Introduction
The demand for cupcakes is very high all over the country, especially in urban centres, Schools, Hospitals and Hotels.
The estimated initial investment for setting up a medium cupcake enterprise is NGN 9,241,ooo. This idea is projected to yield an annual revenue of NGN 32,850,000 with a net profit margin of 32%
Process
Cupcakes can be baked directly in a patty, often baked in paper cases.
Basic Cupcake Mix;
- 100g unsalted butter, softened
- 500g caster sugar
- 500g self-raising flour
- 8 medium eggs
- 8 tablespoons milk
- Pinch of salt (optional)
Tools & Equipments
The Essential tools and equipment required include: Measuring Cups and spoons
Electric Mixer or Hand Mixer
Sheet Pans or Cupcake Pans
Oven Thermometer.
Capital Investment Requirements (CBN exchange rate -$1 to 410.20 NGN) as of 14 Dec 2021.
| Capital | Qty | Price per one
NGN |
Amount in NGN | Amount
In USD |
| Mixer | 1 | 20,000 | 20,000 | 48.78 |
| Cupcake Pans | 10 | 1,200 | 12,000 | 29.25 |
| Gas Cooker | 1 | 70,000 | 70000 | 170.64 |
| Spatula | 1 | 2,000 | 2000 | 4.87 |
| Thermometer | 1 | 3,000 | 3000 | 7.31 |
| Measuring Spoon | 1 | 2,000 | 2000 | 4.87 |
| Measuring Cup | 1 | 4,000 | 4,000 | 9.75 |
| Total Amount | 113,000 | 275.47 |
Production and operating costs
| Item | Units | @ NGN | Qty/day | Prod. Cost/
month-NGN |
Prod. Cost/ Year
NGN |
Prod. Cost/ Year
USD |
|
| Flour | g | 3500 | 500g | 105,000 | 1,277,500 | 3,144.33 | |
| Margarine | g | 900 | 500g | 27,000 | 328,500 | 800.82 | |
| BakingPowder | g | 50 | 2 | 3,000 | 36,500 | 88.98 | |
| Eggs | piece | 560 | 8 | 16,800 | 201,600 | 491.46 | |
| Sugar | g | 200 | 3 | 600 | 18,000 | 43.88 | |
| Subtotal | 1,862,100 | 4539.49 | |||||
General Costs (Overheads)
| Cost Per Month
NGN |
Cost Per Year
NGN |
Cost Per Year
USD |
|
| Rent | 2,340 | 70,000 | 170.64 |
| packaging | 666.66 | 20,000 | 48.75 |
| Labour | 333.33 | 10,000 | 24.38 |
| Utilities (Power &Water) | 1000 | 12,000 | 29.25 |
| Repair & Maintenance | 2000 | 24,000 | 58.50 |
| Gas | 2400 | 28,800 | 70.21 |
| Fuel | 3000 | 36,000 | 87.76 |
| Total | 200,800 | 489.51 |
Project product cost and Price structure
| Item | Qty/day | Qty/yr | @NGN per six | Pdn Cost/
yr NGN |
T/rev
NGN |
T/rev USD |
| Cupcakes | 48 | 17,520 | 3000 | 1,862,100 | 8,760,000 | 21,355.44 |
Profitability Analysis Table
| Profitability Item | Per day | Per Month | Per Year
NGN |
Per Year
USD |
|||||||
| Revenue | 24,000 | 720,000 | 8,760,000 | 21,355.44 | |||||||
| Less: Production & Operating Costs | 5,260 | 157,800 | 1,862,100 | 4539.49 | |||||||
| Profit | 6,897,900 | 16,815.94 | |||||||||
