Looking to start a business selling ice cream? You are not alone. Most people with a sweet tooth have at a point stood in an ice cream shop, and desire to get such a business running. Of course, starting an ice cream business seems like a perfect one. Not only does it allow you to be your own boss, but you will also get to make a good income while you have a feel of those special scoops. Great, right?
But before you delve into starting a business selling ice cream, there are some important things you need to bear in mind. There is more to opening an ice cream shop, it requires a lot of planning to be successful.
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Important Things to Know When Starting a Business Selling Ice Cream
Let’s learn about “How To Start An Ice Cream Business” in detail:
#1: Make Sure You Have Enough Capital
Just like it is with other businesses, starting an ice cream business will require some startup capital. So before you start making plans as to how to start this business, make sure you understand the financial implications. Know the costs involved. This includes costs of buying your equipment, supplies, furniture, permits, construction, architect fees, etc. having enough capital to run the business for the first few months even when you are not making enough capital is very important. It will help you start well and get things rolling early enough.
How much do you need to start a business selling ice cream?
The amount you need to start your ice cream business depends on the model of the business. If you are planning to get an ice cream franchise, where you will get everything you need to get started, you will need about $50,000 to $120,000. A few examples of ice cream franchises you can leverage are Sub Zero, Kona Ice, or Dairy Queen.
If you decide to run an ice cream parlor, you may need more cash to get that done. However, running an ice cream truck will cost lower and give you more flexibility. You can also consider sharing a location with a business that only operates during the cold months, such as a holiday pop-up retail store or a cozy cafe. With $2000 to $10,000, you can conveniently start a business selling ice cream.
#2: Don’t Cut Corners – Don’t Do It
Whether it be on your location, capital, vision, or equipment – don’t cut corners. Try to follow through on every process. It may be hard now, but it will definitely pay off in the future. If you cut corners now, it might bring a huge fall to your business in the future. Don’t do it!
#3: Location Is Key – Have a Good Location for the Business
The location you choose for this type of business is paramount to the success of the business. So before starting a business selling ice cream, make sure you have a good location to run the business. Good location involves a place with good visibility, easy access in and out, and strong population density. So take your time to drive around your area to choose the perfect location. Don’t rush the process.
#4: Know Your Concept
There are different concepts to ice cream selling – and other products in the frozen world. From the opened water ice concept to the shake concept and plain concept, choosing the right concept is important. Therefore, understand what concept you think works well with your demographic and check which product is preferred in your location. Will you be having homemade products or wholesale? All these will come together to build a brand identity for the business.
#5: Never Compromise On Quality
Once you know what concept to serve your customers, you need to keep the quality high at all times. High-quality products will set you apart from your competitors and trust that your buyers will always be ready to pay for them. Regularly use fresh and quality products that will keep your customers coming back for more. Quality is also not limited to the products, it also includes how you service your customers. Create a fun, friendly, and safe environment that your customers will always want to be in.
#6: Understand the Paperwork and Permits of the Business
Starting a business selling ice cream will also require some paperwork – a lot of them. So start by making sure your business is licensed. Since you are serving food, you will be required to obtain some local and state health and safety permits. So check with your state secretariat office to know what licenses and permits you will need for your ice cream business.
#7: Don’t Use the Internet As Your Buying Source
That, of course, may come as a little inconvenience to some people. We know the internet is a tool of convenience. It makes buying super-easy – we are not disputing that too. The internet may be a great tool to get some information, but don’t use it for buying your equipment. It can be dangerous.
Your equipment is key to the quality of the product you serve and its performance will determine your success. Buying the right equipment will mean a lot when starting a business selling ice cream. So take time to do it right!
#8: Prepare For the Winter Months
The warmer months are no doubt the most profitable time for a business selling ice cream. If you will be operating your ice cream business in a region with cold weather, you will need to be prepared for a tremendous drop in sales and hence in profit during the winter. That means if you will be operating a brick-and-mortar business, you will need to make provisions for how you will pay your rent during the cold months.
So make plans to buffer the business at this time. This may include keeping fewer employees to run the shop at the time or offering different menu options such as soup or coffee. Just give them something else to enjoy during the winter months. It is a great strategy to keep your customers until the next spring when the business will pick up again.