This is a step-by-step guide on how to start a block industry in Nigeria. Block industry in Nigeria is without doubt a profitable business that has the capacity to generate consistent income for the owner. This article is aimed at showing you how to start a block industry in Nigeria.
The rapid population growth currently witnessed in Nigeria means that towns and cities are on a continuous expansion path. This expansion has resulted in the need for the building of so many new homes, churches, mosques, shopping centres, offices etc. This in turn has resulted in the continuous increase in the demand for building blocks.
The block industry can be a very viable business venture if the appropriate measures are taken during the process of starting it up. Failure to plan and strategize properly could lead to you incurring heavy losses.
Some of the steps that are required to be taken in order to minimise failure will be highlighted in this article.
It is important that you have a good idea what the demand for blocks is like in the locality where you intend to set up your block industry. The reason for this is because of the high cost involved in transporting blocks from one location to another.
If there is no high demand for blocks around you, then you will end up not being able to supply your blocks to customers at a good price. Make sure that you understand the dynamics of the business in your locality before investing your money in this business.
Coupled with your survey, it will also help to undergo some form of basic training in block making. This is because block making could involve quite a bit of technicality. While you might not be the one physically mixing the mortar to make the blocks, it is important that you understand what is going on so that you can effectively control the quality of your products.
A block industry requires quite some space for drying the moulded blocks, housing the machinery and storing your sand and cement. For a small scale one, a plot of land (100ft X 100ft) will be just fine.
Another thing that you must take note of with respect to location is the availability and proximity to a reliable water source. Block industries need a sufficient flow of water for production to run smoothly. As much as possible, do not depend on buying water for the operation of your cement industry because this will raise your operating cost by a great amount. If there is no natural water source around your location, sink a borehole or dig a well as the case may be.
Another important factor to consider when choosing a location for your block industry is the closeness to residential areas. It is not ideal to locate your block industry very close to residential areas because of the noise you would generate. You should also try to locate it in a place that is accessible because vehicles will constantly need to have access to supply materials or to buy blocks.
You should also ensure that the location is not low lying or waterlogged. This is to prevent your blocks that have been left out to dry from being destroyed by water, especially during the raining season.
It is important that you register with the government and all other necessary authorities so that you can be fully recognized as a legal entity. Endeavour to register with the Corporate Affairs Commission (CAC) else you will not be able to access government loans or bid for any federal, state or local government contracts.
Proper registration with the tax authorities will ensure that you are pay the right taxes.
This business can be regarded as a capital intensive one. The start-up capital will be mainly invested into securing a good location, purchasing of equipment, purchasing of block making materials, registration etc.
The following equipment and facilities would be needed for a block industry;
For a small scale block factory, you will need at least six staff. You need to find someone who is skilled in operating the block making machine, a mixer operator, while the others will be responsible for activities such as loading blocks onto a vehicle, offloading your block making materials and other manual tasks. As your business expands, you may need to hire extra staff.
With all these in place, your block industry is set and ready to begin operation.
In conclusion, I would like to offer a few business tips that can aid success.
I hope that this article has given you a clearer idea of how to start a block industry in Nigeria.
If you have any thoughts or questions, please feel free to air them in our comments section.