Are you thinking of going into the cake baking business in Nigeria but don’t know how to or where to start?
Well, let me save you the trouble of overthinking about it today.
After reading this article, you will be well on your way to making money from the cake baking business.
Trust me, there’s money to be made just baking cakes and selling to people.
The demand for cake in Nigeria is very high, which makes it a very lucrative business to start.
I guess you already have a hint about the profitability of cake making business and that’s why you are here to learn more.
Even though you found this article while surfing the internet for a lucrative business idea, trust me, this will benefit you.
So, if you are ready to learn how to start making money from the cake baking business in Nigeria, let’s dive right in.
What is Cake?
Because I don’t like to assume that everybody knows what a cake is, I’m just going to try to explain what it is here.
Simply put, a cake is a kind of sweet dessert made from flour, sugar, egg, and butter as base ingredients.
It also includes a combination of other ingredients such as salt, milk, sweeteners, baking powder, dried fruit, flavouring etc.
The only method of preparing a cake is by baking.
Caking baking is done following certain procedures that will guarantee the cake comes out fine.
A small bite into a piece of well-prepared cake will reveal to you the reason why many people love eating cakes.
Besides that, eating a piece of cake can make you feel full throughout the day.
Types of Cakes
There are many different types of cakes and each of them makes use of additional ingredients and recipes.
For professional bakers, the way they categorize cakes is by their ingredients and mixing methods.
On the other hand, home bakers just identify their cakes by flavouring—i.e., chocolate cakes, fruit cakes, and so on.
What is important is that the final texture and colour of a cake will depend on how you prepare the batter.
Below is a comprehensive but by no means an exhaustive list of the basic types of cakes.
1. Butter cake
Any recipe for a cake that begins with “cream butter and sugar” is a butter cake.
Different types of cake batter within the butter cake family include chocolate, white, yellow and marble.
Pound cake is a relative of butter cake. It’s so-called because it can be measured as a matter of proportion: a pound of butter, a pound of sugar, a pound of eggs, and a pound of flour.
Many coffee cakes, sour cream cakes, and fruit crumb cakes are variations of pound cake.
3. Sponge cake
A traditional sponge cake has just three ingredients: flour, sugar, and eggs.
Sponge cakes usually contain no baking soda or baking powder but lots of whipped eggs or egg whites.
You can still add flavours to your sponge cake to taste.
4. Red velvet cake
The red velvet cake is made with either butter or oil, and the cake’s colour comes from the reaction of buttermilk and cocoa powder.
Modern versions of the red velvet cake often achieve this colour by using red food colouring.
5. Carrot cake
Carrot cake, like the name implies, has grated carrots in it that make the cake extra moist.
This cake uses oil as its main fat rather than butter and contains baking powder for leavening.
Carrot cakes can also be flavoured with warm spices and frosted with a rich cream cheese frosting.
6. Hummingbird cake
This classic southern oil cake is flavoured with banana, pineapple, pecans, lots of warm spices, and topped with a tangy cream cheese frosting. Created in Jamaica and originally called “Doctor Bird Cake.”
These are just a few among the many different types of cakes there are in the world.
Reasons why people love to buy cakes
Really, what’s it with cakes? Why do people love cakes so much?
I don’t know about ‘people’, but I can tell you why ‘I’ love cake.
1. People buy cakes for ceremonies
Celebration, celebration, celebration. It’s mostly about ceremonies and celebrations. Cakes have become an integral part of a lot of occasions.
Whether it is for birthdays, anniversaries, child dedication, festivals, weddings, Valentine’s days, etc.
If you are a Nigerian, then you can testify that cakes are hotcakes (love the rhyme) every weekend because of numerous weddings.
2. Many buy cakes because they are beautiful!
Trust me, cakes are a beauty to behold.
The best thing is, they come in infinite shapes, sizes and design.
You can always cut your cake into anything you want whether it’s a bunny, a car or a house.
And sure you can make it colourful too as long as it serves its purpose.
3. You can buy a cake as a gift
Just the same way you buy chocolates and biscuits as gifts to someone you care about, you can also buy cakes as gifts.
