Today, we will discuss the step-by-step ways of starting a transportation business that will grow into a profitable one with a steady income.
The transportation business plays a big role in the economic growth of any nation. Also, one that can be sustained for years if the rules of running the business are adhered to.
So if you intend to invest in this type of business, then you are about to get everything you need to know about starting this business.
So let’s get started.
Steps to Starting Transportation Business
1. Feasibility Study
The first thing to do before starting any business at all is to carry out a feasibility study. This is to enable you to have in-depth knowledge about the business.
To know more about the market opportunities, pains, and struggles of your prospective customers, and the type of transportation business to start.
It’s at this stage, you have an idea of the amount of money needed to do the following:
- Business registration
- Purchasing and maintenance of means of transportation (e.g. buses, cars)
- Workforce salaries
- Security of the properties
- Promotion of the business
At least you need funds to provide excellent services during the beginning of the business.
Also, this feasibility study will allow you to know the kind of transportation you can be able to provide such as:
- Taxi service
- Commercial business services
- Car rentals
- Courier services
- Haulage services: this has to do with transporting goods
- Airline business
- Maritime transportation
2. Get a Business Plan
A business plan is a document that has detailed information about the business. It has all the answers to your questions regarding your business objectives, visions, plans, business structure, pricing, competitors, and strategies for growing the business.
3. Register the Business
First, get a name that will easily describe the services you plan to offer. Second, head over to the Corporate Affairs Commission (CAC) site and conduct a name search. This is to know if the name has been taken or not.
After the name search, proceed with your registration. Registering your business will build confidence and trust and you have access to grants, contracts, and loans.
4. Register with Appropriate Agencies
Before you launch into the market, register with appropriate agencies to get the necessary licenses and permits.
Having these licenses will enable you to operate your business without any disturbance from any group.
So if you provide road transportation services, get your buses or cars’ plate numbers registered with the Federal Road Safety Commission (FRSC). Also, register with the National Union of Road Transport Workers (NURTW).
You will need a certificate that certifies that your buses or cars are good and also obtain other important documents.
If your business is to provide air-related services, register the business with:
- Nigerian Civil Aviation Authority (NCAA)
- International Airline Transport Association (IATA)
If your business falls under the maritime category, then register with:
- Nigerian Maritime Administration and Safety Agency (NIMASA)
5. Purchase Means of Transportation
The means of transportation depends on the category your business falls under:
- And road
Under the road category, you will either buy any of the following:
- Buses, etc.
Under the maritime category:
And under the air category:
Your capital determines how many of them you will buy.
6. Get Insurance Coverage
Operating this kind of business without any insurance coverage is not ideal. Your business has to be insured by an insurance company.
This is a way of securing your business against any kind of occurrence that may happen. So allow an insurance company to carry this burden for you because even the likes of Dangote have an insurance company carrying the burden for his large company.
You have to speak with your company lawyer to find an insurance company that will offer the best package for your business.
7. Workforce (Staff)
There’s no way you will be able to run this kind of business alone. So you need a team of various personnel that will help grow the business.
This includes managers, accountants, marketers, security personnel, drivers, pilots, helmsman, cleaners, customers care representatives, etc.
8. Promotion and Marketing
And how do you do that?
Through promotion and marketing.
First, get your business online by creating a website with details of the services you provide. Make sure your site is user-friendly so that people can easily navigate the site.
Also, the site can serve as an e-commerce platform where people reserve and book tickets and make payments as well.
To appear within local SEO, register the business with Google My Business and optimize the site with keywords related to your business.
Second, leverage the power of social media to grow the business by posting educational, inspirational, and promotional content in the form of articles, images, and videos.
Third, through branded company shirts and caps for your staff. This is a means of creating offline awareness of the business.
Finally, you can run both online and offline ads to increase the level of awareness and visibility.
Now, I’d like to hear your thoughts in the comment section.