business plan on block moulding industry

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How To Start A Successful Block Industry Business In Nigeria

Entrepreneurs.ng
May 28, 2020

Block industry business is one of the thriving businesses in the world today. unfortunately, only a few investors and entrepreneurs think in that line of investment.

Despite that having a roof over one’s head is one of the basic needs of man, a lot of people still don’t consider this business a profitable business venture. Probably because people think it’s a business for the uneducated.

business plan on block moulding industry

Block industry business is an increasingly viable and lucrative business especially with new inventions like interlocking, and different kinds of block designs in vogue today. It is a business that thrives in urban as well as in the rural areas.

The block industry business satisfies the block needs of builders. Also, it saves builders the stress of having to buy sands, water, cement, and employing labour to mould blocks.

See Also: 100 Profitable business ideas to start now for aspiring entrepreneurs and investors.

With the increasing number of building construction going on these days, block industries are never going to be too much. This is the time to give this business opportunity a second thought. This article will show you all you need to do to start your block industry business.

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Block Industry Business

Block making refers to the mixture of powdered cement, sand, gravel with water in a way that produces a light gray colour with fine surface texture and strength after sun drying. It began with the need to satisfy builders and save them the stress that comes with building.

Block industries make high-quality blocks fit for building houses such that the constructions do not easily collapse. And any block that falls short of this, is not good for building. The business sells more in the dry season than the rainy season because several builders build during the dry season.

Looking at your immediate environment, you will see that people are building houses, schools, shops, religious centers, hospitals, factories, offices, and industries. This explains why this business opportunity is viable.

In this article, I will show you every thing you need to get started.

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Create A Business Plan

To succeed in this business, you need to take basic steps at the initial start-up stage. This will help you to know the risks and likely dangers involved in the business. So, it’s important to conduct research on the business area, the kinds of block with high demand, prices, and competition.

It will help you have a better understanding of the market and devise a strategy to succeed. In taking this step, it is important to document the results which will form your block industry business plan .

Your block industry business plan should outline the following:

Executive Summary
Business Description
Product and Services
Market Research and Strategy
Competitor and Marketing Plan
Operational Plan
Management and Structure
Financial Plan and Projection.

Also, you need to pay attention to the human resources you need to effectively run your business.

Go from idea to starting your business in 30 days

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

Register Your Business

Once the block industry business plan has been documented, the next is to register the business with CAC and other recognized authorities. Doing a business registration will give you access to loans and other opportunities tailored to entrepreneurs.

Also, you can bid for a contract from the local, state, and federal government or private companies to supply blocks and other building materials with a registered business.

If you want to take away the stress of registering the business yourself with the Corporate Affairs Commission (CAC), ReDahlia is your plug. We can provide you with all the necessary information and give you legal advice on how to go about it.

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

Startup Capital

Block making is capital intensive with start-up capital running into millions depending on the scale you want to start and the resources you have in place. The cost of securing land in a good location can be on the high side. Besides, you will need to get raw materials, sink a borehole, get block making equipment, e.t.c. And, set aside worker salaries for at least two months.

A local manual moulder cost about N10,000 to N15,000 naira while the vibrating machine goes for about N100,000 to N150,000. You also need to buy a lister generator and other equipment. Depending on your scale, you can buy 1 or 2 moulders for a start.

For capital, you can ask for soft loans from family and friends if you do not have enough capital to start. Also, you can use crowdfunding sites or approach financial institutions for a loan.

Step By Step Plan On How To Start Block Industry Business

Acquire land.

You can start a block industry by renting, leasing, or purchasing land in a new or developing site. It can be a plot or more depending on what you can afford. This land should not be in a swampy or waterlogged area because it can affect the quality of your block. Aside from that, it can make driving in that condition very difficult for suppliers and customers.

On the land, set up a small roofed shed using plank or blocks depending on what you can afford. Create a store for storing cement, shovel, head pan, wheelbarrow, and other equipment.

Then, create a shed where the lister and molding machine can be operated. The roof can be without walls or side coverings, it is just to protect the machine from being constantly drenched by rain or sun.

Most importantly make sure your location can be easily accessed by cars, truck, or other means of transportation. This will ease the stress on the part of customers and your workers.

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Water System

For a block making industry, you need water supply and more of it. Water will be used to mix sand and cements, to mould blocks and to water block on daily basis until it becomes strong.

If you do not have a natural water supply like stream or river, sink a borehole or dig a well, then, install tanks. Just make sure you have a guaranteed source of water at all times.

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Some of the equipment used in a block industry business are:

Generator : Lister generator is usually preferred for block making. It will be used to power the molding machine, borehole, mixing machine, and other power-consuming equipment in case of an electricity outage. Ensure to get a durable one that is noise proof, does not constantly breakdown, and does not consume much diesel.

Molder : This is a machine where the blocks are molded from. It is also called a vibrating machine due to the kind of noise it makes while molding. The molder molds block in different sizes and shapes. It can be constructed by welders or better still purchased from manufacturing companies.

Wood Carriers : This is a flat wooden plank used to carry block from the molder to the drying point, mostly under the sun where it will be arranged in sections. It is constructed by carpenters in a handy and movable way. It’s highly important in the block industry business as it enables easy carriage of blocks.

Supply Truck : Depending on how you are starting, you can get trucks for delivery services.

Concrete Mixer – This is a machine used for mixing sand, cement, and water in the right proportion.

Diesel ; About 25 litres to 30 litres every day depending on how long the moulding machine will be on. You can plan for about 100 litres for a week but ensure to store in a cool dry place to avoid an explosion.

You will also need : Shovel, head pan, wheelbarrow, e.t.c

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Human Resource

For a standard block industry business, you will need to employ the services of people; machine operators, mixers, laborers, loaders, and drivers.

The machine operator handles and operates the machine. The mixers mix the cement and sand that goes into the molder, while, the laborers move the blocks from the molder to the drying point.

You can also employ a cashier or supervisor (optional) if you won’t be on the ground to oversee the day to day operation. In addition, you need, a driver who will transport the blocks to customers in different places, and loaders, who take responsibility for loading and offloading of blocks at different points.

In this business, labourers are usually paid daily based on the number of blocks or the types of block they make.

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Sand And Cement

Sand, cement, and water are the raw materials used for block making. Start by getting a supply that can last for a week or more, so you don’t become short of materials at a crucial time.

For sand, three kinds are needed for block making; sharp sand, stone dust, and ordinary mud sand. These three are then mixed together with cement and water to form the solid block substance. You can speak with quarry managers on supply and negotiate the delivery time.

For the cement, find out the best cement that makes a block strong and go for it. Besides, you can also venture into cement selling since it comes handy with a block industry business.

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

Make Blocks

Once the whole material and equipment are set, the next thing is to start making the blocks. This requires mixing a proportion of cement, sand, and gravel with water.

There’s a certain number of blocks that can be made from a bag of cement; about 35 – 40 (9 inches), 50 – 55 (6 inches), and 60 – 65 (4 inches) blocks. They are sold at different prices.

Also, look for ways to scale your production daily to maximise profit. For instance, a block molding machine makes about 5000 blocks in a day. If you have two, that will be 10,000 blocks a day. This will help you meet the demands of your customers.

Tips On How To Successfully Operate

Creating a block industry in a new site or developing area close to a busy road is a wise decision. This way, your first customers will be the builders in the vicinity and you will be sure of patronage.

Your number one marketing tool in the block industry business is providing high-quality blocks. This can be achieved by using quality materials for moulding.

Get listed on business directories and register on social media platforms. Also, get a business card and create business relationships with construction engineers, surveyors, architectural designers, bricklayers, and other people who deal with site-building.

Deliver good customer service to your clients and pay your labourers appropriately as agreed to get the best from them. Remember, your workers are your first customers.

See Also: Cheap Ways To Promote Your Business As An Entrepreneur

Block making is a profitable business area that requires following due process and backing it up with determination to succeed. Start small and grow big if you don’t have any experience in the business.

If you have read up to this stage, I guess congratulation is in order. With this knowledge, you can venture into the block industry business.

As always, we will like to hear your thoughts in the comments. And, if you are experiencing business challenges and need to consult with us, we are a call away.

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DOWNLOAD BLOCKS AND BRICKS MANUFACTURING BUSINESS PLAN SAMPLE

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Complete Block Industry Business Plan in Nigeria

Post author: Ane
Post published: January 11, 2020
Post category: BUSINESS-PLAN-AND-FEASIBILITY-STUDY / C.A.C. INCORPORATION
Post comments: 0 Comments

Complete Block Industry Business Plan is all you need to set up your block moulding business. It’s a comprehensive business plan for concrete block industry in Nigeria. Therefore, this business plan is relevant for businesses involved in the manufacturing of building concrete, bricks and blocks for masonry. In fact, builders’ association, housing consultant, development agencies, construction workers etc. demand for this.

