Did you know that the trucking and haulage business concern is one of the promising business opportunities in Africa?

Growing import volumes are a fundamental sign of Africa's speedily expanding consumption. Every day, huge volumes of nutrient items, industrial raw materials, refined petroleum products, heavy and light equipment, vehicles and consumer goods (electronics, clothes, dwelling house décor etc) valued at billions of dollars get in at African sea and air ports from the USA, Europe, Due south America and Asia (especially China).

These large chunks of imported goods need to be transported to several towns and cities until they reach the small retailers and final consumers. As a result, trucking has get a lucrative business organization and more than smart entrepreneurs are getting in.

Permit'southward take a close look at this opportunity and how you can start a trucking business for yourself…

Why is the trucking and haulage business growing across Africa?

In spite of the recent global recession, African economies accept shown sustainable growth (v percent average) over the past decade. The forecasts remain very positive and trade between the continent and the rest of the earth has doubled since 1999.

Equally Africa's economic system and population continue to explode and the size of the middle class increases, every other continent wants to sell goods to Africa.

Transport and Haulage - bad African roadsIn addition to imported goods at the ports, factories need to go their majority products from the warehouses to wholesalers in distant cities and rural areas.

However, given our continent's poor, and undeveloped, rail and inland waterway transport networks, almost all heavy appurtenances are transported internally by road!

As a upshot, trucking and haulage take go large business concern in many parts of Africa.

Trucking may exist a very costly, risky and inefficient option to ship heavy appurtenances (given the bad land of many African roads), merely it appears to exist the only practical selection at the moment (fifty-fifty though it puts more than pressure level on the already terrible roads!)

Combined with the ascent product from our factories and farms, more than 100 billion (yes, billion!) tons of goods are transported across Africa every year. Trucking and haulage are the vital links that connect imported, manufactured, and cultivated appurtenances to final consumers like the states. Without these heavy-duty trucks and tankers, commerce may be totally impossible in Africa!

Marketplace Opportunities for the trucking and haulage business concern in Africa

Transport and Haulage - trucks 1Forecasts reveal that the need for trucking and haulage will double across Africa within the side by side ten years. This volition be a directly consequence of increased economic and commercial activities everywhere on the continent.

The opportunities in trucking and haulage are as huge every bit there are several opportunities in this marketplace.

Manufacturers need to get raw materials to the factories and finished goods to the market; importers and exporters need to get their goods to the warehouses and ports respectively. (photograph credit: miraimages.photoshelter.com)

Farmers need to move their crops, livestock, feed, fertilisers and equipment from the farm to market and vice versa.

Builders need to lift a lot of sand, stone, cement and other edifice materials to structure sites… Phew! Don't we all need to move something?

There is a huge need to motility heavy stuff from place to place and trucking remains the only viable way to get this done.

In the face of all these opportunities, expectedly, the trucking and haulage business has attracted a lot of participants. In Nigeria and Southward Africa lone, more 7,000 businesses are registered as truckers and haulage service providers.

There are little or no barriers to offset this business organization; Most people but buy (or lease) a skilful truck, hire a driver, fill upwardly the tank with petrol/diesel and find a customer. That's all! Whether they make a profit or not is a different matter!

Continue reading; we shall discuss the keys to success in this business organization in the sections below.

Transport and Haulage - trucks 2Although it's an easy business to showtime if yous have the first up upper-case letter, as many people who start this business organization every year, fail in their start twelvemonth of operation.

Yes.

This is mainly due to inadequate planning, bereft capital, poor vehicle maintenance, dishonest and reckless drivers who sabotage the business, high fuel costs and bad management by the entrepreneur.

In spite of these high failure rates, there is a lot of potential in the trucking and haulage business for the diligent African entrepreneur.

Using the tips we have provided in the section beneath, additional knowledge and your experience in the field, it is very possible to consistently grow and remain successful in the long run.

Success tips for entrepreneurs in the trucking and haulage business…

(one) Funding

Trucking is a uppercase intensive business organisation and the startup costs can be very high. A durable truck in good condition is bound to cost you some good money (at least, Us$ 25,000).

Entrepreneurs must ensure they do not put the new concern under a lot of pressure level through heavy debt.

Transport and Haulage - trucks 3

Entrepreneurs tin can consider buying high-form second manus trucks in good condition to reduce offset up costs.

It is very probable that business volition start tedious (for a couple of months) earlier it starts to pick upward. If you have a lot of debt hanging over you, information technology is probable that you volition start to cut corners and critical areas of the business concern may showtime to suffer (especially vehicle maintenance and repair).

