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Taxi Business Plan - Taxi Business Startup Guide for you to make money

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The transportation sector in Nigeria is worth millions and billions of money because the demand for transportation services is on the high side. This accounts for the significant contribution of the transport industry to the total domestic revenue generated within the country every year. Hardly will you step out of your house any blessed day without sourcing for a means of transport to your destination. Even those who own their own private cars find it more convenient on certain days to use the public transport facilities to save costs or to reach their destinations faster. If you do not board a commercial bus, you will enter a tricycle, a motorcycle or even a taxi.

Where I will base my article for today is certainly on the Taxi business because it is one of the most common means of transportation in the cities. Taxi drivers may appear like touts but if only you know the huge amount of money that they make from the business daily, you will marvel. With the recent ban of motorcycles in some Nigeria cities like Lagos and Asaba, the daily income generated by each taxi drivers in those areas has tripled as people now board taxis for their transportation needs.

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[Post Image Courtesy of Samarttiw at FreeDigitalPhotos.net]

The first time I went to Lagos State, I landed in the state capital Ikeja and lodged in a hotel there. When the morning came, I prepared myself quickly to attend a Seminar scheduled in a Hotel which was not too near but not too far to be trekked. So I stopped a taxi for a drop and I was shocked to be charged the sum of N1,000 for a shuttle that will not take up to a minute. That was how I lavished my money on Taxis everyday shuttling to and from the seminar venue for a complete week until the programme was over. When I returned to my residence and calculated my total expenses in Lagos, I discovered that Taxis took over 70% of the total cash that I spent. That was when I began to realize that those Taxi owners were silent rich people.

I have made some research about the business and I have found out that it is not that too difficult to start this business and start making money. One thing about taxi drivers is that at any point in time, money is always entering into their pockets because people can never go indoors totally. Be it in the morning, afternoon or night, people must be heading to one direction or the other and that is where the taxi men come in to make enough money for themselves and their families.

If you want to start this business, please endeavour to start it in a city, town, estates, urban area or in a state capital. These places are locations where you will find rich men, civil servants, government officials and white collar officers who often board taxis for their transport convenience. Also, you need to be an expert driver with a valid driving license. Buy a car and use it for your taxi business. Get all other official documents and licenses as required by the authorities in your operation area so that you will do this business without having problems with anybody. If the city you live in has a particular colour code for commercial cars and taxis, go to a car painter and apply the colour in your taxi and you are good to go out there and start making money.

Passengers can hire you for a lift or drop to a particular destination and this demands that you should try as much as possible to study and learn the different parts of the state or city in which you are operating. Charge more transport fees for such deals. But also, you can use your taxi to pick up people going along a defined route and drop them as they reach their respective destinations and make money from their fees. Charge them depending on the distance covered or at the ruling transport prices as defined and charged by other taxi drivers.

Also, find out if the Taxi drivers operating in your area have an association. If they have, join them and co-operate with them. Pay your fees and dues, attend their periodic meetings as may be scheduled from time to time and adhere to whatever rules and regulations which they stipulate to guide and protect the business in that location.

Buying a taxi may be a very difficult issue for so many of you here. If you do not have sufficient money for it, there are many other options. Find out if there are existing government grants for business and take advantage of the opportunity if it is available. You can also borrow money from your friends, take loans from banks and individuals, sell some of your valuable properties to generate money or go into a hire purchase agreement with a car seller. These are avenues through which you can generate funds to source a taxi and start the business.

As you make your money, fulfill your financial obligations to your lenders and pay up the principal amount and interest within the stipulated period of time. Then, you can start enjoying your money alone and be your own boss. For more insight into this business, comment below for reasonable tips and answers. You are always welcome to read this blog.

Catch you later in our next post !

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About Author Mohamed Abu 'l-Gharaniq

when an unknown printer took a galley of type and scrambled it to make a type specimen book. It has survived not only five centuries.

1 comment

  1. Here you can get the http://www.croplataxi.com/ taxi dispatch software to manage your taxi business easily. Run your taxi business like OLA,Uber and earn commission from each taxi company and promote your taxi company. Reach them sales@technoduce.com

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