business plan for bread bakery in nigeria

SAMPLE BREAD AND BAKERY BUSINESS PLAN IN NIGERIA

This SAMPLE BREAD AND BAKERY BUSINESS PLAN IN NIGERIA is useful for apprentices in training, small and medium scale business owners, large scale businesses, accessing Bank Loans, Equity funding and Grants. This business plan can also be used in Proposal Writing, developing Business Concept Notes, understanding industry and market analysis and so on .

FEGEOSTOM produces bread and other backed products such as cake, pastries, pies and in Osogbo, Osun State. Nigeria. We supply to households, offices and retailers. We also offer apprenticeship training and consultancy in the industry.

Mr Akinyemi Femi who started the business is a graduate of Family Nutrition and Consumer Sciences. He has wide experience in the industry having work in one of the most reputable bakeries in Lagos state.

Our goal is to be one of the best three bakery in South West Nigeria. Our equipment are word class and our ovens are specially fabricated to produce a bread so fresh that our market outrun competitors on daily basis.

Our core value is high level neatness throughout the process of production. We already receive approval from the National Food and Drug Control (NAFDAC) Consumer Protection Council (CPC) and other relevant agencies.

We present a meet up with experts in Bakery business in Nigeria facilitated by industry professionals with chains of experience and outstanding achievements. We will take you by the hand through all important steps in this business with up-to-date market knowledge. CLICK HERE FOR MORE

We recruit mostly through the apprenticeship process and invest so much in continuous training of our workers. We are proud to say that we have some of the best bakery professionals in Nigeria.

In Nigeria, the demand for bread and baked product is increasing on a daily basis and this is good news for us who want to extend our market outside Osogbo and other parts of the South West. We have very strong distribution channels that supply fresh backed products on daily basis. We also have a very good online presence on Facebook, twitter and so on

We are known for a unique taste different from other bakery around and this has made our customers always want to come back. As a result of this, our customers are increasing on daily basis.

The financial projection in our feasibility studies shows that we need 25 Million naira for expansion. There is consistent profit margin in the next three production years with positive cashflow.

Our Product and Services

FEGEOSTOM has diversified products that require the same equipment to produce. We also offer consultancy service and a government approved apprenticeship training programme. Our products include:

Bread made from flour, fruits and wheat
Cakes of events and cup size
Pizza and pies
Consultancy Services and
Apprenticeship training

Our Vision Statement

To be among the best three bakeries in the country in the next 6 years.

Our Mission Statement

To provides excellent products, first class customer service, and consistent professionalism.

MARKET ANALYSIS FOR SAMPLE BREAD AND BAKERY BUSINESS PLAN IN NIGERIA

In Nigeria, baking related businesses creates more than 50 Billion Naira average income per year. There are about 5,000 bakeries in the South West alone.

In one of the Nigerian most reliable food research report for 2018, bread and other baked product has been on top of fast food and snacks by volume for the past three consecutive years. Profit remain consistently attractive despite rise in the cost of production especially due to the last recession. Bakery also top the list of employers in the food industry as it generates nearly 53% of employment in the food production sector

Top list of bakery products according to market demand include

Bread (made with flour, wheat and fruit) :45%
Cakes (events and cup size) :25%
Different kinds of Pies: 15 %
Others including pizzas 15%

There is growth forecast of 5% in the market for bread and 2% increase in other baked products in the next five years. This is due to Nigeria economy crawling out of recession, increased minimum wage and innovation in the bakery industry that make products of better quality.

SWOT ANALYSIS FOR SAMPLE BREAD AND BAKERY BUSINESS PLAN IN NIGERIA

Competitive Advantage

We Provide fresh and high-quality bread that can stay for longer time without losing freshness and taste
We have highly professional customer services and maintain customers loyalty
We provide convenience through online order and eCommerce presence

FOR THE FULL DETAILS OF THIS BUSINESS PLAN, BUSINESS MODEL CANVAS, MARKETING PLAN AND FINANCIALS:

Please call our business plan consultants : + 2348147161686

We have a team that can help you write your specific business plans, feasibility studies, Marketing plan, grant application, market research, business brand story and so on.

Contact : + 2348147161686 for details

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Privacy Overview

THIS Bread Bakery BUSINESS PLAN in Nigeria IS REGULARLY UPDATED AND CAN ALSO BE USED FOR BANK LOANS, GRANTS, Business PROPOSAL and FOR COMPETITIONS ETC.

In Nigeria, Bread as we know is a food for all, it’s eaten in homes, sold in fast foods and served not only as breakfast. A bakery is a place where all food made with flour such as bread, cookies, cakes, etc are produced.

Passing by the high demand for bread in Nigeria, a bread bakery business has great odds of success. But the accomplishment and success of the business relies generally on having a good Bakery Feasibility study and sample business plan combined with the right Business skill and experience

If you are planning to start a bakery business in Nigeria, Then first you need to write a business plan, while you might want to excuse the idea of a business plan when starting as not important, I want to remind you that there is a small margin between success and failure when it comes to starting a bread bakery business in Nigeria and you must bear in mind that the Feasibility study and sample business plan is the main authority report that will give you a better advantage in running a lucrative bread bakery business in Nigeria

This bread bakery business plan/feasibility study contains key information about the organization, the business environment, technical requirements, production operation, management analysis, Marketing plan and other key info’s that you need from a bread bakery feasibility study.

TABLE OF CONTENTS FOR THE BREAD BAKERY BUSINESS PLAN IN NIGERIA Pdf

Executive Summary 1 Introduction………… 1.1 Name and address of the company……… 1.2 Name and address of the co-partner………… 1.3 The Objective of the Bakery Business…… 1.4 Mission of the Bakery………………… 1.5 Vision of the Bakery………….………… 2. Description of the venture……………………. 2.1 Considerations of Selecting the Project… 2.2. Location of Project……….. 3. Sources of capita………………… 4. Financial Analysis…………………………… 4.1 Building…………………………… 4.2 Plant machinery and material cost of production…………………… 4.3 Cost of supply………………………………………………………… 4.4 Utility expense…………………………………………… 4.5 Annul cost…………………………………… 5. Market analysis. …….…………..…………………………… 5.1 Market size……………………………… 5.2 Products …………………………… 5.3 Demand forecasting………………………………… 5.4 Project management……………………………………………………… 6. Organizational structure……………..…………………… 7. Major Duties and Responsibilities……………………………..… 8. Financial plane……………………………………… 9. Environmental feasibility…………………………………………………….…………………… 10. Project implementation…………………………………

1.2 Name and address of the co-partner

The best bakery is a partnerships business that will establish in the next year 2025 by the six businessmen in Ikeja city. This business is a basis for the production and distribution of bread. In this area, the idea of establishing this business is penetrating in many owners minds and this is appropriate to establish the business. From the beginning, the business is formed in the form of partnerships with equal capital accumulations. The accumulation capital; used for beginning the business is N500,000 IN which 75% is funded by partners and the remaining 25% is borrowed from other financial institutions as a loan.

