Mr. Akpede ThankGod is the proud owner of Dominion Butter Bread Bakery.He is a young graduate of Economics from the Delta State University, Abraka. He started his bakery from scratch through goodwill of friends and loan obtained from the Delta State Government. In this Interview with our News Editor, FRANCIS SADHERE, he narrates his passion for baking and how he struggled to own his own bakery through hard work and dedication. Excerpt:
Please introduce yourself to us
My name is Akpede ThankGod, a graduate of Economics from the Delta State University. Right from my secondary school days I know I will become a baker one day because I love baking. When I was doing my youth service in Oyo State, I always work part time as baker in a bakery where I was posted to. And I was enjoying it because I was making extra money from it. In 2008 when I finished my youth service I came back here to Ughelli and I was working in Macro Micro finance bank. In 2009 I had this dream of owning my own bakery but because the finance was not there, I could not make it. There was nobody to help me financially.
It took me two years to start this business. Because I did not have capital to start with I had to borrow 70 percent of the capital that I used to start the business. From the capital borrowed, I was paying 15 percent monthly as interest. I settle the interest and everything in six months. I hired a place and paid for the rent, buy the equipments and everything was set. We started production with half a bag of flour. The other materials we have to buy on credit and pay back after production. The initial capital was 1.5m. which was borrowed from friends and was paying 15 percent. I bought mechanized oven for 500 thousand naira. i started with five workers and I pay them on daily basis. We produce a minimum of 2,300 loaves per day. My permanent site was bought after one year in business. I bought all the equipment without borrowing from anybody.
Challenges
Some customers will buy on credit from me and will refuse to play. That was a big challenge to me and I had to device a means to deal with it. If you want to buy my product, you will have to pay 60 percent before I give you my products. My products are produce in high quality and that makes the customers to pay half of the money before I sell my products to them.
Discouragement and initial fears
Before setting up the bakery business I had done a feasibility study on the business. Some of my friends told me not to venture into the business because I will end up in debt. But despite everything I said let me try it first because it is better for me to try and fail than not to try at all. So gradually the business started growing. So I think many people are afraid to venture into the business because of fear. I took the bull by the horn. At the time that I started the business, my salary was just 25 thousand naira only. Even when I took the loan I did not know how I was going to pay the interest, but somehow I managed to pay the interest and the initial capital that I borrowed. People were surprised that in six months time I have cleared everything because the business was booming. Even some of my competitors were thinking that I was using diabolic means to boost my business.
Support from immediate family
My immediate family was very supportive of me. My mother always buys my products to sell to others and she used the profit to take care of herself. After a couple of years I bought my mother a car which she can use to distribute her bread to others. My younger brother is also working with me and I am paying him salary on daily basis. None of my family members discouraged me when I started the bread business.
How government can help young entrepreneur
The first thing that we should talk about is your passion for the kind of business you want to do. If you do not have a passion for that business, even if you are given money by government you will divert the money to other areas. I started from scratch with minimal help from any government. I think what government should do is to set up skills acquisition centers where youths can be trained in various skills and after that they will be given starter pack to start off. They should not be given physical cash all the time.
What to do when you want to get into baking business
The first thing you have to have a knowledge of what bakery is all about; how much is coming from a bag; proper accounting work and how to utilize money. You must be somebody that knows what his priorities are. The market is very large because when I started I did not have anybody in mind. Gradually people started buying from me and today we cannot even meet the demands of our customers. Sometimes people will queue up just to buy my product. It is very hectic because we only go home by midnight and come back by 4am.
On cassava flour initiative by the Federal Government.
I really do not know much about cassava flour. Though I have been hearing a lot about it but I dont know how to get it.
Baking ingredient
Flour, sugar, salt, butter, vegetable oil, EDC, preservatives, yeast, forum (used to make the bread ferment), wheat flavor. Raw material is gotten from the market.
Loan from state government
We formed a cluster group before we were given the loans. The loan we collected was 2.5 million.
Vision
my vision in the years ahead is for me to expand my business because the market is still very open. I also want to open a biscuit factory when I save enough money.
Advice to young people
I want to advise the young people in the country to try and go into business. As we all know business rule the world. With business you can have the world in your palm. If you look at the richest men in the world you will find out that all of them are businessmen. So to me business is the best business to go into. Another thing you will need to be successful is dedication and moderation. You should mind the way you spend money because if you are that type that does not know how to spend money, you will end up in debt. A lot of those that started the business before me are surprised to see how successful I have become in such a short time. Some even think that I am using charms saying that is why my business is booming. But to me I will say it is the grace of God. If you also want to be successful in this business you must first of all acquire a land in which you will build your permanent site first and after that the rest will follow. You have to prioritize your needs and avoid excessive spending. Young people should look for something to do apart from the normal education they have acquired. Government should help such people by creating vocational training centers and give them starter packs to start their businesses at the end of the training.
When the vision started
It started around 2009. Even before that time I have this passion for baking and that was why even when I was doing my youth service I was still working in a bakery as part time. All my friends know that I love baking a lot. So when I was hearing the voice in 2009 I knew I will be successful.
Role of Government
So I will say the government of the day should make the environment conducive for business for our youths. It is not all about white collar jobs. There are so many businesses that you can do and be successful. All government has to do is provide the initial capital for those interested in doing business.
How many people have you made?
I have made at least two young men that are now doing well on their own. One of them is in Ughelli while the other one is in Warri.
Where do you wish to be in the next ten years?
I believe in divine favour so I will not want to say I want to be this or that. I know I will go places in the years to come.
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