Re: Advice needed : How do I successfully manage my bakery In Nigeria from the UK?. by samueloyibo: 10:25am On Sep 02, 2014 |
I also wanna Let You all know and lots of master bakers Out there,,, I teach Master baker How to Do different kinds Of bread,,, You might find the one that will interest you... Some of the name Of my Bread Which i teach Are Super Golden ,, Chairman ,,, Snail bread Etc |
Re: Advice needed : How do I successfully manage my bakery In Nigeria from the UK?. by samueloyibo: 1:39pm On Sep 25, 2014 |
[center]I can help you manage it.. that shouldn't be a problem... just call Me 08068494509 ,, I have all the Qualities and experience needed in bakery ... from mixing to baking... I can handle the bakery for you,,, you will be surprise the way the bakery will spring up In less than six months,,, I'm not bragging Because I have helped someone with similar issue before ,, but now the bakery is one of the biggest bakery in Benin city... [/center] |
Re: Advice needed : How do I successfully manage my bakery In Nigeria from the UK?. by oboks: 7:52pm On Feb 01, 2015 |
Bakery for lease at igbo-elerin, okokomaiko, lagos. Contact-08139321081. |
Re: Advice needed : How do I successfully manage my bakery In Nigeria from the UK?. by babytejiri(m): 4:22am On Jan 02, 2016 |
qppoww |
Re: Advice needed : How do I successfully manage my bakery In Nigeria from the UK?. by godsgracealways: 11:32am On Jan 02, 2016 |
Understand this that if you don't monitor it your self you may not get profit. You are the only one that can understand the WHY of the business. Go and monitor it urself or you quite the business to invest in an asset. Like real estate. Wish you well |
Re: Advice needed : How do I successfully manage my bakery In Nigeria from the UK?. by bebe2(f): 5:31pm On Apr 17, 2016 |
hello all, here is an update on the bakery.
i closed it down, split the building in 2 apartment of 2bedroom each, rented it out for 120k per annum.
i took the 240k, and shared part of it to some elderly pple in my family and used the balance to buy dryfish, egusi, ogbono and some laces and jewelry which was all posted to.
far better than all those years i wasted on that bakery business. 5 Likes |
Re: Advice needed : How do I successfully manage my bakery In Nigeria from the UK?. by nairamaniac: 6:30pm On Jan 30, 2018 |
bebe2: hello all, here is an update on the bakery.
i closed it down, split the building in 2 apartment of 2bedroom each, rented it out for 120k per annum.
i took the 240k, and shared part of it to some elderly pple in my family and used the balance to buy dryfish, egusi, ogbono and some laces and jewelry which was all posted to.
far better than all those years i wasted on that bakery business. I went through every bit of ur thread. The end made me cry and laff at the same time. So sad and funny ending at the same time. I have a thing for businesses and its management in general. And its like u really had/have a passion for the bakery business. Well even though its a closed chapter, u owe it to yourself to know why it failed, so such mistakes are not repeated in other aspects of your life which may transcend bakery business. There would have been several reasons why it failed. But let me start by saying you definitely got it wrong on expecting 40% profit from each bag(plus ingredients). It would never have been possible even as at then. The only way you would have arrived at that projection is if you neglected a lot of expenses. In business, there are 2 types of expenditures; A) fixed expenditure B) Recurrent expenditure I take it that all your total cost to buy a bag and convert it to finished product is in the recurrent expenditure. I believe you neglected some major details, especially in the actual expenditure for the conversion. That's the only way 40% would have been successful. And probably the reason you made such omitions was that you were incapable of inculcating those obmited details into one bag of bread. Either that or you went into the business with a mindet of 40% based on what you heard from people. Now I am sure you didn't include recurrent expenditures such as; 1) Salaries/labour 2) electricity( phcn) 3) Diesel for Generator 4) Gas/ firewood / Charcoal for the Oven 5) Cost of supplies to retailers (If you supply to Them) 6) Nylon (painted nylon) 7) Servicing of equipments( those machines, mixers, Miller's and even supply vans have an average servicing cost per month) If all the above are put put into consideration, I tell you, the most you would have made as profit even as at them is 20%. Now taking ur figures into consideration. You were making around 1200 from a bag which cost 11,800(plus baking). It means you were making a percentage of approximately 10%. But according to me, I say the most you could have made was 20%. 20% translates to making approximately 2,360 per bag. And that is a maximum. Fine, 10% may have been on a low side, but. believe me 15% is more than reasonable. At 15% you should have been making somewhere around 1,770. That is most likely what you in were making. Meaning if your sister wasn't performing or eating into your profits. Her error at 20% profit was 2,360 - 1,200 = 1, 160 Her error at 15% profit was 1,770 - 1,200 = 570 Do your analysis properly and you would realise the 15% one was more likely than 20%. At your expected 40% profit, it means they (your sister and co) where in accounting for; 40% of 11,800 minus 1,200 = 4,720 - 1,200 = 3, 520 HABBA!!! It never happened. I have been involved in feasibility analysis of several businesses, including bread bakery. However there are several other factors why you may have experienced such low turnout or losses. Your ingredients were too expensive. Which made your quality too high for the price you were selling. You didn't get your formula right. Maybe you were using eggs, milk, which were not necessary for simple bread. Another reason would have been that your people were buying other ingredients besides flour at a higher price than what it should have been. Either they inflated those prices or they were cheated by the sellers of the materials. If I may ask, how many bags were they selling on the average per day. Not how many they were producing. At times, people are misled by quantity produced per day. Let me explain; Your company may have been producing 5bags per day for 25 days in a month. But they were selling 2bags per day for 30days. Meaning at anytime (T) their would have been excessive backlog of bread on your shelf. Meaning your production costs was multiple times more more than your actual sales/profit. Another problem was using heavy equipments to do small work. That is mechanical-disadvantage. You say automatic-mixing machine and bought it. Why? Those things are for people that mix like 8bags and above. Currently the big size cost around 4.5Million. But why buy that when you are not selling like 8bags a day and producing like 12bags a day. You should have gone for the manual mixer which currently cost around half a million. Even though it would entail more labour/salary which is nothing compared to the light bill/diesel your auto mixer would consume. We haven't talked about the size of generator the automixer would use. Which is at least a 20kva generator (diesel) Over 2million naira. Back then you spent around 1million for the gen. In conclusion, u didn't get your business model right. And there is no business you can't manage from anywhere in the world. You coulf have.been in uk and manage that business without any qualms, If you tidied your own end properly. One of the biggest lessons I learnt from management is; YOU ONLY KNOW YOU ARE A GOOD MANAGER, WHEN YOUR BUSINESS IS BEING WELL MANAGED WITHOUT YOU BEING THERE. Have you asked yourself how dangote manages his multiple businesses, spread accross the world without his being there at the same time? There are some of these businesses he doesn't even go to for years. Madam, we have done enough for one day. Hope this helps a bit. Pardon my typos, if any. I had no time to crosscheck. Wishing you all the best. 3 Likes 1 Share |
Re: Advice needed : How do I successfully manage my bakery In Nigeria from the UK?. by id4sho(m): 12:44pm On Jan 31, 2018 |
nairamaniac:
I went through every bit of ur thread. The end made me cry and laff at the same time. So sad and funny ending at the same time.
