snow cone business plan template

Snow Cone Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business ideas » Food Industry » Snow Cone & Shave Ice

Are you about starting a snow cone business ? If YES, here’s a complete sample snow cone business plan template & feasibility report you can use for FREE to raise money .

The snow cone business has existed for a long while and it has continued to bring in good money to its operators. If you shouldn’t go into the snow cone business for anything, then perhaps you should because it is one way to satisfy the appetites of people. This isn’t an expensive business to start. In fact it is one of the best businesses you could ever start.

A Sample Snow Cone Business Plan Template

1. industry overview.

Snow cones basically are a variation of shaved ice or ground-up ice desserts commonly served throughout The united states of America and Canada in paper cones or foam cups. The dessert generally consists of ice shavings that are topped with flavored sugar syrup.

Other snow cone flavors also include Cherry, Grape, Blue Raspberry, Strawberry, Lemon-Lime, Banana, Tiger’s Blood, Root Beer, Watermelon, and Pina Colada et al.

The Ice Cream Production industry of which snow cone (shaved ice or ground – up ice deserts) line of business belong to has come a long way and it is still evolving with loads of snow cone desert makers bringing in creativity in terms of flavors, packaging and mode of selling.

Just like ice creams, snow cone (shaved ice or ground – up ice deserts) is generally consumed by almost everybody in our planet as such, anyone who choose to establish a snow cone trucking business or outlet in any part of the world especially in tropical regions or countries in the equator is sure going to get good returns on his or her investment as long as they are doing the right thing when it comes to setting up a business and effectively running the business.

Players in the Ice Cream Production / ice cream truck industry of which snow cone (shaved ice or ground – up ice deserts) line of business is a part of predominantly produce different flavors of snow cone (shaved ice or ground – up ice deserts) ice cream, frozen yogurt and sherbet et al, and sell these products to downstream markets such as retailers and food service related businesses.

Between 2010 and 2015, the Ice Cream Production industry’s performance has declined as repressed disposable income in the years following the recession caused consumers to purchase a smaller volume of industry goods at retail stores, ice cream trucks and food service related businesses.

In addition, the growing health concerns around us have caused many people to cut down their consumption of foods such as snow cones and ice cream, which is naturally high in fat and sugar. Largely, the industry revenue is projected to decline by 0.3 percent per year on average to $8.0 billion in the next 5 years.

It is on record that many players in the Ice Cream Production / ice cream truck industry were able to successfully beat the economic downturn and grow strongly over the last five years, as healthy and nutritious snow cones and ice cream became one of America’s favorite frozen desserts.

No doubt, the increasing popularity of the dessert has enabled the speedy franchise growth of well-known brands in the industry which has made this industry one of the food service sector’s biggest success stories of the past decade. The ice cream production / ice cream truck industry has remained resilient even as other food segments waned during recession period

Statistics has it that there are roughly three hundred and seventy three (373) standard registered and licensed ice cream production cum ice cream truck companies (snow cones production inclusive) in the United States and they can be found in all states, in major cities and remote rural areas in the U.S. The industry is responsible for employing about 18,474 people and raking in an average of $8 billion annually.

One of the great benefits of starting a snow cone business is of course low startup costs and entrepreneur interested in starting the business can chose to either rent or buy new equipment and also either to operate a mobile snow cone truck or operate from a fixed facility (kiosk or shop).

If you are contemplating starting your own snow cone business in the United States, you should ensure that you undertake an exhaustive and thorough market survey and feasibility studies .

States in the southern region in the United States such as Texas and Florida et al can be ideal for a snow cone truck business simply because of the climatic condition / weather there. If you get some key factors wrong before starting your snow cone truck business, then you are likely going to struggle to stay afloat.

2. Executive Summary

People’s Delight® Snow Cone, LLC is a leading and standard Snow Cone Production Company that will be based in Beale Street, Memphis – Tennessee, USA and will cover a wide range of clients both domestic and corporate clients.

We are in the snow cone production line of business to retail variety of snow cone (shaved ice or ground – up ice deserts) such as Cherry, Grape, Blue Raspberry, Strawberry, Lemon-Lime, Banana, Tiger’s Blood, Root Beer, Watermelon, and Pina Colada et al. to a wide range of customers along the locations where we intend positioning our snow cone mobile truck and permanent shop.

We have put plans in place to also sell our franchise and offer consultancy services in line with our area of business. We are in the snow cone production line of business to favorably compete with other leading and brands in the industry and our corporate business goal is to be among the top 5 brand in the snow cone production line of business in the United States of America.

As a company, we are willing to go the extra mile to invest in some of the finest professionals we can find and also we have set plans in place to acquire the best of equipment when it comes to setting up a standard snow cone production business.

Our mobile snow cone trucks are customized to fit into the kind of ideas we have of how a first class mobile food truck business should look like.

When it comes to hygiene and proper packaging, we have put plans, process and structures in place that will ensure that we are always at the top of game when it comes to that. We have been able to secure permits from all relevant departments in Memphis – Tennessee.

