Investment Needed in Premium Intercity Transport Project. ROI is 40%.

Opportunity Snapshot

Investment Opportunity

Premium intercity service using luxury vehicles between cities in Nigeria. Funding is needed to launch project. Investor will get 40% ROI after 2 years.

Products and Services
The company would specialise in the provision of safe and reliable premium intercity road transport services to both persons and goods between major cities within Nigeria, using luxury family-sized saloon vehicles with a spacious seating configuration.

Target Market
Our target population are the middle class and emerging upper class persons in Nigeria, who travel frequently and need a safe, comfortable and reliable intercity road transport service provider which they can trust but which unfortunately, the system has failed to provide. Our target cities are every major city in Nigeria with motor roads, with Lagos, Abuja, Port Harcourt, Enugu, Owerri, Onitsha, Calabar, Ibadan and Jos serving as major hubs.

Revenue generation model
Our revenue generation model is the direct exchange system whereby our guest pay our prescribed fares in exchange of being conveyed safely and reliably by us from one city to another.

Business goals and expected outcomes
Our business goal is to become the leading premium intercity road service provider in Nigeria after five years. As such we intend to become the referral premium intercity brand in Nigeria noted for the highest standards of safety, reliability and quality provided to our guest, while at the same time being sustainable and exceeding both our growth and financial targets quarterly.

Project timeline and key milestones
The project will become profitable by the 8th month (without implicit cost included) and by the fifth year, we intend to be operating between all major cities within Nigeria using a fleet of over 500 brand new saloon cars, with ultra-modern terminals built within major cities similar to first class airport lounges in order to provide our guest with the best experience possible both at our terminals and aboard our vehicles. We also intend by the fifth year to make $6million as profit.

Funding needs and offering to the investor
Funding is needed to in order to purchase and customize two fairly used Toyota Ipsum vehicles with which we would launch our services and also lease and equip two temporal terminal structures in Lagos and Abuja, carry out administrative procedures, recruitment and training and miscellaneous. The investor will receive 40% returns on his investment after 2 years in the case of debt investor meanwhile equity investor will get 25% share of the company.

Competitive Advantage

My Direct and indirect competitors
Direct competitors are other scheduled premium and classic intercity road transport companies operating within Nigeria, individual transporters using vehicles and buses. For now, they have generally failed to provide safe, reliable and genuine quality services to their guest with bad customer and low value services being the order of the day even for the premium carriers, as it remains one of the most unpredictable and unreliable sectors in Nigeria. Problems which can be attributed to lack of a clear focus and vision, poor planning, organisation and management, with bus owners being interested in making money with no value for the client who is supposed to be king. The problems are further worsened by the fact that operators have failed to look elsewhere for solutions and are rather satisfied with the statuesque rather than seeking change.

Our indirect competitors are the airline companies who have almost similar problems with the intercity operators companies and are characterised with high fares and aged fleets with a general perception of insecurity being very high. it is also one of the most unreliable means of transport within Nigeria.

Our Advantage
We are 5 to 15percent cheaper than competitors offering premium services.
Our passion to consistently deliver genuine quality, pay great attention to even the slightest details, offering world class standards of service excellence makes us better placed to satisfy the needs of our target group offering better and more personalised customer service than competitors.

We are building a brand which has safety and reliability as its primary focus. Therefore considerable resources would be channelled in terms of both constant rigorous trainings and maintenance to make sure that we achieve a 99.99% mark for both safety and reliability, which no competitor can beat. Our aim is to make sure that each trip leaves on time, arrives before or on time with no record accident or incident in our operations.

Another advantage is that by using cars rather than buses, we would be able to reach our destinations relatively faster than those going by bus.

Given that we intend to expand rapidly using cars, we would be able to deserve even the most insignificant cities offering a wider travel option to our guest, destinations that won’t make economic sense being deserved by buses.

Innovate constantly offering new and better services to our clients which exceeds their expectation building up a positive perception for our brand.

We are adopting a hybrid business strategy by offering premium services in both direct and indirect operations affecting our guest while putting tough cost control measures in background operations so that we satisfy our guest at lower unit cost for us.

By expanding rapidly, we would be able to benefit from economies of scale bringing down our unit cost considerably. By so doing, we would be able to provide better services to our guest at no extra cost for us and without necessarily increasing our fares. With better services, we would attract more customers, expand rapidly, generate higher revenues and make profits.

Rationale for the deal

Our target clients demand safe, reliable and comfortable means of transportation between various cities in Nigeria and have the purchasing power to pay for even the best services. Unfortunately, suppliers have failed to provide services which meets the expectations of their clients and have consequently failed to satisfy their needs appropriately leading to a generally poor customer perception of intercity transport services. We intend to come in, in order to exceed people's expectations and providing them with world class travelling experiences consistently and which keeps getting better each time people use our services, creating a strong perception of service excellence and a transport brand they can always rely on.

We would make money through the direct payment of prescribed fares in exchange of being transported by us from one city to another safely and on time. we equally intend to partner with some reputable international airline companies, so that we could represent them in cities where they do not operate and convey their passengers from those cities to their departure airports and benefitting not only from our fares which have been included in the ticket prices, but also from the lucrative percentage given to local airline representatives per ticket sold.

For now, no market player is capitalizing on these opportunity

I work as a Junior Aviation strategy consultant. For over 3years, I have carried out market research and on the field studies in the intercity road transport sector in Nigeria and Cameroon, where on several occasions i experienced the bad travelling conditions myself when travelling with mainline companies and when travelling with premium companies, got the feeling I am not getting value for what am paying for but rather the feeling of being among a privileged class of people. I have spoken with many people in order to understand their needs and how they could resolved, met with and read on leaders in the sector who shared their experiences and what they think the problem is and how it can be solved. This caused me to look for tangible answers which has enabled me to come up with several concepts targeting the various classes of people in society.

Use of financing

The requested funding is needed for the following;
• Total vehicle acquisition cost=$18200.
• Terminal hall rents (2years) = $9200.
• Hall customization and equipment cost= $8220.
• Staff training and costumes design=$3400.
• Operating license cost=$1000.
• Miscellaneous=$9600.
Total= $49620.

Only one round of funding is needed

Opportunity for the investor

For Debt investor, Overall loan amount is $49620 and investor will receive 40% returns on his investment after two years.

For Equity investment, investor will receive 25% share of the company with his investment refunded after 2years with no interest.

An experienced silent investor will be preferable but who will play the part of a consultant for the idea

Debt investor will receive $40000 by the end of the first year and the remaining $29500 by the end of the second year. Equity investor will receive $40000 by the end of the first year and $10000 by the 4th month of the second year.

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