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How Profitable Is Bakery Business In Nigeria? by Femoje(m): 1:59am On Sep 22, 2018 |
How Profitable is Bakery Business in Nigeria? This is a
bakery business feasibility study for those who will
want to venture into this business.
The bakery industry is a huge market across the world.
Food is life after all and in a country with over 140
million people, food is a great expression of our life and
culture.
How profitable is Bakery business is an exciting topic
to explore when you count the amount of bread
Nigerians consume daily. Some people say that having
a Bakery business is equal to printing money in your
house.
That claim is an exaggeration, therefore this article will
give you bare facts and leave you to judge whether it is
a profitable business or not.
You will learn how to start your own Bakery business,
discover why selling on credit and return of unsold
stock by wholesalers could cost you the business, and
why being able to give the market the exact flavors and
varieties at fair prices, would make your bread a
consumer’s delight.
Does the Market for Bakery Product Exist?
Bakery products such as, Bread, is a highly nutritious
food eaten in one form or another by nearly every
person on this planet. It is a good source of vitamins,
protein, and carbohydrates.
Bread is a necessary part of human diets for over one
hundred years in all parts of the world. Because of this
important truth and over a century history of bread in
our daily food, it has a huge market.
Nigeria has large populations with purchasing power
who eat bread with local foods such as pap, bean
cakes, porridge beans, etc.
Considering these facts, investing in a modern bread
making factory could be a good business venture.
There is always a demand for food and
catering services everywhere. People need catering at
their weddings, parties , corporate events and so on.
And if you are an amazing cook or you have an
amazing team who can cook, then it is time to put
skills to good use and launch a catering business.
However here are a few things you must tick off the list
before you launch your business.
Locate Mentors Before you Start bakery Business
Mentors can easily tackle the question, how profitable
is bakery business if you are willing to get one to guide
you.
For every business, you have people who have been in
it for a long time. Find these people and get adequate
information about the business from them.
They will tell you the equipment to buy, where to buy
them, the types of bread to sell, how to get a bakery
license, marketing tactic to sell your bread, where to
hire good staff, etc.
Having a bakery is a hugely profitable business
venture.
With the love Nigerians have or baked goods ranging
from the very popular Agege bread, to chin-chin, meat
pie, cakes, small chops and so on. There is a huge
market to be tapped into. Demographic actors favor
this business highly because age, religion, gender or
location is no barrier to the consumption of baked
goods.
As long as you can develop creative market strategies,
you can smile to the bank, banking at least a million
naira every month.
Nigerian has a huge population ; a profit margin of 10
Naira on every product sold to 1,000,000 people every
month gives a total of 10,000,000 every month. This
sounds pretty easy right? This might not be a one day
journey for the owner of a bakery, but it is an
achievable estimate, given the right strategies and
attitude to marketing.
Please note that your products have to be of good
quality, finger licking deliciousness and well packaged
with top notch hygienic considerations. You want to
sell a crowd pleasing product in order to pull funds
from the crowd. Making it affordable and available is
also a plus that will drive in increase in sales.
Do you have an existing bakery or are you intending to
start a bakery and you are looking for ways to make it
more profitable?
Market Survey.
Do a market survey to find out the demand in the
market that present Bakeries are unable to meet. The
survey could also find out whether those bakeries serve
their customers well, the size, quality and flavor of
bread buyers prefer.
Use this market survey to produce a feasibility report
to discover whether the business idea is worth doing.
Source for Start-up Capital
The opportunity you have discovered in the market (i.e.
the recognized demand the market is unable to meet),
will affect the amount of start-up capital you need to
start the business.
Secondly, the size of the business, site, class of staff,
equipment, and measure of raw materials you would
need, will give you an idea of the amount you need to
open the business.
Get a Business Plan
You can verify how profitable is Bakery business by
writing a detailed business plan as you prepare to open
a Bakery.
Get and use the feedback you got from market survey
and the feasibility report, to write a business plan that
will enable you serve a hungry part of the market that
want your product.
The business plan will analyze the amount of start-up
capital you need, the source of capital – whether to
use loan, your savings, a mix of both or collect funds
from family and friends.
The business plan will have a marketing plan, the
number of staff you need, cash flow, break even and
sensitivity analysis, and the kind of equipment you
need, etc. That is how important a business plan is, so
never start a business without one.
Bakery Equipment
You ask yourself how profitable Bakery business is, as
you consider the cost of equipment and other materials
you may need to start the business.
Buying the right equipment is very important. The size
of bakery, the opportunity you want to take, site and
the startup capital, will help you choose the equipment
to buy.
The list of equipment is as follows: mixers, foreign
electric baking oven or local wood heated oven, large
tables, refrigerators or water chillers, dough divider,
dough molder, bread slicer, bread pans, water proof
wrapping sheets with your label on them, display
shelves for storing freshly baked bread and a van for
distribution.
After the installations of the machines, make sure you
keep services of skilled technicians for maintenance of
the machines.
Primary Baking Materials
The key materials needed for baking are flour, yeast or
baking soda, butter, sugar, water, flavors, etc
Get Government and Regulatory Approvals
Make sure you get necessary government approvals. To
be on the right side of the law, pay the fees and meet
all regulatory requirements for setting up food business
in the country.
For example, get a license to run a bakery from
government authorities. Join the local chapter of the
Association of Nigerian Bakers, to guide and give you
advice on rules and regulations to obey.
Get a Good Location
Get a good place that is near the buyers you wish to
serve. Without a good place sales will be difficult. If
wholesalers, retailers and public are unable to reach
you easily, that will cause the business to fail.
You may put it in the busiest place in your community,
close to a busy major road, near a market or even near
a school. It depends on the part of the market you
wish to target. Without enough demand, there would
be no business so get a place with enough traffic.
Hire the Best Staff
How profitable is bakery business without good staff?
The simple answer is that your staff is the most
important thing after the business plan. Therefore,
make sure you hire those working in the industry with
basic experience.
Appoint experienced staff to work as baker, flour mixer
and molder. Others are oven operators, carriers, Bread
pan openers and cleaners, etc.
These jobs are essential for making excellent bread
that will not only surpass set standards, but also
compete favorably with other products in the market.
After making the bread, you would have to sell them.
Hiring marketing staff with vital knowledge of bread
distribution is the key to sale.
Contact Us:
BAKER- BAKERY CONSULTANT- BAKERY STARTUP
WhatsApp: 08173857040 |
Re: How Profitable Is Bakery Business In Nigeria? by chido20(m): 4:17am On Sep 22, 2018 |
I'm managing one |
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