11b, Reverend Ogunbiyi Street, GRA, Ikeja, Lagos

HOW TO START A BAKERY BUSINESS IN NIGERIA

Everyone loves freshly baked bread. When you’re hungry it’s easily accessible, quick to get and relatively inexpensive. This is why it remains a favorite in a lot of Nigerian homes.  Knowing this, one could quickly tap into this opportunity and start a bakery in Nigeria, as a business venture.

When considering what business venture to go into, products and services that are in high demand, like bread, should get top consideration, because there’s a ready market waiting for them. Lagosians eat 10 million loaves of bread every day!

You could make a lot of profit from a bakery business as long as you’ve got your capital ready.

WHAT RISKS COULD YOU POSSIBLY ENCOUNTER IN A BAKERY BUSINESS?

Oops! Your bread could accidentally get burnt.

Get smoke detectors all around your bakery, because workers could make mistakes, and it could cost you a whole lot of money.

There could be spoilage.

A baker would be the one to bear cost of spoilage if some retailers don’t store and sell the bread as quick as they should, and return it back when it grows mold. When this happens to a lot of stock; that’s a whole lot of money gone.

The price of raw materials could go up.

Some of the time, the prices of inputs like flour could suddenly rise. You may have to buy at a higher price and still sell a loaf of bread at the same price, because increased prices could discourage customers.

You could get harassed by the police.

As bread is a readymade fast food, the police could stop your supply vehicle on the road sometimes and demand that you give them bread. Even though you aren’t under any obligation to give them, you probably might give in out of the fear of victimization. If you keep doing that, how many loaves of bread you would have lost to the Police, Road Safety, LASTMA, etc.?

There’s the possibility of theft too.

Theft by staff, visitors, street urchins, etc. could happen and reduce profit for you.

WHAT EXACTLY DO YOU NEED TO DO TO START THIS BUSINESS?

  1. Go and learn baking first hand from a professional baker.
  2. Prepare a good business plan
  3. Source for funds. It’s a capital intensive business so you’ll need a lot of startup capital.
  4. Budget seven to twelve months working expenses before you start making profit.
  5. Choose a good location that is easily accessible to retailers and is close to your raw material suppliers.
  6. Build a standard factory that meets NAFDAC approval requirements.

WHAT EQUIPMENTS DO YOU NEED TO GET?

  1. Industrial baking ovens, large enough to bake commercial quantities.
  2. Flour mixers (could be manual or electric)
  3. Slicing machines to slice the baked bread.
  4. Baking pans according to your specifications.
  5. Branded bread wrappers
  6. KVA Generators (We’re in Nigeria, so you’ll definitely need electricity backup.
  7. Supply truck to market and deliver the bread produced.

As much as you can, please try and meet international standards in your bakery business. As tempting as it could be, try not to replace sugar with alternatives that are cheaper but unhealthy, like saccharin.

Remember, before you start out, you’ll need to get approval from the regulatory body in charge of food and drugs in Nigeria, which is NAFDAC.

Do you have any further suggestions and ideas? Please share with us. We would love to hear them.

 

Related Posts

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: