Bread Bakery Business plan in Nigeria – In most Nigerian families, one of the most consumed baked items is bread and this is because it is the most sort after. It is almost like a custom to have tea and bread as breakfast before leaving your home in the morning, and for that, bakery business has become a lucrative business.
The demand for bread on the daily basis has made bakery business in Nigeria one of the most rewarding businesses to venture in today. Irrespective of the competition in the industry, you are rest assured that the demand for your bread will be there. However, to successfully set up a business of this statue, you’ll need to get yourself a bread bakery business plan. With the bread bakery business plan, there you have to yourself a document with all the necessary information to set up and run your business.
Uses Of Bread Bakery Business Plan In Nigeria
Here are some of the uses of bread Bakery Business Plan;
- BANK LOANS – After getting your business plan or feasibility study, you can go for a loan from any bank issuing loans, or you can apply for loan with it.
- GRANTS – There are some government agency that offer grants to entrepreneur who are promising and might succeed, these government grants can as well come as loans.
- BUSINESS PROPOSAL – For a new business that requires fund for a start up, you can use this business plan to source for fund, since the information contained inside are well detailed for a bakery business.
- COMPETITIONS – This bakery business plan can be used for competitions, there are some competition where the price could help you start up a business of your choice, this feasibility study can help you out.
- ACADEMIC STUDIES – This feasibility study can be used for Academic research and seminar presentations.
As stated earlier, bread is a highly demanded product, hence the need to write a business model that will help those who may want to go into bread bakery business. And since the market is large enough to accommodate a large number of bread bakers, you can actually try out your hand in bread making.
Often times I’ve seen people make comparison between breads, take for example, in a town like Abakaliki, there use to be a bread factory that makes Golden star bread, they where the toast of the town, however, as time went on, other bread bakery started coming into the industry, Golden star couldn’t keep up with the innovation, they went into business coma. Today, you have bread like Nwachukwu bread which is considered one of the best in town, although they have stiff competition with Vegas and Roban bread, there are other also making themselves known.
In Enugu, I’ve people say they prefer “Celebrities Bread”, while other will tell you they rather take crunches bread or Citis bread instead of Roban or ShopRite. The choice of bread is all about preference from the customers, and customers make their choice based on the technicality applied in making the bread. Your brand of bread might be what the market need, that is why I stated earlier, that the market is large enough to accommodate your bread bakery business.
Factors to Consider Before Setting Up bread Bread Bakery
To begin with your bread bakery start up, you need a bread bakery business plan, you can write one if you know how to, you also have the option of buying a well written bakery business plan;
- Write A Business Plan – A written business plan will help you to identify the things you’ll need for your business. The business plan will describe your business objective, organizational structure, the size and capacity, ownership structure, fund to be invested as well as profit maximization (all things being equal), administrative and management structure which will consist of the number of staff to be employed, these staff will include (i) Managers (ii) Supervisors (iii) Technical staff (iv) Marketers (v) Drivers (vi) Cleaners etc. Getting yourself a business plan will give you an idea on what you need to do.
- Market survey – Getting the necessary information on the business, carrying out a survey on the potency of the business in your environment, this should also be one of the information that should be included in your business plan, a market survey tells you of the potential buyers of bread, like I said, every family buys bread and they buy according to their taste and choice, a market survey tells you the type of bread that are in higher demand, it also tells you the sizes, flavor and prices that the customer want.
- Register Your Business – The next thing to do is to commence the registration of your business name, the business name differentiates you from other bread bakery in that town, state, region and country at large. A business name, business brand and logo makes it easier for customers to easily recognize your products especially if the product was made with quality.
- Branding – Branding is as important as marketing of your products, with branding you can market and advertise your business to the outside world, your brand distinguishes you from others.
- Market your Bread bakery business – With marketing, customers know exactly what they are getting. With marketing and advertising you get to tell your customers of the sizes of bread in stock, the flavors you make, you can introduce a new method of bread baking in order to attract customers.
- Create and establish a good/reputation – This is one of the biggest advert you can do for your business, if your business is known as one that takes the request of its customers serious, the customers will take you serious in return, you can build your reputation through community service, giveaways, promos etc. These reputation enhancement effort will get you new customers and will make old customers to stay.
- Employ Skilled labor – Employing those that will operate the machinery in the bread bakery should be done with all discreetness, selecting capable hands beginning from the management/administrative staff to the cleaners should be done properly, numbering approximately 20 workers at least.
