Haulage business in Nigeria has its up and downs. Although it’s very profitable, you need also consider the inherent risk in starting this business. Nigeria has a population of over 170 million people as we are the most populous black nation on earth. Our economy is still relatively untapped. Haulage is more about movement of light and heavy goods and materials from source to where they are needed usually the market centers.
Are you planning on how to begin and grow your haulage business? Then this article will really be of help.
How To Start A Haulage Business in Nigeria
There are several kinds of products that can be done with haulage equipment.
- Agricultural Goods are usually carried from one end of the country to another. This reminds me of seeing lots of trailer loads of rice and onions.
You will need to decide if its agricultural goods you want to carry.
- Finished Goods such as cars, building materials like roofing sheets, tiles, and carpets for homes could be moved in large quantities where they are later sold in larger markets.
Here are some critical things to consider about beginning a haulage business in Nigeria
- Know Your Customers.
Who are your potential clients in this business? Are they a company who have ordered 10,000 copies of books manufactured for them?
Or is it an individual who imports goods and needs a trailer or lorry to move them from the borders in Nigeria to designated ware houses?
Is it the owner of a petrol station who needs help in moving his petroleum product from the NNPC depot to his filling station? So it’s a wise thing to choose your primary clients.
You should make this decision early.
- Which Vehicle Will You Procure?
Find out what kind of vehicle you will need for the haulage business and their cost. A trailer mostly carries agricultural products through haulage. You will need a lorry if the amount of goods is not too much. Again for those involved in heavy goods, a tipper or cranes can be rented. Whereas a tanker will enable you lift petroleum products from the main depot to your station. Cranes are also needed in this business to life heavy machines.
- Find Out All You Can About the Financial Aspect of Haulage Business as a Nigerian.
So many people only think of businesses in terms of money to be made. This is not so good. A good business should also take into account the inherent risk the business carries. What if your clients delays payment by a week or month? How will this affect your business? What if one of the trucks broke down and needs urgent repair works which cost thousands?
So you need to look at it from every possible angle.
- Check Out Your Competitors
Just like anything that has a reward in it, there are already established haulage companies. Start from the state where you live and check the chamber of commerce office there to get the accurate list of haulage companies. There are direct competitors and indirect ones.
How Much Can You Make from Haulage Business in Nigeria?
As much as there is risk to be taken, there is also a profit potential. Actually , you will might make up to N300,000 or a few millions monthly depending on your area of focus and number of vehicles.
For instance, some haulage companies do rental services whereas others involve directly in lifting equipment and machines like generators and petroleum products. So the haulage business in Nigeria is very profitable if all other things go as planned.