Hurry now, Get Your Complete Bakery Business Plan. To place an order, pay N15,000 to

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After payment text, your name and your e-mail address to 07050379285 on WhatsApp or text and you’ll receive your BAKERY BUSINESS PLAN IN NIGERIA PDF / FEASIBILITY STUDY.

It will be sent to your email address after your payment has been confirmed. (Soft copy only)

Marketing Strategies That Will Help You Run A Successful Bread Bakery Business In Nigeria

You may believe that the hardest thing about the baking business is to start. Sure, it takes a lot of effort and you may face hard times and some anxiety. In any case, after you have your bread bakery business going, enduring the opposition(competitors) will turn into your fundamental business concern. Moreover, your goal is not just to stay afloat but to become a go-to place for people looking for delicious pastries. As an entrepreneur, you aim to make a profit in the bakery business. This will require you to handle your finances, reports, and inventories with great care, but there’s a side of the business that is often neglected: Marketing Whatever products your business specializes in, croissants, doughnuts, buns, bread, healthy gluten-free pastries, mini pastries, and so on, you should build a strong marketing and sales strategy for your bakery. Otherwise, it will be challenging to reach new customers, increase bakery sales and brand awareness. EXAMPLES OF MARKETING STRATEGIES TO GROW AND BEAT YOUR BREAD BAKERY BUSINESS COMPETITORS IN NIGERIA 1. Smells Are Free!

Perhaps the lowest barrier to entry when marketing your bakery is something that you’re, most likely, already producing – the scent coming from your delicious baked goods! Any smart baker knows that keeping their doors wide open when the weather allows, gives them free Advertising to consumers who are in the vicinity. The best part is, as long as you’re already baking, it’s completely free to prop open your doors and entice hungry customers with your mouth-watering aroma!

2. Offer Nutrition Information For Your Products

As customers are becoming more and more health-conscious, it’s a smart move to consider providing nutrition information for your bread, pastries, and sweets. According to reports, 61 per cent of U.S. adults use nutrition labels to help manage their weight, and 38 per cent say that labelling products would help them do this more effectively. Additionally, many consumers underestimate the calorie and fat content in foods and attest that they would like to see more nutrition labelling at places where they eat away from the home. So you wanna consider adding the nutrition label of your products when trying to sell. 3. Leverage Instagram Influencer’s Only a few Nigerian entrepreneurs make use of Influencer’s so there is a huge advantage for you if you decide to the root of using an influencer to sell your product. 4. Pay attention to packaging Having beautiful packaging adds an authentic human touch that consumers love, as it sets handmade, local products apart from mass-produced generic offerings. So good packaging and branding of your business should be on your mind and We at NaijaCEO can help you with that

Ready To Start Your Bakery Business In Nigeria Or Africa?

Maybe you dream of opening your own bakery, but you’re still working out the details of how to make that dream a reality. Well we are the leading Business consulting firm in Nigeria and can help you make the process much easier contact us with 07050379285

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Micah Erumaka

About Micah Erumaka

Micah Erumaka is the Founder of LiaonCEM solutions which owns NaijaCEO. He is an Internet Entrepreneur and a content creator. After the failure of his first company at age 18 he started NaijaCEO to help entrepreneurs with the information they need in operating a successful business in Africa

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Bread Bakery Business Plan In Nigeria

Bread Bakery Business plan in Nigeria – In most Nigerian families, one of the most consumed baked items is bread and this is because it is the most sort after. It is almost like a custom to have tea and bread as breakfast before leaving your home in the morning, and for that, bakery business has become a lucrative business .

The demand for bread on the daily basis has made bakery business in Nigeria one of the most rewarding businesses to venture in today. Irrespective of the competition in the industry, you are rest assured that the demand for your bread will be there. However, to successfully set up a business of this statue, you’ll need to get yourself a bread bakery business plan. With the bread bakery business plan, there you have to yourself a document with all the necessary information to set up and run your business.

Uses Of Bread Bakery Business Plan In Nigeria

Here are some of the uses of bread Bakery Business Plan;

BANK LOANS – After getting your business plan or feasibility study, you can go for a loan from any bank issuing loans, or you can apply for loan with it.
GRANTS – There are some government agency that offer grants to entrepreneur who are promising and might succeed, these government grants can as well come as loans.
BUSINESS PROPOSAL – For a new business that requires fund for a start up, you can use this business plan to source for fund, since the information contained inside are well detailed for a bakery business.
COMPETITIONS – This bakery business plan can be used for competitions, there are some competition where the price could help you start up a business of your choice, this feasibility study can help you out.
ACADEMIC STUDIES – This feasibility study can be used for Academic research and seminar presentations.

As stated earlier, bread is a highly demanded product, hence the need to write a business model that will help those who may want to go into bread bakery business. And since the market is large enough to accommodate a large number of bread bakers, you can actually try out your hand in bread making.

Often times I’ve seen people make comparison between breads, take for example, in a town like Abakaliki, there use to be a bread factory that makes Golden star bread, they where the toast of the town, however, as time went on, other bread bakery started coming into the industry, Golden star couldn’t keep up with the innovation, they went into business coma. Today, you have bread like Nwachukwu bread which is considered one of the best in town, although they have stiff competition with Vegas and Roban bread, there are other also making themselves known.

In Enugu, I’ve people say they prefer “Celebrities Bread”, while other will tell you they rather take crunches bread or Citis bread instead of Roban or ShopRite. The choice of bread is all about preference from the customers, and customers make their choice based on the technicality applied in making the bread. Your brand of bread might be what the market need, that is why I stated earlier, that the market is large enough to accommodate your bread bakery business.

Factors to Consider Before Setting Up bread Bread Bakery

To begin with your bread bakery start up, you need a bread bakery business plan, you can write one if you know how to, you also have the option of buying a well written bakery business plan;

Write A Business Plan – A written business plan will help you to identify the things you’ll need for your business. The business plan will describe your business objective, organizational structure, the size and capacity, ownership structure, fund to be invested as well as profit maximization (all things being equal), administrative and management structure which will consist of the number of staff to be employed , these staff will include (i) Managers (ii) Supervisors (iii) Technical staff (iv) Marketers (v) Drivers (vi) Cleaners etc. Getting yourself a business plan will give you an idea on what you need to do.
Market survey – Getting the necessary information on the business, carrying out a survey on the potency of the business in your environment, this should also be one of the information that should be included in your business plan, a market survey tells you of the potential buyers of bread , like I said, every family buys bread and they buy according to their taste and choice, a market survey tells you the type of bread that are in higher demand, it also tells you the sizes, flavor and prices that the customer want.
Register Your Business – The next thing to do is to commence the registration of your business name, the business name differentiates you from other bread bakery in that town, state, region and country at large. A business name, business brand and logo makes it easier for customers to easily recognize your products especially if the product was made with quality.
Branding – Branding is as important as marketing of your products , with branding you can market and advertise your business to the outside world, your brand distinguishes you from others.
Market your Bread bakery business – With marketing, customers know exactly what they are getting. With marketing and advertising you get to tell your customers of the sizes of bread in stock, the flavors you make, you can introduce a new method of bread baking in order to attract customers.
Create and establish a good/reputation – This is one of the biggest advert you can do for your business, if your business is known as one that takes the request of its customers serious, the customers will take you serious in return, you can build your reputation through community service, giveaways, promos etc. These reputation enhancement effort will get you new customers and will make old customers to stay.
Employ Skilled labor – Employing those that will operate the machinery in the bread bakery should be done with all discreetness, selecting capable hands beginning from the management/administrative staff to the cleaners should be done properly, numbering approximately 20 workers at least.
Machinery and equipment for bread baking – There are equipment you must get to commence your bread bakery business, these equipment must be in place, they include the following (i) Spiral mixer = unit cost is N2,200.00 (ii) Proofing chamber = unit cost is N400.00 (iii) Dough Molder = Unit cost is 750.00 (iv) Baking oven (Jumbo size) Complete with 2 Number oil Burner and panel = unit cost is N1,800.00. there are other like the bread slicer, trolleys, trays, dough processors, auxiliary equipment etc..

