Spread the love

If you’ve ever thought of beginning a bakery business in Nigeria, collect right here. The bakery business is a really profitable business as a result of it meets the day by day wants of individuals. The meals business is without doubt one of the fastest-growing industries on this planet therefore, contemplating a bakery business isn’t misplaced.

See Also: How To Start An E-Commerce Business In Nigeria

If you have got culinary abilities and wish to discover ways to commercialise it to a big market, you’re in the precise place. Also, the bakery business isn’t just for individuals with culinary backgrounds. There are a number of individuals within the business with no culinary abilities and are doing remarkably nicely.

This article covers all it’s worthwhile to learn about beginning and operating a profitable bakery business. To begin, you’ll need some planning and entrepreneurial data, all of which can be coated on this article.

Before beginning any business, you will need to have an summary of what you’ll need and the prices. A typical bakery requires loads of startup prices once you issue within the tools, supplies, labor, and lease. Generally, when evaluating the startup prices, it is best to embody the price of the next:

See Also: How To Start A Poultry Farming Business In Nigeria

How To Start A Bakery Business In Nigeria

Step One: Decide The Type Of Bakery You Want To Open

Bakery business is broad and you’ll need to pick out a distinct segment for your self. There are bakeries that concentrate on the sale of baked bread, some deal with cake baking, some sandwiches, and many others. You can both begin a retail or wholesale bakery.

Learn concerning the two kinds of bakeries under.

a. Retail Bakeries

Most bakeries fall beneath retail bakeries. Just just like the title implies, these working retail bakeries promote baked meals on to their prospects.

Below are among the retail bakeries you possibly can choose from:

i. Traditional Bakeries

These bakeries specialises within the baking of biscuits, bread, and many others. For a spot like Nigeria, bread is a quick meals most individuals have of their homes. Starting the baking of bread alone could make you hundreds of thousands of Naira in Nigeria. You could make differing types and flavours of bread; from coconut to butter or chocolate bread. There’s no restrict to the extent of creativity you possibly can put into the baking of bread.

See Also: How To Start Mini Importation Business In Nigeria

Also, you can also make various kinds of cookies and it’ll promote as a result of children and adults love cookies. You can win anytime and any day with a conventional bakery when you can carry your creativity to bear.

ii. Specialty Bakeries

As the title implies, these kinds of bakeries focuses on a specific sort of baked meals. instance of such is cake bakeries. There’s hardly a day of the week with out somebody celebrating a birthday. And, there’s hardly a weekend in Nigeria with out a celebration or celebration happening.

Over the years, we’ve come to find that cake symbolizes celebration and most of the people wish to get a cake for his or her occasions. Without mincing phrases, this can be a excellent area of interest with a ready-made market. Hence, this can be a nice solution to start your bakery business.

iii. Pastry Shops

Many individuals are in search of various kinds of snacks they’ll shortly seize within the afternoon. A scrumptious snack paired with a chilly drink is refreshing.

Basically, pastry retailers specialise within the baking of various kinds of snacks; meat pie, egg roll, rooster pie, puff puff, doughnut, sausage roll, and many others. With little capital, you will get a brick and mortar store and set your business up.

See Also: How To Start An Export Business In Nigeria

iv. Bakery Food Trucks/Van

You could have come throughout a bakery van sooner or later. So, moderately than getting a brick and mortar retailer, you will get a van to promote various kinds of baked meals resembling bread, truffles, and many others.

This sort of bakery is profitable as a result of you aren’t caught at a specific location. You can at all times drive your van to any location the place you will discover your audience.

v. Home Bakeries

This is one other sort of bakery that’s progressively gaining floor. In an period the place each business goes on-line, you possibly can perform all baking procedures in your kitchen and promote them off on-line.

This is reasonable to begin since you don’t must spend a lot on establishing the business. The solely factor you want is to buy the wanted elements to bake your delicacies.

vi. Bakery Cafe

This bakery affords extra than simply baked meals. They go a little bit additional so as to add espresso and tea to their choices. Basically, a bakery cafe affords bread and different pastries with espresso and tea. In this sort of bakery, there’s a eating desk the place individuals can sit to have their meals.

