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How To Start Biscuit Production Business
In Nigeria
Biscuit production business is very lucrative and can be
embarked on by any interested individual. Biscuits are commonly
consumed snacks that come in different flavours and types.
Unlike breads and some other baked products, biscuits can be
preserved for a longer time thereby making sales across several
states very possible.
For example, in Imo State you’ll find different biscuits that
were made in Oyo State, Lagos State, Anambra State, Rivers State
and more. But in bread, you’ll mostly find bread made by Imo
State-based bakeries except in the case of Yale bread and some
other ones that travel across states.
Biscuits can be eaten alone as snacks, as breakfasts with tea or
with other soft drinks. A good target market for your biscuit
business includes places where children gather like schools,
churches and more.
Your target market will determine the type of biscuit you’ll be
producing and the prices you’ll be selling them. For example,
you can easily sell ₦10 biscuits to pupils and little children
while biscuits of up to ₦500 sell well in the supermarkets.
Considerations for Starting a Biscuit Business In Nigeria
Just like every other business, there are some things you need
to do before launching your biscuit production business in
Nigeria.
Some of them include:
Getting your business registered
Registering your business in Nigeria and getting the necessary
licences in very necessary to avoid issues in the future. Some
licences you’d be getting include the Corporate Affairs
Commission (CAC), Standards Organization of Nigeria (SON),
NAFDAC, National Health Insurance Scheme and the Ministry of
Health.
No business runs without enough start-up capital. You’ll need
funds for virtually everything counting from buying the
machinery to registering the business most importantly, buying
the ingredients. You can source funds from your savings, loans,
grants or by borrowing from friends.
This is another important factor that determines the growth of
every business. Inasmuch as you might be delivering to people
across different states, your factory must be situated in a good
location.
Factors that should determine your location include your source
of raw materials, availability of electricity and manpower.
Design an effective and killer selling strategy
What will attract people to your products? Employ the services
of a good nylon production company, your packaging really
matters and would go a long towards attracting customers to you.
Reach a wider audience by taking advantage of the available
social media platforms and other online advertising platforms.
Also, remember that advertising shouldn’t replace the need for
you to reach out to the shops and stores around.
The next step will be to write your business plan. Your business
plan is very necessary for the growth of your business and will
not only determine the monthly expenditures but also your income
ratios and more.
Start hiring your employees
Biscuit business is not a small-scale business and you’ll need
the services of other employees. You can however skip this part
if you’d be venturing into a small-scale type of biscuit
production.
Your employees shouldn’t be hired based on sentiments but people
who have experience in biscuit making and good communication
skills.
You’re almost set but before releasing your products to the
market, endeavour to conduct a market survey to know the price
ranges of similar products. Avoid over-pricing and at the same
time, be sure you’re making your profit.
Start marketing your business
In order to generate sales, you need to market your business by
advertising and creating awareness. You can do that by
distributing fliers, running online ads, launching
TV/radio/newspaper campaigns, banners, billboards and more.
Machinery Required For Biscuit Production
Some basic equipment you’ll need for your business include:
Ovens, Large baking pans, Sandwich machine, Cooling conveyor,
Packaging machine, Tunnel Gas Oven, Flour mixer machine, Rotary
forming machine (for both soft and hard biscuits), Oil Spray
Machine, Layout Turning Machine,
Other Things You Might Be Needing Include: Storage bins for
ingredients, Kitchen space and countertops, Business brochures,
Biscuit recipe, Health rating certificate, Business License
Branding: Your branding really matters in this business and will
contribute a lot to your success. Make your adverts attractive
and engaging so people will want to have a taste of your
product.
Pricing: Your pricing is also another factor that will attract
buyers to you. Your target market should determine the type of
biscuit you’ll be producing and your pricing. If you’re
targeting primary school students, the prices of your biscuits
won’t be the same with the working class.
Product Quality: You’re trying to enter an already saturated
market so your product quality should be the best it can be.
After attracting them with good pricing and branding, your
quality will play a huge role in keeping them to your product.
Marketing: This involves pushing the product and it’s also
imperative for your business growth. You can achieve this by
hiring a vibrant marketing team that will go into the markets
with your products. Their pay can be based on conversions or
fixed. Pay based on conversions will be better because it
motivates the marketers to work harder.
The capacity of the biscuit factory determines the volume of
biscuit that are produced on a daily basis. The average biscuit
production machine produces about 1000kg of biscuit on a daily
basis when its on 8 hour shift.
Biscuit business in Nigeria is a very profitable business
because it is one of the most regularly consumed snacks in
Nigeria on a daily basis. If you are thinking of venturing into
this business you are on the right track because this business
can turn you into a multi-millionaire.
Finance. :Total cost of production machinery is about 25million
Naira excluding, safety equipment, generator and operational
vehicle. Adequate working capital is needed to propel operation
to when the plant would be self running.
Profit after tax in the first year is projected at about 12
million naira and payback factoring cost of setup and building
lease is in the 3rd year. Bigger capacity Plant would generate
higher returns with a quicker payback period.
Get our practical training guide on how to
set up a lucrative Biscuit Production Business Our sample Biscuit Production Business Plan in Nigeria can be used to access bank loans, proposal writing and grant applications. The business plan was complied after a thorough feasibility study on Biscuit Business in Nigeria was done. Remember, the key to success in the biscuit industry is offering quality products that meet consumer needs, effective marketing, and sound financial management. With dedication and strategic planning, your biscuit business can become a household name in Nigeria and beyond.
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