How To Start a Bakery Business in Nigeria
When the verb “baking” is used in statements, many people’s minds quickly rush to bread. It is, however, erroneous for you to limit baking to only bread. Baking is not only limited to bread as many other confectioneries and snacks such as meat pie, fish roll and buns are also involved in the act of baking.
However, the most consumed baked commodity is bread and that is why a bread-answer for baking should not be ruled out. In Nigeria today, there are many business ideas and many business outfits are springing up almost on monthly basis. How to start a bakery business in Nigeria is one question that has been on the lips of many entrepreneurs.
Bakery is one of such businesses and it is not surprising that as many as 3 bakeries can be found in the streets of Nigeria. What led to this is not far from the fact that bread being the most consumed baked product is widely accepted in many homes. Reports have it that about ten million loaves of bread and about six million loaves of bread are consumed on daily basis in Lagos and Cross River States respectively.
Whether this assertion is true or exaggerated, the fact remains that bread and any other confectioneries are highly sought after. On the part of meat pie, Nigerians tend to take it as a snack and others upgrade theirs by taking it down with drinks.
HOW TO START A BAKERY BUSINESS IN NIGERIA
The profitability of bakeries is quite enormous and that is why there is a constant increase in the number of bakeries in the country. Whether you are a baker or you wish to learn how to bake, it is only a matter before the thought of starting your own bakery creeps into your thoughts.
Starting a bakery business and any business, in general, is quite a herculean task and in a country as Nigeria, the risks involved are quite numerous and many bakeries have been forced out of business on account of this. However, you should not be deterred as a right approach to the business will yield you meaningful profit while keeping you relevant for a long time.
If you’re looking for the steps to take in floating a bakery in Nigeria, the tips to be provided herein will go an extra mile in helping you achieve that. Even if you’re not yet interested, the insight given here will guide you when you eventually wish to start. You’re now presented with the tips on how to start a bakery business in Nigeria.
The first step, I believe, towards the establishment of any business in general and a bakery business, in particular, is the mindset. Most businesses were floated on the basis of profit and when this wasn’t realized or when the expected profit wasn’t forthcoming, such businesses are likely to fold.
When considering how to start a bakery business in Nigeria, you should pause and pose pertinent questions to yourself. Are you starting your bakery for profit or to add value to the business? Are you establishing a bakery to run down other bakeries or you’re doing so to bring quality to already existing bakeries? Will you force other bakeries out of the market when they compete against you?
The summary here is that the right frame of mind is what will lead you far if you really wish to establish a bakery. Make sure you have passion for the business so that in the event of low turnout, you can still be happy running your business.
Another aspect you should look at if you want to know how to start a bakery business in Nigeria is the location and its proximity to your customer base. It will be foolhardy to establish a bakery in an area that has a low population.
The population isn’t the only factor here because your bakery should be as close as possible to your customers. Have in mind that there are many competitors (bakeries) out there who will be most willing to take over your customers if you don’t act accordingly.
Optionally, you should cite your bakery in a “virgin” location. The implication here is that your bakery should not be situated close to another bakery because this will breed unhealthy competition that might metamorphose to an ugly situation such as loss of customers.
It should be noted that location of any business plays a vital role to its sustainability so make sure your bakery is cited in a good area and the chosen location should not be far from your expected customers.
You cannot beat a child and expect the child to smile. In the same vein, you should you not make attempts at starting a bakery business without having the required funds. Any bakery business in Nigeria no matter its size demands some reasonable amount of capital.
The capital is however influenced by the location. In cities such as Lagos and Port Harcourt, the cost of establishing a bakery business there will be more costly than doing so in Ebonyi and Sokoto States.
Though you can start on a micro scale from the comfort of your home, it is important you extend your reach to a more viable location and this demands capital. While some bakery businesses can be started with half a million, the costs of others are as high as a million or two.
The capital is not limited to the ingredients needed for baking, it also encompasses baking tools, staffing, storage facilities and setting up a suitable building for your bakery. It is important you conduct a feasibility study to determine what it will cost you to start a bakery business.
