How To Start A Successful Block Industry Business In Nigeria
The block industry business is one of the most successful industries operating in the world today. Unfortunately, only a small number of investors and entrepreneurs are considering making such an investment.
In spite of the fact that having a roof over one’s head is one of man’s most fundamental wants, many people still do not perceive this to be a lucrative business enterprise. Most likely because people believe it is a company for persons with little or no education.
The block industry business is becoming increasingly viable and profitable, especially with new inventions such as interlocking and other types of block designs that are currently in favor. In both urban and rural locations, it is a thriving business that attracts customers.
The block industry firm is responsible for meeting the block requirements of builders. Additionally, it relieves the stress of having to purchase sand, water, cement, and hire labor to mold the blocks.
With the increasing number of new buildings being constructed each year, the demand for block industries will never be insufficient to meet demand. This is an excellent moment to give this business idea another look. This post will show you all you need to know to get your block industry business up and running.
What is Block Industry Business All About
Block making is the process of combining powdered cement, sand, and gravel with water in such a way that the material dries to light gray color with a fine surface texture and high strength after being exposed to the sun. It all started with the desire to please builders and relieve them of the tension that comes with the construction process.
Block businesses provide high-quality blocks suitable for use in the construction of dwellings, ensuring that the structures do not collapse easily. And any block that does not meet these requirements is not suitable for construction. Because various builders construct homes during the dry season, the firm sells more during the dry season than during the wet season.
Consider your local surroundings: people are constructing houses, schools, shops, religious facilities (including hospitals), factories (including offices), and industries (including manufacturing). The reason for the viability of this business opportunity can be explained as follows:
Everything you need to know about getting started with the block industry business will be covered in this article.
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Make a Business Plan for Your Company
To be successful in this business, you must follow a few simple measures throughout the beginning stages of operation. This will assist you in understanding the risks and potential dangers associated with the business. As a result, it is critical to perform research on the business area, the types of blocks that are in high demand, the prices, and the level of competition.
It will assist you in gaining a better grasp of the market and developing a strategy to achieve success in it. It is critical to document the results of this step, as these will be used to create your block industry business strategy later on.
The following should be included in your business plan for the block industry:
- Summary of the Report
- Description of the Company
- Product and service market research and strategy are important components of any business.
- Competitor and marketing strategy Operational strategy Management and organizational structure
- Detailed financial projections and plans.
- In addition, you must pay close attention to the human resources required to manage your firm properly.
Obtaining a Business License
Once the block industry business plan has been created, the next step is to register the company with the California Department of Corporations (CAC) and other recognized agencies. By registering your business, you will gain access to financing and other options that are specifically designed for entrepreneurs.
In addition, if you have a registered business, you can bid on contracts for the delivery of blocks and other building supplies from the local, state, and federal governments, as well as private companies.
If you want to avoid the hassle of establishing your company with the Corporate Affairs Commission (CAC), ReDahlia is your go-to service provider. The information you require, as well as legal guidance on how to go about it, can be provided to you at your convenience.
Block manufacturing is a capital-intensive industry, with start-up capital ranging from millions to billions of dollars, depending on the scale at which you wish to operate and the resources you have available. The cost of acquiring land in a desirable location can be prohibitively expensive. In addition, you will need to obtain raw materials, drill a borehole, and purchase block-making equipment, among other things. Also, set aside at least two months’ worth of employee salary.
A manual molder in the local market costs approximately N10,000 to N15,000, but a vibrating machine costs approximately N100,000 to N150,000. In addition, you’ll need to purchase a lister generator and other related equipment. Starting out, you can purchase one or two molders, depending on your scale.
If you do not have enough funds to get started, you might seek soft loans from family and friends to help you get started. In addition, you can seek a loan from a financial institution or use crowdfunding services to raise funds.
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What You Need to Know About Starting a Block Manufacturing Business
Acquire a piece of land
Renting, leasing, or acquiring land on a newly developed site is an excellent way to get started in the block market. It could be a plot of land or more, depending on your financial situation. This land should not be located in a swampy or waterlogged location, as this will have an adverse effect on the quality of your block of land. Additionally, driving in such adverse weather conditions can be extremely hazardous for suppliers and customers alike.
Build a tiny roofed shelter on your property, either with planks or blocks, depending on your financial resources. Building an equipment store for cement, shovels, buckets, wheelbarrows and other supplies will be necessary.