I have a thing for businesses and its management in general.
And its like u really had/have a passion for the bakery business. Well even though its a closed chapter, u owe it to yourself to know why it failed, so such mistakes are not repeated in other aspects of your life which may transcend bakery business.
There would have been several reasons why it failed.
But let me start by saying you definitely got it wrong on expecting 40% profit from each bag(plus ingredients).
It would never have been possible even as at then. The only way you would have arrived at that projection is if you neglected a lot of expenses.
In business, there are 2 types of expenditures; A) fixed expenditure B) Recurrent expenditure
I take it that all your total cost to buy a bag and convert it to finished product is in the recurrent expenditure.
I believe you neglected some major details, especially in the actual expenditure for the conversion. That's the only way 40% would have been successful. And probably the reason you made such omitions was that you were incapable of inculcating those obmited details into one bag of bread. Either that or you went into the business with a mindet of 40% based on what you heard from people.
Now I am sure you didn't include recurrent expenditures such as; 1) Salaries/labour 2) electricity( phcn) 3) Diesel for Generator 4) Gas/ firewood / Charcoal for the Oven 5) Cost of supplies to retailers (If you supply to Them) 6) Nylon (painted nylon) 7) Servicing of equipments( those machines, mixers, Miller's and even supply vans have an average servicing cost per month)
If all the above are put put into consideration, I tell you, the most you would have made as profit even as at them is 20%.
Now taking ur figures into consideration. You were making around 1200 from a bag which cost 11,800(plus baking). It means you were making a percentage of approximately 10%.
But according to me, I say the most you could have made was 20%. 20% translates to making approximately 2,360 per bag. And that is a maximum.
Fine, 10% may have been on a low side, but. believe me 15% is more than reasonable.
At 15% you should have been making somewhere around 1,770. That is most likely what you in were making. Meaning if your sister wasn't performing or eating into your profits.
Her error at 20% profit was 2,360 - 1,200 = 1, 160
Her error at 15% profit was 1,770 - 1,200 = 570
Do your analysis properly and you would realise the 15% one was more likely than 20%.
At your expected 40% profit, it means they (your sister and co) where in accounting for; 40% of 11,800 minus 1,200 = 4,720 - 1,200 = 3, 520 HABBA!!! It never happened. I have been involved in feasibility analysis of several businesses, including bread bakery.
However there are several other factors why you may have experienced such low turnout or losses. Your ingredients were too expensive. Which made your quality too high for the price you were selling.
You didn't get your formula right. Maybe you were using eggs, milk, which were not necessary for simple bread.
Another reason would have been that your people were buying other ingredients besides flour at a higher price than what it should have been. Either they inflated those prices or they were cheated by the sellers of the materials.
If I may ask, how many bags were they selling on the average per day. Not how many they were producing.
At times, people are misled by quantity produced per day.
Let me explain; Your company may have been producing 5bags per day for 25 days in a month.
But they were selling 2bags per day for 30days. Meaning at anytime (T) their would have been excessive backlog of bread on your shelf.
Meaning your production costs was multiple times more more than your actual sales/profit.
Another problem was using heavy equipments to do small work. That is mechanical-disadvantage. You say automatic-mixing machine and bought it. Why? Those things are for people that mix like 8bags and above. Currently the big size cost around 4.5Million. But why buy that when you are not selling like 8bags a day and producing like 12bags a day.
You should have gone for the manual mixer which currently cost around half a million. Even though it would entail more labour/salary which is nothing compared to the light bill/diesel your auto mixer would consume. We haven't talked about the size of generator the automixer would use. Which is at least a 20kva generator (diesel) Over 2million naira. Back then you spent around 1million for the gen.
In conclusion, u didn't get your business model right. And there is no business you can't manage from anywhere in the world. You coulf have.been in uk and manage that business without any qualms, If you tidied your own end properly.
One of the biggest lessons I learnt from management is;
YOU ONLY KNOW YOU ARE A GOOD MANAGER, WHEN YOUR BUSINESS IS BEING WELL MANAGED WITHOUT YOU BEING THERE.
Have you asked yourself how dangote manages his multiple businesses, spread accross the world without his being there at the same time? There are some of these businesses he doesn't even go to for years.
Madam, we have done enough for one day. Hope this helps a bit.
Pardon my typos, if any. I had no time to crosscheck.