Introduction:

Table of Contents

The concrete used to make concrete blocks is a mixture of cement, water and sand. However, some special moulds include gravel. This produces a light grey. In fact, the block comes up with a fine surface texture and a high compressive strength. Typically, a concrete block weighs 38-43 lb (17.2-19.5 kg).

Furthermore, Complete Block Industry makes blocks of uniform quality. We sell them at a price reasonable enough to cover costs and make some profit. In fact, our cement concrete blocks are suitable as modern construction materials and as such are used in all the construction works. These include residential, commercial, and industrial building construction.

Executive-Summary-Complete -Block-Industry-Business-Plan-in-Nigeria.

As a matter of fact, this business plan is for Complete Block Industry. The business is owned by Ngozika Dike. She has over 10 years’ industry experience in Block making and construction works industry.

Furthermore, the estimated cost of setting up the business with relevant machines is N6,000,000 (six million Naira). Our feasibility analysis shows that the project is very profitable. In fact, with aggressive marketing strategies and good management the payback period will be 3 years. Again, the return on investment is very encouraging at 15 per cent net profit margin.

Futhermore,

As a matter of fact, the business will generate 25% gross margin and a modest net margin of about 15% in the first and second year and 25 -30% margin after the third year.

In fact, leveraging on the aggressive marketing strategies to be employed, we forecasted a 40% market share in our immediate market environment. Therefore, we have started planning for expansion to other locations within the next nearby town.

Our Vision is:

To be among the top 5 Block Making company in Abuja by 2025

Our Objective

Constant 20% growth in sales yearly.
High customer satisfaction. This is to generate at least 60% customer base as repeat business.
In addition, to provide quality product at reasonable prices
To be a one stop-shop for block as building material in Abuja
To continue to be a going-concern as a profitable enterprise.

Our Mission

To meet customers’ expectations in every sense.

Product /services

In foremost, is the manufacturing of building concrete, bricks and blocks for masonry work. Such building materials that are suitable for builders’ association, housing consultant, development agencies, and construction workers.

Therefore, we produce –

Cement- Interlocking
Cast concrete pipes etc.

Complete Block Industry Business Plan – Management Team:

Mrs. ngozika dike.

The enterprise will be managed by the owner/manager Mrs. Ngozika Dike who has over 10 years’ experience in block making business. She has bachelor of Technology (Civil Engineering) from Obafemi Awolowo University Ile-Ife) with focus on Soil Sciences.

Therefore, she is the CEO of the company. She oversees the day to day activities of the business.

Abba Kassim

Abba Kassim (B.Sc. Management) has over 15 years’ experience in the industry. He has first degree in business administration with specialization project management. Professionally, he is a project management professional. Therefore, he is the business development strategist.

Adams Adam.

The third person in the order of hierarchy is Adams Adam. Mr. Adam has over 10 years’ experience in the civil engineering business. Therefore, he is in charge of our production unit.

Other staff are those in charge of our packaging and delivery unit.

The Business @ Complete Block Industry Business Plan:

The business benefits from Large Scale production. It also offers training opportunities for young entrepreneurs.

On the other hand, we manage the business to generate cash-flow for profitability and expansion. In fact, our experience in the industry brings competence and credibility. Therefore, my staff and I will bring operational, processing, packaging, and marketing skills to the business. In fact, our customer service is going to be one of the best in this industry.

Financial Plan and Projections :

Furthermore, our financial projections are as shown below. In summary, however, Investment costs 6million to take off. The promoters of this business requires an amount of 6million equity capital from private investors. Therefor, the money will be use to procure capital equipment and operational cost. However, the analysis is in the cash flow and the income statements shown below.

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CALL FOR COMPLETE PACKAGE:

As a matter of fact, this is an overview of Complete Block Industry Business Plan. The complete package is actually more than this. Depending on the scope of your operation, 20 to 30 page of Complete Block Industry Business Plan will do. Therefore, if you need the complete part of the business plan contact us. In fact, call +234 8034347851 or mail to [email protected].

In conclusion, I know you enjoyed this post. If that’s true, please help share it to reach others. Follow us on any of our social media for your updates. Thanks for reading through. Now, ensure you always visit http://completefmc.com

Deacon Anekperechi Nworgu, a seasoned economist who transitioned into a chartered accountant, auditor, tax practitioner, and business consultant, brings with him a wealth of industry expertise spanning over 37 years.

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How To Start A Lucrative Block Industry Business In Nigeria and Africa: The Complete Guide

Block industry business is one of the most lucrative ventures in Nigeria and Africa, with a high demand for building materials to meet the rapid urbanization and construction boom in the region. According to the National Bureau of Statistics, the Nigerian construction industry grew by 1.74% in the fourth quarter of 2020, indicating a steady increase in demand for building materials such as blocks. Additionally, the Africa construction market is projected to grow at a CAGR of 6.50% during the forecast period (2021-2026), according to Mordor Intelligence.

The block industry business involves the production and supply of concrete blocks, which are widely used in the construction of residential and commercial buildings, as well as infrastructure projects such as roads, bridges, and dams. With a growing population and increasing urbanization, the demand for affordable housing and infrastructure development is expected to drive the growth of the block industry business in Nigeria and Africa.

In Nigeria, the block industry business is mainly dominated by small-scale operators who produce blocks using manual methods, while in some countries in Africa, such as Ethiopia and Kenya, there are large-scale block production plants that utilize automated machinery. However, there is still a huge gap in the demand and supply of blocks in the region, providing ample opportunities for new entrants into the market.

Furthermore, there is a potential for export opportunities for block industry businesses in Nigeria, given the high demand for building materials in neighboring countries such as Chad, Niger, and Cameroon. With proper branding and marketing strategies, block industry businesses in Nigeria can tap into these markets to increase their revenue and expand their operations.

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What Is Block?

A block is a solid, precast construction material that is commonly used in building walls, foundations, and other structures. It is typically made from materials such as concrete, cement, and aggregates like sand, gravel, or crushed stone. The scientific name for concrete block is masonry units, which are designed to be strong, durable, and fire-resistant. Blocks come in various sizes and shapes, depending on their intended use in construction. They are a cost-effective building material and are widely used in the construction industry globally, including in Nigeria and Africa.

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What Is The Block Industry Business In Nigeria and Africa About?

Block Industry Business involves the production of building blocks from raw materials such as cement, sand, water, and other additives. The blocks produced are used for building construction in the construction industry. The scientific name for these blocks is “Concrete Masonry Units” or “CMUs”. The process of making blocks involves mixing the raw materials in a proper proportion, molding, and curing.

Block Industry Business is an important sector in the construction industry and contributes significantly to the economy of Nigeria and Africa. According to a report by the African Development Bank, the construction industry in Africa is projected to grow at a rate of 6.4% per annum, creating numerous opportunities for the block industry business. Also, research shows that the demand for building blocks in Nigeria and Africa is high due to the need for affordable housing and the increase in urbanization.

The production yield after farming varies depending on the size and type of blocks produced. However, a well-established block industry can produce over 10,000 blocks per day, providing a significant return on investment. With the right equipment, skilled labor, and proper marketing strategy, the block industry business can thrive in Nigeria and Africa.

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Benefits of The Block Industry Business In Nigeria and Africa

Employment opportunities: Block industry business provides employment opportunities for individuals, which in turn helps to reduce unemployment rates in Nigeria and Africa.
Affordable building material: Blocks produced in block industry businesses are affordable and easily accessible compared to other building materials, which makes them a popular choice for construction in Nigeria and Africa.
Durability: Blocks produced by block industry businesses are durable and can withstand harsh weather conditions, making them suitable for constructing buildings in Nigeria and Africa.
Versatility: Blocks produced by block industry businesses can be used for various types of construction projects, such as residential, commercial, and industrial buildings.
Improved aesthetics: Block industry businesses can produce blocks in different shapes, sizes, and colors, which improves the aesthetic value of buildings constructed with them.
Cost-effective: Block industry businesses produce blocks using locally sourced materials, which makes them cost-effective compared to other building materials.
Sustainable: Block industry businesses use renewable resources such as sand, water, and cement to produce blocks, making them a sustainable option for construction in Nigeria and Africa.
Increased property value: Using blocks produced by block industry businesses can increase the value of a property due to their durability and aesthetics.
Easy to maintain: Buildings constructed with blocks produced by block industry businesses are easy to maintain, which reduces the cost of maintenance in the long run.
Fire-resistant: Blocks produced by block industry businesses are fire-resistant, which increases the safety of buildings constructed with them.
Sound insulation: Buildings constructed with blocks produced by block industry businesses provide good sound insulation, which enhances the comfort of occupants.
Energy-efficient: Buildings constructed with blocks produced by block industry businesses have good thermal insulation properties, which makes them energy-efficient.
Fast construction: Blocks produced by block industry businesses can be produced quickly, which speeds up the construction process.
Local production: Block industry businesses promote local production of building materials, which helps to reduce the dependence on imported materials.
Revenue generation: Block industry businesses can generate revenue for the government through taxes and provide opportunities for entrepreneurs to create profitable businesses

