If you are interested in establishing a lucrative block business in Nigeria but lack knowledge about the necessary steps and process, I urge you to read this comprehensive article until the end.
Within this article, I will provide you with valuable insights on various aspects of the block industry business in Nigeria. These include the required capital, profitability analysis, feasibility studies, business planning, challenges encountered in the block business, and much more.
By delving into this all-inclusive article, you will gain extensive knowledge for the subject matter.
Block Industry Business
Block industry business involves the process of combining powdered cement, sand, gravel, and water to create blocks that have a light gray color, fine surface texture, and strong structure after being dried in the sun. The main purpose of this business is to meet the needs of builders and reduce the challenges they face during construction.
Block industries specialize in producing high-quality blocks that are suitable for building houses, ensuring that the structures remain stable and do not easily collapse. Any block that does not meet these standards is considered unsuitable for construction. The demand for blocks is higher during the dry season, as many builders prefer to work during this time.
If you observe your surroundings, you will notice that there is a constant need for construction, whether it is houses, schools, shops, religious centers, hospitals, factories, offices, or industries. This clearly indicates that the block industry business presents a lucrative opportunity.
In this article, I will provide you with all the necessary information to help you get started in this business.
How to start block industry business in Nigeria.
1. Create a Strategic Plan
Establishing a block business in Nigeria requires a significant amount of capital, making it crucial to carefully plan and strategize before making any investment decisions. Developing a comprehensive business plan is essential for ensuring the success of the project and minimizing risks by clearly outlining strategies and objectives. This plan should include detailed information on startup costs, thorough market research analysis, and projected profits.
In addition to market research, writing a business plan can be time-consuming, especially for those who are unfamiliar with the process. Therefore, unless you possess expertise in this area, it is advisable to consider utilizing professional business writing services. These services offer numerous benefits, such as access to experienced marketers and consultants who possess the knowledge and skills to craft an effective business plan.
2. Business Registration:
The next step is to officially register the business with the Corporate Affairs Commission (CAC) and other recognized authorities. By completing the registration process, you will gain access to various benefits such as loans and tailored opportunities for entrepreneurs.
Furthermore, having a registered business enables you to participate in bidding for contracts from local, state, and federal government agencies, as well as private companies, to supply blocks and other building materials.
3. Secure Sufficient Capital
Commencing any business venture necessitates a certain amount of capital to initiate operations, and establishing a block industry is no exception. The most favorable approach to obtaining adequate funds for your venture is to utilize your own financial resources, thereby eliminating the reliance on family, friends, or financial institutions that may encounter unforeseen circumstances preventing them from fulfilling their commitments.
4. Obtain Equipment
The initial equipment utilized in the process of block-making involves the utilization of a manual block molder or a vibrating machine. This particular machine is responsible for shaping bricks, blocks, and pavers by utilizing a concrete mix. It effectively mixes and vibrates the concrete at a high frequency, resulting in a consistent brick shape.
There exists a variety of manual block molders, ranging from basic models to more advanced industrial machines. Depending on the budget and production level, one can go for either a manual or an electric-powered machine. Additionally, the presence of a wheelbarrow is crucial for the transportation of blocks from the molder to the designated storage area before their sales.
The wheelbarrow significantly facilitates the movement of heavy items such as bags of cement, gravel for block-making, and other necessary materials within the block-making site, ensuring a seamless process without any complications.
5. Employ Workers
Having a team of laborers working in a block industry business proves to be an invaluable asset. They contribute to the smooth and efficient operation of the business by undertaking various tasks promptly and accurately. Primarily, they are responsible for transferring blocks from the vibrating machine to the designated dry area, guaranteeing that no stone or block is misplaced or left behind during the transportation process.
Furthermore, when the time comes to transport the blocks via truck, the laborers efficiently and swiftly load them, ensuring a safe and timely process.
However, if you do not initially possess enough capital, a viable alternative is to patiently wait until you can self-fund your business through personal savings until you accumulate sufficient resources. It is crucial to avoid mortgaging properties or resorting to loans to secure income, as these actions can potentially cause more harm than good in the long term.
