It became popular in Nigeria after many state governors banned the use of okada (motorcycles) in their capital cities. The Keke NAPEP business is not only easy to start, but very lucrative. It can be run by both the young and the old.
Due to the nature of the Keke business, you can practice it in almost all the major state capitals in Nigeria and still make good money from it. It is also considered to be safer than the okada.
Steps On How To Start A Keke NAPEP (Tricycle) Business In Nigeria
Venturing into Keke business in Nigeria though easy, involves a series of things that I'll be listing down below. They include:
• Create a business plan
Creating a business plan is one of the first steps every entrepreneur should take, not just as a Keke driver. It'll guide you on all the things you need to do as a start-up and how to run your business effectively without making mistakes.
Things your business plan will contain include:
- The cost of the Keke NAPEP
How much will I budget for my Keke? Which brand will I go for? The most popular brands are the Bajaj, TVS and Paggio.
Their prices range from ₦500,000 to ₦900,000 for a brand new unit. If you intend going for a second hand, you will be budgeting around ₦180,000 to ₦240,000. Both the brand new and the fairly used are good but ensure you buy a faultless tricycle if you'd be going for a fairly used one.
Keke NAPEP for hire purchase
If you don't have enough funds, you can also opt for the hire purchase option. In the hire purchase system, you'd pay for the Keke NAPEP in regular instalments while having the use of it.
The owner of the tricycle will give you a target, maybe on a weekly or monthly basis. You'd then have to pay for the tricycle till you reach the agreed amount.
- What other expenses will I make before launching the Keke NAPEP business?
The major expense you need to budget for is the tricycle, but that's not the only one. You also need to plan for some other things like the plate number registration and the motor park union fee.
According to Naijauto.com, getting your plate number will cost around ₦30,000 while the motor park union fee will be lesser.
- How to fund your business
Another major thing you need to take care of is how to raise enough capital to keep your business running. There are so many different ways of funding your business including:
➣ Collecting loans from a cooperative union or microfinance bank: A number of microfinance banks make loans available for small scale business entrees. The banks will give you a time frame to pay off the loan with an interest rate.
➣ Raising money from family and friends: People that don't want to collect loans from the banks can also raise money from their family and friends. The money can be in form of a loan (most times without interest) or a form of supporting your business.
➣ Your savings: You might have probably been working before deciding to venture into a Keke NAPEP business. If you were able to save up some money, it can go a long way into funding your proposed transportation business.
➣ Selling some of your old stuff: You can also decide to sell off some of your old properties in order to raise money for your Keke NAPEP business. If you have an old car, you can trade it for a tricycle. It might be a good bargain, especially in a populated city like Lagos that Keke NAPEP business fairs very well.
➣ Hire purchase: I've already explained what it means to purchase a tricycle on hire purchase. It involves taking an item on credit and paying in regular instalments. In most cases, the price for purchasing an item on instalment is usually higher than the item's regular market price. For example, if the price of a new tricycle is ₦700,000, you might have to pay up to ₦1 million in instalments.
Conclusion
Having seen how to launch a successful Keke NAPEP business in Nigeria, the next thing you need to do is to take a step. As you progress, you should also expand your business by purchasing new tricycles and giving to other drivers.
Also, endeavour to run regular checks on your tricycle and take it to an experienced mechanic once it develops any faults.
What more? Don't forget share your opinions and suggestions in the comment section below. Before you leave, kindly check out our next article on top 5 profitable businesses you can start without capital in Nigeria.
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