Haulage / Logistics Business Plan in Nigeria
Haulage business otherwise known as trucking business is a very lucrative business. It is not very much popular because people view it as stress but there are profits in it. Haulage / Logistics business goes on roads and railways. Our focus will be on road which happens to be the most available one as a result of the transportation of heavy goods.
Haulage vehicles includes trucks, flatbed trailers, heavy duty machinery, big containers and silos. These equipment focus on the transportation of heavy goods such as ores, wastes, supplies and coals.
Haulage means the transportation of goods from one place to another. These goods includes petroleum products such as: kerosene, engine oil, liquidized natural gas and so on. It also includes the transportation of sands and stones to the company sites. The advantage of this business is that it can be done in every country since there is always need for the transportation of heavy goods.
Steps to start a haulage business
Write a business plan
This is important, write out the cost required for the business. This includes : how much do you have? Where do you intend to source for fund? Private or public individuals? How much do you need?
This includes feasibility studies on the market. Determining your location and competition. What skills do you have? If you don’t have, seek for skills or employ those who do. Knowledge is everything, it is the backbone of any business.
Purchase a truck
This is the second step, get a truck. Determine the type of truck you need. You can get either fairly used or new one. When getting the truck ensure to check these facts: high load capacity. One ton truck, half ton or three quarters ton truck.
It is important to get at least one ton truck, this is because it can carry heavy loads while half ton trucks can only go for local delivery. Also check the fuel efficiency. This is important, the fuel efficiency should be high, so that it doesn’t fail you in the middle of the road.
Register your business
This is very important. There are associations already on ground, so you must register your business and get permits in Corporate Affairs Commission.
Market your Haulage Business
This is a basic foundation, without marketing and advertising your business, you will get less customers.
Create a Reputation
A business reputation is very important. It is essential that your customers knows you for something unique and your availability and reliability should be high, this is because continuous failure to meet the target of your customers discourages them.
Determine your area of specialization
There are areas like: long distance /short distance. Bulky goods/light goods. Will you give your goods to a company or give it out for hire purchase?
Rules and regulations
Avoid debts – This is important, don’t go borrowing money from bank with high risk of how to pay back.
Install security and tracking features in your vehicle
This is because of untrustworthy drivers who drive carelessly or go to other crooked business to make money for themselves. You simply know the distance that your vehicle is covering or the location of your vehicles.
Employ experience drivers
This is important, don’t employ amateur, this is because your vehicle is expensive and the good very expensive, so you cannot afford to risk accident as a result of inexperienced driver.
Motivate your drivers
This is crucial, your drivers should be motivated. You can give them tips or render praises to them and even increase their salaries.
This business is very risky, anything can happen. The vehicle can encounter accidents, dishonest drivers, theft and so on. It is important to plan for events beyond your control. Insure your vehicles.
This involves knowing the customers needs and meeting them.
Maintenance of the vehicles
You can register in a reputable company that repairs vehicles.
Ways to earn money in Haulage / Logistics business
Independent operation – Here, you are solely in charge. You purchase the vehicles, maintain it, look for contracts, bear the risk and take the profits alone.
This involves placing your vehicles on a company. The company bears all the risk, look for contract and at the end of the agreed period, an agreed amount is paid to you.
This is almost the same with contractor but this time you deal directly with haulage company and not with company.
Challenges of haulage business
Highly management intensive
Poor roads – This leads to accidents and breakdown of vehicles leading to high cost of maintenance.
Drivers habits – Most drivers are tricky. It is hard to find a honest driver. These drivers seek for ways to cheat at all time.
You need a minimum of five trucks. One truck alone is expensive, getting five is cash draining.
Employing competent drivers.
This business is quite lucrative and also risky, it is important to research before taking a step so as not to fall into problems.
Our sample Haulage / Logistics Business Plan in Nigeria can be used to access bank loans, proposal writing and grant applications. The business plan was complied after a thorough feasibility study on Haulage / Logistics Business in Nigeria was done.
GET YOUR HAULAGE / LOGISTICS BUSINESS PLAN IN NIGERIA / FEASIBILITY STUDY. To place an order, pay N10,000 to
GTBank (Guaranty Trust Bank)
Account Name – Uwadia Eyemeka
Account No – 0127561472
After payment text your name, send a text of your e-mail address to 07036785443 and you’ll receive your HAULAGE / LOGISTICS BUSINESS PLAN / FEASIBILITY STUDIES REPORT.
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