How to Start a Clearing and Forwarding Business in Nigeria
If you have a dexterous and hustling spirit, then a clearing and forwarding business could be the best for you. Your job here is to negotiate between client companies and shippers who need their facilities and services.
Your job designation equally involves payment of duties and taxes, clearing of goods from the ports, transportation of consignment to clients’ suitable destination, etc.
Clearing and Forwarding Business is a lucrative business far as international trade still takes place in Nigeria. You can also establish this business from almost anywhere.
How to Start a Clearing and forwarding Business and Make Money
Make the decision:
The clearing and forwarding business is considerably tough and competitive, so you need to fully comprehend and decide if really you can handle this business.
Do you have the bargaining capacity with companies, clients, haulage or trucking companies and custom agents? Can you meet clients’ deadlines? You need to answer these and more before taking to Clearing and forwarding Business in Nigeria
Gain The Necessary Experience
You need to be skilled and Intelligent in business management as well as logistics before contemplating starting a clearing and forwarding business. This is due to the many formalities inherent in transactions processing.
It involves lots of negotiations with custom agents, shipping companies, clients, etc. you will also have to deal with stiff competition in the industry. Gaining necessary experience and exposure will indeed stand you out from the crowd.
Develop a business plan:
You need a good business plan on Clearing and forwarding Business in Nigeria. It will give you a basic idea on all items required for starting clearing and forwarding business. This includes things like the capital, equipment and facilities, progression, management etc. it will also give you an idea of a perfect marketing strategy.
Just like any other kind of business, you need some level of funding to get started. This, however, depends on your chosen niche.
However, your source for your funds, it should be enough to cater for costs at least for the first three months of the business.
Sometimes, before clients compensate you, you may need to, first of all, settle the shippers yourself so as to prevent unnecessary delays especially in invoicing.
Get the necessary license:
Go to Customs and get the required licenses for this business. This is recommended although you may not need it at the start. But when you are settled on getting properly licensed, you would need to decide on your business location, kind of business office, and types of equipment for the office. You need to also decide whether or not your business should be cited near to the sea port.
Network with the shipping companies:
Try as much as possible to grow your network list of shippers together with that of your prospective client companies. You never can tell when they will need your services as a clearing and forwarding company. So, forming a good working relationship with them really matters.
Source for clients:
You cant do without clients in this business. So, you need to do effective marketing in order to achieve this.
Spend some money in advertising your Clearing and forwarding Business. Also, or alternatively, simply network with other non-licensed freight forwarding businesses.
Plan to recruit staffs as your business expands. Understand that though Clearing and forwarding Business in Nigeria is quite lucrative, your capacity to effectively manage the incessant hurdles of the business is key to your success in this business. Also, your level of understanding and penetration of the business environment matters too.