Wishing you all the best.
tiri gbosa to you sir, I read the thread all. Thanks for your depth insight. I intend starting a transport company and I would love to tap from your depth of knowledge concerning business management. thanks in anticipation 1 Like |
Re: Advice needed : How do I successfully manage my bakery In Nigeria from the UK?. by nairamaniac: 12:08pm On Feb 01, 2018 |
id4sho:
tiri gbosa to you sir, I read the thread all. Thanks for your depth insight. I intend starting a transport company and I would love to tap from your depth of knowledge concerning business management. thanks in anticipation Thank u sir, we are all to learn from ourselves. Im not an expert. Its just purely passion and doing indept feasibility analysis concerning any venture I come across or HV plans of getting involved with. Well for transport business , the major things u should put into consideration are. 1) return on investment (ROI) per vehicle. Permit me to ask you what your projected return on investment is? How long WD it take to afford buying another vehicle from set aside profits deprived from dividends of vehicle that had worked over time? That is after you deduct salary, maintainance, servicing, etc. 2) Vehicles are like equipments. Their values depreciates with time. Better put into consideration, the lifespan of each vehicle. Most vehicles, especially those put into transportation, depreciates to much below half value within a maximum of 5 years. At times less than 30% of the value. At this point, the maintainance/repairs starts to meet the gains. Try to make back the cost of vehicle within two years. So you have times two of one vehicle before that one packs up. An ROI of 80% per annum is not bad at all for transport business. 2 Likes |
Re: Advice needed : How do I successfully manage my bakery In Nigeria from the UK?. by bebe2(f): 12:47am On Feb 02, 2018 |
nairamaniac:
I went through every bit of ur thread. The end made me cry and laff at the same time. So sad and funny ending at the same time.
I have a thing for businesses and its management in general.
And its like u really had/have a passion for the bakery business. Well even though its a closed chapter, u owe it to yourself to know why it failed, so such mistakes are not repeated in other aspects of your life which may transcend bakery business.
There would have been several reasons why it failed.
But let me start by saying you definitely got it wrong on expecting 40% profit from each bag(plus ingredients).
It would never have been possible even as at then. The only way you would have arrived at that projection is if you neglected a lot of expenses.
In business, there are 2 types of expenditures; A) fixed expenditure B) Recurrent expenditure
I take it that all your total cost to buy a bag and convert it to finished product is in the recurrent expenditure.
I believe you neglected some major details, especially in the actual expenditure for the conversion. That's the only way 40% would have been successful. And probably the reason you made such omitions was that you were incapable of inculcating those obmited details into one bag of bread. Either that or you went into the business with a mindet of 40% based on what you heard from people.
Now I am sure you didn't include recurrent expenditures such as; 1) Salaries/labour 2) electricity( phcn) 3) Diesel for Generator 4) Gas/ firewood / Charcoal for the Oven 5) Cost of supplies to retailers (If you supply to Them) 6) Nylon (painted nylon) 7) Servicing of equipments( those machines, mixers, Miller's and even supply vans have an average servicing cost per month)
If all the above are put put into consideration, I tell you, the most you would have made as profit even as at them is 20%.
Now taking ur figures into consideration. You were making around 1200 from a bag which cost 11,800(plus baking). It means you were making a percentage of approximately 10%.
But according to me, I say the most you could have made was 20%. 20% translates to making approximately 2,360 per bag. And that is a maximum.
Fine, 10% may have been on a low side, but. believe me 15% is more than reasonable.
At 15% you should have been making somewhere around 1,770. That is most likely what you in were making. Meaning if your sister wasn't performing or eating into your profits.
Her error at 20% profit was 2,360 - 1,200 = 1, 160
Her error at 15% profit was 1,770 - 1,200 = 570
Do your analysis properly and you would realise the 15% one was more likely than 20%.
At your expected 40% profit, it means they (your sister and co) where in accounting for; 40% of 11,800 minus 1,200 = 4,720 - 1,200 = 3, 520 HABBA!!! It never happened. I have been involved in feasibility analysis of several businesses, including bread bakery.
However there are several other factors why you may have experienced such low turnout or losses. Your ingredients were too expensive. Which made your quality too high for the price you were selling.
You didn't get your formula right. Maybe you were using eggs, milk, which were not necessary for simple bread.
Another reason would have been that your people were buying other ingredients besides flour at a higher price than what it should have been. Either they inflated those prices or they were cheated by the sellers of the materials.
If I may ask, how many bags were they selling on the average per day. Not how many they were producing.
At times, people are misled by quantity produced per day.
Let me explain; Your company may have been producing 5bags per day for 25 days in a month.
But they were selling 2bags per day for 30days. Meaning at anytime (T) their would have been excessive backlog of bread on your shelf.
Meaning your production costs was multiple times more more than your actual sales/profit.
Another problem was using heavy equipments to do small work. That is mechanical-disadvantage. You say automatic-mixing machine and bought it. Why? Those things are for people that mix like 8bags and above. Currently the big size cost around 4.5Million. But why buy that when you are not selling like 8bags a day and producing like 12bags a day.
You should have gone for the manual mixer which currently cost around half a million. Even though it would entail more labour/salary which is nothing compared to the light bill/diesel your auto mixer would consume. We haven't talked about the size of generator the automixer would use. Which is at least a 20kva generator (diesel) Over 2million naira. Back then you spent around 1million for the gen.
In conclusion, u didn't get your business model right. And there is no business you can't manage from anywhere in the world. You coulf have.been in uk and manage that business without any qualms, If you tidied your own end properly.
One of the biggest lessons I learnt from management is;
YOU ONLY KNOW YOU ARE A GOOD MANAGER, WHEN YOUR BUSINESS IS BEING WELL MANAGED WITHOUT YOU BEING THERE.
