H ow To Start Bread Supply Business In Nigeria
Bread has
been the major food staple from time immemorial, that’s why everyone loves
bread. Back in the ancient time, the word “Bread” denote food in general and is
still regarded so even down to this day. Most families eat bread more than once
everyday and it can be eaten in various forms with different spices. That is
why bread supply business is one of the most ideal small business to start
right now.
The
importance of bread as food has never been in question – There is hardly any
tribe, religious group or race that doesn’t eat bread. Therefore, dealing in
bread as a business means you’re dealing in product that is in high demand, and
whatever return you’re making from it, is going to be a stable return since
you’ll will be constantly supplying and getting your profit returns.
Sliced
Bread is the ideal type of bread for supply because of its wider appeal
and higher quality. Not everyone eats Agege Bread though some people it better.
Sliced bread is more likeable and is considered of higher quality (at least
that’s the general perception) some may disagree on that.
One
beautiful thing about slice bread supply business is that you will make quick
returns. Once you’ve done your marketing to get your regular retailers, all you
will be doing is to supply them at interval and get your money cash at the
point of supplying. So, it’s a business you can borrow money to do and be able
to pay back almost the same day.
Another
great thing about sliced bread supply business which you will love to hear is
that, it’s a business that offers very decent return on investment and the
repeat sell is almost endless. If you are able to supply 500 loafs of slice
bread with profit margin of about N40 per loaf, you’ll make 500×40 = N20,000
every time you supply, and you can supply twice in a week depending on the
demand and your brand. I’m experienced in this business and I can tell you this
is the fact!
Requirements to Run Bread
supply Business
The
requirements are simple and anyone can meet up with it including you! It’s one
of the cheapest business anyone can start and you don’t need any further
training more than what I’m going to explain here, but you need some hard work
and I think that’s the hallmark of every business, hard work is a virtue and
you need it in your bread supply business if you hope to make lots of sales.
1. Get Customers
You need
good customer base, I mean retailers to whom you’ll be supplying to – the more
retailers you have, the more breads you will be supplying and the more money
you will be making.
2. Get Means of
Transporting
You need
means of transporting your bread; your customers/retailers are spread all over the
place and in most cases, they don’t come to you, you go to them to make supply
and collect your money. You need at least a motor-bike for that purpose.
3. Source for Good
Marketable Bread
You will
need a very good product that people love, you don’t have to be supplying all
the bread brands, one type is just enough but you need to get one that will be
highly acceptable by consumers. Getting a good bread may as well be the
difference between success and failure in this business.
4. Get a Shop or
Offloading Point
You will
need offloading point where you will be offloading your sliced bread whenever
you have a supply. From there, you can distribute it to the retailers; if there
are any remaining breads or some you’ve not supplied, they will be stored there
for future distribution. Having known the requirement, next is how to put
everything together and get your business started
5. Look for a Brand
You need
to know the bread you intend to supply so that you’ll be able to explain better
to your intended retailers. First, scan the area you want to be supplying and
see what types of sliced bread that is on sale. That will help you to avoid
encroaching on another supplier’s territory, a supplier who is already
supplying a particular bread brand in an area may prevent you from supplying
the same brand he or she supplies.
Then, go
out and look for a unique good sliced bread brand that is not found in your
area, visit bus stops in other area to see the types of sliced bread they are
selling, pick the one you like and look at the label to get the contact address
and phone number, you may ask the bread sellers for more details about the
brand (how fast it sells and life span) they’ll be willing to give you the
information.
6. Proceed to the Bakery
Personally,
go to the bakery to negotiate the franchise, the bakery manager will be more
than happy to welcome you because, you are bringing new business to them and
helping them open a new frontier. When I was in the business, we used to get
the sliced bread for N200, sell to the retailers at N250 while they in turn
sell N300.The manager or whoever is in charge of the bakery will be able to
explain what is obtainable now.
Apart
from the price, you should negotiate logistics as well, like bringing the bread
down to your designated offload point which is the norm but they will try to
withhold it from you if you don’t know.
Note: some well-known brands
(UTC, V-lue, Butterfield, etc.) may not agree to transport it down for you except you’re
buying in very large quantities.
7. Get the Retailers
Having
armed yourself with the exact product you want to supply, the next thing is to
find the retailers. Talk to provision shop owners and bus stop bread women.
These two set of people are your biggest prospects as far as sliced bread
supply business is concerned.
Each
person you talked to that accepted to get your supply, find out how many loafs
of sliced bread he will be getting. At the end of the marketing, calculate the
estimated number of loafs these people demanded for and base your buy on this.
8. Get your Supply
Equipment
Buy a
Motor-bike if you can afford it (a Bajaj motorcycle goes for between N150,000 –
N200,000) that will make your supply so easy and help you reduce over-head
costs. But if you can’t afford that, just pay Keke-man to take you round.
Find your
offload point, it can be your home or a shop – go for shop if you can afford it
(N120,000 depending on the area) but if you can’t afford that too, use your
home until you raise enough money.
Once you
have these things in place, call the Bakery and ask them to bring the bread
down – you’re ready for business. If you can supply 1000 loafs in a week, you
will be making N50,000 weekly.
I wish
you success as you pursue your dream business this year!
Do you
need a business plan or enquiry for this business, drop a comment then I will
reply
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