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How to Start a Cake Shop in Nigeria

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Are you interested in starting a cake shop in Nigeria? The information in this guide is for you. The cake-baking business is very lucrative in Nigeria because cakes are one of the most consumed snacks in the country. Cakes are loved by many people, both young and old, and they sell in all seasons. So if you have been thinking of a business to start that will bring you great profits, a cake shop will be an excellent option for you. 

Even if you do not have any experience right now or an idea of how the cake-baking business is run, you have nothing to worry about because all the information you will need to get started and become successful is contained in this guide, so continue reading to learn more and find out if it is suitable for you. 

Why You Should Start a Cake Business in Nigeria

cake shop

If you have a passion for cake-baking or you are interested in learning it, here are some reasons you shouldn’t hesitate any more and go for it. 

Cakes are Affordable

One of the most amazing things about cakes is that they are very affordable; they come in different sizes, types, qualities, shapes and so on. So you can always make one that fits your budget. Almost anyone can afford a cake because most bakers create a price list for different categories of cakes; hence customers will always find something they can afford. This also allows you to have a wider range of customers.

Cakes Sell in All Seasons

There is no specific time to sell cakes, and they are oftentimes not made with any seasonal ingredients, so you can be involved with cake baking all year round. This is also possible because cakes are used for numerous events and ceremonies that occur at any time of the year. Hence, your profits in this business are sure; there will never be a time or season when people do not need cakes. 

Cakes are Fun to Make

Aside from making profits, another inspiring reason to venture into the cake-baking business is the fun, fulfilment, and satisfaction it brings. You can explore your creativity and build delicious cakes from scratch. It will be very fulfilling to see the results of all your efforts coming out beautifully every time you bake a cake. 

Cakes are in High Demand in the Country

Indeed, so many Nigerians love cakes, and hardly a day goes by when people do not order cakes across the country. Aside from special occasions, lovers of cakes consume them whenever they feel like it, especially if you are very good at cake-baking; people will always crave the rich, tasty flavours of your cakes and want to buy from you. 

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What is the Cost of Setting up a Cake Shop in Nigeria?

Starting a cake shop in Nigeria will cost at least ₦400,000 to ₦1million for a small or medium-sized cake bakery, including the cost of the shop, baking materials, equipment, and startup ingredients. However, it can also cost as high as ₦5 million to ₦10Million for a large-scale cake bakery. So what you will spend when setting up your cake business will depend on the size of the cake shop. 

How to Start a Cake Shop in Nigeria

If you are ready to take that bold step to start your own cake shop in Nigeria, here are simple, actionable steps that can help you easily achieve your goals. 

Learn how to Bake

Is it possible to own a cake bakery even without knowing how to bake? Yes, you can employ a baker for the job, but how do you know they are doing the right thing? Also, every cake bakery has that one recipe or unique offer that makes it stand out from the competition, but if you know nothing about baking, how will you offer your uniqueness in your business?

These questions will help you see why you need to learn how to bake so that when creating your brand, you can infuse your personality and unique offer into it and not that of a hired baker who may even be a temporary staff. 

cake shop

Create a Business Plan

Developing a comprehensive business plan is one of the best ways to start any business. A business plan basically contains your goals and how you will achieve them. It will include your business strategy, description and structure, financial projections, marketing objectives and everything involved in setting up your cake-baking business. This plan is essential because it will give you a sense of direction and help you know what to expect from your business as you progress. 

Secure a space

Now that you have your cake-baking business all planned out, it is time to make your plans a reality. The first thing you should do, since this is not an online business, is get a space for your cake shop. You can rent this space or purchase it depending on your budget, but here are some criteria to consider when selecting the location of your shop. 

Competition

Your proximity to similar businesses can lead to your success or failure. If your cake shop is very close to other similar shops, you could benefit from the fallout of customers who may like your services more and stick with you.

However, you also need to know that if the competition is very high, it could shut down your business, especially when your competitors already own popular and trusted brands while you are just starting out. Your business will survive if you have something unique that might interest people. Still, if you find that getting enough customers for your business will be too challenging, it is better to check out other locations. 

