HAULAGE BUSINESS IN GHANA

Haulage business is quite a lucrative business most entrepreneurs in Africa are currently venturing into. Haulage which Longman business dictionary describes as the business of carrying goods by road or rail. This business is profitable, however for an entrepreneur to commence you must consider the following steps;

NICHE
The haulage business is wide as it includes transporting Fast Moving Consumer Goods, foodstuffs, clothes, building materials, charcoal, logs, crude oil etc. Therefore, before you commence you must identify your niche as it helps to determine the cost of project, clients to prospect and type of vehicles to be used in the business.

BUSINESS PLAN
This business requires a business plan which should indicate your mission, financial plan, target market and products. This would help you identify the capital needed to ascertain if you need investors or not.

CAPITAL
Haulage business is capital intensive due to the cost of vehicles and operational cost especially maintenance. With a good business plan, you can access a loan mostly auto loan though most financial institutions do not finance startups. You can also partner with other individuals in order to raise the capital.

BUSINESS REGISTRATION
It’s appropriate to register this business due to the kind of corporate clients you would deal with which makes your business more organized. The business name must however depict the type of service (thus haulage) you would render.

PROSPECTION OF CLIENTS
After you have identified your niche you list down companies belonging to that sector and send business proposals. Please make sure you present yourself and company as a credible outfit.

OPERATION

Haulage business can operate as an independent company or subcontract. As an independent company you have direct agreement with the company you serve, and you oversee the drivers and maintenance. As a subcontract haulage business, you can have contracts with bigger haulage companies who have agreements with the company whose products are to be transported. With this arrangement the main haulage company takes charge of all the processes and payments would be made into your account.

STAFF
The main workers in this business are drivers however these workers must be trained and monitored since the success of your business relies on their conduct. To ensure effective monitoring it’s important to take a schedule from the company to have an idea of where a driver is at a time. This aspect of the business is very important since most companies state in their contract that they have the right to temporarily or permanently withdraw the services of haulage companies who fail to deliver their products to assigned destination and this termination notice can be as short as 10 days.

MAINTENANCE
Haulage companies are responsible for maintenance of their vehicles within a period. For those on sub contracts the main haulage companies would select a workshop where the vehicles can be serviced but if you are an independent haulage company its prudent to employ the services of a professional mechanic to service the trucks periodically considering our bad road network.

CONCLUSION
Haulage business is profitable, and the good news is that you can start with just one truck. However ensure that all the above measures are observed for effective operations since most haulage companies are held responsible for spoilt and stolen items as stated in most of the companies contract.