People’s Delight® Snow Cone, LLC is set to redefine how snow cone production business should be run, not just in Memphis – Tennessee, but also throughout the United States of America and Canada.

This is why we have put plans in place for continuous training and re – training of all our staff members at regular interval and also liaising with stakeholder in the industry to contribute our quotas in the way snow cone making equipment should be designed and fabricated to meet the ever changing demand of the industry.

Beyond every reasonable doubt, the demand for snow cone is not going to plummet any time soon, which is why we have put plans in place to continue to explore all available market around the cities where our snow cone mobile trucks will pass through and also ensure that we create a wide range of distribution channels via franchising. With that, we know that we will be able to

3. Our Products and Services

At People’s Delight® Snow Cone, LLC we deal in all forms and flavors of snow cone (shaved ice or ground – up ice deserts), we are an establishment that primarily prepare, serve / sell snow cones via our customized truck and in our permanent location.

As part our strategy to create multiple sources of income in line with our core business concept, we will run a consultancy service and trainings. Our intention of starting People’s Delight® Snow Cone, LLC is to make profits from the ice cream production cum snow cone production line of business and we will do all that is permitted by the law of the United States to achieve our aim and ambition.

Here are some of our products and services;

• Different flavors of snow cones (shaved ice or ground – up ice deserts) such as Cherry, Grape, Blue Raspberry, Strawberry, Lemon-Lime, Banana, Tiger’s Blood, Root Beer, Watermelon, and Pina Colada
• Consultancy and Advisory Services

4. Our Mission and Vision Statement

• Over vision as a business is to be amongst the top 5leading snow cone production companies in the United States of America before our 10 th anniversary.
• Our mission is to build a snow cone production business that will meet the needs of all our customers and potential customers in the regions / cities where we have our permanent shops and where our mobile truck will pass through and to sell franchise all across the United States of America and Canada.

Our Business Structure

As part of our plans to build a standard Snow Cone Producing Company in Memphis – Tennessee, we have perfected plans to get it right from the beginning which is why we are going the extra mile to ensure that we have competent and hardworking employees to occupy all the available positions in our company.

The picture of the kind of Snow Cone Production Company we intend building and the business goals we want to achieve is what has informed the amount we are ready to pay for the best hands available in the ice cream production industry cum snow cone production line of business as long as they are willing and ready to work with us to achieve our business goals and objectives.

With the wide range of our service offerings and the plan to sell franchise, we are only expected to employ more than it is required to run a conventional snow cone production business. Definitely, we will have various employees to man the various services offering of People’s Delight® Snow Cone, LLC. Below is the business structure that we will build People’s Delight® Snow Cone, LLC;

• Chief Executive Officer

Plant Manager

Food Technologist

Human Resources and Admin Manager

Sales and Marketing Team

• Accountants / Cashiers
• Truck Drivers
• Customer Service Executives

5. Job Roles and Responsibilities

Chief Executive Officer – CEO (Owner):

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
• Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for fixing prices and signing business deals
• Responsible for providing direction for the business
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization
• Responsible for overseeing the smooth running of the snow cone production plant
• Part of the team that determines the quantity of snow cones that are to be produced
• Map out strategy that will lead to efficiency amongst workers in the plant
• Responsible for training, evaluation and assessment of plant workers
• Ensures that the steady flow of both raw materials to the plant and easy flow of finished products through wholesale distributors to the market
• Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
• Ensures that the plant meets the expected safety and health standard at all times.
• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.
• Enhances department and organization reputation by accepting ownership for accomplishing new and different requests; exploring opportunities to add value to job accomplishments.
• Defines job positions for recruitment and managing interviewing process
• Carries out staff induction for new team members
• Responsible for training, evaluation and assessment of employees
• Oversees the smooth running of the daily office and field activities.
• Responsible for creating and the production of all the flavors of snow cone produced by the company
• Ensures that the organization follows due process as it applies to the nature of business we are into
• Serves as the quality assurance officer of the organization
• Retails snow cones to our customers when they make demands
• Manages external research and coordinate all the internal sources of information to retain the organizations’ best customers (retailers) and attract new ones
• Models demographic information and analyze the volumes of transactional data generated by customer purchases
• Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Develops, executes and evaluates new plans for expanding increase sales
• Documents all customer contact and information
• Represents the company in strategic meetings
• Helps increase sales and growth for the company

Accountant / Cashier

• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensures compliance with taxation legislation
• Handles all financial transactions for the organization
• Serves as internal auditor for the organization

Truck Drivers:

• Drives the snow cone mobile truck to and fro various sales locations
• Assists in loading and of loading the equipment and supply
• Runs errand for the organization
• Any other duty as assigned by the sales and marketing executive or human resources and admin manager

Client Service Executive

• Ensures that all contacts with customer (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with customers on the phone, uses every opportunity to build client’s interest in the company’s products and services
• Manages administrative duties assigned by the human resources and admin manager in an effective and timely manner
• Consistently stays abreast of any new information on Ms. Caramel Ice Cream Truck Company® products, promotional campaigns etc. to ensure accurate and helpful information is supplied to customers when they make enquiries
• Responsible for cleaning the truck at all times
• Ensures that toiletries and supplies don’t run out of stock
• Cleans both the interior and exterior of the truck and office facility
• Any other duty as assigned by the human resources and admin manager.