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Business Opportunities In The Block Industry Business In Nigeria and Africa

Construction industry: Block industry businesses are vital in the construction industry as they produce concrete blocks used for building houses, bridges, roads, and other infrastructure.
Real estate development: With the increasing demand for housing and commercial properties, block industry businesses are essential in providing materials for real estate developers.
Road construction: Blocks are used in the construction of roads, particularly for the construction of drainage systems and curbs.
Exportation: Nigeria’s block industry business has a great opportunity to export its products to other African countries that may have limited production capacity.
Employment opportunities: Block industry business creates employment opportunities for people in the local communities where they are established, particularly for skilled and unskilled workers.
Value addition: Block industry businesses add value to locally available raw materials by processing them into high-quality building materials.
Low capital investment: Starting a block industry business requires relatively low capital investment, making it an attractive option for aspiring entrepreneurs.
Durability: Blocks produced by the block industry are durable and long-lasting, making them ideal for building structures that need to withstand harsh weather conditions.
Flexibility: Block industry businesses can produce blocks in different sizes and shapes to meet the specific needs of their customers.
Affordable building material: Blocks are affordable and cost-effective building materials, making them accessible to people with limited financial resources.
Environmentally friendly: Block industry businesses can produce eco-friendly blocks made from recycled materials, helping to reduce waste and promote sustainable building practices.
Economic growth: The block industry business contributes to economic growth and development through the creation of jobs and the production of essential building materials.
Increased property value: The use of high-quality blocks in construction projects can increase the value of the property.
Local sourcing: Block industry businesses can source raw materials locally, promoting local industries and reducing the need for imports.

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Facts about the block industry business in nigeria and africa.

Block Industry Business involves the production and supply of concrete blocks used for construction in Nigeria and Africa.
The demand for concrete blocks in Nigeria and Africa is high due to the growth of the construction industry.
The scientific name for concrete blocks is masonry units.
The production of concrete blocks involves the use of locally sourced materials such as cement, sand, and water.
The production process of concrete blocks is simple and requires minimal investment.
Concrete blocks have several advantages over traditional building materials, including durability, low cost, and easy installation.
Block Industry Business can provide job opportunities for individuals in Nigeria and Africa.
The government in Nigeria and Africa is taking steps to encourage the growth of the construction industry through policies and infrastructure development.
Block Industry Business can contribute to economic growth in Nigeria and Africa through the creation of jobs and increased production.
The demand for concrete blocks is expected to increase as the population of Nigeria and Africa grows.
Block Industry Business can be operated on a small scale or large scale depending on the level of investment.
There are different types of concrete blocks, including hollow blocks, solid blocks, and interlocking blocks.
The price of concrete blocks in Nigeria and Africa varies depending on the type, quality, and location of production.
Block Industry Business requires good marketing strategies to attract customers and increase sales.
The use of technology in the production process of concrete blocks can improve efficiency and reduce production costs.
Block Industry Business can be export-oriented, with opportunities to export to neighboring countries in Africa.
Block Industry Business can contribute to sustainable development by using environmentally friendly materials and reducing waste.
Block Industry Business can benefit from government incentives and grants for small businesses in Nigeria and Africa.
The success of Block Industry Business depends on the quality of the blocks produced and the ability to meet customer demands.
Block Industry Business can diversify its product line by producing other building materials such as paving stones and bricks.
The use of innovative building materials such as aerated concrete blocks can provide new opportunities for Block Industry Business.
Block Industry Business can partner with other businesses in the construction industry to offer bundled services and increase revenue.
The use of social media and online marketing can help Block Industry Business reach a wider audience and increase sales.
Block Industry Business can benefit from strategic partnerships with suppliers of raw materials and equipment.
The profitability of Block Industry Business depends on efficient production processes, effective cost management, and good marketing strategies.

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Types Of Block Industry Businesses In Nigeria and Africa

Block Industry Business is a significant part of the construction industry in Nigeria and Africa, and there are various types of Block Industry Businesses that entrepreneurs can venture into. Here are some of the common types of Block Industry Businesses in Nigeria and Africa:

Concrete Block Manufacturing Business: This type of Block Industry Business involves the production of concrete blocks using a mixture of cement, sand, and water.
Interlocking Paving Stones Manufacturing Business: This type of Block Industry Business involves the production of interlocking paving stones using cement, sand, and water.
Bricks Manufacturing Business: This type of Block Industry Business involves the production of bricks using clay or other materials.
Decorative Concrete Block Manufacturing Business: This type of Block Industry Business involves the production of decorative concrete blocks that can be used for aesthetic purposes in building construction.
Hollow Block Manufacturing Business: This type of Block Industry Business involves the production of hollow blocks that are commonly used for load-bearing walls in building construction.
Precast Concrete Products Manufacturing Business: This type of Block Industry Business involves the production of precast concrete products such as concrete slabs, concrete pipes, and concrete beams.
Foam Concrete Block Manufacturing Business: This type of Block Industry Business involves the production of foam concrete blocks using a mixture of cement, water, and foam.
Aerated Concrete Block Manufacturing Business: This type of Block Industry Business involves the production of aerated concrete blocks using a mixture of cement, lime, sand, and aluminum powder.
Lightweight Concrete Block Manufacturing Business: This type of Block Industry Business involves the production of lightweight concrete blocks using lightweight aggregates such as expanded clay, shale, or slate.
Solid Concrete Block Manufacturing Business: This type of Block Industry Business involves the production of solid concrete blocks using a mixture of cement, sand, and water.

Each type of Block Industry Business requires different production methods, equipment, and raw materials, and entrepreneurs can choose the type of business that suits their interests, resources, and target market.

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Types of Blocks

In the block industry, there are various types of blocks that are produced for different purposes. Some of the common types of blocks used in Nigeria and Africa include:

Solid Concrete Blocks: These are blocks made from Portland cement, sand, and gravel. They are used for general construction purposes.
Hollow Concrete Blocks: These blocks have a hollow core, which makes them lighter and easier to handle. They are commonly used for partition walls and infill walls.
Interlocking Blocks: These blocks are designed to fit together like puzzle pieces, without the need for mortar. They are popular for building retaining walls, landscaping, and paving.
Stabilized Soil Blocks: These blocks are made from a mixture of soil, sand, and cement. They are used for construction in areas where traditional building materials are not readily available.
Aerated Autoclaved Concrete Blocks: These blocks are made from a mixture of cement, water, and a foaming agent. They are lightweight and have good thermal insulation properties.
Glass Blocks: These blocks are made from glass and are used mainly for decorative purposes. They allow light to pass through but provide privacy.
Paving Blocks: These blocks are used for surfacing outdoor areas such as driveways, walkways, and patios. They are typically made from concrete, clay, or natural stone.
Decorative Blocks: These blocks are made from a variety of materials such as concrete, clay, and natural stone. They are used to create ornamental features such as garden walls, fountains, and statues.

Each of these types of blocks has its unique properties and applications. Block manufacturers in Nigeria and Africa can specialize in producing one or more types of blocks to meet the needs of their customers.

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The Peak Season For The Block Industry Business In Nigeria and Africa

The peak production and supply season for block industry business in Nigeria and Africa varies depending on factors such as weather, construction activities, and demand. Generally, the dry season (between November and April) is considered the peak period for block production and supply due to the favorable weather conditions. During this period, there is less rainfall, which ensures that the blocks dry faster, and there is a higher demand for construction activities, leading to increased demand for blocks.

However, there are also instances where the rainy season (between May and October) may be a peak period for block production, especially in regions with high rainfall. In such regions, the excess water can be used to moisten the blocks, and there may be less demand for blocks during the dry season.

It is essential for block industry business owners to plan their production and supply schedules according to the demand trends in their specific regions. This can be achieved by conducting market research, understanding construction activities in the area, and keeping an eye on weather patterns. By doing so, block industry businesses can optimize their production and supply chain, improve efficiency, and increase profitability.

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How To Start The Block Industry Business In Nigeria and Africa: Step-By-Step Guide

Starting a block industry business in Nigeria and Africa requires careful planning and execution. Here is a step-by-step guide to starting a block industry business:

Conduct market research: Conduct research to determine the demand for blocks in your area, the competition, and the pricing.
Develop a business plan: Develop a business plan that includes details about your business, target market, marketing strategies, equipment needed, and financial projections.
Register your business: Register your business with the relevant government agencies and obtain the necessary permits and licenses.
Acquire equipment and materials: Purchase or lease equipment needed for block production, such as a block-making machine, a mixer, and other materials such as cement, sand, and water.
Hire staff: Hire staff to help with production, sales, and accounting.
Set up production site: Choose a suitable location and set up a production site with adequate facilities, such as water and electricity supply.
Produce and sell blocks: Start production and market your blocks to potential customers.
Manage your finances: Keep accurate financial records and manage your finances effectively.