4. People buy cakes because it’s a desert!
Cakes are just an absolutely perfect treat to satisfy your sugar cravings.
Many people buy cakes because it gives them an opportunity to experience a different taste and texture of food.
Besides, cakes make people happy and make them feel full too.
5. Many people buy a cake because it is tasty!
Wait! Let’s think about it…
Really, is there anyone who doesn’t love to eat cakes?
Cakes are absolutely delicious and heavenly and I think that’s enough reason to make it awesome.
Reasons Why You Should Start a Cake Making Business
Alright, now that you know why people buy cakes, it’s time for me to give you reasons why you should start the cake making business.
Here are some of the best reasons why the cake making business is a good business for you.
1. The demand for cake is very high
The first reason for you to go into the business of making cakes is because of the high demand for cakes.
In fact, this should always be one of the first reasons for you to go into any kind of business.
As long as there is a high demand, all you need to do is to position yourself strategically to meet the demands of people.
This strategy is called “feeding the starving crowd.”
A lot of people love to eat cakes, and interestingly, people can have it at any time of the day.
Cakes quickly satisfy the craving for sugar and they also come in different flavours that people love.
2. There is a need for cake in several ceremonies
Whether it’s a birthday party, wedding, valentine, anniversary, etc. cakes play an important role in all of these occasions.
Cakes are like ‘the heart of the party.’
You can never go wrong with a cake present on your occasion.
Because of the need for a cake on special occasions, you surely have to get into this business to meet this demand.
You will always have customers to sell your cakes to.
3. Cakes are not seasonal products
Unlike the demand for fruits that is seasonal in nature, the demand for cakes never ends.
For sure, we cannot deny the fact that there are certain peak periods of demand like Christmas, Valentine, Ramadan celebrations etc.
However, the demand will continue to exist as long as people still have their cravings and special occasions.
4. The business of cake making is not capital intensive
Going into the cake making business is not capital intensive at all.
This makes it one of the best businesses to start if you only have a little money in your pocket.
At least I know students who started making cakes for other students while they are still in school.
With as low as N20,000, you can buy the basic equipment for your cake making business.
You may start baking with your cooking stove and as you make profits, you can then purchase more sophisticated equipment.
The best part is that you can start the business of cake making from home.
So, you don’t need to pay rent for a shop somewhere.
5. The materials for starting a cake making business are easily accessible
Nothing breaks a business faster than unavailability of production materials.
Imagine not being able to source fine flour, eggs, butter and sugar for baking cakes for your customers.
That would be a horrible experience.
But, good gracious, that’s not the case with cake making business.
All of these materials are available everywhere.
I bet you may even get some of these items at a good discount if you are buying in bulk.
6 Tips That Will Guarantee Success in The Business of Cake Production in Nigeria
Alright, now we are going to see the basic steps you need to get your cake making business up and running.
Going into baking can be really rewarding and also painstaking.
There’s a lot of ups and downs.
But if you are able to crack the marketing and decoration of your cakes, you are on your way to building a great cake company.
Another way to make money in the industry is to diversify into offering cake training to people interested in baking.
If you are one of those who truly want to start making money from the business of making cakes, here are the steps to take;
1. Do a feasibility study and create a business plan for cake production
The first thing you must do when starting out your cake making business is to carry out a feasibility study.
Carrying out a feasibility study helps you to know the size of the market and find opportunities.
After gathering enough information from your study, it’s time to create a business plan for your cake making business.
The business plan will contain details of your strategy and financial speculations.
You can see almost clearly how much profits you will be able to make and how sustainable the business will be.
To take this paperwork a step further, you can go ahead and register a business name with the government.
2. Get the necessary training for starting a cake making company
After carrying out your feasibility study, you now have a double assurance that the business is viable for you.
The next thing you must do is to get the necessary training for starting and running a cake making company.
Learn how to bake cakes and take cake decorating classes too.
Besides learning how to bake and decorate delicious cakes, you must also learn how to do cake marketing.
In fact, marketing is at the core of every business.
