Block industry is among the most popular business to invest in Nigeria. There is a rapid increase in building of new residential houses, offices, factorys and other new buildings which requires block, This has made block industry a lucrative business in Nigeria.
Starting your own block industry in Nigeria will give you the opportunity to be your own boss and set your own hours, but there are things you need to do in order to keep your business on the right track.
The construction industry is booming right now in Nigeria, Every construction business needs blocks for it to be complete. If you are thinking of starting a block industry in Nigeria this article will give you a detailed guide to get started.
Steps For Starting Up A Block Industry
Here are 8 steps to help you start a block industry in Nigeria:
1. Write A Business Plan
Creating a business plan will help you determine your business goals and guidelines needed to meet those goals.
The first step you need to take is to get an expert to create a valid block industry business plan for you. A poor business plan will fail to deliver that’s why you need a professional business plan from an expert.
Plans for a block making Industries also emphasizes who will run the industry, types of blocks and quantity of blocks to be manufactured and how it will be sold.
A block making business plan also outlines where you get sand and raw materials for molding. In fact your business plan should define your business structure, marketing strategy, finances and your competition’s.
2. Get The Right Qualifications And Training
One of the requirements needed before setting up a cement block industry is getting the right training. You need to get qualified. If you don’t have any formal training in the construction industry then you should consider getting trained by a professional block moulding companies or individuals.
It is also a good idea to partake in some block moulding work so as to practice your skills.
If you already have experience about the pros and cons involved in block molding then work with your skills/experience and establish a professional block industry.
The capital needed to establish a block industry is very huge. When budgeting your capitals, you should consider the cost of securing lands, buying equipments, raw materials, borehole opening, fee for labourers. Indeed, block industry is capital intensive.
At this point you have to look for money to fund your business.
You can as well check if you can get any funds from government from their schemes in order to offer financial assistance to your industry. There are so many alternatives to get the necessary finance like approaching your banks, crowd funders, etc.
4. Find A Suitable Location
You now have to consider where your block industry will be located at. With a block industry business you need a good location with space to occupy your equipments, materials and blocks.
However, it is best to look for a suitable location that can be accessible to your customers at anytime. Imagine a location where transport can’t come in to buy or carry blocks, That’s too bad.
5. Register Your Block Industry Business
Before you start operating as a block industry in Nigeria, you need to try as much as possible to make your business legal by registering your business with the Corporate Affairs Commission (CAC).
After the business registration, apply for permits and licences. You need to contact your local government in order to find out what permits and licences are legally required for you to operate as a block industry. This will also be a great opportunity to join a good block moulding associations.
6. Buy The Necessary Equipment Needed
It is time to equip your business with the required tools and equipment like head pan, shovels, cement mixer, cement molder, generator, supply trucks, wheelbarrow, cement block carrier, security chains, etc. Depending on your budget, you may decide to buy or to lease but the best advice is to buy equipments rather than leasing.
You will also need to drill boreholes for your blocking making business because you need a more of water to make blocks, watering blocks and other activities that will need water. In all, just make sure there is source for water supply.
However, if your capital is not enough to drill boreholes, you can source your water from tankers that supplies water. You will also need to evaluate the shops where you can be buying your cement, Also find a reliable source of sand for molding.
7. Hire Experienced Workers
To run a successful block moulding business, you will need to employ people who have the knowledge of moulding blocks. Here are some of the personnel’s needed: loaders, drivers, mixers, machine operators e.t.c.
8. Promote Your Business
Now that’s your block industry is up and running, your new focus should be about getting more and more customers. A good way to achieve that is through promotion of your business.
Cost Of Starting A Block Industry In Nigeria
Based on the processes of starting a block industry in Nigeria which was discussed above, cost of starting a block industry in Nigeria is hard to estimate due to some certain factors like location, equipment and raw material’s sources.
But with some calculations you are likely to start a block industry in Nigeria with $15,000 on an average scale. You should know that you can spend more or less depending on scale factors.