HOW TO START A TAXI BUSINESS IN NIGERIA

The transportation industry in the country is one that has different business prospects for future entrepreneurs looking to start a business. It offers a number of lucrative options of which the taxi business is one. The business is not new in the country as it has actually been in practice for quite a long time. Not every one has cars and as it is always important in going about our daily activities or at least for some people, the taxi business becomes a really good option in the country. The pattern or method of operations for the business has changed in recent times but it still serves its ultimate function of conveying people to their different destinations for a price. It is lucrative and surely a good business to start.

The taxi business simply involves getting a car or using your personal car to help customers move from place to place for a decent price. Like I’ve mentioned, it’s not really a new business though method of operations has changed. Taxis are really popular and it’s almost easy to get them in some specific areas in the country. As cars are not something that everyone has or even those who have a car might not like to drive always, the option of boarding a taxi comes in and makes the entire thing pretty easy for the customers. Usually, taxis were known to have parks where you can just go and get them but today, you don’t necessarily need to go there before you can get a taxi.

Taxi parks are still in the country but even though they’re not as popular as they used to, they still regularly receive customers who want to patronize their services for a cost. In recent times, things have become more digital even in the transportation sector, as individuals can now sit in their homes and have their taxis come and get them rather than have to go through the traditional or old method of visiting parks. With apps like Uber and Taxify, people can easily get to wherever they are going with almost no stress and even better that they can just order for a ride from their home and it gets to them. Even for drivers, it’s pretty easy to register and start the business.

One of the main reasons why the business is a pretty good business option for entrepreneurs is the fact that taxis and almost all public means of transport are still quite in high demand. Whether it’s to go to school, work, visit a mall or meet up with friends, you’ll definitely need to get a means of transportation to get there and not only is the taxi available, it’s also pretty comfortable and convenient. Like I’ve mentioned severally, while cars are popular in the country, not everyone has them and they rely on options like taxis to go about their daily activities. This demand definitely results in a large amount of customers which eventually brings in high amounts of income for individuals who start them.

Another thing is that it can be started by almost anyone as long as they know how to drive. Even for someone who doesn’t know how to drive, it’s just about learning how to go about it and getting your license and you’re good to go. There’s absolutely no need for any form of educational qualifications or prior experience before the business can be started. The only reason when you’ll need to get training is if you don’t already know how to drive. Asides that, it’s a fairly easy business to start.

Starting the business is not a difficult thing to do as it is infact pretty much easy to start. It doesn’t require too many things and it’s almost so simple to start. Platforms like Uber and Taxify have made the business very easy to start and all drivers or prospective entrepreneurs need to do is just get registered with them and after a couple of other processes, you can start the business without issues and start making your money.

In the next sub heads, I’ll be discussing the steps involved in starting up a taxi business in Nigeria and some neccesary things under each step that might prove useful during the course of the business to ensure that you’re getting customers and you’re also successful at the business you’re starting.

1. RESEARCH

No matter what you’ve heard someone saying about a business and how well success is assured or how lucrative it would turn out, always try to do your own research. The research will not cost anything except your time and that time will prove to be well spent when the business starts and the successes starts coming in. It is important to do a thorough investigation about the business since you’re going to be investing your money into it and you’ve never been involved in the business. Some hours of research won’t hurt.

The research is always meant to give you an idea of what to expect and the challenges ahead to be faced. It teaches future entrepreneur how the business works and what success means. It shows the risks involved and the ways to tackle them. It also gives ideas on how to sustain the business and work towards more success. Imagine missing out on any of the mentioned points, it’s more like being less equipped about something especially something you plan to spend money on.

There are experts in the business, of course, so also look to advise from these individuals as they are most likely the best bet for reliable information on the business. Take note of even the smallest things during the research period and pay close attention to how to stay and survive in the business. The research is as important as anything in the business.

2. WRITE A BUSINESS PLAN

A business plan needs no introduction. It is equally as important as some of the other processes or things involved in the business. After a comprehensive and thorough research has been conducted, entrepreneurs must now put all their ideas into paper after, of course, deciding to start the business. The business plan will cover things like the way you plan to operate, the cost of several things, how you plan to market your business, future projections and also contingency plans.

The business plan serves a number of purposes. In cases where individuals might need to get investors or even get a loan, it will prove useful as it will contain all that needs to be known concerning the business. It is also going to serve as a point of reference for the proposed business.

3. CAPITAL

The need for capital cannot be overemphasized and it’s like a pivot for the other factors of production or processes involved in starting a business. There are different ways to get capital and some of them include personal savings, loan from family members and friends, securing a loan from a bank or even applying for grants. Capital in this case will be on the high side since you’ll be getting a car. It’s more like a one time thing and the only other thing you’ll be using money for in relation to the car is maintenance. If you already have a car, then you don’t need a huge capital as the money will only be used for registering to start the business and also cost of maintenance.

4. GET NECCESARY PAPERWORK AND GET REGISTERED

After getting the car, you’ll need to get all the neccesary documents from regulatory authorities to avoid sanctions and be able to legally go about your business. For registering, you can use platforms like Uber and Taxify for that. Register with them and become one of their drivers. If you’ll also want to be involved in the regular taxi park method, you can just visit parks in your area and get information on how to register with their regulatory agencies.

5. GET STARTED

At this point, the business can now be started. Ensure you keep your car in good condition everyday before you go about your business. Also make sure you drive with care and be nice and patient with your customers.