Ice Cream Shop business plan for starting your own ice cream shop
The primary purpose of this ice cream shop business plan is to highlight the parameters by which principals will continue to build, develop, and operate an ice cream shop, which owns a prominent location.
Kevin D, the managing director of the ice cream shop, and the owner of the Ice Shop Company, Inc., are confident and eager to find a larger store within Texas (United States).
Kevin D, The American Ice Shopping Company, Inc., and owners Marry, and Evan Dwyer hope the store will be a success among other national stores already committed to doing business in Texas.
How to open an ice cream store
To open an ice cream store, it is very important to have a parking space. Buying ice cream is usually the customer’s impulse decision. Therefore, an ice cream shop should be easily accessible and have adequate parking. Find a location near businesses such as markets, baby clothing/toy stores or family restaurants.
Kevin D (owner), of the Ice Cream Shop, this single retail store will sell the ice creams and related products, all of which will be made by the owner under its own name.
Proceeds will be primarily from the sale of ice cream and related products consumed within the Davis Plaza. Owners will also sell ice cream cakes, traditional cakes, birthday cakes and cola products. Sales in the first year are expected to reach $74,890.00 and will grow at an average annual rate per year for the first five years of operation.
How to start a business?
In this Ice cream startup business plan, we expect the initial required costs of $75,000 to $100,000 based on the cost of starting the ice cream shop and other liability. We are not expecting for the loan as of now. Therefore, we will be bearing the startup cost initially.
How to implement business management?
The principals, themselves, will manage this ice cream business plan. A qualified person will be the hand-in-hand manager for the day-to-day operations of the shop, with the help of the department. The manager will have the following responsibilities and perform the following duties:
Customers of ice cream shop
Without any customers, it doesn’t matter how big your ice cream is. Customers are the most important thing for any business to succeed. How to promote your new ice cream business?
Well, there is the old-fashioned way and the modern technological way. You have to do both!
What target of this business?
The main goal of the ice cream startup business plan is to offer products related to ice cream advertising to large and small stores at regular national and international discounts on regular wholesale-purchase orders at competitive rates. We want to stand out from the other shop owners and offer a wide range of products that surpass our competitors, thus making our ice cream business plan a more attractive option.
The company will be owned by Kevin D and one or two additional partners. Currently, no investment has been received from the other owners. However, it will hold a majority stake in the company under Kevin’s control. A buy/sell agreement with other investors will be established when a limited liability company (LLC) is formed to allow an exit strategy for one or all investors.
Business Plan for Investors
- Plan your business
When starting an ice cream shop, the business/startup, the shop owner will involve a consultant to help implement a business plan early on. Ice cream shop or store Expenditure Budget / Funds for a Startup – Comes from legacy and business credit.
- Define your brand
The ice cream shop’s measuring stick will be its unique approach to how to start a ice cream shop for personal customization based on customer satisfaction and customer needs. No customer is the same; they will not be treated generously. We are not only another shops, we
- How to advertise and market a business
In the business plan for ice cream store, will be very involved in the promotion and marketing of the social media market. Digital marketing is at the heart of any successful ice cream business plan today. Instagram, Twitter, Facebook, and LinkedIn will be the main target areas. A full-time digital marketing expert will be hired to run this page of the business to maintain its presence online.
- Establish web presence
A new website is currently under construction to engage the most effective web presence. It engages customers and gets new ones. Customers can order online as well as go to the store. Thus, it attracts a large customer base. Staying up to date with Google Analytics is key to maintaining a high search level.
The owner of the ice cream shop is a young man Kevin D who has a career in university. Kevin D comes from a family that has been in the ice cream and custard/food industry for two generations and dreamed of one day owning his own ice cream shop business. His knowledge of the field of food industry is immense, and his effort will be greatly appreciated.
Why the ice cream shop is being started
Coming from a long line of family business owners, he always knew that he wanted to create his own identity in life, to be his own boss, to create his own new company from scratch. With this in mind, the university was her starting point. They need to gain more knowledge than she already has to ensure the success of her ice cream business plan.