See Also: How To Start A Cleaning Service Company In Nigeria

b. Wholesale Bakeries

The wholesale bakery is one other sort of bakery and in contrast to the retail bakeries, they cater to a bigger buyer base. They promote on to retailers who in flip promote to the ultimate customers.

Once you’ve chosen the area of interest you wish to specialize in and the kind of product you wish to promote, you possibly can then transfer to the subsequent step

Step Two: Register Your Business With CAC

The first step to structuring your business in Nigeria is to get it registered with CAC. Most occasions, unregistered companies discover it tough to construct belief with potential shoppers. With as little as N20,000, you will get your bakery business registered with CAC.

You can both register it your self or pay an skilled to do it for you. One of the trusted companies that may assist together with your registration is ReDahlia, no matter your location, your business can be registered and delivered to you.

See Also: Benefits of Registering Your Business With CAC

Step Three: Draft A Business Plan

The subsequent step is to draft a business plan that highlights the objectives and aims of the business and how you can obtain them. Typically, an excellent business plan ought to include the next:

a. Executive Summary
b. Enterprise Description
c. Product or Service Description
d. Industry Analysis
e. SWOT Analysis
f. Market Research
g. Financial Projections
h. Appendix

A strong business plan might help you safe funding from investors or venture capitalists

See Also: How To Write A Business Plan Step By Step For Your Business

Step Four: List Out The Equipment You Need To Start Your Bakery Business

It is extremely advisable that you’ve got expertise with baking earlier than beginning this business. Either you have got been educated or have labored in a bakery. You can not substitute uncooked data on this business. Otherwise, you possibly can rent somebody who’s educated on this subject.

Usually, a bakery ought to have the next gadgets:

  1. Mixers
  2. Oven
  3. Dough proofer
  4. Bakeware
  5. Refrigerator
  6. Wood Top Work Table
  7. Proof containers
  8. Racks and baking sheets
  9. Sinks
  10. Flour Sifters
  11. Trays
  12. Miscellaneous

See Also: How To Start A Wholesale Distribution Business

Step Five: Rent A Space For Your Bakery Business

The sort of house you’ll want will largely rely on the kind of bakery you’re beginning. For occasion, if you’re beginning a van bakery, you’ll must buy a van and doubtless rent a driver for it.

On the opposite hand, if you’re beginning a house bakery, which is an effective solution to begin, chances are you’ll not want a big bodily house aside from your private home kitchen. The on-line house and a supply firm will assist to get your product to your prospects.

But, if you’re beginning a conventional bakery or pastry store, you possibly can go for a industrial house. Rent a property and get the mandatory lease settlement signed. Before signing your lease settlement, learn by means of or get the service of a lawyer to make sure that no matter you’re signing doesn’t harm your business in the long term.

In addition, select a location that brings you nearer to your audience. A busy atmosphere the place there may be excessive foot visitors isn’t a foul thought.

See Also: 12 Eco-Friendly Business Ideas That Can Make You Wealthy.

Other issues it’s worthwhile to contemplate when renting an area embody:

Also pay attention to the next when selecting an area

See Also: 12 Online Business Ideas That You Can Start From Home And Become Rich

Step Six: Research The Relevant Licenses, Permits And Regulations

Running a bakery business is most occasions in comparison with operating a fast-food firm. Hence, the laws might be heavy typically. Apart from registration with CAC as mentioned earlier, you’ll need to register with related associations such because the Association of Master Bread Bakers (AMBB) in your native authorities space.

Also, thorough inspection of your location can be carried out by the Association of Master Bread Bakers and The National Agency for Food and Drug Administration and Control (NAFDAC).

Usually, the inspection and approval of NAFDAC take between 6 months to 1 12 months however the Association of Master Bread Bakers is steady for so long as the bakery exists.

Additionally, you’ll want to supply the main points of your suppliers to
NAFDAC and AMBB as a result of they wish to guarantee you’re utilizing customary tools on your productions.

Remember to analysis if there are different laws except for those talked about right here. This will principally rely in your location.

See Also: 10 Business Ideas To Start With 100K In Nigeria That Will Make You Millions

Step Seven: Hire And Train Staff

The measurement of your bakery will decide the variety of workers to make use of. If you’re operating a regular bakery, as an illustration, chances are you’ll must make use of a front-end personnel that may settle for orders, then two or extra individuals which have formal coaching or bakery expertise to supervise the precise baking.

