How to start up your own transport/logistics company
A transport and logistics firm specializes in the movement and transportation of goods and cargo, whether it be shipping, trucking, or constructing air transportation.
Are you looking to starting your own transport and logistics company in Nigeria? Then this article can guide you.
This business has a lot of other businesses depending on it, because, without transport and logistics a lot of other businesses cannot survive. Hence, it is in high demand at all times. E-commerce businesses regularly outsource the transportation of their orders to transport and logistics companies.
So, if you’re ready; let’s take a look at how to start up a transport and logistics business in Nigeria.
- You need experience: Before you start up your own transport and logistics company, it is important that you acquire some level of experience in the sector. By getting attached with a logistics company you can gain rich experience and depth of understanding about how things work. This experience will help you to understand the ins and outs of the business. In addition, working in the industry will help you to establish networks with some companies that may represent future clients.
- Get funding: You need to start looking for funding options for your new startup. The very first official step involved to start up a transport and logistics company is obtaining the required capital. In order to do so, you will need to draw up a perfectly written plan which must be able y convince potential investors that you can make your business become very profitable and successful. In your business plan you should include any connections that you already have in the logistics industry who are willing to give you their business.
Getting a business plan written for your business is really easy; contact 08105636015, or send a direct mail to firstname.lastname@example.org
Commercial banks in Nigeria are a potential source of start up capital. Just go ahead and apply for a loan in anyone and try to meet their requirements.
- Choosing a niche: Now, it’s important for you to determine from the onset what type of transport and logistics company you would like to run. You will need to decide on the type of goods your logistics company will be operating with, and the distance you would like to cover during operations. Once you can pin these down, you will be able to determine what your rates will be and how much you’ll be charging.
- Set a budget: It is imperative that you first set a budget before fully launching the business. That is why it is necessary that you must have gained some kind of experience even before deciding to start up your own transport and logistics company. A budget will help you iron out strategic financial issues that will likely come up when you’re operating your business. So draw up a budget for your intending business, sort out costs like acquiring equipment, Power supply, Advertising/marketing, rent, cost of registering the business, cost of preparing a business plan, salaries (for up to 6 months) and so on. Make sure that all these costs are able to cover the period it will take for the business to break even.
- Register your company name: Plan on incorporating your company, as it is very important for how the public perceive your company. You want to come across as professional as you will be dealing with other corporate bodies. So get your business name fully incorporated and registered with the Corporate Affairs Commission of Nigeria (CAC). choose a catchy name for your company and make it as professional as possible.
You can easily register your company online within a matter of two weeks. Find out how; contact any of our business consultant on; 08105636015 or send an email to dayohub@gmail. com
- Acquiring equipments: With sufficient capital, you can now move ahead to acquire the equipments you will need to successfully startup and run your business. Basically, a transport and logistics company requires loading equipments and vehicles capable of moving large quantities for goods such as trucks, ships or air planes. Buying these equipments are largely cost intensive; so it is recommended that you start by first renting equipments until your business begins to turn a profit and grow bigger. Depending on your particular niche; you can start up by using motor bikes in delivering your services.
- Your business location: You should probably consider locating your company in a region in which your business relationships and connections are centered. Hike closer to your target market. And then you can easily focus on getting their business and patronage.
- Open a website: This is absolutely crucial for your company. There is absolutely no way you can successfully run a transport and logistics company without putting up a website. This is one of business’s most important front, using your website, your customers can easily track track their goods from the point of purchase till it eventually gets delivered to them. So you want to ensure that your website is easy to use and responsive. Ensure that it is user friendly and easy to navigate. Your customers should be able to get email notifications, receipts, and delivery status. This way they get to exercise some level of control over orders/deliveries.
- Who to hire: You need to think of the labour requirements to running this business. Hire drivers, warehouse staff, dispatch riders, customer care personnel etc. These personnel will enhance the effectiveness of your business operations.
Top transport and logistics companies in Nigeria
Following is a list of top transport and logistics companies in Nigeria;
Kobo is a global logistics platform which leverages technology and efficient processes to serve its customers.
- GMC logistics
GMC logistics is an international freight forwarder for African businesses. GMC is intensely technology focused to deliver on its promise fast and on-time delivery.
- Red Star Express
Red Star Express provides a portfolio of full logistics solutions which includes but not limited to;
- International and domestic express delivery,
- Freight forwarding
- Integrated logistics solutions
- Information and documents management solutions
- Warehousing and E-commerce solutions.