Contents
Why transport?
Why do you want to go into the business of transportation? Anyone could have transportation business ideas and make money without ever reading this post.
I doubt I had any influence on the many bus drivers hustling for years in heavy traffic.
Before I start listing ideas on transportation businesses that are out there, I need to be certain that I’m with the right audience.
So I ask again, why are you here, reading about transportation business Ideas?
You see, I wrote this article for three categories of people, and I need to know you’re on board with me and have answered the question honestly.
Now that we’ve sorted that, I’m assured you’re just the right person I need to speak with today.
Our goal isn’t just to talk about the different transport models but to help you launch a business in transport that could and would thrive.
To help you beat the statistics that most business startups would fail within the first two years.
Know Your Target
Now that you’ve answered the why, let’s talk about whom?
The first step to building a transport service that can last is by identifying your target market. The audience you intend to serve has specific needs; in identifying them, you’d be uncovering your actual audience.
What transport needs have you noticed in your area?
Insufficient rides at specific times and days?
High fare?
Unserved routes?
I remember my days in NYSC; I was not too fond of the buses when I commute. It was frustrating. You could slit your arm while getting off the bus. For me, it was a problem, and I imagine a lot of young people detested these buses.
Where ever was it written that public transports should look like we begged to be hauled to our destinations. I wished I could do something about it.
Start with one bus, insist on maintenance, then grow from there. For me, it was a wish, businesses, but I’m glad we got to talk today. Perhaps, you’re the solution I hoped for back then while I commuted on that monstrous bus.
Market Survey
Market research is very important. No one sets to build a house without first counting its cost.
Like every other business, there are local laws and taxes for transporters. Find out the requirements in your area.
One mistake people make when starting a business is poor financial management. The purpose of this survey is so you can estimate what it would cost to get the company running. No profit made at the beginning of a business should count as profit. What do I mean? Let’s say you pay daily and quarterly tax and dues and spend a specified amount on fuel.
Remember that some days may bring a windfall, and some days might be slow, save the profit from windfalls to sustain you on the quiet days.
It’s about planning.
At this stage, you can determine how long you can work your vehicle before the business can stand.
Remember, the goal is to create a business model, not earn a few coins for a fast meal.
Stay focussed.
Deciding on a Transport Model
You might own a car and may have considered running a few trips for a start, but the fact that you own a car doesn’t mean that’s the best model of business for your environment.
The two categories in transportation are People and goods. Before deciding on the type of vehicle for your business, you have to know the best transport category for your business.
Remember, the goal of any business should be to provide a specific service.
Always think from the standpoint of service rather than from the point of a product.
In other words, you may need to trade your car for a van if that’s the service your target audience demand.
Courier services
Courier services are needed by B2B and B2C business categories. With many businesses opting for tech evolutions within their workspace, there’s an increase in demand for courier services. The need for courier services is endless.
Think food delivery. As more stores encourage customers to shop online, study the flow of service. Outline the flaws, proffer solutions.
Think Open markets. One of the hassles of the open market is in moving goods from market to home. Some market vendors who sell heavy merchandise like doors, tables, and chairs may offer transport services, but most times, you want to run errands in the open market and still catch up with other activities.
Think wholesale delivery. Think Intercity or state.
You can run a targeted survey using Facebook to find out the kinds of transport solutions people need. This helps you narrow down the specifics of your business.
Imagine how many people in your environment shop at the big market at the end of every month. Imagine how many women look beat up after shopping for a variety of family needs. Consider offering to move bulk items home within a specified neighbourhood (traffic reasons).
Such service would afford these women time to get home with as little as the grocery bag to prepare the days meal and save them the energy of hauling bags of rice and back to school items that aren’t needed for that day’s dinner.
Requirements for Courier service Business
After pinpointing the exact kinds of goods you’d best transport, you can decide on the mode of transportation.
Your vehicle is key to your business. In building a transport business that would last, I’ll advise you to pick the less crowded business model.
For example, the bike ban in Lagos led to a flourish of bike hailing Apps like GoKada. Not long after, the government also banned all forms of transport bikes. Even private bike owners were harassed by the police.
A moral to the story is to observe market trends and whether they will likely become a nuisance and a target for government policy.
Suppose your desire to start a business in transportation was born from a desire to make extra profit from your vehicle. You might consider trading it to buy a car best suited for courier services.
EXAMPLE:
MiniVans
Trucks
Courier bikes
Transporting People
The only time the transportation business really took a hit was during the pandemic, when everyone was locked away from the streets. The local andd international market was greatly impacted.
The pandemic proved that it’s pretty hard to keep humans confined. As if we didn’t know that already.
The bottom line is, you’d always find a need in this area.
You could take advantage of companies such as Bolt and Uber, or you could well off start your own company.
GIGM provides leading innovations in terms of intrastate transport in Nigeria. However, Nigeria offers a large market to anyone willing to work and bring in innovation.
Other Business Ideas on Transportation
Car rentals
Consider business models such as Uhaul, where customers can rent moving vans or hire a professional team to help them move.
There are a few car rental companies in Nigeria. None that I know of is a household brand. You could study this list, observe the existing brands’ business models, and consider rebranding yours to become the first household name in Car rentals.
Driving School
Many driving schools come across as unprofessional. The vehicles are an eyesore. When Uber was introduced to Lagos, the Yellow cab drivers were agitated as the market flooded with customers who crave better services. Imagine what would happen if the driving schools had someone giving them a run for their money. It could be you.
Closing Words
I’ve yearned to share these transportation business ideas with someone and I hope one thriving business is born from this post. If you’re new to the business of transportation, I recommend you read this article on closing impossible deals.