If you can’t sell, I’m sorry, but you can’t get revenue and ultimately, you won’t be able to make profits.
3. Buy the necessary equipment and materials for the cake production business
While getting your training in the cake production business, you need to purchase basic equipment for starting up.
You will need equipment like a gas or electric oven, baking pans, bowls, whisker, electric mixer, measuring spoons etc.
Also, you need to get the ingredients for baking cakes.
They include flour, oil, baking powder, butter, flavours, sugar, syrup and many other ingredients.
The list of ingredients and the quantity you purchase will depend on your capital and on the type of cake you intend to make.
For example, you will need different sets of ingredients for making a fruit cake, chocolate cake or cream cake.
4. Pick a good sales location
Even though you can start your cake production business from home, you still need to choose a strategic place later.
When your business begins to expand, you will need more space and besides that, you want to site your shop where people can see you.
Picking a strategic location near to your target market is one sure way to always get new customers.
You could site your cake shop close to churches, universities or event centres.
Once people know you are good at what you do, your phone line will continue to ring non-stop.
5. Locate the best suppliers of cake making materials
Another important factor to consider when starting your cake production business is suppliers of cake baking materials.
One supplier alone is not enough.
You need to get as many cakes making raw material suppliers as possible for your business.
This strategy will help you to avoid delays and disappointments A.K.A “stories that touch the heart.”
6. Hire more workers
As the cake production business expands, you will need to get help to assist you and the business.
You need to be careful to select workers who are familiar with the cake making business.
Another way for you to select good workers is for you to pick workers who you can train to meet the demands of the business.
How to Bake Cakes: Ingredients and Recipe
If you are going to start the business of selling cakes, then you must learn how to make a cake.
Here is a simple recipe for making a cake.
Ingredients for making a cake
- 500g of fine flour
- 400g of granulated sugar
- 500g of butter or margarine
- 8 pieces of eggs
- 3 teaspoons of baking powder
- 2 teaspoons of flavour (e.g. vanilla essence, strawberry or chocolate flavour)
- Strawberry Cheese- 2 cover
- A pack of cake mix ( Optional)
Steps for preparing and baking a cake
Step 1: Prepare all the equipment you need for baking
Before starting the process of baking, make sure you have all you need for that.
What exactly you may need?
It must be a pan, it can be any size like 8-inch rounds, 9-inch rounds, 13-inch rounds or a Bundt pan.
Grease and flour the pan you are using for the baking.
Step 2: Preheat your oven to set the temperature
After your equipment is set, start preheating the oven so that when the batter is ready, you will be ready to bake without thinking of preheating your oven.
Step 3: Prepare the ingredients
Just like you prepare the equipment for baking cakes, you need to also prepare your ingredients so that it is ready for use.
Preparing the ingredients for cake making will depend on the type of cake you are making.
Basically, you need to filter the flour so that it is smooth.
If your butter is frozen, for instance, then you need to make sure you bring it to room temperature before using.
You can melt the butter by leaving by placing the container in warm water (make sure the butter does not melt to a liquid.
Step 4: Mix all the dry cake ingredients
Measure all the dry ingredients correctly and mix all of them thoroughly.
If you don’t mix the ingredients properly, your cake may not rise evenly.
You can use a wire whisk to combine the flour with the leavening agents.
Step 5: Whisk the butter and sugar to become creamy and consistent
Before baking, make sure the butter, which you use, is brought to room temperature.
Add the butter to your mixing bowl and whisk until it becomes creamy and consistent.
Next step, add the sugar slowly while mixing all of that together.
If you can’t add the sugar slowly while you mix, then add it in small portions at short intervals and mix well.
Step 6: Crack the eggs into the butter and sugar and mix together
As the butter and sugar mixture becomes creamy, crack the eggs and add to the paste.
The eggs, just like butter, must be room temperature too.
Step 7: Add flavouring agents and milk and mix everything together
At this point, you need to add all flavouring agents to the mixture.
If the flavouring agent is liquid, then it should go into the butter and sugar paste.
