8 Steps To Starting A Logistics Business In Nigeria


There has been a huge demand for logistics and delivery businesses in Nigeria owing to the rise of small businesses and e-commerce.

In fact, the bane of most e-commerce stores is logistics as, without it, they can’t survive.

Logistics is the movement of goods from one place to another. It involves getting products and services from a supplier or manufacturer to a consumer.

It is a profitable business which if well researched produces tons of turnover.

If you are looking to start a logistics business, here are 8 steps to follow.

1.Develop A Business Plan

As with all businesses, having a business plan is the very essential and the first step. A business plan is a comprehensive document stating in detail the goals and objectives of your business and how you intend to achieve them.

In creating the business plan for your logistics company, you will have to note the following:

  • Company name
  • Mission/vision statement
  • Business strategy
  • SWOT analysis
  • Business terrain/environment and how it affects your business
  • Manpower/employees
  • Financial plan, including your charges.
  • Competition and what will make you stand out.
  • Legal 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 to solve your early cash flow needs.

2.Register Your Business

You’ll need to register your business with the necessary bodies in Nigeria. The business should be registered with the Corporate Affairs Commission (CAC). You can register as a business name or a limited liability company.  You can visit the CAC website for business registration. You’ll also need to find out what kind of licenses and permits you need and obtain them.

3. Get Capital And Funding

Once you have registered your business, you need sufficient capital so as to acquire equipment and manpower.

You can start a logistics business with as low as N300,000.


Also, you can get an investor or venture capitalist who is interested in your business idea with a good business plan. You can also raise your capital by getting loans from any commercial bank.

4. Acquire The Necessary Equipment

Once your capital has been acquired then you’ll need to purchase the necessary equipment in order for you to start your logistics business.

  1. Bus/Truck/Cargo Bike
  2. Space
  3. Laptop
  4. Mobile Phone
  5. Accounting and other Software
  6. Dispatch Box
  7. Stationery

5. Set Up A Website

Setting up a website for your logistics company will help with your branding and also help in acquiring customers.

You can also create a page on the website that has your contact details and where customers can place their delivery orders and make complaints. A website also helps with publicity because customers can be encouraged to drop reviews.

6.Get An Office Space

The logistics business is both an online and offline business. Some customers will prefer to visit your office to send their deliveries so you need to get an office space where you can also park your vehicles and bikes.

Also, brand your office and vehicles to create awareness and attract your target market. The office space must be spacious and the compound large enough to accommodate your vehicles and bikes.

7. Hire Staff

Starting a logistic business, you need workers to be assigned to different positions.

  • A driver/motorcycle rider: You can hire as many as possible depending on your budget
  • A computer/telephone operator. He/she takes orders and keeps in touch with customers.
  • A store manager. He/she ensures goods to be ferried are kept in good condition to avoid damage.

It is absolutely necessary to train your staff on appropriate etiquette and culture towards your customers. They represent you and the company.

8.Marketing

With the advent of technology, marketing your business just got easier.

Several other methods of business publicity include:

  • Google Ads on websites
  • Social media ads via Instagram, Twitter, Facebook
  • Newspaper publications.
  • Radio/television adverts
  • Referrals

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