Are you thinking of starting a cupcake business here in Nigeria but you don’t know how to go about it?
Here’s a complete article on how you can start the business in Nigeria and make profit.
Cupcake business has been in existence for quite some time now in Nigeria but the question on many youth minds is how profitable is it?
How can you turn it into a multi-million naira business?
Cupcake is a snack business in Nigeria but in terms of sales but the way you make profit from it has a slightly different approach has every other type of snacks business in Nigeria.
If you don’t know this you might give up on the business right from its inception.
Another factor we also need to consider here is that in as much as cupcake business is part of the pastry business in Nigeria, in few instances it has to go into competition with other cakes such as birthday cakes, anniversary cakes and so on.
So how do we deal with this competition? Well, it first starts with developing a thick skin – you practicing the never give up attitude and then staying true to it till the baking business becomes a multi-million naira business in Nigeria.
This is what cake makers (brands) in Nigeria like Diva Cakes, Cakes and Cream and the likes did till their business now worth millions of naira.
How to Start Cupcake Business in Nigeria
1. Know Your Marketing Edge
The first step to starting a cupcake business in Nigeria is to know your marketing edge or what some Nigerians call selling point. This is very important whether the business is highly competitive or not.
If the market you are trying to get into is very competitive knowing your marketing edge helps you to know how you can stand out from the rest of the crowd – other businesses like yours.
And if the business you’re trying to get into is not competitive, it helps you know you know how you can attract buyers without doing too much.
When a business is not competitive (monopoly), it is always safe to assume that the competitors of the business are your buyers.
You have to know what marketing strategy you can use to attract these buyers to buy and continue to buy from you.
As regards cupcake business in Nigeria, it is less competitive because there are few Nigerians that are into this business. In fact, it is hard to mention a brand well-known although Nigeria.
So it is safe to say your real competitors in the business are buyers – the average Nigerian.
How do you sell cupcakes to them?
How can you make your cupcake be on their minds day and night?
How can you increase sales despite the fact that Nigerians don’t eat many cakes?
These are questions you need to answer if you want to get that marketing edge boosting profits shortly after starting our cupcake business.
Is Cupcake Business Profitable in Nigeria?
Yes, cupcake business is profitable in Nigeria if one major thing you are doing is to not only come into the market as a retailer but as a wholesaler. It is also profitable because Nigerians love snacks.
Nigerians use snacks not only as a form of celebration but also to hold their stomachs when they are hungry. Nigerians may not indulge in eating many cupcakes at a go but they can surely eat cupcakes as much as 3 – 5 times a week.
Also, with the large population in Nigeria and being the fact that cupcake business is almost a monopoly business, you will sell in tons and make huge profit if of cause your business is positioned at the right location and you can do deliveries.
Another reason why cupcake business is a highly lucrative business in Nigeria is that you will be buying your ingredients or recipes in bulk and selling in finished product – a cupcake.
2. Learn The Skill
Learning how to make cupcakes as a hobby is totally different from learning how to make cupcakes for commercial purposes (for sale).
So also the equipment and ingredients (recipe) for making Nigerian cupcakes for home consumption only is totally different from the ones for commercial.
You must be able to distinguish this 2 from the start of your business so that you can learn everything you need to know as regards baking cupcakes for sale.
You also need to learn how to add preservatives to your cupcakes. Unlike cupcakes made in homes for immediate consumption, commercial cupcakes need preservatives to stay longer on the shelves – duration of 2 – 4 weeks or more.
This is why the person you learn this skill from is very important.
Anybody you’re choosing to teach you on how to make cupcakes for commercial purposes must not only have a good reputation but must be good at making them and must be willing to expose this process to you from beginning to end.
As for the time needed on learning how to make commercial cupcakes, it should take you a duration of 3 – 6 months and then you are done ready to start your own cupcake business.
3. Buy Baking Equipment and Ingredients
After you’re done learning how to make cupcakes, the next step for you is to buy all the equipment you be needing to bake cupcakes.
You have 2 options as regards this; you can either buy expensive equipment that will last you for a long period of time or buy cheap equipment that will last you for a short while.
All these depend on your pocket – how much you can afford for the baking equipment.
Baking Equipment for Cupcake Business
1. Oven (gas-powered)
2. Non-stick cupcake trays
3. Digital scales
4. Cooling racks
5. Measuring spoons
6. Mixing bowls
7. Wooden spoons
8. Cupcake cakes
9. Rubber spatula
10. And more.
Those are 9 major equipment you will be needing to start your cupcake business in Nigeria. However, you can buy more that you feel you need but are not on this list.
