How to succeed in transportation business is one very big questions a lot of entrepreneurs found very difficult to understand and those who wants to embark in this area of business.
Succeeding in the transportation business is something that requires been smart. Been smart in the sense of understanding the in and out of the business.
Every business has its in and out, environment and every environments has its potential customers. An entrepreneur’s ability to understand this goes a long way to help his business succeed.
In order to become successful in the transportation business, there are few things an investor needs to know and this few things which will be listed below will go a long way to help him become very successful in this line of business.
- Environments: this is the very first thing an entrepreneur who is venturing into this line of business needs to put into considerations. Environment is number one key factor that will determine how successful you will become in this transport business. One good thing about the environment is that it will help expose your business to the right customers and potential investors.
- Area Of Specialization: the transportation business is very wide and versatile and as a result, it is always important to have an area you will specialise in. In the transportation industry, there are basically 4 areas to invest in and this are listed below;
- Spare-parts business: this area of investment or interest requires one investing in the spare-parts of these vehicles which are used for either commercial purposes or private purposes. And from experience, the people who trades this line are more richer than the people who sells the vehicles itself, this is because of profit margin involved.
- Sales: this area of interest means that the investor or the businessman or the entrepreneur is selling only the vehicles. This set of people who sell this vehicles are either importers or people who buy direct from a particular brands representative distributor in his country. Although depends the type of vehicles been sold, the profit margin is not as big as people who deals mainly with the spare-parts.
- Service: this set of investors invest mainly on the maintenance and repair of the vehicles when faulty or when their regular service is due.
- Transporter: These are the people who invest in buying this vehicles to run a transport business. They transport or convey people from one place to another and in return they get paid for the services been rendered. In doing this they tend to make money to take care of their families, maintain their vehicles and re-invest in more fleets for the expansion of the business. The only risk in this area of specialization is accident and that is why it is always encouraged for one to invest in life insurance so that if anything happens while running this business they can be able to get compensation.
- E-commerce: with the recent advance in technology and internet traffic, it is very important to know that, e-commerce in the automobile industry is another area of specialization that people are few compared to the rest we have mentioned above and whether we like it or not, e-commerce has come to stay. An example of e-commerce companies who are doing well are UBER, TAXIFY AND CHEKY.COM.NG etc . investing in e-commerce can be in so many ways, it is either you’re providing a platform for people to sell or buy cars, or a platform for people to get their vehicles serviced or a platform to transport people from their current location to another location. one good thing about e-commerce is that it provides comfort to the customer. So An entrepreneurs’ ability to see future in e-commerce as far as automobile industry is concerned, such entrepreneur will move far and become a success in this industry provided he or she knows what they are doing.
So as we have treated the most important thing above, now comes the question which is how to become successful in the automobile industry industry?
To become successful in this industry, one needs to get an office space where he or she will operate from, then he or she will need to choose an area of specialization as mentioned above. Although not really necessary to choose a specific area, one can combine two to three or all of the above provided his financial strength can carry it.