If you are thinking about opening an ice cream / gelato / frozen yogurt store, you probably have many questions. Some of those questions may include:
• How much money do I need?
• What kind of ice cream equipment do I need?
• How much money can I make the first year?
• What kind of licenses and permits do I need?
This article will try to answer those questions, although in reality, there are no set answers. It all depends greatly on your location, budget, business skills, etc.
First things first though, if you are considering opening a shop, make sure to write a step-by-step business plan to guide you along the way. Your store business plan should include information about your market and your competitors. Think about things like who you are trying to target (your market) and how your shop will differentiate from your competitors (you must have a strong competitive advantage). Other things your business plan should include are your marketing / advertising strategy, how you'll price each product, how many employees you plan to have, etc.
Another advice would be to visit every shop in the area and study things like their layout/design, menu, etc. Also, if you don't have any experience in the field, try getting a part-time job at a local parlor.
Now, the answer to your questions:
- How much money do I need to open my shop?
It really depends on the kind of ice cream/gelato store you would like to start and your budget. You can possibly buy a franchise or an existing small location for around $50,000 or start your own from anywhere between $100K and $500K.
- What kind of equipment do I need?
Depending on the type of shop you want, you could start with a simple ice cream dipping cabinet or have other ice cream equipment like a soft-serve machine, batch freezers to make your own ice cream/gelato/sorbet, or the amazing Pacojet to make all kinds of frozen-dessert treats. Again, it really depends on your budget.
- How much money can I make?
The best way to find out the answer to this question, is to write a specific business plan with a profitably section. Also, Electro Freeze has a special website called Ice Cream Academy which offers several courses to help your store become more profitable.
Also, this great profitability calculator can give you an idea about how much money you can make on items such as soft-serve, shakes, and slushies, per day, weekly, monthly, or per year.
- What kind of licenses and permits do I need?
Start by visiting your city's business license division to find out which city licenses you'll need. Then visit your state's government website for information about state permits. Lastly, through the IRC's website you can apply for a federal tax ID number. If you need help, hire a lawyer, and/or accountant to help you during this, sometimes confusing stage.
Lastly, we have put together a group of resources for you:
NICRA: A good place to visit is the National Ice Cream Retailers Association, a non-profit trade association of ice cream retailers, wholesalers, and suppliers to the frozen dessert industry.
Ice Cream Academy: Offers courses designed for entrepreneurs who desire to enter into a high-profit business, those who wish to explore a new career, ice cream shop and restaurant owners who want to increase profits, and business owners who want to have the best equipment to efficiently produce their product.
Score: Free small-business mentoring and training. They offer several services such as writing a business plans, market and competition research, etc.
Small Business Administration: Information resource for small businesses, small business owners, and prospective business owners.
