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Necessities for bakery business in Nigeria

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By Mercy Kelani

The business of bread bakery in Nigeria is capital intensive but profitable.

In Nigeria, baking business is regarded as one of the oldest businesses that exists in the country. Nevertheless, bakers still make substantial profits daily. Bakery products are highly in demand, and it has been projected to keep being so, as long as the population increases on a daily basis. There are many bakery businesses that can be ventures into, ranging from pastries to loaves of bread and cakes. The business can be started with small capital, but can also be started with huge capital, with which a baker can gain millions within a month.

To begin any business, the first step is the knowledge of the required capital. In the business of baking, it is the knowledge of the cost needed to begin. The business of bread bakery in the country is capital intensive, resultantly, its commencement requires a minimum of 1.5 million. This capital covers the cost of equipment and materials, some registration fees and even the salary of staff members. However, as profitable as the business seems, its profitability in the country depends on the kinds of products that are baked.

There is a high demand for bread in Nigeria, leading to more sales.

A baker who bakes bread alone needs to make sales of hundreds of dozens to gain a huge amount of money. However, investments could be doubled with the baking of cakes as they are usually reserved for occasions and is more of a contract. In Nigeria, bread bakeries are the most popular, and due to increasingly high demand, they make hundreds of dozens on a daily basis, providing more profit and more job opportunities. If the cost of a bag of flour is N30,000, the profit of a baker will be at N10,000 per bag after settling necessary expenses.

According to market strategy, the first step required to start a bakery business is to conduct a critical market research to know the best bakery business to venture into, as there are many of them. There is also a need to carry out researches on the safest way to start, including the cost of every equipment and material required for baking. Decisions on the form of bakery should be strictly based on the startup cost, profitability and easiness of the business, depending on one’s personality and lifestyle.

Registration of bakery is a mandatory step to owning one.

If baking is to be done for business purposes, there is a need for more knowledge on baking. This is because baking for sales and profit is absolutely different from baking for one’s self, family or friends. To acquire training, a prospective bakery owner can visit a bakery and asked to be employed as a trainee rather than a worker by the owner. There is also the need for drafting an ideal business plan that will function as a road map towards achieving success, whether the business will be started small or big.

Selling of baked goods in Nigeria, unlike other businesses that can be started without registration, requires to be registered with AMBB, NAFDAC and CAC. It is also necessary to secure a space where production will be done. Procurement of instruments — such as oven, dough proofer, refrigerator, mixers, bakeware and the likes — is likewise essential. Bakers should be employed as workers if the business is not a small scale one. After all of these have been put in place, the next step is to commence production.

Marketing should not be taken with levity after production.

Production is regarded as one of the vital aspects of the baking business. The environment of production must be clean at all times and the products must be packaged in an hygienic manner. Good management requires that a baker keeps track of daily production. The top priority after production is marketing. In Nigeria, it is necessary to advertise one’s business, whether it is a bakery business or not. This is because the major aim behind production is to drive sales.


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