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.
Carry Out a Survey of Your Locality
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.
Select a Suitable Location
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.
Register Your Block Industry
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.
Start Up Capital
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;
- Block Moulding Machine: For moulding the cement mortar into blocks.
- Truck: The truck will be used to deliver blocks to customer building sites. However, if you do not have enough funds you can skip this one.
- Concrete Mixer: This piece of equipment will be used to mix the sand, cement and water. Concrete mixing can be done manually, but using a mixer will save you a lot of time.
- Head pans, shovels, trowels and other hand tools.
- Storage Shed: You will need a secure place where you can safely store your cement away from sun and rain. A small shed with a good roof will properly serve this purpose. Alternatively, a lot of people make use of disused shipping containers as their storage room.
- Wooden Palette: The moulded blocks will be placed on the palette while they dry in the open. This will prevent the blocks from having direct contact with the ground. An alternative to this is to pour a layer of sharp sand on the floor of your block industry. The idea is to have your blocks on a platform that does not retain water.
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.
- Maintain a High Standard: Maintaining a high quality of output will help to retain customers and also win new ones. As earlier stated, it is important to embark on training before starting this business. In the training you will learn the ratio of cement to sand and water that will give high quality blocks. Having this information handy will help you to properly monitor the quality of your output.
- Market Your Business: Do not hesitate to tell people about your business. You can also approach building sites around you to let them know about your business.
- Seek Information: Interact with people who have vast experience in this business. You will definitely learn a trick or two from them.
- Identify a Good Source of Materials: The main materials needed are sand, cement and water. Ensure that you have reliable suppliers that can guarantee consistent provision of these items. Remember, not all cement types are suitable for block production. Block production is best done with Portland cement.
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.
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