If you have been trying to start your own bakery business and you need right information to give you a headstart then you have come to the perfect place and at the end of this article, you will know all necessary things to do in order to start a profitable bakery business in Nigeria
If you’ve ever thought about opening a bakery in Nigeria, then it’s a perfect decision and due to the fact that it satisfies people’s daily needs, the bread industry is very lucrative. It makes sense to think about starting a bakery business because the food industry is one of the fastest-growing in the world.
Even if you don’t have culinary or baking skills, you can still start a successful bakery business by employing those with these skills, you need to have the required management skills for the day to day operations of the business
Is bakery business still profitable in Nigeria?
Bread is one of the staple foods in Nigeria and a day doesn’t pass without people eating bread and other baked foods, there is high demand for breads, this makes it very lucrative to start, you can make anywhere between N500,000 to N1,000,000 weekly/monthly depending on a economic conditions and your city of operation
When it comes to bakery, there is a misconception that it is about break making alone, but it also involves cake, snacks and others
List of Required Equipments for Bakery
- Freezers and refrigerators
- Food prep equipment.
- Dough Mixer
- Tabletop Slicer
- Dough divider and moulder
- Pans and slicer
- Dough Tables
- And much more
How much you need to start?
This depends on the scale of bakery you want to start, you will need at least N500,000 to 1 million naira to start a standard bakery and this amount can be higher depending on inflation. Bakery business is capital intensive, during your personal research you will discover the appropriate amount you need to start
Challenges Confronting Bakery Industry in Nigeria
- Low Profit Margin: You are likely to deal with low margins and this is caused by persistent high inflation
- Increase Competition: The number of bakeries have increased in recent times and you will be confronted with this especially if you are top commercial cities like Lagos, Abuja, Port Harcourt etc, too much competition reduces profit and sales volume.
- Poor Business Environment: No doubt, it is a common knowledge that doing business in Nigeria is tough due to poor infrastructure, high inflation, double taxation and no government support.
- Reduce Income Level: There is high level of inflation and this has reduced the income level of the people and couple with the recent increase in the prices of breads all over the country has made it difficult for people to keep buying as it used to be, this is a major hindrance to the survival of the business
Starting A Bakery business: Step by step guide
- Develop or get a Business Plan
Just like every business, you need to plan adequately and the best way to go about this is by writing a bakery business plan or hiring a consultant to help you with a solid one, you can order a Standard Bakery Business Plan with 3 Years Financial Projections
A business plan will help you with every aspect of the business and prevent known pitfalls
- Register your Business
You must register your business with CAC before starting, it is illegal to do business in any country without government approval
- Get a good Location
Your bakery must be located in a serene environment and this is important since you are into food business, you also need a good location for easy access by customers, the ideal place for a bakery is a commercial area.
- Hire Workers
Except you want to start a homebased bakery, you need to hire to employ competent workers if you plan to start a standard bakery
- Get the Required Approvals
Apart from registering your business, you need other permits and approvals and most importantly, is NAFDAC approval including local government permit, you must also register with industry body like the Association of Master Bread Bakers
- Get Suppliers
And last but not the least, buy your raw materials from reputable supplies only to avoid having issues with the quality of your baked products
A bakery will always remain profitable due to the daily bread and other baked products, this can open doors to endless cash flow and to run a successful bakery business you need a solid plan to guide you in order to avoid the common pitfalls that confront businesses. If you have any question, drop in the comment section below and we will respond soon.