How To Start An Ice Cream Business From Home

Do you want to sell one of the world’s most popular desserts from the comfort of your own home but don’t know where to begin? I got you covered!

These are the steps you can follow to start an ice cream business from home:

1. Learn the Basics of the Ice Cream Business
2. Analyze Your Competitors
3. Create an Excellent Ice Cream Business Plan
4. Set Up a Budget 
5. Obtain the Necessary Permits 
6. Decide Which Type of Ice Cream to Offer
7. Price Your Products
8. Plan a Distribution Channel 
9. Promote Your Ice Cream Business

These are simple and practical steps that anybody can do. So, keep reading if you want to establish an outstanding ice cream company from home. 

Learn the Basics of the Ice Cream Business

You can’t just walk into the ice cream industry untrained and unknowledgeable. That could set up your ice cream business for failure

That is why, at all costs, you should have a grasp of the ice cream industry. For example, you must be well-informed about ice cream varieties and flavors. This will help you decide what flavors you’ll offer. 

In the ice cream industry, you need also to be aware of the following:

• Production – Be familiar with the ice cream manufacturing process. Since you are doing this from your home, you need to be knowledgeable of the machine and ingredients you will be using.
• Ordering – Know where to source your materials and ingredients. Additionally, you need to set up how customers can order your products. 
• Marketing – Know the marketing trends. It will help you compete with others, including well-known ice cream companies.

35 Ice Cream Business Name Ideas

Analyze Your Competitors

Another step to take before setting up an ice cream business at home is analyzing your competitors. You will compete with big names like Ben & Jerry’s and Tillamook. So, you have to study your competitors and devise a strategy to stand out. 

You can conduct a competitive analysis. It is an evaluation of your competitor’s strategies versus your own, weighing their benefits and drawbacks. This will help you stay on top of them.

Here are the steps in conducting a competitive analysis:

1. Identify Your Competitors – Know your competitors. You need to list them down according to these 4 kinds: 

• Direct Competitors – They are essentially the ice cream shops in the same geographical area as your home business.
• Potential Competitors – They are rivals from outside your region who sell similar items and target the same market as you.
• Indirect Competitors – They are businesses in the same industry but offer distinct goods and services. Vegan ice cream vendors, for example, may be indirect rivals to your ice cream business. They are in the same industry, but their target markets are distinct.
• Future Competitors – They are potential competitors, but are far more prepared and likely to join your market. This might be a larger national ice cream business that hasn’t entered your local market yet.

2. Obtain Information on Your Rivals – Once identified, you need to evaluate them by gaining information regarding their pricing, products, partnerships, and promotion. 
3. Examine their Strengths and Weaknesses – Next, you need to rank your competitors based on their pricing, products, partnerships, and promotion. You need to know which part they excel at. 
4. Establish Your Competitive Advantage – After collecting all the data, you must identify which components of your business outperform your competition. You need to ask questions like, “are my products better?” 

These are the necessary steps to take that will help you understand your competitors and strategize your business from home.

Create an Excellent Ice Cream Business Plan

After you’ve learned about the ice cream industry and your competitors, developing an outstanding business plan is next. This will boost your ice cream shop’s chances of success. 

According to an article, having a business plan increases the chances of growth by 30%. Additionally, 70% of businesses that survive for five years follow a strategic business strategy.

To help you get going, you can refer to Small Business Administration’s business plan format. According to SBA, there are two business plan formats:

1. Traditional Business Plan – This format is more comprehensive, requires more time to write, and is more thorough. This is perfect if you want to attract investors. 
2. Lean Startup Format – This format uses diagrams and only a few parts to explain your business’s value proposition, infrastructure, customers, and funds. It is perfect if you want to start your business right away. 

Set Up a Budget 

After you’ve developed a solid business plan, creating a budget comes next. Since you are establishing an ice cream business from the comfort of your own home, a large expenditure is not required. 

Here are some things you need to consider for your budget: 

• Equipment – Depending on the size of your business, you will need to set aside money for equipment such as an ice cream maker. You can check The Spruce Eats’ list of best ice cream makers. 
• Packaging – You have to set aside a budget for your ice cream cups, cones, scoops, and packaging. And if you are planning to ship ice cream, you need to save for insulated packaging and even dry ice. 
• Marketing – You need to prepare a budget for promoting your ice cream business. To give you an idea, the standard cost of social media marketing is $750 per month. 

Obtain the Necessary Permits 

Of course, you can’t start an ice cream shop from home straight away. You will need to examine the local city and state regulations for the majority of permits and licenses.