Note – Price of these equipment are not constant and are subject to depending on the forces of demand and supply.

The BREAD BAKERY BUSINESS PLAN IN NIGERIA feasibility study contains a whole lot of information, among the information contained includes;

Location and facilities – This is very important in setting up your business. I have seen businesses crumble due poor business location. I recommend setting up your business in an area that is easy to locate. Most bread factories that I know have their factory set up in between the market place and residential area. The idea behind this is to maintain close proximity to the customer. When you consider the cost of starting up a small bread bakery in Nigeria, it is important to maximize profit by having your business in an area that is beneficiary to you and your business.
Products/Service – In cities like Lagos, Port Harcout, Abuja, Enugu, one thing I have noticed is the distinct features most bread companies try to portray in their products. This is where size, design, flavors come into play, there are different types of bread out there with different flavors such as chocolate flavor, strawberry flavor, tomato flavor, coconut flavor, etc. As a business you need to understand what your customers prefer the most and prioritize that. Know the flavor, size etc that sells the most. Understand the need of your buyers and ensure you meed them.
Business Strategy – The truth is that bread bakery business is a profitable, the question now is how are you going to make your bakery profitable. You must have spent some good amount of money in getting the equipment needed to start the bread bakery, how do you now make profit. This is where your business strategy comes into play. There are already established bread bakery business in the town, you need to device a means to get your business known. Things like your Bread label, bread size, Bread design, Price, creating awareness are some of the item that must be included in your strategy to growing your business.

MARKETING AND CLIENTS

Target clients – Every product has it’s target audience. In this regard, bread has one of the largest target clients, apart from selling in bulk to the whole sellers or the retailers, you should have the final consumer in your mind, they are the ones that gives review of your product. You need to understand what your target clients need and you need to meet them in order to stay in business.
Key competitors and players – You need to know who you are competing with, how they are running their business, how they have managed to stay in business and are making profit, how they have kept their customer base and are getting new customers as well. Have a proper knowledge of your competition, then you may stand a chance in succeeding in the industry.
Service delivery – Service delivery is very important in this industry, from providing services at events, to making sure you deliver to your clients as schedule. Quality service delivery enhances your business reputation.
Quality assurance – Quality assurance builds trust from your customers. Customers need to understand even without persuasion that whatever product they are getting from you is up to standard. Every bread bakery business must have a standard in quality that their customers can trust, in essence when you eat the bread, even without being told you already know where it is coming from.
Demand/supply analysis – Another aspect of bread production that must not be over looked. Understanding the demand of your product determines the supply. If possible get a data analyst or a business analyst who understands numbers and how important they are to your business. Carry out a proper analysis, the result will help you to make inform decision as regards your business. Most importantly, you get to manage your resources more efficiently.
Technology – Technology has played a huge role in the manufacturing industry in Nigeria, and when one takes about technology in baking bread, bread bakery equipment comes to mind. Make your own research, if possible invite industry experts to do this on your behalf. It is important you get equipment that best suits your business.
Competitive edge – Now you must have had information about the businesses you will be competing with. Take your time to draft where they are lacking, make those areas your edge over them. Having a competitive edge helps you to create a trend in the industry.

MARKETING PLAN FOR THE BAKERY BUSINESS

Market positioning
Service delivery strategy
SWOT analysis

LEGAL, REGULATORY, SOCIAL AND ENVIRONMENT ISSUES

Legal issues
Regulatory issues
Environmental issues

FINANCIAL PLAN FOR THE BREAD BAKERY BUSINESS.

Summary of project cost
Funding plan statement
Funding requirement
Projected income statement
Projected cash-flows statement
Projected Balance sheet
Profitability analysis for the bakery business
Break-even point analysis
General Conclusion and recommendation

Do you want to get a bread bakery business plan in Nigeria Sample? Simply follow the instruction below…

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A Guide on How to Start your Dream Bakery Business in Nigeria

by Counseal Team

Updated December 10, 2023

So, you’re considering launching a bakery business in Nigeria? Excellent choice, my friend.

Nigeria’s love for baked goods, especially bread, cakes, and pastries, is strong and the market is ripe for the taking. Now, starting a bakery business isn’t as simple as baking a cake and selling it. There are various steps you need to follow.

Are you ready to dive in?

This article is your comprehensive guide to starting a successful bakery business in Nigeria.

Let’s get started, shall we?

How much does it cost to start this business?

How much can you make per month, what is the minimum required to start this business, what are the best states to start this business, what are the known examples of this business, understanding the business registration process, dealing with regulatory issues, securing funding, exploring the nigerian market, overcoming infrastructure challenges.

The How-To's of Market Research and Planning
What's in a Location?
The Baker's Toolbox

Where to Source Your Equipment

A list of essential licences and permits, where to get these licences and permits, methods for hiring and training staff, nigerian success stories on hiring and training, unleashing the power of branding.

Going Digital: Your Bakery's New Frontier

Harness the Power of Advertising

Network, network, network, word of mouth: the best form of advertising, learning from the best: case studies, final thoughts, how much does it cost to start a bakery business in nigeria, what are the legal requirements for starting a bakery business in nigeria, what are the best locations for starting a bakery business in nigeria, what are the essential equipment for starting a bakery business in nigeria, how to hire and train staff for a bakery business in nigeria, how to market and promote a bakery business in nigeria, what are the challenges and risks of starting a bakery business in nigeria, quick takes.

The cost of starting a bakery business in Nigeria varies depending on the size and type of bakery. The factors that affect the cost are the location, equipment, materials, staff, and registration. Based on the information from the sources, here are estimates of the cost of starting a bakery business in Nigeria:

A small bakery that produces bread, cakes, and pastries cost between ₦100,000 and ₦500,000 .
A medium-sized bakery that has more equipment and staff costs between ₦500,000 and ₦700,000 .
A large-scale bakery that operates as a factory costs between ₦6 million and ₦10 million .

These are only rough estimates and the cost varies depending on the market situation and the specific needs of the business. It is advisable to do a feasibility study and a business plan before starting a bakery business in Nigeria.

The amount of money you make per month from a bakery business in Nigeria depends on factors, such as:

the size and type of your bakery,
the quality and variety of your products,
the location and demand of your market,
the cost of production and operation, and
the level of competition.