Starting a block industry business requires dedication, hard work, and careful planning. However, with the right strategies, it can be a profitable venture.

See Also: How To Write The Perfect Business Plan In Nigeria and Africa That Will Get Funded: The Complete Guide

How To Produce & Package Blocks In Nigeria or Africa

Sourcing raw materials: The first step is to source for the raw materials needed, such as cement, sand, water, and aggregates.
Mixing the materials: The next step is to mix the materials in the correct proportions to achieve the desired strength and quality of blocks. This is usually done using a concrete mixer.
Molding the blocks: Once the mixture is ready, it is poured into molds and allowed to cure for a specific period depending on the desired strength of the blocks.
Curing the blocks: The blocks are then left to cure in a cool and dry place for a few days.
Demolding the blocks: After curing, the blocks are demolded and arranged in a pattern.
Packaging the blocks: The blocks are then packaged into stacks and bound with twine or plastic wrap for easy transportation and storage.
Marketing the blocks: The final step is to market the blocks to potential customers such as builders, contractors, and individuals in need of building materials.

It is important to note that the production process may vary depending on the specific equipment and techniques used by each block producer.

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Types Of Equipment Used In The Block Industry Business In Nigeria or Africa

Here are some of the equipment that are typically used in the processing, packaging, and supply of block industry businesses in Nigeria and Africa:

Block molding machine: This is a key equipment used in the production of blocks. It is used to mold and shape the blocks according to the desired size and shape.
Vibrating table: This is used to vibrate the mold and ensure that the concrete mixture is evenly distributed and settles well.
Water pumping machine: This is used to supply water to the block making machine and other equipment during production.
Wheelbarrows: These are used to move the blocks from the production site to the storage or packaging area.
Shovels and spades: These are used to mix the sand, cement, and other ingredients used in the production of blocks.
Weighing scales: These are used to weigh the ingredients before mixing them together to ensure accuracy.
Forklifts: These are used to move and transport large quantities of blocks to their final destination.
Packaging machines: These are used to package the blocks into bags or other containers for transportation and storage.
Trucks: These are used to transport the blocks to their final destination.
Power generator: This is used to provide a backup source of electricity in case of power outages.

Having the right equipment is essential to the success of a block industry business. With the proper equipment, it becomes easier to produce high-quality blocks that meet the needs of the customers.

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Target Market For The Block Industry Business In Nigeria or Africa

Construction Industry: The construction industry is the primary target market for block industry business in Nigeria and Africa. Blocks are essential materials used for building construction, making them a significant demand in the construction industry.
Government Agencies: Government agencies are also a potential target market for block industry business. Governments are involved in several infrastructure projects such as roads, bridges, schools, hospitals, and other public buildings that require the use of blocks.
Private Developers: Private developers who build residential, commercial, and industrial properties are also a potential target market for block industry business. Private developers are a significant source of demand for blocks as they require them for their building projects.
Landscaping and Gardening Companies: Landscaping and gardening companies are also potential target markets for block industry businesses. They use blocks for various landscaping projects such as creating retaining walls, flower beds, and garden paths.
Individuals: Individuals who are building their houses or carrying out minor construction projects are also a potential target market for block industry business. These individuals may purchase blocks in small quantities for their projects.
Suppliers and Distributors: Suppliers and distributors of construction materials are also a potential target market for block industry businesses. These companies purchase blocks in large quantities and distribute them to retailers, construction companies, and individuals.

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How To Market The Block Industry Business In Nigeria or Africa

Partner with contractors: Partner with contractors and builders who are likely to use your blocks in their projects.
Setup In Construction Zones: By setting up the block industry business in a busy construction zone, you’d get a lot of customers quickly.
Cross-selling: Cross-sell your blocks with related products such as cement and sand.
Develop a website: A website is an essential tool for promoting and marketing block industry business in Nigeria and Africa. It helps you reach a wider audience and showcase your products and services.
Social media: With the increasing popularity of social media platforms like Facebook, Instagram, and Twitter, they have become effective marketing tools for businesses. You can create a social media account and share images of your products, promotions, and updates.
Referrals: Encourage satisfied customers to refer their friends, family members, and colleagues to your business. Word of mouth is a powerful marketing tool that can help increase your customer base.
Business cards: Print and distribute business cards to potential customers, builders, and contractors.
Radio advertising: Radio advertising can be an effective way to reach a larger audience in Nigeria and Africa.
Television advertising: Television advertising is a popular marketing method for larger block industry businesses in Nigeria and Africa.
Billboards: Billboards can be used to promote your block industry business in high traffic areas such as major highways, busy streets, and public transportation stations.
Flyers and posters: Distribute flyers and posters in public areas such as markets, parks, and community centers.
Local newspapers: Place advertisements in local newspapers that are read by people in your target market.
Email marketing: Send promotional emails to your customer base to inform them about your products and services.
Offer promotions and discounts: Promotions and discounts can attract new customers and encourage repeat business.
Attend industry events: Attend industry events such as trade shows and conferences to showcase your products and services.
Create a loyalty program: A loyalty program can encourage customers to choose your business over competitors.
Online marketplaces: Sell your blocks on popular online marketplaces like Jumia, Konga, and Amazon.
Vehicle branding: Use vehicle branding to promote your block industry business while on the road.
Networking: Attend networking events to meet potential customers and partners.
Search engine optimization: Optimize your website and online content to appear in search engine results for relevant keywords.
Sponsor events: Sponsor events such as community gatherings, sports events, and charity events.
Use customer reviews: Encourage satisfied customers to leave reviews on your website, social media pages, and online directories.
Offer training and education: Offer training and education sessions to builders, contractors, and construction workers to showcase the benefits of your blocks.
Offer delivery services: Offer delivery services to customers who cannot transport blocks themselves.
Provide excellent customer service: Provide excellent customer service to ensure satisfied customers who will spread the word about your business.
Use signage: Use signage on your premises to attract potential customers and inform them about your products and services

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Challenges Of The Block Industry Business In Nigeria and Africa

Lack of access to capital: Many block industry businesses in Nigeria and Africa face challenges accessing capital to start or expand their businesses. This is due to the high cost of equipment and the lack of adequate funding from financial institutions.
Inadequate infrastructure: Poor road networks and transportation systems can make it difficult to move blocks from the production site to the market, leading to delays and losses.
Power supply: Block production requires electricity, which can be unreliable or unavailable in some areas of Nigeria and Africa, leading to production delays and increased costs.
Competition: Block industry businesses face competition from both local and foreign companies, making it difficult to capture and maintain market share.
Inadequate training and education: Many block industry entrepreneurs lack adequate training and education on business management, production processes, and product quality control.
Quality control: Maintaining consistent quality standards can be a challenge due to the use of substandard materials, inadequate production processes, and limited resources.
Seasonal demand: Block industry businesses may experience low demand during certain seasons, leading to reduced profits and cash flow.
Environmental regulations: Some environmental regulations, such as restrictions on the use of certain materials, can increase production costs and limit the availability of raw materials.
Political instability: Political instability can affect the business climate in Nigeria and Africa, leading to reduced investment, limited access to capital, and increased uncertainty.
Access to technology: Limited access to modern technology can make it difficult to improve production processes, increase efficiency, and reduce costs.
Lack of government support: Government support for small businesses in Nigeria and Africa is limited, making it difficult for block industry entrepreneurs to access resources, such as funding and training.
Poor record-keeping: Inadequate record-keeping practices can make it difficult to track expenses, revenues, and profits, leading to poor decision-making.
Theft and vandalism: Theft and vandalism of equipment and materials can lead to production delays and increased costs.
Limited market: Block industry businesses may have a limited market due to a lack of demand in certain areas or limited access to distribution channels.
Inflation: Inflation can increase the cost of production, making it difficult for block industry businesses to maintain profitability.
Transportation costs: Transportation costs can be high due to poor road networks and limited access to transportation systems.
Lack of access to modern marketing channels: Many block industry businesses in Nigeria and Africa lack access to modern marketing channels, such as social media, making it difficult to reach a wider audience.
Limited access to raw materials: Limited access to raw materials, such as sand and cement, can make it difficult to maintain consistent production levels.
High cost of production equipment: The high cost of production equipment can make it difficult for new entrants to start block industry businesses in Nigeria and Africa.
Limited access to export markets: Block industry businesses in Nigeria and Africa may face challenges accessing export markets due to limited knowledge of export processes and limited access to export channels.
Limited access to credit: Many block industry entrepreneurs in Nigeria and Africa lack access to credit, making it difficult to expand their businesses or invest in new equipment.
Lack of market information: Limited access to market information can make it difficult to make informed decisions about production, pricing, and marketing strategies.
Health and safety concerns: Block production can be hazardous, and inadequate health and safety practices can lead to accidents and injuries.
Limited access to skilled labor: Limited access to skilled labor can make it difficult to maintain consistent quality standards and increase production efficiency.
Lack of industry standards: The lack of industry standards in Nigeria and Africa can make it difficult to maintain consistent quality standards and ensure product safety.