6. SWOT Analysis

Because of our drive for excellence when it comes to running a standard snow cone production company, we were able to engage some of the finest business consultants in Memphis – Tennessee to look through our business concept and together we were able to critically examine the prospect of the business and to access ourselves to be sure we have what it takes to run a standard snow cone production company that can compete favorably in the ice cream production / ice cream truck industry of which snow cone line of business is a part of.

In view of that, we were able to take stock of our strengths, our weakness, our opportunities and also the threats that we are likely going to be exposed to in Memphis – Tennessee and even in the United States of America as a whole. Here is a of what we got from the critically conducted SWOT Analysis for People’s Delight® Snow Cone, LLC;

Our strength lies in the fact that we have various flavors of snow cone (shaved ice or ground – up ice deserts), that can meet the needs of a wide range of customers. We have well designed and structured mobile food trucks and equipment that has positioned us to meet the demand of products even if the demand tripled over night or if we have a massive order to meet and emergency need.

Another factor that counts to our advantage is the background of our Chief Executive Office; she has a robust experience in the industry and also a pretty good academic qualification to match the experience acquired which has placed her amongst the top flight professionals in the United States of America.

We are not ignoring the fact that offering consultancy services and running a standard and accredited training center is definitely going to count as a positive for us.

The fact that we are setting up a snow cone production business in a city with other established snow cone production companies and ice cream plants might likely pose a challenge for us in breaking into the already saturated market in Memphis – Tennessee. In essence our chosen location might be our weakness.

But never the less, we have plans to launch out with a big bang. We know with that, we will be able to create a positive impression and we have a proper handle when it comes to building on an already gather momentum.

• Opportunities:

The opportunities available to us are unlimited. Loads of people consume all forms and flavors of snow cone (shaved ice or ground – up ice deserts) on a daily basis and all what we are going to do to push our products to them is already perfected. There are also loads of people who would want to learn how to make snow cone and they will readily find our government approved ice desert training center highly ideal for them to fulfill that goal.

The threat that is likely going to confront us is the fact that we are competing with already established snow cone production, ice cream truck companies, ice cream production companies and frozen yogurt stores in Memphis – Tennessee and also there are other entrepreneurs who are likely going to launch similar business within the location of our business.

Of course, they will compete with us in winning over the available market. Another threat that we are likely going to be faced with is unfavorable government policies and of course economic downturn. Usually economic downturn affects purchasing / spending powers.

7. MARKET ANALYSIS

• Market Trends

Generally, when it comes to ice desert such as snow cone, frozen yogurt and ice cream et al, everyone will quite agree that the market trend changes from time to time. Snow cone / ice cream production companies are seriously researching and creating flavors and varieties that will keep them afloat in business.

Any snow cone production company who wants to remain relevant in the scheme of things in the industry must be willing to explore the ‘snow cone (shaved ice or ground – up ice deserts) world’; he or she must be able to come up with a product that taste unique from what is available in the market.

Another trend is that some snow cone production companies, ice cream production companies and frozen yogurt stores have gone beyond only selling their products in their stores to taking it out to people in parks, sport centers and public places through vans and mobile food trucks.

Some snow cone production companies, ice cream production and frozen yogurt stores have even gone ahead to start retailing their products to the public through vending machines; it is one of the strategies that is helping them gain a huge market share.

Lastly, technology is a major tool in marketing mobile food, snow cone and ice cream truck business. As a matter of fact, there are mobile apps that customers can use to track their favorite snow cone, ice cream truck or food truck. Other strategies that players in this industry adopt is to ensure that their snow cone, ice cream truck or food truck is well branded, and they are always playing good music on their truck.

The truth is that people naturally get attracted to colorful designs and good music. Players in this industry also network with event managers, they are in a better position to help them increase sales especially when they are involved in outdoor events.

8. Our Target Market

When it comes to snow cone (shaved ice or ground – up ice deserts), there is indeed a wide range of available customers. In essence, our target market can’t be restricted to just a group of people, but all those who love snow cone (shaved ice or ground – up ice deserts) and of course those who would want to try it out.

This is why we have been able to map out strategic locations all around Memphis – Tennessee where we will position our mobile snow cone truck per time.

In view of that, we have conducted our market research and we have ideas of what our target market would be expecting from us. We are in business to engage in wholesale distribution and to retail a wide range of snow cone (shaved ice or ground – up ice deserts) flavors to the following groups of people;

• Corporate Executives
• Government Officials
• Business People
• Celebrities
• Military Men and Women
• Sports Men and Women
• Everyone who resides in our target locations.

