Bread Bakery Business Plan in Nigeria

Bread also referred to as the “the staff of life” by some is one of the most popularly essential food all over the world. Bread ranks number one in the most universally eaten food, the second being rice. The consumption of bread is not relegated to certain tribes, class or religion. All manner of people consume bread which makes it an essential food in any home. Bread is a very popular, perhaps the most popular food in any part of the country because of how quick one can easily get it and how cheap it is.

Also Read: Bakery Business Plan in Nigeria

Bread plays a prominent role in daily living such that it has been used in proverbial expressions, colloquial expressions and even in prayer (give us our daily bread). Bread can be eaten as a meal, as a snack or in combination with other foods like beans, bean cake, popularly called moi moi, egg e.t.c.

Any investment that involves dealing with a product of high demand is always lucrative, and bread happens to be one of those products that has a high demand. Setting up a bread bakery is therefore a wise choice of investment. The focus of this article will be on bread bakery business. This article therefore will provide a guide to setting up a bakery business in Nigeria. This article also will be emphasizing how to set up a large scale bread bakery business in Nigeria.

What Is Needed to Set Up a Bread Bakery Business in Nigeria

At this junction, we will be looking at both the factors to be considered and equipment to be purchased for the bread bakery business.

Feasibility Studies/Analysis: This is the first thing on the list. You are probably wondering what feasibility studies/analysis means. We will take a moment to define it and state its importance.

Feasibility studies/analysis is the evaluation of a proposed project to determine if it is technically achievable, can be achieved at the estimated cost and if it is going to be possible. A feasibility studies/analysis is usually the initial stage of a proposed business where you bring all factors ( economic, technological and legal factors), and consider them to see if your proposed business will be possible or not. In simpler terms, feasibility studies answers the question “will this business work”?.

Feasibility studies/analysis are conducted where the investment involves a large sum of money. Setting up a bakery is capital intensive and that is why you must conduct a feasibility analysis before you embark on this journey. Later on we will look at the importance of conducting a feasibility studies/analysis.

Develop Your Business Plan and Business Model: There are certain investments that may not require a business plan. But when it comes to setting up a bakery, it is strongly advised that you get a business plan. Some of its benefits includes; a business plan helps you set your business goals and develop the steps you need to meet those goals. It helps you get prepared to mitigate risks in your business, and most importantly, if you are looking to get financial support or assistance in the form of loan or business incentive, a well drafted business plan will get you more than half way through the process. Also, a business plan will help you analyse your business goals, as the business progresses, if the business is progressing the way it should or not, based on your aims and objectives. It is therefore pertinent to get your business plan ready. If you are unable to draft it by yourself, then you should seek the help of a professional.

You can get a sample bakery business plan and a feasibility study on bakery in Nigeria? To place an order, pay N10,000 to:

BANK NAME: FIRST BANK PLC

ACCOUNT NAME: CHIBUZOR TOCHI ONYEMENAM

ACCOUNT NUMBER: 3066880122

After payment, Text your full name, email address and selected business plan (e.g. sample of business plan in nigeria pdf) to 07033378184.

The complete business plan/feasibility study will be sent to your email 30 minutes after payment.

Also get our Sample Bakery Business Plan Here

Your business model involves deciding on your product name, logo, target customers and how you want to finance your business. At this point, if you do not have the capital required to fund the investment by yourself, then you should source for funds, either by asking for loans from banks or applying to programs that offer business incentives to entrepreneurs.

Get Yourself Trained: It is one thing to be the best baker in your family and it is another to do commercial baking. It is important you get proper training to understand the rudiments of baking even though you will employ capable hands. The best place to get trained is to get attached to a functioning bakery, where you can get both theoretical but most importantly practical knowledge about the business. Remember you are not just learning how to bake, if it was just that, there are many videos on YouTube that will teach you, but you are learning the basics of the business as well. For example 50 loaves of bread can be produced from a bag of flour ( this is just for illustrative purposes). When you know this, then you will be able to know how much bread the amount of flour you purchased should be able to give. This will go a long way in curbing a part of theft in the business.
Choose Your Location: This is a very important aspect of this business. Apart from how your location may influence the sales of your products, it will certainly influence getting relevant certification. Also, you may want to build your own bakery from the scratch. So take into consideration the following when making a choice for the location of your bakery.