Afterward, construct a shed in which to run the lister and the molding machine. The roof does not need to have any walls or side coverings; its sole purpose is to keep the machine from being repeatedly soaked by rain or sunlight.
Most importantly, be sure that your location can be easily reached by car, truck, or other modes of transportation, if necessary. Customers and your employees will benefit from this because it will reduce their stress levels.
System of Water Supply
Water is essential for the block-making industry, therefore more water is required. To mix the sand and cement, to mold the blocks, and water the blocks on a daily basis, water will be utilized until the block has solidified.
If you do not have access to a natural water source such as a stream or river, you can drill a borehole or dig a well and then add storage tanks. Ensure, however, that you always have a reliable source of water available to you.
The following items of equipment are utilized in the block industry business:
Generator: When it comes to blocking creation, the lister generator is typically preferred. In the event of an electricity outage, it will be used to power the molding machine, borehole, mixing machine, and other power-consuming equipment. Consider purchasing a long-lasting model that is noise-proof, does not frequently break down, and consumes a minimal amount of diesel.
Molder: An example of a molder is a machine from which the blocks are molded. Because of the type of noise, it creates while molding, it is also referred to as a vibrating machine. The molder creates blocks in a variety of sizes and configurations. The material can be made by welders on-site, or it can be acquired from manufacturing businesses.
Wood Transporter: A flat wooden plank used to transport block from the molder to a drying site, which is usually outside in the sun, where it will be laid out in parts A team of carpenters constructs it in a way that is both convenient and mobile. It is extremely crucial in the block industry since it allows for the easy transportation of blocks.
Truck for delivery services: Depending on your business model, you may be able to obtain delivery trucks.
Concreting Mixer: A concrete mixing machine that is used to mix sand, cement, and water together in the proper proportions.
Diesel: Approximately 25 to 30 liters each day, depending on how long the molding machine will be in operation is required. You can prepare approximately 100 liters of water for a week, but make sure to store it in a cool, dry location to avoid an explosion.
You’ll also need a shovel, a headpan, a wheelbarrow, and other tools.
Experienced Work Force
The services of individuals are required for the operation of a basic block industry business, including machine operators, mixers, laborers, loaders, and drivers (among others).
The machine operator is in charge of the machine’s handling and operation. The employees transfer the blocks from the molder to the drying point while the mixers mix the cement and sand that will be used in the molder.
If you won’t be on the ground to supervise the day-to-day operations, you can also hire a cashier or a supervisor (optional). In addition, you will require a driver who will transport the blocks to consumers at various locations, as well as leaders who will be responsible for loading and unloading the blocks at various locations.
Laborers in this industry are typically compensated on a daily basis based on the number of blocks or the sorts of blocks they produce.
Sand and cement
Sand, cement, and water are two of the most used raw building materials that are utilized in the production of blocks. Make sure you have enough supplies to last at least a week, if not longer so that you don’t run out of materials at a critical moment.
Sharp sand, stone dust, and common mud sand are the three types of sand that are required for block production. These three components are then combined with cement and water to make the solid block material. You can discuss supplies with quarry management and work out a delivery schedule with them as well.
For the cement, research the best cement for making a block as strong as possible before using it. In addition, since cement is required for a block manufacturing business, you may consider selling it as a side business.
Creation of Blocks
After all of the materials and tools have been assembled, the following step is to begin constructing the blocks. Pouring in a proportion of cement, sand, and gravel with water is required for this.
There is a limit to the number of blocks that can be manufactured from a bag of cement; approximately 35 – 40 (9 inches), 50 – 55 (6 inches), and 60 – 65 (4 inches) blocks can be made from a bag of cement. They are available for purchase at a variety of rates.
Additionally, search for strategies to grow your production on a daily basis in order to maximize earnings. For example, a block molding machine can produce approximately 5000 blocks in a single day. If you have two, you will be able to do 10,000 blocks per day. This will allow you to better address the needs of your clients in the future.
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Instructions on How to Run a Successful Block Business
Investing in a block industry in a new development site or in a developing area near a busy road is a smart decision. The builders in the area will be your initial customers, and you will be assured of repeat business as a result of this. The provision of high-quality blocks is your most effective marketing strategy in the block industry business. This can be accomplished by employing high-quality materials for the molding process. Make sure your company is listed in business directories and that you are registered on social media networks.