Have you asked yourself how dangote manages his multiple businesses, spread accross the world without his being there at the same time? There are some of these businesses he doesn't even go to for years.
Madam, we have done enough for one day. Hope this helps a bit.
Pardon my typos, if any. I had no time to crosscheck.
Wishing you all the best.
All this for me? Tnk u so much . Lesson learnt ![kiss](https://www.nairaland.com/faces/kiss.gif) 1 Like |
Re: Advice needed : How do I successfully manage my bakery In Nigeria from the UK?. by 1stNumeroUno: 10:22am On Aug 16, 2018 |
nairamaniac:
I went through every bit of ur thread. The end made me cry and laff at the same time. So sad and funny ending at the same time.
I have a thing for businesses and its management in general.
And its like u really had/have a passion for the bakery business. Well even though its a closed chapter, u owe it to yourself to know why it failed, so such mistakes are not repeated in other aspects of your life which may transcend bakery business.
There would have been several reasons why it failed.
But let me start by saying you definitely got it wrong on expecting 40% profit from each bag(plus ingredients).
It would never have been possible even as at then. The only way you would have arrived at that projection is if you neglected a lot of expenses.
In business, there are 2 types of expenditures; A) fixed expenditure B) Recurrent expenditure
I take it that all your total cost to buy a bag and convert it to finished product is in the recurrent expenditure.
I believe you neglected some major details, especially in the actual expenditure for the conversion. That's the only way 40% would have been successful. And probably the reason you made such omitions was that you were incapable of inculcating those obmited details into one bag of bread. Either that or you went into the business with a mindet of 40% based on what you heard from people.
Now I am sure you didn't include recurrent expenditures such as; 1) Salaries/labour 2) electricity( phcn) 3) Diesel for Generator 4) Gas/ firewood / Charcoal for the Oven 5) Cost of supplies to retailers (If you supply to Them) 6) Nylon (painted nylon) 7) Servicing of equipments( those machines, mixers, Miller's and even supply vans have an average servicing cost per month)
If all the above are put put into consideration, I tell you, the most you would have made as profit even as at them is 20%.
Now taking ur figures into consideration. You were making around 1200 from a bag which cost 11,800(plus baking). It means you were making a percentage of approximately 10%.
But according to me, I say the most you could have made was 20%. 20% translates to making approximately 2,360 per bag. And that is a maximum.
Fine, 10% may have been on a low side, but. believe me 15% is more than reasonable.
At 15% you should have been making somewhere around 1,770. That is most likely what you in were making. Meaning if your sister wasn't performing or eating into your profits.
Her error at 20% profit was 2,360 - 1,200 = 1, 160
Her error at 15% profit was 1,770 - 1,200 = 570
Do your analysis properly and you would realise the 15% one was more likely than 20%.
At your expected 40% profit, it means they (your sister and co) where in accounting for; 40% of 11,800 minus 1,200 = 4,720 - 1,200 = 3, 520 HABBA!!! It never happened. I have been involved in feasibility analysis of several businesses, including bread bakery.
However there are several other factors why you may have experienced such low turnout or losses. Your ingredients were too expensive. Which made your quality too high for the price you were selling.
You didn't get your formula right. Maybe you were using eggs, milk, which were not necessary for simple bread.
Another reason would have been that your people were buying other ingredients besides flour at a higher price than what it should have been. Either they inflated those prices or they were cheated by the sellers of the materials.
If I may ask, how many bags were they selling on the average per day. Not how many they were producing.
At times, people are misled by quantity produced per day.
Let me explain; Your company may have been producing 5bags per day for 25 days in a month.
But they were selling 2bags per day for 30days. Meaning at anytime (T) their would have been excessive backlog of bread on your shelf.
Meaning your production costs was multiple times more more than your actual sales/profit.
Another problem was using heavy equipments to do small work. That is mechanical-disadvantage. You say automatic-mixing machine and bought it. Why? Those things are for people that mix like 8bags and above. Currently the big size cost around 4.5Million. But why buy that when you are not selling like 8bags a day and producing like 12bags a day.
You should have gone for the manual mixer which currently cost around half a million. Even though it would entail more labour/salary which is nothing compared to the light bill/diesel your auto mixer would consume. We haven't talked about the size of generator the automixer would use. Which is at least a 20kva generator (diesel) Over 2million naira. Back then you spent around 1million for the gen.
In conclusion, u didn't get your business model right. And there is no business you can't manage from anywhere in the world. You coulf have.been in uk and manage that business without any qualms, If you tidied your own end properly.
One of the biggest lessons I learnt from management is;
YOU ONLY KNOW YOU ARE A GOOD MANAGER, WHEN YOUR BUSINESS IS BEING WELL MANAGED WITHOUT YOU BEING THERE.
Have you asked yourself how dangote manages his multiple businesses, spread accross the world without his being there at the same time? There are some of these businesses he doesn't even go to for years.
Madam, we have done enough for one day. Hope this helps a bit.
Pardon my typos, if any. I had no time to crosscheck.
Wishing you all the best.
Sir, your analysis above is awesome. Weldon boss. 1 Like |
Re: Advice needed : How do I successfully manage my bakery In Nigeria from the UK?. by nairamaniac: 7:58pm On Aug 17, 2018 |
1stNumeroUno:
Sir, your analysis above is awesome.
