Starting a bakery business in Nigeria should not cause you sleepless nights and even if it is, you have landed on the website where your sorrows will become joy.
This is Nigeria and everyone eats bread including me and you. Bread now comes in different varieties, shapes and flavor and is sold in high quantity in Nigeria due to its high demand.
The demand id the more reason why you need to start your own bakery business in Nigeria. It gets patronage from all citizens and everyone irrespective of the income level and location – whether urban or rural is not a limiting factor to bread making business.
If you are interested to know how to run a bakery business, then read further as this post is going to give you some great revelations of setting up a bakery business in Nigeria.
Bread is one of the top five most popular food in Nigeria and it is so popular that it has home all over the world and people of all race find delight in eating it.
I personally cannot give up the fresh smell and taste of freshly baked hot bread for anything else, and with this in mind, I think it is wise to say starting a large scale or small scale bakery business in Nigeria is going to be a great idea.
How to start a complete small scale bakery business in Nigeria: Beginner guide to Wealth
In Lagos alone, about 10 million loaves of bread are consumed in everyday and we are not even talking about the whole of Nigeria, I guess you are already seeing the profitability of bakery business in Nigeria.
This post is to serve as a start point for you and it does not say you should not conduct a proper feasibility study and research before starting your own bread making business in Nigeria.
Before you proceed, I will advise that you seek the consent of those already in the business before you or seek more advice and counsel, you can reach me through the comment box.
Business Plan and Profitability of Bread Bakery Business in Nigeria
It cost about N80.00 to produce standard loaf of bread in Nigeria. The bakers sells at N130 to suppliers and make N50 per bread.
The suppliers sells to retailers at the cost of N170 and make N50 gain per loaf of bread they supply while the retailers sells between N200 to N220 to the final consumers.
So, N50 is the average gain made by each of the parties involved at every stage from production to the final supply.
A typical standard bakery with good supply network produce and sell 50,000 loaves of sliced bread weekly on average. Now multiply 50 by 50,000 and what you get is the profit for the weekly production and supply – N2, 500,000.
Since the cost of production have been taken care of by the N80. You just need to subtract the running costs to get your final profit. Lets say you spend the whole N500,000 for the running cost
- Cost of fueling your diesel generator for the week = N50,000
- Cost of fueling and maintaining the supply vehicle = N100,000
- Cost of labor and staffs welfare during the week = N100,000
- Damages and other miscellaneous expenses = N50,000
When you subtract all these from the N2.5 million, you will have N2.2 million left as your take home for the week. Is that not really profitable?
Basic requirements of setting a bakery business in Nigeria
Now that you understand the profitability in a simple bakery business, it is time to see the basic requirements to setting up your own simple bakery business in Nigeria.
1. Get a Bakers Training
You have to get training to become a professional baker, you need serious training in bakery and food processing.
You can get trained by attaching yourself to a bakery for a period of time of buying a manual that puts you through the whole process of becoming a great baker.
Another tactic to become a trained baker is to look for someone with the knowledge, employ the person and learn as the person works.
Prepare Your Bakery Business Plan
He who fails to plan, plan to fail. You need to have concrete bakery business plan that will guide you along the way. You can prepare it yourself or hire a professional to do it for you.
Don’t just assume you know everything, lack of a proper and clearly written out business plan can make your bakery business fold up within a short period.
Source for Finance for your Bakery
Bread bakery business demands a lot of capitals especially when you have set up your mind to start very big and in a flamboyant way.
If you start small scale, you may not get the patronage you want but starting big will draw customers faster for you, hence you need to get enough money.
Choose Your Bakery Location
Your location is a major factor to the success of your bakery business. You need to look for a suitable location with a ready market to site your bakery.
Stay away from other bakery in competition and try to stay away from a cluster of building so as to prevent legal action and disturbance.
Make sure the distance though accessible for suppliers and retailers, so it must not be too far from the town center although you can make up to this with good marketing and supply mechanism. If your product is good, well branded, and marketed effectively, people will find you no matter where you are.
Note: People are very picky, sometimes they may turn your product down just because of its location, so be wise in choosing a location for your bakery business.
Build Your Bakery/Factory
You must have secured funding, so it is time to build up your bakery which alternates as the factory and it must be up to standard or you may face the wrath of NAFDAC.
You now have to procure and secure your bakery business equipment, below is the list of equipment you need to get to start the bakery business.
Bakery Business Equipment You Need To Acquire
- Baking Oven– You need to go for the industrial baking oven if you can afford it or make the traditional clay oven.
- Flour Mixer– Mixer is the device that mix the flour and other ingredient into pastry ready for baking. There are local mixers and there are standard electronic mixers. Go for the one that is suitable according to the standard of bakery you are setting up.
- Slicing Machine– This is important if you intends to slice your bread. Sliced bread is the most popular and most respect in Nigerian market. Therefore, slicing machine is compulsory if you are baking in Nigeria or any other country like that.
- Baking Pans– Some heavy ovens do come with baking pans but that may not be suitable to the size you wants to make. You need to buy or design baking pans according to your specification, I mean specification according to what is obtainable in the market.
- Bread Wrapper Supply– You a well branded bread wrapper in constant supply. Make arrangement for this in advance before production commences.
- KVA Generator– You’d always need a standby generator, very big one for that matter. Your production is sensitive and you can’t afford to joke with it.
- Supply Truck – Then a supply truck to help in your marketing. There no way you will be able to market effectively if you don’t have at least one supply vehicle.
Other include: Refrigerators, display cases and, the most important of all, a huge baking oven.
OTHER REQUIREMENTS TO SETTING UP YOUR BAKERY BUSINESS IN NIGERIA
Get Association of Nigerian Bakers license
It is required that you register with the Association of Nigerian Bakers. They will provide you with the necessary information you need and the rules that bind the business in Nigeria.
For a start, you can employ people to handle tasks such as baking, someone to be working on the oven and distributors. A minimum of six employees will do.
For your safety and that of your employees, and for savaging your bakery from serious fire damage, it highly required that you install fire detectors and fire extinguishers.
Risks Involves In Bread Bakery Business in Nigeria
Every business on earth has risks involved and bakery business is not left out, but you have to be prepared and not be caught unawares.
You have to plan for all this eventuality and this is what will make your bakery business in Nigeria become an household name.
- Your Bread could get burnt
- Price Fluctuations
- Police Harassment
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