The most common misconception about the bakery business is, “never go into that business if your bank account is not overflowing, for real”?
I wonder if those who patronize and promote this idea ever stepped or pass their favorite loaf bakeries by, let alone inquire if these business owners ever started out big
The most common misconception about bakery business is, “never go into that business if your bank account is not overflowing, for real”?
I wonder if those who patronize and promote this idea ever stepped or pass their favourite loaf bakeries by, let alone inquire if these business owners ever started out big
Bakery business requires 3 crucial factors [capital, equipment, and material]
Anything outside the trio has weak stringent against your accomplishment in this line of business
Now, imagine where location and season are not a barrier. All you need is sufficient capital and years of bakery business experience broken down into a few words guide.
See you at the end of the blueprint!
| Table of contents |
Things you need to do to set up a successful bakery business In Nigeria
Budget
Behind every successful establishment, you’d agree with me that the second question after the business idea is always “how much does it cost”. Sometimes your budget capacity only initiates the business ideas your subconscious can conceive.
So, if you sideline the below-average weekly operating cost, you are probably making a wrong move towards this bakery business
- Cost of production [#350,000]
- Fueling of generator and vehicle [#30,000]
- Cost of labor [#100,000]
- Rent and recurring bills [#20,000]
- Damages and maintenance [#5,000]
Some hidden cost will eventually surface, yet average weekly expenses of [#505,000] should set you up on 100% profit to at least justify the lucrativeness of the business when you go all-in with sufficient capital that offers not only ideal pastry to the market but also reinforces your brand standard
Also Read: 7 Ways To Identify Market Opportunities For a Business Growth
Bakery niche
Bread is the most popular household name in the bakery ecosphere, and this guide is already treated as such
However, there are still other pastries that are not only in high demand as bread but also attract insane returns [pie, buns, chin chin, puff puff, egg rolls]
Whichever route you take as your primary source, ensure getting success with it before venturing into other models to avoid creating more challenges
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Tap into the bakery culture
I still remember when my uncle was starting his bakery. He barely has prior knowledge of culinary or how it works, as someone who has a decent job working as a filling station manager.
He wants more security over his income source by giving the bakery business a shot through an old man, a baker in his late 60s
Despite being less of a cog in my uncle's establishment’s wheel, I was already getting the hang of the production within a month, which is why they say intelligent business owners or entrepreneurs hire those who are smarter than they are
You probably need not to put your business in cold storage for a long time culinary education
I’d recommend going out there, sourcing for a professional baker, discussing your offer alongside your terms, pitch him an attractive offer. \
He’s the last person you want around your factory with a long face.
When you come to a mutual agreement, maybe you can even win him over from his existing job to permanently become your employee
They are all around, just ensure getting the skillful ones, as they won’t only help you come up with special selling proposition but also help cut production cost along the line without impairing your product standard
Also Read: How to Start a very Lucrative Poultry Farming in Nigeria
Bakery location
There’s slight difference between a potential customer and a starving crowd
Both are perfect for every business upliftment, but the latter is every entrepreneur’s prayer.
These sets of people can’t wait the next hour for your product or offer when it’s up for sale
Now, imagine giving these people tough time to access your bakery, when this can save you a lot in advert and transport cost, just as you’d choose the closer or easily accessible vendor to purchase your pastry and bread recipes
You don’t need to choose a high leg traffic spot for your bakery, situated around market or commercial spot as this might cost you more for nothing
Just ensure a good road network links to your location with easy description
Shelter
Do you plan to continue doing this for 10 years or more, or do you plan to scale up and expand the firm as soon as your sales report shows an upward trend?
Then you need to build or secure a befitting building for your bakery business for a myriad of reasons, which NAFDAC registration is obviously one of the impetus of giving an aesthetic structural look to your company
You don’t expect NAFDAC registration officers to hold your business in high regard when you barely have an accommodating office or even have your office beside the heating oven with a repulsive chair for visitors, which is all an absolute turnoff
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Bakery onboarding
Labour is a crucial profit prerequisite in this line of business.
Mobilize enough workers for your bakery and ensure they all work in synergy to avoid the unnecessary drama that may pose significant threat to your establishment.