Additionally, obtain a business card and establish business contacts with construction engineers, surveyors, architectural designers, bricklayers, and other individuals who are involved in site construction. Deliver excellent customer service to your clients and pay your laborers adequately according to the terms of the agreement in order to get the most out of them. Keep in mind that your employees are your first customers.
How to Maximize Profits While running a block industry business in Nigeria
Making a profit does not necessarily imply producing high-quality blocks; rather, it entails implementing all of the essential strategies to instill confidence in your customers’ perception of your product’s quality. Aside from that, block manufacturing enterprises occasionally suffer financial losses, not because of poor quality blocks, but because they are unable to meet the demands of their clients on a consistent basis. If a customer orders 5000 pieces of 9-inch hollow blocks, which typically cost between N150 and N200 per piece in Nigeria and pays in advance for them to be delivered to his building site in two days, the block industry will fail to meet the demand, leaving the builder with no choice but to look for some other source of supply, which will cost him more money in the long run.
In light of the foregoing two considerations, what block industries should concentrate on in order to increase their profits are strategic standardization and quick techniques of producing huge quantities of blocks in a short period of time.
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Let’s go through each of these issues in greater depth;
Firstly, as previously stated, making a profit in the block industry does not necessarily imply producing high-quality blocks. This is due to the fact that high-quality blocks are expensive to produce and therefore require selling them at a high price. However, when the industry is located in an area where customers cannot afford such high prices or there is intense competition with other block industries, the industry will struggle to make a profit in the industry. As a result, the strategy should be to figure out how to make your blocks appear or look like high-quality ones. It should be noted that this does not mean the construction of substandard blocks. That is, your block should meet a high-quality standard and should be constructed in such a way that it can be easily recognized as a high-quality block by a newbie in the industry. Consider the following concept to help you reach your goal:
After combining the standard proportions of sand, cement, and water, you can experiment with color-changing agents such as powered granites or cement whose color easily dominates that of the sand, or you can use sharp sand whose color can be absorbed easily by the cement to create a more interesting effect. The goal here is to ensure that your block has a greater amount of cement color than sand color after it has been molded together. Customers can readily believe your quality from the appearance of the blocks, thus if your blocks have a more cement-like hue than others, they will presume you have used more cement in your blocks than others, and of course, more cement indicates higher quality in terms of strength and durability.
As a result, raising your pricing a bit above the competition may have minimal effect on your sales; rather, it will send a signal to buyers that your blocks are of greater quality than others. Since most popular names in the block industries employ this strategy, ensure that you produce high-quality blocks with similar appearances for a period of time, especially if you are new to the business, in order to establish a good reputation for yourself. After approximately 8-12 months, you can then gradually introduce the strategy in a manner that will go unnoticed by your customers and clients.
Secondly, in order to make a decent profit from the block manufacturing business, it is necessary to find means of producing large numbers of blocks in a short period of time. This may be accomplished by using the machine molding method rather than the hand molding technique.
Molding blocks manually not only stresses your workers but also slows down the entire block-making process. When such a method is used in the block industry, it will be difficult to meet up with some high quantity demands unless you employ temporary workers who may not be available on a consistent basis.
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However, employing block molding machines in your block company will ensure that the block-producing process is completed quickly and accurately, as well as providing your employees with ample time to rest or take breaks during their daily block manufacturing activities. A high-quality block molding machine can produce more than 5000 blocks every day, which means that if there are two or more of them in the business, you will have no limit to the number of blocks you can deliver to your clients at any given time. You may program each of the machines to mold a specific size of the block, ensuring that your industry is stocked with all of the necessary sizes of blocks to meet the needs of your clients.
Aside from that, experience has shown that blocks produced by molding machines are more compacted than those produced by hand-carving. Thus, they are typically stronger and more durable than other types of materials. If your clients discover that your blocks were manufactured using machines, they will be more likely to trust your products, and if this is the case, you can choose to charge a lower price for your blocks than those produced manually by your competitors.
Block-making is a profitable business field that involves adhering to the proper procedures and backing it up with a strong sense of dedication in order to be successful. If you have no prior company expertise, it is best to start small and build from there.
If you’ve made it this far, I’d like to extend my heartiest congratulations to you. You can start a business in the block industry if you have the necessary information.
As is always the case, we’d love to hear your thoughts in the comments section. Furthermore, if you are encountering business difficulties and require our assistance, we are only a phone call away.