Bread is one of the most popular products in the Nigerian food market today. There is hardly any household where bread is not bought and eaten. This singular fact is the reason why the bakery business in Nigeria is one of the most lucrative. The turnover and profits of this business are better when compared to other kinds of food businesses.
Despite the potential of high returns from this venture, starting a bakery can be capital intensive. Even if you decide to start as a mini-bakery, you will still have put in more capital as time goes on except you want the business to remain a mini one.
Starting a mini-bakery is possible with as low as ₦100,000 capital. However, going on a higher scale, it requires more capital input which may range from a minimum of ₦500,000 to as high as ₦6 million depending on the proposed scale of production.
Are you planning on embarking on a bakery business venture? This guide comes with all you need on the cost of starting a bakery in Nigeria.
It is unwise to begin any business venture without proper planning, especially in terms of the financial requirements. It is, therefore, necessary to have an appropriate plan for the business to kick-off successfully.
Bakery business can be a money-making machine if you devise the right set up just like the one coming below.
To produce top-quality baked foods and satisfy your customers, you need to know everything possible about the bakery. This includes trade secrets and processing features.
The essence of tutelage cannot be over-emphasized as it is advisable to receive hands-on experience at an established bakery.
Training is so necessary, especially for the small scale size that might lack a large workforce.
Even on a larger scale, you need the proper knowledge to properly train and direct your employees on what to do. In essence, you are responsible for almost every step of the production process.
Baking is an art and to be successful in this business venture. You need to master the art.
Draft a Comprehensive Business Plan
A business plan is a pathway in which the business is built on, and it follows. The business plan is a significant step in starting up a business because it creates a direction and roadmap necessary for the success of the business.
Not sure about how to create a business plan? You can hire professionals to develop a business plan.
As earlier stated, starting a bakery is capital intensive. Starting up a bakery business is a continuous investment as you might need to invest your profit into the company because of expansion.
Choose a Strategic Location
Business location matters as how accessible your bakery is to retailers goes a long way in determining your rate of turnover.
NAFDAC Registration and Approval
Your bakery venture is deemed illegal if NAFDAC has not registered the business and approved your product as meeting their food standard.
The approval is a document that confirms the health safety of your product. Cleanliness and best baking practices is the ticket to getting this approval by NAFDAC.
Here are a few must-have Equipment for a Bakery Business in Nigeria
Baking Oven: What is a bakery without an oven? Of a course, a professional business bakery requires an industrial baking oven. Depending on your start-up capital and the proposed scale of production, you must find an oven that fits your plan. Your baking oven is the essential equipment in your bakery and most likely the most expensive.
Flour Mixer: This is important for mixing flour and other ingredients properly.
Slicing Machine: This is another vital equipment to acquire if your focus of production is slice bread. Sliced bread is very popular in the Nigerian market, so such a machine can be very helpful in meeting customers’ needs.
Baking Pans: Pans come in different shapes and sizes; get the pans that best suits your taste and preference.
Bakery Wrapper: This is an important marketing tool that is of great importance in advertising your bakery far and wide. It is essential to get something as little as the bakery wrapper right to boost sales.
KVA Generator: In a country synonymous with epileptic power supply. A bakery requires constant electricity, which is why you should always have the generator, to avoid problems.
Supply Truck: For delivering the bread after production.
Note that all of this equipment is available on e-commerce stores across the nation like Jumia, Konga, and many more. You can also get them at stores across major cities in Nigeria.
A total commitment and focus on the right steps to starting a bakery will go a long way in ensuring a successful business Venture. Also with this post, you don’t have anything stopping you from venturing into the business.
However, if you are short of funds, you can start saving up today. I hope you find this post useful. Thanks for reading.