BAKERY BUSINESS IN NIGERIA
Bread is one of the most consumed staple food around the world. It has been an essential part of our meals for thousands of years and still is today. Rarely would you see a household in Nigeria that does not take bread, at least in a day. It is quite popular for its energy giving characteristics, and well as great taste. It is obvious to see that Bread is very enjoyable, since it is consumed on a large scale. It has indeed become the special part of our daily feeding life.
The process of making loaves of bread are executed in a bakery. Over the years, the processes in making bread have been evolving due to the daily improvement in technology and increased knowledge through science. As a result many Bakeries now contain state of the art machineries which allow for the smooth, and healthy processing in making Bread. The vast majority of the Nigerian population which consume this product keeps the market for Bread huge. This is why many entrepreneurs see it as the ideal venture which will earn them profits on an exponential scale. Through this article, we will explore together, everything any entrepreneur who potentially wants to invest in this business needs to know. The tips which will help entrepreneurs in this business achieve success will also be analyzed.
How To Start A Bakery Business
Starting a bakery in Nigeria is quite easier than many may think. It is obvious that we humans always see what we don’t know as either hard or impossible. This article will help eliminate that feeling of ambiguity concerning the processes involved in creating a bakery business in Nigeria. Here, we will give you a step by step guide on how to create your own bakery business and how to start earning big.
Draft a Business Plan for the Bakery Business
Making a business plan for any type of venture you intend to invest in is the wisest decision any entrepreneur can make. It is a step in the right direction. Planning is the first and preliminary phase of every business; It is where ideas are born, and strategies are created. Bakery business like any other business requires a business plan, where you document your dreams, insights, mode of operation, organizational structure, projections, aims, objectives, cost analysis, and so many other details that determine how you want the business to turn out.
Once your business is finally up and running, then the business plan will keep the business in check and help you access where you are, and how you can get to where you need the business to be. It provides the business with a reality check. Conducting a feasibility study is just to assess how well the business will do in a given geographical region. This can be done by checking out already established pure water production companies around you, and see how well they do.
Decide The Type Of Bakery Business
Gone are the days when Bakeries are considered one dimensional because it’s only function is to produce bread. Today, Bakeries have a more diversified use today, and technology advancements, culinary innovation has played a major role in changing the narrative. Bakery business today has so many subdivisions, so much that you have to try and decide a product or range of products you intend to produce. While some Bakeries produce Bread, some produce cakes, sandwiches, or Pastries.
At the moment, there are two notable types of Bakeries. Each of these Bakeries have subdivision of things each of them produce. The types of Bakeries are classified according to the size of customers they serve. The two types of Bakeries includes:
- Retail Bakeries
According to its name, retail Bakeries basically serve customers directly i.e. They provide products to the final consumers. These kinds of Bakeries have a direct relationship with their day to day customers. Retailers Bakeries are further subdivided into traditional Bakeries which produce coconut bread, fruit bread, biscuits, butter bread, and chocolate bread. These types of Bakeries explore their own creative ideas through their baking. Special Bakeries centers its operation on one product which may be cake, or biscuits. The final type of bakery produces Pastries like doughnut, sausage rolls, buns, meat pies and so on. These ones can be started with a relatively low capital.
- Wholesale Bakeries
This type of bakery make products on a large scale. They often sell products to retail stores and have no real, direct relationships with customers that use their products. These products could be mixed or one dimensional, depending on what entrepreneurs want and decides to go into. It could be bread, Pastries, biscuits, and so on. After identifying the type of bakery you intend to run, which mostly depends on your startup capital, then you can easily have a clear idea of your preferred business and you can proceed with your plans.
Register Your Bakery Business
Many entrepreneurs would usually overlook this point, which may be due to the impression that only large scale businesses should register with the government. While it may be possible to run the bakery business smoothly without any issues from government in some areas, it may prove to be a futile effort to run a bakery business in other areas. Examples of these regions includes Lagos, Abuja, and Port Harcourt. Other states across the country usually have no issues with their unregistered business.
It is worthy to note, however, that there are benefits that come with registering your business with the government. Registered businesses with the government can easily have access to loans when the business runs into some problems, or when entrepreneurs intend to expand the business without the required capital.
Equipment & Machineries for Bakery Business
Depending on the size and scale you intend to build in the Bakery business, you will require different equipment for a wide range of scales. Bakery is a business which requires lot of tools, utensils, equipment; all of which carry out specific functions which help lead to the final product. Some of these includes Mixers, Oven, Dough proofer, Bakeware, Refrigerator, Wood Top Work Table, Proof boxes, Racks and baking sheets, Sinks, Flour Sifters, Trays, Table Top slicer, dough molder, and so on.
Rent/Create Space For the Bakery Business
Before the establishment of any kind of bakery of your preference, you will need space to carry out your daily operations in baking. The space may range from large area to a smaller space depending on the scale of bakery you want to start. If you intend to start a home bakery, then a relatively smaller space is required, but for large scale bakery for bread processing and production, you need a wide space and area to contain the huge machineries. You can either rent a space for temporary use till your business grows and you acquire a price of land permanently. Whatever the case may be, the size of space you need depends on the type of bakery you intend to run.
When trying to rent or buy a permanent space for the running of you business, you have to consider how close your chosen location is to your target customers, how accessible it is for them, health and safety of the environment, proximity to drainage and any kind of pollution that may affect your business.
Obtain necessary Licenses, Permits for the Bakery Business
Aside the registration of your bakery business with Corporate Affairs Commission (CAC), there are other agencies and associations which you have to obtain licenses and permits from, in order to run your business. One of these agencies is the Association of Master Bread Bakers (AMBB). Registering your business will ensure you comply with all the guidelines and standard of operation of Bakeries as deemed fit by the agency. You can locate the branch of this agency around your region and apply for a permit for your business.
You may also need to register the National Agency for Food and Drug Administration and Control (NAFDAC) for accreditation and ensuring you maintain a clean and healthy bread production which will not prove harmful to the health of your consumers.
While both agencies listed here are important for you to get your permits from, there might also be other agencies which you have to register your business with. You can research any other agencies, through other established Bakeries around you.
Human Resources for Bakery Business
Bakeries usually don’t have lots of personnel present. The number of employees you will need for the bakery operations depends on the scale of bakery. The bigger the bakery scale, the higher the number of employees you will need to supplement the business. Most Employees for bakery business are usually unskilled and would need to go through training concerning the daily operations of the bakery. You can employ few workers who are already skilled and professionals in the business, to teach new employees and also be at the forefront of the daily bakery operations.
The growth of bakery business like any business will be exponential when it is exposed to a larger audience and potential customers. You can spread news about your bakery through social media marketing and networks like Facebook, Twitter, Instagram etc. This will help ensure a lot more people, and customers get to see your business and the kinds of products you offer. You can also provide offers and promos in order to attract a bit more of customers. One advantage in bakery business is that most customers are loyal, so once you earn their trust, the possibilities of dealing with another bakery is low.
Bakery business has proven to be one of the most lucrative businesses any entrepreneur can invest in with the expectations of making lots of profits. The wide market and huge daily demands for bakery products ensure entrepreneurs in this business always have market for their products. Once you follow the guidelines to succeed in Bakery business offered through this article, then you will surely be able to reach far heights than you have ever imagined. Bakery business is definitely a viable and feasible business opportunity any entrepreneur can grab in Nigeria today.