Closeness to town: This is not a stringent criteria because if the taste, quality and price of your product is very enticing, customers will travel distance to purchase your products. However, the closer you are to town the better.
Sufficient space for baking and storing both unfinished and finished products.
Adequate parking space.
Not close to a dump site or chemical factory.
Adequate pedestrian traffic.
Adequate wholesale and retail dispatch space.

Get Operational Approval: This is coming after choosing your location because, before you will get the necessary approval, your business site will be visited to see if it conforms with the required standard. The approval required to operate a bakery is given by National Agency for Food and Drug Administration and Control (NAFDAC) and one of the criteria that will see to the approval of your business site is the cleanliness of the surrounding. So, remember this when picking a location.
Purchase Required Equipment: Below are a list of required bread bakery equipment in Nigeria

Baking Oven: You can get a locally made oven. Locally made ovens are preferable because they are powered by coal which is cheaper. Getting an oven that runs on electricity is not advisable, as it will be more expensive and also may be unavailable to use most times, due to the unstable electricity situation in the country which will make you get an alternative source of power supply. This too will need to run on diesel, which is also expensive and can lead to an increase in production cost. This can make your products to have a higher than normal price, or reduce your profit making if you choose to bear the extra cost rather than levy it on the consumers.
Flour mixing machine: For mixing the flour and other ingredients together.
Moulding machine: This is used for moulding bread dough. This can also be done manually, however, it saves time and manpower, which can reduce cost from employing manpower needed to mould.
Bore hole and water storage tank: Water is a compulsory ingredient for baking bread, so there must be water at all times. Tank should be plastic, because iron tanks starts to rust after some time. Plastic tank water should be treated and the tank washed from time to time.
Baking pans.
Weight scales.
Mixing bowls.
Dough dividers.
Bakery display case.
Work tables.
Shelves for keeping breads.
Slicing machine.
Refrigerator.
Customised packaging nylon bags.
Generator: One that can carry all equipment required to work at the same time.
Delivery truck for conveying your products to selling points.

Human Resources and Raw Materials: At this point, you should be looking to employ your work force. Be sure to employ qualified staffs. Also make room for apprentices and students on industrial training (IT students) , as they will provide extra help and extra cash too, in the cases of apprenticeship. However, room for apprenticeship and IT students should be made when you have settled down and have understood the pros and cons of the business.

Basic raw materials should be bought from a reliable supplier as you will need to have these in stock always. Without them, there would be no bakery. A reliable supplier will also be able to give you goods and collect payment later. This is only after a trust relationship has been built. The major ingredients include flour, sugar, yeast, edible baking fat, salt, water, e.t.c. Proper mixing of these ingredients will determine the taste and texture of bread. Be sure to get a qualified and experienced hand to do this.

Market your Products: Just because you produce a fabulous product does not mean the whole world will know about it at once. Yes, people will tell the story about your product, yet it may take a long while to get the customer base you are aiming at. So, you need to market your products. If you have delivery vans, you can take your products to a strategic place, like a market, have the van opened to display your products, even have a recording playing a nice advert about your products and attract customers. You can also choose a have a nice advert about your product on TV. You can employ marketers as well who will take your products to various bread selling joints and supermarkets to market your products. This way, you will increase and improve your customer base.

Challenges of a Bakery Business in Nigeria

Theft: This is a huge problem in the bakery business. Theft can be done by staffs or those that come into the premises to purchase products or pretend like they want to purchase products. To reduce internal theft, ensure proper recording of raw materials bought. Get to know the estimated amount of bread that can be produced from an estimated amount of flour, do proper recording, take stock of materials regularly, get an auditor to audit your accounts regularly. Another good way to reduce theft by staff is have them sign a written agreement before employment, that anyone one found guilty of theft would be prosecuted. This will go a long way to minimise staff theft. Also, anyone caught stealing should be dealt with and dismissed to serve as a lesson to others.

