I’m starting a business primarily because of my passion for creating wealth through innovation, value creation and service delivery that solves real business problems and simultaneously adds value to employees, the society and all other stakeholders. I see opportunities in Nigeria every day despite the perceived harsh economic environment and I’m certain the most effective strategy for leveraging and maximizing these opportunities is by starting a business. I took particular interest in the Nigerian Energy, anufacturing and !onstruction Industries and focused my research on their outsourced services. In the process, I found out a wide range of services and I eventually decided to invest in provision of logistics services. I plan to start up in the Niger "elta #$ivers %tate& and %outh 'est Nigeria. y understanding of the business, management skills, previous experience and thorough knowledge of the local business and operating environment give me a high probability of success.
y business involves providing targeted clients with logistics and transportation services that are based on mutually agreed (ease #and in some cases, )ire*+urchase& contracts. (ease !ontracts guarantee income over agreed periods. I will be responsible for maintenance and staff remuneration. I will manage the entire value*chain of processes associated with providing these services to my clients. s the business grows, I will expand into heavy e-uipment leasing. he larger the business gets, the more funding i can access, and the more profitable the business becomes under sound management.
I will employ both traditional service contracts #for big clients that do large volumes& and innovative lease contracts #that lock*in modest and consistent cash flow over agreed periods but dramatically drive down risk& for small small to medium clients. I intend to purchase freight vehicles, trucks and operational vehicles that will provide transportation transportation services to clients over agreed contractual periods. his would enable my clients to focus on their core businesses while en/oying high -uality outsourced services.
y clients span the 0pstream, !onstruction and anufacturing industries. he n ew local content act and the +etroleum Industry 1ill of the 2ederal 3overnment will also result in significant increase in demand for support services in these industries.
y !ompetitive dvantage is primarily in my thorough a nd tested understanding of service delivery. I will deploy technology and world class business processes, employ and train competent and well mannered staff 4 drivers and also implement performance
based compensation. I will institute a vehicle maintenance regime that will comply with superior maintenance -uality standards.
here are players already in this industry and it wouldn5t be an easy ride. )owever, I must mention that this market is no where near saturation point. I intend to grow both organically and through ac-uisitions. I will build a solid reputation through superior service provision and superior employee working conditions and compensation.
y clients would make payments as documented in the contract for each leased vehicle. he cash flow from periodical payments would be used to compensate staff, pay associated bills and carry out maintenance on all vehicles. he surplus funds would be aggregated over a period and plowed back into the business for expansion and more ac-uisitions. I can break even in about two years if the business doesn5t expand. )owever, profits would be plowed back into the business till it becomes an industry leader.
I need to do the following6 7. $egister the company and appoint company directors 8. Identify and rent office space 9. Negotiate and agree lease contracts with the first set of clients :. c-uire 8 New oyota )ilux rucks #8;;< odel& and two != trucks >. Employ an office secretary and three drivers
y -ualification and experience6 7. 1achelor’s degree with honors 8. I have skills in business analysis, performance management, financial and cash* flow analysis, negotiation and technology implementation 9. I have previously worked with leading consulting and manufacturing companies in Nigeria :. I initially ran a private logistics services arrangement that broke even >. I currently have a private lease arrangement of wo != rucks that delivers a monthly cash flow of ?;;,;;; naira. !apital outlay was about @ million naira.
Identified risks are as follows6 7. heft of vehicles A #itigation6 !omprehensive insurance and installation of real time tracking devices&
8. %ignificant damages and vehicle mismanagement * #itigation6 %trict maintenance regime, comprehensive insurance, well trained and competent drivers& 9. )igh staff turnover #itigation6 %taff and drivers would be compensated and given incentives and bonuses that put them ahead of their peers in the industry& :. +ayment default by clients * #itigation6 1usiness would be done with reputable clients. erms of contracts would be clearly spelt out and signed off by all stakeholders& >. (ack of clientele #itigation6 here is a current huge demand in the industry especially for competent logistics services providers. Nigeria is an emerging economy and the economic growth numbers clearly indicate that there would be continued economic expansion in all industries&
8 oyota )ilux rucks and !omprehensive Insurance A @,:>;,;;; naira 8 ack rucks A 77,;;;,;;; naira !omprehensive Insurance for != trucks B >>;,;;; naira %alaries for > employees #9 months& B <8;,;;; naira %tatutory, legal fees and stationery B ?8;,;;; naira %hared Cffice %pace B >;;,;;; p.a. otal B 88,D:;,;;; Name of 1usiness B E (ogistics