Weldon boss. Thanx boss. I appreciate. |
Re: Advice needed : How do I successfully manage my bakery In Nigeria from the UK?. by rinzaugustine: 10:25pm On Mar 17, 2019 |
DaddyGngeess: I have d same experience once b4, if u want I can help u by sending somebody to asist and show them how to make real money from bakary business. g.geess@yahoo.com. Contact me if u care |
Re: Advice needed : How do I successfully manage my bakery In Nigeria from the UK?. by iykmon: 5:56am On Apr 04, 2019 |
Doing business in nigeria is really not easy. One should have where to get business models for setting up a bakary. Real estate business is good but it requires a very large capital to set up. It is has a long term recovery process, until a diamond is found in the house that can shorten it , its recovery is long. 1 Like |
|
Re: Advice needed : How do I successfully manage my bakery In Nigeria from the UK?. by PerfectMatchNG: 12:11pm On Feb 11, 2020 |
![wink](https://www.nairaland.com/faces/wink.png) djsmoothy:
This is the best answer ever wow thanks for showing me the light God bless |
Re: Advice needed : How do I successfully manage my bakery In Nigeria from the UK?. by hajidel: 4:02pm On May 27, 2020 |
nairamaniac:
I went through every bit of ur thread. The end made me cry and laff at the same time. So sad and funny ending at the same time.
I have a thing for businesses and its management in general.
And its like u really had/have a passion for the bakery business. Well even though its a closed chapter, u owe it to yourself to know why it failed, so such mistakes are not repeated in other aspects of your life which may transcend bakery business.
There would have been several reasons why it failed.
But let me start by saying you definitely got it wrong on expecting 40% profit from each bag(plus ingredients).
It would never have been possible even as at then. The only way you would have arrived at that projection is if you neglected a lot of expenses.
In business, there are 2 types of expenditures; A) fixed expenditure B) Recurrent expenditure
I take it that all your total cost to buy a bag and convert it to finished product is in the recurrent expenditure.
I believe you neglected some major details, especially in the actual expenditure for the conversion. That's the only way 40% would have been successful. And probably the reason you made such omitions was that you were incapable of inculcating those obmited details into one bag of bread. Either that or you went into the business with a mindet of 40% based on what you heard from people.
Now I am sure you didn't include recurrent expenditures such as; 1) Salaries/labour 2) electricity( phcn) 3) Diesel for Generator 4) Gas/ firewood / Charcoal for the Oven 5) Cost of supplies to retailers (If you supply to Them) 6) Nylon (painted nylon) 7) Servicing of equipments( those machines, mixers, Miller's and even supply vans have an average servicing cost per month)
If all the above are put put into consideration, I tell you, the most you would have made as profit even as at them is 20%.
Now taking ur figures into consideration. You were making around 1200 from a bag which cost 11,800(plus baking). It means you were making a percentage of approximately 10%.
But according to me, I say the most you could have made was 20%. 20% translates to making approximately 2,360 per bag. And that is a maximum.
Fine, 10% may have been on a low side, but. believe me 15% is more than reasonable.
At 15% you should have been making somewhere around 1,770. That is most likely what you in were making. Meaning if your sister wasn't performing or eating into your profits.
Her error at 20% profit was 2,360 - 1,200 = 1, 160
Her error at 15% profit was 1,770 - 1,200 = 570
Do your analysis properly and you would realise the 15% one was more likely than 20%.
At your expected 40% profit, it means they (your sister and co) where in accounting for; 40% of 11,800 minus 1,200 = 4,720 - 1,200 = 3, 520 HABBA!!! It never happened. I have been involved in feasibility analysis of several businesses, including bread bakery.
However there are several other factors why you may have experienced such low turnout or losses. Your ingredients were too expensive. Which made your quality too high for the price you were selling.
You didn't get your formula right. Maybe you were using eggs, milk, which were not necessary for simple bread.
Another reason would have been that your people were buying other ingredients besides flour at a higher price than what it should have been. Either they inflated those prices or they were cheated by the sellers of the materials.
If I may ask, how many bags were they selling on the average per day. Not how many they were producing.
At times, people are misled by quantity produced per day.
Let me explain; Your company may have been producing 5bags per day for 25 days in a month.
But they were selling 2bags per day for 30days. Meaning at anytime (T) their would have been excessive backlog of bread on your shelf.
Meaning your production costs was multiple times more more than your actual sales/profit.
Another problem was using heavy equipments to do small work. That is mechanical-disadvantage. You say automatic-mixing machine and bought it. Why? Those things are for people that mix like 8bags and above. Currently the big size cost around 4.5Million. But why buy that when you are not selling like 8bags a day and producing like 12bags a day.
You should have gone for the manual mixer which currently cost around half a million. Even though it would entail more labour/salary which is nothing compared to the light bill/diesel your auto mixer would consume. We haven't talked about the size of generator the automixer would use. Which is at least a 20kva generator (diesel) Over 2million naira. Back then you spent around 1million for the gen.
In conclusion, u didn't get your business model right. And there is no business you can't manage from anywhere in the world. You coulf have.been in uk and manage that business without any qualms, If you tidied your own end properly.
One of the biggest lessons I learnt from management is;
YOU ONLY KNOW YOU ARE A GOOD MANAGER, WHEN YOUR BUSINESS IS BEING WELL MANAGED WITHOUT YOU BEING THERE.
Have you asked yourself how dangote manages his multiple businesses, spread accross the world without his being there at the same time? There are some of these businesses he doesn't even go to for years.
Madam, we have done enough for one day. Hope this helps a bit.
Pardon my typos, if any. I had no time to crosscheck.
Wishing you all the best.
