Investing in the transport business can be profitable, but managing commercial vehicles requires knowledge, consistent oversight, and careful planning to avoid costly setbacks. Based on real-world experience, we explore essential factors and offer practical advice on how to start and succeed in Ghana’s transport industry.

The Investment: Learning from Experience

Starting with a used 2014 Sprinter, this case study details challenges and lessons learned in managing a transport business. The vehicle had been on the road for nearly a decade, and in 2023, GHC12,000 was invested in refurbishing its engine and performing necessary bodywork. The initial investment generated GHC23,000 by the year-end, followed by an additional GHC3,000 by early 2024. However, ongoing repairs drained these profits, highlighting critical insights for prospective investors.

Key Challenges in Managing a Transport Business

Managing a transport business with an older vehicle can be difficult due to wear and tear, driver-related issues, and inconsistent maintenance. Here are some common challenges experienced:

1. Frequent Mechanical Issues: For older cars, repairs can arise from any part of the vehicle—clutches, brakes, tires, gates, and more. This led to unexpected downtime, lost income, and constant repair expenses.
2. Driver Fatigue and Reliability: In this case, the driver was unable to maintain a full 6-day workweek, often leading to only 5 productive days and further reducing weekly revenue. Ensuring your driver is both reliable and physically capable is essential.
3. Lack of Maintenance Consistency: Although the driver had a trusted mechanic, emergencies led to multiple mechanics working on the vehicle, creating inconsistency and sometimes worsening the problem.
4. Exposure to the Elements: The driver left the vehicle exposed to rain, resulting in rust and a need for additional repairs. Ensuring safe storage to protect the car from weather elements is crucial for longevity.
5. Limited Supervision: Without close oversight, performance and condition of the vehicle were left unchecked. Effective management requires frequent vehicle checks and direct supervision of driver activities.

Steps to Succeed in the Transport Business

Building a profitable and sustainable transport business requires proactive planning and management. Here’s how to avoid common pitfalls and improve your odds of success:

1. Strong Supervision and Management

To thrive in the transport business, you must have a competent manager or a hands-on approach if you’re managing it yourself. Regular monitoring of both the vehicle and driver ensures standards are maintained and reduces the risk of neglect. Arrange weekly or monthly vehicle inspections to address issues early and keep maintenance on track.

2. Install a Vehicle Tracker

Adding a GPS tracker to your vehicle is a smart investment. Trackers allow you to monitor the car’s movements in real-time, helping you confirm that the driver stays within designated routes and uses the vehicle strictly for business purposes. Tracking data also provides insights into fuel efficiency, travel patterns, and the driver’s daily performance.

3. Select a Reliable Mechanic and Stick to Them

Choose a mechanic yourself rather than leaving it up to the driver. Having a single, trustworthy mechanic for all repairs promotes consistency in servicing and reduces trial-and-error maintenance. Instruct the driver to bring the car to this mechanic exclusively, even if it means towing it over a distance.

4. Invest in a Suitable Vehicle

The type and condition of your vehicle play a major role in the business’s profitability. In Ghana, a Sprinter is a robust choice due to its durability on rough roads, but an older model can incur high maintenance costs. When purchasing, aim for a used vehicle that’s under five years old. New cars are often too expensive initially and can burden cash flow.

5. Hire an Experienced Driver

Look for a driver with experience in commercial driving and basic car maintenance skills. Experienced drivers are likely to be more responsible with the vehicle, recognizing potential problems before they worsen and handling the car more carefully.

6. Budget for Maintenance and Repairs

Allocate part of the income for regular maintenance to prevent costly repairs later. Set aside at least 15-20% of monthly revenue for upkeep, covering everything from oil changes and tire rotations to unexpected repairs. Consistent upkeep also means fewer breakdowns and less downtime.

7. Secure Safe Parking and Storage

Ensure the vehicle is stored in a covered, secure location. Leaving a car outdoors, especially during the rainy season, can lead to rust and other weather-related issues. Investing in safe storage can significantly extend the vehicle’s lifespan and reduce repair costs.

Final Thoughts: Is the Transport Business Right for You?

The transport business can offer steady revenue, but it also requires a proactive approach to management, maintenance, and financial planning. For prospective investors, weighing the costs against the potential income is essential. By choosing the right vehicle, hiring responsible drivers, working with a consistent mechanic, and supervising the business closely, you can improve your chances of success.

The ultimate decision to invest rests with you. It’s important to do your own research and not rely solely on others’ opinions. Talk to experienced operators, consider the financial demands, and assess your ability to manage or supervise the business effectively. With these precautions, you can turn transport challenges into profitable ventures.

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