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To Sum It Up

The block industry business is a lucrative venture that offers a range of opportunities for entrepreneurs in Nigeria and Africa. With the construction industry on the rise, the demand for blocks continues to increase, making it a promising sector for investment. By understanding the various types of blocks, equipment, production process, and target markets, entrepreneurs can make informed decisions on starting and scaling their businesses.

Despite the challenges faced by the block industry business in Nigeria and Africa, including power supply, raw material sourcing, and market competition, the sector offers numerous benefits and opportunities for growth. By implementing strategies such as marketing, product diversification, and technological advancements, entrepreneurs can overcome these challenges and thrive in the industry.

In summary, the block industry business in Nigeria and Africa has significant potential for investment and growth, and with the right knowledge, resources, and strategies, entrepreneurs can establish successful ventures that contribute to the development of the construction industry and the economy at large.

See Also: How To Start A Business In Nigeria and Africa: The Complete Guide

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What are your thoughts on how to start a Block Industry Business in Nigeria and Africa? Let me know by leaving a comment below.

Starting a Block Industry May Be Your Road Map to Profitable Business

Block making, commonly known as block industry in Nigeria, is a very profitable venture. Gone are the days, people see it as a vocation for the uneducated and unskilled ones .

Far from it!

Whether you are a school dropout, a university graduate, a professional or a retiree looking for profitable business to engage in; block making is a venture to consider.

And the best part is that it is scalable; that is, you can start small and grow big with time.

You can also start big if you have the financial capacity and still grow it to become bigger.

Why is block industry growing rapidly?

The simple reason is: rising population and increasing housing needs.

Nigeria’s population is about 213 million people (2021 est) and growing at 4% yearly. Again, the country is rapidly urbanizing with almost half of the inhabitants living in cities. And according to some studies, by 2050, seventy-five percent of the population will be urban based.

Any wonder there is pressure on shelter.

The National Bureau of Statistics puts housing deficit at over 17 million units and will need an investment of NGN60 trillion to cover this wide gap.

The need for housing is pervasive; including shelter (residential accommodation), recreation, offices, places of worship, markets, schools, shopping malls, hotels, parks, amongst others. An essential component used in the construction of these properties is cement concrete block. For this reason blocks are always in high demand.

However, qaulity blocks is in short supply.

It therefore provides a good opportunity for investment. If you have ever thought of taking advantage of the ever expanding real estate sector, consider investing in block industry.

What is Involved

A block industry is a facility set up to mould blocks of various sizes in large quantities. And then, selling to people who are building houses or contractors handling construction projects of different forms.

Cement blocks can either be solid or hollow. However, hollow blocks are most popular and commonly used for housing construction in Nigeria.

The block making plant considered here is one that produces hollow concrete blocks of 9 and 6 inches. The major raw materials required are sand, cement and water. Cement is the binder.

Bigger factories may produce all types of blocks including hollow blocks, solid bricks, interlocking, curbstones, slabs, retaining walls, etc. The production of these require the use of a multi-functional block making machine.

Block Industry Set Up

Block making can be labour intensive. Or capital intensive. Thus, it is your level of investment that determines your scale of operation. For a labour intensive set up, what you need is a manual mould. And a large part of the production process, from mixing to moulding will be handled by human labour.

A manual set up can be enhanced by the adoption of a manually operated machine. Many of the block industries you see around are set up this way.

The process can also be semi-automated. In this case, part of the production process is manually carried out and other parts handled by machine. In a semi-automated process, the moulds are fed into the machine and the blocks are vibrated mechanically. The output of a semi-automated process is far higher than that of manual process.

There is also a fully automated process which requires investment in automated concrete block making equipment. In this model, the process of block making is completely automated. Once the sand, cement and water is fed into the machine in the right ratio, the machine takes the materials through the process of mixing and moulding automatically.

However setting up a complete automated line of block making plant with sophisticated equipment in a large expanse of land will require much more investment. On this scale, it is a very capital intensive venture.

How Much Do You Need to Start?

My goal in this blog is to help visitors/readers identify interesting and lucrative small scale business and investment opportunities . Businesses they can start with small amount of money. Block industry is one of such ventures.

Given the current rate of inflation, with an investment of N1,200,000 or even less, you can set up a manual block industry, using a manually operated machine. This is assuming you already have a vacant land. On this scale you will be producing between 200 to 500 blocks per day depending on your strength or number of labour you employ.

Such a small scale block industry can be making as much as N20,000 in daily profit if you are able to develop a ready market. This will translate to N120,000 per week for a six day working week and N480,000 per month net of all expenses.

Isn’t that cool?

This ebook Block Industry Business Manual shows you everything you need to know about starting and running a block making factory. Get it from our shop here

What You Will Need to Establish Your Block Industry

This is the number one thing you will need to establish a block industry. A piece of land measuring 600 sq.m will be enough for a beginner. You can either buy the land outright if you can afford to, or rent it or even partner with land owners. However, in acquiring your land, you must give consideration to the topography. Don’t site your block making business in a water logged area or swampy environment.

This will affect your business because your block will continually be moist, or can be carried away by erosion. Most importantly delivery will be affected because vehicles may find it difficult accessing your site to pick your blocks. For this reason, ensure that your plant is located on a dry land.

#2. Moulding Machine

After land, the block moulding machine, is the most important piece of equipment you will have to acquire to set up your block industry. There are locally fabricated machines that are manually operated. There are also automatic moulding machines and multifunctional machines that can be imported from China, India, Germany, etc. The type of machine you install depends on the scale you want to operate..

#3. Standard Source of Power

You will need regular power supply to keep your vibrating moulding machine running. A diesel generator is highly desirable. Most operators use Lister engine. We hope there will be a time in Nigeria where entrepreneurs will no longer need to provide their own source of power.

#4. Construct a Shed

You will have to construct a shed to house your block moulder and your Lister Engine. This will protect these equipment from rain. The shed is a simple structure with four beams and without block walls but covered with a roof. If you have the resources, you can carve out an area with block walls within the shed to serve as your office, changing room for staff and a store to keep your raw materials, particularly cement.

#5. Source of Water

Water is a very crucial material in the production of concrete blocks and you will be needing it in very large quantity and regularly too. Water is needed to mix the cement and sand as well as to sprinkle on the moulded blocks to enhance its hardness. The best strategy is to dig a well in your site for regular water supply. If you have the resources then sink a borehole but a dug well will serve the purpose adequately.

#6. Overhead Water Tank

You will need an overhead water tank to collect water from the source for ease of use.

#7. Pumping Machine

This pumps water from the Well or bore hole to the overhead water tank, ready for use.

#8. Delivery Truck

An open pick-up vehicle is adequate to serve as your delivery van. You will need this van to enable you deliver products to your customers at their sites. A serviceable fairly used vehicle can serve this purpose and as you scale up your operations, you can acquire a suitable truck.

In this estimate, I have made delivery truck optional for a small scale operator. This is due to the assumption that the reader of this post is operating on a tight budget. So you can begin by rentin vans to or trucks to deliver products to your customers. Later when you have achieved some scale, you can consider adding a deliery truck.

#9. Wooden Pallets

Get a carpenter to construct wooden pallets for carrying blocks to the drying/curing place. Construct, as many as possible, depending on the capacity of your plant.

Other Equipment

You may also need a mixer. Other equipment you will certainly buy include: head pans, shovels, wheel barrow, head pans and water hose. The quantity you will buy will depend on the scale of your production and the number of hands working on your facility. These items are easily available at any hardware store or building material market around.

Success Factors

A key success factor in this business is to locate your industry in a rapidly developing area with a lot construction works going on. This will not only ensure regular demand for your products but also make delivery easy because most of the people that will be buying from you are those building around your location.

It is also essential to locate your block making factory on a dry land to avoid flood destroying your blocks and other raw materials, such as cement and sand. So it is important that before you set up your factory, you do a detail study of the environment to ascertain both the commercial and technical viability of your project.

Your success will largely depend on your organization skills, your capacity to reach out to bricklayers, building contractors and other people in charge of building projects. Reach it to these people and get them to patronize you with whatever incentive you can offer.

