Trucking and Haulage Business: Truly trucking and haulage business has remained.
If not the most, but one of the most profitable businesses in Nigeria.
Even though some people showed lack of interest in haulage and trucking business.
Because they believe perhaps, starting trucking and haulage business is risky, and besides.
Because of the cost of starting the business in Nigeria.
And how capital intensive the business is, many have been scared from starting trucking and haulage business.
Having said that, I want to ask, are you interested in starting trucking and haulage business?
And/or do you need the step by step approach in starting trucking and haulage business?
If your answers for the above questions are yes.
Then you are at the right blog, and in this article.
I will be showing you how to start trucking and haulage business in Nigeria.
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Trucking and Haulage Business
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Trucking and haulage industry generally, is one of the largest business anywhere in the world, including Nigeria.
So in Nigeria, trucking and haulage business a multi-million naira business with an unsaturated market.
Today, moving goods across long distance journey is turning into huge business.
Irrespective of what business you are engaging into, the truth is that.
You are likely to be transported from one place to the other.
Maybe from the point of purchase to where your warehouse is, should be in large quantity.
Trucking and Haulage Business
That is why haulage and trucking business is profitable.
But first you should know what you want, in most cases.
It is advisable to enter business for a good number of purposes.
Other than making money alone, at least.
You zeal for your business will give you the impetus to withstand any challenge.
While running you business, and there should be drive to be successful.
Even though haulage business is lucrative, it is not without risk.
So all what you need to start haulage business is to have a large heart.
And strong determination to succeed in trucking and haulage business.
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Step by step approach in starting haulage business:
- Select a niche in haulage business:
Trucking and haulage business has different field, it is a broad based business.
So you have to choose from these fields.
Because the niche you choose will determine to a large extent.
The type of haulage business you will start and the cost of starting it.
Including the kind motor vehicles you will purchase.
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Starting trucking and haulage business.
You will decide whether you will be carrying your goods in large quantities.
Or you will be renting your trucks to individuals engaging in haulage business within the industry.
You should decide on this before you make any effort to start haulage business.
For example, you want to be transporting petroleum products.
Then you will require a tanker, as well as registering with gas and oil company in Nigeria.
Or partner with a registered company as a sub contractor, or in the other way round.
You may decide to be conveying building materials.
For instance from quarry sites, then your type of vehicles will be tippers and some trucks.
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2. Cost of starting up haulage business:
Haulage business is a big time business that requires a lot of capital to startup the business.
And to a large extent, the amount of money in your hand.
Will determine the scale of trucking business you are going into.
So business plan in this case is necessary to determine what will cost you to start the business.
Your investment in haulage business will means a lot of money.
But you can always recouped your money.
If you take useful and responsible steps in starting you trucking business.
Please note, if you do not have enough capital for the business.
And you are opted to go for loan, first thing first.
You should take into consideration the interest rate.
Or whether you have collateral to secure the loan.
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Trucking and Haulage Business
3. Financing your haulage business:
If you have a clear and well explained business plan.
Financing your business will not be difficult because investors will be readily available to finance your business.
A financing option could be a situation.
Where you enter into an agreement with the owner of haulage equipment.
He will lease the equipment to you, while you have to pay him in the near future the agreed rental fee.
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There are legal requirement which allow you to start and run trucking and haulage business in Nigeria, you should have to give due consideration to the rules and regulations that defined the operation of this business. Your business has to be registered; you are equally have to make sure that you get the necessary permit and licenses for the business.
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Trucking and Haulage Business
5. Insurance cover:
A good number of businesses have business risk that should be effectively managed, and haulage business is not an exemption. Big risk is involved in starting and running trucking and haulage business, example, in the event of accident, theft incident, and sometimes insincere driver of yours may decide to divert your goods, and as a result landed your company in an untold indebtedness. It is in view of this risk that, it is advisable to obtain insurance cover for your trucking business.
6. Management tactics:
Effective management tactics of any business is as important as the start-up capital, because when proper management is not in place, start-up capital, which supposed to generate return on investment would be gone; if you are not experienced, employ someone who will best manage your business for high productivity.
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Drivers are the important staff in the haulage business; these professional truck drivers can help you grow your business, if you offer them good condition of service at employment, since they are the one to make your business or mar your investment. Other staff that you will be considered employed should be those in marketing and administration units.
The last I will love to mention in this article will be to know how to render quality services to your customers and to do this, you have to be able to know your customers and their individual needs. With all the steps explained above, you can successfully start your trucking business in Nigeria by carefully applying these steps.