However, if the flavouring agent is dry, then it must go into the flour mixture.
The same condition applies to the milk too.
Make sure you mix the dry and wet mixtures properly, then add the flour mixture into the butter and sugar mixture.
Step 8: Put batter in pan.
Divide your batter between 2 round cake pans.
In case you are using a rectangular or Bundt pan, then you can add all the batter there.
Did you see how easy it is to put the batter in the pan?
This is because you already prepared the pan in step 1.
Now, after adding the batter to the pan, use a spatula to smoothen the top, so that it will stay smooth when the cake is ready.
Step 9: Baking process
As you remember, we’ve been preheating the oven all the while.
So, we expect that the temperature is ready now.
Now, set the temperature of the oven at 180° C and bake the cake for about 20-30 minutes (the time may vary slightly).
When the cake is ready, leave it to cool for ten minutes.
Then you can remove the cake from pans and let it cool completely before frosting the cake.
Step 10: Decorate your cake using icing
After your cake is completely cool, you may add some buttercream icing, cream cheese frosting, ganache.
You may also choose to add whipped cream between two cakes or even leave it as it is and add something above.
What is important is that you get to play with the decoration of the cake to meet your taste or the customer’s requirement.
Low-Cost Ways to Market Your Cake-Making Business
Now that you’ve started your cake making business, how then can you get customers to buy from you?
Well, this part will be very easy for you if you actually did your feasibility study and prepare a business plan for your cake production company
Even though you did not get the marketing aspect correctly, here are some tips that will help you get customers for your cake business.
1. Start with family and friends:
I know you’ve heard a lot of things about selling your products to family and friends.
You know how they demand extra discounts while some may not want to pay you for your product at all.
Well, you can still use them as marketers for your business.
You can ask a friend to host a cake-tasting party.
He or she can provide the space, and you will guide guests through tasting different kinds of cake and frosting.
In the end, you share catalogues, price sheets, and business cards, and ask guests to pass them on to friends and family.
2. Sell your cakes on social media
You may consider using one or two social media platforms to promote your products.
Start small, and work your way up. Include behind-the-scenes photos in addition to shots of the finished product.
You may also ask customers to share their photos of your creations on Instagram or Twitter with a hashtag using the name of your business (#yourbakeryname).
Here is an important tip for you; don’t just leave your social media marketing to organic traffic alone.
Put some money into promoting your cake production business online.
Doing this will attract people to make inquiries about your business and ultimately become your customers.
3. Create a brand for your cake production company
Hire a designer to create a logo, colour scheme, and price sheet for your business.
A professional-looking cake company commands higher prices and customer loyalty.
4. Attend cake exhibitions and conferences
If you make wedding cakes, investigate participating in a wedding show or advertising in a local speciality magazine.
This kind of gathering gives your exposure and an opportunity to network with other people in your niche.
5. Give good Customer service
One of the best ways to advertise your business is through word of mouth.
And if your customers like you, then they are going to let their friends and family know.
So answer the phone with a smile, be friendly.
Do more than what you promised.
A happy customer goes a long way.
6. Create a strategic partnership with complementary brands
You can partner with an event planner, a makeup artist, wedding hairstylist, or jewellery store for the opportunity to distribute your marketing materials to their customers.
If you partner with an event planner, for instance, they will include the need for a cake in their plan and it will be you who will supply the cake.
The same thing goes for the others.
When you maintain a healthy symbiotic relationship with many of these complementary brands, you will continue to get a lot of referrals.
Some challenges in cake making business
Challenges are inevitable in every kind of business whether you are doing it from home or from a standard company.
Some of the challenges you may face in your cake production business include;
- Stiff competition from competitors offering similar products.
- People moving towards healthy food products.
- Change in the price of raw materials.
- Criticism from friends and relatives.
- Lack of enough capital.
- Finding new customers to buy your cakes.
These are just a few challenges you may face in the business.
Other challenges are those common to every business like record keeping, unmotivated employees etc.
Phew!! I will drop my pen here.
If you have any questions concerning this cake production business guide, feel free to ask in the comment.
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