How To Start A Bread Bakery Business In Nigeria Today

Image depicting A Bread Bakery Business

Bread is one of the most popular foods in Nigerian homes and bread bakery business is a very lucrative business that has enriched most of its operators till date in Nigeria and the world at large.

Bread when combined with bean cake or bread and tea alone is a known breakfast and sometimes dinner in many homes around the world and Nigeria especially. I will take my house for example, bread and tea has become the norm every morning.

In this article, I will be explaining in layman terms the processes involved on how you can start a bread bakery business in Nigeria and make it a success. Even though there are so many bakeries today and breads spread all over, its demand continues to be on the increase and shows no sign of slowing down.

How To Start A Bread Bakery Business In Nigeria

  1. Undergo Training

The first you should if you do not have an idea of how the bread bakery industry operates is to get trained. You could for a bakery business around you and apply to work, or find a way of meeting with the top management and tell them you want to undergo training. For the right fee they will train you and expose you to all the things you need to know on the inside.

  1. Business Plan

Like every other startup business or even existing business, having a business plan is a must if you want your business to succeed. Your business plan allows you to evaluate the strength, opportunities, weakness and threats that could affect your business and to properly identify the stage you are in at any point in time.

A proper business plan will also include how you intend to source for funds from potential investors if you do not have a high capital base, bearing in mind that starting up a bread bakery business is capital intensive.

  1. Location

When choosing a location for your bread bakery business, ensure that it has proximity to the market and easily accessible by foot as this is the means that most retailers make use of. In choosing a location, do a quick survey of the kind of people living around, their level income, are they mostly families, single people or students? And availability of labor and man power. If you can answer all these questions correctly then you are one step closer to choosing the right location.

  1. Recruit Experienced Workers

For your bread bakery business to succeed right from startup, you will need the best and experienced hands working with you. “A customer is king” and “an experienced worker(s) is queen”. This simply means that to grow your business and keep your customers satisfied, you will need professionals with good customer relations and people who are ready to meet the business goals.

  1. Baking Equipment And Raw Materials

Equipment: The size type, number and quality of equipment will depend on the amount of bread you intend to produce and the amount of capital you have budgeted for it in your business plan. You will be a:

  • Baking oven
  • Flour mixer
  • Slicing machine
  • Baking pans
  • Weighing scale
  • Milling machine
  • Branded bread wrapper
  • KVA Generator
  • Supply truck

Raw Materials:

  • Flour
  • Yeast
  • Sweetener
  • Treated Water
  • Salt
  • Eggs
  • Fat

Register Your Bread Bakery Business With Corporate Affairs Commission (CAC)

It is a wise decision for every business owner or entrepreneur to register their business with the Corporate Affairs Commission. Like I pointed it in one of my articles, so many people are operating their businesses by names that have been registered by others. The price for reserving a business name is N500 while registration of business name cost N10,000, according to the current price on their website. The commission has made registration easy by providing an online platform for it. Simply visit (www.new.cac.gov.ng).

Register and Get NAFDAC Approval

As the saying goes, safety first before profit. Bread is something that is edible and you cannot afford to compromise the well-being of those who will be eating your bread. To easily get NAFDAC approval ensure that your bread factory is always clean and well kept, have a quality control lab with professionals working for you.

Marketing And Delivery Of Your Bread

What is the essence of having a business if you have no one to patronize it? You need to put your bread business in front of the right people and turn them to customers and potential customers. Your potential customers must see a reason why they should leave the bread they have been buying and start buying yours.

You should already have a clear marketing plan if you want your business to be successful. You make use of radio, television and even pamphlets for advertisements.

Bread Baking Business Risk Analysis

There is a saying that “life itself is a risk”, therefore there is hardly any business or anything that one does that does not have an atom of risk in it. Below are possible risks you could encounter:

  • Spoilage

Breads could get spoilt in when they don’t get sold on time; this is usually a challenge for new bread bakeries. If you start a new bread bakery and you do not have enough customers at startup, you want to produce less bread per day to avoid spoilage.

Another scenario could be the case where you or your workers happen to leave the bread in the oven for a longer period of time than it is supposed to stay, thereby resulting in the bread getting burnt.

  • Fluctuation in price

Like every other business, it possible for prices to fluctuate and affect your bread business. Assuming there is an increase in the price of flour which is a major ingredient in the production of your bread, you want to also increase the price of bread so as to be able to meet up with production and overhead costs.

Some customers could frown at the increase in price not minding the fact that there is an increase in production cost.

  • Fire outbreak

Fire is usually the biggest disaster that could happen to any bakery business, which could occur as a result of carelessness by workers or machine malfunction.

To prevent this, it is advisable that you install smoke detectors in your bakery and also buy fire extinguishers and place strategic points.

Conclusion

When you start your bread bakery business with all the right variables in place (proper market survey, business plan, good location and quality equipment) your bread business will sure be destined for success. The only difficult phase is usually to start, once you start well, you will be glad you did.

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Daniel

Daniel is a Chemical Engineering graduate, his passion for research, writing and sharing ideas led to the creation of this blog.

2 Responses

  1. Gaurav says:

    Hi Daniel,
    very nice article, keep up the good work.

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