In addition, chances are you’ll wish to rent some personnel to deal with the dishwashing, mixing of elements, product packaging, and different menial jobs within the bakery.

See Also: Business Plan Sample For Small Business Owners To Follow

Step Eight: Market And Grow Your Bakery Business

The goal of each business is to develop and stay worthwhile. There is a necessity for an excellent advertising and marketing technique in order for you your business to be found by potential shoppers. Both new and current companies want strong advertising and marketing plan to outlive.

While drafting your business plan, you need to have accomplished your market analysis and this could function a information so that you can comply with. Additionally, there are advertising and marketing businesses whose job it’s to promote your business to your audience.

But, when you can not afford a advertising and marketing company, you possibly can appeal to your potential shoppers by means of these examined and trusted channels.

a. Word of mouth advertising and marketing
b. Social media promoting
c. Sharing of flyers, handbills, and posters
d. Pay-per-click advertising and marketing
e. Email marketing
f. Website
g. Referral/affiliate applications
h. Reviews/testimonials collation
i. Get listed on related directories

See Also: How To Optimise Your Customer Experience Using Social Media And Boost Revenue

Threat To The Bakery Industry

1. People Are Becoming More Health Conscious

We are in an period the place customers are starting to be extra well being aware, and lots of are demanding for extra gluten-free, low carbohydrate, complete grain, and natural meals.

Many are substituting baked items with nuts, yoghurt, and fruit bars. Hence, bakers ought to issue these of their plan. You can have a bit for wholesome baked meals for health-conscious individuals or these watching their weight.

See Also: Importance Of Safeguarding Your Health As An Entrepreneur

2. Profit Margin May Be Low

Another menace is that the revenue margins are sometimes fairly small. When you contemplate the labor and utility prices of operating a bakery, there’s a chance that your revenue margins on some merchandise might be beneath 5%.

See Also: 100 Profitable Business Ideas For Aspiring Entrepreneurs And Investors

three. The Cost Of Ingredients Is High

Baking elements are fairly costly and also you’ve acquired to buy these elements earlier than any baked items might be produced. Meanwhile, there’s no assure that you just’ll promote your entire baked items day by day. This is why intense advertising and marketing is a necessity on this line of business.

See Also: 10 Practical Ways To Reduce Business Expenses

Advantages Of A Bakery Business

1. High Traffic Locations Can Make For Easy Profits

If you possibly can reach selecting an excellent location and may bake scrumptious meals, you’re midway to creating enormous earnings. The aroma of baked meals could make anybody really feel hungry and subsequently cease to purchase.

See Also: Proven Way To Validate Your Business Idea With Customers

2. You Can Start Out From Your Home

To begin a bakery business, you don’t essentially must personal an area. But, you’ll nonetheless have to stick to laws and get your license. However, ranging from dwelling will permit you to avoid wasting money and begin with decrease startup capital.

See Also: 10 Top Business Ideas For A Stay-At-Home Mom In Nigeria

three. It Is Easy To Gain Customers

Practically, if individuals strive your baked meals they usually take pleasure in it, they may return and likewise inform others about it. As an increasing number of individuals strive your baked meals, the extra your buyer base will hold growing.

See Also: 21 Ways To Acquire New Customers For Your Small Business

In conclusion, it’s no hidden proven fact that the bakery business is without doubt one of the profitable companies anybody can begin. Needless to say, the demand for baked merchandise will at all times be on the rise, and so will the necessity for bakeries. If you have an interest in beginning a bakery business, the very best time to begin is now!

Do you run a bakery business? Are you considering of beginning a bakery business? We will prefer to learn your insights within the feedback. Also, attain us if it’s worthwhile to develop your business model on your bakery business.

Are you doing something amazing in your industry and you want the world to hear about it? Reach out to us today to put your business on the world map.

To hold observe of our actions, comply with us on Instagram

The submit Bakery Business – How To Start A Successful Bakery Business In Nigeria appeared first on Entrepreneurs In Nigeria.

Leave a Reply