- Machinery and equipment for bread baking – There are equipment you must get to commence your bread bakery business, these equipment must be in place, they include the following (i) Spiral mixer = unit cost is N2,200.00 (ii) Proofing chamber = unit cost is N400.00 (iii) Dough Molder = Unit cost is 750.00 (iv) Baking oven (Jumbo size) Complete with 2 Number oil Burner and panel = unit cost is N1,800.00. there are other like the bread slicer, trolleys, trays, dough processors, auxiliary equipment etc..
Note – Price of these equipment are not constant and are subject to depending on the forces of demand and supply.
The BREAD BAKERY BUSINESS PLAN IN NIGERIA feasibility study contains a whole lot of information, among the information contained includes;
- Location and facilities – This is very important in setting up your business. I have seen businesses crumble due poor business location. I recommend setting up your business in an area that is easy to locate. Most bread factories that I know have their factory set up in between the market place and residential area. The idea behind this is to maintain close proximity to the customer. When you consider the cost of starting up a small bread bakery in Nigeria, it is important to maximize profit by having your business in an area that is beneficiary to you and your business.
- Products/Service – In cities like Lagos, Port Harcout, Abuja, Enugu, one thing I have noticed is the distinct features most bread companies try to portray in their products. This is where size, design, flavors come into play, there are different types of bread out there with different flavors such as chocolate flavor, strawberry flavor, tomato flavor, coconut flavor, etc. As a business you need to understand what your customers prefer the most and prioritize that. Know the flavor, size etc that sells the most. Understand the need of your buyers and ensure you meed them.
- Business Strategy – The truth is that bread bakery business is a profitable, the question now is how are you going to make your bakery profitable. You must have spent some good amount of money in getting the equipment needed to start the bread bakery, how do you now make profit. This is where your business strategy comes into play. There are already established bread bakery business in the town, you need to device a means to get your business known. Things like your Bread label, bread size, Bread design, Price, creating awareness are some of the item that must be included in your strategy to growing your business.
MARKETING AND CLIENTS
- Target clients – Every product has it’s target audience. In this regard, bread has one of the largest target clients, apart from selling in bulk to the whole sellers or the retailers, you should have the final consumer in your mind, they are the ones that gives review of your product. You need to understand what your target clients need and you need to meet them in order to stay in business.
- Key competitors and players – You need to know who you are competing with, how they are running their business, how they have managed to stay in business and are making profit, how they have kept their customer base and are getting new customers as well. Have a proper knowledge of your competition, then you may stand a chance in succeeding in the industry.
- Service delivery – Service delivery is very important in this industry, from providing services at events, to making sure you deliver to your clients as schedule. Quality service delivery enhances your business reputation.
- Quality assurance – Quality assurance builds trust from your customers. Customers need to understand even without persuasion that whatever product they are getting from you is up to standard. Every bread bakery business must have a standard in quality that their customers can trust, in essence when you eat the bread, even without being told you already know where it is coming from.
- Demand/supply analysis – Another aspect of bread production that must not be over looked. Understanding the demand of your product determines the supply. If possible get a data analyst or a business analyst who understands numbers and how important they are to your business. Carry out a proper analysis, the result will help you to make inform decision as regards your business. Most importantly, you get to manage your resources more efficiently.
- Technology – Technology has played a huge role in the manufacturing industry in Nigeria, and when one takes about technology in baking bread, bread bakery equipment comes to mind. Make your own research, if possible invite industry experts to do this on your behalf. It is important you get equipment that best suits your business.
- Competitive edge – Now you must have had information about the businesses you will be competing with. Take your time to draft where they are lacking, make those areas your edge over them. Having a competitive edge helps you to create a trend in the industry.
MARKETING PLAN FOR THE BAKERY BUSINESS
- Market positioning
- Service delivery strategy
- SWOT analysis
LEGAL, REGULATORY, SOCIAL AND ENVIRONMENT ISSUES
- Legal issues
- Regulatory issues
- Environmental issues
FINANCIAL PLAN FOR THE BREAD BAKERY BUSINESS.
- Summary of project cost
- Funding plan statement
- Funding requirement
- Projected income statement
- Projected cash-flows statement
- Projected Balance sheet
- Profitability analysis for the bakery business
- Break-even point analysis
- General Conclusion and recommendation
Do you want to get a bread bakery business plan in Nigeria Sample? Simply follow the instruction below…
Hurry now and GET YOUR Bread Bakery Business Plan. Simply order yours by paying N10,000 to
GTBank (Guaranty Trust Bank)
Account Name – Okite Joseph ikenna
Account No – 0044083736
Once payment is made, send the following info (i) a valid email address and (ii) your payment details to any of these numbers – 07039768549.
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