However, based on research, here are some scenarios of how much you can make per month from a bakery business in Nigeria:

If you have a small bakery that produces bread, cakes, and pastries, and you sell an average of 500 loaves of bread per day at ₦200 each, you can make a gross revenue of ₦100,000 per day or ₦3 million per month1. Assuming your cost of production is 50% of your revenue, you can make a net profit of ₦50,000 per day or ₦1.5 million per month.
If you have a medium-sized bakery that has more equipment and staff, and you sell an average of 1000 loaves of bread per day at ₦250 each, you can make a gross revenue of ₦250,000 per day or ₦7.5 million per month. Assuming your cost of production is 40% of your revenue, you can make a net profit of ₦150,000 per day or ₦4.5 million per month.
If you have a large-scale bakery that operates as a factory, and you sell an average of 5000 loaves of bread per day at ₦300 each, you can make a gross revenue of ₦1.5 million per day or ₦45 million per month. Assuming your cost of production is 30% of your revenue, you can make a net profit of ₦1.05 million per day or ₦31.5 million per month.

These are only hypothetical examples and the actual figures may vary depending on the market situation and the specific details of your business. It is advisable to do a feasibility study and a business plan before starting a bakery business in Nigeria.

The minimum amount of money required to start a bakery business in Nigeria depends on the size and type of bakery you want to start. Here are common expenses that you need to consider:

Registration : You need to register your bakery business with the Corporate Affairs Commission (CAC) and get a business name certificate . The cost of registration varies depending on the type of business entity, but it ranges from ₦10,000 to ₦50,000 . You also need to get other permits and licences from the National Agency for Food and Drug Administration and Control (NAFDAC) , the Standard Organisation of Nigeria (SON) , and the local government authorities . The cost of these permits and licences varies depending on the location and size of your bakery, but it ranges from ₦50,000 to ₦200,000 .
Equipment : You need to purchase or lease the equipment for your bakery, such as ovens, mixers, slicers, proofers, tables, racks, trays, pans, scales, thermometers, etc. The cost of equipment depends on the quality and quantity of the equipment, but it ranges from ₦100,000 to ₦5 million .
Materials : You need to buy the raw materials for your bakery, such as flour, sugar, yeast, butter, eggs, milk, etc. The cost of materials depends on the quantity and quality of the materials, but it ranges from ₦50,000 to ₦500,000 per month.
Staff : You need to hire and pay the staff for your bakery, such as bakers, packers, cleaners, salespersons, etc. The cost of staff depends on the number and skill of the staff, but it ranges from ₦50,000 to ₦500,000 per month.
Rent : You need to rent or buy a suitable space for your bakery, preferably in a busy and accessible area . The cost of rent depends on the location and size of the space, but it ranges from ₦50,000 to ₦500,000 per month.
Utilities : You need to pay for the utilities for your bakery, such as electricity, water, gas, internet, etc. The cost of utilities depends on the consumption and availability of the utilities, but it ranges from ₦20,000 to ₦200,000 per month.
Marketing : You need to market your bakery business to attract and keep customers, such as printing flyers, banners, business cards, etc. The cost of marketing depends on the strategy and frequency of the marketing, but it ranges from ₦10,000 to ₦100,000 per month.

These are only rough estimates and the actual cost depends on the market situation and the specific needs of your business. It is advisable to do a feasibility study and a business plan before starting a bakery business in Nigeria.

The best states in Nigeria to start a bakery business are those that have a high population, a high demand for baked products, low competition, and a favourable business environment. Based on these criteria, the best states in Nigeria to start a bakery business are:

Lagos : Lagos is the most populous and commercial state in Nigeria, with over 20 million people and a vibrant economy. Lagos has a vast market for bread and other baked products, as people consume them as breakfast, snacks, or gifts. Lagos also has a diverse and cosmopolitan population, so there is a demand for different baked products, such as cakes, pastries, cookies, etc. Lagos also has a good infrastructure and a relatively stable power supply, which are essential for running a bakery business.
Abuja : Abuja is the capital and administrative state of Nigeria, with over 3 million people and a high standard of living. Abuja has a high demand for bread and other baked products, as people in the city are busy and prefer convenient and fast meals. Abuja also has government workers, diplomats, expatriates, and tourists, who have a taste for quality and variety in baked products. Abuja also has a good infrastructure and a relatively stable power supply, which are essential for running a bakery business.

Despite the favourability of these two states, they share common challenges that you should note, such as:

high cost of rent,
high cost of raw materials,
high traffic congestion, and
top competition from other bakeries.

To succeed in Lagos and Abuja, you must possess a unique selling proposition, a prime location, a solid marketing strategy, and a devoted customer base

Kano : Kano is the most populous and commercial state in northern Nigeria, with over 13 million people and a strong agricultural sector. Kano has a high demand for bread and other baked products, as people in the state consume them as part of their daily diet. Kano also has traders, farmers, artisans, and students who have a need for affordable and nutritious baked products. Kano also has a good road network and a relatively low cost of rent, which are beneficial for running a bakery business. However, Kano also has challenges, such as low power supply, low security, low literacy, and low income. Therefore, to succeed in Kano, you need to have a low-cost product, a good distribution channel, a good hygiene standard, and a good social responsibility.

Some of the known examples of bakery business in Nigeria are:

FEGEOSTOM : This is a bakery that produces bread and other baked products such as cakes, pastries, pies and in Osogbo, Osun State. It also offers apprenticeship training and consultancy in the industry.
Graceco : This is a large-scale bakery that operates as a factory in Alagbado, Lagos State. It produces bread, cakes, snacks, and confectioneries. It also provides catering services and training for aspiring bakers.
Nuts About Cakes : This is a specialty bakery that focuses on cakes and cupcakes for various occasions, such as weddings, birthdays, anniversaries, and corporate events. It has branches in Lekki, Ikoyi, and Ikeja in Lagos State. It also offers cake decorating classes and online delivery services.
Big Treat : This is a bakery that offers a variety of bread, cakes, pastries, and desserts. It has outlets in Victoria Island, Surulere, Ogba, and Festac in Lagos State. It also has a catering arm that provides food and drinks for events.
Delightful Affairs : This is a bakery that specialises in custom-made cakes and desserts for weddings, birthdays, baby showers, and other celebrations. It is in Abuja, the capital city of Nigeria. It also offers cake design courses and online ordering services.

Navigating the Nigerian Business Terrain

With starting a business in Nigeria, it’s not enough to have a brilliant idea. You need to understand the unique dynamics of the Nigerian business environment.

From handling business registration to navigating regulatory issues, there are unique challenges that Nigerian entrepreneurs face.

But let me assure you, it’s not as daunting as it sounds.

With my years of experience in the Nigerian startup scene, I’ve navigated these waters, and I’m here to guide you through them. So, let’s dive in!

In Nigeria, the Corporate Affairs Commission (CAC) handles business registration. You’ll need to decide on the best structure for your business, whether it’s a sole proprietorship, partnership, or limited liability company.

Each has its pros and cons, with different legal and tax implications.

Here’s a quick tip: for startups, registering as a limited liability company is the best option. It offers the most protection for you as a business owner.