After buying your cupcake equipment, the next step for you here is to proceed to popular markets in your area to buy the ingredients for you cupcake business, because you need to buy almost all your baking ingredients in bulk, you need to buy your ingredients from wholesalers so as to reduce your cost of buying ingredients.
Baking Ingredients for Cupcake Business
6. Powdered sugar
7. Baking powder
8. Cocoa solids
9. Vanilla extract
10. And so on
For a start, you can buy one bag of flour, 6 crates of eggs, a small quantity of vanilla, a small quantity of butter, a small bag of sugar and so on.
Do not buy too much of these baking ingredients as long preservation can make them get spoil. Only buy ingredients that will last you for a maximum of 1 month.
4. Rent a Shop
It is not a must to rent a shop when starting this business. You can start at home if you cannot afford a shop all you just need is to build a customer base first.
And if you can afford a shop the location of your shop is very important after considering location the next thing you should consider is the cost of renting a shop in that location.
You don’t want a shop in a location that pulls crowd yet too expensive.
You want a shop that can strike a balance between the 2 – a location where thousands of people pass through daily and have reasonable rent. Such locations are hard to find but if you take your time you will surely see one.
And how much you rent this shop in this location depends on how much you can afford for a shop.
When you are able to get this good shop, pay the rent as soon as possible and start furnishing the shop.
Asides from all the equipment I have mentioned so far, you will need to install some electronics and furniture in the shop.
Electronics like a bulb, fans, air conditioner (if you can afford one) and furniture like show glass, shelves, chairs, and a table. All this will make your shop complete if they are arranged in an organized manner.
You will also need a display outside your shop informing passers-by the name of your business and what you’re into. A short name followed by what you do is perfect in this case. An example of this is Funmi’s Cupcakes.
Names like this also help with the branding of your business.
The major benefit of renting a shop is to put you out there what I call free advertisement. So it is very important to choose a location where thousands of Nigerians pass daily.
5. Start Baking and Selling
Before you start baking and selling at the shop (your first opening day of business) inform your family, friends and church members about your new business.
And invite them to your shop to come to celebrate with you. You can choose a Saturday for this so that many of them will be able to create time and be able to come.
When they come, bake some cupcakes for them and give them drinks for free. Doing this will make them help you to advertise your business to their friends.
In any new business, the first customers are always family and friends.
After this day, start baking your cupcake bits by bits. Do not bake in excess and also sell at moderate prices for now.
The price of cupcakes depends on the area, quality and quantity of ingredients used in making them. It can range from N100 to N300 per one.
6. Sell Online
You can also increase sales for your cupcake business buy taking advantage of the social media platforms. Instagram is the best social media for this as it allows you to upload pictures of your cupcakes adding hashtags to them.
All you need to be able to do this successfully is a phone with a good camera. Because human beings are driven by sight, when they see your cupcake they will likely want to know the price and order for them.
You can also advertise your cupcake business by uploading your cupcake pics and registering your cupcake business on Jiji. Jiji will help channel customers that want to buy your cupcakes in wholesale.
7. Do Delivery
Delivery is very important in this business as so many consumers might not be willing to come down to your shop to buy cupcakes.
Asides this, since you are also promoting your business online, you should also be able to deliver your cupcakes to customers online.
All you have to do is to add a delivery fee to buyers. Distance is important when making deliveries. It is always profitable to deliver your cupcakes to those that are not far from you.
For example, let’s say cupcake business is in Gbagada, Lagos you can do deliveries to buyers in Gbagada environs like, Yaba, Oshodi, Bariga, Ojota, Oworoshoki not Sango, Mile 12, Mile 2, and so on.
Cupcake business in Nigeria is lucrative a business if you’re passionate about cakes and want to make money baking.
If you’re not passionate the business can make you give up on time but in order to be really sure this business is truly what you want, you can start small – from your kitchen as time goes by grow gradually into a big business.
A real entrepreneur in Nigeria is someone that sees opportunities when others don’t and is willing to put every effort to make a business succeed.
Nothing can give up on you. It only gives up when you have given up on yourself.
What are your questions as regards this business?
Please drop them in the comments and share this article with those you feel might need to read it to help them in their entrepreneurship journey.