How the ice cream shop will be started
A lucky legacy enables the birth of an ice cream shop with a small business loan and the business plan for ice cream store. Besides, help from a business partner, consultant, and family business owner, the business will be operated.
In the sample business plan for ice cream shop, the owner is highlighting that the customers can choose the taste of frozen custard (vanilla, chocolate and one or two additional daily flavors) and then mix it with the Italian ice flavors of their choice (more than 30 flavors are offered daily to the customers). In addition, the customers can enjoy their desserts in a warm, soothing atmosphere like the upstairs of the ice cream shop.
- It tastes rich because it is made with an egg base.
- Low in fat and sugar than most premium ice creams
- Smooth and creamy texture.
- Taste of antique home (made fresh every day.)
- High density (it fills more than soft service due to low wind gusts.)
- Italian ice
Fruit-flavored ice cream with a smooth texture (very small ice crystals)
- A sweet and fat-free frozen product
- Made without milk or egg products
- Made with real fruit concentrate
- The consistency of a slash
Marketing Analysis of Ice Cream Shop Business
In recent 4 to 5 years, the ice cream and frozen confectionery industry have seen significant growth. Much of this growth has come in the premium and super-premium ice cream segment. Kevin’s Ice cream shop will serve products that come in the premium ice cream segment. Premium and super-premium products are commonly found in scoop stores such as Goldstone Creamery, Ben & Jerry and Prince Bucklers.
- 13% over 65 Years
- 45 to 25% between 45 to 64 Year
- 25% from 25 to 45 Years
- 12% from 18 to 25 Years
Customer groups for Kevin’s Ice Cream shop will be:
- 18-24 year olds
For the ice cream business plan project our market research identifies approximately 38,000 customers in the Texas area within this age range. The target customer is going to be the central part of “Ice cream shop”: half college students and half locals. They tend to spend more on expensive products than they buy.
- First families
These are the children who grew up in the Texas and nearby population. Most of their children are not yet teenagers. By targeting this group, we can not only build a large-scale instant business but also build long-term clients in children.
Increasing our downtown location and customer base will attract customers outside of our target groups, including those attending Saturday market, coming to town to shop, or attending plays or music events. We estimate that this third market segment of about 3,160 people (1% of the total local population) is conservative.
16-24 year olds age group customers go out for ice cream more than any other age group. Among the 16-24 age group, the “Texas” location is important because they occupy a large area around the store location. They are accessible through music, mostly R&B, and they prefer valuable products that are compatible with our product offering.
What is the target Market?
The “first families” were chosen because of their growing population, number, and desire to go out frequently for ice creams. Their lifestyle is particular because they are the most accessible group to market. They all have young children, so strategies towards children or child-related markets can be very useful in testing and developing sales.
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In the ice cream businesses, we plan to reach the first families with their children. Kevin’s Ice Cream shop will sponsor a small league ball team and provide free ice creams on days when players win a game. This will draw them and their families to the store.
How to keep customers coming back?
We also invite local elementary schools to visit our facilities. We will teach children how to make ice creams with various flavors. We allow each child to create their work; we hope they enjoy their time in our scoop shop so much that they wish to bring their parents back.
What will be the average receipt of the business?
The average customer receipt will range from $ 10 to $ 100, depending on the size of the business ordering the ice creams. Items purchased in bulk expect an average of $ 1000 receipt.
Our prices are very low so that even middle class people can buy such products and get it easily. Therefore, our goal is to include all kinds of customers who want to have an unique taste and a variety of ice creams.
Our online presence will increase our marketing online in the form of a professional website compatible with mobile phones. We direct traffic through our site by using/delivering an add-on to our customers. It will be essential to create regular food-centric content with keywords that are guaranteed to get high marks in search engines. We post the best offers on social media sites like our Facebook page to engage our followers and buy and click on our website. Using Facebook and Instagram ads for businesses to promote our products will be part of our implementation in Offset.
Kevin’s Ice Cream Shop has two competitive analysis points:
- Rich and creamy, high class, low fat, frozen desserts.
- Our friendly, neighborly attitude to our customers.
