How to Start Block Industry Business in Nigeria.
Considering starting a block industry business in Nigeria? Then, See everything that you need to know about it here, beginning from the nature of the business, how lucrative it is, the start-up capital, and materials needed to get them started. READ MORE BELOW;
Every day, people are building houses for new homes, churches, mosques, shopping centers, offices, etc. and that’s why the demand for blocks is now higher making it one of the lucrative businesses in Nigeria, though with fewer investors.
However, to start a block industry, there are certain things that you need to put in place like of which we will list them out here to you for free without you paying a dime for the information.
Let’s get started!!!
Welcome to the focal point of this content, which is How to Start a Block Industry Business in Nigeria. But, before you start this, you must, first of all, create a business plan which will help you to have a better understanding of the market and devise a strategy to succeed in the business within a couple of months.
However, your block industry business plan should outline the following:
- Executive Summary
- Business Description
- Product and Services
- Market Research and Strategy
- Competitor and Marketing Plan
- Operational Plan
- Management and Structure
- Financial Plan and Projection.
Also, you have to register your business name with the corporate affairs commission (CAC) and registering that business will open other doors for you to expand the business like accessing loans and other opportunities tailored to entrepreneurs. And availing to you the chance of bidding a contract from the local, state, and federal government or private companies to supply blocks and other building materials with a registered business.
Start-Up Capital and How to Raise Easily
Starting a block industry may require a whooping sum of money, sometimes amounting to millions depending on how standard you want your business to look like in the eyes of people and your client.
That’s why you need to write a business plan to know the estimated or actual amount it will cost you to start a block industry business.
For instance, now, a local manual moulder cost about N10,000 to N15,000 naira while the vibrating machine goes for about N100,000 to N150,000 and you also need to buy a lister generator and other equipment. Depending on your scale, you can buy 1 or 2 moulders for a start.
However, the following equipment and facilities would be needed for a block industry;
- Block Moulding Machine
- Truck
- Concrete Mixer
- Head pans, shovels, trowels, and other hand tools.
- Storage Shed
- Wooden Palette
- Deisel
So, writing the Business Plan will help you to know the amount of money needed after summing up the estimated amount of money for each material based on the quantity required.
How You Can Easily Raise Capitals for You Business
For the capital, you can ask for soft loans from family and friends if you do not have enough money to start. Also, you can use crowdfunding sites or approach financial institutions for a loan.
How to Start a Quality and Profitable Block Industry Business
After you have successfully made the capital available, here are the steps to follow to get your company up and working;
1. Buy or Rent a Land in a Good Location that can be easily accessed by cars, trucks, or other means of transportation, somehow nearest to the highway. Let the price of the plot of land or piece of land be dependent on how financially buoyant your pocket is. It’s not a must for you to start with a big plot of land.
2. Set up a small roofed shed using plank or blocks depending based on what you can afford on the acquired land. Also, Create a store for storing cement, shovel, head pan, wheelbarrow, and other equipment.
3. Setup a source of water for the company that will supply water for the day to day and smooth running of the business without stress.
You may either sink a borehole or dig a well, install water tanks since you don’t have any natural water supply like stream or river. But all you need to make sure of is that the company has a steady water supply system.
4. Buy the needed equipment like Block Moulding Machine, Truck, Concrete Mixer, Head pans, shovels, trowels, and other hand tools, Storage Shed, Wooden Palette, and Deisel just as we stated above.
5. After making sure that everything needed for the day to day of the company is complete, the next thing you are to do is to start hiring labourers who will work for you since this is not a one-person business.
Nonetheless, you have to know that these laborers are either pay on a daily or weekly basis depending on the agreement and the person’s effort.
6. At this point, you will have to buy your sands and cement in large quantities for the work to begin ASAP. Check out the current prices of cement here.
7. After making sure that the whole material and equipment are set, you will then have to start producing quality blocks through mixing a proportion of cement, sand, and gravel with water.
Also, note that the blocks come in different sizes like 9 inches, 6 inches, or 4 inches. And there’s a certain number of blocks that can be made from a bag of cement if you are to be producing the earlier listed sizes. Like now, a bag of cement can produce about 35 – 40 (9 inches), 50 – 55 (6 inches), and 60 – 65 (4 inches) blocks.
However, they are sold at different prices based on the inches needed.
Coming to this point, it is better for you to for ways to scale your production daily to maximize profit. For instance, a block molding machine makes about 5000 blocks in a day. So, imagine that you have two of that, that means you’ll be producing 10,000 blocks a day, and by so doing, it will definitely help you meet the demands of your customers.
8. Create awareness for your new business since you are just starting that business in the location. Get your business name listed on business directories and register on social media platforms.
Also, make available a business card for yourself and workers and create business relationships with construction engineers, surveyors, architectural designers, bricklayers, and other people who deal with site-building.
9. Make sure to deliver good customer service to your clients and pay your labourers well as agreed to get the best from them. Have in mind that your workers are your first customers.
Skills Needed to Run a Block Industry Business in Nigeria
Research and Due Diligence
Due diligence and research are two important rules to follow before spending any money in any commercial enterprise. Investing in something you don’t understand is never a good decision.
Block making is a fairly steady industry. It seems unlikely that anything new will be introduced to this market in the next years. Simple bricks that have been backed in the kiln. There is already a large market with thousands of competitors vying for the same market and location.
Basic questions like, “What can you give your buyers that others don’t?” should be asked. Is your block going to be unique? Will your block be less expensive?
All of these questions may be answered by conducting thorough market research. Blocks have a nationwide standard price, and nearly all block manufacturers offer them in the same price bracket.
Business Plan and Feasibility Analysis
After you’ve done adequate research on block manufacturing, the moment will come when you’ll have to make a decision about the business’s viability. Are you sure it’s right for you? You should ask yourself if the effort you put in is paying off in terms of profits.
Such responses can only be provided based on a micro-study of this business at the local level, taking into account the local elements at play. Based on the results of the analysis, create a business strategy that reflects your goals for the business.
A business plan can assist you in obtaining bank investments and loans anytime you require them.
Human Resources and Skilled Labor
There aren’t many skills involved in making blocks. In order to properly bake blocks, all that is required is that you look for the right mixture of water and cement, as well as the appropriate baking temperature and time.
Anyone may understand these ideas. You can employ one professional labourer who has been in the brickwork industry for a long time. The rest will be needed to perform manual labour.
Even on a modest budget, you’ll need at least three labourers to get started, with the number increasing to a dozen depending on your needs.
What’s you take on this? Do you have any question to ask or an opinion to contribute to this? If yes, then let’s hear you at the comment section below, and please share this post as usual on different social media platforms. Thanks
Thanks for your good write up. You didn’t mention expected profit and cost of operation and raw material. What is my projected revenue if I produce 5000 blocks