Our Competitive Advantage

Our aim of starting People’s Delight® Snow Cone, LCC is to build a business that can grow within the first 10 years of establishing the business to be listed amongst the top 5 snow cone production companies in the United States of America. With that in mind, we have been able to come up with competitive strategies that will help us compete favorably in the industry.

We are going to be one of the very few snow cone truck companies in Memphis – Tennessee with vending machines in all our truck.

Another competitive advantage that we have is the vast experience of our management team, we have people on board who are highly experienced and understands how to grow business from the scratch to becoming a national phenomenon.

So also, the wide varieties of snow cone (shaved ice or ground – up ice deserts)flavors et al that we produce, our large national distribution network and of course our excellent customer service culture will definitely count as a strong strength for the business.

One thing is certain, we will ensure that our snow cone truck is well equipped and meet the required standard at all times.

Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category (startups snow cone production businesses in the United States) in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and achieve all our business aims and objectives.

9. SALES AND MARKETING STRATEGY

• Sources of Income

People’s Delight® Snow Cone, LLC is established with the aim of maximizing profits in the snow cone production line of business cum Ice Cream Production industry in the United States of America and we are going to go all the way to ensure that we do all it takes to sell a wide range of snow cone (shaved ice or ground – up ice deserts) flavors to a wide range of customers.

People’s Delight® Snow Cone, LLC will generate income by selling the following products;

10. Sales Forecast

One thing is certain; there would always be people who would purchase snow cone (shaved ice or ground – up ice deserts) flavors.

We are well positioned to take on the available market in Memphis – Tennessee and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six month of operations and grow our business.

We have been able to critically examine The Ice Cream Production industry cum snow cone production line of business – market and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast.

The sales projection is based on information gathered on the field and some assumptions that are peculiar to similar startups in Memphis – Tennessee. Below are the sales projection for People’s Delight® Snow Cone, LCC, it is based on the location of our business and of course the flexibility of our market approach (mobile food truck and permanent location);

• First Fiscal Year-: $150,000
• Second Fiscal Year-: $450,000
• Third Fiscal Year-: $800,000

N.B : This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and the arrival of a competitor in same location as ours within the period stated above. Please note that the above projection might be lower and at the same time it might be higher.

• Marketing Strategy and Sales Strategy

Before choosing a location to launch People’s Delight® Snow Cone, LCC and also the kind of snow cone flavors to produce, we conducted a thorough market survey and feasibility studies in order for us to be able to be able to penetrate the available market in the cities where we intend positioning our business.

We have detailed information and data that we were able to utilize to structure our business to attract the numbers of customers we want to attract per time and also for our products to favorable compete with other leading snow cone brands in Memphis – Tennessee and the whole of the United States of America.

No doubt, technology is a major tool in marketing ice cream and mobile food truck. As a matter of fact, there are mobile apps that customers can use to track their favorite snow cone cum ice cream truck. Other strategies that we will adopt is to ensure that our snow cone mobile truck is well branded, and we are always playing good music on our truck.

The truth is that people naturally get attracted to colorful designs and good music. We will also network with event managers; they are in a better position to help us increase sales especially when they are involved in outdoor events.

We hired experts who have good understanding of the snow cone, ice cream production cum ice cream truck industry to help us develop

In order to continue to be in business and grow, we must continue to sell our products to the available market which is why we will go all out to empower or sales and marketing team to deliver our corporate sales goals. In summary, People’s Delight® Snow Cone, LLC will adopt the following sales and marketing approach to sell our wide range of snow cone flavors;

• Introduce our snow cone brand by sending introductory letters to residence, event planners, merchants and other stakeholders both in Memphis – Tennessee and in other cities in the United States of America
• Open our snow cone production company with a party so as to capture the attention of residence who are our first targets
• Engage in road show in targeted communities from time to time to sell our products
• Advertise our products in community based newspapers, local TV and radio stations
• List our business and products on yellow pages ads  (local directories)
• Leverage on the internet to promote our snow cone brands
• Engage in direct marketing and sales
• Encourage the use of Word of mouth marketing (referrals)

11. Publicity and Advertising Strategy

Despite the fact that our snow cone production company is a standard one with a wide range of flavors and products that can favorably compete with other leading brands in the United States, we will still go ahead to intensify publicity for all our products and brand. We are going to explore all available means to promote People’s Delight® Snow Cone, LLC.

People’s Delight® Snow Cone, LLC has a long term plan of selling our franchise all around the United States of America which is why we will deliberately build our brand to be well accepted in Memphis – Tennessee before venturing out to other cities in the United States of America.

