This post is all about starting bread bakery business in Nigeria. So many people have been on this research and hitting us with lot’s request regarding this topic how to start bread bakery in Nigeria.
If your interest is starting a bakery in Nigeria then you have a great dream to have think this much. Many people still don’t know that bread is the most consumed food in Nigeria. If I’m not mistaking, bread is consumed at least twice everyone in almost 90% Nigerian homes. This number of consumption increase in some homes while some people can’t do without bread daily. Bread is the most preferable breakfast for some homes in Nigeria and still many of us never consider bakery business as lucrative.
How To Start Bread Bakery Business in Nigeria
Going into bread production is a nice business and of great idea. If you run this business in good way and well manage, you could become 10 times richer within a period of 1 year. If you have interest in bread production in Nigeria,i would advice you never to give up. Take your time to do your research and start it from somewhere, as you already know that you can start small and grow big as the business expand. If you are a place like Lagos then you are well assured of great success within a short period of time because of the population. Note that i’m not saying it doesn’t grow in other states, just make your research and marketing fo buyers/distributors etc and then start your business.
On this post you will learn how to start bread bakery business in Nigeria. We have already writing the equipment needed to start bread bakery, if you miss it you can check it out here >>> Equipment You Need to Start Bakery in Nigeria
Let’s start by looking at how to set up your bread bakery in Nigeria.
Setting up the bakery is one of the most important area of part of this business. As you may already known, there are so many things to get in place before you can start and some of them are very important that you can do without. So for that reason we should look deeply how you set up your bakery first.
Draw a Business Plan
The different between facebook and instagram is just a business plan if not so, both of them are called social media’s. Business plan is what you want in your business, how the business should operate, when and when will production take place, how many to start with, what plan for the future, how to do delivery, where and who to target as your prospective customers, how much the business will consume for a start, where to buy products, the building plan, materials needed etc. All this are what you must plan from the beginning. A business without proper plan will not only collapse but will cost lost of money, so it important to write your business plan from the beginning and let your business abound to the plan. A friend once said ” lack of proper clearly written out business plan can make a business crumble within a short time”.
Look For Money To Start
After you have gotten you business plan right, the next thing to do is get all the finance needed to start the business. If i should tell you now, a smart business folks doesn’t wait for all the money he needed to start a business before he/she will start. Sorting for money is easy only if you know the right way to do it. The most common way to source for money for your business is by getting a loan. If you are sure you business plan will make good income, then visit your bank manager with your business plan and request for a loan. Banks gives loan to business folks with great business plan. You can offer them the business as collateral or offer them a piece of land as collateral to get the loan. Another way to get money for you business is by going to your religion organization to request for help or loan. For those of you who are Christians, churches will be glad to assist you if they know of your idea. You can seek loan from your church, some may offer you loan while some other with rich people may offer assistants which you don’t have to pay back. In addition some churches may help you consult banks regarding your business in order to get you loan. Don’t forget that the best place to run to any time is the house of God almighty, our creator. I hope this idea of how to get money for your business helps you.
Get a Good Location
Bread is the most consumed food in Nigeria, Yes! but do you know that some places prefer to have their eba, rice, and some other food for the breakfast. You may say I can deliver to any location before you conclude do you know the cost of fuel and the cost running long distances? Considering a good location is something you cannot put aside on this business. You must look for a good location in a city or closer if you plan to excel on this business or you will find out that you are using all your profit in buying fuel. Mind you, i didn’t say don’t deliver to people away from you but first consider the cost before you start. As for me i don’t think it good for a new bakery to start running expenses of running long distance. For this reason i will personally advice get a good location that you won’t be wasting unnecessary money on fuel and won’t be disturbed by communities troubles or neighbors. According to a friend the owner of wealthresult, he said “People sometimes buy products based on the address. I personally have rejected some products because of where the factory is located. It may not be obvious but believe me it happens”
Acquire Bread Production Knowledge
This simply means, go for bread production training and get absolute idea how it work. Even if you are going to hire professionals for your bakery, it of good dead to know how things are being done. There are so many schools in Nigeria training people about bread production, such as how to mix, when to mix, how to make your bread last long, how to bake bread etc.
Build Your Bakery Factory
After acquiring all the necessary training, cash, location etc. The next thing is to build your factory. If you have a good amount to build a factory you can build yours and get perfect rest of mind. If you don’t have good cash to build then rent an already built apartment and install your equipment and start production. Don’t be in hurry to start because there is still one important thing you needed to acquire, that I’m going to state below. What you should do now is make your production factory very clean and comfortable for your workers and buyers. In some cases you may even have a shop where buyers go to buy from instead of them coming to the factory, this is to keep clean the breads and your customer negative prospective, which means after production, the breads are then taking to the sales center for distributors and end users to buy from.
Choose A Good Business Name
Name is the real image of every business. Your name can go very far than you ever thought. When choosing a business name, you should make sure you go for a very good pronouncing name and also make sure it a lucrative name. Most time people think that when you add the product details such as Better Bread makes it more lucrative, but i disagree with that. If i should ask, does Indomin add noodles to their name? how about Magi? just let your name be easy to pronounce so that people can remember it at any time and then save the stress.
Get Business Name For Your Company
This is another important thing as well, though you can operate without a business name, if you plan a good business then it important to go get a business name for your company. The process of getting a business name is very easy and doesn’t take more than 2 months to be done. The cost is as well affordable which is about N50,000 – N80,000 Naira. You can read How to register business name in Nigeria here
Get NAFDAC Approval For Your Bread Bakery
As it is today, your business can’t go without having NAFDAC approval, in fact if you should ignore the aspect and start production, you can be put to jail for going against the food federation law. According to wikipedia explanation regarding NAFDAC duty, It stated that the organization NAFDAC has different essential capacities. As indicated by the necessities of its empowering order, the Agency was approved to: Regulate and control the importation, exportation, manufacture, advertisement, distribution, deal and utilization of medications, beauty care products, medicinal gadgets, foods, bundled water and chemicals.
