With the advent and subsequent growth of Ecommerce in Nigeria, there has risen a need for people who run delivery service business in Nigeria and who know what they are doing to step up.
A lot of the Ecommerce companies in Nigeria like Jumia and Konga run their deliveries using bikes and that is a good pointer that delivery services business in Nigeria is on the boom and would not die down any time soon.
How about other not-so-huge independent retailers and malls that have started doing home or office deliveries due to the Covid-19 inspired business innovations. There is a high rise of people who have started businesses from their homes recently and are enjoying a great number of patronage, you can bank on their patronage to get yours if you wish to run a bike delivery service business in Nigeria.
People no longer go through the stress of going to shops, printing presses or even laundry shops and so, working with those businesses would get you a guaranteed flow of customers.
Do you want to start a bike delivery service business in Nigeria? Let us look at the most important, yet easy things to do as you start this highly lucrative delivery business.
Bike Delivery Service Business In Nigeria – How To Start
It is not like you cannot just jump in and start any business you wish to start but the thing is that any business started without a defined plan is doomed for failure already. The major benefit of a business plan while starting a business is that it helps you define all gray areas you wouldn’t know exist. Things like mission and vision are absolutely important as they keep reminding you why you started in the first place. A business plan would help you get a loan when you need one, it would also help you streamline your expenses as you start and even as you run the business.
A business plan is highly advised if you really intend to succeed in the courier service business in the face of the uncertain business terrain that Nigerian businesses operate in. It is through a business plan that you figure out how much you REALLY need to get started. It is through a business plan that you figure out who your competitors are and how to outsmart them. If you need a business plan specifically tailored for this business, you should seek professional opinion from someone who has started and is running a successful bike delivery business already. It is always important to get a business plan or an assistance in that area from someone who is successful in the business.
Equipment & Branding
You don’t just need a motorcycle to start a courier service business. Every business has their own unique requirements and this is no exception at all in any way.
Below are a few equipment you need to get started:
- A motor cycle (or more, depending on your budget)
- Dispatch box (es)
- Mobile phone(s)
- Computer & stationeries
- Relevant software (for tracking and monitoring)
When it comes to starting off a business by buying a lot of the machineries afresh like i did when i quit my job to start my own business, budget comes into a big play.
Since you may likely carry deliverable that could be a little heavy, you should go for strong motorcycles. Never neglect safety measures. You must buy protective gears like helmets and hand gloves for your riders. The hand glove is just to make sure they don’t get wounded from too much riding.
A strong motorcycle costs from 230,000 – 380,000 Naira and a dispatch box does not cost more than 30,000 Naira. You need a computer for data processing and at least two mobile phones, one for the rider and one for the office.
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To stand out from your competitors, you need to standout with a creatively crafted brand identity. You should employ the services of a Brand Identity Designer (please, not just a roadside graphic designer). A Brand Specialist understands brand positioning and marketing statement and most of all, not usually expensive.
You should make a brand statement from the onset. the benefits of carving out a great brand cannot be swept under. I didn’t have so much of a problem branding my startup after I quit my job because I was already a Pro Brand identity Designer. You should Seek professional opinion.
Register Your Business
Once again, so many businesses in Nigeria run without proper registration and documentation. While this is a shortcut, it is never a safe thing to do.
You must register your business so you would be protected from some unforeseen challenges. If you do not have the relevant “papers”, you may fall victim to some penalties. You must run your business with a corporate account as it has its own benefits. It is a little expensive to register your business as a company but very cheap to register a business name. You can start with just a registered name and upgrade to a company much later. It only costs about twelve thousand (12,000) Nigerian Naira to register a business name and you can totally do it yourself online.
You should seek professional assistance if you cannot do it yourself but I believe you should know by now, that it may cost you a little more than 12,000 Naira as they would be including their own “work” charges.
Overthinking it is really not necessary. Registering a business name takes less than a month. We know because we have done it severally for businesses owners that relied on us. You can start your bike delivery service business with just a business name and then upgrade to a company registration later as you grow in the business.
Marketing/ Advert & Publicity
If you are starting small, you need two things: flyer and Instagram. Let me explain: you need a flyer to distribute strategically at the places where they need your services. Places like supermarkets, grocery shops and any other business that has a high volume of customers that prefer home delivery. You need internet for online presence. This is a very important tool as you can get up to 70% of your customers from Instagram. So many people are on the lookout for dispatch riders close to their location on Instagram and if you correctly position yourself, you would be picking up good business. Use easy-to-remember names and learn the use of hashtags and also continually engage your audience. It is really not that difficult.
Another hack to it is that of partnership in Delivery Service Business In Nigeria. You can partner with businesses to run their deliveries at a discount rate. That way, they pose as people doing the delivery, they charge customers for delivery and pay you your due amount (always let them know your rate per location) partnership is a big deal. A lot of dispatch riders are dedicated to a business all day. This means that if you charge 500 Naira for each delivery and run 15 deliveries a day, you should have 7500 Naira a day and over 200,000 naira in a month. This is a sketchy estimate but you can do more than that if you do your work well.
It is important that you employ a trusted and honest rider per motorcycle and a staff (or two) at the office who would receive calls and manage the riders, and also carry out other important documentations.
You could need more staff if you have more bikes, it all depends on how big or how small you are playing. Each of your rider must have a guarantor or more you can easily reach just in case of need.
Delivery Zones And Charges
In running a Delivery Service Business In Nigeria, When recruiting a rider, always consider a good and safety conscious rider who knows the best and shortest route to anywhere within your delivery zone. This saves you cost and run time.
If you must charge for any delivery, you must understand the industry standard as there is always a chance that your customer has used another company for delivery before. Charge reasonably and competitively but enough to cover expenses you would incur while delivering orders. Study your competitors to figure out how they arrive at their charges and what software they use for their work. This is sure to help you out.
Be sure to have an insurance cover for your rider and motorcycle. You are plying on the road and anything can happen. Seek insurance professionals to give the best advice that would suit our kind of business and budget.
Have all the relevant registration papers and licenses available at all times. Government policies or even law enforcement agents can be a hard nut to crack in Nigeria.
I hope you got value.