BusinessHABHow to Start Biscuit Business
How to Start Biscuit Business: See the step-by-step guide on How to Start Biscuit Business in Nigeria.
Here you will find biscuit business startup guide as well as feasibility studies and marketing strategies.
Biscuit is an everyday snack in the country.
Virtually every body eats biscuit from the year-old baby to the age-stricken folks.
We are Nigerians, we love biscuits. But then, how to start biscuit business in Nigeria is very important.
This paper sets out to do just that. That’s is, answer categorically and explain the steps and processes in starting a biscuit business in Nigeria.
I want to believe you already know what biscuit is and maybe for those who don’t know what biscuit is, a biscuit is a snack baked and sold in small nylon sachets.
Biscuit is a favorite snack among children perhaps, and unarguably due to its affordable cost, sweetness and ready availability.
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How to Start Biscuit Business
Starting Biscuit Business in Nigeria – Notable Prospects
You and I know that once a commodity is in high demand, such is a ready market to exploit.
You can make huge money from biscuit business if you know how to plan and achieve strategic results. The sweet part is that it is not so difficult to start biscuit business in Nigeria. You can start even today.
So, do you now want to know how to start biscuit business in Nigeria? Let us begin the discussion properly.
There are two broad arms in the biscuit business – Production and Sales/Marketing. I will try as much as possible to elaborate on these two. whichever way you look at it, for your biscuit business to stand out, there are basic/core values you must incorporate from the word go!
Strategic Foresight for A Sustainable Biscuit Business Startup
Starting a successful biscuit business entails a lot of things. Most importantly, you must ensure that:
- You provide high quality, delicious and highly nutritional biscuit products.
- Make available varieties of the same product for different categories of people. for example, there are biscuit products for children, adults and the aged. While Cream Crackers are best for adults, children would more often than not always prefer sweetened biscuit products.
So, you should take this into consideration as you set out to start your biscuit production or sales business.
- Package your biscuit product well and make it not just presentable but also quite attractive. this should depict crisp, delicacy and nutrition.
- Engage quality customer representative personnel.
- Keep your prices fairly low and affordable as possible.
If you can put the above into practice, then let us move on to the next item on how to start a biscuit business proper.
To start a successful biscuit business in Nigeria, you have to take into consideration the Materials, manpower, and Money required to start and run successful biscuit businesses in Nigeria. this starts with the factory building.
Biscuit Business Feasibility
Going into biscuit business without a good business plan or feasibility report is disastrous. in fact, the business will start failing from the first few weeks after kickoff.
A feasibility report would give a detailed report of the market analysis, machinery, plant and raw materials, income statement, manufacturing methodologies, cash flow analysis, balance sheet as well as prospects for the business.
Location of Biscuit Business
Whether it is production or marketing of biscuit products, the location of the factory is really not important as per availability of customers.
What is of the essence, however, is the nearness to and availability of the raw materials and facilities to make your production effective.
When it comes to biscuit marketing, the location is also not very much of importance as biscuit marketing and distribution follows linearly, the traditional distribution channels.
In this case, it is mostly from factory to wholesalers, then to distributors (depot), and from there to sub-members of the distribution channel such as petty traders etc.
Financial Cost of Biscuit Business
It is estimated that about N1m to N29m is required to set up profitable biscuit business. how true this is cannot be necessarily argued as the cos of things keep going up every day.
About 29million naira is required to set up a productive and effectively running biscuit business.
If we do a breakdown of this, we discover that about N14.5m alone would go into machinery. About N3.7m could go into power supply and acquisition of generators.
Biscuit production business needs a working capital of about N5.5m for a running off three (3) months. there are other auxiliary/miscellaneous costs such as NAFDAC certification fees, Manufactures Association of Nigeria (MAN) fees etc.
This is apart from other fees you would have to pay as association fees within the biscuit manufacturing industry.
It is equally essential to note that about N15.0m is required as yearly production amount/cost while the cost of materials and usage is kept at N2.3m.
Profit of Biscuit Business
Considering the financial/production costs outlined above, it is estimated that with a 25g/packet and 40,000 packets produced daily (1 Ton) – which yields about 555 cartons produced daily, it is possible to make about N40.4m profit of which the net profit prior to taxation could amount to N14.9m
It is necessary to note that unlike other businesses, biscuit business can begin yielding profits right from the year of inception. within a time, a range of three years, the business would have churned out all its investment costs with great profits.
Raw materials for Biscuit Business
The main components of biscuit production are flour, sugar, and oil (palm oil).
The good news is that these can be sourced locally while other less important additives may be exported.
How to Start Biscuit Business
Machinery for Biscuit Business
You would need extrusion, depot facility, cookie capping machine, cutting and slitting devices, spreading devices, computer terminal, and equipment, small wares, backwash facilities, refrigerator etc.
However, to make biscuit production successful, the following materials are required:
1.Dough mixer, 100 kg cap
2.Automatic rotary cutting and punching machine with standard accessories
3.Oil fired baking oven with standard accessories
4.Rotary molder/Forming machine for soft biscuit
5.Sugar grinder
6.Dough break with standard accessories
7.Flour sifter
8.Dough trolley
9.Oil spraying machine – with heater
1o. Stacking and packing table
11.Two-tier cooling conveyor with standard accessories
- Tunnel Gas Oven
- Rotary moulder/Forming machine for hard biscuit
- Sandwich Machine
- Layout turning Machine
- Packaging Machine
- Cooling Conveyor Machine.
How to Start Biscuit Business
Most of this Equipment may be locally sourced or imported overseas.
Administration – Plant Capacity
You have to consider what kind of plant or factory layout you wish to use for your biscuit business.
This would decide the kinds of molds you would be using and the kinds of biscuits you would be producing.
As such, you can either go with Chocolate Spread plant capacity, Coaster Crispy Biscuit plant capacity or Cracker Biscuit plant capacity.
A minimum of 23 factory workers may be required comprising of semi-skilled, skilled and administrative workers.
If you decide to combine the three kinds of plants hitherto cited.
That would give you 150kg biscuit/Hour. 10008kg of biscuits would be produced per day, about eighty percent of activated capacity operating on a single shift of eight (8) hours a day, 280 days per year.
The plant may then be grown at 10% annually till it‘s capacity is fully activated.
How to Start Biscuit Business
Summary/Conclusion
We have looked at how to start biscuit business in Nigeria all along.
This discussion is endless and as much as it has been able, give factual and timely resources which you can leverage on to achieve your desired quest in the biscuit production business as well as sales and marketing.
I have taken the time to explain that the location of biscuit business in Nigeria is non-selective since the business can suit into any ecological stratification.
Biscuit is something that is eaten by the old and the young and has high demand value.
You would want to start biscuit business today.
I know you would. so why don’t you give is a head start today with priceless information available at your disposal.
You may please drop your comments, contributions, and suggestions for this piece. I’ll attend to them. Thank you.
Read also: How to start cake making business
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2 comments
Am interested in the biscuit production business. Let me have your number so we can talk. Thanks
I am just thinking on how to start a small biscuit business