Bread is by far one of the most popular foods in most part of the world. It is widely consumed across the continents by almost all citizens, ethnics and religions groups. Everyone likes the smell and taste of bread, especially when it is freshly baked. It is one of the quickest and cheapest food to get your hands on in time of hunger. I have hardly come by someone that doesn’t or who have not eaten bread. With these in mind, we can safely conclude that starting a bread bakery business anywhere in the world is going to be a viable business.
Like I have always said, the best product to deal with is the product that is in high demand in the market and bread happens to be one of such products. About 10 million loaves of bread are consumed in Lagos everyday while the Americans eat 53 pound of loaves every year. Each French person is believed to eat a whooping average of 3 loaves of bread daily. Over all, 36 billion loaves of bread can only feed the entire world for just two weeks.
So, if you are looking out for a business to invest in right now, you should consider starting your own bread bakery business. I once supplied sliced bread in Lagos and I know the profit we make back then. The same thing goes to bread makers, they make very impressive profit in the business, better than the average business in the country.
Bread bakery is not much difficult to setup once you have the financial capacity and you’re able to meet the requirements and regulation by the authority. In this article, we want to explain in simple language how to start bread bakery business anywhere in the country but before we go ahead, let us first look at the profit potential as well as the potential risks involved with the bread bakery business.
The Profit In Bread Bakery Business
It cost about N80.00 ($0.50) to produce standard sliced bread in Nigeria. The bakers sells at N130 to suppliers and make N50 per bread. The suppliers sells to retailers at the cost of N170 and make N40 gain per loaf of bread they supply while the retailers sells between N200 to N220 to the final consumers. So, N50 is the average gain made by each of the parties involved at every stage from production to the final supply.
A typical standard bakery with good supply network produces and sell 50,000 loaves of sliced bread weekly on average. Now multiply 50 by 50,000 and what you get is the profit for the weekly production and supply N2,500,000.
Since the cost of production have been taken care of by the N80. You just need to subtract the running costs to get your final profit. Let’s say you spend the whole N500,000 for the running cost
1. Cost of fueling your diesel generator for the week = N50,000
2. Cost of fueling and maintaining the supply vehicle = N100,000
3. Cost of labor and staffs welfare during the week = N100,000
4. Damages and other miscellaneous expenses = N50,000
When you subtract all these from the N2.5 million, you will have N2.2 million left as your take home for the week. Can you now see why bread bakery business is considered one of the most profitable businesses in bakery industry?
Risks Involves With Bread Bakery Business
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