While it’s true that ice cream is a season-dependent business, it remains a lucrative venture. Sure, it has risks and drawbacks, but every business idea has pros and cons. You just need to find ways to tweak the setbacks to your advantage. If you’re hesitant whether ice cream is a good business or not, here are 5 reasons to consider selling it.
Selling ice cream is a good business because it’s profitable, flexible, requires small startup costs, has a high gross margin, and has a broad target market.
It’s Profitable
The ice cream business offers good profits due to its high demand. Statistics report that the ice cream market was valued at a whopping $68,052.20 million in 2020 and is forecasted to increase up to $122,051.10 million in 2031- an 80% increase due to the global need for ice cream. Just by looking at the market trend, you’re quite secure that it will remain a highly favored commodity in the coming years.
The game-changer in this business is the quality of your ice cream products. If you want to retain your patrons and keep generating new walk-ins for continued profit, make sure to offer them only the best-tasting ice cream that will stand out among your competitors.
To sustain profitability, it is crucial to invest in durable and high-quality machines and equipment because these are your money-makers. Proper maintenance and regular cleaning also help in the longevity of your machines, so allot time and money for it. Remember, once it shuts down, which commonly happens at an unexpected time, your business operations will stop.
Invest in high-quality raw ingredients for your ice cream products to impress your customers. The initial challenge is how to convince customers to try your products. You can offer free taste, use attractive flyers, boost your shop’s social media visibility, and post creative adverts on public boards during or before the grand opening. It’s easier to gather customers once you’ve built your network of patrons, especially if your product is truly delicious.
4 Main Target Markets For Your Ice Cream Shop
It’s Flexible
An ice cream shop is a flexible business. You can start your it in a van, in a cart, at home, or at a physical store. Ice cream business gives you the freedom to decide where you want to start depending on your starting capital, target market, your availability, and preference.
You can also start an ice cream business as a side hustle on top of your full-time job. You can either set your business hours after your 9-5 job or you can hire employees to look after your business while you’re working. With technology, you can manage your business remotely. For stay-at-home moms, they can also start an ice cream shop business from home on a pre-order basis where customers will place their orders and set a delivery or pick-up schedule. That’s how awesomely flexible this business is.
10 Ways To Sell Ice Cream In The Winter
It Requires Small Startup Costs
The ice cream business is perfect for start-ups that prefer bootstrapping, rather than taking out loans because it requires a small start-up cost. Your starting capital depends on the type of shop where you want to sell your ice cream products (van/truck, cart, stall, at home, or in a physical store). You also need to consider the number of ice cream flavors, toppings, and other desserts you want to sell since it will take a toll on your starting capital.
Ice cream is also easy to maintain and less risky since it’s a frozen product. You don’t have to worry about spoilage and not being able to sell all your stocks within the day because it has a relatively long shelf life. To ensure that your ice cream will not spoil easily, keep it frozen at all times at a maintained temperature. Avoid storing them in areas where the temperature fluctuates because it will affect your product’s quality.
Additionally, the raw materials and ingredients needed to create ice cream are relatively affordable. Almost all ingredients are the same except for the flavoring and toppings.
High Gross Margin
The estimated gross margin of ice cream goods is around 40% which is significantly high compared to other business ventures. Its high gross margin will allow you a quick return on investment, expand your business in a short time, and manage your expenses efficiently.
Ice cream ingredients and materials are low-cost too. If you opt to resell pre-made ice creams, you can get them for under $.10 per ounce and sell them from $.25-$.50. Depending on your location and the demographics of your target market, you can add some premium toppings and sell them at an even higher price.
What To Do With Leftover Ice Cream
Broad Target Market
One of the biggest advantages of this lucrative business is that its target market has no age limit. Kids, teens, adults, and seniors love ice cream and that’s an established fact. Your target market is broad, and anywhere you decide to put your ice cream shop, you’re sure that most of them would love to try your products. Be creative, be innovative and be bold in selling your ice cream products.
Conclusion
Profitability, flexibility, small startup costs, high gross margin, and a broad target market are just a few reasons why selling ice cream is a good business. There may be other factors that you need to consider but knowing these perks of the ice cream business will give you the upper hand in countering potential challenges.
There’s no easy way to start a business or a custom-tailored guideline that knows all the answers to your hesitations. You will only understand the rewards and downsides of an ice cream business once you’re in it. Our guides serve as pointers to help you decide, but the choice is yours. Take the risk and reap the rewards!
8 Things You Can Do With Your Ice Cream Shop In The Winter
Frequently Asked Questions
The two key goals of an ice cream business are to make your customers happy and generate profit. It’s a rewarding business where you get to serve happiness to people while earning decent revenue. It’s a win-win situation for both the entrepreneur and the consumer.
The greatest risk of an ice cream business is that its demand is season-dependent. During cold winter months, ice cream sales are expected to decrease due to the weather which affects the consumer’s preference and activities. People opt to stay indoors during the cold season and crave hot beverages and meals during this time.
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.