Block industry business is one of the thriving businesses in the world today. unfortunately, only a few investors and entrepreneurs think in that line of investment.
Despite that having a roof over one’s head is one of the basic needs of man, a lot of people still don’t consider this business a profitable business venture. Probably because people think it’s a business for the uneducated.
Block industry business is an increasingly viable and lucrative business especially with new inventions like interlocking, and different kinds of block designs in vogue today. It is a business that thrives in urban as well as in the rural areas.
The block industry business satisfies the block needs of builders. Also, it saves builders the stress of having to buy sands, water, cement, and employing labour to mould blocks.
With the increasing number of building construction going on these days, block industries are never going to be too much. This is the time to give this business opportunity a second thought. This article will show you all you need to do to start your block industry business.
Block Industry Business
Block making refers to the mixture of powdered cement, sand, gravel with water in a way that produces a light gray colour with fine surface texture and strength after sun drying. It began with the need to satisfy builders and save them the stress that comes with building.
Block industries make high-quality blocks fit for building houses such that the constructions do not easily collapse. And any block that falls short of this, is not good for building. The business sells more in the dry season than the rainy season because several builders build during the dry season.
Looking at your immediate environment, you will see that people are building houses, schools, shops, religious centers, hospitals, factories, offices, and industries. This explains why this business opportunity is viable.
In this article, I will show you every thing you need to get started.
Create A Business Plan
To succeed in this business, you need to take basic steps at the initial start-up stage. This will help you to know the risks and likely dangers involved in the business. So, it’s important to conduct research on the business area, the kinds of block with high demand, prices, and competition.
It will help you have a better understanding of the market and devise a strategy to succeed. In taking this step, it is important to document the results which will form your block industry business plan.
Your block industry business plan should outline the following:
- Executive Summary
- Business Description
- Product and Services
- Market Research and Strategy
- Competitor and Marketing Plan
- Operational Plan
- Management and Structure
- Financial Plan and Projection.
Also, you need to pay attention to the human resources you need to effectively run your business.
Register Your Business
Once the block industry business plan has been documented, the next is to register the business with CAC and other recognized authorities. Doing a business registration will give you access to loans and other opportunities tailored to entrepreneurs.
Also, you can bid for a contract from the local, state, and federal government or private companies to supply blocks and other building materials with a registered business.
If you want to take away the stress of registering the business yourself with the Corporate Affairs Commission (CAC), ReDahlia is your plug. We can provide you with all the necessary information and give you legal advice on how to go about it.
Block making is capital intensive with start-up capital running into millions depending on the scale you want to start and the resources you have in place. The cost of securing land in a good location can be on the high side. Besides, you will need to get raw materials, sink a borehole, get block making equipment, e.t.c. And, set aside worker salaries for at least two months.
A local manual moulder cost about N10,000 to N15,000 naira while the vibrating machine goes for about N100,000 to N150,000. You also need to buy a lister generator and other equipment. Depending on your scale, you can buy 1 or 2 moulders for a start.
For capital, you can ask for soft loans from family and friends if you do not have enough capital to start. Also, you can use crowdfunding sites or approach financial institutions for a loan.
Step By Step Plan On How To Start Block Industry Business
You can start a block industry by renting, leasing, or purchasing land in a new or developing site. It can be a plot or more depending on what you can afford. This land should not be in a swampy or waterlogged area because it can affect the quality of your block. Aside from that, it can make driving in that condition very difficult for suppliers and customers.
On the land, set up a small roofed shed using plank or blocks depending on what you can afford. Create a store for storing cement, shovel, head pan, wheelbarrow, and other equipment.
Then, create a shed where the lister and molding machine can be operated. The roof can be without walls or side coverings, it is just to protect the machine from being constantly drenched by rain or sun.
Most importantly make sure your location can be easily accessed by cars, truck, or other means of transportation. This will ease the stress on the part of customers and your workers.
