Courier business is very lucrative in Nigeria and all over the globe. All you need is just the take off capital after which you only need a small amount to keep the business running. There is so much opportunity in this business looking at the nation’s population. We have only but few investors, you can easily count the number of courier companies in Nigeria with the tip of your fingers.
There are different ways of running a courier business. Your area of concentration can be only on the logistics. That is you acquire a delivery van or bike delivery service and attend to companies or individuals who are into supply or haulage business. It is very easy for those into the transportation business to add courier service, and almost every transport company is doing that.
Things needed for courier business
Van or bike
Envelopes with logos
Bags of different sizes
Waybill
Office
Staff
Weighing machine
Gum
Pen
Cello tapes
staplers
Inventory books
Trolley
Shelves constructed in the office
Chairs and tables or counter
Requirement for courier business
Write a business plan
Every business needs a business plan so write a courier business plan that will help you kick start the business effectively. Make a feasibility study to know what is lacking and how you can fit in. Identifying a problem and proffering a solution is what brings money.
So find out the number of courier services in your area and how they are operating. Are there lapses, what can you do to improve on that? When you are able to answer these questions, then you go ahead to do the planning.
Register with CAC
It is very important to register with the Corporate Affairs Commission in order to get a company name. Choose a name that is unique and easy to pronounce. When registering with NIPOST you have to present your business name.
This is the name your company will be known with. It is not difficult to register a business name with CAC. Just walk down to any of their offices closer to you and do the registration.
Get an office
The office can be your own or a rented property. It should be spacious enough to contain all the consignments you will be collecting. You should have offices in areas the consignments will be going to. You may not cover everywhere or all states. Just concentrate on areas you can dispatch the consignments successfully.
Register with insurance company
You have to insure your courier business with a reliable insurance company so that whenever any loss or in case of disaster or accident the insurance company will pay for it.
It will also serve as a covering to your business.
Purchase all relevant materials
Set up your office, purchase all the items required for the business. If you are into transportation business you can start with the vehicle carrying passengers. Envelopes and other items that are not bulky can be choked into the vehicle.
For bulky items you condemn seats and place the items on them. But you have to charge the consignee the amount for the seats and the amount for the service. If you have money to buy a van or truck it will pay you well because bulky items generate more money.
Employ and train your staff
You have to employ a few staff when the business is just kick starting then keep adding as you expand. It can be two staff for the headquarters and one at the branch offices.
Train your staff on how to do the business effectively. You can spend money to send them to other courier companies to get experience or pay people to train them. And this training should be done from time to time especially as the business grows.
They should be well trained on how to package items so there won’t be any mix up or loss.
Employing a dispatch rider, it is very important.
Register with NIPOST
Before you can operate a courier business in Nigeria you have to register with NIPOST to get a license. And before you can get a license you must meet their requirements which are listed below.
These are the requirements for your courier company to be registered or renewed by NIPOST through The Regulatory Department
This information is to be accompanied with a letter of grant of license or renewal for those renewing
1. Your CAC registration
2. Memorandum of Association
3. Your original company’s tax clearance for the past three years
4. Tenancy agreement or lease papers of the office you are going to use for your courier operation.
5. A proof or information to show your ability to operate a courier service.
6. Evidence of payment of application fee which is non refundable
7. Qualification, addresses, names, telephone numbers, fax (optional) of Company’s Directors
8. Evidence of agreement if you are partnering or merging with any other courier company.
9. Any other necessary information including capital base of N2 million or bond, N500, 000 for insurance policy.
10. Samples of waybill, envelopes, tags, bags, registered trademark and receipts.
11. For renewal, provide evidence of any change in the previous information provided before.
Application should be forwarded to the Senior Assistant Postmaster General (CRD) with the license fee of N2 million to be presented in bank draft for local courier service and N20 million for international courier operations with a non refundable fee of N20, 000.
Finally, the Inspection team from CRD would visit the head office of your courier company; it should not be less than five branches where you are using for operation. If the inspectors are satisfied you will be given a new courier license. For renewal local courier is N500, 000 while international is N2 million.
The fee for registering a courier will be renewed after 12 years according to Dr. Simeon Emeje.
The problem courier operators encounter is multiple taxation from local governments through stickers.
Challenges of courier business
There are very serious challenges to watch out for which can crash courier business fast.
Misrouting of consignment
Sometimes due to human error for instance a parcel that was supposed to en-route Lagos from Abuja will be sent to Anambra. And sometimes the consignment is needed urgently the owner will be waiting for it. Checking it couldn’t be found amongst the ones that came. The owners always get so mad at the point of suing the company. Sometimes before the consignment will get to the person may not have need for it again.
Delay in delivering consignee’s parcel
Unfortunate incidents do happen, such as car breakdown, accident, riot, so that the parcels spend some days on the road. Instead of one day or two days the parcel may spend three days on the road.
The Mistake of handling someone’s parcel to another
Another challenge is giving another person a parcel that doesn’t belong to them. There was a scenario where a parcel that was sent from Uyo to Lagos international passport, the owner who was going to travel the next morning was mistakenly given to another person. You wonder how it happened.
The envelope holding the international passport was stapled to another envelope, and many people were waiting for their parcels.
As the things came with the rush the two attached envelopes were given to the person whose name was in front. The person collected the parcel and dumped it somewhere. Before he saw the attached envelope and sluggishly brought it back to the office, the bubble had already busted.
The owner of the international passport sued the company and demanded N5 million. With much begging, he was paid N2.5 million. The company had to shut down for six months. This happened not once, twice or thrice. Eventually international passports became prohibited in the company.
Unclaimed parcels
Some people don’t come for their parcels and you will keep on having heaps. You don’t know whether to destroy them or not, it can be very uncomfortable.
Marketing
It is a plus to do advertisements especially if you are just starting. So many courier companies don’t advertise so take advantage of this. Reduce the price so that people can patronize you.
Handle people’s parcels carefully, they will be the ones to advertise for you.
Things you shouldn’t collect in courier business
• Chemical
• Money
• Intentional passport
• Drugs that can’t survive more than six hours
• Liquid
• Fuel.
How much to charge in courier business
It depends on the weight but for little things like envelope, it should be N1, 000
Then 1kg of consignment is N1, 500 and so on.
Items that will be delivered to the consignee’s address are higher in charges. Sometimes two times of what it should be if the person is coming to the office to claim them.
Cargo service
You can upgrade by going international. If you have people on ground in the country of your interest it will make the establishment easier.
Conclusion
The Courier delivery business is lucrative. You need a license to start the business publicly. And NIPOST is in a position to give you the license after meeting the requirements. Watch out for challenges in this business. Bike is very important for dispatching mail because it is faster.
source@enibest.com.ng
