How To Commence A Bakery Business In Nigeria – The bakery business is very lucrative in Nigeria. Nigerians eat a lot of cooked food, especially bread. Bread is a common staple in many Nigerian households. Adults and children see bread in Nigeria as the quickest and easiest food to eat with a drink or other food such as moimoi, akara, or butter. Bread that is eaten as a meal does not require any preparation for the consumer. Nigerians also celebrate birthdays, weddings, etc. They love cakes.
Millions of Nigerians eat bread every day, regardless of their tribe, creed, or gender. Therefore, your choice to start a bakery business in Nigeria is a wise and profitable decision. Here is a complete guide to starting a bakery business in Nigeria.
How To Commence A Bakery Business In Nigeria
1. Start with market research
The first step in starting a bakery business in Nigeria is thorough market research. This is where you need to find the best bakery to start with, as there is more.
The best way to start is to find out how much each kitchen equipment and material costs, as well as draw some conclusions about how to research how to get the best training. Also, the laws governing bakeries in Nigeria, what associations should you join and what licenses do you need to get started?
To accomplish all of this, the best thing you can do is meet and interact with a baker or bakery owner in your area and do some research. Don’t forget to let them know you’ll be back for continued training.
2. Decide the type of bakery you want to open
During the market research phase, you will learn what kind of bakery business you can start in Nigeria. Now is the time to decide which one is best for you.
Your decision should be based on startup costs, profitability, and how easy the job is based on your personality/lifestyle. Take a look at some bakery niches below.
- Traditional bakery: This mainly involves baking loaves of bread. It is the most popular bakery in Nigeria.
- Pastry Bakery: Puff pastry, doughnuts, china, etc. Specializes in cooking small meatballs.
- Speciality Bakery: It consists of baking certain types of bakery products. Although it is mainly engaged in pastry in Nigeria.
- Home Bakery: This allows you to start making any baked good from your kitchen and sell it online or deliver it at an event.
3. Get Some Training
Once you know what type of bakery business you want to start, the next step is to get trained. Unlike a baker, you don’t need a lot of education, but you do need to learn more about baking for business purposes. This is because cooking for yourself, your family or your friends is different from cooking for sale.
To get trained, you need to go to the bakery and ask the owner to take you on as an apprentice, not an employee. That way, you’ll learn more about the whole business, not just your culinary skills.
There are also some personal trainers that you can learn from. You can also enroll in a cooking school to learn how to cook at a beginner level, although it takes time.
4. Create a simple business plan
Whether you want to start small or large, or whatever type of bakery business you want to start, you want to have a business plan that serves as your roadmap to success.
In your business plan, you should outline your goals, as well as your growth and financing goals, both short-term and long-term. This will make your work safer.
5. Get Your Business Registered
Unlike other businesses that can be opened without any registration, you need to register your business to start cooking and selling cooked food in Nigeria.
Registration starts with AMBB and NAFDAC. All companies that produce consumer goods must register with NAFDAC to ensure the quality and safety of the products they consume.
You will also need to register your business with the CAC and join a local or state bakery owners association to obtain all the necessary licenses and certifications to run your business smoothly.
6. Find a place for your bakery business
You need a place for your business. This is where your oven will be installed and where all the cooking and production will take place. If you have more capital, you can rent a warehouse or build a bakery from scratch.
7. Get all the Necessary Equipment
After preparing the space for the business, the next step is to purchase all the necessary materials and equipment to start producing all kinds of bakery products.
It costs a lot of money to get equipment and you need to research the best type and what to buy. Some of the necessary equipment and materials are:
- Dough proofer
- Wood Top Work Table
- Racks and baking sheets
- Flour Sifters
- Proof boxes
- Baking Ingredients
Keep in mind that the supplies you need will depend on the type of bakery business you want to start with. It is recommended that you meet with your instructor to get some tips and go shopping together.
8. Employ Workers
Unless you want to start a home bakery or cook small empanadas on a small scale, you don’t need to hire employees. If you visit a traditional bakery, you will find that there are at least five employees in charge of different tasks.
You need to recruit not only ordinary people but also bakers. This helps you increase the efficiency of your business because you have time to focus on some important parts of your business, including marketing and sales. You can also hire workers to do some minor tasks in the bakery, like washing dishes and packing products.
9. Start Production
After procuring all the necessary materials and supplies and hiring workers, the next step is to start production. This is one of the most important parts of the job. To ensure the best product, you need to closely monitor and pay attention to the production process.
Remember that your production environment must be clean and your products must have hygienic packaging. Plus, monitor daily production to ensure good management and quickly flag if adjustments are needed.
10. Market your product
After manufacturing, the next and final step in starting a bakery business in Nigeria is marketing. You must make marketing your top priority because the main reason for production is to increase sales.
From promoting your business and products individually to wholesalers and retailers to paid advertising both online and offline, there are many ways to market your Nigerian bakery business.
As a beginner, the word-of-mouth strategy works well because you meet potential customers face-to-face and convince them to become your boss. You can also encourage your friends, family, neighbors, and most importantly, your current customers to help you market your products to a wider audience.
Challenges of the Nigerian Bakery Industry
1. Low-profit margins
You are probably dealing with low margins and it is due to persistently high inflation.
2. Increased competition
The number of bakeries has increased lately and this can be seen especially if you are in major commercial cities like Lagos, Abuja, and Port Harcourt. Too much competition reduces profits and sales volume.
3. Poor business environment
It is certainly common knowledge that doing business in Nigeria is difficult due to inadequate infrastructure, high inflation, double taxation, and lack of government support.
4. Reduced income levels
High inflation has led to a decline in people’s income level and the recent increase in bread prices across the country makes it difficult for people to continue shopping as before, which is a major obstacle to the survival of bread. business
Opening and running a bakery can be compared to opening and running a fast food restaurant, but they are different; especially when it comes to certain legal requirements specific to the bakery business. A bakery business requires certain requirements that represent many safety precautions that must be followed. Because bakeries produce what people eat.
The health and safety of people must be taken care of. Wouldn’t it be nice if your client died of food poisoning? Therefore, personal hygiene and general cleanliness are extremely important.
Frequently Asked Question(s)
How much can I use to start a bakery business in Nigeria?
Based on the historical experience of some persons in the industry, starting a bakery business in Nigeria will cost at least 700,000 Naira. Depending on the size of the company, between N1,000, 000 and N5,000,000 is required. This is the total cost of setting up a bakery in the country.
Is bakery business profitable in Nigeria?
The bakery business is one of the most profitable businesses in Nigeria. This is no surprise, Nigerians eat a lot of pastries and baked foods, most especially bread. Bread is the fastest and easiest meal to make. Bread does not require any form of preparation on the part of the consumer.
What is the first step in opening a bakery?
You must first select whether you want to create a retail bakery or a wholesale bakery before you can begin arranging the specifications of your bakery. Deciding this is crucial because it will influence how you engage with your clients and how much money you need to invest.
Do small bakeries make money?
The average bakery profit margins are low. A typical margin for a bakery is between 4% and 9%. The reason that bakeries have such small margins is due to competition. To sell your products, you need to offer them at prices that are market competitive yet still allow you to make money.
What is the most profitable item in a bakery?
The most profitable items for most bakeries are cakes, cookies and bread are also very profitable for most businesses. As for new and experimental products, their success tends to vary from one type of bakery to another.
- nairarush.com.ng – Bakery Business in Nigeria: The Ultimate Guide to Get Started 2023
- financialquest.com.ng – How to start and run a bakery in Nigeria
- utibeetim.com – How to Start a Profitable Bakery Business in Nigeria