It is true you need qualified staff to run your bakery business but what if none was forthcoming at the time you needed them? Will you pack up and refuse to operate anymore? Will that signal the end of your bakery business?
That is why you should endeavor to have the baking tips at your fingertips, know them by heart and sing them like a song. If your bakery business must survive, you should not be totally dependent on your staff because there might be eventualities when your staff will desert you.
As the owner of the business, you should master the business and imbibe the different baking approaches. This will leverage you and place you in an enviable position among your staff. Having this in mind will help you set a standard for your bakery business and stick to it with or without a staff.
You can’t just decide to start a bakery without having a basis or niche. Is your bakery to specialize in bread alone or will snacks such as meat pie and buns feature? If you want to know how to start a bakery business in Nigeria, then the choice of what to offer the public through your bakery will help you answer that question.
A well-defined niche will help you reach a consensus on what to expect and what is expected of you. It is true that bread sells fast and is generally accepted in virtually every home but not all bread are accepted. Some families love sliced bread more than the loaf. A feasibility study on these will help you select a niche for your bakery business.
Know Your Customer
The customer, user or consumer is the soul of every business and their choice and interest are placed above every other priority in your business. Do you want to know how to start a bakery business in Nigeria? Do you want to know what is actually expected of you to run your bakery business smoothly in Nigeria?
If these are your interests, then your customer base is one of the right approaches to that. The selection of your customer-base should not be limited to your location; you can also get customers from locations far away from your bakery site but all these depend on your approach.
Most people often mistake the customer-base to be those close to your bakery site. Another school of thought thinks it to be the people who purchase your products. A customer is far from all these perceptions.
The niche you select for your bakery is synonymous with who your customer will be. Some people prefer sliced bread to loaves while others prefer the latter to sliced bread. You should note that your customers can only be defined by their preference. If you have a target audience that is almost at par with each other in terms of their preference, it is only right for you to produce products that will suit both sides.
So if you have majority of the populace demanding for both the sliced and loaf bread, it is left for you to produce same at the right quantity and satisfy their quest. Your customers can only be selected based on their preference and not just by their location.
Your staff or employees are great of great importance and should be in your line of thought if you want to know how to start a bakery business in Nigeria. Your staff can either make or mar your bakery business so you should always treat them right.
The mistake most bakery outfits make is to recruit staff that has little or no knowledge about baking. The idea behind this is to underpay them because they don’t have much idea of what the business entails.
If you really want your bakery business to succeed, you should never have the mindset of reaping from other people’s input. It is pertinent that you employ qualified staff; preferably bakers with vast knowledge. These set of persons if present, will churn out quality products and help move your bakery business forward.
We’ve discussed on some key steps you should take and what you should consider if you want to start a bakery business in Nigeria. The next vital step you should embark on is to register your business or bakery name. This will give your business the relevant presence and also make your business unique because you’re the only one bearing the license to your preferred business name.
The Corporate Affairs Commission (CAC) is the agency vested with the power of registering businesses. You can seek out the requirements and register with the one close to your locale.
You should also endeavor to register your bakery with the Association of Nigerian Bakers. This association provides you the guideline for running the business and possibly, tips on how to scale certain hurdles.
You are also expected to register with the National Agency for Food, Drugs, Administration and Control (NAFDAC). It is true the bread you churn out from your bakery isn’t intended to kill but it is necessary to take precaution by registering with NAFDAC and obtaining a license to operate alongside a NAFDAC number. This will be your shield in the eventuality of adverse effect of the bread from your bakery.
BREAD BAKERY EQUIPMENT IN NIGERIA
You cannot talk about how to start a bakery business in Nigeria and neglect the most relevant tool you need for the business. You need to have the necessary bread bakery equipment for the smooth run of your bakery. If you really want to start a bakery business, certain bread bakery equipment in Nigeria should be purchased.
Bread bakery or baking equipment will help you in baking your desired type of bread whether loaf or sliced. The equipment shall be discussed to give you the insight you need on the necessary tools you should purchase for your bakery. These are some bread bakery equipment in Nigeria that your bakery should have:
The first thing that calls to mind is where the equipment will be stored. It wouldn’t be wise to keep your bread bakery equipment outside so there should be enough space to contain them. This space can be a spacious room or a hall. Whichever one you choose, make sure it can contain the equipment you’ll need.
