Today I present you a complete business plan for setting up an ice cream parlor. (Please note that the complete reading will take about 10 minutes.)
Business Description
Fundamentally, the business role consists of the sale of ice cream of different flavors as well as refreshing drinks under the concept of a retail store (or kiosk).
For this, the distribution will be strategically based on the acquisition of a ice cream franchise with a company with extensive experience in the market such as … (here the name of the franchise to consider) who will provide and regulate the standards of preparation, presentation and quality of the product.
Target market
Our product will be mainly aimed at those people who walk around our store, which will be located at the following address (location address), our product being especially attractive to children who are the main consumers of ice cream.
It is also expected to reach all those people who for work reasons or for simple recreation require a refreshing drink on the way.
If your business will be located in a shopping center or with enough parking area, then people who travel by vehicle can be considered as a potential market.
Competition
According to the visual investigation carried out, there are in the near surroundings less than 1Km. away only __ store (s) with characteristics similar to ours, distributing the ice cream brand X. And in a greater distance range, in an average of 3 km around there are some __ similar ice cream parlors whose level of care as verified corresponds to: (good, bad, regular).
It was found that the other stores that will compete with our business have a low level of demand on Monday and Tuesday, a level of regular clientele on Wednesday, Thursday and Friday and a high level of sales on weekends, being Saturdays and Sundays the days preferred by customers for the consumption of our product.
Business Location
Our business will be located at the following address __________________________.
The recommended measures for a kiosk are: 4 to 6 m2
The recommended measures for a store are 20 to 30 m2, considering the possibility of offering tables and chairs to customers for local consumption of the product.
The estimated rent for a kiosk depends on the location, but a range of:
US $ 100 to $ 200 if it is a neighborhood or residential area
US $ 200 to $ 300 if it is an accredited shopping center and depending on the visibility and traffic of people passing through the point
For a store, consider equivalent values depending on the size in square meters of the premises to be rented.
Schedule
Considering that the days of greatest demand in the ice cream parlor are weekends, the following opening hours are established for the public:
Monday to Friday, in the afternoons from 2:00 p.m. to 7:00 p.m.
Saturdays and Sundays all day from 10:00 a.m. to 7:00 p.m.
Consideration should be given to the possibility of special hours requirements in shopping centers if they are located there.
Business Management and Operation
The business will be personally attended by its owner during the week and by a contracted collaborator for the weekends. The owner will have the responsibility for decision making and will oversee the proper business operation During the weekends, they should consider visiting the business on Saturdays and / or Sundays as one of their functions to ensure that it runs properly.
Additionally, the owner will function as administrator having to take care of important aspects such as: product purchases (inventory), control and payments of services, administration of all accounting aspects that includes tax and billing payments, premises payments and salary (s).
Possible risks
Among the risks to which the business and its operation could be exposed are:
- Few clientele: if the location of the same is not chosen properly or if the conditions of access to the premises are not adequate
- Insecurity: also depending on the location of the business and the opening hours.
- Few sales: if product inventories are not properly managed and the customer will not find what they are looking for.
- Few sales: if the personalized attention provided by the owner and the dependents was not of excellent quality
- Financial risks: if the finances of the business were not managed correctly. For this, it is essential to have a budget and to respect it.
Financial Plan (in us $)
Origin of funds initial investment:
Starting capital available in cash: $ 1500
Initial capital from credit: $ 2,500
Capital for initial investment: $ 3000
Use of funds (Initial Investment)
Franchise cost: $ 2000 *
Local rent deposit: $ 150
Initial investment in product: $ 200
Furniture: $ 200
Working capital: $ 4000
* Estimated average of the different ice cream franchises available in Latin America that regularly includes: right to use the franchise, training, promotional support, decoration and painting of the premises and an initial amount (variable) in product. Working capital refers to an amount of money that serves as business support until it is self-financing and begins to generate profits. Banks usually use this data as a reference of the potential of the business and usually do not grant loans when the projection of the same corresponds to very long terms.
Fixed monthly operating expenses budget:
Services (water, electricity): $ 75
Local rent: $ 150
Investment in product $ 500
Promotion and Marketing $ 75
Administrative expenses: $ 200
Bank Credit Payment: $ 100
Maintenance $ 50
Depreciation $ 50
Wages $ 150
Total: $1350
Financing Plan (Credit)
To support the business, a bank loan of US $ 2,500 is considered, which will be paid over 36 months with an estimated interest rate of 15% with repayments of about $ 100 per month.
Estimated Sales (Daily Average)
The following are estimated sales with the accredited business with a minimum of 6 months of operation. At first, as the business becomes known, these numbers can vary drastically.
About 40 ice creams or snows a day worth $ 0.15 total $ 6.00
About 20 flavored ice creams worth $ 0.50 total $ 10.00
About 20 medium ice creams worth $ 1.00 total $ 20.00
About 10 large ice creams worth $ 1.50 total $ 15.00
About 2 quarts of ice cream worth $ 3.00 total $ 6.00
About 2 half gallons of ice cream worth $ 5.00 total $ 10.00
About 1 gallon of flavored ice cream worth $ 8.00 total $ 8.00
Approximate Daily Sales Total: $ 75.00
Weekly Sale Total $ 525.00
Total monthly ice cream sales $ 2100.00
Total monthly sale of soft drinks $ 200.00
Approximate net profit of the business:
Total monthly sales: $ 2300.00
Total operating jacks: $ 1350.00
Profit: $ 950.00
Annex 1 – Competitive advantages of acquiring a Franchise
Of course, the numbers previously raised may vary depending on a series of variables related to operating costs, but especially with the selection of the franchise to choose since the prices, variety and quality of the product vary from one brand to another.
However, among the main advantages of working with an ice cream parlor franchise we can mention:
- Endorsement of a reputable brand
- Business knowledge (know-how)
- Experience
- Guaranteed product quality
- Personalized training
- Marketing and image support
- Growth opportunities
Annex 2 – Strategic aspects:
The consumption of ice cream is usually a family activity, very pleasant that for the customer represents “enjoying” and that is precisely where the success or failure of those who operate this business lies.
- A kind and careful attention is required
- Children should be cared for with special care
- Cleaning of the premises
- Promptness of service
- Prices appropriate to the socio-economic level of the sector
- Variety
- Pleasant atmosphere
The present business plan is a reference document offered to the readers of 1000 Business Ideas as such, of course, as in any business there are many specific factors for each case and for each proposal that must be evaluated, analyzed and raised in detail and it is finally the entrepreneur who has in his hand the power to decide how, when and in what way he intelligently invests his capital. If it is useful to you or you want to provide some additional useful detail, I would love you to share a comment.
Other related topics:
