Here in this post, we are going to give you a breakdown of the steps to start okada business in Nigeria. We hope you find this post helpful.
This is arguably one of the most lucrative businesses to start in this Economical bad times of Nigeria. Motorcycle or popularly known as Okada business is a much-known business all over Nigeria.
However, very few people know that this business has the prospects of bringing you millions every year. How? This article will explain and guide you on how to start an okada business and turn it into an empire.
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Overview of Okada Business in Nigeria
Okada business goes as far back as 1990 in Nigeria. Nigerian youths turned to this vehicle as an alternate form of transportation and even income for so many reasons;
Traffic: This was very common in Lagos as people are up before 5am and rushing to work. Because of their size, motorcycles can fit into small spaces that cars cannot. This made them a faster means of transportation in both rural areas and even big cities.
Availability: The state of Nigerian roads are nothing to write home about. Okada riders however, are able to ply this very rough terrains and get you to your destination on time.
All this means that Okada business is a gold mine if exploited properly. People have become familiar with this vehicle and nowadays prefer them to taxis or buses, they aren’t going anywhere anytime soon. As we go further, I will explain why this business is a gold mine for entrepreneurs like you.
There are so many opportunities in this business, and profits are unlimited. A source bought a fairly used motorcycle for 60,000 naira and gave it to a driver with an agreed contract to pay him 7,000 naira every week, till he makes up 105,000 naira and a guarantor as a precaution.
This young man will therefore seat in his house and wait while he receives a weekly pay of seven thousand naira every week.
I know of a man in Kaduna who has 12 of this sort of contracts and his drivers pay him 5,000 naira every week. Doing the calculation you will notice that alhaji gets 64,000 naira every week. This is what many civil servants earn in a month.
But in a situation where you prefer to be the rider, you can still make it successful by either using it as a transport vehicle or package transport vehicle (This will be explained in details below). A typical Okada rider makes N5000 daily excluding fuel and maintenance.
How to Start an Okada Business
One thing I love about transportation business is that, you do not need a customer base to strive.
Buy a Motorcycle
Motorcycles go for different prices in the market, it all depends on the amount you have and the type you want. You can get a fairly used bike for 85,000 naira now in Nigeria. You can purchase this bikes at local dealerships or online platforms like; JiJi, Konga, Jumia E.T.C
Decide Whether You Want To Rent or Ride
Just like I said, you can give your newly purchased to another driver who will upon signing a contract with a guarantor, pay you a specified amount weekly or monthly.
However, if you are in immediate need of money or you are interested in riding your bike yourself, you can also be getting a fair income even more than what most bankers and civil servants earn.
Earning 5,000 naira every day excluding fuel and maintenance, An Okada man can earn more than a 100,000 naira monthly.
Choose A Location And Know The Routes
As a motorcycle driver, you must know short-cuts, and routes because majority of people who board Okadas have little or no clue of where they are going.
You must memorize little details like; the color of a house, a mango tree, and name of markets, popular churches and sometimes names of popular individuals like a chief or politician.
Your Passengers expect that you get them to their location on time, regardless of any traffic. So you must memorize routes and short-cuts.
You must also mark your boundaries and limits, you do not want to drive a passenger from Ikorodu to Badagry or Lagos Island.
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Learn Good Customer Relation
Although, in transportation there are no fixed customer base. You can have a fair number of people who can call you to come pick them and take them to their destinations.
Yes just like Uber, if customers like you and your service, they will collect your number and call you if they need a special drop off like; Airports appointments, meetings, church or a social event.
Set A Goal And Business Plan
No business is too small for a business plan. You can set a goal to buy your own taxi car by the end of that year. This is a good way to keep moving forward in both your business and life.
With a standard profit of 20,000 naira daily, an upgrade to a taxi driver is not a bad idea at all. Who knows, soon you might even start your own transportation company like Uber and Taxify.
Decide If You Want To Do Delivery Service
I do know of a close friend, who rides a motorcycle but does not carry passengers. He delivers packages like small gift items, letters or online sales to the customers from one part of Lagos to another in hours.
He charges a fee of 5,000 naira per Item. This friend of mine recently hired four more drivers and started his own official courier service.
You too can do this if you do not prefer carrying people. All you need is a nice uniform an helmet, good riding skills and commitment.
I believe in big dreams, but I also believe in starting small. Although, you might see Okada business as a business for poor people, Okada business can give you a reliable income every day. Saving a small amount each day, you could earn enough in two years to buy a taxi or bus for an upgrade.
Never ply routes you are unfamiliar with, and be careful with the kind of people you carry on your motorcycle.Buy and Sell Bitcoin in Nigeria - Register for free on Luno
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