You will also have to make arrangement for regular supply of the materials you will need, especially cement and sand. There is nothing as bad as not being able to meet order because you are not able to source materials. You should develop good relationship with cement and sand suppliers so such that you can get these items on a single phone call whether or not you have the money to pay immediately.

Manpower Needs

You will use mostly daily paid labour. But will also need to hire experience workers to operate the moulding machine as well as the sand and cement mixer. For these processes, you will need people who have some experience to know the right mix of material to produce the quality of blocks required.

Depending on your scale, you will need an admin and account staff to help organize things around and liaise externally on corporate matters as well as keep the books. You may need a marketing person to manage relationship and develop business. Of course, you can confidently handle this function as the entrepreneur if you have the necessary skills. Or if you are operating on bootstrap.

Very important is the services of a security guard to man the entire facility. This is important because your block making facility is usually an open space. Hence the need for somebody with the responsibility.

The security guard will secure unsold blocks, unused materials and prevent vandalization of your equipment.

Final Words

Every business start up needs careful planning to ensure an enduring success. Would you need any help in your planning? Feel free to contact us at kobotalk. We can help develop a block industry business plan, source and procure good block moulding machine and help out with business registration.

These are some of the services we render at a cost very friendly to your economy.

To your success as always!

Buchi creates content and leads the Team at Kobotalk Management Services; a business development and investment consultancy firm. He provides strategic advisory to help SME's, small business owners and HNI's grow profitable business and make informed investing decisions.

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27 Comments on “Starting a Block Industry May Be Your Road Map to Profitable Business”

Cool idea, thanks so much sir I’m about to start this business now but only with little idea and I will be glad if you can help me through the process sir by getting me standard business plan for the beginner to guide me through the process and growing the business sir thanks.

Pls. I will need to know the basic types of equipments I will need to have a block making business thank you.

The major equipment is the Block moulding machine, Lister Engine, Wooden Pallets. These are mentioned in the article

Can you please prepare for me a business plan that can help me source for funds in my Real Estate business?

Yes, we can prepare a business plan you can use to source funds from investors or get loans from banks and development finance institutions. Call or whatsapp me 08122292208 for terms.

I need a business plan for block production industry (Small scale)

Aliyu, chat me up via WhatsApp 08122292208. You may also call, let’s discuss your business plan

i found this very interesting and educative actually am into real Estate but because the salary earning is not enough to take care of my needs am looking forward to invest in block industry i want to ask if this business is good for lady i will also like to have the idea of the price of Automatic machine for mouding the block

Of course, ladies can do block making business. Employ some unskilled labour to do the hard part while you concentrate on strategy, administration and business development. Prices of machines do vary depending on the brand and whether you are going for new or refurbished. But generally an investment of NGN700,000 can get you a good machine you can use to start your business on a small scale.

Do your viability analysis and plan carefully. Good luck

Please I need a comprehensive block making business plan. Reply Asap via Email

Dear sir, I write to appreciate the of your ideas on block making industry. It is so impressing and inspiring. I am a graduate of English Language. I have long desired to venture into the business but am still trusting God for capital to start. I will greatly appreciate if you could help me with the business plan to access funds/ loan. Thanks for impacting life. I await your response sir.

Dear Sir I write to appreciate the soundness of your ideas on block making machine. Am deeply impressed and inspired. Am a graduate of English language but I have long desired to venture into the business but capital incapacitated me. Neither did it occurred y me that I can access loan with good business plan until I read your blog comments. Thus, I will greatly appreciate if you could help me with a business plan to access loan to start off. Thanks for impacting lives with this idea . I will await your prompt response sir. Thank you sir.

Very glad you find the content helpful. Thank you for your kind words.

Yes, we can help develop an investor and bank grade business plan. This you could use to approach investors to invest in your idea or apply for Intervention Funds or loans from BOI, DBN, etc.

However, our business plan writing is a paid service. If you are seriously considering this service, call or WhatsApp me. 08122292208

I found this interested sir, I will get back to you as soon as im ready, Thank you sir

You’re welcome Olise. I’ll be glad to hear from you.

This is quite an educative and practical process and procedures involved in starting a block making business. My question. Can you prepared a business plan for me on block making business,as a guide.? I have over N1m to invest.

Glad you find this content helpful. Yes, preparation of business plans is one of the services I offer. Call me – 08122292208

Please, is it possible to start a block industry with say #400,000?

Please, What is the approximate amount one can use to start a block industry business ?

The scale of your operation will determine how much you will need to invest.

But let’s assume the least of scales. Let’s also assume you already have a space (land), then N500, 000 will get you started.

With that level of investment, your operation will be semi-manual.

You can start with locally fabricated equipment and a refurbished lister engine. This scale will also mean you will not have a delivery vehicle.

The best practice however is to conduct a market study and prepare a business plan. That way you are able to consider all aspects of your business and get a more accurate estimate of how much you need to invest.

Your Ideas, Steps and business plan model are very much impressive.

Please I want to start block industry and I only have #300,000.

#300,000 may not be enough to start with, especially if you do not have a land/space already. To start on a tight budget, you should be looking at a minimum of #600,000 minus the cost of land and that is assuming you will start with used locally fabricated machine. You may also have to work out credit arrangement with suppliers of sand and cement to ease your cashflow.

I am Ezeigbo Cajetan by name,a graduate of Civil Engineering from Imo state.

As an unemployed graduate engineer,I have come up with an idea of going into block moulding industry despite that I don’t have the capital but it is one of the dream businesses I would like to venture into.

I don’t have a proposal on this and I wish you can help with me with one which I may use to access loan or grant to start up this business

I wait as well wish to know the current prices of block moulding vibrating machines. Thank for your understand

Your plan to start a block making business is a sound one.

Yes, I can help you with a business plan or proposal to enable you access loans from institutions like BOI or DBN and such other institutions.

Why not send me an email to let me have a good understanding of what you need and how you want me to help. My email address is [email protected] .

Hope to read from you soon.

Dear Sir I see your company’s website is engaged in the construction industry. We are a supplier of the Block Machine. We have specialized in block machine more than 35years. The scope of us:

1) Small block machine (i.e LMT4-40, QMJ4-30, QMJ4-45 …etc) 2) Small block machine production line (i.e LMT4-35, QTJ4-26, QT3-20 ) 3) Fully automatic production line (i.e QT4, QT6, QT8, QT10, QT12) 4) Clay interlocking block machine (M7MI, M7A2…ect) 5) Egg laying block machine (QMY6.QMY8.QMY10) 6) Automatic fly ash brick making machine

You can reply to my email address to get product catalog

Email:[email protected] Block Making Machine Products: https://www.block-machine.net/products/

Any interesting, please let me know, the technical solution will provide for you soon

Best regards

Jimmy Sales Manager

*If you are not interested. Please delete it *

Thank you Jimmy for visiting our site. We are not in the business of block making. We provide information on business and entrepreneurship through this blog and also consult in this area. We are certain that some readers of this blog may be interested in your services and will contact you if they found you are a genuine supplier of the equipment you mentioned.

Block Industry Business

Block Industry

Block Industry Business Plan – On daily basis, factories, offices and residential houses are erected. This is why a block moulding industry is a venture that yields good profit as there is an increasing demand for cement blocks from individuals, the government, companies, multi-national contractors, etc, for building purposes.

Table of content Page Executive Summary 3 Introduction 4 Business Description 5 Products and services 7 Market Research 8 Competitor Analysis 11 Sales and Marketing Plan 12 Operational Plan 13 Management and Structure 15 Financial Plan and Projections 18

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Executive Summary ABC BLOCKS is a business involved in the manufacturing of building concrete, bricks and blocks for masonry, builders association, housing consultant, development agencies, construction workers etc.

We make block of uniform quality and sell them at a price high enough to cover costs and make a reasonable profit.

Cement concrete blocks are modern construction materials and as such are use in all the construction viz: residential, commercial, and industrial building construction.

The business is owned by Moses Daniel with over 15 years experience in Block making and construction works industry.

The project set up cost is N5 million using imported machines. The project is very profitable. With aggressive marketing strategies, good management, and the payback period would be less than 2 years. The return on investment is very encouraging at 25 per cent of profit.

We forecasted a 40% market share. The business will generate a very high gross margin and a modest net margin after year one and comfortable margin after year three. By year three the business will have developed a respectable yearly net profit.

