Bread and pastries are of the most widely eaten things in Nigeria today, easily being substitutes to the regular cooked foods. People eat them on a day to day basis too, just like we eat cooked food.
In essence, the demand for baked items are at a very high, so one would be wise to invest in this industry. Wether in the small scale or in the large scale.
What do I Need to Start a Bakery Business
In this article we will be taking a good look at all you need to run a successful bakery.
How to Get a Good Location for your Bakery Business
One of the most important things in running a successful business is getting a good location as your location will determine your customer base which in turn determines potential in and outs of your business.
So how do I determine which place or location is best to start up my bakery business?
- Check for Potential Competitors Around: check if there are other bakeries in the environment and how close they are to any potential business place you would want to get. The farther you are from other bakeries, the better and more advantaged your business is.
- Good Infrastructure: there are very few businesses that are as extreme in its need for good infrastructure as the bakery business. Every bakery needs constant electricity to power things like the microwave, the oven, and to keep it’s products fresh. Constant electricity also means availability of water. Amongst these good infrastructure also includes good roads for easy transportation and easy accessibility
- Visibility: for a business which its products are as perishable as the bakery business, visibility is very pertinent as the lifespan of the products are limited and needs to be sold off as it is being produced. It is very important that you get a business place in an area where there are a lot of pedestrians and a lot of grocery businesses which can serve as resellers for you.
Pros and Cons of Running a Bakery Business
- The products are essential commodities, which means there will always be in demand.
- The products are perishable and often needs to be sold off promptly.
- cost of the raw materials such as flour are very unstable and can lead to losses if not properly managed
How much do I need to Start a Bakery Business?
Starting a bakery is relatively not so cheap when you consider the sheer cost of equipments you would need to buy. However, when you consider these are only one-off buys, it makes it worth the investment.
You will also need to buy a good amount of baking materials such as the flour.
Furthermore, considering you would need a very visible and strategic location, it is unlikely for the rent to be low priced.
With all these in consideration, to start a bakery, you would need an estimate of at least 2million naira.
Starting a bakery is not exactly very affordable but it is a very profitable business when properly done. If a person has the money and skill set to run one, then by all means, it is a wonderful business to be in.