The logistics business has several names. Others call it transportation, courier services or delivery business. All imply the same.
Logistics involves transferring things from the producer to consumer.
As technology advances, more entrepreneurs are investing in e-commerce. These entrepreneurs require reliable logistics services.
This article explains how to start a logistics business in Nigeria.
What Exactly is Logistics Business?
A logistics business plans, implements, and controls the movement and storage of commodities, services, or information between origin and consumption.
Is The Logistics Business Profitable?
Starting a business is about making money. Profitability in logistics depends on client acquisition, pricing, and delivery efficiency.
A good market penetration and client retention strategy may boost corporate profits.
List of Logistics Equipment
- Software accounting
- Bike, truck or bus
- Personal Computer
Easy Steps on How to Start a Logistics Business
Below are a few steps you should take in other to start a logistics business;
STEP ONE: Define Your Operating Mode
Decide on a delivery model. Do you want bikes, buses, or trucks? Interstate or intrastate delivery? Do you want to focus on one industry or sector? Do you want to be an agent, carrier, or contractor? You must answer these questions before starting out.
Defining your method of business can help you determine the startup money you require and help you focus.
You can start as an agency or contractor if you don’t have enough money to buy buses or bikes and create a typical logistics firm.
As an agent, you’ll act as a middleman between a logistics company and a client.
Every business you refer to the logistics firm will earn you a commission.
STEP TWO: Draft a Business Plan
A business plan outlines your company’s goals and how to attain them. After determining your “modus operandi,” write out step-by-step plans.
Business plans help you acquire capital.
STEP THREE: Register With Corporate Affairs Commission (CAC)
Nigeria’s CAC handles business registration. First, register your business with CAC. When you register your firm, customers trust it.
You can’t open a corporate account without your registration certificate. Start by searching for names on CAC’s portal. After your name is approved, register.
Procedures make registration difficult for many budding entrepreneurs. Hire a lawyer to aid with the registration.
You may provide all registration criteria by email, and your certificate will be mailed to you.
Other than CAC registration, you need government licenses and permissions. Make sure you have these so your bikes or buses aren’t harassed.
STEP FOUR: Acquire Capital
You need money to buy equipment and pay employees. Your capital needs depend on your scale.
The business plan will help you get loans and grants. An excellent business plan can attract investors to your business concept.
After receiving funds, buy equipment. In high-traffic states, you may wish to invest in motorcycles.
Make sure your vehicle doesn’t break any laws. Buying old automobiles or bikes helps reduce start-up costs
STEP FIVE: Get an Office
Online and offline logistics businesses exist. Some clients prefer to send deliveries in person. You need an office with a parking space for your cars and bikes.
Brand your workplace and cars to attract customers. The office must be large enough to fit your automobiles and bikes.
STEP SIX: Hire Logistics Staff
Drivers and riders are essential in logistics. Careful selection and training will assist.
Start as your own drive orrider to learn the routes and system.
Knowing the procedure helps. Knowing how things function helps you create successful strategies and interact with your drivers or riders.
Everyone you recruit must learn the company’s culture, conduct professionally, and be kind to clients. If you’re an agent or contractor, skip this step.
Drivers and personnel must be trained, retrained, and continually trained since their actions and inactions would affect your corporate success.
STEP SEVEN: Marketing Your Logistics Business
Marketing your business is essential. So promote offline and online marketing. The Internet makes company marketing easier.
STEP EIGHT: Setup a Website For Your Logistics Company
Logistics companies need websites. Your website will connect you with customers.
Anyone may visit your website to learn about your business and contact you immediately.
WordPress or Woocommerce are affordable website-building platforms.
Being aware of a business’s issues is the first step to overcoming them. Here are some of the logistics challenges:
Some clients don’t know what they want or alter their orders occasionally.
Some clients may not answer your calls or texts when you arrive, wasting your fuel and time.
Return purchases are another difficulty. Some clients may declare you delivered the wrong item and want a return.
If you’re passionate about logistics, you can start a business. Nothing in business is set in stone. Success requires effort, determination, and patience.