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A bakery is the home of production to all food made with flour such as bread, cookies, pastries, cakes e.t.c. Bakery business is widely regarded as one of the most lucrative business in Nigeria because bakery products like bread, snacks are widely demanded for everyday as they also serve as food. As a car without fuel is of no use, so also a body without food will be weak. Food is the major supply of strength to the human body. Bakery products especially bread is the quickest and cheapest food to get when you are hungry. Bread is consumed in most part of the world. Research showed that about 10 million loaves of bread are consumed in Lagos every day and over 36 billion loaves of bread will feed the whole world for two weeks. This make bakery products to be demanded for worldwide everyday. To start a bakery business, there are some steps you need to take. The steps are listed below;



Poor planning or not even planning at all leads to poor performance. This is the first step to take when starting any business at all. To start a bakery business, you need to sit down and plan. You have to think about and decide the kind and size of bakery you want to start, how you would get your capital, the location e.t.c. You should also make plans on how you want your bakery to operate, methods of operation to be used, how it would be different from every other bakery. The truth is that, there are so many bakeries so you have to make strategic plans on how to make your bakery unique and how to make it stand out from that of your competitors.


Before putting money into any business whatsoever, you must have made the necessary research about such business and the bakery business is no wise different. Before opening or starting a bakery, you must have adequate information about everything that has to do with a bakery; the cost of opening a bakery, equipment required or needed and how it operates. You must make necessary research about the market, your potential customers. Research is very necessary as it gives you more insight into the bakery business. Meet with those who have done the business in time past or those who are still into the business to get information about the business, ask them questions and receive feedbacks.


                                        WRITE A BUSINESS PLAN

One of the most common mistake many business owners make is that they believe business plan is for some selected business but actually it is not. A business plan is needed for any business you want to start as it keeps you focus.

What exactly is a business plan?

According to Wikipedia, a business plan is a formal written document that contains business goals, methods on how to attain the goals and the time frame in which the goal will be achieved.

In simple terms, a business plan summarize your business and its goals. A well written business plan also drive investors to invest in your business. A business plan should contain;

  1. Executive Summary : This is the summary of all what is in your business plan. The executive summary must be captivating enough to make people want to read your business plan. It should also contain your vision and mission statement.
  2. Company Overview : This should contain who you are, your business goals, how you intend to operate your bakery, and everything about your bakery.

3.Your Products : This section of your business plan contains or explains a clear description of the type of products your bakery will offer, it will explain if you want to run a bread bakery business or you want to include other products like cakes, snacks or pastries, cookies e.t.c.

  1. Market Analysis : This describes everything about the market for your bakery products, your market research, your expectation on the market , how your bakery will strive in the market, your competitors. It also contains your SWOT analysis where you list your strengths, weaknesses , opportunities and threats .
  2. Marketing and Sales Strategy : This section is very important as it explains how you intend to market or sell your products , how you will promote your bakery and penetrate into the market. It should also include your selling cost, promotion and advertising costs, e.t.c.
  3. Business Structure: This will contain everything about your business, the type of business; either sole proprietorship, partnership or limited liability company, the number of staffs you want to hire and the intended salary.
  4. Financial Analysis: After getting your market research, a professional accountant should be consulted to help prepare the financial analysis of your business plan. It should contain realistic financial information about a bakery, which should include your cash flow statement, projected income statement and statement of financial position ( balance sheet ) for the next three or five years and other relevant information.
  5. Conclusion: This should highlight the key strengths of your plan, remind the reader why your business is in the best position to execute the plan, and the summary of your vision and goal.

                                    GET THE REQUIRED CAPITAL

As earlier said, the type of bakery you want to operate will determine the amount of capital you will need. Money is very important in starting any business, the next step to take is to source for fund. Some of the factors that determine the startup capital are location, choice of equipment, type of bakery, number of staffs to be hired and some other amenities. If you have the required capital to fund your bakery business, you are good to go but if not, below are some of the ways you can raise capital for your business;

  1. Personal savings.
  2. Get a bank loan: This is one of the most common way people finance their business, by obtaining loan from bank.
  3. Crowd funding: It is the act of funding a project by raising small amount of money from a large number of people.
  4. Loans from family and friends.
  5. Apply an Angel Investor: An angel investor is a high net worth individual who provide financial backings for small start-ups or entrepreneurs, typically for ownership equity in the company. They are also known as private investor or seed investor.
  6. Cooperative Societies: They also give people loans at a particular interest rate which they must pay at an agreed period of time.

