The bakery industry is a huge market across the world. Food is life after all and in a country with over 140 million people, food is a great expression of our life and culture.
This is a bakery business feasibility study for those who will want to venture into this business.
There is always a demand for food and catering services everywhere. People need catering at their weddings, parties, corporate events and so on. And if you are an amazing cook or you have an amazing team who can cook, then it is time to put your skills to good use and launch a catering business. However here are a few things you must tick off the list before you launch your business.
Having a bakery is a hugely profitable business venture.
With the love Nigerians have or baked goods ranging from the very popular Agege bread, to chin-chin, meat pie, cakes, small chops and so on. There is a huge market to be tapped into. Demographic actors favor this business highly because age, religion, gender or location is no barrier to the consumption of baked goods.
As long as you can develop creative market strategies, you can smile to the bank, banking at least a million naira every month.
Nigerian has a huge population; a profit margin of 10 Naira on every product sold to 1,000,000 people every month gives a total of 10,000,000 every month. This sounds pretty easy right? This might not be a one day journey for the owner of a bakery, but it is an achievable estimate, given the right strategies and attitude to marketing.
Please note that your products have to be of good quality, finger licking deliciousness and well packaged with top notch hygienic considerations. You want to sell a crowd pleasing product in order to pull funds from the crowd. Making it affordable and available is also a plus that will drive in increase in sales.
Do you have an existing bakery or are you intending to start a bakery and you are looking for ways to make it more profitable? Take note of the following avenues to tap into the profit making potentials of a bakery:
SALES/ DISTRIBUTORSHIP OF PACKAGED GOODS:
This might be the biggest profit generator for you. As long as your products are good and taste delicious, people will buy it.
You would be surprised at the demand you will get if you put out your products even if it is just in the counter space of your shop or hawked in traffic or displayed in a partner supermarket or store.
Ensure that your products are freshly made with quality ingredients, have an attractive packaging and display them beautifully.
This is another income generator. It helps if you have a flair for teaching, and if you don’t, you can employ a few people who do, to teach the art of baking.
As long as your products have a good reputation, you would be surprised at the number of people who are willing to be taught by you. Training in Nigeria right now range from as low as 20,000 Naira to as high as 250,000 Naira.
This training fee could include the cost of materials to be used during the training, certificates, incentives like aprons and chef caps and so on.
If for instance you take on 20 students at 100,000 Naira that makes a total of 2,000,000 Naira. Impressive isn’t it? I am sure you didn’t see that coming.
This is perhaps the most popular way of making money as a bakery in Nigeria there are lots of events from Monday till Sunday, across the country.
The events include but are not limited to weddings, naming ceremonies, business meetings, conferences, and birthdays and so on. There is usually a need for food or refreshment of some sort at these events particularly the very popular finger foods aka small chops.
Wedding cakes cost anything from between 50,000 Naira up to 500,000 Naira, depending on the style of decorations and the number of tiers the cake has. Small chops are usually billed per number of expected guests; it could go or as high as 500 Naira per guests are even more depending on the kind of snacks you are serving.
That is quite a lot of profit, if you handle as little as five events every months you could be making profit as much as 1,000,000 Naira per month.
You need to handle this aspect very well, because positive referrals and reviews could land you your next customer. Make sure that the goods are well presented, taste really nice and if you have a signature product which is a crowd pleaser, events are a good way of introducing them to the larger public.
The healthy and organic food market is fast growing in Nigeria, developing products that are tasty but healthy like Nellie’s will bring in a lot of income for you.
Your client base will usually be the elite and the middle class who can afford to pay you well for these innovative creations.
You have to do a lot of research and study market trends in order to create products that are healthy and delicious. This is a new niche that could generate a lot of income for you if you devote time to creating healthy alternatives to fattening snacks.
You could land a gig as a baking show host on TV and that could land you some sponsorship or even brand ambassador appointments with companies like Baker’s choice, because of the uniqueness of your brand.
To avail yourself of all of these opportunities you have to be willing to stretch yourself, break up new grounds and shatter glass ceilings.
You have to be willing to invest heavily in the business and not just money, your time, creative juices are very important. Build a standard and strive to get better every time.
Be open to criticism so you can correct your mistakes and please your customers, offering them immense satisfaction.
Do not allow anyone tell you it can’t be done, it has been done and more and more people are doing it every day. Turn your business into a money making venture.