In Nigeria today, the demand for car
hire service is really increasing on a daily basis. Although the major reasons
for this is not farfetched. A lot Nigerians always move to various places on
daily basis making the demand for car hire service to increase on a daily
basis. Although apart from this, a lot of people in Nigeria also need the
services of car hire for occasions like burial ceremonies, marriage ceremonies,
weddings, parties, etc. With these it really shows that car hire service business
is really a lucrative business in Nigeria. This particular business is all
about pick up and drops. Some of the major customers to this business are businessmen,
and women, company executives, tourists, etc.
Furthermore, car hire service
business is a form of land transportation shuttle service. Without been told it
helps to conveniently crisscross various locations at ease, really away from
the encumbrances inherent in public, transportations in Nigeria. A lot of
Nigerians who don’t really have car of their own for occasions will really like
to employ the services of car hires and pay a reasonable amount for it. Car
hire service business is really a money-spinning business in Nigeria for those
who can run it very well.
The following are the actually
estimate of the startup costs for car hire service business in Nigeria;
1. Purchasing a car: If you want to
purchase a car for the business it actually depends on whether you wish to use
a fairly-used car or a brand new car for the business. In Nigeria you can get a
sound fairly used brand of Toyota, Peugeot, Honda, Nissan, etc. for at least
#800, 000 to #1.5million.
2. Renting an office space: To rent a
good office space can cost you about #500,000 to #700,000, although it depends
on the location.
3. Furnishing the office: To furnish the
office can cost you about #300,000, depending on the type of furniture’s.
4. Promotion and marketing: Marketing
the car hire service business can cost you about #300,000, although it depends
on the location and the choice of marketing approach.
5. Other miscellaneous: Other miscellaneous
which are the cost of risks, consumables, insurance, etc you may budget about
#500,000.
The total rough
estimate of this business may cost you about #4,000,000. The good thing about
this business is that you will get back your investments with profits under 1 year.
Below are the steps on how you can start a car hiring service business in
Nigeria;
1. You need to conduct a feasibility study:
Carrying out a feasibility study is all about surveying the business and
documenting your report. Carrying out feasibility study is really very
important and it is the first port of call in car hire services business. The
information you get from it will really help you to know the pros and cons about
the business.
2. Getting the necessary license and
permit that is required: Car hire service business is like any other business
that also require license and permit to operate. This particular business is under
the auspices of the ministry of transports. You can find out where they are
located and get your business licensed appropriately. You can also get license and
permits from Federal Airport Authority of Nigeria (FAAN) if you actually want
to rotate your car hire business around the airport premises.
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