Requirements For Starting Bakery Business In Nigeria
Commercializing baking is an idea that will never lose steam or fall short of relevance and this is because it deals with a basic human need which is ‘food.’
To start a bakery business in Nigeria is not rocket science but it requires some basic planning and acquisition of tools for the smooth running.
The bakery business is a very lucrative one because daily needs of people are met and if you are someone with the requisite culinary skills, you would fit perfectly in the business.
In this article, CorrectNG would reveal how to start and run a successful bakery business in Nigeria.
Before starting any business, an individual should have an overview of what will be needed and the costs. To get a standard bakery up and running, some of the requirements to be considered include; capital, equipment, baking/food materials, labor, and lease.
The first step is to decided the type of bakery you want to launch. After that, you write a business plan and source for the capital and buy the necessary equipment.
The two main types are Retail and Wholesale Bakeries.
Most bakeries fall under retail bakeries, and this involves selling baked foods directly to their customers.
Some categories under this are;
You can make millions from this bakery in Nigeria because the focus is on producing biscuits, bread e.g. coconut, butter or chocolate bread.
This is self explanatory in that it specialises on a particular type of baked food. For example the bakery shops that nly make cakes for birthday parties, weddings and other similar occasions.
Being that there is usually one event or the other every weekend in Nigeria, someone who runs a specialty bakery business can make big money.
Students, workers often times are on the go during the week and some might need something they can quickly grab late morning or by noon, this is where pastry shops come in handy.
Pastry shops primarily bake a variety of snacks; meat pie, egg roll, chicken pie, doughnut, sausage roll and puff puff, are some examples. With little capital, you can get a brick-and-mortar shop and set your business up.
This type of bakery is fast gaining ground in the era digital transition, vast electronic transactions, online engagement and work-from-home concept.
You can start this business from the kicten in your home and have them delivered manually after selling them through social media, a website or phone contacts/referrals.
This is one of the cheapest bakeries one can start because you don’t need to spend so much on setting it up.
Ever felt the need to grab a snack and with a drink at the same spot and probably do some remote work or relax in the same place? That is the purpose a bakery cafe serves.
This type offers cakes, muffins, snacks with coffee and tea depending on customers request and there is usually a dining table where people can sit to have their meals.
Unlike the retail bakery, wholesale deals in making large supplies of baked foods, like companies that mass produce bread.
They cater to a larger customer base and sell directly to retailers who in turn sell to the final consumers.
When you decide on the area you want to focus on, the next things is how to get the business from planning to execution stage.
Get Your Business Registered
The first and most important step that must be taken before starting business in Nigeria is to register your business with Corporate Affairs Commission (CAC).
It gives you many benefits like getting a corporate identity so you can deal with other business on the basis of confidence and trust as most unregistered businesses find it difficult to build trust with prospective clients. It also affords you to the opportunity to access business grants to expand the business.
To do CAC registration costs low as N20,000, you can get your bakery business registered with CAC, when this is done you move to the next plan.
What a business man does for your business is to highlight the goals and objectives and ways to achieve them.
According to economists, a good business plan should be in the format below:
c.Product or Service Description
With a solid business plan, you can secure start-up capital/funding from investors or venture capitalists.
Every bakery operates with a specific set of tools and equipment which make it possible for the goods to be produced.
Below is a list of must have equipment;
Racks and baking sheets
Wood Top Work Table
Ingredients used in baking bread, cakes and other snacks are as important as the equipment.
See a list of the main ingredients:
Rent A Shop/Space
Except if you want to run a home bakery, you will need to get a space where you’ll be baking and selling the confectionaries from and it all depends on the type of bakery you intend to open.
Also, importantly, look for a location that brings you closer to your target audience. It can be close to a school area or secretariat where there are offices and foot traffic.
Some key aspects that should also be taken into consideration when siting your bakery are; proximity to competitors, health regulations and it should be located far away from drainage and high pollution factories.
If you wish to start a wholesale bakery, you will definitely need to hire and train (if need be) some staff who will be working at the factory as well as the sales section. The size of your bakery will determine the number of staff to employ.
Running a bakery business and running a fast-food company are similar in some ways. Hence, there may be a need to register with relevant associations in your locality such as the Association of Master Bread Bakers (AMBB), this is after registering the business with CAC.
The final approval for running a bakery business comes after a thorough inspection by the National Agency for Food and Drug Administration and Control (NAFDAC) and the Association of Master Bread Bakers.
It usually takes between six months to one year for NAFDAC to inspect and approve the commencement of business activities in your establishment.
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