Do you like challenges, for example? Do you thrive in difficult circumstances? Are you comfortable making big decisions? In that case, starting a small business may be for you. On the other hand, are you risk averse? Do you distrust your gut instinct? Do you avoid stress and big decisions? You might want to rethink your plan, since all of these – risk, stress, and decision-making – are a big part of small-business ownership.
Read up on the benefits of franchising your business. Working with a parent company like Cold Stone Creameries or Baskin Robbins, you’ll have help in starting up. They will guide you in décor, the materials and food ingredients used to make the products, and employee training. Franchise costs can run high, though. The average start-up cost for a Cold Stone Creamery franchise is between $261,000 to $405,000. [2] X Research source Starting your own shop is another choice. It may be less expensive to go it yourself – for instance, it is not uncommon to buy an existing or closed ice cream shop for $50,000 or less – but you will have much less support. Unlike a franchisee, you will have to do everything on your own.
Do market research. That is, look at your demographics, your competition, and the logistics of operating an ice cream shop. What group of customers are you targeting? Kids, maybe, or young professionals? How much business can you expect to do in your area? How will you price the ice cream? Sales and pricing might vary for a number of reasons, including season, your location, the presence of competitors, and supply. You will also need to find proper suppliers for your needs. Cones, napkins, toppings, and the ice cream itself will all have to be bought from wholesalers or suppliers. [3] X Research source Try starting your research at a place like the United States Securities and Exchange Commission website at http://www. sec. gov/. There you can find statistics on the industry, most of which are coded as 5810 or 5812 (eating places – retail).
In starting an eatery, you’ll probably also have to contact your local health department, state sales tax agency, and state employment department for an employer tax ID number (if you plan to hire). Don’t forget to contact the IRS, as well, to obtain a federal tax ID number. As you can see, there is a lot of legal red tape in starting a small business. You may want to consider consulting a lawyer who specializes in business for help.
Don’t forget that on top of the equipment you’ll need day-to-day supplies like ice cream, cones, plastic spoons, bowls, and otherwise.
Your shop may be quite small or large, anywhere from 400 to 4,000 square feet. Remember that you will need space for ice cream storage in addition to retail space.
Base your data on the market research you did: the size of your local market, your competition, your pricing, your marketing and operations plans, and trends in the overall industry. Include your projected costs for supplies, lease or rental agreement, wages, business insurance, and other things. Business plans usually follow a set format. They should begin with a short summary (called an executive summary), and then your business strategy and plans for growth, your marketing strategy, your operation plans, human resources plan, a financial projection, and an analysis of strengths, weaknesses, and possible threats (called a SWOT analysis). You can check your format on a website like the Canadian Business Network website at http://www. canadabusiness. ca/eng/page/2753/.
Sole proprietorship is the most common business structure. You can form on easily and it gives you, as the owner and operator, full control. However, you also will have to assume full liability for all of the business’ costs. Partnerships apply if you are going into business with another person. This arrangement splits the costs and profits. Some businesses take the form of corporations. Unlike the first two kinds, a corporation is a legally separate entity from the people that founded it. It is taxed separately and can be held legally responsible in court, just like a person. The biggest advantage of a corporation is that you avoid legal liability in case something goes wrong. The biggest disadvantage is that this structure is expensive and takes a lot of record keeping. [6] X Research source
With a broker, look into the local Chamber of Commerce to see future development plans. You may find that a part of town will have new projects that you weren’t aware of. Check traffic counts, as well. Talk to other business owners. Ask them what they find important in a location. Is it closeness to a tourist area, for example, a school, or a park? Don’t forget to include accessibility, including access to parking or mass transit, in your thinking.
Get your ice cream supplies, as well. Try to shop around for the best prices, comparing wholesale ice cream and stocking a variety of flavors to accommodate customer’s different tastes. You may also need toppings, sundae dishes, soda glasses, and other goods. Find suitable suppliers for those, as well.
Hiring takes more than just finding the right person. Keep in mind that you’ll have to put them on your payroll and keep records of all their earnings for tax purposes, withhold Social Security and other taxes, and report these numbers every year. You may have other legal obligations to employees in areas like labor standards, health care, and taxation. Make sure that you are in full compliance with the law to avoid problems. It is best to talk to a business lawyer in order to know your duties and rights.
NICRA offers benefits to its members, including, but not limited to, monthly bulletins, participation in an annual convention, ice cream quality testing, insurance programs, and scholarship opportunities.
