How Bakery Business is Profitable
Bakery business is one the lucrative businesses all around the world today. With a nation’s population increasing by millions, it shows that people will continually eat and it will be your business to provide the needed meal. Bread is one of the choice fast foods of people across the globe and in Nigeria, its demand is never in short supply. In Nigeria, for example, the amount of people who consume bread on a daily basis proves that the bakery industry is a profitable industry. In this article, you will have the knowledge needed to start up and maintain a profitable bakery business.
High Demand For Bakery Product
Bread as an example of bakery products is a good source of carbohydrates, proteins, and vitamins. Because it has such high nutritional value, it is widely consumed by almost everyone on this planet. For a very long time consumption of bread has been a necessity for human diets and as continuously yielded an increase in consumption over the years. This proves that the market is wide open for anyone to venture into as one can invest in opening a modern bakery to provide the highest in demand bread for consumers.
Nigeria with a large population consumes a lot of bread with locally made meals such as bean cakes, pap, beans etc. Another fraction of the population may require catering services for parties and wedding to provide snacks and pastries etc. However before you launch into the business, there are some few things you must note
Find Mentors Before You Commence Bakery Business
Search for mentors before you start your bakery business as mentors will easily provide you with solutions to difficulties in the business, provide ideas, tips and information necessary to having a successful bakery business. These mentors will serve as a guide to instruct you on among other things the necessary equipment needed, how to get your license, strategies and branding ideas to selling your bread, etc.
The bakery as a highly lucrative business
Nigerian loves baked foods such as the regular “puff puff”, Agege bread, small chops and so on. With all these, there’s is still a huge market to attract as baking has no limitations in terms of age, religion etc. If you can create a creative branding strategy you will definitely find it profitable by the end of the month.
With the huge population in Nigeria, it’s very easy to say every baker is a millionaire if they get to sell to about one million people in the open market in a day. But baking doesn’t grow in such large fashion in a day but requires adequate time in branding and improving on providing crocrowd-pleasing delicious meals at an affordable price and quick accessibility in order to increase sales.
If you have an intention of baking or you have started your baking business, here are the ways to make it profitable:
Do a proper survey or research to inquire about the demand presently in the market regarding baking products which other bakeries do not offer. In this survey, you can also find out if there is a customer relationship between the producer and the consumer. In this survey y,ou can state what the customer’s demands are and position your business in such a way that meet such demands.
Source for Start-up Capital
Whatever you discover from the demands in the market will affect the budget of your start-up capital and this could be more than your initial budget.
Source for Start-up Capital
The high demand which you have discovered in the market for a particular product will affect the amount of start-up capital you need to start the business.
Furthermore, your start-up capital will determine the materials you would need, the equipment you should buy, your business size, etc. All these would be drawn up into the estimated amount of what to you need to get your business up and running.
Have a Business Plan
The business plan enables you to draw out strategies to be used in the business such analyzing your start-up capital which has been estimated from your feasibility reports, where you want to get your capital from – this could be a loan, from your savings or assistance from family and friends.
This business plan will show marketing and branding strategies to be used to promote your brand, number of staff you need, equipment etc. It is important to start a business with a proper business plan.
Buy Necessary Bakery Equipment
Purchasing the right and necessary equipment is very important. Buying the right equipment depends on the level at which you want to startup the business such as the size of the bakery, capital and so on. Here is the list of equipment needed for a bakery business: mixers, dough molder, large tables, bread pans, display shelves, water proof wrapping sheets, oven, bread slicer, van for delivery and so on.
Proper installation and maintenance should be given to the skilled technicians to monitor and control.
The major materials needed for baking are baking flour, baking soda, butter flavors, water and so on.
Get Approval from Government and Regulatory Bodies
If the law requires any form of payment to a regulatory body, kindly comply and pay every necessary dues and get your government approval and license, in order to carry out your business smoothly.
Get a Good Location
Find a good location that will promote sales. Location close to the buyers will improve sales on a regular basis which will mean constant production that will keep you in business. Without demand, there would be no business therefore get a place with enough traffic to keep yourself ib business.
Safety of Lives and Property
Nigerians have no regards about this matter, they rely more on spiritual matters when asked to get insurance. It is important to note that safety of lives and property is as important as the sales you want to make. Therefore, fix every necessary gadget or appliance for preventing major disaster to your establishment.
Recruit the Best Staff
After your business plan, your staff are also important, therefore, make sure you recruit the best hands with relevant experiences on the job. The recruited staff should not be bakers only but also individuals who understand marketing and distribution in order to promote sales.
How is Bakery Business Profitable?
Bakery business is profitable if you start up with the right capital, inculcate and promote good customer relations, have the right team working with you; that is a team that understands the level of business and so on and so forth.
To venture into the profit side of the business, take note of the following:
Bakery Products Sales and Distribution:
If your product has the right branding and it’s properly packaged with a delicious taste, people will buy it.
Make sure that your products are fresh and attractive fonts or images pleasing to the consumer eyes.
Your distributors can include wholesalers, retailers as they bring your products closer to the consumers
You can offer training to a number of persons and charge from as low as 20,000 Naira and if you have 10 students, that’s 200,000 Naira. This student can also help in production of more products after completing the training.
Offer Event Catering Services
This is the most popular avenue used to make money in Nigeria. A lot of event are usually held on weekly basis and most of them require services of bakers to provide them some tasty meals.
For example a wedding cake costs about 50,000 to 500,000 Naira depending on the number of tiers and decoration. This is also similar to small chops which can be priced at 500 Naira per guests. If your production and packaging is top notch you will get referrals and lots of events will be needing more of your services.
Go on TV Shows
You could have the opportunity to host your personal baking show on TV which could bring more sponsorship deals and brand endorsement, creating a total uniqueness to your brand.
To get to this platform, you must be ready to invest all, that is your time, money and so on but at the end it’s definitely profitable.
Be very open to criticism so you can correct mistakes and do not allow anyone tell you it can’t be done, constantly press on to be better on every side. Turn your business into a money making venture.