The big question of how to start a confectionery business in Nigeria has generated tons of requests among Nigerians who are interested in opening a confectionery business in Nigeria.
A confectionery business is any business that involves making food items that are rich in sugar and carbohydrates.
Generally, confectionery is divided into two broad categories thus;
a) Bakers’ confections or flour confections eg. bread, pastries, cakes, etc.
b) Sugar confections eg. candies, candied nuts, chocolates, chewing gum, bubble gum, etc.
This article provides a detailed step-by-step guide on how to start a confectionery business in Nigeria, how much it costs to start a confectionery business in Nigeria, and how profitable the confectionery business is in Nigeria.
How To Start A Confectionery Business In Nigeria
Here is a step-by-step guide on how to start a confectionery business in Nigeria.
1. Get Practical Knowledge And Experience
It’s common knowledge that before you venture into any particular business you’d do your due diligence to acquire practical knowledge and real-time experience of the business you want to venture into.
Before starting a baking or confectionery business in Nigeria, it is advised you first attach yourself to a bakery or employ the services of a professional baker who would walk you through the practical aspect of baking.
However, you may also decide to buy an online certification baking course although attending an offline backing class would be more advisable.
2. Draft A Detailed Business Plan
“He who fails to plan plans to fail” goes a popular saying.
Having a well-detailed business plan is the first step to starting a successful business.
A good business plan should contain; the structure of your business, how to raise capital for the business, your proposed location, how to attract customers’ patronage, how to get supplies for your business, SWOT (Strenght, Weaknesses, Opportunities, and Threats) analysis of your business, your competitive advantage over your competitors, your scale-up plan among other details.
A business plan serves as a blueprint of every business and can be used to do a routine check on the business to ascertain if the business is still on track with its objectives and plans.
3. Register Your Bakery
Registering your bakery business with the Corporate Affairs Commission (CAC) makes it official, and legal and also improves customers’ confidence in your brand.
After registering your business with the CAC, you should proceed to register the bakery business with the Association of Nigerian Bakers (ANB) and obtain a license from them.
Then proceed with registering your business with NAFDAC so as to boost customers’ confidence that your products are healthy for consumption.
4. Rent A Shop
Renting a shop in a strategic location gives a business more advantage ahead of other competitors.
Your shop should be located in an easily accessible area where there’s a concentration of people so as to improve your chances of business patronage.
Your shop should also be spacious to accommodate a good number of workers simultaneously and should also be kept neat at all times so as to attract customers’ patronage.
5. Buy Equipment, Machinery, and Ingredients For Your Bakery
Buying the necessary and quality equipment and machinery for your shop is the crucial aspect of starting a bakery business.
Ensure you do your due diligence to ensure that you buy the best quality equipment and machinery that would serve you for a good number of years.
Some of the necessary equipment and machinery required for starting a bakery business are; an oven, generator set, pan, mixing machine, apron, ladder, scale, etc.
On the other hand, buy raw materials and ingredients that you’d use in your baking such as flour, sugar, milk, etc.
In addition, you could reach an agreement with a supplier who would be supplying you with those baking ingredients as this would help to ease the stress of going to the market thus leading to production cost reduction.
6. Employ Trained Workers
Baking is one of the businesses that you can’t do all alone as you would need to employ the services of others to assist you in the different stages and processes of baking.
If you’re running a commercial bakery, you’d also need to hire a driver who would help in distributing your products.
7. Make Arrangement For Logistics
Distributing your product is a vital part of the baking business and hence should be given utmost attention.
You’d need to buy or rent a motor vehicle which would aid in the distribution of your products if you’re running a commercial bakery.
8. Create Awareness For Your Business
Remember that there were people who are already in the bakery business before you started so you’d need n aggressive marketing strategy to attract customers to your business.
You can create awareness for your business by word of mouth, flex banners, pamphlets, posters, radio gingles, or through social media.
Ultimately, the best form of awareness and marketing is making good and quality products.
Is Bakery A Profitable Business In Nigeria?
Yes. The bakery business is unarguably one of the most profitable businesses in Nigeria.
Bakery products especially bread are among the most consumed goods in Nigeria and thus have high patronage.
How Much Does It Cost To Start A Small Bakery In Nigeria
Starting a commercial bakery business in Nigeria costs between N1,000,000 to N4,000,000 depending on several factors such as location, choice of equipment, etc.
Submission
Over the years, the confectionery business is one of the fast-moving and most profitable businesses in Nigeria.
Starting a bakery business doesn’t require much hassle if you’ve already had a real-time practical experience in baking.
Generally, confectionery or baking is divided into two broad categories thus;
a) Bakers’ confections or flour confections eg. bread, pastries, cakes, etc.
b) Sugar confections eg. candies, candied nuts, chocolates, chewing gum, bubble gum, etc.
This article extensively discusses a step-by-step guide on how to start a confectionery business in Nigeria, how much it cost to start a bakery business in Nigeria, and much more.