As a matter of fact, our publicity and advertising strategy is not solely for selling our products but to also effectively communicate our brand. Here are the platforms we intend leveraging on to promote and advertise People’s Delight® Snow Cone, LCC;

• Place adverts on both print (community based newspapers and magazines) and electronic media platforms
• Sponsor relevant community programs
• Leverage on the internet and social media platforms like; Instagram, Facebook , twitter, et al to promote our brand
• Install our Bill Boards on strategic locations all around Memphis – Tennessee
• Engage in road show from time to time in targeted communities
• Distribute our fliers and handbills in target areas
• Position our Flexi Banners at strategic positions in the location where we intend getting customers to start patronizing our products.
• Ensure that all our staff members wear our customized clothes, and all our official cars and trucks are customized and well branded.

12. Our Pricing Strategy

When it comes to pricing for products such as snow cone, ice creams and frozen yogurts, there are no hard and fast rules, the prices depends on the size and packaging. Generally, the prize for snow cone, ice cream and frozen yogurts and similar products like confectioneries and cupcakes et al are affordable hence there is no need to employ any detailed strategies when it comes to pricing.

In view of that, our prices will conform to what is obtainable in the industry but will ensure that within the first 6 to 12 months our products are sold a little bit below the average prices of various snow cone brands in the United States of America. We have put in place business strategies that will help us run on low profit margin for a period of 6 months; it is a way of encouraging people to buy into our brands.

• Payment Options

At People’s Delight® Snow Cone, LLC, our payment policy is all inclusive because we are quite aware that different people prefer different payment options as it suits them. Here are the payment options that will be available in every of our outlets;

• Payment by cash
• Payment via Point of Sale (POS) Machine
• Payment via online bank transfer (online payment portal)
• Payment via Mobile money

In view of the above, we have chosen banking platforms that will help us achieve our payment plans without any itches.

13. Startup Expenditure (Budget)

When it comes to starting a standard snow cone production and snow cone mobile truck business, one is expected to spend the bulk of the start – up capital on is the purchase of standard and well – equipped snow cone mobile truck. Aside from that, you are not expected to spend much except for purchasing ingredient, paying of your employees and utility bills.

This is the key areas where we will spend our start – up capital;

• The Total Fee for Registering the Business in the United States of America – $750.
• Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $1,300.
• Marketing promotion expenses for the grand opening of People’s Delight® Snow Cone, LLC; in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of – $3,580.
• Cost for hiring Business Consultant – $2,500.
• Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
• Other start-up expenses including stationery ( $500 ) and phone and utility deposits ( $2,500 ).
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $100,000
• The cost for Start-up inventory (raw materials and packaging materials et al) – $9,000
• Storage hardware (bins, rack, shelves, food case) – $3,720
• The cost for counter area equipment (counter top, sink, ice machine, etc.) – $9,500
• Cost for snow cone making equipment – $20,000
• Cost for store equipment (cash register, security, ventilation, signage) – $4,750
• Cost of purchase of mobile snow cone truck – $50,000
• The cost of Launching a Website – $600
• The cost for our opening party – $5,000
• Miscellaneous – $5,000

We would need an estimate of $150,000 to successfully set up our snow cone production company in Memphis – Tennessee. Please note that this amount includes the salaries of all the staff for the first 3 month of operation.

Generating Funding / Startup Capital for People’s Delight® Snow Cone, LLC

People’s Delight® Snow Cone, LLC is a family business that is owned and financed by Dr. Chloe Jack – Morison and her immediate family members. We do not intend to welcome any external business partner, which is why he has decided to restrict the sourcing of the start – up capital to 3 major sources.

These are the areas we intend generating our start – up capital;

• Generate part of the start – up capital from personal savings and sell of stocks
• Source for soft loans from family members and friends
• Apply for loan from my Bank

N.B: We have been able to generate about $50,000 (Personal savings $40,000 and soft loan from family members $10,000 ) and we are at the final stages of obtaining a loan facility of $100,000 from our bank. All the papers and document have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.

14. Sustainability and Expansion Strategy

The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.

One of our major goals of starting People’s Delight® Snow Cone, LLC is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to retail our snow cone (shaved ice or ground – up ice deserts) flavors a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.

People’s Delight® Snow Cone, LLC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List / Milestone

• Business Name Availability Check: Completed
• Business Registration: Completed
• Opening of Corporate Bank Accounts: Completed
• Securing Point of Sales (POS) Machines: Completed
• Opening Mobile Money Accounts: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Conducting Feasibility Studies: Completed
• Generating capital from family members: Completed
• Applications for Loan from the bank: In Progress
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents and other relevant Legal Documents: In Progress
• Design of The Company’s Logo: Completed
• Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
• Recruitment of employees: In Progress
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business both online and around the community: In Progress
• Health and Safety and Fire Safety Arrangement (License): Secured
• Opening party / launching party planning: In Progress
• Establishing business relationship with vendors – wholesale suppliers / merchants: In Progress
• Purchase of mobile snow cone trucks: Completed

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How To Start A Profitable Snow Cone Business In 5 Steps

A Snow Cone business is an ideal candidate for your summer side-hustle. The margins are incredible, you get to be outside soaking up the sun, and you're giving people a constant stream of sugary ice. What could be better than making money and making people happy at the same time? Before we discuss how to start a snow cone business, let's take a look at the profit potential.