6. Advertise:
Advertising is crucial for the success of any business, including the block-making industry. Simply producing blocks is not sufficient; it is essential to create awareness among potential customers so that they can place orders with you.
Various advertising methods can be employed, such as online advertising or traditional techniques like distributing handbills and posters.
The choice of advertising method that is most suitable for your block-making business will depend on its location. In many instances, the most effective approach has been to utilize handbills and posters to advertise your block business to individuals in your vicinity.
Step by step plan on how to start block industry business in Nigeria
1. Acquiring Land:
To establish a block industry, you have the option of renting, leasing, or purchasing land in a new or developing area. The size of the land can vary depending on your financial capacity.
However, it is crucial to avoid selecting a swampy or waterlogged location as it can negatively impact the quality of your blocks. Additionally, such conditions can make it challenging for suppliers and customers to navigate the area.
Once you have secured the land, you can proceed to set up a small roofed shed using either planks or blocks, depending on your budget. This shed will serve as a storage space for cement, shovels, head pans, wheelbarrows, and other necessary equipment.
Furthermore, it is essential to create a separate shed where the block molding machine and the lister can be operated. The roof of this shed can be open, without walls or side coverings, to protect the machine from constant exposure to rain or sunlight.
Most importantly, ensure that your chosen location is easily accessible by cars, trucks, and other means of transportation. This will reduce any inconvenience for both customers and workers.
2. Water System:
A reliable water supply is crucial for a block making industry. Water is needed for mixing sand and cement, molding blocks, and watering the blocks daily until they become strong.
If you do not have access to a natural water supply such as a stream or river, consider sinking a borehole or digging a well. Additionally, install tanks to store the water. It is vital to have a guaranteed source of water at all times.
3. Equipment:
Some of the equipment required for a block industry business includes:
i. Generator:
It is advisable to use a Lister generator for block making purposes. This generator will power the molding machine, borehole, mixing machine and other electricity-consuming equipment in case of a power outage. Ensure that you invest in a durable generator that is noise-proof, reliable, and fuel-efficient.
ii. Molder:
This machine is used to mold the blocks. It is also known as a vibrating machine due to the noise it produces during the molding process. The molder can create blocks in various sizes and shapes. You can either have it constructed by welders or purchase one from manufacturing companies.
iii. Wood Carriers:
They are essential tools in the block industry business as they facilitate the easy transportation of blocks. These flat wooden planks are specifically designed to carry blocks from the molder to the drying point, typically under the sun where they are arranged in sections. Skilled carpenters construct these carriers in a practical and movable manner, ensuring their convenience and efficiency.
When it comes to delivery services, acquiring supply trucks depends on your specific requirements and starting point. You have the flexibility to choose trucks that suit your needs.
iv. Concrete mixer:
A Concrete mixer is a machine specifically designed for the purpose of mixing sand, cement, and water in the correct proportions. This machine plays a crucial role in ensuring the quality of the blocks produced.
In terms of fuel consumption, the molding machine typically requires about 25 to 30 liters of diesel per day, depending on its operating duration. To plan for a week, it is advisable to have approximately 100 liters of diesel. However, it is important to store the fuel in a cool and dry place to prevent any potential explosions.
In addition to the aforementioned equipment, you will also need other tools such as a shovel, head pan, wheelbarrow, and more. These tools are essential for various tasks involved in the block industry business.
4. Human resources:
Human resources are vital for the smooth operation of a standard block industry business. You will need to employ individuals for different roles, including machine operators, mixers, laborers, loaders, and drivers.
The machine operator is responsible for handling and operating the molding machine. The mixers are in charge of mixing the cement and sand that are used in the molding process. The laborers play a crucial role in moving the blocks from the molder to the drying point.
If you are unable to oversee the day-to-day operations, it is advisable to consider employing a cashier or supervisor (optional) to ensure smooth functioning. Additionally, you will need a driver who will transport the blocks to customers in various locations, as well as loaders who will handle the loading and offloading of blocks at different points.
5. Sand, cement, and water:
They are the essential components used in the production of blocks. It is important to ensure enough supply of these materials to avoid any shortage during critical periods.
