Cement block business in Nigeria is becoming increasingly feasible and profitable, especially with new inventions that are currently in fashion. In both urban and rural locations, it is a thriving company that attracts customers.
Ask an average Nigerian about the cement block business. If you listen long enough, these 2 lines will probably reflect in his perspective.
- It takes too much capital to start one [capital intensive]
- It’s meant only for insiders like building contractors
cement block business in Nigeria
Ask a woke Nigerian about block industry business, if you listen long enough, these 2 lines will probably reflect in his perspective
- It takes too much capital to start one [capital intensive]
- It’s meant only for insider like building contractors
Well, therefore, I have taken the time to consult my uncle, who runs a successful cement block business, to squeeze out enough insights that’ll quickly get you off the ground if you really hold this business in high regards
Without further ado, let start with things you need to do to kick start a successful cement block industry business in Nigeria
5 Factors to consider when setting up your block industry business
Market research
Reaching out to an expert or a practitioner for roadmap [insight, advice], it’s like printing a solid blueprint for your business, the rest is how badly you want more success in the business in question afterward
Now, look around. People are constructing churches, mosques, shopping plazas, offices, homes. Likewise, renovation that calls for either a few cement blocks attachment or another structure entirely around the existing building.
Your cement block business has already taken a huge downturn right before you start when you don't bring consumers into the picture
Ensure your intended spot is closer to new sites. This way, your customers won’t look elsewhere while sourcing for their project materials.
There’s high demand for cement blocks in new and underdeveloped communities than in residential or commercial parts of the city
Location
Your market research work hand in hand with your intended cement block factory location
When sourcing for your factory sweet spot, consider the availability of constant water supply
A borehole is the most reliable source, as block industry requires abundant water to enhance production and quality
Otherwise, you might incur exorbitant operating costs every working day via purchasing water
You also want a spacious spot for your blocks, block industry should have enough space for sands, cement, little office alongside vast land for spaced-out blocks and quick drying
Lastly, you won’t regret siting your factory off a waterlogged area to prevent an unprecedented financial storm
Cement block industry registration
Many cement block industries ignore this approach and end up losing access to high-profile establishment or government contract
Meanwhile, the aforementioned categories are establishments that don’t just keep records but also want a legitimate document that backs every expense made in the company
When your cement block industry letter headed paper doesn’t have that unique code assigned to a registered business or services, your proposal may not even stand a chance to earn a review but also trashed for the next factory that mean serious business
Get your current block industry registered with the corporate affairs commission [CAC] to officially create the standard impression you want for your business in the eyes of authority, learned or informed customers
Also Read: How to start a successful business in Nigeria and the legal requirements
Block standard
When the required ratio of cement, sand, and water has been mixed up, endeavor to add color-changing agents like granite {stone dust} or cement, so their color can easily dominate the mixture
This is to ensure your block reflects enough cement after molding. This way you won’t only create a quality cement block impression in your customer’s mind but also earn more potential customers for your business when your blocks have a cement-like appearance.
Remember, these customers in question are the lifeblood of your block industry.
When you forget this, you might trigger a catastrophe.
Always put quality first before cutting cost with marketing gimmicks or you can as well apply both.
Cement block quantity per order
Most customers struggle to get every penny for their housing project.
All they think of when the need to start their project arises is to quickly push the money into your bank account.
Now, imagine ending the call with, ‘We’re sorry we can’t fulfill the stated amount of blocks you just placed an order for”
Unless they’re your relative, their next thought is not paying in advance until you meet the target, but “My dear why don’t we give the next block industry a try, besides they’re very closer to our site also, oh! You’re right”
Boom!!! This is how you just tossed a potential customer to the next factory for nothing.
A block-molding machine will save your business a lot from this type of ordeal than a manual molding machine, more about this in the next section.
Also Read: How to Start a very Lucrative Poultry Farming in Nigeria
What are the things you need to start up a successful cement block business in Nigeria?