• The Snow Cone Opportunity

Quick Stats:

• Startup Cost: $4,571.75
• Peak Season: June-August (90 Days)
• Cost Per Snow Cone: .80
• Retail Price: $3.00 (6oz)
• Profit Potential In Peak Season : $15,840 – $26,400 (Net)

Snow Cone Profit Calculator

Consumer snow cone trends.

According to Google ads Keyword Planner, the phrase “Snow Cones Near Me” is searched an average of 45,500 times per month.

As you can see below, peak seasons for Snow Cone searches are the summer months, topping out in June & July.

Locational Trends: The best states to start a snow cone business in

Good news if you want to start a snow cone business in Texas, it commands 48% of Google's TOTAL SEARCH VOLUME for the phrase “Snow Cones Near Me”. Texas benefits from being a large state with a warm climate, so it's no surprise.

The best states by search volume % are:

• Texas 48.8%
• Oklahoma 6.5%
• Florida 4.5%
• Louisiana 4.0%
• California 3.3%

The rest of the United States makes up a total of 32.9% of the total searches for the “Snow Cones Near Me” phrase. 

Where's Hawaii? Don't forget about shaved ice!

You may have wondered where Hawaii is in all of this, aren't they the king of tropical sweets? Of course, they are, but let's keep in mind over there; it's all about the Hawaiin shaved ice. If you're starting a snow cone business there, you may want to re-brand to shaved ice.

The search term “Shaved Ice Near Me” is searched on average of 33,100 times per month, with 22.9% of the searches coming from the State of Hawaii. 

Does this mean I shouldn't start a snowcone business if I'm not in one of the top states?

In short, no. There are plenty of successful snow cone sellers in states with a much lower percentage of the searches. Keep in mind; this is only data from an online search engine. It's important to remember that snow cones are also an impulse buy.

Many of your customers won't be searching for snow cones, snow cones will find them. They will be hot, tired, and ready for a pick-me-up.

There are plenty of seasonal opportunities throughout the US to make good money slinging cones! Although living in a colder climate might not be the best idea if you are planning a full-time snow cone venture.

Snow Cone Business Pros

• Low overhead: Once you purchase the necessary equipment, snow cones have a very low overhead cost.
• Good Margins: Depending on the location and flavors, you can charge between $2-$5 for a snow cone!
• Simple non-perishable menu: Snow cones consist of only two necessary ingredients: Ice and flavored syrup. The only other element would be paper or plastic containers to put them in. Your syrups will last quite a while before going bad.
• Working outside: If you enjoy being outdoors, this is a great way to spend time outside while bringing in some cash.
• Freedom & Flexibility: You get to be your own boss, your own schedule and take time off whenever you want.
• Seasonality: For some, this is a con, but for others, they love the idea of a cash-generating side business. You get to make your burst of money and then put it away until the next summer.
• Cash-Flow business: Snow Cones should produce an immediate cash flow positive business. With low overhead, you should be in the positive the first year in business. If your profit margins are right, you will be able to pocket money very soon after getting started.

Snow Cone Business Cons

• Seasonality: For some, this is a con. If you want to build a full-time snow cone empire, you may need to live in one of the states we covered above.
• Hard work and hot temperatures: It's a good problem to have, but slinging cones can get a little hot and exhausting. Often you will have a rush of customers all in a hurry, and it takes someone that can manage that stress.
• Occasional Slumps: You may have situations where days are slow, or the event that promised a lot of customers was a bust.

Now that we've discussed the opportunity and the pros and cons let's get to the step-by-step process for launching your Snow Cone empire.

Table of Contents

Step 1: name your snow cone business, step 2: come up with a basic business plan, step 3: form a business entity and obtain permits, step 4: purchase necessary equipment, step 5: secure your locations and events, total costs and profit.

Though it might not seem that important, choosing a good name can give you an edge in any business. Since you will sell a common item, a name that sticks out from the competition is always preferred.

IE of a bland name: Ben's Snow Cones

IE of a name with more pizazz: Ben's Big Bad Cones

The second example still has a good keyword signifier (Cones) but also ads a fun angle. It sends a message to the consumer that these are not only snow cones, but they must also be extra big and sugary

It's a good idea to spend some time choosing a name, but eventually, rip the bandaid off and make a decision. You can run potential names by your friends, family, spouse, etc.

Some Snow Cone Business Name Ideas

• Game of Cones
• The Cone Heads
• The Coninator
• Ice Ice, Baby (Check copyright)
• Snow Cone Cabana
• The Cone Zone
• Big Bad Cones
• Mr. Bailey's Magical Ice
• Snowtal Recall
• Sugar & Snow.

