Road transport is one of the triggers of economic development in any economy. Only a person living in the Stone Age will downplay the indispensability of road transport. Whether you are living in the village, town, or city, you will agree with me that you can never function effectively if you don’t travel from place to place to get some things done.
Whether you are a student, an applicant, employer, employee, or a business person, you will travel by road from time to time. For many people, travelling by road is almost on daily basis, and majority of these people do not have cars of their own. They have no choice than board commercial vehicles.
For a very long time to come, transport business will remain indispensable.
The business has never and can never be saturated. Some businesses that were “hot cakes” years ago are no longer as lucrative as it was. Examples of such businesses are recharge card printing and selling and sale of SIM card.
But with transport business, rest assured that it can never be saturated. Road transport business grows with the population. As human population increases, so the need for transport expands. Hence, more vehicles (especially commercial vehicles) are needed to facilitate commercial activities.
Categorically speaking, the numbers of vehicles on our roads today are not enough to tackle the transportation problems of the people. In your own locality, the same situation applies. There is no number of vehicles you put on the road for commercial purposes that will be enough to meet the need of the people presently.
For any would-be entrepreneur looking for a lucrative business he can invest in and recoup his capital within a short period of time, transport business may be the right business.
Year ago, my Economics lecturer once told us in the class that the reason many investors in the West African sub region are taking to transportation business in lieu of manufacturing business is that Return on Investment is quicker compared to manufacturing business which takes longer period.
Do you know that even our governments (Local Government Authorities, States Governments, the FCT, and the Federal Government) cannot let go of transport business. They are investing heavily in the business and if they tell you how much they are generating monthly, you would be astonished.
You too can avail yourself of this great opportunity in transport. You start making money the very day you put your vehicle on the road.
Are you looking for money to execute your building project? Transport business is a business you can invest in and generate enough money to buy or build a house of your own.
Capital
“Ah”, but you may ask, “The price of vehicles is very high. I don’t have the money to go into this business. How do I get the money to buy just one?”
You are right. Vehicles are expensive and it is not easy for an average Nigerian to raise the amount needed to buy a vehicle. It is good to reason the way you reason. But it is not proper to quickly conclude that because of the high price of vehicles, transport business is not for you.
At Housing for All, we always maintain that money is not the problem, but idea, because it is idea that generates the money we need for any project we wish to embark upon, including money to start transport business.
So whenever you try to worry about the problem of money to start a business or build your dream house, think also of ways you can solve the problem of money.
Now, let us take a quick rundown of how you can go about getting the enough money to execute the project you wish to accomplish.
Now:
1) Supposing you are jobless or a low-income earner and you have the desire to float your transport business, how do you go about raising the capital? The first thing to note is that in any business you wish to embark upon, you can always start small. Step-by-step makes a long journey.
So, to get into the motor vehicle transport business, your task is to start small by working hard to earn money to buy a motorcycle, which you will use as Okada (commercial transport) to generate the money for buying the vehicle for your transport. Motorcycle costs #90, 000 - #120, 000. This amount may still not be easily obtainable. In that case, what you should be targeting is half of the amount, that is, between #45, 000 and #60, 000. So sit down now and think of legitimate businesses you can do to raise half of the price of motorcycle.
There are businesses you can start with little or no capital and generate big money. Browse through this blog, Housing for All to discover such businesses. You can also visit our other blog, www.enemaku.blogspot.com to find money making businesses you can do with little or no capital.
Now, if you have raised this money, the next step to take is to do any of the following:
i. Go for hire purchase of the motorcycle, using the money as down payment;
ii. Apply for loan from any of the micro finance bank in your locality;
iii. Go to a reliable motorcycle mechanic and ask them to help you find sellers of fairly used (not second-hand) motorcycle. With the motorcycle, using it for commercial transport, you can generate enough money to buy another motorcycle within six months. Yes, it is possible if the person riding it for you is honest and delivers the agreed income regularly.
Once you are able to acquire two or more motorcycles, these motorcycles can generate the money you can use to buy a car, which you can use as taxi. The car, in turn, can generate enough money which you can use to buy another car or a mini bus, and on and on.
2) If you are earning considerable amount of salary and you can save at least #10, 000 every month, within 12 months, you would save #120, 000. That amount is enough to buy more motorcycles. These motorcycles will be used to generate money to buy a car or a mini bus. Look for honest and serious boys to handle the motorcycles.
3) On the other hand, if you can save more money and amass anything from #400, 000, it is enough for you to opt for hire purchase of a car or mini bus.
Please, don’t make the mistake of waiting until you get the complete money for buying a vehicle before doing so. Most transporters in the country buy their vehicles on hire purchase. They don’t have problem of paying their instalments because the lucrative nature of the business allow them to pay up their balance easily.
Profitability
You need to find out how much drivers are delivering to vehicle owners daily in your locality. Here in the FCT, drivers of Toyota Hiace (mini bus), deliver #5, 000 daily to vehicle owners. But in small towns, the amount may not be up to that. Nevertheless, the profitability in transport business is very high.
Now, supposing you buy a fairly used (not second-hand) Toyota Hiace (14-seater mini bus) for #1, 000, 000 million, how many years would it take you to recoup your money? If your driver is delivering #5, 000 to you daily, then in about 7 months you would make #1, 050, 000 million. This is not even up to one year.
Now, supposing you start your transport business with a motorcycle which you bought for #100, 000, how many years would it takes you to recoup your money?
Well, if your rider is delivering #1, 000 daily, in 100 days (3 months and 10 days), you would make #100, 000. So, in less than one year, you can earn enough to buy another motorcycle.
But if your rider is delivering the sum of #500 to you daily, in 7 months’ time, you would make #105, 000.
Conclusively, one can say that transport business is lucrative enough to earn you enough money for your building project.
NOTE: Dear reader, to enable you take off on a sound footing, we are presently researching and compiling a comprehensive and step-by-step manual (eBook) that will guide you on how to float and successfully manage your transport business and raise money for your building project. Please watch out for this manual.
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