How To Start A Dispatch (Logistics) Business In Nigeria

Since the corporate environment is dynamic and not static, it adapts to technological advancements. The majority of people on the planet utilize the internet. E-commerce enterprises have grown as a result of the rise in internet users, who increasingly choose to shop online because it is convenient and economical. Every company that wants to stay in business for the foreseeable future must have a strong internet presence; otherwise, they risk losing customers and going out of business.

The logistics business has become more popular due to the new pace of technology. It has become so lucrative that most businesses have it as central to their operations. Online trading platforms are knee-deep in the logistics business because their operations depend heavily on the handling, packaging, and delivery of materials to the homes of their subscribers.

To accomplish organizational goals, the logistics industry handles the hiring, distributing, maintaining, replacing, and inventorying of workers, commodities, and data. It entails delivering goods and services to customers from producers or suppliers. Storage, shipping, inventory, packing, material handling, disposal, and security are other business-related activities that may fall under the category of logistics.

E-commerce is progressively taking on more significance in the corporate world. The majority of Nigerians are using the internet more frequently than ever, and they are also engaging in more online transactions. Due to the fact that the success of the e-commerce industry depends on having a strong distribution network, there is a growing opportunity for growth in the delivery business in Nigeria. As a result, the logistics business is a profitable one. Before making an investment, however, one must, however, gain a thorough understanding of what is necessary to establish and operate a profitable logistics business in Nigeria.

Obtain Your Capital

One needs a sufficient amount of funds to launch a dispatch firm. You must take into consideration not only the cost of the delivery vans or cargo motorcycles but also the capital that would be garnered to be used for having an office space, paying the employees and bills for the first quarter after the official opening and other miscellaneous costs that may arise. Depending on how big you want to grow your business, you should buy at least one bike.

A good cargo bike can be bought for a price range between N350,000 and N500,000, depending on the model you wish to buy. Your logistical business might not survive on motorcycles alone. You might still need to purchase a delivery bus or van, especially if you want to move large cargoes. A motorcycle is less expensive and more practical for dispatch work than a delivery truck, especially in areas with heavy traffic because a bike can easily weave between it.

But, perhaps for future purposes, you would have to consider the option of a delivery van. Another critical aspect is to ensure that your bikes or vans are insured, not only by the third party but also by the first party (you must protect your employees and other valuables as well). You would also need a delivery box where all the products or packages will be kept, which would be attached to the bike. Ensure the box which you wish to get is sturdy, so as to avoid any circumstances of destruction to the cargo inside.

Draft Up A Business Plan/Strategy

Obtaining a corporate plan is one thing, but really drafting it is quite another. Possessing a business plan will help you advance up the corporate ladder. A business plan will help you better understand your competition and the most effective strategies for outperforming them. A business plan aids in not only carrying out an initiative but putting it into realization.

A business plan aids in determining how much capital you’ll require and where to find it; what to do with the capital amassed; how to carry out marketing to promote the business; the location of the office space; whether your operations will be intrastate or interstate; etc. With the aid of a business plan, you can make the opening of the dispatch business more feasible.

Secure Your Office Space

The dispatch industry operates both online and offline. The majority of transactions would take place online, but some clients would like to visit your office, so you’ll need to rent a location and keep it highly branded with your company name and logo. Additionally, the office should have ample room for your delivery vehicles or cargo bikes.

Hire a Dispatch Rider and Other Personnel

The following step is to employ a dispatch rider. You must ensure the rider whom you wish to acquire meets some specified requirements.

• He must possess a driver’s license.
• He must also be aware of traffic rules and regulations within the bounds of the state where you wish to start the business.
• He must have much-needed experience with driving. He must be knowledgeable of the routes and roads of the state where you are centred.
• He must possess good communication skills; he must have a good understanding of English or Pidgin and any ethnic language available to him.
• He must provide you with the necessary references either from his former place of work or clergyman before he starts the job.
• You may give him a phone to ensure he will be able to reach customers when he gets to the destination.

A dispatch rider cannot do all the work alone. All hands must be on deck. You want to ensure you hire other staff that take care of packaging, detailing, and assembling. Administrative employees are also essential for receiving and answering customer calls, inquiries, and feedback.

Register Your Company With The CAC

It’s crucial that you register your company with the Corporate Affairs Commission after creating your business strategy (CAC). In the eyes of the customer, this will give your firm structure and legitimacy. You have the option of registering your firm as a limited liability company or as a business name. Additionally, you should obtain all the required licenses for your dispatch firm.

Get Approved By The State Government Authority

Sufficient consent from the state government is required to use the specified location for dispatch operations. The Lagos State Transport Ministry is the appropriate authority in Lagos to grant permission. The Ministry will provide the required consent to allow you to start your operations with the issuance of a license. as proof of the approval. To obtain the license, a letter requesting one must be sent to the Lagos State Ministry of Transportation. Your van or bikes would need to be inspected by the Vehicle Inspection Organization (VIO) to make sure they meet the requirements for the dispatch business and are in good condition.

After receiving clearance from the Lagos State Ministry of Transportation and the VIO, a courier license must be obtained from NIPOST, the organization in charge of regulating courier services in Nigeria.

Set Up a Website or Mobile App

Having a website or mobile app increases your company’s visibility to clients. Because it is the platform on which you and your customers will interact the most, your website serves as a go-between for you and them. Your customers see the advertisement for your company on your website and get in touch with you to place an order. Customers should be able to easily visit your website, and it should be updated frequently. A mobile app is also another alternative that may help customers track their orders to see when they arrive at their destination.

Promote Your Company

Marketing is crucial to a company’s survival. A company that doesn’t market its products or services won’t last long. Marketing entails engaging in actions that increase the visibility of your company to your targeted audience. It is necessary that you create social media platforms such as Facebook, Instagram, and Twitter pages that showcase the work carried out by your company. You can also create flyers and business cards to give to prospective customers. This would not only increase your popularity in the diverse world of logistics but also help you maximize profit.

Conclusion

Although the dispatch industry is profitable, if the proper precautions are not taken to set up the required elements and implement the essential measures, one may easily run into losses. Dispatch services are also in high demand among businesses these days, and all one needs to do is seize the chance and make the most of it.

Frequently Asked Questions