Have A Logo Made

After choosing a name, it's time to get a logo made! This can be used on your cart, truck, and website if you have one. Having a good professional logo is vital for marketing your business. In a way, it can be the first impression for those considering making a purchase.

It also gives a sense of psychological legitimacy to your business, and I always feel like it's more ‘official' when I have a logo.

There are many styles of logos, so it could be beneficial to ask yourself these questions before commissioning a designer:

• Do I want a classy traditional logo or something more on the fun side?
• What elements can I add to make it stick out?
• What colors do I want my business to be associated with?

Having a logo made can be very overwhelming if you don't know where to look, so we've made this easy for you. You can take the answers to the questions above and send them to the designer you choose.

Two Cheaper Websites places to have your snow cone logo made

1. fiverr.com.

Fiverr is a marketplace to find almost anything you need online, including logos. Prices and freelancer talent vary, so it may take some time to filter and find some designers you want to get mockups from.

You can start selecting from the available designers by clicking this link , which will bring you to the logo design search. Choose a style you like and start parsing through potential freelancers . They all have examples in their portfolios. You can also filter based on the aspects you're looking for, such as Text-Only, 3D, Mascot-Themed, etc. 

Pricing varies mainly on the type of logo and talent level. You can pay anywhere from $5 to $500 for a logo. We suggest paying between $20-$50 for Fiverr designs.

Since Fiverr tends to run on the cheap side, we recommend hiring a few different designers to do mockups and see what they come up with. We suggest paying between $20-$50 for each. After you get the logo concepts back, choose the one you want to go with and provide any necessary edits.

2. 99designs

99designs is different than Fiverr. You will launch a contest for a flat rate, starting at $299. While this is more expensive than Fiverr, you will actually get back at least 30 logo concepts. You can rate each design, which cues the designers if they're on the right track.

You can narrow down the finalists from there, and they compete for the winning logo. You can communicate directly with each designer and even make notes on the designs, telling them any changes or ideas you have.

Eventually, you will pick the winner, and the design files will be delivered to you. I've used this service four times and have returned fantastic designs. I say if you have the $299 to spend, it's worth it. It eliminates a lot of hassle going back and forth on other logo platforms.

While it might not be as extensive as opening a restaurant in NYC, you should still put together a basic plan for your snow cone business. A business plan will help you think of scenarios you might not have thought of before. Answering these questions can be extremely helpful for your success, viability, and profitability.

What am I selling?

Before you say duh, let's go back to the Hawaii issue from earlier. Are you going to make a clear decoration that you are a Snow Cone business or a Shaved Ice business? Or, are you going to offer the option for either?

It's probably best to choose one and stick with it for branding identity purposes. Also, will you be selling anything else to compliment the cones? Would selling bottled water make sense to passers-by just looking to quench their thirst? Upsells and variety are good, but they also mean more upfront costs and a complex menu.

Snow Cones Vs. Shaved Ice

Snow Cones have larger ice crystals that make the texture more crunchy. Shaved Ice is fine and fluffy like snow.

How & where am I selling?

There are a few options on the type of setup for your snow cone selling. You may determine one of these is more viable than the others depending on where you live, your population, and the opportunities in your area.

How Am I Selling?

• A permanent cart set up at a single location: Best for seasonal setup in a well-trafficked area.
• A Mobile Cart: Best for setting up at temporary locations and events
• A Traditional food Truck setup: Best for experienced business owners who may have a year-round opportunity. It also eliminates the hauling equipment equation. Of course, this option is much more of an investment. 

Where am I selling?

Location, Location, Location. A key to having a successful snow cone business is having the right location or locations. If you plan on selling in specific areas, you want to make sure there's enough car or foot traffic. 

Here are some things to consider when picking a location to sell:

• Is there heavy foot traffic? Places like shopping centers and grocery stores may have a lot of people walking by, making it an ideal location for you to set up.
• Is there a competitor nearby? Sure, there might not be another snow cone cart, but maybe an ice cream shop is nearby. Make sure you aren't competing too closely with another business.
• Do I have to break down and pack things up every day? Did you get permission to leave things set up overnight? Finding a spot to store your equipment could save you a lot of setup hours.

Will my business model include special events?

Special events are a GREAT way to make good money selling snow cones. Not only is their guaranteed built-in foot traffic ready to cool down, but you can also charge premium prices. Think about it; most food at events is highly-priced. If you're in an area with many activities, you could make a lot of money going from event to event.

Is the event model viable? Ask these questions:

• How many events are there in the peak season within a specific mile radius?
• Do these events charge rent or fees?
• What is the anticipated attendance of each event?
• What are the anticipated sales and costs for each event?

Anticipated Startup Costs

Having an idea of the total costs to get going is vital. You want to be sure you have enough money and run-way to get you to opening week. We will do a detailed breakdown of costs later, but for now here are some things to consider:

• Equipment costs
• Costs of goods
• Transportation
• Business licenses and permit costs
• Event or location fees/rent
• Misc. costs such as marketing, branding & design

COGS – Cost of Good sold

The next phase in your business plan is to add up the total costs for each unit sold, minus the special one-time costs. In other words, each time you sell a snow cone, what will it cost you? Things like providing napkins and plastic spoons will add to your bottom line. 

