With the number of people trooping in and out of Lagos State, this state has over 20 million residents in her, Nigeria as a whole has a population of over 170 million, you can never go wrong if you start up a cab business in Nigeria.
Cab drivers make about N 8,000 or more on a daily basis, the good thing about this business is that you can start with just a car and gradually grow into having fleet of cars for your business. It is not necessary you drive it yourself you can hire driver who would just give you returns on a daily basis.
The steps you need to put into consideration when starting cab business are as follows:
Capital
Cab business is a lucrative business, it is capital intensive, even if you decide to start with a car it involves start up capital of about N600,000, this will be used to buy a fairly used car to start your business, you can buy products like mazda, opel, mitsubishi, and other cars that are durable and cheap to maintain. You can get your capital either through funds from family and friends or simply obtain loan from banks, it might even be your personal savings. It is advised you start your business in a small way and then grow to the level of owning fleet of cars. Ensure you buy a good car that can pay back what ever you have borrowed.
Rental or Hire Purchase
Rental in cab business means you give the car to the driver and he gives you returns on a daily basis, you will remain responsible for the car registration at any motor park, license, maintenance and repairs. If you choose the hire purchase arrangement, the hirer takes full responsibility of the car which includes registrations at motor park license and maintenance and repairs of the vehicle, which ever one you choose, it is important you carry out proper background checks on any driver you intend to rent or hire your car to. They should provide guarantors who can testify to their good and recommendable character and integrity.
Remember, if you don't carry out your investigation properly and you fall into a wrong driver, he or she can drive your car recklessly and this could damage your car and you could loose interest in the business. So make your research right.
Determine the location you want to run your cab business
The areas you choose to run your cab business will determine how much your driver will deliver to you on a daily basis, for instance, if you run your cab through victory island you might get daily delivery of about N10,000 in some part of ikorodu in lagos you can earn daily delivery of N3,000 to about N7,000 on a daily basis. This daily delivery is only applicable if you choose a rental service.
Obtain a License
You must ensure that your drivers have the acceptable commercial driver license. This will help your driver to avoid embarrassment from those law enforcement agents on their daily activities.
Mode of Dressing
Some drivers think their job is just to drive car and drop thier passengers at their destinations and so, this makes most drivers look so un kept. You could just introduce dress code to your drivers. People address you based on how neatly you are dressed so make sure your drivers are neatly dressed.
When your business is fully set for operation, all you need to do is watch your business grow and then think of how you can expand in your business.
Wish you all the best in your business, wish to read your success story soon.
Please can you advise me on what option is more profitable? Car Rental or Hired purchase. I actually planned car rental with daily delivery because I feel I may change my mind in-case the business is not going well. However, the driver I had the mind of using, though trusted suggested hired purchase. So I am confused
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