The profitability of transportation business

Posted by Chidinma on Thursday December 25, 2014 at 22:8:5:

The transport business is one viable business anybody can venture into; there are two major aspects of transportation business which are passenger transportation business which focused on transportation of people while the second is the goods transportation which is also known as logistics or haulage, and involves the transportation of goods and products from one location to another, which ever aspect of transport business you venture into, you can profitably succeed in the business because of the ready market available.

Profitability is the ability of a business venture to yield profits; and business that doesn’t yield profit is bond to go bankrupt in a short time. I will give you an over view of the profitability of the transportation business starting from the basic thing you need to get started.

Let’s calculate your business profitability if you wish to venture into the passenger transport business; first you need to do all the necessary registrations and required by the state to run a passenger transport business. After which you get the vehicles you need to get started depending on the amount of capital you have. Lets stay you purchased ten 16 sitter buses; to know how profitable the is, you have to deduct your expenses from your income; the remaining is your profit.

Continuing with our above illustration, the sixteen sitter buses are to ply a route where each passenger will pay N500 and all 10 buses take a trip at least once a day; and each vehicle requires N1,000 worth of petrol to make the trip while the drivers are paid N2,500 from each trip. It means that the income generated by each vehicle is N8, 000; you subtract N3,500 for gas and payment for drivers. This means that each car will make you N4,500 daily.