Land
The land is the most crucial to be factored into the cement block business as it houses and determines so much activity in the industry
So, you need a piece of land measuring [600-800 sq m] at a start before you possess enough cash to enlarge the coast
Being said, new or underdeveloped areas should beat down the value of your intended plot of land as it’s still far from commercial or residential spot that attracts heavy tag
So, it’s most advisable to buy the land at once
However, if it’ll eat too much into your budget for setting up your cement block business, then you should either partner with the owner or rent it for a reasonable fee
Also Read: How Business Directory Can Increase Your Profit
Roof/shed
A small shed for your molding machine will go a long way to prevent impairing the condition of your machine
Also, you need a small office to welcome your guest, likewise, keeping tools.
You don’t need luxury roofing while starting out, as your primary focus should be production, then you can take the rest up from there from adornment to adding up more tools and machines as the profit flows in
Cement Block molding machine
Molding block manually stress not only your workers but also take a massive toll on your daily output or production, thus increasing wages with more workers doing less, unless you want to keep disappointing or losing potential customers
Block molding machine can mold a little over 5000 blocks per day
Just one is enough if your factory workers only take Sunday off through the entire year, especially when you have vast area of land to store molded blocks
Besides, your block shouldn’t stay so long without potential buyers when they sight/hear you made them up with a block molding machine, as it builds more trust and portrays the impression of the standard block, for its ability to compress block than a manual molder
Lister/diesel generator
You obviously need an electric source to power your molding machine
A used lister generator should set you back for #200,000-#250,000
It’s the most desirable electric generator used by most cement block operators
Water supply
You need an abundant water supply for your block industry to mold and also stimulate block intensity after molding
The 2 common water sources in Nigeria for cement block business are borehole and well
Therefore, whichever source your budget fits into will be a great investment in the long run
Wooden pallets
A carpenter can construct your wooden pallets for a bargain-basement price, as it’s not that fancy equipment but created only in mind to mold a cement block on, and for carrying blocks to the drying spots
Other equipment
Spade, shovel, wheelbarrow, water hose, and headpan, can’t be sidelined
Building material shop has these tools in various models, sizes, and prices
Shop according to your cement block factory workforce
Workers
You can’t do this all by yourself but without the aid of employees
Hire skillful and physically able employees for molding and loading up supply vehicles
While a cheerful and intelligent office assistant would be of great investment when your cement block business get off the ground completely
Also Read: 7 Ways To Identify Market Opportunities For a Business Growth
Delivery truck
You know what, I’ll just say no to this on behalf of your pocket
A delivery truck is a necessity in this line of business, but you can rent one whenever there’s an order and chiefly get yours when you’re financially endowed
Block cement business marketing
To increase your cement block business success, you have to learn how to network with people
You have to learn how to network with building contractors and bricklayers
By doing this, you multiply your chances of getting regular patrons and also creating a market for your cement block on a huge scale
Also, never forget to list your cement block business on effective business directories for more exposure on the web/internet
Conclusion
You can get a fairly used diesel/lister generator for as low as #200,000 and molding block for #150,000-#200,000 which are the 2 most expensive tools you’ll need for this business, the rest could be leased [land, delivery truck] until you’re flamboyant enough to outrightly add them to your establishment
Oh, did I mention you need to dig a well in your block industry, while I can’t guarantee the depth of your block industry well, which is literally the pointer to your quotation, I’d recommend setting #150,000 aside for this
However, you should always focus more on what you stand to gain
A bag of cement can produce around 35-40 [9 inches] and 50-55 [6 inches] respectively
The average price of vibrated hollow block sells for #300 [9 inches], #250 [6 inches] each made out of #4,500 bag of cement
Shall we do a little calculation?
#300 X 40 blocks = #12,000 off 9 inches
#250 X 55 blocks = #13,750 off 6 inches
All from a bag of cement, where few laborers can produce average numbers of 5000 blocks or more per day, how much are you paying these guys for such figures, it’s kind of funny to state an average you should allocate to each of them off your profit
I’ll just say get your head in the game first and see what you can do for your workers, as the ball will be in your court by then. Treat them right anyway
See you at the top!