Here are some of the usual permits for an ice cream business from home:

• Business License – In the United States, most businesses require a business license. You can secure one by  Googling, Business License + Your State.
• Food Handler’s Permit – You might go through food safety training and secure the proper certifications to keep consumers safe and healthy. To obtain this, contact your state’s health department or your county’s health safety organization. 
• Sign Permit – To increase your business brand’s awareness, you might need to set up some signs. Before you can set up one, you need to check if you need permits. For further details, you can go to the website of your local municipal government.
• Resale License – If your state taxes the end user, you’ll most definitely need a sales tax resale license. You can check in with your state department to get one. 

Other than these licenses, there might be other licenses that you need depending on your location. So, make sure to check with concerned government agencies to process and get your business permits and licenses. 

11 Small Ice Cream Shop Ideas

Decide Which Type of Ice Cream to Offer

The next step is to select what kinds of ice cream you will sell. This includes the flavors and toppings you’ll offer on your menu. Since you are planning to operate in your home, your ice cream menu might be limited.

You can choose from these types of ice cream:

• Frozen Yogurt
• Gelato 
• Sorbet 
• Sherbet
• Soft Serve 

It is also important to have an incredible set of flavors. You can go with all-time favorites like chocolate, vanilla, and strawberry or you can try some unique combinations. If you have one, you can sell a signature flavor. 

Price Your Products

The next thing you should think of is the price of your products. The cost of handmade ice cream may vary depending on the flavors, ingredients, and quantity. 

You can either match or undercut your competition’s price. Though, on average, handmade ice cream costs around one-third the price of store-bought ice cream.

To help you decide, you can use either one of these pricing strategies:

• Value-Based Pricing – a pricing approach that bases prices largely on the perceived value of a product by the consumer. For example, you can price your best-sellers higher than your other products. 
• Competitive Pricing – the process of deliberately determining prices for your products or services based on market competitor pricing. 
• Cost-Plus Pricing – a pricing strategy in which a predetermined percentage is added to the cost of producing one unit of a particular item. 

Plan a Distribution Channel 

The most challenging aspect of running an ice cream business from home is distribution. Since your space and resources are limited, you can expect to have a hard time distributing and promoting your products. So, you have to make sure that you have a concrete plan for a distribution channel. 

To start, you can refer to these 2 types of distribution channels:

1. Wholesalers – Wholesale distributors are in charge of purchasing items in bulk, keeping them, prepping them for sale to clients, and finally distributing them. 
2. Retailers – Retailers are often wholesalers’ clients, and they provide elevated customer support to end users.

Best Ways To Improve Your Ice Cream Business

Promote Your Ice Cream Business

After you’ve established your home-based ice cream business, the next step is to market it.  Social media marketing is the ideal marketing method for your business.

According to an article, consumers who have had favorable social media encounters with brands recommend them to 71% of their social connections. So, you should consider establishing a positive social media presence. 

Additionally, this kind of marketing can also help increase sales. According to an article, product research is one of the reasons why 76% of internet users utilize social media. Also, almost 40% of American internet users between the ages of 18 and 34 have purchased a product via social media.

All in all, using social media marketing can help your home-based ice cream business in terms of brand awareness and sales. So, you should consider using it to promote your business. 

Conclusion 

In conclusion, these are the steps in starting an ice cream business from home:

1. Learn the Basics of the Ice Cream Business – You need to be knowledgeable ice cream business. Do some research about aspects like production and marketing. 
2. Analyze Your Competitors – You need to conduct a competitive analysis. 
3. Create an Excellent Ice Cream Business Plan – Create an excellent business plan by using SBA’s business plan formats. 
4. Set Up a Budget – Create a budget for marketing, equipment, packaging, and more. 
5. Obtain the Necessary Permits – Check with your local agencies and secure all the necessary permits.
6. Decide Which Type of Ice Cream to Offer – Determine which types, flavors, and toppings you will sell. 
7. Price Your Products – Set the price of your products by using the right pricing strategy. 
8. Plan a Distribution Channel – Decide how you will distribute your ice cream products. 
9. Promote Your Ice Cream Business – Use social media marketing to promote your home-based ice cream business. 

Gelato Shop Business Plan Tips

Frequently Asked Questions

To learn more on how to start your own ice cream/gelato business check out my startup documents here

This blog post is provided for informational purposes only. The information contained is not intended to constitute legal advice or to substitute for obtaining legal advice from a qualified attorney.

Hi! I am Shawn and I am a happy individual who happens to be an entrepreneur. I have owned several types of businesses in my life from a coffee shop to an import and export business to an online review business plus a few more and now I create online ice cream/gelato business resources for those interested in starting new ventures. It’s demanding work but I love it. I do it for those passionate about their business and their goals. That’s why when I meet a ice cream/gelato business owner, I see myself. I know how hard the struggle is to retain clients, find good employees and keep the business growing all while trying to stay competitive.

That’s why I created Ice Cream Business Boss: I want to help ice cream and gelato business owners like you build a thriving business that brings you endless joy and supports your ideal lifestyle.