Great analysis dear. Especially with the part of mechanical disadvantage. Most people going into business fall in this trap especially bakery business. This business is marginal and every little marginal advantage you can get is profits in your pocket. You should try to save at any given opportunity in order to maximise your profits. This being a lot of us go into business because it’s worked for others and they are Ami g money out of it. We should start small with less expenses and grow from there, this is tough to do trust me and it takes time and double efforts to make it out. Hence 4 in every 5 new businesses go bust within the first year. Another problem is the market saturation. No matter how much bread we consume if we have more producers than daily consumption the margin for profit is minuscule and the margin for failure is even greater. So find a town with a decent population and operate within that town and believe me if you can minimise expenses you can easily make 25-30% return. How I come to this is from experience and by operating in a niche market. To capitalise, make good quality products, be vigilant with your workers (they will cut corners and steal at every given opportunity) to you detriment, respect an listen to customers especially those buying wholesale (they are your partners but they have nothing to lose basically because they can collect from another bakery). Get a van and design the cargo to load bread that will not squash and be neat and presentable all the way to your customers. If you will not buy it then you shouldn’t sell it. Present your product well. GET IN THE VAN YOURSELF A FEW TIMES SO YOU LEARN THEIR ROUTES, THEIR INTERACTION WITH CUSTOMERS ETC. It will go a long way iykmon: Doing business in nigeria is really not easy. One should have where to get business models for setting up a bakary. Real estate business is good but it requires a very large capital to set up. It is has a long term recovery process, until a diamond is found in the house that can shorten it , its recovery is long. Doing business anywhere is tough. It looks and sounds easy on the eye but until you put you money where you mouth is then you know for real. Especially here where poverty is strife and the disparity is unbelievable. But if there is any business that you wouldn’t care about the disparity in income and still come out alive is in the bakery business. Low purchasing price but with the right team and plan you could yield a massive return. Talk about $3-5k monthly. And earning is exponential. 1 Like |
Re: Advice needed : How do I successfully manage my bakery In Nigeria from the UK?. by nairamaniac: 3:39pm On Jun 01, 2020 |
hajidel:
Great analysis dear. Especially with the part of mechanical disadvantage. Most people going into business fall in this trap especially bakery business. This business is marginal and every little marginal advantage you can get is profits in your pocket. You should try to save at any given opportunity in order to maximise your profits. This being a lot of us go into business because it’s worked for others and they are Ami g money out of it. We should start small with less expenses and grow from there, this is tough to do trust me and it takes time and double efforts to make it out. Hence 4 in every 5 new businesses go bust within the first year.
Another problem is the market saturation. No matter how much bread we consume if we have more producers than daily consumption the margin for profit is minuscule and the margin for failure is even greater. So find a town with a decent population and operate within that town and believe me if you can minimise expenses you can easily make 25-30% return. How I come to this is from experience and by operating in a niche market.
To capitalise, make good quality products, be vigilant with your workers (they will cut corners and steal at every given opportunity) to you detriment, respect an listen to customers especially those buying wholesale (they are your partners but they have nothing to lose basically because they can collect from another bakery).
Get a van and design the cargo to load bread that will not squash and be neat and presentable all the way to your customers. If you will not buy it then you shouldn’t sell it. Present your product well. GET IN THE VAN YOURSELF A FEW TIMES SO YOU LEARN THEIR ROUTES, THEIR INTERACTION WITH CUSTOMERS ETC. It will go a long way
Doing business anywhere is tough. It looks and sounds easy on the eye but until you put you money where you mouth is then you know for real. Especially here where poverty is strife and the disparity is unbelievable. But if there is any business that you wouldn’t care about the disparity in income and still come out alive is in the bakery business. Low purchasing price but with the right team and plan you could yield a massive return. Talk about $3-5k monthly. And earning is exponential. Numerous thanx for the compliment. I learnt more from your response. Especially with the need to explore virgin market environments, even if its under developed. Also with you seeing your wholesale buyers as a partner. Top it all is you as the MD or CEO getting involved with road sales/supplies. That would get u familiar with the routes which your product pass thru and its final sales-points. Would also give you an opportunity to meet cross paths with your end sellers/customers. Doing business anywhere in the world indeed has its own perculiar challenge. 1 Like |
Re: Advice needed : How do I successfully manage my bakery In Nigeria from the UK?. by SavageResponse(m): 4:17pm On Jun 01, 2020 |
nairamaniac:
Numerous thanx for the compliment.
I learnt more from your response.
Especially with the need to explore virgin market environments, even if its under developed.
Also with you seeing your wholesale buyers as a partner.
Top it all is you as the MD or CEO getting involved with road sales/supplies.
That would get u familiar with the routes which your product pass thru and its final sales-points.
Would also give you an opportunity to meet cross paths with your end sellers/customers.
Doing business anywhere in the world indeed has its own perculiar challenge. Running a business in Nigeria is twice as hard as in other places...apart from having to contend with the fact that there is inadequate infrastructure every damn employee is busy trying to steal from you! 2 Likes |
Re: Advice needed : How do I successfully manage my bakery In Nigeria from the UK?. by nairamaniac: 6:07pm On Jun 01, 2020 |
SavageResponse:
Running a business in Nigeria is twice as hard as in other places...apart from having to contend with the fact that there is inadequate infrastructure every damn employee is busy trying to steal from you! U are damn right. No where is easy. But Nigeria is at best twice as difficult |
Re: Advice needed : How do I successfully manage my bakery In Nigeria from the UK?. by amerengues(m): 7:28am On Jun 03, 2020 |
nairamaniac:
U are damn right. No where is easy. But Nigeria is at best twice as difficult Your quote up there was quite insightful! What’s your opinion on setting up a bakery now? The intent is to get a 3 layer 6 tray oven (electric), 25kg dough mixer, and a 31 piece bread slicer. Want o go into slice bread though with a deeper intent to get involved in other pastries. I need your priceless input. |
Re: Advice needed : How do I successfully manage my bakery In Nigeria from the UK?. by nairamaniac: 8:25am On Jun 03, 2020 |
amerengues:
Your quote up there was quite insightful!
What’s your opinion on setting up a bakery now? The intent is to get a 3 layer 6 tray oven (electric), 25kg dough mixer, and a 31 piece bread slicer. Want o go into slice bread though with a deeper intent to get involved in other pastries.
