The bakery and baking business is a very profitable business and you could be your own boss or work as a baker for a bakery owner.
So many business moguls build bakeries for the sole purpose of letting it out.
They let the bakery out to professional bakers or put an agent in charge. The agent is then responsible for looking for the professional baker that will manage it. These bakers would then work and pay according to their scale of production.
A baker producing on a large scale would be required to pay higher than the one producing on a smaller scale.
Some of the products may include bread loaves, chin-chin, cakes, sausage rolls etc.
An average bakery focuses majorly on the production of loaves of bread and cakes. This article focuses on such bakeries.
As stated earlier, you could be the owner baking in your own bakery or you could rent a bakery and pay the rent fee as you produce.
Starting as the owner of your own bakery
This is for investors with enough capital. Building your own bakery from the ground up requires huge capital.
Some of the things you’ll need to consider when setting up a building for your bakery includes:
Land(Space and location)
Depending on how big you’ll need your company to be, you’ll need a landed space to erect your building.
In Nigeria, lands are sold in acres and the prices vary greatly from location to location.
It is however cheaper to procure the land space in rural areas than in urban areas.
Availability of water
Water plays a vital role in the success of a baking business. It is actually a key ingredient and it takes up a large percentage of the total composition of your product. It is, therefore, necessary to put up your bakery structure in an area not associated with the scarcity of water.
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You could set up a bore-hole or dig a well on the land to enable easier access to water.
The Structure or building
The structure of an average bakery should include a storehouse not located close to where the oven is placed. This is because the consistent heat emanating from the oven could lead to the destruction of the potency or sensitivity of some or all of the ingredients to be used for production.
Therefore, the storeroom should be reasonably far from where the oven is positioned.
Also, where the oven will be situated should be a large space that will allow for good ventilation.
The structure should conform to the general requirements of a bakery as laid down by the government or regulating body.
Erecting a building for your bakery would cost you as low as NGN500 000 or as high as NGN10 000 000 depending on your budget.
An average bakery should have a functioning oven, a mixing machine, a milling machine, a long table, cutting tools like knives, and baking pans of various sizes. These are the basic tools required for production in any bakery and the prices of these tools vary depending on their grades.
There are various types of ovens that are currently being used in Nigerian bakeries. Some use electricity, some use gas while some use firewood but their prices vary greatly. The most widely used type of oven is the ones that use firewood. We also have gas ovens that are sometimes converted to firewood ovens. An average oven cost NGN 1000 000.
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In place of the mixing machine, some bakers make use of manual mixing where all ingredients are poured into a large bath constructed for the mixing purpose. The ingredients are then mixed to the required texture by manual labour.
Delivery van or truck
The delivery van or truck is for convening your finished products to your various customers. Also when you buy ingredients for use, the van could also be used to carry these ingredients from where they have been purchased down to your bakery.
It is therefore important to get a van that will be able to carry your goods and loads with ease without unnecessary repetition of the journey.
Getting the right manager
Now that the bakery is all set, you will need qualified personnel who has been tested and trusted to manage the affairs of the bakery or you could do it yourself.
If you have no experience at all in the business, you could just get someone to manage the overall business for you. Doing it yourself means that you will be in charge of production as well as the marketing for the company. This is not always advisable as you may not have the time to oversee other sections as well as the smooth running of the bakery.
Starting as a baker renting a bakery
After years of working as an employed baker for other bakery owners, you may now which to rent a bakery and work as your own boss.
In Nigeria, qualified bakers do this often. In most cases, it is the number of bags of flours you intend to produce that determines how much you pay for the rent.
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Use the guidelines below to assist you in decision making when renting a bakery.
Look for a reputable bakery owner
Since you are going to be renting the bakery, you need to look for an owner that will not give you trouble.
Location of the bakery
Ensure that the bakery is not too far from your potential customers. This will cut down the costs of delivery and aid profit maximization. The bakery business will also require a steady power supply. You should get a bakery situated in an area with a regular power supply.
Identify with good suppliers with cheaper prices
Suppliers are those who provide for you the various resources needed for the continuous smooth production of your goods. You should check for the differences in prices from various suppliers and identify with whoever most appropriately aligns with your budget.
You could get a motorcycle for your small scale business or a delivery van as the need may be. It is good practice to work towards a consistent chain of supply.
The cost of a brand new motorcycle is around NGN250 000. A delivery van may cost more depending on the type and the nature of use. You don’t necessarily need a brand new delivery van, you could get a fairly used one.
Starting a bakery business is a big investment and no child’s play. It, therefore, requires adequate planning and funding. But you do not necessarily tear down your account to start.
You could start small and reinvest the profit made on it as your business gradually grows.