A guide on how to venture into car hire service business in Nigeria



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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