                                   LEGALISE YOUR BAKERY

You can hire a professional lawyer to help you with this stage. To operate any business at all in Nigeria, there are some steps you need to take;

  1. Have a Business Structure: Your restaurant should have a structure, maybe it’s a sole proprietorship or partnership.
  2. Have a Business name: One should start thinking of the name you want to give your bakery, this is very important. Do your research to know if the name you have chosen can be legally used by your business, that is, if no one has registered that name.
  3. Register your bakery: After deciding on a business structure and a business name, the next step is to register your bakery business with the Corporate Affairs Commission ( C.A.C).
  4. Licenses and Permits: You will need to obtain the required licenses and permits related to the setup of your bakery.

After registering your business with the Corporate Affairs Commission ( C.A.C), you will need to register with the National Bakery Association to be an official member, you also need to register with NAFDAC because you are dealing with what people will eat.


The location of your bakery matters a lot, in fact it has a lot to do with how you attract your target market. To make sales more feasible and realistic, you should get a location close to your target market. Apart from the nearness to potential customers, other things to look out for when securing a location for your bakery business are;

  1. Competitors: Another thing to look out for when determining the location of your business is the nearness to other bakeries. For a startup, if you have two or more restaurants around your vicinity, it might not be good enough as you may not be able to compete with them.
  2. Costs: You must also consider the cost of establishing your bakery in a particular location.
  3. Environmental factors: You can’t afford to locate your bakery close to a cemetery, a sewage deposit, waste dumps or anything at all that can terminate your image. In this type of business, you need to be very neat because you are feeding a whole lot of people and you would not want to spread food poisoning or contaminate people so you have to be extremely neat, your surroundings need to be clean always and your workers must also appear neat at all times.



This is an important aspect of running a bakery because you can’t produce and sell without the necessary equipment and it is also the most expensive asset in a bakery. After obtaining the required capital, then you can take a step further to get the necessary equipment. You must make sure you get quality equipment to save yourself the stress of getting new equipment every month. This also include buying the materials needed for baking like flour, baking powder, and yeast e.t.c.

According to an online source, the minimum amount to plan for opening a bakery is seven hundred thousand naira (700,000).

Some of the equipment needed in a bakery are moulding machines, mixing machines, production pans, disposable hand gloves for workers, bread cutter or slicer, workers uniform ( this is optional though), carry pan, generator, big ovens and big tables.


Even if you are planning to start a small restaurant that is not too big, you still need people to work with you. You can’t be the one mixing, rolling, spreading and doing a whole lot of things at the same time, you definitely need workers. The number of workers needed depend on the type and size of bakery you want to operate. You will need nothing less than five to seven workers for a small bakery.

Employ people whose values are aligned with yours, who are capable, who are easily teachable, trust worthy people ,who are experienced in the restaurant business, customer- driven people and friendly people because this type of business deals with different kind of people and the attitude of your workers to customers can boost or reduce sales.


After you’ve gotten the necessary equipment, gotten a location, gotten capital and your workers are in place, you can start manufacturing your products. You might like to produce in small quantity for a start and expand your production as time goes on.


At this stage, when all things have been put in place, you can now start selling your bakery products. Note that the quality of your product is the greatest way to gain an upper hand over your competitors, to draw new customers and to retain old one. Never underestimate the power of the quality of your product




This is the last stage in setting up a bakery business but it’s definitely not the least. You must seek for ways to make people know about your bakery. A good way is to improve the quality of your bakery products, with this you draw the attention of new customers and retain old ones. You can also advertise your bakery, make use of social media e.t.c.


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Damilola Babatunde has a great passion for writing. She write articles on starting a business, how small business owners can grow their business e.t.c and many small business owners have really benefitted from her write ups.