Also, never forget to treat your employees as you’d want them to treat your best customers
Bakery registration
It’ll cost you less than #20,000 to get your bakery registered with the corporate affairs commission [CAC]
Browse the web for how to register your business with corporate affairs commission or get an agency that helps businesses set it up at a more affordable price
Also, you need to know you may avoid registering your bakery business with an official body for as long as you want or keep bribing your way out of the loop, but it’ll definitely cost you more in the long run
Registering your business with NAFDAC guarantees safe product consumption for consumers, which is a positive signal towards your productivity
Customer’s objection comes from various angles, and you want to counteract this before they notice
Also Read: How to start a successful business in Nigeria and the legal requirements
Marketing
The lifeblood of every business is marketing. If we discuss the importance, we might turn this guide into a novel.
The bakery business is competitive, saturated enough that you sure see multiple brands of bread with a vendor just like every edible in the market
However, this doesn’t mean there’s not already a market for your production, even at a large scale, especially when you had already devised a unique value proposition to edge out your competitors
Bread is always in high demand, I’d recommend starting your supply from vendors with average or little order, then spread your wing far wide into the markets from there, as the chain of your existing customers will absolutely propagate your supply with word-of-mouth marketing, so long you never degrade your bread standard for greed
Come to the market with standard or quality products and see how rapidly you become a household name in the market, thus stimulating your growth to even become a successful bakery business in Africa
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Equipment you need to start a successful bakery business in Nigeria
Baking pans
There’s a unique pan for various bread sizes, ensure getting more than enough as this baking equipment is more prone to damage
It should be properly clean and kept in a tidy place to avoid a blemish on your bread
Heating oven
The traditional heating oven is highly sought after for its affordability
However, an industrial baking oven like the usual stream tube of either 4 feet by 8 feet or 6 feet by 8 feet will save you more money and stress as they accommodate 1 ½ bag of flour, 2 bags even 4 bags of flour at a go
Being said, tube oven is cost-effective for also being powered by firewood when there’s not enough budget for diesel or fuel
Delivery/supply
An efficient van is your bakery business focal point after its delivery purpose to buyers
Cough up enough for spacious one to move more units of a loaf at a go
It saves more time over time while nurturing that sense of reliability in your customers’ mind
Chopping table
For fundamental necessities, they may not be the best, but you should keep in mind that here is where most bakeries conduct most of their work once the flour mixer has collected the quantifiable amount of dough.
Get a sturdy table with ergonomic legs for this task
Sales rep
Each time I sight as little as slice of bread, this woman's picture keeps reverberating in my head. Who is she?
She is my uncle's sales rep. You’d always see these people besides the drivers.
They manage and monitor all transactions between consumers and retailers.
My uncle's sales rep goes beyond the status, also working at the bakery before and after the long day as if she gets extra pay.
She gets some special treatments though, but is it the reason behind all the adoration? Nope.
Above all, this woman is the most loyal staff/worker has ever come across
Remember, they say a leak in the ship can sink the whole vessel and that’s why you need her kind for your bakery business as a sales representative, especially if you have a tight schedule
Heavy-duty generator
You’d agree with me that electric generator is inevitable in bakery line of business from powering your mixer, slicing machine, cooling off baked bread to illuminating the factory with technically positioned light bulbs to enhance swift production
Bread wrapper
Here’s another symbol of your brand, you should have your bread wrappers in abundance alongside your bread labels if you have no branded or custom wrappers at hand
Slicing machine
You are indirectly leaving some money on the table if you stick only to the conventional bread type unless your targeted location or buyers are the rural area inhabitants
Otherwise, consider adding this lucrative innovation [slicing machine] to your equipment
Mixer
Until you get started small, you may never realize there are ways to cut corners with some bakery equipment before possessing a substantial amount of money to put them all in place
A mixer is a machine that mixes all the pastry or bread recipes like flavor, coloring, yeast, sugar, eggs, butter, together for production
However, if you possess a bowl big enough to accommodate the designated dough for the day, your baker can handle the absence of a mixer as long as you’re flamboyant enough to secure one for your bakery business
Also Read: What is your vision? 21 ways to break the barriers
Conclusion
After all the discussion, what are you going to do? I hope you won’t just shove this cupful of knowledge aside like other attempts you’ve probably taken to set up this bread business
Here’s the gist of the content summary:
- Knowing your budget
- Bakery niche
- Tapping into the culture
- Bakery location
- Physical structure
- Onboarding workers
- Registering your bakery
- Marketing your product
- Getting the required tools and equipment in place
All for as low as #500,000- #600,000 capital, then work your way up the ladder of dining with the kings [successful bakery business owners in Nigeria] afterward
See you at the top!