The housing should also be carpeted or if you have enough finance, tile it. The baking room should be neat and this is the idea here. It should be spacious to contain both the bakery equipment and the storage.
The tables are for kneading the dough and mixing the flour. It is also the first port where the baked bread will touch before being shipped out for sale or stored for the future. You’ll need about 3 long tables for a start and this can be increased as the business progresses.
Bread literally needs coaching and the baking pan is here to give your bread the desired shape you want. There are many baking pans out there and each is vested with the function of molding bread into different shapes. There are baking pans for sliced bread and the loaf equivalent just as there are other baking pans for other bread shapes. You should identify the baking pan that suits your preferred bread shape and purchases same.
If you don’t want your bread to have different tastes, it is important you take an accurate measurement. Most times, some bread we purchase has many flavors to one part than the other. This does not augur well for the bakery that produced such.
How to start a bakery business in Nigeria is quite easy if you master accuracy in measurement. You should purchase a measuring spoon and cup and use them in their respective scope.
Mixers and Moulders
There are two main mixers you should have in mind when conducting a feasibility study on how to start a bakery business in Nigeria. These are the mixing bowl and mixing machine.
The mixing bowl is often used for the manual aspect of baking but if you really want to carry out a high-profile baking, then the mixing machine is the best choice. There are tendencies of ingredients going their separate way when the mixing bowl is used.
The mixing machine demands you empty every necessary ingredient into it after which it turns them properly into dough.
We’ve gone through the preliminary aspect; what we have here is the secondary aspect of baking. The oven is needed and is the primary channel for producing your bread. The oven is where you empty the mixed flour or dough into for the final processing.
There are different ovens for different bread. Some bread are baked with a higher degree than others and thus, there are special ovens for this. There are 4 feet by 8 feet and 6 feet by 8 feet ovens likewise other ovens that abound.
Ovens are also chosen based on the number of steps they have. Some have 3 steps and others have as high as 5 steps. The number of steps available on an oven determines its loading capacity and the loading capacity, in turn, determines the quantity of dough that can be baked in it at a go.
To prevent dough from burning, it is advisable to add some butter to it and this where the pastry brush comes in. The pastry brush is used to apply some ingredients to dough while being baked. It is also used to brush off stains from the finished bread before consumption.
Whisks and Wooden Spoons
You’ll certainly need eggs for your dough. Whisks are therefore bread bakery equipment you should have in your bakery. Whisks are mostly used to “beat” your eggs into suitable foamy nature before being mixed alongside other ingredients.
HOW MUCH DOES IT COST TO START A BAKERY IN NIGERIA
If you want to know how to start a bakery business in Nigeria, there is a need that you consider the cost of the business. The cost of starting a bakery business in Nigeria is not easily ascertained. The question: how much does it cost to start a bakery in Nigeria is always on the mind of everyone that wishes to start a bakery business.
Some peg the figure at half a million while others suggest about two million. What you should know is that the cost of starting a bakery in Nigeria is greatly influenced by pertinent factors such as your location, bakery niche and equipment.
Though the cost of starting a bakery in some locations might be cheap, starting same in another location might be high or even lower than the other location. Factors that demand much finance in the bakery business are the facilities and the equipment.
You might be forced to set up a new building for your bakery if running same from your home might not be accepted by agencies such as NAFDAC. Some bakery equipment such as ovens and mixing machines are very costly and this is more reason why you should set apart enough finance if you really want to know how to start a bakery business in Nigeria.
If you’re battling with the question of how much does it cost to start a bakery in Nigeria, the tips given above will provide you the insight to the possible amount to be expected in starting a bakery business.
There are many businesses you can engage in Nigeria but the bakery business is one business that always flourishes despite the economic downturn. How to start a bakery business in Nigeria has been a topical issue and it is hoped that the information provided in this guide will help you launch your bakery business sooner.