I need your priceless input. Thanx. But I really do not know the indept feasibility analysis of bakery setups. My analysis I stated there were based on some experiences I had managing a bakery for a brief stinct and also having an intent of opening one at some point. But from little I can say is that you are in order to go for a 25kg mixer. Its just perfect for affordable power generators. Better to start small and grow big. U can navigate the internet for more indept analysis/knowledge. All the best! |
Re: Advice needed : How do I successfully manage my bakery In Nigeria from the UK?. by codedlee(m): 10:10am On Jun 03, 2020 |
what most people fail to realise in bakery business is that the management part is so very much important- running a bakery without good management won't work- everybody minus the owner will kill the business except you run the business on targets!!! what most people who try to tap from experience from bakery owners/consultant don't realise is that if you are not strict,pls don't come near this business!!! saying u make 1200naira per bag as at that year is a lie- your post should be brought down- Blame yourself for not sourcing for Infos. Because your sister is the one running it made you believe anything she says,but if it was someone else that was managing it,I know u would have probably arrested the person,forcefully asking for accounts of every ingredients and kobo- I have seen a lot of bakery fall and a lot of bakery rise ,all cuz of management- that's why when I get contacted from nairaland here about anyone trying to set up a bakery I always ask if the person is truly ready to do what it takes which is having time for the business- as a bakery owner and consultant- I always advice clients who ain't physically present to give anyone that wants to manage the business a targeted amount to pay monthly and still get every Infos. They can start producing 5bags daily and your target is 150k after all expenses and salaries or 200k depends - Then when you see 5bags is working and the target is been reached you increase it- most bakery fall also cux of the selfishness of the owner. Nigerians are greedy and selfish(no vex na my mind I just tell u)- its all good sha.
God bless our ovens to be always hot!!! |
Re: Advice needed : How do I successfully manage my bakery In Nigeria from the UK?. by bebe2(f): 7:29pm On Jun 06, 2020 |
codedlee: what most people fail to realise in bakery business is that the management part is so very much important- running a bakery without good management won't work- everybody minus the owner will kill the business except you run the business on targets!!! what most people who try to tap from experience from bakery owners/consultant don't realise is that if you are not strict,pls don't come near this business!!! saying u make 1200naira per bag as at that year is a lie- your post should be brought down- Blame yourself for not sourcing for Infos. Because your sister is the one running it made you believe anything she says,but if it was someone else that was managing it,I know u would have probably arrested the person,forcefully asking for accounts of every ingredients and kobo- I have seen a lot of bakery fall and a lot of bakery rise ,all cuz of management- that's why when I get contacted from nairaland here about anyone trying to set up a bakery I always ask if the person is truly ready to do what it takes which is having time for the business- as a bakery owner and consultant- I always advice clients who ain't physically present to give anyone that wants to manage the business a targeted amount to pay monthly and still get every Infos. They can start producing 5bags daily and your target is 150k after all expenses and salaries or 200k depends - Then when you see 5bags is working and the target is been reached you increase it- most bakery fall also cux of the selfishness of the owner. Nigerians are greedy and selfish(no vex na my mind I just tell u)- its all good sha.
God bless our ovens to be always hot!!! haba uncle u wan beat me?? ![cheesy](https://www.nairaland.com/faces/cheesy.png) anyways i get what u mean I presume u still in the bakery business, how much do u make per bag on average? I still haven't given up tho,I love baked goods, the target was to later go into cinnamon buns, croissants and pain au chocolat. . so, how much is the average one can get a month as rental from a standard bakery in a good location? 1 Like |
Re: Advice needed : How do I successfully manage my bakery In Nigeria from the UK?. by bebe2(f): 7:34pm On Jun 06, 2020 |
nairamaniac:
I went through every bit of ur thread. The end made me cry and laff at the same time. So sad and funny ending at the same time.
I have a thing for businesses and its management in general.
And its like u really had/have a passion for the bakery business. Well even though its a closed chapter, u owe it to yourself to know why it failed, so such mistakes are not repeated in other aspects of your life which may transcend bakery business.
There would have been several reasons why it failed.
But let me start by saying you definitely got it wrong on expecting 40% profit from each bag(plus ingredients).
It would never have been possible even as at then. The only way you would have arrived at that projection is if you neglected a lot of expenses.
In business, there are 2 types of expenditures; A) fixed expenditure B) Recurrent expenditure
I take it that all your total cost to buy a bag and convert it to finished product is in the recurrent expenditure.
I believe you neglected some major details, especially in the actual expenditure for the conversion. That's the only way 40% would have been successful. And probably the reason you made such omitions was that you were incapable of inculcating those obmited details into one bag of bread. Either that or you went into the business with a mindet of 40% based on what you heard from people.
Now I am sure you didn't include recurrent expenditures such as; 1) Salaries/labour 2) electricity( phcn) 3) Diesel for Generator 4) Gas/ firewood / Charcoal for the Oven 5) Cost of supplies to retailers (If you supply to Them) 6) Nylon (painted nylon) 7) Servicing of equipments( those machines, mixers, Miller's and even supply vans have an average servicing cost per month)
If all the above are put put into consideration, I tell you, the most you would have made as profit even as at them is 20%.
Now taking ur figures into consideration. You were making around 1200 from a bag which cost 11,800(plus baking). It means you were making a percentage of approximately 10%.
But according to me, I say the most you could have made was 20%. 20% translates to making approximately 2,360 per bag. And that is a maximum.
Fine, 10% may have been on a low side, but. believe me 15% is more than reasonable.
At 15% you should have been making somewhere around 1,770. That is most likely what you in were making. Meaning if your sister wasn't performing or eating into your profits.
Her error at 20% profit was 2,360 - 1,200 = 1, 160
Her error at 15% profit was 1,770 - 1,200 = 570
Do your analysis properly and you would realise the 15% one was more likely than 20%.
