How to Start Bike Logistics Business in Nigeria

In this article, you will learn how to start a bike logistics business in Nigeria, know whether the business is profitable or not, what capital is needed to start the business, the bike logistics business plan also known as the dispatch rider business plan, and more.

So read this article to the end. Many people do not know that the logistics business is a lucrative business and that the business is very similar to the transport business. With a logistics business, you can make money daily by transporting goods or products from one place to another for business owners and people.

This is why the logistics business can be regarded as a daily income business and a service business in Nigeria.

What is a Logistics Business?

A logistics business is simply the business of transporting goods and products from sellers to buyers. This movement can be through any means of transportation air, water, and road, or even by train. Logistics business plays a vital role in business. Especially with the evolution of the e-commerce business in both developed countries and underdeveloped countries.

Is Logistics Business Profitable?

The next question in your mind could be how profitable is the logistics business. How can you make good profits from a logistics business in Nigeria? Well, there are many reasons why the logistics business is very lucrative in Nigeria, especially the bike logistics business.

The first reason why so many businesses and individuals use a bike logistics business is because of the traffic situation in the country. The second reason why the business is lucrative is that bikes are fast and they are able to navigate all corners and bad roads easily. 

This forfeits delay in deliveries. We all know how Nigerian roads can be, however, compared to cars and buses bikes especially bikes with the specification of 200c can move easily on our roads.

How to Start a Bike Logistics Business in Nigeria

Here are steps on how to start a bike logistics business in Nigeria.

1. Write your Business Plan

It is very important to know how much it costs to start a logistics company in Nigeria. This is why you need to write a bike logistics business plan. For example, you need to know how much it will cost you to buy a dispatch rider bike in Nigeria. You also need to know how many of these dispatch bikes you will need to start your logistics business in Nigeria.

The challenges of a logistics business in Nigeria will also be in your bike logistics business plan as this will inform you of the challenges the business has and to overcome them. If you cannot write your business plan, you can get a professional writer to write it for you but this will be at a cost from #5,000 – #10,000.

2. Get the Required Capital

Capital is very important when it comes to starting a business like a bike logistics business in Nigeria. There are different suggestions as to how much it cost to start this business in Nigeria. But the capital you really need to start a bike logistics business in Nigeria depends on many factors surrounding how you want to start.

It depends on how many dispatch bikes you need to start, how many logistics staff you want to employ, the office space you want to rent, and more. However, with a capital of at least #2M, you can start a profitable bike logistics business in Nigeria.

This capital will take care of all the most important things you need to buy and the documents you need to process before you can start. If you cannot come up with capital you should check our article on easy ways you can raise capital for your business.

3. Register your Business Name

It is very important you register your logistics business if you are really serious about the business. There are different registration and documents you need to possess. You need to get all documents for your dispatch bikes, especially roadworthiness.

You also need to register your business name under the Corporate Affairs Commission (CAC). Tax clearance in a business like this is also very important. You need to file for taxation. All these registrations can be done within a period of 1 – 2 months before the bike logistics business can commence.

Read our guide on how to register your business name in Nigeria to know the full process involved in registering your business name

4. Buy Dispatch Bikes

Dispatch bikes are the lifelines of all bike logistics businesses in Nigeria. Without it, you cannot run the business. The type of dispatch bikes you buy also plays a major role in how successful your bike logistics business would be. The first thing you should watch out for when it comes to buying your dispatch bikes are the specifications.

Any dispatch bike that will be used for a bike logistics business must be a 200c bike. Asides from this, you need to also watch out for the make (brand) of the bikes. Some bike brands perform better than some bike brands. As for the cost of a dispatch bike.

Depending on the brand and dollar exchange rate one dispatch bike can range from #400,000 – #500,000 in price.

5. Get an Office for the Company

Renting a space or shop is also important for your logistics company. You need a physical location aside from an online presence. You also need this place for the comfort of your staff. As a logistics company, you can rent a shop anywhere. However, it is best if your shop is located on the main road for free advertisement and recognition.

How much you rent a shop or office space for your logistics company depends on many things. The first thing is the kind of area you want to rent an office space. This could be a highbrow area or a middle-income area. The second thing is how much you can afford for rent.

Most times, how much you have usually takes the bulk of your decision when deciding the area to rent an office.

6. Start Delivering Parcels

After registering your logistics company and you have bought your dispatch bikes you will need to employ dispatchers. But before you employ dispatchers you need to interview them and check out their riding skills. How much you pay your dispatchers depends on how much you can afford as a salary.

But on average in Nigeria, dispatchers are paid between #30,000 – #50,000 monthly. When you have your dispatchers ready you can now start transporting goods or products for customers. To get your first patronage you can tell your family and friends about your business so that they can patronize you.

7. Profits in Bike Logistics Business

There are different ways you can increase profits in your bike logistics business in Nigeria. The first step is to increase your customer base. The second step is to try to retain all or at least 80% of your old customers. This is because it is way easier to retain old customers than to get new customers.

The third step is to manage your bike routes properly. If it is possible make sure you use a bike to cover each major area. This will help you manage your expenses well.

Challenges in Logistics Business

There are challenges in the e-hailing business just like any other business but many do not actually know. The first challenge is the bad roads. Despite the fact that bikes can move well on bad roads, the effects of this show on many dispatch bikes because they do not last long as they should.

Another challenge is the traffic situation on Nigerian roads especially roads in the city.

Conclusion

The bike logistics business is a very lucrative business in Nigeria. You just need to take your time to understand the business and know how to charge customers for deliveries based on inflation, traffic, and other hidden expenses.

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