Nigeria, like any other country, has regulations that businesses need to adhere to. These regulations vary depending on the industry.

For instance, if you’re in the food industry, you’ll have to deal with NAFDAC (National Agency for Food and Drug Administration and Control).

Remember, compliance with regulations isn’t just about avoiding penalties. It also helps to enhance your reputation and boost customer trust.

Getting your business off the ground will require funding. In Nigeria, there are several funding options available to entrepreneurs.

These include personal savings, loans from family and friends, angel investors, and even venture capital firms.

Case in point: Flutterwave, a Nigerian FinTech startup, raised $170 million in Series C funding in 2021. So yes, funding is possible if you have a solid business idea and a robust business plan.

Understanding the Nigerian market is key to your business’s success. With a population of over 200 million, Nigeria is a vast and diverse market.

However, it’s crucial to identify your target market and understand their needs, preferences, and buying behaviours.

For example, a UN report showed that Nigeria has the highest number of entrepreneurs in the world, with 41 million micro, small, and medium-scale enterprises. This makes it a hotspot for B2B startups.

One of the major challenges of doing business in Nigeria is the state of the infrastructure. Issues like unstable power supplies, poor road networks, and unreliable internet services can be major setbacks.

However, successful businesses have found innovative ways around these challenges.

A classic example is Nigeria’s e-commerce giant, Jumia. Despite the poor road network, they’ve built a robust logistics system that ensures efficient delivery of goods to customers.

Why Market Research and Planning Are Non-negotiable

An image of an entrepreneur drawing out plans and researching, e.g., reading books

Let’s face it, launching a bakery business without conducting proper market research and planning is like navigating a ship without a compass. You’ll be sailing blind, and that’s a recipe for disaster.

So, whether you’re dreaming up a bakery that’ll whip up the most delicious cupcakes in Lagos, or you’re envisioning a premium bread shop in Abuja, you need to have the right data and strategy to guide you.

The How-To’s of Market Research and Planning

First things first, you need to identify your target market and customer segments. Who are the people who’ll walk into your bakery, fall in love with your pastries, and become your loyal customers?

Is it the busy, health-conscious working class craving for whole-grain loaves? Or it’s the parents looking for a reliable cake shop for their kid’s birthday parties?

Next up is analysing the competition and finding a niche. Here’s a tip: don’t look at the big, established bakeries. Monitor the smaller, innovative ones that are gaining popularity.

What are they doing right? Can you do it better? Finding a unique selling proposition (USP) that sets you apart from the competition is crucial.

Then you need to determine your product range and pricing strategy. Are you going for a wide variety of pastries, or a select few but with exceptional quality?

How you price your products can make or break your business. Price too high, and you will turn away potential customers. Price too low, and you will sell yourself short.

Estimating your startup and operational costs is another vital step. From the cost of baking ingredients, rent, and salaries to marketing expenses, you need to know how much capital you need to get started and keep the business running.

Finally, creating a business plan and a financial projection is like building your bakery’s blueprint. It guides you through each stage of starting and managing your business, and it’s also a must-have when you’re looking to attract investors or secure loans.

Create a free business plan here .

Take a leaf out of the book of successful Nigerian bakeries like Breadish Bakery. They’ve carved a niche for themselves by offering a variety of breads, cakes, and pastries made with natural ingredients and innovative recipes.

Or look at Cakes and Cream, a cake shop that has built a loyal customer base by specialising in customised cakes for all occasions.

And let’s not forget Nuts About Cakes, a bakery that seamlessly combines traditional and modern baking techniques while offering extra services such as catering and delivery.

These bakeries started from scratch, conducted thorough market research, planned strategically and now, they’re thriving in their respective niches. So can you.

Please remember, the success of your bakery business doesn’t depend on your baking skills, but also on your business acumen and planning prowess.

Navigating the Maze of Location and Equipment Selection

A key part of setting up a successful bakery business is getting your location and equipment right. It’s like a chessboard – you need to place your rooks (location) and knights (equipment) strategically to checkmate the king (success).

Don’t worry, I’ve got your back. Here’s a handy guide to help you pick the right squares on your entrepreneurial chess board.

What’s in a Location?

Well, just about everything. Think about it – your target market, competition, accessibility, visibility, and security all hinge on your location. It’s like a hub connecting you to all your customers. You need a location that’s easily accessible and visible to your potential customers. But it’s not just about footfall. You also need to consider the competition in the area and the security of your premises.

Oh, and let’s not forget the practical stuff. Your location needs to have enough space, good ventilation, electricity, water, and drainage facilities. This isn’t just for convenience, it’s also about meeting legal and health standards. Renting or buying, make sure the lease or purchase agreement is favourable to you.

Equipping Your Bakery Business Right

Now, let’s move to the knights – your equipment. These are the workhorses of your bakery business. You need to choose equipment that matches your product range, production capacity, and quality standards.

But, don’t forget the ability to stand the test of time. Your equipment should be durable, efficient, easy to maintain and repair. Trust me, the last thing you want is a broken oven in the middle of a busy day.

Before you make your purchase, take time to compare prices and the quality of equipment from different suppliers and vendors. A penny saved is a penny earned, right?

The Baker’s Toolbox

So, what are the essentials you need in your bakery? Here’s a quick list:

3. Dough divider and rounder

4. Proofing cabinet

5. Baking pans and trays

6. Cooling rack

8. Display case

9. Refrigerator and freezer

10. Weighing scale

11. Measuring cups and spoons

12. Mixing bowls and utensils

13. Packaging materials and labels

Now that you have your shopping list, you will be wondering where to buy or lease this equipment. Websites like BlueCart, which connects bakery businesses with suppliers and vendors of equipment and ingredients, and Jiji, an online marketplace that offers new and used equipment for sale or rent, can be a great start.

Also, Bakery Equipment Nigeria is a company that specialises in supplying and installing bakery equipment.

Remember, every move counts when you’re playing the game of business. Choose your location and equipment wisely, and you’ll be well on your way to checkmate. Good luck!

Why Licences and Permits are Non-Negotiable

An image of the logos of the agencies mentioned here

Running a bakery business in Nigeria without the licences and permits is like playing a game of Russian roulette with your entrepreneurial dreams. Why? Because the consequences can be severe, ranging from hefty fines to business closure and even possible jail time.

To help you navigate this crucial step, here’s a list of licences and permits your bakery business needs to get:

1. Business name registration with the Corporate Affairs Commission (CAC) : This is your business’s official identity. It’s like a birth certificate for your business.

2. Tax Identification Number (TIN) and Value Added Tax (VAT) registration with the Federal Inland Revenue Service (FIRS ): Think of this as your contribution to the nation’s purse. It’s a legal requirement, and it’s also your ticket to accessing government incentives and grants.

3. Food Handler’s Certificate and Health Inspection Certificate from the National Agency for Food and Drug Administration and Control (NAFDAC) : This is to ensure that your bakery is adhering to the highest food safety and hygiene standards.

4. Fire Safety Certificate and Environmental Impact Assessment Certificate from the Federal Fire Service (FFS) and the Federal Ministry of Environment (FME) : These certificates affirm that your business poses no danger to the environment or the surrounding people.