For a block making industry, you need water supply and more of it. Water will be used to mix sand and cements, to mould blocks and to water block on daily basis until it becomes strong.
If you do not have a natural water supply like stream or river, sink a borehole or dig a well, then, install tanks. Just make sure you have a guaranteed source of water at all times.
Some of the equipment used in a block industry business are:
Generator: Lister generator is usually preferred for block making. It will be used to power the molding machine, borehole, mixing machine, and other power-consuming equipment in case of an electricity outage. Ensure to get a durable one that is noise proof, does not constantly breakdown, and does not consume much diesel.
Molder: This is a machine where the blocks are molded from. It is also called a vibrating machine due to the kind of noise it makes while molding. The molder molds block in different sizes and shapes. It can be constructed by welders or better still purchased from manufacturing companies.
Wood Carriers: This is a flat wooden plank used to carry block from the molder to the drying point, mostly under the sun where it will be arranged in sections. It is constructed by carpenters in a handy and movable way. It’s highly important in the block industry business as it enables easy carriage of blocks.
Supply Truck: Depending on how you are starting, you can get trucks for delivery services.
Concrete Mixer – This is a machine used for mixing sand, cement, and water in the right proportion.
Diesel; About 25 litres to 30 litres every day depending on how long the moulding machine will be on. You can plan for about 100 litres for a week but ensure to store in a cool dry place to avoid an explosion.
You will also need: Shovel, head pan, wheelbarrow, e.t.c
For a standard block industry business, you will need to employ the services of people; machine operators, mixers, laborers, loaders, and drivers.
The machine operator handles and operates the machine. The mixers mix the cement and sand that goes into the molder, while, the laborers move the blocks from the molder to the drying point.
You can also employ a cashier or supervisor (optional) if you won’t be on the ground to oversee the day to day operation. In addition, you need, a driver who will transport the blocks to customers in different places, and loaders, who take responsibility for loading and offloading of blocks at different points.
In this business, labourers are usually paid daily based on the number of blocks or the types of block they make.
Sand And Cement
Sand, cement, and water are the raw materials used for block making. Start by getting a supply that can last for a week or more, so you don’t become short of materials at a crucial time.
For sand, three kinds are needed for block making; sharp sand, stone dust, and ordinary mud sand. These three are then mixed together with cement and water to form the solid block substance. You can speak with quarry managers on supply and negotiate the delivery time.
For the cement, find out the best cement that makes a block strong and go for it. Besides, you can also venture into cement selling since it comes handy with a block industry business.
Once the whole material and equipment are set, the next thing is to start making the blocks. This requires mixing a proportion of cement, sand, and gravel with water.
There’s a certain number of blocks that can be made from a bag of cement; about 35 – 40 (9 inches), 50 – 55 (6 inches), and 60 – 65 (4 inches) blocks. They are sold at different prices.
Also, look for ways to scale your production daily to maximise profit. For instance, a block molding machine makes about 5000 blocks in a day. If you have two, that will be 10,000 blocks a day. This will help you meet the demands of your customers.
Tips On How To Successfully Operate
Creating a block industry in a new site or developing area close to a busy road is a wise decision. This way, your first customers will be the builders in the vicinity and you will be sure of patronage.
Your number one marketing tool in the block industry business is providing high-quality blocks. This can be achieved by using quality materials for moulding.
Get listed on business directories and register on social media platforms. Also, get a business card and create business relationships with construction engineers, surveyors, architectural designers, bricklayers, and other people who deal with site-building.
Deliver good customer service to your clients and pay your labourers appropriately as agreed to get the best from them. Remember, your workers are your first customers.
Block making is a profitable business area that requires following due process and backing it up with determination to succeed. Start small and grow big if you don’t have any experience in the business.
If you have read up to this stage, I guess congratulation is in order. With this knowledge, you can venture into the block industry business.
As always, we will like to hear your thoughts in the comments. And, if you are experiencing business challenges and need to consult with us, we are a call away.