How to Start Small
From the above examples of successful transport companies in Nigeria, you know there is big money in transport business. But how can someone with little means still enter transport business and make it? You don’t have to go for a big coaches such as Marcopolo Paradiso 1800 DD that cost nearly N150,000,000. A Tokumbo Toyota bus or smaller sedan is just enough for you to start.
1. Buy a Tokumbo Bus – A fine tokumbo bus with AC cost about 1.8 million – N2.5 million. That’s the type you’d need if you intend to run far distance Lagos – East. Be sure to get a very clean one as passengers judge the condition of your vehicle and the quality of your service base on the look of your vehicle.
2. Register With The Unions – Except you wants to operate as a registered limited liability company, you may not be allowed to operate properly as individual transporter if you did not register with the transport unions.
3. Get a Qualified Driver – I recommend that you drive it yourself, that is the best way to start. Driving your vehicle yourself when you have only one ensures the highest return on investment. But if you can drive it yourself, get a very good and experience driver who understands the road to drive it while you monitor him.
Minimum transport fare from Lagos to East is N2,500 it can be as high as N5,000 sometimes. A 14 Seater bus with full load to East would be making N2,500 x 14 = N35,000. Put out N15,000 for fuel and other expenses, you’d be left with N20,000 daily.
On a smooth month that nothing hinders your services, you would be making the minimum profit of N20,000 x 25 = N500,000. With this calculation you find out that it will take you just five months to get another bus.