Who doesn’t eat bread in this country? Very few. Bread is one of the most eaten staple foods in Nigeria. In Lagos alone, about 10 million loaves of bread are consumed every day. The bread market in Lagos generates about N1.5billion in sales on a daily basis. Every business activity in the bread-making industry is worth billions of naira.
People love to eat freshly baked bread because of its sweet taste and freshness. Bread is one of the laziest foods available to get hands-on quickly. It goes well with some other foods like beans, fried egg, moimoi, akara, etc. It’s one of the cheapest sources of carbohydrates for people.
The bread supply business has been a goldmine and not many people know about it. It’s a cool business that doesn’t require much capital to start and can be run easily without a shop. If you are able to supply loaves of bread continually to your buyers, making a decent income is guaranteed. People won’t stop eating bread anytime soon and the bread supply business will remain profitable in Nigeria.
Any business-minded person can enter into this business and run it either as a full-time or side hustle. The bread supply business is so easy to start in Nigeria. You can think about the business today and start immediately with little effort.
The best type of bread to supply is slice bread. Because it has wide acceptance and people believe that it’s hygienically made, unlike the Agege bread. As we are in the era of freshly baked bread with modern baking equipment, it is easier and faster to produce slice bread than Agege bread.
Do you want to start a lucrative bread supply business in Nigeria but don’t know how? No issues. This blog post will provide you with the necessary information that you need to kick-start your journey.
Let’s dive in!
What is the bread supply business?
Bread supply business is a kind of business where you buy bread from the bread bakery and supply and sell it to the retailers who want to resell it to the final consumers.
You get good bread bakeries to buy loaves of bread from at supplying rates and transport it to your buyers to sell to them.
Bread can be distributed and supplied to provisions shops, supermarkets, restaurants, individuals who resell the bread to the consumers. A large number of people buy bread at provision shops and supermarkets these days. And supplying loaves of bread to these places guarantees good profits for the business.
This is a business of volume and turnover matters. The more you are able to sell loaves of bread, the more the profits.
You can start a bread supply business in Nigeria with N30, 000 or more. There is no limit to the amount of money you can use to start this business. You use the capital to buy loaves of bread at a bakery and sell it to retailers.
How profitable is the bread supply business in Nigeria
Most business ideas are profitable by their nature. How you go about the business matters more than the business idea itself.
The profitability of the bread supply business in Nigeria depends on your ability to sell a good number of loaves of bread to your customer continually. The more quantity you sell, the more money you make.
Let’s say you are able to sell 700 loaves of bread on averagely every week and you make an N40 profit on each loaf— this simply means you’ll be making N28, 000. When you multiply N28, 000 by 4 ( four weeks in a month ), you’ll get N112, 000. And you are not limited to this profit margin. You can increase your bottom-line profits by reaching more customers and selling more loaves of bread to them. The sky is your starting point.
Step by step guide on how to start a lucrative bread supply business in Nigeria
Starting a lucrative bread supply business is really easy. As you are getting to know about the business, I will be presenting to you how to start it by taking these steps:
There is no business on this planet that records success without paying customers. It’s a common thing in Nigeria to see how people rush to invest resources in business ideas without mapping out clear strategies on how to gain customers first. They build first and wait for customers to come. But if they don’t see them coming, they start looking for them here and there—desperately. In most cases, no good results.
As someone who knows what to do, as you’re about to start the business you need to find customers for your bread supply business.
Finding customers is not that hard. In fact, customers are everywhere for you. Your target audience is supermarkets, provision shops, food canteens, restaurants, and retailers. These are the places where Nigerians buy bread from.
Move around to market your business to provision shop owners, restaurants, supermarkets, canteens and retailers. The brand of bread you want to be supplying and selling to them shouldn’t be within their reach, else you may not get a good response from them. Imagine the situation whereby the break bakery is a stone throw to them, it means they can easily go there and get the quantity that they want.
Get bakery to buy bread from at supply rates
One of the first things to do after you have made up your mind to start the business is getting a bakery to buy bread from at supplying rates. Bread suppliers don’t own bread bakeries, so it’s necessary to look for at least a good one to be buying bread from at good rates.
Supplying rate is the price they give to business people who want to be selling bread to those who are reselling. The N400 loaf bread is sold at the rate of N300 to suppliers, and suppliers sell it to resellers at N350 per loaf, and they too make N50 on every loaf of bread they sell. N400.
Bread bakeries are everywhere these days. Move around and talk to their managers that you want to be buying loaves of bread in large quantities from them to supply to people who are reselling.
Bread supply is not new to many bakeries that have been in business for years. There is even a high possibility that they have suppliers they are dealing with and you can join the list too. No doubt there will be some of them who have not started dealing with bread suppliers. This is an opportunity to introduce the business deal to them and be their number one supplier.
Get capital to start the business
To start a profitable bread supply business in Nigeria, you need some amount of money to begin the journey like most other businesses.
The capital needed for the business is not a huge one. N40, 000 is enough to start the business. N30, 000 will get you like 100 loaves of bread while you reserve N10, 000 for other business expenses like transportation.
In as much as I don’t recommend taking a loan to start any business in Nigeria, however, it’s not bad to start a bread supply business in Nigeria with a loan. You can take a soft loan of N40, 000 only. But if it’s possible for you to raise the capital from family members and friends, this is better than taking a loan.
If you’re not able to raise the capital required to start a bread supply business in Nigeria through the aforementioned means, there is another way to go. In life, trust is social capital. If you are known to be a truthful person and you have a good reputation, you can discuss the business idea with the people in your circle of influence. They can stand as guarantors for you at the bread bakery. Possibly they may have a friend who runs a bread bakery. Your good character can open this door for you.
Supply and sell the loaves of bread to your customers
The previous steps you’ve taken to begin the bread supply business in Nigeria are taking you to this final step. You have got some customers in the second step, now is the time to sell to them. Move the loaves of bread from the bakery to their various business places. Get big plastic baskets for supply, arrange and handle the bread properly. Take a bus or keke-napep or okada to deliver the loaves of bread. If you have your own car, it will be very useful for you. But if you don’t have, keep on jumping rides here and there as it’s not good to buy a car in the beginning for the business, even if you want to start big.
Now that you have the basic information about how to start a lucrative bread supply business in Nigeria, you can take action now with it and begin the journey.
From experience, I can say that one of the problems we have in Nigeria and Africa at large is we overlook business opportunities. There are so many ones under our noses but we fail to see them. And this is why you see Chinese, Lebanese, Indians carting away millions of dollars in profits out of the country. They take advantage of business opportunities we fail to see. They solve problems for people and make money.
If you look at the bread supply business in Nigeria with a good eye, you can be making a huge amount of money from it in profits nonstop. Entrepreneurs think in numbers and you are one. Think. Start now.
Do you have questions or suggestions or contrary opinions about this business idea? Please, leave them in the comment tab below. I would really love to hear from you. Also, don’t forget to share this post with your friend. They may need this information seriously.
Start hustle now!