As a outcome, information technology is best to set up this business with your own finances or capital raised from investors (friends, family etc.) who are ready to wait out the tough times until the business stabilizes, and will not put pressure on yous early in the business.

Circumspection!

Only borrow from the bank or other lenders if yous take a supply contract in hand or you are VERY sure of customers who will rent your services. In addition, y'all have to be sure the business will make enough money to pay back (with interest) under the terms of the loan.

This can sometimes mean the difference between success and failure in this business.

On the other manus, you lot may consider a Hire-Buy arrangement with someone who already has proficient trucks. These arrangements are much more flexible and help to avert the huge initial capital.

You can also check out other options for funding this business in this commodity: 10 Guaranteed Ways To Raise Upper-case letter For Your New Business organisation

(2) Running and sustaining the business

Anyone can start a trucking and haulage business organization; the hard part is e'er how to keep information technology going. The trucking business requires a lot of detailed planning and shut management. Business concern and financial skills are very important here.

You lot should be able to make very reasonable estimations virtually the profitability of jobs you are offered.  It tin can brand more than sense sometimes to plough downwards sure jobs if they are not profitable. This will save you a lot of stress and fiscal loss.

Advertising your services in local newspapers and magazines may exist a very good idea every bit long as it is cost-effective. Use your business organization proper name, logo and contact details on your trucks to create the vital awareness that will fetch more business.

Join a trucking or road ship association in your area to network with similar companies and business people. You never tin can tell who will win a major trucking contract and volition need your services to support his or her fleet.

Security and tracking features on your vehicle can help to brand running the business a whole lot easier. There are dozens of truck tracking and immobilizer services in several African countries. These tools can help you track your vehicle's location, average speed, mileage, fuel use, routes taken and many more than interesting features.

The data provided from these tools can help control driver recklessness and abusive apply of your vehicle. You must ensure your drivers are licensed and well-trained to bulldoze the detail vehicle. It is as well advised to pay drivers on an incentive ground.

A typical example is: the more trips the driver makes, the more money they earn; with generous rewards for road safe (speed limits, no accidents or traffic violations), cleanliness of the vehicle, and keeping to recommended maintenance and service routines.

Properly implemented incentive-based pay schemes similar this tin significantly motivate drivers to make your business successful. Drivers are very vital to the survival and success of whatsoever transport business!

Equally long as the entrepreneur/concern owner does non personally drive the vehicle, information technology is admittedly wise to ensure that your drivers see a very strong relationship betwixt the success of your business and their selfish interests.

A diligent entrepreneur should also seek out cost-constructive insurance cover to limit the risk of severe damage, loss or theft of the vehicle or transported appurtenances. Information technology'southward very easy to overlook the benefits of insurance when concern is doing well.

This is an unprofessional and ignorant way of running this sort of business. In many countries, insurance encompass for vehicles is compulsory and backed by law. Make sure you know what your local law says about vehicle insurance!

Some things you should consider before you lot first a trucking and haulage business…

Transport and Haulage business - startup considerationsBefore you lay downwards your difficult capital to kickoff this business organisation, it is important that yous seek out potential trucking jobs, contracts or customers. This will help you lot to estimate the likely income from the concern.

This income must be able to embrace the costs of your freighting concern for yous to profit. The usual costs include garage parking fees, maintenance and repairs, insurance, cost fees, fuel, marketing, security features (tracking), driver's salaries and and so on.

Yous will also need a durable truck in expert condition that volition help to recover your initial investment and more. Some 2d-manus vehicles with a depression mileage on them can be cost-constructive and brand a very practiced bargain.

However, timely service, repair and maintenance is likely to decide the eventual condition and useful life of the vehicle.

You and your driver(s) volition play a huge role in this regard. You should not be carried abroad when the money starts coming in and forget to 'regularly' maintain and service your vehicles!

In line with our Smallstarter principles, we strongly suggest that entrepreneurs kickoff upward with one vehicle and gradually expand the fleet in line with market place demand and the success of the business. Starting off with many trucks tin spell disaster for your concern if your initial plan and forecast do non go well.

Vehicles must also exist certified to be roadworthy and must have the all the necessary permits and licenses. Special permits may be required to transport flammable, toxic and dangerous materials. You lot must ensure that you accept complied with all your local laws before you start this business!

A final note…

If you have any ideas, questions or advice on on starting a trucking and haulage business, nosotros're sure there are lots of people who are itching to learn from yous.

Delight share this inspiring thought with a friend and recall to leave a comment in the section below.

Remember, you can find more interesting success stories and business opportunities like this ane in theBusiness ideas department of Smallstarter.

To your success!