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Foot Traffic

In this type of business, foot traffic is very important; if you only have people driving past your cake shop, you may only make sales when people need cakes for events or special occasions, and you will miss out on sales from impulse buying. So ensure your cake shop is where many people can see it and easily walk in to buy your products

Area Accessibility

Again nobody wants to be tucked away in a hidden location. Even if you want your business to be in a quiet environment, your shop should still be easily accessible to anyone. People should be able to locate your address easily. So it would help if you set up your shop in an area with motorable roads, famous landmarks, transport links, etc. 

Potential for Growth

Another critical thing to check out when searching for a good location for your cake shop is the potential for growth. Can the location accommodate your business when you decide to expand it? Will you be able to stay there for a long time, or is it just a temporary space? Consider these questions because moving your business from one location to another after years of building your brand in that area is like starting all over again. 

Employable Labour

Depending on the size of your bakery, you will need staff to run it successfully, so it is better to get a shop in a place with a healthy bank of skilled professionals. You don’t want your workers to come from very far places because it will affect their pay grade and efficiency at work. 

Purchase Equipment

cake shop

After setting up your shop in the best location, it is time to fill it with the equipment and materials you need for the cake-baking business and here are some of the most important ones.

  • Mixing bowls.
  • Whisk.
  • Hand mixer.
  • Scales.
  • Measuring cup and spoons.
  • Bakin trays and tins.
  • Spatula.
  • Rolling pin.
  • Oven.
  • Sieve.
  • Cake dividers and cutters.
  • Electric mixer.
  • Display cases.
  • Cooling rack.
  • Piping bag and nozles.
  • Icing smoother.
  • Cake edge decorating set.

Develop a Menu 

As we have mentioned earlier, cakes come in different budgets, sizes, shapes, and types. So you need a menu that includes picture samples to enable your customers to choose what they want when they visit your cake bakery. 

There are different types of cakes you can have on your menu as long as you can make them. The good part is that for big and expensive cakes you only need little samples to help your customers make informed decisions. So feel free to add any cake you can think of to your menu. 

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Hire Staff

No matter the size of your cake bakery, it is advisable to get the help you need. You may not be an expert in making certain types of cakes and even if you can bake all kinds of cakes perfectly well you still won’t be able to do all the work alone. So consider hiring bakers, cleaners, receptionists, kitchen help, etc., to make your cake business more efficient and productive. 

Establish a Supply Chain

You will need to establish a supply chain for your baking supplies and ingredients, find a good supplier that can provide good quality and affordable ingredients for your cake-baking business, and it is better to stick to one supplier to ensure you always get the best items. 

Market Your Cake Business 

Marketing is also an essential step in your cake-baking business. Now that you have successfully set up everything you need, you need to create awareness to drive traffic to your cake shop. Here is a list of potential target markets for your cake business:

  • Hotels and resorts that offer baked food as part of their hospitality services.
  • Individuals who want to buy cakes for special events like anniversaries, birthdays, weddings, and so on.
  • Bakeries that sell cakes and other confessionaries. 
  • Event planners who need to purchase cakes as part of their services.
  • Retailers or stores that sell cakes.
  • Restaurants and cafes that offer cakes on their menu. 
  • Corporations that use cakes for company events or purchase cakes for staff, partners and clients. 
  • Export market including buyers from other countries.
  • Online shoppers who purchase cakes from e-commerce websites, social media and other platforms. 

These are the potential target markets you will have for your cake shop, and you can utilise different marketing strategies like influencer marketing, social media marketing, email marketing, direct marketing, etc., to reach out to them and make them your customers. 

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Starting a cake business in Nigeria requires dedication, consistency, hard work and attention to detail. You must first develop the right skills and invest in yourself so people will see your value and want to invest in you. So owning a successful cake shop in Nigeria doesn’t take so much, just know what to do and ensure you do it the right way. We hope this guide will take you a step closer to starting and successfully running a cake business.

 

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