When it comes to sand, three types are required for block making: sharp sand, stone dust, and ordinary mud sand. These three varieties are mixed together with cement and water to create a solid block substance. To secure a sufficient sand supply, it is advisable to communicate with quarry managers and negotiate the delivery schedule.
In terms of cement, it is crucial to identify the type that produces strong blocks and go for it. Additionally, you may consider selling cement as an additional venture, as it complements the block industry business.
6. Make block:
The next step is to commence block production once all the necessary materials and equipment are in place. This involves mixing a specific proportion of cement, sand, and gravel with water.
Each bag of cement can yield a certain number of blocks, approximately 35-40 (9 inches), 50-55 (6 inches), and 60-65 (4 inches) blocks. These blocks can be sold at varying prices.
Furthermore, it is important to explore ways to increase your daily production in order to maximize profits. For instance, a block molding machine can produce around 5000 blocks in a day. If you have two machines, you can produce 10,000 blocks daily, enabling you to meet the demands of your customers.
In this business, laborers are typically paid on a daily basis, depending on the number or types of blocks they produce.
Is block making a good business?
Block making presents a lucrative opportunity for aspiring entrepreneurs seeking financial success in the construction sector. By making a modest initial investment, one can effortlessly establish a block-making business and reap a consistent income from their endeavors.
This business model have numerous advantages, including the need for minimal staff and the potential for substantial profits, as certain blocks can be sold at prices up to five times their production expenses.
How profitable is block industry in Nigeria?
The block industry in Nigeria is a highly profitable business due to the high demand for materials in the housing sector. While other materials like iron, concrete, and wood are used for construction in developed countries, blocks remain the preferred choice for builders and developers in Nigeria.
The profitability of a block-making business is greatly influenced by its location. Ideally, it should be situated near areas with active construction activities. Blocks will sell faster in developing locations compared to areas that have already been fully constructed. However, establishing a profitable block industry requires thorough research into the market requirements and the types of blocks available for sale in your specific area.
How much does it cost to start a block business in Nigeria?
When it comes to starting a block business in Nigeria, the initial capital required can vary depending on the equipment you plan to purchase. For small-scale businesses, the manual block molder is the most common and affordable option, with prices ranging from ₦30,000 to ₦40,000.
On the other hand, medium- and large-scale operations prefer the vibrating machine as it is faster and more efficient than manual molders. Although these machines are more expensive, they have a higher production capacity, allowing for the production of more blocks while reducing labor costs.
Additionally, you need to consider other costs such as acquiring a suitable building premises close enough to meet the market demand. The total investment required will depend on the scale of production you intend to pursue.
How many blocks can 1 cement make?
The quantity of blocks that can be produced from a single bag of cement depends on various factors such as the size of the blocks and the type of equipment used.
If a manual block molder is utilized, it is expected that approximately 40 to 50 blocks can be made from one bag of cement. On the other hand, an electric block molder is more efficient and can produce up to 50 to 60 blocks per bag of cement. However, it is important to note that these numbers may vary depending on the manufacturing methods employed by different companies.
How to make profits from the block making business
To maximize profits in the block making business, one effective strategy is to target real estate companies as potential customers.
Selling blocks to these companies can provide a larger customer base and generate more sales and profit. Since real estate companies require various building materials, it is crucial to ensure that your block industry offers a wide range of blocks for sale.
This ensures that you stay competitive and meet the evolving needs of your customers.
Another way to ensure you stay profitable in the block industry business is by diversifying the products you offer. Selling additional building materials alongside blocks can significantly increase profits, as there are multiple construction projects happening simultaneously across the country. By offering various types of building materials, you create more opportunities to attract customers and cater to a wider range of construction needs.
However, it is important to carefully plan this approach as not all types of materials may be profitable. Consider the additional costs associated with storage and transportation when deciding which products to offer, and factor these expenses into the pricing before making them available for sale.
Conclusion
In Nigeria, establishing a block-making business can be a lucrative venture that guarantees a consistent income. Nevertheless, it necessitates initial capital, equipment, and investment in advertising.
It is crucial to prioritize quality over quantity, as this approach will enable you to manufacture superior blocks and entice a larger customer base who is willing to pay a lot for top-notch construction materials.