N80m Worth of Business 30k Startup

Most people will agree with me that transport business is a great business.  But the challenge is usually with the driver or the vehicle.
Well, what business doesn't have its Achilles heals.  Today, I'll be discussing the transport business in a different dimension.

Patiently follow my pitch.

Almost everyone gets to move from point A to B.  It becomes a little complex, when time, stress, traffic and convenience becomes an issue.

We all spend money in transporting ourselves whether you are a commuter, a motorist, or one who has a hired driver to drive him around.

Now I classify everyone into 4 groups using Lagos as my primary environment.

1.       Group A. are the typical commuters that’ll rather take a commercial ‘danfo’ or BRT bus to get to their destination.  Some do this trip daily from as far as Alagbado, Ogba, Ikeja etc to Victoria Island.  They spend an average of N1000 on a return trip. Notwithstanding the rush, rude conductor, inconvenience, traffic, and the filth they’ll encounter.  This group will pay N20,000 per month on transportation.

2.       Group B. this group are commuters that do same trip as group A. the difference is that they, rather than go with the commercial buses, they opt for a paid ‘chartered’, ‘drop’ cab.  They pay an average of N3000 on a return trip. Making a monthly average of N60,000 on transportation.

3.       Group C. This category of people have their own cars. Only downside is the stress of driving through the traffic of our busy metropolis, and the effect it has on the cars and of course on their health.  They spend an average N25,000 to fuel the car.  Asides the stress, likely breakdown, insurance, sleep deprivation etc. that cannot be quantified.

4.       Group D.  The last group is just like group C, only that, they get a private driver to chauffeur them at an average cost of N30,000. Making a total of N55,000 per month.

 The perceived earning power of Group A may not allow them fit into this business model.

So what if you tell each person in Group B – D that you’ll provide them a uniformed driver, a brand new Air Conditioned car, to pick up at home and drop them off at work daily for a paltry N50,000 for one month circle, do you think it’ll be a bargain for them?

They won’t have to drive, they won’t fuel the car, they won’t need to service the car, and they won’t need to pay the driver. Hmm.

If your gut says yes.  Keep reading or stop if otherwise, because it gets more ridiculous.

Good you think it’ll probably work.

Now your deal with these guys is for pick up and drop off, say within the hours of 5am to 8.30am and 5.30pm to 9pm.

Again, What if you tell a company that you’ll provide them a brand new car with chauffeur for their pool at a cost of 70,000 per month.  They won’t pay the driver salary nor pension, they won’t maintain nor fuel the car, if the car breaks down you’ll send a replacement.  Do you think it’ll be a bargain for them?

 Your deal with them will be within the hours of 9am – 5pm.

If you have a buy in from both individuals and company you are in business.

Well sounds nice and catchy hmm? But how will it be funded?  Lets say you'll need about NGN 30,000, yes Thirty thousand naira only. 

Further info email me with blog subject as your mail subject.  Great week.
Image curtesy, idriveyourcar.com