INTRODUCTION Business Opportunity The increasing need to build new residential houses, factories and offices to accommodate Nigeria’s large population has made cement block production a very lucrative business in the country. Over the last 10 years, building and construction sector has undergone strong growth rates in the range of 8-10% in Nigeria (Source: National Bureau of Statistics, 2013). Housing and construction is one of the major drivers of growth in more than 40 allied industries, the cement block industry included. Demand for cement blocks has also risen tremendously as a result of the demand for it in the housing and construction industry. In addition to this, there is also increasing demand of cement blocks from government and multi-national contractors for building purposes. A potential cement block producer must have a good level of patience and must have time for the job. He must also know or be willing to know about building business, as this will help a great deal and increase his profitability in the long run. Also, the business owner must have good networking relationship with individuals and corporate customers; he must possess the necessary skills to:

Manufacture concrete blocks with highest quality cement that dries quickly for commercial production, Recruit skilled workforce, Set up the business on a dry land, Ensure availability of truck to deliver goods to customers’ desired location, Provide reliable and durable equipment for the successful operation of the business Ironically, the market is still relatively small. There is strong competition, and the cost of preparing cement block is high. The industry is also affected by non-availability of modern machinery in the local market at an affordable rate. Local customs traditions, and non-availability of infrastructural facilities are also other major hurdles in the development of the sector. The main risks associated with the business include inability of production staff to wet the blocks on the second day of production thereby preventing the blocks to command high market value, frequent rainfall to prevent blocks to congeal as at when due and inability to service vibrating machine regularly. Volatility of the price of cement is a huge threat in the blocking making industry. However, the business owner should ensure close supervision of production staff and regular servicing of vibrating block molding machine. As a start-up business, the categories of cement blocks for production are four inches block, six inches block and nine inches block. The business is expected to be registered with all the relevant agencies such as Corporate Affairs Commission and Concrete Blocks Manufacturer Association of Nigeria. The business is starting up with =N=5,000,000 (five million naira) in cash part of which would be used to finance fixed assets, expenses and other running cost.

Business Description ABC BLOCKS is a business involved in the manufacturing of building concrete, bricks and blocks for masonry, builders association, housing consultant, development agencies, construction workers etc.

Cement concrete blocks are modern construction materials and as such are use in all the construction viz: residential, commercial, and industrial building construction Form of business: A sole proprietorship. Owner of business: Moses Daniel State of business: The business is a new business Opening days: Mondays – Saturdays 8am- 6pm Business Development Consultant: Emeka Njoku (MBA, PMP) Hundred And Five Academy

Legal Adviser: Barister ****** Board of Directors: Isiaah ***** Oludare ***** Bunmi ***** Folashade ******

Our Vision Too be among the top 3 BLOCK Making company in Nigeria by 2025

Our Objective Constant growth in sales in 12 months. To generate customer satisfaction so that at least 60% of our customer base is repeat business. To provide quality product at reasonable prices with exemplary services.

Our Goal – To be a one stop-shop for building materials in Nigeria – To run business as a profitably

– Our Mission To exceed the customers’ expectations in every sense by providing quality produce in a sustainable way.

-Success Factor

Land Most Block Industry owners do not own the land they work from. It mostly belongs to farmers who they pay a lease to. Make sure you are close to a water source like river,stream or water way or dig a well. Water is the life blood of the business. Do not under any circumstance entertain the idea of buying water or the business will crash before it takes of!

2.Machinery You need a Lister engine. These are very expensive, so you want to source for the most affordable you can find.This normally means travelling out of town to buy one. You need a moulding machine. This is what shapes your blocks. These are made to order by local manufacturers. You need a Water Pumping Machine(Looks like a small generator) This brings in water from your source.

3. Materials You need wooden pallets.This is where your blocks stay to dry out after moulding.Bought from local makers. Start with a few hundred pieces (200-500 pieces). You need also 1 x Wheel Barrow 2 x Shovels 2 x Metal drums(To house water for your machines during moulding.) 2 x Security chains to secure items when you leave site.

4.Storage You have two options. Buy wood from the market and ask a carpenter to construct a small hut for you. Alternatively and more expensively you can buy a disused shipping container and convert. This is to store your items like unused bags of cement when you leave for the day.

5. Daily operation It’s profitable depending on a few factors. Location: For obvious reasons Season: During rainy season contructions all over the country slow down meaning less need to buy blocks and less business. Inflation: When a bag of cement rises or falls it affects your ability to mold and customers ability to build or buy blocks for doing so. Capital: The business is very cash intensive.

Every thing you do you will have to pay upfront whilst waiting for sale to recoup cost and profit. This includes the machine operator and labourers who are all paid per block and types of block(there are two types) and on the day! This includes your sand delivery which is paid upfront. This includes your bags of cement which you obviously buy upfront too. Production capacity- Our capacity to produce is a key success factor in this industry. Supply of labour- Access to labour will impact the success of the business greatly.

Product /services Manufacturing of building concrete, bricks and blocks for masonry, builders association, housing consultant, development agencies, construction workers etc.

9” Block 6” Block-

Cement- Interlocking- The benefits of my products and services are

My product is highly needed in the building and construction sector in order to tackle the problem of building collapse cases in my society by producing concrete blocks that are qualitative, durable and strong when compared to the ones being produced by my competitors. The quality, solidity, reliability, packaging and delivery of my product is one of the benefits that makes it to stand out and unique from the ones being produced for sales by my competitors.

COMPETITIVE ADVANTAGE Most people in the industry produce an average of 50 9” blocks from one bag of cement which makes block not to be strong enough for building construction and which consequently leads to building collapse My innovation is to produce 36 solid brocks from a cement which makes it last long.

Despite this high demand for concrete blocks, which makes the business a very lucrative one, the government and high authorities in various countries still advocate that builders should use only certified building materials, of which solid concrete blocks are part of, to ensure that calamities such as the collapse of buildings are avoided.

This is why a potential cement block producer has to be willing to know about the business as this will help a great deal and increase his profitability in the long run.

So if you are interested in owning your own concrete block industry , below are some of the basic tips you need to know, so as to be very successful.

Concrete Cement Block Moulding Industry Business Tips

The first step is to conduct a proper market survey. You cannot just go into a business with out of having a substantive knowledge about it, this is the reason for the market survey as it enables you to know the ways to start up, the cost of recruiting skilled workforce, know equipment that can be reliable and durable amongst other things. All this information can be gotten by reading relevant books, surfing the internet and visiting some notable block moulding industries you can have access to.

The concrete block moulding business , is not one you can run from the comfort of your home. This makes proper documentation and licencsing of the business with the relevant agencies such as Corporate Affairs Commission and Concrete Block Manufacture Association of Nigeria, very necessary.

You also need training, so you can have a firsthand knowledge about the business you are going into, and already existing block moulding industries can be of assistance.

For a place to locate your business, you need a place that can be easily accessible. You also need to consider your proximity to water supply but ensure that the place is not swampy or prone to flood.

Equipments needed for the concrete block moulding business includes; a block processing machine, a sound leister generator, a truck and wooden pallets. If you don’t have enough capital to go for brand new ones, you could opt for the fairly used ones as long as they are reliable for the successful operation of the business. Then as you start making your profits, you could get new ones.

You must not employ a lot of workers when you are beginning your business. You could start with a minimum of five workers, which would mean having two mixers, two carriers and one operator, you can then expand this number as your business grows, but ensure that your workers however small are skillful and diligent.

For the sake of the success of your business and for the sake of your customers, you need to manufacture concrete blocks with highest quality cement that dries quickly for commercial production. This is because every buyer looks out for solid blocks that are of high quality. So your workers have to be aware of the fact, that the quality of the block is paramount and should not be compromised. This will also help to boost your business as it would attract and keep customers for you.

Building Materials
Aluminum Doors and Windows Business
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By BPN Staff

Requirements And Cost Of Starting A Block Industry In Nigeria

Block industry is among the most popular business to invest in Nigeria. There is a rapid increase in building of new residential houses, offices, factorys and other new buildings which requires block, This has made block industry a lucrative business in Nigeria.

Starting your own block industry in Nigeria will give you the opportunity to be your own boss and set your own hours, but there are things you need to do in order to keep your business on the right track.

The construction industry is booming right now in Nigeria, Every construction business needs blocks for it to be complete. If you are thinking of starting a block industry in Nigeria this article will give you a detailed guide to get started.

Steps For Starting Up A Block Industry

Here are 8 steps to help you start a block industry in Nigeria:

1. Write A Business Plan

Creating a business plan will help you determine your business goals and guidelines needed to meet those goals.

The first step you need to take is to get an expert to create a valid block industry business plan for you. A poor business plan will fail to deliver that’s why you need a professional business plan from an expert.

Plans for a block making Industries also emphasizes who will run the industry, types of blocks and quantity of blocks to be manufactured and how it will be sold.

A block making business plan also outlines where you get sand and raw materials for molding. In fact your business plan should define your business structure, marketing strategy, finances and your competition’s.

2. Get The Right Qualifications And Training

One of the requirements needed before setting up a cement block industry is getting the right training. You need to get qualified. If you don’t have any formal training in the construction industry then you should consider getting trained by a professional block moulding companies or individuals.