5. Trade Permit and Signage Permit from the local government authority : These permits give you the legal right to operate your business in your chosen location and to advertise your products.

Getting these licences and permits may seem like a daunting task, but I promise you, it’s not as tough as it looks. Here are handy links to get you started:

– For Business name registration, visit the Corporate Affairs Commission

– For Tax registration, check out the Federal Inland Revenue Service

– For Food safety and quality regulation, the NAFDAC website is your go-to.

– For Fire safety regulations, swing by the Federal Fire Service

– For Environmental impact assessment, the Federal Ministry of Environment has got you covered.

– And finally, for Trade and signage permits, your local government authority office/website should have all the details you need.

Remember, it’s better to spend a little time and money now on getting these licences and permits than to pay the hefty price of non-compliance later. Happy baking!

Why Staff Are Essential for Your Bakery Business

An image of staff at a bakery at work, e.g. salespersons or bakers

One key ingredient to a successful bakery business isn’t just your delectable pastries, but your staff. They are the gears that keep your business machine running smoothly. From bakers who bring your recipes to life, decorators who add that touch of creativity, and salespersons who close the deal, to cleaners who maintain a spotless and inviting environment, each role contributes significantly to the overall success of your bakery business.

1. Identify Your Staff Requirements : The first step is to determine the number and type of staff you need. This depends on the size of your bakery and the range of products you offer. A small bakery only needs a few staff members, while a larger one requires a more extensive team.

2. Recruitment : There are several platforms you can leverage for recruitment. Referrals often bring in reliable staff. Online job platforms are great for reaching a broader audience. Traditional newspapers also remain a useful resource.

3. Interviews and Tests : After receiving applications, interviews and tests are essential for assessing the skills, experience, and personality of candidates. This helps ensure you’re getting the right people for the job.

4. Competitive Packages : Offering competitive salaries, incentives, and benefits can significantly help attract and keep staff. Remember, great staff are worth their weight in gold (or in this case, flour).

5. Orientation and Training : Once hired, providing orientation and training to staff on your bakery’s vision, mission, values, policies, procedures, and products is crucial. This aligns them with your business ethos and prepares them for their roles.

6. Performance Evaluation : Regularly evaluating and rewarding staff performance and providing feedback and coaching are essential for continuous growth and improvement.

Several successful Nigerian bakery businesses have excelled in their hiring and training processes.

Waracake , an online bakery, operates with a network of freelance bakers and decorators who are trained and certified by the company. This model allows them to maintain a high standard across their product range.

Cake Lounge goes a step further by offering training and internship programs to aspiring bakers and decorators. This not only builds their team, but also contributes to skill development within the industry.

Delightsome Bakery is another shining example. They focus on employing and empowering women from low-income backgrounds, providing them with skills and opportunities. This socially conscious approach has resonated well with their customer base.

Remember, building a successful bakery business isn’t just about the perfect dough or the ideal icing. It’s about having the right team that shares your passion and vision. So invest time and resources into hiring and training – it’s an investment that will yield sweet returns!

Supercharge Your Bakery Sales with Effective Marketing and Promotion

An image depicting both online and offline advertising

You’ve got the dough, so let’s add some frosting! Establishing a strong and unique brand lets your bakery stand out in the ever-competitive food industry. The brand name, logo, slogan, and even the packaging, all play critical roles in creating a memorable image for your bakery.

Think about it—don’t you feel a sense of familiarity when you see the golden arches of McDonald’s? That’s the power of branding!

Going Digital: Your Bakery’s New Frontier

In this digital age, having a nifty website and active social media pages for your bakery isn’t a trend, it’s a necessity.

Your online platforms are your bakery’s windows to the world. Regularly posting engaging content such as delectable product photos, behind-the-scenes videos, customer testimonials, and enticing offers will not only attract potential customers but also keep your existing ones coming back for more.

Advertising is the lifeline of any business, and your bakery is no exception. By leveraging both online (Google Ads, Facebook Ads, and Instagram Ads) and offline (flyers, banners, and posters) advertising channels, you can significantly increase your bakery’s visibility and reach.

Remember, the more people see your bakery’s name, the more likely they are to think of it when they crave something sweet.

Ever heard the saying, “No man is an island”? The same goes for your bakery.

Taking part in events and exhibitions such as trade fairs, festivals, and weddings can showcase your bakery’s products and services to a broader audience. Not to mention, building relationships and partnerships with other businesses like hotels, restaurants, supermarkets, and schools can create steady streams of orders for your bakery’s products.

There’s a reason word-of-mouth and referrals are considered the best forms of advertising. When your customers love your products, they won’t hesitate to share their experiences with others.

Encourage this by offering them incentives like discounts, loyalty programs, and coupons. Remember, a happy customer is your bakery’s best ambassador.

Learning from those who’ve been there and done that is a wise strategy. Here are a few examples of successful bakery businesses in Nigeria and how they’ve nailed their marketing and promotion game:

Cakes by Tosan have a robust online presence and smartly use social media influencers and celebrities to endorse and promote its products.

Buttercup Bakery has a loyal customer base and efficiently uses email marketing and SMS marketing to keep them informed of deals and updates.

Tito Cakes and Events maximises its wide network of clients and partners and frequently uses events and exhibitions to showcase its products and services.

In conclusion, marketing and promotion are vital cogs in your bakery’s success machine. By adopting these strategies, you can surely take your bakery business in Nigeria to the next level. So, are you ready to whip up some marketing magic for your bakery?

Starting a business in Nigeria is not a walk in the park. It requires perseverance, resilience, and a deep understanding of the business terrain. But with the right guidance, it’s a journey worth embarking on.

Remember, every challenge presents an opportunity for innovation. As Bill Gates once said, “Success is a lousy teacher. It seduces smart people into thinking they can’t lose.”

So, take each challenge as a learning opportunity and keep pushing forward. You’ve got this!

Frequently Asked Questions

The cost of starting a bakery business in Nigeria depends on various factors, such as the size, location, equipment, product range, and staff of the bakery. However, according to some estimates, the minimum cost of starting a small-scale bakery business in Nigeria is around N500,000, while the cost of starting a medium-scale bakery business is around N5 million. The cost of starting a large-scale bakery business can be much higher, depending on the scale and scope of the operation.

The legal requirements for starting a bakery business in Nigeria include getting the following licences and permits:

Business name registration with the Corporate Affairs Commission (CAC)
Tax Identification Number (TIN) and Value Added Tax (VAT) registration with the Federal Inland Revenue Service (FIRS)
Food handler’s certificate and health inspection certificate from the National Agency for Food and Drug Administration and Control (NAFDAC)
Fire safety certificate and environmental impact assessment certificate from the Federal Fire Service (FFS) and the Federal Ministry of Environment (FME)
Trade permit and signage permit from the local government authority These licences and permits are necessary to ensure that the bakery business complies with the relevant laws and regulations and operates in a safe and hygienic manner.

