Is
setting up a business one of your priorities this year? Is your salary not
enough to cater for your family responsibilities and you are looking for an
additional means of income? Have you been unemployed for a while and looking
for business ideas that are lucrative? Are you approaching retirement age and
have not decided on a business that will generate steady streams of income for
you?
If your
responses to these questions are yes, then you can consider investing in a
bakery with a minimum of N150, 000.
A report
on the prospects of bakery by Euromonitor notes that there is projected growth
in retail sales of baked goods, expected to be strong at an annual rate of
three per cent.
According
to the report, the increasing population, the rising disposable incomes and the
growing desire for convenience and variety among Nigerian consumers are factors
that will drive the growth.
As a
result, it suggests that new products, improvements in distribution, price
promotions and other marketing activities will also help to sustain robust
demand for baked goods.
Moreover,
sales of packaged and industrial products are expected to grow faster than
those of unpackaged/artisanal products in all major baked goods categories over
the forecast period, the report observes.
In order
to achieve your dreams of owning a low-cost bakery, here are some useful
guidelines to follow.
Get
trained
Basically,
bread making does not require any form of qualification but requisite knowledge
and skills in baking a variety of bread are needed.
The
Managing Director, Flygapp Bakery School, Mr. Olumide Sanda, says that it is
possible to start a bakery from home and make enough money for a bread shop.
He says,
"The starting point is knowledge. You need to know how to bake varieties
of bread. The business of bread making is still open for new entrants as there
are more opportunities to be explored in bread business. So many have doubted
the possibilities of starting a bakery with one hundred thousand or a little
more at home, some have gone further to analyse it and concluded that this
system is not workable.
"There
are different types of bread that can be made at home so you have several
options to choose from. Recipes like sweet wheat bread, chelsea buns, coconut,
fruit bread, sardine bread, croissant and others are good recipes for a small
scale bread business."
Learn the
processes
Explaining
the baking process he says, "The process of bread making has become
simpler and easier depending on the recipe you have. The normal bread process
is that after scaling and putting the ingredients together you will knead with
your hand or spiral mixer, after which you will shape to the required sizes and
put into pans."
"You
will then give about one hour or less to rise depending on the size of the
bread while you pre-heat your oven to 200 degrees and then you bake between 16
and 30 minutes depending on the type of bread recipe as well as the size of the
bread. A good bread should have a workable recipe. This process can be usable
and sustainable even when you have large quantity of bread to produce.
Purchase
bakery equipment
Most
bakers start small from the confines of their homes. Sanda says that some basic
equipment are required for start-ups.
The N150,
000 capital for a home-based bakery will exclude mixing machines, as such Sanda
says the process of mixing the dough can be done manually because a spiral
mixer will cost an additional N150, 000.
He lists
a gas-fired oven which cost N70, 000; an electronic and manual weighing scale
of N10,000 coupled with baking pans and trays valued at N15, 000, as some of
the indispensable equipment a baker can start with.
In
addition, to the above, he says two stainless bowls costing N4000; a bakers
table for kneading dough valued at N6500; a N2000 rolling pin and bread shelves
costing N5000 are to be purchased.
"I
am not saying you cannot start big but you can start small and gradually grow
and possibly attract financing for expansion," he adds.
Get
ingredients for the first set of loaves
Presently,
Sanda says a bag of good quality flour cost N6500; while a bag of sugar that
will be adequate for the production of about 10 bags of flour cost N8500.
He adds
that baking fat to make six bags of flour depending on the recipe sells for
N6000 while N100 salt to produce one bag of flour and packaging material
costing N10, 000 are also required.
Market
your products yourself
Marketing
a new business or product can be time consuming, and costly for an entrepreneur
that is working with a small budget.
As such,
experts advise that every business owner should learn how to market their
products and services to save cost. But as the business expands, the marketing
aspect can be outsourced to professionals.
Sanda says, "Remember every marketing must
be handled with a lot of creativity, this means you need to develop sales
strategies for yourself. In conclusion, please note that as in all businesses
you need passion, discipline and a strong determination to make good profits in
bakery/bread business and grow especially when you are starting small."EXTRACTED FROM: THE PUNCH NEWSPAPER