Building an ice cream shop sounds like a fun and rewarding undertaking. I mean, you’re creating a store that will make you and others happy. What could be more fun than that? Having said that, establishing an ice cream shop is not a simple task.
Steps to build an ice cream shop are as follows:
- Create a Business Plan
- Pick a Good Location
- Choose Whether to Lease or Buy
- Decide on an Ice Cream Shop Concept and Branding
- Secure Funding
- Secure Licenses and Permits
- Set Up and Decorate Your Ice Cream Shop
In this post, I’ll guide you through the steps of building an ice cream shop. I’ll make things easy for you and give you some pointers. So, keep reading!
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Create a Business Plan
First and foremost, you need a business plan! You can’t just head on and start building an ice cream shop without a plan. This is because a business plan serves as a road map for your business. It walks you through each step of founding and running your business, assisting you in thinking through and detailing all of the main parts of how your ice cream shop will operate.
Basically, a business plan helps you in organizing the main aspects of establishing an ice cream store, particularly the budget and location. So, you have to make sure to create one.
Pick a Good Location
The following step is to choose a location for your location. And not just any place will do; you need a REALLY GOOD location. This is due to the fact that your business’s success may be decided by its location since it helps cater to your demands such as foot traffic and competitive advantage.
To find the ideal site for your ice cream store, you first need to examine the aspects that your business will require, most importantly foot traffic, convenience, and a lower cost. This will help you easily pick the location that best fits your business.
Shopping malls are the finest option for increasing foot traffic to your business. This is because it is one of the most crowded places. In fact, according to Statista, the busiest shopping mall in the United States is Ala Moana Center in Honolulu, Hawaii, which receives over 52 million visits each year. You can also consider building an ice cream shop near beaches since they also promise a large crowd.
In terms of convenience, you can consider locations that are easily accessible to your customers, have ample parking and guarantee a pleasant environment and relaxation for your visitors. Restaurant fronts and areas near parks are excellent examples.
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Choose Whether to Lease or Buy
After deciding on a location, you must determine whether to rent or purchase commercial real estate. This decision is greatly influenced by your budget and long-term goals. For example, if you have a limited startup budget, you may look for a lease to get your business up and running. However, if you have the funds, you can go ahead and purchase commercial real estate.
To help you decide, below are the pros and cons of renting and purchasing a property for your ice cream shop:
1. Lease
| Pros: Access to even more liquidity Monthly fixed cost Tax deductions for real estate expenditures Freedom to leave the property | Cons:There is no equity or advantage from appreciation. Inability to generate passive income Space control is limited. Rent can be really expensive. |
2. Buy
| Pros: Property equity grows over time. The worth of the asset rises with time. Interest, depreciation, and non-mortgage costs can qualify for tax advantages. Full control of the property. | Cons: A deposit is required upfront Difficulties obtaining finance Insurance coverage is essential. Risk of losing liquidity or money |
Decide on an Ice Cream Shop Concept and Branding
After determining whether to buy or lease commercial real estate, the following step is to develop a concept or brand image for your store. This includes the brand name, design, and concept that best represents your ice cream delicacies while also helping your business stand out from the competition.
It is not difficult to come up with a name for your ice cream brand. You only need to come up with a distinctive and one-of-a-kind name. For example, “The Sweet Destination.” As for the design, it can entirely depend on the brand and personal preferences.
In terms of concept, you can start by researching or drawing inspiration from successful ice cream shops with outstanding concepts, such as Halo Top and Baskin Robbins. Halo Top is well-known for its healthy ice cream options, while Baskin Robbins is well-known for its 31 Flavors concept, making them ideal examples of ice cream stores with the finest concept and branding.
Secure Funding
You’ll need to get money now that you have a rough idea of how much your ice cream shop will cost. And acquiring funds to launch your ice cream shop is a difficult task. You’ll have to overcome hurdles ranging from paperwork to checking credit before you can qualify for funding.
In general, there are several successful ways to acquire funding for a startup. Having said that, your best choice is to apply for a Small Business Administration loan (SBA). This is because they provide the greatest loan programs, such as Microloans for start-ups. Their microloan program assists small enterprises by providing loans of up to $50,000.
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Secure Licenses and Permits
Before you set up your ice cream shop you must ensure that you have obtained all of the appropriate permissions and licenses. This is because licenses will legally safeguard your business and can help increase brand credibility.
These are the typical licenses and permits needed for an ice cream shop:
- General Business License
- Health and Safety Permits
- Food Handler’s Permit
Set Up and Decorate Your Ice Cream Shop
After obtaining funding, licenses, and permits, as well as settling on a concept, you are now ready to set up and design your ice cream business. This involves purchasing all of the necessary ice cream equipment and supplies, furnishings, and decorations like signage and wall décor.
There are no tight rules when it comes to setting up and decorating an ice cream shop. All you have to do is make it attractive, eye-catching, and one-of-a-kind. You need to make your shop where customers can relax while enjoying your ice cream treats.
Conclusion
Overall, the steps to building an ice cream shop are as follows: 1) Create a Business Plan, 2) Pick a Good Location, 3) Choose Whether to Lease or Buy, 4) Decide on an Ice Cream Shop Concept and Branding, 5) Secure Funding, 6) Secure Licenses and Permits and 7) Set Up and Decorate Your Ice Cream Shop
How To Build An Ice Cream Shop
Frequently Asked Questions
According to a poll released by International Dairy Foods Association and Research America, the top five flavors among ice cream manufacturers and scoop stores are 1) Cookies N’ Cream, 2) Vanilla, 3) Chocolate, 4) Mint Chocolate Chip, and 5) Strawberry.
Some ice cream trends that businesses are looking into in 2022 are 1) Health and Wellness Ice Cream Treat, 2) Plant-Based Options, 3) Lactose and Dairy-Free Options, 4) Ice Cream Novelties, and 5) Creative Flavor Combinations.
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.