Establishing a snow cone business is a simple, easy, and profitable business venture because it has a lot of potential. This business has a low starting cost. It holds low overhead costs. This type of business has continuous revenue earning stream. For investors who are interested in the snow cones business, proper guidance is available for starting a new venture.
Research reveals that the snow cone and curved-shaved ice business has a sales potential of $110 to $2,100 per day. This is a huge range of earnings because of the location of the business. The selling season also plays a significant role in the profitability of the business.
Snow Cone Business Profit
How to start a snow cone business is a worthy question. The cost of goods sold is so little and the sale price is high, so each sold unit increases more money in the business pocket. Here is a breakage of the cost of goods sold per 6.5 oz. snow cone:
- Snow cone syrup – $.06
- Snow cone cups or cones – $.06
- Napkin – $.02
- Ice – $.02
- Total cost per unit of a snow cone – $.16
The cost of goods sold (CGS) per 12.5 oz. shaved-curved ice:
- Shaved ice = $.08
- Napkin = $.02
- Foam cup = $.06
- Shave ice syrup = $.18
- Spoon = $.04
- Total cost per shaved ice = $.38
Step-By-Step Process Of Establishing The Snow Cone Business
1. Choose Your Snow Cone Concept
The high profits always convince the investors. If you think fit that starting a snow cone business is feasible for you, then it is the best time to start work as per your own concept. You must decide what kind of snow cone business you desire to start.
- Snow Cone v/s shaved Ice
These two types of sweet cones have various vital differences. The Snow cones are made of coarse flaked ice. These are always served to customers in cone-sized cups. The Shaved ice is also called Hawaiian ice. It is designed from fluffy-sized ice. These are served in a big foam cup. You must decide which product you want to sell. This will help you to develop clarity in your concepts.
- Logos And Snow Cone Name
It is the best approach to start up with a unique name and attractive logo for your business. By using this way you are able to create a marketplace for your business with better brand visibility way.
2. The Business Model And Location
One of the major aspects of operating a snow cone business is location and business model. Many investors have one snow cone stand in the starting phase. After sometimes they upgrade their business to a permanent and unique location. Check out the following options:
- A Permanent Shop
A permanent shop is the most costly while opening a shaved ice business. You must consider rent and payment of utilities, and overhead expenses.
- Mobile Shop
A snow cone cart combined with a snow cone machine is a mobile shop. It has compact machines also. It has good space for anything needed to sell snow cones. This is an affordable option. You can go with this mobile shop to festivals fairs and carnivals.
- Food Truck
A well-hygienic snow ice food truck is so much popular. It is widely used as an ice-cream motor truck in the summer season. With this food truck, you have access to travel to all nearby residential areas, neighborhoods, and picnic parks.
- Permanent Booth
Basically, it is a stationary booth with a folding table and chairs. It has a shaved ice cream machine. These permanent booths may be taken on a rental basis. These can be installed at stadiums, boardwalks, and farmer marketplaces.
- Seasonal Or Year Round Basis
Snow cones are hot weather products. The summer season is the best-selling season of this business. Full-year sunshine and high temperature are the best factors for this business during all seasons.
3. Develop A Snow Cone Business Plan
Think high and struggle high is a famous proverb. A unique business plan outlines all your key concepts, aims, goals, and profit-making strategy. If you plan to operate a storefront ice cream business, you have a strong need for financing.
Every strong and unique business plan is divided into the following important sections:
- The Executive Summary
This section comes first in the business plan. It actually provides help to write it in the last stage. It is a summary of all other key sections.
- Overview Of The Company
This section tells you where you should go in the future. It explains the reasons for opening a snow cone stand. It also explains your vision and mission statement.
- Key Concepts And Available Menu
Bring clarity to your core business concept. What types of snow cones and shaved ice cream products will be available for customers? You must set on a large menu of flavors and various combinations and unique toppings.
4. Ownership and Management Structure
A business is possible with skilled, trained, and sincere employees. If you want to enhance your business in the near future, you must outline all business plans and a strong management structure.
- Need Of Staff
Hire staff with great care. A business is successful with well-skilled, well-trained, and sincere staff.
- Competitor Analysis
You must consider your targeted customers. You must analyze all nearby competitors of snow cone businesses in your selected location.
- Marketing And Publicity
Advertisement is vital for every business’s success. Consider all types of advertising. Don’t forget about social media accounts which have a low-cost option.
- Financial Summary
This financial section provides info about the equity and capital you need to start a business. Your business plan should present a clear-cut breakdown of total starting initial costs, all overhead charges, and the profit margin.
5. Snow Cone Business Start-Up Costs
On average, the research reveals that the total cost to start a snow cone business is between $4,100 to $11,000. The question is how to start a snow cone business at a low cost.
These are some expenses you must consider while starting a new business snow cones.
- Cost Of Snow Cone Machine
The snow cone machines and ice shavers are available for $800 or less.
- Snow Cone Cart
A snow cone cart has a price of $1,100 or less.
- Vending Tent
A high-quality carnival hut can be bought for $1,100 to $2,100.
- Snow Cone Food Truck
A small trailer has cost as little as $11,000 and a custom food truck can be purchased for $55,000 to $155,000.
6. Permits And Licenses
A list of the permits and licenses is:
- Business License
- Parking Permits
- Food Handler’s Permit
- Employer Identification Number (EIN)
- Food Service License
7. All Equipment And Supplies
These are the snow cone supplies you’ll need to get started:
- Ice Shaver Or Snow Cone Machine
A snow cone machine is used to make crushed ice
- Flavored Syrups
Always keep basic flavors like cherry, grape, blue raspberry, watermelon, and a variety of other flavors and food combinations.
Snow cone machines prepare bags of cubed-shaped ice.
- Cones or Cups
If you desire to test the waters, then start with 6 oz. cones and offer only one size.
- Spoons and Napkins
You must need to read a snow cone cart stocked with hygienic plastic spoons and super napkins.
8. Events For Snow Cone Stand
Some events to support your question about how to start a snow cone business are:
Don’t forget all private events and opportunities.
- Work Picnics
- Birthday Parties
- School Events
- Family Reunions
- Summer Holiday Parties
- Carnivals and Fairs
- Beaches and Boardwalks
- Public Parks
- Arts Districts
- Skate Parks
- Outdoor Flea Markets
- Sporting Events
- Farmer’s Markets
- River Walks
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