West Entrepreneur Forum / Business Ideas / Transportation / How To Start Profitable Haulage Business In Nigeria (589 Views)
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Haulage is the transportation of goods by road and railway. It is very important to the development of any nation. If economic development is to be achieved by a nation then the transportation system has to be developed. Efficient transportation system will aid production and distribution of goods and services.
Road haulage has been the preferable means of moving goods and service between city due to the underdevelopment of Nigeria’s rail system.
AREAS TO CONSIDER WHEN UNDERTAKING A HAULAGE BUSINESS
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In embarking on a haulage business the following areas will be considered:
1. CHOOSE A NICHE
The truck industry is a very large and in order to succeed you need to choose a niche for yourself. There are several niches in the haulage business and the type you select will determine the type of truck you will be needing and the startup capital. For example, if you decide to on petroleum product haulage you will need petroleum tanker and will have to register with an oil company but if u decide to venture into building material haulage what you will need is a tipper or lorry.
2. STARTUP CAPITAL
The next step is to get your capital and you are going to be needing a lot it because haulage business is highly capital intensive. Your startup capital will largely depend on the number of fleets you intend to own. You will need to decide if you are going to be buying new trucks or used trucks. There are ways in which you can get your trucks, either through outright purchase or get them on a lease.
3. RULES AND REGULATIONS
Another area that needs serious consideration is the legal requirements for starting haulage business. You will be required obtain different licenses and permit and would also be presented with a set of rules and regulations to be strictly adhered to. You should carry out an extensive research on what rules there are and ensure total compliance with the rules.
Lots of businesses come with risk so also is the haulage business. You would be carrying expensive merchandise which does not belong to you and will be required to carry them safely to their destination. Considering the distance that needs to be covered in delivering these goods, it is impossible to predict what might happen on the way.
Accidents might occur, cases of theft may arise, dishonest drivers may divert the goods and this may be lead to huge debt on the part of the haulage company. This is why is important to obtain insurance for the haulage business in order to mitigate against the risk listed above.
5. MANAGEMENT STRATEGY
The next area to look at in starting up haulage business is your management strategy. A good management team is essential in carrying on a successful trucking company. If you lack experience in this area, you may need to employ a manager who is experienced to oversee the day to day running of the business and also make it profitable.
This is another area to consider as well. You will have to find drivers that are willing to work with you in order to make your business profitable.
Conclusively, the trucking business is one of the toughest areas to break into but once you succeed the reward is worth it.
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