreneur venturing into a logistic business, you should know that there are other players in the industry, therefore, you need to find ways on how to succeed in the businesshow to succeed in the business. Your goal must be clearly stated in the business plan, include the cost of running the business, payment options, and expected return of investment(ROI).
But before you write or create a business plan for the logistics business, make sure you’ve carried a feasibility study about the business as you need to know the cost of things that would be needed for you to run the business successfully.
2. Get the funds ready
After you’ve drafted a business plan for the logistics business, you should able to know the minimum amount it will take to start the business. The area of specialization you want to go into will determine the amount to set out for the business. All these should be written down. These are some of the questions you need to ask yourself? Are you starting on a small-scale? Do you want to be among the big players? What aspect of logistics do you want to go into, Haulage, food delivery or parcel delivery? Answers to these which must be contained in your business plan will help you know the amount you will budget for the business. For instance, if you are planning to start a food delivery business, you should be considering buying vans or saloon cars. For a start, you can budget 600 hundred thousand naira for a fairly used Nigerian car or get a vehicle that will cost between 1.2- 1.3 million naira to buy a direct tokunbo wagon or van.
3. Register the company
To operate a legit business, you must register your company. Registration of the company is one of the important steps on how to Start Logistics Business in Nigeria. Get a lawyer if you can’t do it yourself. Apart from the registration with corporate affairs commission, the body in charge of the company and business registration in Nigeria, you should also register with other licenced unions like road transport association, advertising practitioners of Nigeria, because of the branded vehicle you will use in running the business.
4.Get other necessary tools for the business
To run a logistic company effectively, you need working tools like sound vehicle(s), bike, personnel to achieve that. Whether it is a bike delivery business or haulage, make sure you cover any loophole that will hinder the flow of business.
You, also need to create a business card, get your invoice/receipt available, hire one or two persons to help you run the business. A driver/delivery person, and another person assisting you in the business.
5. Create a website for the business
You having a business website is very paramount as that is where a client can check on your organization before using your service. You can create a simple website about your logistics business, write your vision statement and also state the services you render. For example, if you intend to start a haulage business, you can also include that you do rentals too within and outside your location. But when doing this make sure, an initial deposit is made.
You can get clients through your website. Usually, for a new business to survive, you need some marketing skillsmarketing skills. Creating a website is one of the steps on how to Start Logistics Business in Nigeria.
Get a website designer to create one for you. You can also, make it search engine friendly and you may also need to create an ad for the logistics business.
6. Get an office space and brand your vehicle or bike
Some offline businesses have an online presence, but for the logistics business, you will need an office space where clients can meet with you. It also depends on the kind of logistics business you want to go into.
Also, the vehicle you will use in running the business should be branded. That is also a way of advertising the business. Make sure you register the vehicle with the appropriate authorities to avoid them impounding your car.
You can start a logistics business anytime. The amount to start with depends on the area you want to venture into. Some are capital-intensive, while you can start some on a low budget. Planning is the main thing to consider here, before you start, check out your competitors, write proposals to companies, run an advertisement. So if you are ready, these are some of the steps on how to Start Logistics Business in Nigeria.