Starting a transportation business in Lagos isn’t a bad idea as Lagos is the commercial capital of Nigeria.
It is a very lucrative place to start a transport business with its population estimated at 14,368,000 as of 2020.
Venturing into the transportation business in Lagos is viable due to the nature of the market, demand exceeds supply.
Before I dive deep into how to start a transportation business in Lagos, I will like to brief you on the types of transportation business in Lagos
1. Motorcycling (Okada)
Motorcycling also known as Okada involves the use of motorcycles in the transportation of passengers within a town, village, or city.
This mode of transportation is limited to a maximum of 1 to 2 passengers.
This is because conveying two passengers at a goal is discouraged in some states.
The use of motorcycle as a means of transport in Lagos is limited because of the ban placed on them in towns, cities by the state government of Lagos.
Whether commercial luxury or minibus, this mode of transportation involves the conveying of people within towns and inter-states travel.
3. Car (taxi)
This is my most preferred choice amongst the mode of transportation listed.
It is more secured. Every taxi owner has to register their car with their state Government.
4. Tricycle (Keke Napep)
This is also a safe means of transportation as every tricycle owners register their tricycles with the Government.
This transportation is limited to five passengers.
5. Haulage transport service
This involves the use of different types of automobiles such as tanker, trailer, etc. for the conveying of different types of heavy goods for a charge.
6. Hire purchase
This is a new method adopted in the transportation system.
It is a system whereby someone buys commercial vehicles at a particular price and hire it out at a higher price.
The payment is done installmentally.
Before you attempt to venture into the transportation business, there are a few things you need to know:
1. Have a keen knowledge about the business
Have a keen knowledge about what drivers do, the lies they tell.
Drivers come up with different lies or excuses just to earn extra cash in their pockets.
Once you have a keen knowledge of what they are capable of, it will be very easy to tackle them.
2. Monitor your driver’s activities
Trust must be earned before confidence is given.
Monitor the trips and activities of your driver.
Ensure you know how much an average commercial driver makes daily, to know the daily income to expect.
How to start a transportation business in Lagos
1. Decide on the type of transportation you want to venture into
Venturing into Okada business in Lagos is totally out of point because there is a ban on them in towns and cities.
You are left with other transportation options like the tricycle, taxi, etc.
Another thing to consider is that the income generated from each transport system varies.
A bus generates a larger expenditure than a car or tricycle.
It also generates more income than the two.
In your choice of a transport system, be sure to take note of the cost of maintenance and income generated.
2. Decide what location and route is lucrative for your business
Not every location is suitable for your business.
There are some roads, cars and buses can’t tread due to the bad road of this location, its better you engage the use of a tricycle.
It won’t be wise to make this your route.
3. Purchase the type of transport business you want
After you have decided what transport system you are comfortable with, it’s now time to purchase one.
Get a trusted dealer that can ascertain whether or not a car is good, can handle stress and long journeys.
4. Register the vehicle
Make sure you get your car registered with the licensing authority in your area to avoid unnecessary harassment from law enforcement agents.
There are some associations you can’t avoid as a transport business owner.
Association such as NURTW, NARTO, etc.
5. Hire a professional driver
If you have other business you run, you can engage the expertise of a professional driver and negotiate with him.
Your negotiation can be returns per day/week and penalties involved in the failure to meet up.
6. Grow your business
I learned a great tip from a book and will love to share with you
It says ‘the tip to every successful business is to reinvest the income generated back to the business’
Once you start making profit, save enough, and use it to purchase more vehicles.
By applying this principle, your business will grow.
No one gets success on a platter of gold, it is earned.
Put in more effort, learn, unlearn, relearn your approach to business.
Challenges will come, consistency is key.
Want to start a transport business in Lagos, ensure you follow the tips provided above.