HOW TO START A LOGISTICS BUSINESS IN NIGERIA
The logistics business is one of the fast rising and lucrative businesses in the country today. Things need to be moved from one place to another and that’s how this business comes into being. It provides individuals with an opportunity to send goods or products from one place to another without having to do it themselves or going to a distance to get the goods transferred. The business is fast rising and becoming one of the bright business prospects in the Nigerian business world today. The demand for the services from this business is increasing by the day and it could also make individuals who venture into it get huge amounts of profits if properly set up.
The logistics business simply involves the transfer or movement of goods or products from the point of origin to the comfort of the final consumers. It simply means helping with the transfer of a product from one of place to another.For example, if Mr A has something to send to Mr B and the both live far apart from each other, they can just hire a logistics company to send someone to pick up the product from Mr A and hand it over to Mr B without stress or having to go through any issue in getting the product to the required destination. The business is something that has been in practice for a very long time even though not for business activities.
With many businesses setting up online and having all their operations done remotely, there will definitely be need at one point or the other to get final products to consumers and in doing that, logistics companies come in handy to help sort this issue. Stores and several other types of online businesses are opening up and some of them involve actual goods that needs to be in the hands of a consumer such as food stuffs, clothes, bags and so on. To ensure easy distribution or transfer of the product in question, you’ll need to hire someone who can help deliver the goods as it will be extremely stressful to do it all by yourself and even if you choose to, orders come from different places. That’s how the logistics business comes in for a business like this. It is complementary to online business.
One of the main advantages of starting the business is of course the demand for the services. These days, people prefer to do things without stress and also from the comfort of their homes. Even individuals who are not into any form of business also use logistic companies if they need to send something to friends or families. And as the rate at which online businesses are being started, it is surely a good idea as they go hand in hand. All you’ll need is properly setting up and getting the customers and this wouldn’t even be a problem for you provided all things are in place.
Another thing is that you don’t need any kind of special skill or educational qualifications or even experience to be able to start up the business. It’s a business that can be started as long as you’re prepared for whatever comes during the course of starting the business. You won’t even probably be in charge of driving or riding the means of transport used for delivery as you can employ people who can do that.
Starting the business is not an extremely hard thing to do. Just like I’ve mentioned, no special skills are needed, you just need to know the basics of running a business which is just an easy thing for an entrepreneur. Capital is always highly important and here too, it is just as important. Once the capital is ready, there will be no problem starting up the business and continuing the other processes involved in running the business.
In the next sub heads, I’ll be discussing the steps involved in starting a logistics business in the country and also some useful tips that will prove useful in each step for running, sustaining, and also ensure you’re making profits in the business.
No matter what you’ve heard someone saying about a business and how well success is assured or how lucrative it would turn out, always try to do your own research. The research will not cost anything except your time and that time will prove to be well spent when the business starts and the successes starts coming in. It is important to do a thorough investigation about the business since you’re going to be investing your money into it and you’ve never been involved in the business. Some hours of research won’t hurt.
The research is always meant to give you an idea of what to expect and the challenges ahead to be faced. It teaches future entrepreneur how the business works and what success means. It shows the risks involved and the ways to tackle them. It also gives ideas on how to sustain the business and work towards more success. Imagine missing out on any of the mentioned points, it’s more like being less equipped about something especially something you plan to spend money on.
There are experts in the business, of course, so also look to advise from these individuals as they are most likely the best bet for reliable information on the business. Take note of even the smallest things during the research period and pay close attention to how to stay and survive in the business. The research is as important as anything in the business.
- WRITE A BUSINESS PLAN
A business plan needs no introduction. It is equally as important as some of the other processes or things involved in the business. After a comprehensive and thorough research has been conducted, entrepreneurs must now put all their ideas into paper after, of course, deciding to start the business. The business plan will cover things like the way you plan to operate, the cost of several things, how you plan to market your business, future projections and also contingency plans.
The business plan serves a number of purposes. In cases where individuals might need to get investors or even get a loan, it will prove useful as it will contain all that needs to be known concerning the business. It is also going to serve as a point of reference for the proposed business.
- CAPITAL, REGISTRATION, AND LOCATION
Capital, as usual, is always very important to the start of the business. It ensure that the business is started and operating well. Without it, absolutely nothing can be started as the capital is responsible for getting you everything you’ll need during the course of the business. You can create a budget list for all things needed and use it in estimating the cost of starting up, which is also the capital for the business. One of those things that the capital will be used for is the registration. You’ll need to get the business registered with the proper authorities to ensure your business is legally approved to operate. During your research, it is important to also check up the regular authorities for this business and get registered with them. For location, you can either decide to run the business on site or off site. On-site means having a place where the business will be set up. From there, customers can come in and order for your service and it’s also there the things for the business will be kept. Off-site is doing it online. You’ve got the resources for the business but orders only come from the internet or social media pages. There will be no physical place for the business in this case. Whichever you choose, the business can be operated well.
- EQUIPMENTS NEEDED
At this point, the things needed for the business can be gotten. Most importantly, you’ll need to decide on the means of transportation you’ll be using for the business. You can choose between a bus, truck or cargo bike depending on the kind of product you want to deal with. Other things you will need include a computer or smart phone, and dispatch box.
There are different ways you can choose to market your business and one of them is social media. It is a very effective method that can really help your business. Other ways include word of mouth, referrals or even creating a website.
The logistics business is one of the fast rising business prospects in the country today. It is lucrative and is one business that will definitely bring in profits if properly set up.