To reduce theft from the outside, payments should be made in a separate room, where buyers will be given receipt to another room to collect products. No matter how large the crowd, attendance to customers should be done in an orderly manner, even if it means reassigning other staffs to assist at the moment. Study periods where you have this rush and have enough hands to assist.

Fluctuations of prices for materials and spoilage: Price fluctuations of raw materials especially baking flour is a constant occurrence in the country. Therefore, you must be ready to adjust your prices accordingly to accommodate these excesses. Be careful not to give over bloated prices.

Spoilage is another challenge to deal with. Some producers in a bid to get more retailers ask them to return spoilt bread. This can be very risky. Be sure you understand the business before taking such steps, and when you do, make a guidelines. For instance bread of more than a certain number of days should not be returned and a receipt should show when it was purchased to back up claims or you can as well sell spoilt breads to those that own animal farms or use them yourself if you have an animal farm, as spoilt bread can be used as part of animal feed. Also, bread could get burnt, due to carelessness or negligence. To handle this, your staffs should work on shifts to prevent over tiredness. Carelessness and negligence should not be tolerated. Carryout proper and timely maintenance on equipments to reduce the chances of spoilage due to equipments failure.

It is therefore important that you install smoke and fire detectors , and have fire extinguishers in your business premises, to prevent situations where your business will be razed down by fire. It will be very devastating and you may never recover if such happens.

Harassment by officials of the government: Whether you talk about those on the roads or those that come to inspect your business, you may be harassed sometimes. A sure way to avoid this is keep to the rules and guidelines all the time whether it concerns your production site or your delivery vehicles.

The profitability in this business is not skeptical. It is a lucrative venture. It is not a business that you sell your products once in a week, the sales is constant. A loaf of bread sold can get you up to #40 profit or even more. Now if you sell 2000 loaves in a day, it will give you

#40*2000 = #80,000 profit in one day. Multiply that by 30 days in month

#80,000*30 = 2, 400, 000.

Even your cost of production and maintenance cost will not be able to reduce the mouth watering profit you will take home. So why not invest in the bread bakery business today, where you can be a proud employer of labour and a profit making entrepreneur.

Take Home Tips

Avoid using bromate and saccharin for your bread production. They are harmful to the human health and against the law. If you are caught you will be dealt with and you may likely loose your customers.
Your staffs should maintain proper hygiene at all times. This is important for the sake of customers view and unexpected inspection officers that come unannounced sometimes.
You should create enough rooms in your production site. Room for administrative duties, changing rooms and toilets and bathrooms. There should be water 24/7 available for staffs use.
You should have a room as your proofing chambers. It is where bread is kept at a certain temperature to enable it rise.
Do not over prize your products.
Have a variety or range of bread. With time you can limit production to the most popularly bought ones.

Importance of SWOT Analysis of Bakery in Nigeria (Feasibility Studies/Analysis)

It helps you to determine and organise every detail that will make your business work.
It helps you to identify administrative problems and nearly every business related problems and also helps you with ways to mitigate these problems.
It also helps you develop marketing strategies that will let possible investors know they will not be making a mistake to invest in your business.

Do you want to get a sample bakery business plan and a feasibility study on bakery in Nigeria?

Hurry Now! Get Your Bakery Business Plan & Feasibility Study Here

To place an order, pay N10,000 to:

BANK NAME: GUARANTY TRUST BANK (GTB)

ACCOUNT NAME: CHIBUZOR TOCHI ONYEMENAM

ACCOUNT NUMBER: 0044056891

BANK NAME: FIRST BANK PLC

ACCOUNT NAME: CHIBUZOR TOCHI ONYEMENAM

ACCOUNT NUMBER: 3066880122

After payment, Text your full name, email address and selected business plan (i.e. business plan on bakery pdf) to 07033378184.

The complete business plan/feasibility study will be sent to your email 30 minutes after payment.