The best locations for starting a bakery business in Nigeria are those that have the following characteristics:

High demand for baked goods, especially from the target market and customer segments
Low competition from other bakery businesses or similar food businesses
High accessibility, visibility, and security for customers and suppliers
Adequate space, ventilation, electricity, water, and drainage facilities for the bakery operation

Favourable lease or purchase agreement and rent or price for the location Examples of suitable locations for starting a bakery business in Nigeria are busy streets, markets, shopping malls, residential areas, schools, hospitals, hotels, etc.

The essential equipment for starting a bakery business in Nigeria are those that are required for the production, storage, display, and packaging of bakery products. Some of the essential equipments are:

Dough divider and rounder
Proofing cabinet
Baking pans and trays
Cooling rack
Display case
Refrigerator and freezer
Weighing scale
Measuring cups and spoons
Mixing bowls and utensils
Packaging materials and labels

The type and quantity of equipment varies depending on the product range, production capacity, and quality standards of the bakery.

The staff are essential for running a bakery business in Nigeria, as they perform various roles and responsibilities, such as baking, decorating, selling, cleaning, etc. To hire and train staff for a bakery business in Nigeria, the following steps can be followed:

Determine the number and type of staff needed, such as bakers, decorators, salespersons, cleaners, etc.
Recruit staff from various sources, such as referrals, online platforms, newspapers, etc.
Conduct interviews and tests to assess the skills, experience, and personality of candidates
Offer competitive salaries, incentives, and benefits to attract and keep staff
Provide orientation and training to staff on the bakery’s vision, mission, values, policies, procedures, products, etc.
Evaluate and reward staff performance and provide feedback and coaching

Marketing and promotion are vital for attracting and keeping customers and increasing sales and profits for a bakery business in Nigeria. To market and promote a bakery business in Nigeria, you can use the following strategies:

Create a unique and memorable brand name, logo, slogan, and packaging for the bakery
Develop a website and social media pages for the bakery and update them with relevant and engaging content, such as product photos, videos, testimonials, offers, etc.
Use online and offline advertising channels, such as Google Ads, Facebook Ads, Instagram Ads, flyers, banners, posters, etc.
Take part in events and exhibitions, such as trade fairs, festivals, weddings, etc., and showcase the bakery’s products and services
Build relationships and partnerships with other businesses, such as hotels, restaurants, supermarkets, schools, etc., and supply them with the bakery’s products
Encourage word-of-mouth and referrals from existing customers and offer them discounts, loyalty programmes, coupons, etc.

Starting a bakery business in Nigeria can be challenging and risky, as there are factors that can affect the success and sustainability of the business. Some challenges and risks are:

High competition from other bakery businesses or similar food businesses
Fluctuating demand and customer preferences for baked goods
Rising costs of raw materials, equipment, utilities, and labour
Unreliable supply of electricity, water, and gas
Poor infrastructure and transportation facilities
Regulatory and legal issues and compliance
Theft, vandalism, and fire hazards
Pest and rodent infestation and contamination

To overcome these challenges and risks, you should conduct proper market research and planning, get the licences and permits, choose a suitable location and equipment, hire and train staff, market and promote the bakery, and monitor and evaluate the business performance and customer feedback.

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Business Plan

Bread Bakery Business Plan in Nigeria

by BusinessPlan Leave a Comment

Bread also referred to as the “the staff of life” by some is one of the most popularly essential food all over the world. Bread ranks number one in the most universally eaten food, the second being rice. The consumption of bread is not relegated to certain tribes, class or religion. All manner of people consume bread which makes it an essential food in any home. Bread is a very popular, perhaps the most popular food in any part of the country because of how quick one can easily get it and how cheap it is.

Also Read: Bakery Business Plan in Nigeria

Bread plays a prominent role in daily living such that it has been used in proverbial expressions, colloquial expressions and even in prayer (give us our daily bread). Bread can be eaten as a meal, as a snack or in combination with other foods like beans, bean cake, popularly called moi moi, egg e.t.c.

Any investment that involves dealing with a product of high demand is always lucrative, and bread happens to be one of those products that has a high demand. Setting up a bread bakery is therefore a wise choice of investment. The focus of this article will be on bread bakery business. This article therefore will provide a guide to setting up a bakery business in Nigeria. This article also will be emphasizing how to set up a large scale bread bakery business in Nigeria.

What Is Needed to Set Up a Bread Bakery Business in Nigeria

At this junction, we will be looking at both the factors to be considered and equipment to be purchased for the bread bakery business.

Feasibility Studies/Analysis: This is the first thing on the list. You are probably wondering what feasibility studies/analysis means. We will take a moment to define it and state its importance.

Feasibility studies/analysis is the evaluation of a proposed project to determine if it is technically achievable, can be achieved at the estimated cost and if it is going to be possible. A feasibility studies/analysis is usually the initial stage of a proposed business where you bring all factors ( economic, technological and legal factors), and consider them to see if your proposed business will be possible or not. In simpler terms, feasibility studies answers the question “will this business work”?.

Feasibility studies/analysis are conducted where the investment involves a large sum of money. Setting up a bakery is capital intensive and that is why you must conduct a feasibility analysis before you embark on this journey. Later on we will look at the importance of conducting a feasibility studies/analysis.

Develop Your Business Plan and Business Model: There are certain investments that may not require a business plan. But when it comes to setting up a bakery, it is strongly advised that you get a business plan. Some of its benefits includes; a business plan helps you set your business goals and develop the steps you need to meet those goals. It helps you get prepared to mitigate risks in your business, and most importantly, if you are looking to get financial support or assistance in the form of loan or business incentive, a well drafted business plan will get you more than half way through the process. Also, a business plan will help you analyse your business goals, as the business progresses, if the business is progressing the way it should or not, based on your aims and objectives. It is therefore pertinent to get your business plan ready. If you are unable to draft it by yourself, then you should seek the help of a professional.

You can get a sample bakery business plan and a feasibility study on bakery in Nigeria? To place an order, pay N10,000 to:

BANK NAME: FIRST BANK PLC

ACCOUNT NAME: CHIBUZOR TOCHI ONYEMENAM

ACCOUNT NUMBER: 3066880122

After payment, Text your full name, email address and selected business plan (e.g. sample of business plan in nigeria pdf) to 07033378184.

The complete business plan/feasibility study will be sent to your email 30 minutes after payment.

Also get our Sample Bakery Business Plan Here

Your business model involves deciding on your product name, logo, target customers and how you want to finance your business. At this point, if you do not have the capital required to fund the investment by yourself, then you should source for funds, either by asking for loans from banks or applying to programs that offer business incentives to entrepreneurs.

