As of 2017, an estimated 81.5% of workers in Nigeria were categorised as being self-employed. One survey revealed that even among the middle class, “38% are entrepreneurs.” From business, to farming, to eCommerce, running a business in Nigeria takes dedication, time, and plenty of effort. Because so much is at stake when an individual is self-employed, it is crucial to be wise with every dollar that is spent. With the cost of an average vehicle set at approximately N10,500,000, and an average monthly salary at N82,045.45, it isn’t often that business owners rush out to buy a vehicle.
However, despite the obvious expense, the purchase of a vehicle could turn out to be an investment in your long-term success. Explore some of the top ways a vehicle could boost your business.
Are you missing opportunities?
Whether you work online or in person, having a vehicle for your business can open new opportunities. What kinds of opportunities? First, almost any kind of vehicle affords the chance to deliver goods to customers without the use of shipping services. If you find yourself spending a significant amount of money on local shipping costs, a vehicle could eliminate the hassle and reduce costs over several years. Second, if you do not currently offer delivery services, could your business benefit from doing so? If you have services or products that lend themselves to a delivery service, you have an opportunity to increase your earnings. For those who work in highly competitive fields, you can differentiate yourself by offering personalized service to your customers.
Will the cost of the vehicle benefit profits in the long-run?
As stated earlier, even a standard car is not inexpensive (at about N10,500,000). Although there is an initial upfront cost to owning a vehicle, as well as ongoing maintenance costs, the purchase could serve as a long-term investment. How can you determine if this is the case for your business? Compare the potential profits gained by the use of a vehicle in your business with the actual vehicle cost. If you find that your profits would ultimately pay for the vehicle in a short amount of time, this is a business purchase that is definitely worth exploring.
What kind of vehicle would enhance your business?
There isn’t one vehicle that fits all business needs. If you’ve decided that the purchase of a vehicle could be advantageous for your company, assess which sizes and styles would work best. Is a used truck appropriate? Or do you need a brand new car? Whatever the right answer is, be sure that you seek out the best possible deal among multiple sellers.
Buying a vehicle isn’t the right choice for every business owner. However, for those that can benefit from this purchase, enhanced profits, improved customer relationships, and easier day-to-day operations await.