According to wealthresult view on this area, he stated that It is extremely miserable that no bread presently delivered in Nigeria that passes global wellbeing standard as indicated by specialists report. Everything shouldn’t be cash first; make the best decision and after that cash will come and even outperform your desire. Why give your kindred residents harm in the journey to profit?
There is the test of undesirable and dishonest contenders whose fighting is value decrease. These dough punchers substitute fixings like sugar (which is the most costly fixing) with saccharine in light of the fact that it is far less expensive to do as such, without considering the wellbeing risks of saccharine.
Since the purchaser can’t separate the diverse between a sugar sweetened bread from saccharine sweetened bread, such Shylock dough punchers take the preferred standpoint, since they realize that most shoppers will go for a minimal effort bread first,” said Ebube Frank Umeh, chief of Big Sam Bakery, who as of late propelled Mr Honey brand of bread.
Definitely, attempt and meet the universal standard in your pastry shop business. I can guarantee you that on the off-chance that you do everything right, regardless of how much cash it take you, you will make a lot of benefit consequently and your business will appreciate a positive attitude from man and God.
Before you create anything, you should acquire NAFDAC endorsement first in the event that you are in Nigeria. In the event that you are in other nation, look for the fitting specialist to get your endorsement. At the point when all things is set up, you will be ready!
Risk Involve In Bread Bakery Business In Nigeria
Now that you know all you needed to know to start bread bakery, it will be unfair not to as well notify of the risk involve in this business. It never meant to discourage you but keep you aware of occur as you stat the business, to enable you avoid some mistakes if possible. Below are some of the risk involve in bread bakery business.
1. Your Bread Could Get Burnt
Snapshot of indiscretion by your laborers could get you bread copied effortlessly which may result to high loss of cash.
Introduce a smoke identifier at all area of your pastry kitchen, in light of the fact that for our situation all our night move laborers once nodded off making around 5 flour sacks of prepared bread consume to fiery remains, we were fortunate the building didn’t burn to the ground. So don’t over look little slip-ups from specialists else it will return to chase you.
This is one of the real dangers each pastry specialist must know about as a result of the potential risk it conveys. Yet, it’s a hazard that could be maintained a strategic distance from on the off-chance that you play it safe.
As a result of the opposition in the business and push to pull in more retailers, most pastry specialists offers to acknowledge back bread in the event that it created shape. A few retailers are so imprudent and incapable in offers that they keep those bread unsold for long time just to return it when it creates shape.
At the point when this happens, you are the last individual to tolerate the cost and on the off-chance that it occurs in huge number, you might be bankrupt.
3. Value Fluctuations
Costs of heating crude materials is the most eccentric as preparing flour can change inside days unannounced. At the point when this happens, you purchase flour at higher cost and still offer your bread a similar cost you used to offer since bread is an exceptionally touchy item, you can’t build the cost discretionary.
4. Police Harassment
Since bread is an instant fast food, Police may stop your supply vehicle out and about notwithstanding when you didn’t do a thing and request that you give them a few breads. In spite of the fact that you are not under commitment to give but rather in the event that you don’t, they may attempt to defraud you in different ways.
When you do that forward and backward, envision what number of pieces of bread you would have lost? Street security, LASTMA, and different offices are similarly there.
Interior and outside robbery by your staffs, individuals who may come into the premises, touts on the streets, and others may decrease your benefit in the business.
The most effective method to Setup Your Bread Bakery
Having said a portion of the significant dangers associated with the bread pastry shop business that you should know about, we should procedure to talk about how to get your bread pastry kitchen setup and the materials you require.
Credit to Wealthresult.com for acknowledging this risk factor of bread bakery business.
Estimated Profit Of Bread Bakery Business in Nigeria
Before you go, lets quickly look at the profit side of this business. The major reason why you wanted to start this business is to make profit out of it. Let’s see if the profit from this business is encouraging. Note that we are getting this idea from wealthresult the largest business web in Nigeria
The Profit In Bread Bakery Business
It cost about N80.00 ($0.50) to create standard cut bread in Nigeria. The pastry specialists offers at N130 to providers and make N50 per bread. The providers pitches to retailers at the cost of N170 and influence N50 to pick up per chunk of bread they supply while the retailers offers between N200 to N220 to the last buyers. Thus, N50 is the normal increase made by each of the gatherings required at each phase from creation to the last supply.
A commonplace standard pastry kitchen with great supply organize create and offer 50,000 chunks of cut bread week by week all things considered. Presently increase 50 by 50,000 and what you get is the benefit for the week after week generation and supply – N2,500,000.
Since the cost of creation have been dealt with by the N80. You simply need to subtract the running expenses to get your last benefit. Lets say you spend the entire N500,000 for the running expense
1. Cost of powering your diesel generator for the week = N50,000
2. Cost of powering and keeping up the supply vehicle = N100,000
3. Cost of work and staffs welfare amid the week = N100,000
4. Harms and different random costs = N50,000
When you subtract all these from the N2.5 million, you will have N2.2 million remaining as your bring home for the week. Would you be able to now observe why bread pastry kitchen business is viewed as a standout amongst the most gainful business in its classification?.
How to Bake Bread I Nigeria
The below video will teach you how to bake bread in Nigeria.
This is all we were able to gather for those of you who intends to start bakery business in Nigeria. As you can find above, we have covered all the necessary points how you can start bread bakery in Nigeria.