Knowing how to start a logistics company in Nigeria could prove to be invaluable at a time as now. You create jobs, revenue and also make a profit for yourself which helps the economy all around. A logistics firm is a company that stores and delivers the products of other businesses. They may specialize in the import and export of goods in and out of the country or may concentrate on ground transportation within the area.
How To Start A Logistics Company in Nigeria
1. Develop a business plan
Writing out your exact plan will help you uncover areas of your business that you may have overlooked. It will also help you flesh out the details of how you would secure funding so solve your early cash flow needs. Are you going to self-finance everything you need to get started? It can be done, but growth will likely be slower than if you take out a business loan from the bank.
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2. Get Sufficient Capital
Capital is required to set up a logistics business so as to procure manpower and equipment. The capital can be used to purchase or build a cargo bike, mobile phone(s) for communication, stationery and other necessary items needed for documentation.
Motorbikes are much better especially in an environment like Lagos that is characterized by heavy traffic. After getting this you should consider hiring a rider.
3. Obtain The Proper Licenses
Like other businesses, your company will need to be properly licensed in order to operate legally. Every state sets their own requirements when it comes to licensing. In most cases, you will need to obtain a business license. You will also most likely need to file tax forms with your state.
You can find information about the licensing requirements in your area by checking out the website of the Department of Licensing for your state. It can also be extremely beneficial to hire a lawyer to help you get your business set up correctly from the start.
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4. Ensure Your Business
Business insurance is particularly important for logistics companies since they usually carry a lot of risks. For instance, imagine that you are transporting expensive items for one of your clients and your truck gets in an accident. It is vital to make sure that any products that are damaged in the accident are covered by your insurance plan. You will need to work closely with an insurance agent to come up with a plan for your business that covers all of the potential risks that you may face. Although these types of insurance plans usually are quite costly, they are definitely a good investment. The last thing that you want is for one mishap to bankrupt your business.
5. Choose A Physical Location For Your Business
Setting up an office where you can meet with clients will help present the right image for your business. Additionally, you will most likely need to obtain space for warehousing products or for other aspects of your business. You may want to choose rental properties that are located close to shipping hubs.