Get Yourself Trained: It is one thing to be the best baker in your family and it is another to do commercial baking. It is important you get proper training to understand the rudiments of baking even though you will employ capable hands. The best place to get trained is to get attached to a functioning bakery, where you can get both theoretical but most importantly practical knowledge about the business. Remember you are not just learning how to bake, if it was just that, there are many videos on YouTube that will teach you, but you are learning the basics of the business as well. For example 50 loaves of bread can be produced from a bag of flour ( this is just for illustrative purposes). When you know this, then you will be able to know how much bread the amount of flour you purchased should be able to give. This will go a long way in curbing a part of theft in the business.
Choose Your Location: This is a very important aspect of this business. Apart from how your location may influence the sales of your products, it will certainly influence getting relevant certification. Also, you may want to build your own bakery from the scratch. So take into consideration the following when making a choice for the location of your bakery.
Closeness to town: This is not a stringent criteria because if the taste, quality and price of your product is very enticing, customers will travel distance to purchase your products. However, the closer you are to town the better.
Sufficient space for baking and storing both unfinished and finished products.
Adequate parking space.
Not close to a dump site or chemical factory.
Adequate pedestrian traffic.
Adequate wholesale and retail dispatch space.
Get Operational Approval: This is coming after choosing your location because, before you will get the necessary approval, your business site will be visited to see if it conforms with the required standard. The approval required to operate a bakery is given by National Agency for Food and Drug Administration and Control (NAFDAC) and one of the criteria that will see to the approval of your business site is the cleanliness of the surrounding. So, remember this when picking a location.
Purchase Required Equipment: Below are a list of required bread bakery equipment in Nigeria
Baking Oven: You can get a locally made oven. Locally made ovens are preferable because they are powered by coal which is cheaper. Getting an oven that runs on electricity is not advisable, as it will be more expensive and also may be unavailable to use most times, due to the unstable electricity situation in the country which will make you get an alternative source of power supply. This too will need to run on diesel, which is also expensive and can lead to an increase in production cost. This can make your products to have a higher than normal price, or reduce your profit making if you choose to bear the extra cost rather than levy it on the consumers.
Flour mixing machine: For mixing the flour and other ingredients together.
Moulding machine: This is used for moulding bread dough. This can also be done manually, however, it saves time and manpower, which can reduce cost from employing manpower needed to mould.
Bore hole and water storage tank: Water is a compulsory ingredient for baking bread, so there must be water at all times. Tank should be plastic, because iron tanks starts to rust after some time. Plastic tank water should be treated and the tank washed from time to time.
Baking pans.
Weight scales.
Mixing bowls.
Dough dividers.
Bakery display case.
Work tables.
Shelves for keeping breads.
Slicing machine.
Refrigerator.
Customised packaging nylon bags.
Generator: One that can carry all equipment required to work at the same time.
Delivery truck for conveying your products to selling points.
Human Resources and Raw Materials: At this point, you should be looking to employ your work force. Be sure to employ qualified staffs. Also make room for apprentices and students on industrial training (IT students) , as they will provide extra help and extra cash too, in the cases of apprenticeship. However, room for apprenticeship and IT students should be made when you have settled down and have understood the pros and cons of the business.

Basic raw materials should be bought from a reliable supplier as you will need to have these in stock always. Without them, there would be no bakery. A reliable supplier will also be able to give you goods and collect payment later. This is only after a trust relationship has been built. The major ingredients include flour, sugar, yeast, edible baking fat, salt, water, e.t.c. Proper mixing of these ingredients will determine the taste and texture of bread. Be sure to get a qualified and experienced hand to do this.

Market your Products: Just because you produce a fabulous product does not mean the whole world will know about it at once. Yes, people will tell the story about your product, yet it may take a long while to get the customer base you are aiming at. So, you need to market your products. If you have delivery vans, you can take your products to a strategic place, like a market, have the van opened to display your products, even have a recording playing a nice advert about your products and attract customers. You can also choose a have a nice advert about your product on TV. You can employ marketers as well who will take your products to various bread selling joints and supermarkets to market your products. This way, you will increase and improve your customer base.

Challenges of a Bakery Business in Nigeria

Theft: This is a huge problem in the bakery business. Theft can be done by staffs or those that come into the premises to purchase products or pretend like they want to purchase products. To reduce internal theft, ensure proper recording of raw materials bought. Get to know the estimated amount of bread that can be produced from an estimated amount of flour, do proper recording, take stock of materials regularly, get an auditor to audit your accounts regularly. Another good way to reduce theft by staff is have them sign a written agreement before employment, that anyone one found guilty of theft would be prosecuted. This will go a long way to minimise staff theft. Also, anyone caught stealing should be dealt with and dismissed to serve as a lesson to others.

To reduce theft from the outside, payments should be made in a separate room, where buyers will be given receipt to another room to collect products. No matter how large the crowd, attendance to customers should be done in an orderly manner, even if it means reassigning other staffs to assist at the moment. Study periods where you have this rush and have enough hands to assist.

Fluctuations of prices for materials and spoilage: Price fluctuations of raw materials especially baking flour is a constant occurrence in the country. Therefore, you must be ready to adjust your prices accordingly to accommodate these excesses. Be careful not to give over bloated prices.

Spoilage is another challenge to deal with. Some producers in a bid to get more retailers ask them to return spoilt bread. This can be very risky. Be sure you understand the business before taking such steps, and when you do, make a guidelines. For instance bread of more than a certain number of days should not be returned and a receipt should show when it was purchased to back up claims or you can as well sell spoilt breads to those that own animal farms or use them yourself if you have an animal farm, as spoilt bread can be used as part of animal feed. Also, bread could get burnt, due to carelessness or negligence. To handle this, your staffs should work on shifts to prevent over tiredness. Carelessness and negligence should not be tolerated. Carryout proper and timely maintenance on equipments to reduce the chances of spoilage due to equipments failure.

It is therefore important that you install smoke and fire detectors , and have fire extinguishers in your business premises, to prevent situations where your business will be razed down by fire. It will be very devastating and you may never recover if such happens.

Harassment by officials of the government: Whether you talk about those on the roads or those that come to inspect your business, you may be harassed sometimes. A sure way to avoid this is keep to the rules and guidelines all the time whether it concerns your production site or your delivery vehicles.

The profitability in this business is not skeptical. It is a lucrative venture. It is not a business that you sell your products once in a week, the sales is constant. A loaf of bread sold can get you up to #40 profit or even more. Now if you sell 2000 loaves in a day, it will give you

#40*2000 = #80,000 profit in one day. Multiply that by 30 days in month

#80,000*30 = 2, 400, 000.

Even your cost of production and maintenance cost will not be able to reduce the mouth watering profit you will take home. So why not invest in the bread bakery business today, where you can be a proud employer of labour and a profit making entrepreneur.

Take Home Tips

Avoid using bromate and saccharin for your bread production. They are harmful to the human health and against the law. If you are caught you will be dealt with and you may likely loose your customers.
Your staffs should maintain proper hygiene at all times. This is important for the sake of customers view and unexpected inspection officers that come unannounced sometimes.
You should create enough rooms in your production site. Room for administrative duties, changing rooms and toilets and bathrooms. There should be water 24/7 available for staffs use.
You should have a room as your proofing chambers. It is where bread is kept at a certain temperature to enable it rise.
Do not over prize your products.
Have a variety or range of bread. With time you can limit production to the most popularly bought ones.

Importance of SWOT Analysis of Bakery in Nigeria (Feasibility Studies/Analysis)

It helps you to determine and organise every detail that will make your business work.
It helps you to identify administrative problems and nearly every business related problems and also helps you with ways to mitigate these problems.
It also helps you develop marketing strategies that will let possible investors know they will not be making a mistake to invest in your business.

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