Haulage simply refers to the commercial act of transporting goods from one point to another by land. It’s an aspect of logistics which aid the conveyance of tangible goods such as building materials, equipment, electronics, as well as food and other consumable items. Most often, it gives bulk conveyance service involving the use of large vehicles like tippers, trucks, trailers, and other land transportation medium across the nation.
There has been a great need for haulage companies due to importation and exportation of goods, e-commerce Etc. Haulage companies disseminates heavier, bigger products and help individuals, companies, enterprises and businesses move a truck load of goods nationwide. It provides a new and easy way to transport full container load of goods from one location to another around Nigeria. Haulage companies are not only useful in the urban regions, is also useful in the rural regions in the transportation of farm products to the market. Haulage business is a daily need thereby making its market a really big profitable venture.
How to Start Haulage Business
1. Get adequate knowledge about the business.
Knowing a lot about hauling business will help you succeed in the business. The knowledge acquired will help you understand the detailed requirements for the business. In transportation business ensures you have more than background knowledge as a result of lots of regulations because of the increased risk and dangers. If possible learn from people who are already into the business, be mentored by experts in the business. You can also undergo businesses courses that will help you manage the business successfully. You just need to acquire as much as possible the right knowledge to succeed in hauling business.
2. Choose a Nice.
In the cause of studying the hauling business, you will discover is a wide business involving crude oil, building materials, medical equipment, consumables, sand, gravel etc. To operate effectively there is need to choose a niche except you have enough capital to purchase lots of fleet and diversify your operation. The niche you choose will enable you determine your startup capital, specification of vehicle and your prospective clients. In choosing a niche you should have a vision for the business. What extent do you want to build the business? What products will you prefer to convey? What’s your startup capital? Can you bear the risk? Who your prospective customers? Deciding and planning this out properly will help you determine the transport system, and mode of operation becomes easy.
3. Create a Business Model
This gives you an exact picture of how your business will look like. The business model is seen as a plan for the successful operation of a business. It identifies the sources of revenue, the products, intended target customers, and outlines the details of raising capital etc. Also it will enable you describe how your business will create delivery and capture value for you and your potential customers.
4. You Need Resources & Good Network
In this business you must learn to be resourceful and good in networking. Heavy hauling businesses partner with clients and companies in other industries to provide transportation services to them. Also establish relationships with professionals in the sector this is because new business owners often find customers through networking with other people. Contact and learn about companies that contracts heavy hauling service and build a customer list. It’s also very necessary to relate with Load boards and brokers who will engage you when your truck is free. They play a vital part in the business. Sometimes it may cost you some % of your profit working with the brokers but the connection will keep you busy more often.
5. Get Required Licenses
Due to the high level of risks in the hauling business there are lots of legal requirements that’s crucial before starting operations. All commercial machinery operators must be licensed in these categories:
Business Registration: If you will be operating inter-state transport then it is imperative that you register your transport business name. If you are in Nigeria you register with the Corporate Affairs Commission (CAC). It is easy to register. Just walk up to any CAC office in your state with the business name and some amount of money then is done.
Driver’s License: Every driver is expected to have a valid driver’s license irrespective of their driving experience. This also saves you the questioning from officers of the law. You will need to get it from Federal Road Safety, (FRSC).
Vehicle insurance: All vehicle operating in this business needs to insured. As mentioned earlier the business is full of risk. There may be cases of unpredictable accidents which may lead to loss or damage of properties, for an insured vehicle the effect of the loss will be minimal due to adequate insurance.
Registration with transport union: There is need registering with National Union of Road Transport Workers (NURTW) and also do all registration requirements by the union bodies within any state you are operating.
6. Get a Good Business Location
When it comes to the site for establishing a haulage business, certain factors should be considered:
Connectivity: The business should be sited at load breakpoint. An area close to where ships and Cargos carrying goods or products converge. This is to say it could also be located in port sites. Places where there are conveyance of goods and services regularly.
Proximity: The business should be located in proximity to several resources and serve as a convenient point of collection and distribution. It could be a mining area, agro area or any of such.
Accessibility: In a situation where the business cannot be sited in a close to collection and distribution of goods, then it should be located in an area that can be accessible, where clients can access when your services are needed.
If you consider all of these stated guidelines you will build your business and succeed greatly. However I must tell you that making money in Haulage or any other kind of business, making money is to a large extent dependent on your persistence and patience, knowledge on business and good strategy etc.
In business, almost every market in any sector has a place for incoming entrepreneurs because no matter the numbers of entrepreneurs in this business, no matter how big and influential your competitors are, there is a place for you in the business. If there are lots of competitors you can decide to concentrate on a niche and grow your own business to stand out giving maximum satisfaction to your clients. Now is time to get started in that haulage business idea. Good luck
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