It is also a good idea to partake in some block moulding work so as to practice your skills.

If you already have experience about the pros and cons involved in block molding then work with your skills/experience and establish a professional block industry.

The capital needed to establish a block industry is very huge. When budgeting your capitals, you should consider the cost of securing lands, buying equipments, raw materials, borehole opening, fee for labourers. Indeed, block industry is capital intensive.

At this point you have to look for money to fund your business.

You can as well check if you can get any funds from government from their schemes in order to offer financial assistance to your industry. There are so many alternatives to get the necessary finance like approaching your banks, crowd funders, etc.

4. Find A Suitable Location

You now have to consider where your block industry will be located at. With a block industry business you need a good location with space to occupy your equipments, materials and blocks.

However, it is best to look for a suitable location that can be accessible to your customers at anytime. Imagine a location where transport can’t come in to buy or carry blocks, That’s too bad.

5. Register Your Block Industry Business

Before you start operating as a block industry in Nigeria, you need to try as much as possible to make your business legal by registering your business with the Corporate Affairs Commission (CAC).

After the business registration, apply for permits and licences. You need to contact your local government in order to find out what permits and licences are legally required for you to operate as a block industry. This will also be a great opportunity to join a good block moulding associations.

6. Buy The Necessary Equipment Needed

It is time to equip your business with the required tools and equipment like head pan, shovels, cement mixer, cement molder, generator, supply trucks, wheelbarrow, cement block carrier, security chains, etc. Depending on your budget, you may decide to buy or to lease but the best advice is to buy equipments rather than leasing.

You will also need to drill boreholes for your blocking making business because you need a more of water to make blocks, watering blocks and other activities that will need water. In all, just make sure there is source for water supply.

However, if your capital is not enough to drill boreholes, you can source your water from tankers that supplies water. You will also need to evaluate the shops where you can be buying your cement, Also find a reliable source of sand for molding.

7. Hire Experienced Workers

To run a successful block moulding business, you will need to employ people who have the knowledge of moulding blocks. Here are some of the personnel’s needed: loaders, drivers, mixers, machine operators e.t.c.

8. Promote Your Business

Now that’s your block industry is up and running, your new focus should be about getting more and more customers. A good way to achieve that is through promotion of your business.

Cost Of Starting A Block Industry In Nigeria

Based on the processes of starting a block industry in Nigeria which was discussed above, cost of starting a block industry in Nigeria is hard to estimate due to some certain factors like location, equipment and raw material’s sources.

But with some calculations you are likely to start a block industry in Nigeria with $15,000 on an average scale. You should know that you can spend more or less depending on scale factors.

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Business Plan for Block Moulding Industry in Nigeria

Executive Summary

A. INTRODUCTION

Management Team

Personal goals

Business goals

B. M ARKETING ANALYSIS

Sales forecast

Marketing Actions to achieve objectives

C. ORGANIZATIONAL AND HUMAN RESOURCES PLAN

Personnel Department

Marketing Department

Number of Employees Needed

Employee Welfare Programme

Cash Flow Forecast

D. FINANCIAL PLAN

Estimates of Capital expenditure needs

E. CONCLUSION

EXECUTIVE SUMMARY

MZWRITERS BLOCK MOLDING INDUSTRY is a sole proprietorship business owned by Mr. Mzwriters. The office is located No 12, Road 5, Lugbe, FCT, Abuja as a sole proprietorship business. The nature of business can be described as a block production industry. This means the organization is saddled with the responsibility molding and offering for sale quality and modern blocks, that are used in building houses, and can also carry out all related contracts.

Provision of good quality blocks to our numerous customers.

Our vision is aiming to be the best block producer and general contractor in the State.

DATE OF COMMENCEMENT

Commencement date of business activities is January, 2020.

MOTTO: “Truthfulness and honesty”

INVESTMENT COST: The total investment cost of the Business shall be a sum of N 2,200,000.00, which will cover overhead cost, recurrent and capital expenditures.

INTRODUCTION

MZWRITERS BLOCK MOULDING INDUSTRY is is located No12, Road 5, Lugbe, FCT, Abuja as a sole proprietorship business. It works as a producer of cement and concrete block, by so doing, we manufacture different types and sizes of cement block for building and masonry purposes. We work with builders association, civil engineers and building consultants, housing and development agencies and construction experts/personnel in delivering quality cement and concrete block suitable for their needs and compatible with the environmental condition of Nigeria. We make blocks of uniform quality and sell at a reasonable price and cover the production cost while we also make satisfactory profit high enough to maintain the survival of the business. The future prospect of the business is to:

Be the block molding firm of first choice who produces excellent cement concrete blocks that will be used in erecting residential, industrial and commercial building projects that will meet the need of the clients and the society.
Aiming to be the best concrete block producer and contractor that will win the heart of the public in the FCT.

Managing director – Mr Mzwriters

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COMMENTS

How To Start A Successful Block Industry Business In Nigeria
Once the whole material and equipment are set, the next thing is to start making the blocks. This requires mixing a proportion of cement, sand, and gravel with water. There's a certain number of blocks that can be made from a bag of cement; about 35 - 40 (9 inches), 50 - 55 (6 inches), and 60 - 65 (4 inches) blocks.
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6. Employ Workers. You can start with a minimum of five workers and then expand as the business expands. This would mean having two mixers, two carriers and one operator. This can be pulled off from one moulding point and by the time you increase your sites and production you would definitely need to get more hands. 7.
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Block industry business is one of the most lucrative ventures in Nigeria and Africa, with a high demand for building materials to meet the rapid urbanization and construction boom in the region. According to the National Bureau of Statistics, the Nigerian construction industry grew by 1.74% in the fourth quarter of 2020, indicating a steady
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Block Industry. Block Industry Business Plan - On daily basis, factories, offices and residential houses are erected. This is why a block moulding industry is a venture that yields good profit as there is an increasing demand for cement blocks from individuals, the government, companies, multi-national contractors, etc, for building purposes. ...
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Here are 8 steps to help you start a block industry in Nigeria: 1. Write A Business Plan. Creating a business plan will help you determine your business goals and guidelines needed to meet those goals. The first step you need to take is to get an expert to create a valid block industry business plan for you.
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INTRODUCTION Business Opportunity The increasing need to build new residential houses, factories and offices to accommodate Nigeria's large population has made cement block production a very lucrative business in the country. Over the last 10 years, building and construction sector has undergone strong growth rates in the range of 8-10% in Nigeria (Source: National Bureau of Statistics, 2013).
Business Plan for Block Moulding Industry in Nigeria
MZWRITERS BLOCK MOULDING INDUSTRY is is located No12, Road 5, Lugbe, FCT, Abuja as a sole proprietorship business. It works as a producer of cement and concrete block, by so doing, we manufacture different types and sizes of cement block for building and masonry purposes. We work with builders association, civil engineers and building ...
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How To Start A Successful Block Industry Business In Nigeria

Block Industry Business

Create A Business Plan

Register Your Business

Startup Capital

Step By Step Plan On How To Start Block Industry Business

Water System

Human Resource

Sand And Cement

Make Blocks

Tips On How To Successfully Operate

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Complete Block Industry Business Plan in Nigeria

Introduction:

Executive-Summary-Complete -Block-Industry-Business-Plan-in-Nigeria.

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Complete Block Industry Business Plan – Management Team:

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How To Start A Lucrative Block Industry Business In Nigeria and Africa: The Complete Guide

What Is Block?

What Is The Block Industry Business In Nigeria and Africa About?

Benefits of The Block Industry Business In Nigeria and Africa

Business Opportunities In The Block Industry Business In Nigeria and Africa

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Types Of Block Industry Businesses In Nigeria and Africa

Types of Blocks

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How To Start The Block Industry Business In Nigeria and Africa: Step-By-Step Guide

How To Produce & Package Blocks In Nigeria or Africa

Types Of Equipment Used In The Block Industry Business In Nigeria or Africa

Target Market For The Block Industry Business In Nigeria or Africa

How To Market The Block Industry Business In Nigeria or Africa

Challenges Of The Block Industry Business In Nigeria and Africa

To Sum It Up

What are your thoughts on how to start a Block Industry Business in Nigeria and Africa? Let me know by leaving a comment below.

Starting a Block Industry May Be Your Road Map to Profitable Business

Why is block industry growing rapidly?

What is Involved

Block Industry Set Up

How Much Do You Need to Start?

What You Will Need to Establish Your Block Industry

#2. Moulding Machine

#3. Standard Source of Power

#4. Construct a Shed

#5. Source of Water

#6. Overhead Water Tank

#7. Pumping Machine

#8. Delivery Truck

#9. Wooden Pallets

Other Equipment

Success Factors

Manpower Needs

Final Words

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