At your expected 40% profit, it means they (your sister and co) where in accounting for; 40% of 11,800 minus 1,200 = 4,720 - 1,200 = 3, 520 HABBA!!! It never happened. I have been involved in feasibility analysis of several businesses, including bread bakery.
However there are several other factors why you may have experienced such low turnout or losses. Your ingredients were too expensive. Which made your quality too high for the price you were selling.
You didn't get your formula right. Maybe you were using eggs, milk, which were not necessary for simple bread.
Another reason would have been that your people were buying other ingredients besides flour at a higher price than what it should have been. Either they inflated those prices or they were cheated by the sellers of the materials.
If I may ask, how many bags were they selling on the average per day. Not how many they were producing.
At times, people are misled by quantity produced per day.
Let me explain; Your company may have been producing 5bags per day for 25 days in a month.
But they were selling 2bags per day for 30days. Meaning at anytime (T) their would have been excessive backlog of bread on your shelf.
Meaning your production costs was multiple times more more than your actual sales/profit.
Another problem was using heavy equipments to do small work. That is mechanical-disadvantage. You say automatic-mixing machine and bought it. Why? Those things are for people that mix like 8bags and above. Currently the big size cost around 4.5Million. But why buy that when you are not selling like 8bags a day and producing like 12bags a day.
You should have gone for the manual mixer which currently cost around half a million. Even though it would entail more labour/salary which is nothing compared to the light bill/diesel your auto mixer would consume. We haven't talked about the size of generator the automixer would use. Which is at least a 20kva generator (diesel) Over 2million naira. Back then you spent around 1million for the gen.
In conclusion, u didn't get your business model right. And there is no business you can't manage from anywhere in the world. You coulf have.been in uk and manage that business without any qualms, If you tidied your own end properly.
One of the biggest lessons I learnt from management is;
YOU ONLY KNOW YOU ARE A GOOD MANAGER, WHEN YOUR BUSINESS IS BEING WELL MANAGED WITHOUT YOU BEING THERE.
Have you asked yourself how dangote manages his multiple businesses, spread accross the world without his being there at the same time? There are some of these businesses he doesn't even go to for years.
Madam, we have done enough for one day. Hope this helps a bit.
Pardon my typos, if any. I had no time to crosscheck.
Wishing you all the best.
cant believe am just seeing this thank u so much for taking the time to put this together. I learnt a lot of lessons from that bakery. best of all it did not bring a fight between my sister and I. the building is still there and she can continue if she wishes. 1 Like |
Re: Advice needed : How do I successfully manage my bakery In Nigeria from the UK?. by Palantir: 9:34pm On Jun 06, 2020 |
bebe2:
cant believe am just seeing this
thank u so much for taking the time to put this together. I learnt a lot of lessons from that bakery. best of all it did not bring a fight between my sister and I. the building is still there and she can continue if she wishes.
Does this mean you gave up on the bakery? |
Re: Advice needed : How do I successfully manage my bakery In Nigeria from the UK?. by bebe2(f): 10:37pm On Jun 06, 2020 |
Palantir:
Does this mean you gave up on the bakery? yes I pulled out of it, I was losing my sanity ![cheesy](https://www.nairaland.com/faces/cheesy.png) |
Re: Advice needed : How do I successfully manage my bakery In Nigeria from the UK?. by nairamaniac: 4:09pm On Jun 07, 2020 |
bebe2:
cant believe am just seeing this
thank u so much for taking the time to put this together. I learnt a lot of lessons from that bakery. best of all it did not bring a fight between my sister and I. the building is still there and she can continue if she wishes.
U are welcome. Thought you had seen it and replied some time back, 2years ago. No knowledge is lost or ever too late. 1 Like |
Re: Advice needed : How do I successfully manage my bakery In Nigeria from the UK?. by Palantir: 12:57pm On Jun 08, 2020 |
bebe2:
yes I pulled out of it,
I was losing my sanity ![cheesy](https://www.nairaland.com/faces/cheesy.png) That's sad. But like I always say, an entrepreneur is a failure who learns to succeed. So what are you doing now? Still operating a business in Nigeria from whereever it is you are? |
Re: Advice needed : How do I successfully manage my bakery In Nigeria from the UK?. by cnanu(m): 2:20pm On Jun 08, 2020 |
Two ways to do it are
1. Rent the bakery 2. Build and sell bakeries as a business.
Businesses fail every where even with your presence or not. Because you may have not been into the business. If you don't know how to mix bread, why will you start a bakery and believe a mixer, baker the sellers. You must know about the intricate aspects of the business. Again you may not know how to manage people who work at bread industries. If you don't know how to manage those workers, why will you open a bread industries to operate it with out your presence. Don't blame your sister, blame yourself.
You may as well dash the bakery to your sister and leave stories. No be today we don dey hear stories of bad or ill informed Investment. Sell equipments, do landed businesses, leave bread for local people joor. Have bliss |
Re: Advice needed : How do I successfully manage my bakery In Nigeria from the UK?. by bebe2(f): 6:18pm On Jun 08, 2020 |
Palantir:
That's sad. But like I always say, an entrepreneur is a failure who learns to succeed.
So what are you doing now? Still operating a business in Nigeria from whereever it is you are? well now that I have recovered from that, am preparing to go into transport, hire purchase or balance as carry as they call it. the plan is get a couple of buses and give it to drivers to balance it with a year and half. |
Re: Advice needed : How do I successfully manage my bakery In Nigeria from the UK?. by Kendumazy(m): 6:05pm On Jun 09, 2020 |
bebe2:
well now that I have recovered from that, am preparing to go into transport, hire purchase or balance as carry as they call it.
the plan is get a couple of buses and give it to drivers to balance it with a year and half. Very risky. You can talk to this moniker '' Enyinne'' to share her experience with you so as to avoid making any costly mistake. Wish you all the very best. 1 Like |