Both of these selling points help to achieve the overall goals of a consistent customer base with continuous sales. Our focus on paying personal attention to our customers, and engaging in local events and clubs will set us apart from our competitors.
Our sales strategy is primarily focused on delivering the highest quality products and services to our target customers. Once a customer enters our shop, it is our job to make sure their experience with us is enjoyable. Product offers and prices are clearly posted behind the counter, and scoopers are educated about the products and processes involved in each, so they can answer all customer questions.
The Ice cream shop business may not be able to take a profit margin in the very first month, but our plan is to do so in order to mitigate that plan quickly. However, in terms of sales, we expect a rapid increase in the first four weeks of the store.
For the First and second years in a row, we expect a total increase of 36-40% in sales due to a modest annual sales volume and the dramatic difference between the monthly average of the opening months and their peers in the second year. In the third year, we expect a conservative 16% increase in sales revenue.
In the ice cream business proposal, our sales forecast is mainly determined by the foot traffic in the area, the season of the year and the current weather. The sales for the first year will be based on this plan are approximately $70,000.00 to $80,000.00 and $80,00.00 to $90,000.00 for the second year and $90,000.00 to $100,000.00 for the third year.
We expect seasonal hiring of part-time employees. Since we do not offer any benefits to our employees, full-time employees will not be hired in the first year.
We expect two or three part-time employees to start working in May, except for two or three employers. Our two or three employees will share the hours per week because we expect the paid employee to work an average of 5 hours a day, seven days a week.
What staff needed to open a company?
For opening an ice cream shop or company the basic staff will be sufficient, which are as below-
- Part-time employees
- Owner – Kevin D
- Other Owner(s)
Average Salary of Employees
How much costs average salary for all employees?
To start an Ice cream shop business, the following table describes the average annual salary of each employee and the total salary for the next 3 years –
|Year 1||Year 2||Year 3|
|Owner – Kevin D||$41,000||$47,150||$54,223|
The growth is expected to increase from the second year of the owners of Kevin D’s ice cream shop. In addition, there will be a need of some extra fund to maintain the required inventory levels and to purchase additional inventory if sales are higher than expected. No other immediate financial needs are expected.
An important assumption is the initial sales forecasts. We made this estimate based on an hourly average found at a local ice cream shop. We are significantly reducing the number due to the weather, our unknown brand name, and foot traffic. These ratings are very conservative, and we expect real sales to surpass them immediately.
The gap-equivalence analysis shows that Kevin’s Ice cream shop has sufficient sales strength to be viable. Our breakpoint is $$6,719 per month. We estimate our average selling price to be $2.50, which is the approximate selling price for medium-sized ice cream at our retail outlet.
Projected Profit and Loss
In the first year, we expect a Profit of $10,000 to $12,000. This is mostly due to losses incurred in the opening months and continued pay and other expenses. Next year, we expect to see a steady and steady profit level of $17,000, to $18,000 and we expect our profit to rise to $27,000 to $29,500 in the third year.
The initial months’ profit we make can sustain all our operations and give us enough dividends to invest in the future growth of the ice cream business.
As already mentioned, we may be at a loss for the first-months operations, but we expect to touch the profit base within 3 or 4 months of operation so that our annual profits can recover all the losses.
Gross Margin Monthly
In the first 5 to 6 months, the profit margins will be negative; however, we expect a thicker margin base as profits increase.
Gross Margin Yearly
Annual margins will be better in the upcoming years. Also, this will help us expand our business and reach a more extensive customer base.
Projected Cash Flow
Kevin’s Ice cream shop expects to manage the cash flow in the first year with the help of cash and cash reserves from our first year loss of $17,000 to $18,000.
Projected Balance Sheet
As stated earlier, owners insist on long-term growth in business value rather than short-term returns. Our projected balance sheet shows a decrease in net worth from $6,000 to $7,000 in the first year. However, starting from the second year, we expect our net worth to increase to $5,000 to $6,500 gradually, and by the end of the third year, the value of the company will increase to $21,000 to $22,000.
Our total margin is significantly higher than the industry average. We believe this is because the vast majority of the industry is made up of large-scale manufacturers using economies.
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