Step-By-Step On How To Create And Grow A Successful Logistics Business In Nigeria

The logistics business is a very lucrative one if you apply the right setup and growth strategies. Some call it a delivery business, while others classify it as a transportation business. The logistics business is about moving goods from one destination to another, from the manufacturer to the final consumer.

In an age of e-commerce, the logistics business is bound to thrive. As Nigerians become more tech-savvy, building a logistics business is far-reaching financial benefits. Logistics have now become a common medium of transport people, goods and services from one location to another. Logistics work perfectly in an environment where e-commerce is commonly used. However, setting up a logistics business is not a walk in the park. The primary purpose of the article is to discuss the goods-conveying type of logistics, and how to start and grow it.

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What Is Logistics Business About?

A logistics business is involved in planning, implementing, and controlling the movement and storage of goods, services, or information within a supply chain and between the points of origin and consumption. 

Logistics may also pertain to warehousing, transportation, merchandise, packaging, material handling, disposal and security within the business sector.

Equipment Needed For Logistics Business

• Bus/Truck/Cargo Bike

• Space

• Computer System

• Mobile Phone

• Accounting and other Software

• Dispatch Box

• Stationery

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• Define Your Mode Of Operation

Your model of operation is dependent on your choice. Remember, logistics is all about delivery service. Therefore, you must ask yourself what type of medium do you prefer? 

• Do you want to operate with bikes, buses, or trucks? 

• Will you be involved with interstate or intrastate delivery?

•  Are you going to focus on a particular industry or sector? 

• Do you want to begin as an agent, transporter or contractor?

Answering these questions will direct and form your business operation model. 

• Draft A Business Plan

A business plan is a detailed document stating the goals and objectives of your business and how you plan to accomplish them. After specifying your ‘modus operand, it is safe and business-wise to put down the step by step plans in writing. Further, formulating a business plan also enables you access to funding opportunities. The information that should be in your business plan are:

• An overview of your logistics business
• Executive summary

• General company description

• SWOT analysis

• Market Research

• Your Strategy

• The Team

• A marketing plan

• An operational plan

• Financial projection

• An appendix

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• Register Your Business With CAC

Corporate Affairs Commission (CAC) is the approved organisation for business registration in Nigeria. Accordingly, the first step towards ensuring your business is legitimate in Nigeria is to register it with CAC. Clients trust and see your business as credible when you register your business.

The first step is to either register as a business name or as a limited liability company (LLC). The business name is inexpensive compared to the limited liability company; your choice depends on the ownership structure and funding ability. Furthermore, it is important to get your registration certificate because you cannot open a corporate account without it. Visit CAC’s portal to run a name availability search to get started. Once your name gets approved, you can then begin the registration process.

• Acquire Funding And Capital

Building a logistics business requires huge capital. According to studies, with as low as 800,000 you can start a small logistics business. However, you need funding to run and pay workers’ salaries, if you have any. How do you go about funding? First, it is wise to self-fund your business through personal savings and donations from family and friends. As soon as the business kicks off and begin to yield revenues, you can reach out to venture capitalists or private and public grant organisations for aid. All you need is your business plan, tax documents, revenue documents and other requirements.

• Set Up A Website For Your Logistics Business

Setting up a custom-made website for your logistics business is very pivotal. A good website will serve as an intermediary between you and your clients. Your website should contain how your logistics runs its operation. It should include an overview of the business, and appropriate contacts where customers can reach you.

• Get An Office Space

Despite being a business that can operate online fully, having an offline office is very important to the operation of your business. There could be cases where clients would love to visit your physical location to send their deliveries. Also, you need an office space where you can also park your vehicles and bikes. Further, you need to brand your physical location as well as your vehicles to create awareness and attract your target market. The office space must be spacious and the enclosure large enough to accommodate your cars and bikes.

• Hire The Right Staff

Your staff will include riders and drivers as well as accountants, clerks, supervisors, social media managers, and so on. Ensure that staff members meet the needed qualifications and requirements needed to grow your company. Also, ensure that there is in place the right company culture that will enhance harmony in the workplace.

Featured Image Source: Entrepreneur

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