The business will be mainly focused on transporting people, goods and services from Lagos to all other metropolitan cities in Nigeria on daily basis.
I'm an upcoming Entrepreneur with strong desire to maximize profit from open opportunities. I'm planning to start a commercial bus transport services which shall focus on conveying people, goods and services on daily basis from Lagos to all other metropolitan cities in Nigeria as there is insufficient supply of such services and the road transportation sector is never saturated.
Nigeria has the largest road network in West Africa and the second largest in south of Sahara with roughly 108,000 km of surfaced roads. It is having a population of 162 million people in Africa, which is still rising. However, Nigeria been a country with old infrastructural facilities, poor management, poor service rendering coupled with corrupt practices by some workers in the rail transport sector and exorbitant prices local airline operators charge for interstate flight of which many Nigerians could not find affordable has made the road transport sector witness great influx of passengers on daily basis across all motor parks in Nigeria.
The population is there and the environment is good, which makes the commercial road transport business a highly profitable business one can venture into and make huge profit in a short time since the service is demanded on daily basis.
The business has remained one of the most highly lucrative businesses in Nigeria because of the daily demand of citizens and other residents. 90% of the businesses involved in Transportation Services making huge profit on daily basis.
As a starter in this business, my main business venture and activities shall be service oriented of conveying goods and services, people such as business men and women, market women, workers and students to their various destination from Lagos to other states in Nigeria which is having more than 35 states on daily basis. I shall also provide chattered/hired bus services to cooperate organizations, firms, factories and industries for transportation of finished goods to different parts of the country.
The target market is the huge population in Nigerian with Lagos an urban center and been one of the most densely populated city where passengers wait and queue for long before getting a bus to convey them to their destination.
The potential passengers will change to my services and remain loyal as people will prefer boarding new, neat and fully air conditioned buses that will not break down and disappoint them on the way. Moreso, passengers will not be overloaded, the passenger carrying capacity of the bus will not be exceeded thereby making customers to sit with comfort and enjoy their trip which makes them satisfied thereby having their full loyalty.
My direct and indirect competitors are other road transport operators such as commercial bus drivers, cab/taxi drivers and government owned public transport schemes whose vehicles are either badly maintained or in poor conditions which often disappoint passengers on their way and also been overloaded and congested with passengers will make people switch over to my services as I'll stick to quality service rendering with always in good, healthy, constantly maintained and fully air conditioned buses without exceeding the passenger carrying capacity of the bus and charge a fairer fare.
Moreso, online booking will be made available as the business grows and expands it tentacles to other parts of the country in future.
I'm entering into the road transport business sector not only for profit making but also to ease the movement of people, goods and services from one place to another.
My service is needed on daily basis by almost three quarters of the entire population.
At the start-up stage, two new 14-seater Toyota Buses will be purchased. Upon making progress and starting generating profits more buses will purchased. To additionally secure the business, the two buses will be insured by an insurance company.
More so, I'll actively take part in been one of the driver of the buses for proper monitoring and management of the business till it grows.
UTILIZATION OF BORROWED FUNDS
2 buses will be purchased. Each will cost $25000
2 buses will cost $50000 and $10000 will cover insurance, vehicle papers and registration.
TOTAL FUND TO BE BORROWED
$60000 (Sixty thousand Dollars)
Two years with an interest rate
CALCULATION OF EARNINGS
Daily return of 1 bus= $125
Daily earnings for 2 buses will be $250 ($125 times 2)
Monthly earnings for two buses will be $6500 (250 times 26 days)
NB: Buses will be working for 26 days in a month and will be resting for 4 days in a month or one day in a week. This arrangement is to make the buses last long and not over work the drivers.
The yearly earning of two buses will be $78000 ($6500 times 12 months)
2 years earning for 2 buses will be $156000 ($78000 times 2 yrs)
The borrowed money (loan) and interest will be refunded from the two years earnings.
Overall loan amount = Sixty thousand dollars
Expected payback period = Two years
Interest Rate = 12%
NB: An Interested Investor can fix his/her interest rate upon Negotiation.