Mar 06, 2021 Uncategorized

STARTING A DISPATCH BUSINESS IN NIGERIA WITH LESS THAN N400,000.

The Covid-19 crisis, has had both negative and positive impact on the world economy. Both on a larger scale or smaller scale. World economies dwindled, and lots of jobs were lost in hundreds and thousands. This is just to summary the negative the virus has in the world. Nevertheless, there has also been a positive impact on the area of E-commerce 

The COVID-19 crisis accelerated an expansion of e-commerce towards new firms, customers and types of products. It has provided customers with access to a significant variety of products from the convenience and safety of their homes, and has enabled firms to continue operation in spite of contact restrictions and other confinement measures.

The COVID-19 crisis has led people in many countries to significantly limit physical interactions. Self-imposed social distancing to avoid contagion, together with the strict confinement measures implemented in many countries, have put a large share of traditional brick-and-mortar retail virtually on hold, at least temporarily.

http://www.oecd.org/coronavirus/policy-responses/e-commerce-in-the-time-of-covid-19-3a2b78e8/

THE SURGE IN E-COMMERCE BUSINESS, LED TO RISE IN LOCAL COURIER OPPORTUNITIES.

E-commerce businesses are on the rise, and this has led to increased opportunities in local logistics companies. in the last 16 months, most companies have been operating majorly from home. including the big corporate establishments. Medium and small entrepreneurs are not left out. In fact if you are not presently selling online, you are missing out.

All these products and services been offered online, need to get to the hand of the end users, through local courier companies. When we talk about logistics companies, we refer to different types of services been offered, and at different levels.

HOW TO START A DISPATCH BUSINESS.

Logistics business as we always call it in Nigeria refers majorly to the different dispatch riders, that pick and drop goods and products. it simply refers to getting products and services from suppliers to end users. We shall discuss how to start a dispatch rider business in Nigeria with less than N400,000.

The opportunities that lie within this sector, can not be over emphasized. Although the rate at which lots of logistics companies came on board, was at an alarming rate. Despite this, there are still more rooms for new companies to come on board. If you are looking for another way to invest your money, and begin to make daily and weekly profit, dispatch company is a good way.

WHAT DO YOU NEED?

  • A BUSINESS NAME
  • A BUSINESS PLAN
  • CARGO BIKE
  • BASIC MOBILE PHONE
  • SPACE
  • STATIONERY
  • A RIDER.

BUSINESS NAME

Get a business name that suits your desire, apart from getting your business name, ensure you register the name. You would be wondering why do you want to register a business yo are just starting afresh. I will tell you that, the business you are about to invest in, though you are starting small, it will definitely grow and your profit will surge. Do not wait till you have started making your millions before you register, because by the time you are ready, the business name you have chosen might have been registered by another one.

As against the background of some wrong information, most people think registration of business name is on the high side, with between 10,000-20,000 you can get your business name registered. https://www.cac.gov.ng/schedule-of-fees/

GET A BUSINESS PLAN

A business plan is a written description of your business’s future, a document that tells what you plan to do and how you plan to do it. If you jot down a paragraph on the back of an envelope describing your business strategy, you’ve written a plan, or at least the germ of one.

You might be thinking is only people that are seeking financial assistance that need business plan. In order to present the projection and activities of their business to a potential lender. Be it institution or individual. Even if you have your own money to fund the business, you need to write your business plan because it will guide your projection in running the business.

To know how to run your business plan, visit https://www.sba.gov/business-guide/plan-your-business/write-your-business-plan

BUYING A CARGO BIKE

The cargo bike is the equipment that takes much of your capital. with N310,000, you can get a cargo bike with engine capacity of 200cc. The cargo bike comes with cabin, so you do not need to buy cabin apart. You can visit Yaba or visit Jiji to see the available cargo bike.

A new cargo bike is advised, because the fuel usage will be on a low side, since the engine will still be working at maximum capacity. You will need to register the bike with VIO , with less than N10,000, you get that fixed.

GET A BASIC PHONE

What you need is a basic phone for the rider to communicate with both pick up clients and receivers. Mobile phones that have longer battery life, durable and can endure harsh conditions. With N6,500, yo can get a mobile phone with these quality. We have brands like Nokia, and other durable phones.

SPACE

You will need a space for operations. And because you are just starting, you can start by creating a little space in your apartment. This is important because you have to be organized even if you are operating your business from home. You will need a dedicated corner in your apartment , where you could put a table and a chair in order to transact business. In addition, you will need the space to keep some of your deliveries that will be in transit in case.

STATIONERY

You will need writing materials to keep record. A tally book and some pens will fulfill that purpose. with less than N2,000 you can purchase all these. And i need to emphasize here, that accurate record keeping is important to this business.

RIDER

The most important part of the business is your rider. Your rider must be familiar with all routes around the city, he must know how to use google map, and mostly must have a very good attitude. If you are employing a rider for a start, a commission based agreement would be advised. And when the business starts growing, you can introduce monthly salary. A rider salary comes between N30,000 and N50,000.

YOU NEED SOCIAL MEDIA

Since most of the clients you will need are either online sellers or buyers. You will have create a huge online presence for your business. You can use your existing personal social media accounts to advertise and market your new business. Create a business account on Instagram, Facebook, and have a whatsApp business profile. You can check my other posts and downloadable videos on how to use these social media accounts for your benefit.

Ensure to follow most e-commerce business, and once a while introduce your business through sending direct message or commenting on their posts. Check what other competitors are doing and improve on it. Create your own USP, that is Unique selling point. Check the link for more information. https://ehismadu.org/unique-selling-point-proposition-usp/

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