Make sure you include every cost when adding up your COGS. Things you should not include are the one-time purchases such as the snow cone maker, cart, or generator.  However, if you are using a gas generator, try to add gas into this equation. For that, it doesn't have to be exact, make an educated guess. 

Menu and Pricing

After determining your COGS, you're ready to set up the menu to be offered. For basic setups, this will be your variety of the syrups provided. The more flavors, the more it costs to keep your cart fully stocked.

Don't paralyze people by having too many choices. You don't want to be the Baskin Robins of snow cones. Try limiting your menu to 6-10 flavors . Odds are someone will like one out of 10.

People are in a hurry, and if you have long lines, you'll want them to make quick decisions. Giving them too many choices could end up backfiring. To start, keep it simple. You can always add more options later if necessary.

The great thing you will discover is Snow Cones offer huge margins! Say your total costs of good per snow cone is .50. It is not uncommon to see people selling them Between $2-$5 per cone. Pricing can depend on several factors, including where you are selling and demand.

Will you be offering different sizes? Sizes are a great upsell. Say a 6oz snow cone costs you .50 and a 12oz snow cone only costs you .75. You're already using the container and spoon; the only addition is extra syrup and ice.

This doubles the size for the consumer, but your costs are only .25 more. Now you can offer the 6oz cones at $3.00, or double the size (12oz) for only $4. Your profit margin went from $2.50 for the 6oz to $3.25 for the 12oz.

Calculate Anticipated Profit Scenarios

This will be a guessing game, but once you figure out your cost per snow cone, it's time to anticipate monthly profits. Since you may be changing locations and perhaps attending special events, it will not always be a consistent calculation. The important thing is to get an average of what you think will happen. 

Taking things like special events and locations in consideration, use the following formula for a rough profit estimation:

Say you worked four days a week and planned on selling 100 cones per day at an average price of $3. Your COGS per unit are an average of .65.

You've got to protect your assets! There are many reasons why you should form a business entity for your snow cone empire. For one, you may need to get special permits and licenses to operate your business in your state or city. Having the legal paperwork sorted out will ensure you don't lose valuable time when the sun starts shining.

Another benefit of having an official business entity is legitimacy and ease of business with your clients or landlords. If you are at a special event and are being paid directly from a coordinator, making a check out to you personally may seem a little unprofessional.

Additionally, you will need thins like an EIN (Employer Identification Number) when you go to get local permits for doing business.

Types of entities suitable for a snow cone business:

1. Sole Proprietorship

If you choose this option, you will report and pay taxes for the business on your personal tax returns. While a Sole Proprietorship may seem like less work legally, you're also liable and leave yourself exposed personally for mishaps.

IE: Little Suzy may be so excited to eat her Snow Cone that she runs as fast as she can towards the stand. Suzy loses her balance and falls face-first right into the wooden corner. Her parents think you're to blame, and therefore file a lawsuit. Guess what, you are personably responsible for any damages.

2. Limited Liability Company (LLC)

If you choose an LLC , you will be covered against legal issues under your business, and it would be hard for someone to come after you personally. LLC ‘s also make having employees easier if you think you may get to that level someday. You might as well plan ahead and give them the business room to grow.

Besides the legal and employment benefits, LLC ‘s also offer some tax advantages. Moreover, they are essentially the same price to form as a Sole Proprietorship, so why not have the extra protection? Whatever you decide, you can expect the process to take about 2-4 weeks.

Obtain Necessary Licenses and Permits

After you have your business entity setup, it's time to get the necessary permits to run your Snow Cone business. Some permits needed will vary state-by-state, so make sure to do your own research and obtain everything you need.

Licenses and Permits you may need:

• Business license (Not the same as forming an LLC )
• Food vending and handling permit
• Business registration certificate
• Health department permit (Sometimes)

When you make it to step four, you're getting to the fun part of starting a snow cone business. Buying the necessary equipment and supplies will help make this entire venture start to feel real, and it's exciting!

It's very important to buy the right materials, and critical to think of everything you will need. The last thing you want is to be missing a crucial tool for your first job. To make it easy for you, we've put together a complete checklist with pricing.

Note: These are suggestions; there are several options when it comes to equipment, so please do your due diligence.

1. Commercial Snow Cone Machine

The most critical piece of your business! There are a surprising amount of options when picking out the best snow cone machine, but here are a few things/tips to keep in mind.

• Keep it commercial! You are going to be (hopefully) selling a lot of snow cones, steer clear of the home-use style machines. There are several machines not meant for substantial output. Make sure it says ‘commercial' or ‘industrial.' The small machines meant for birthday parties just won't ‘cut' it.
• Not something to be cheap with. You're on a budget, but this is your racehorse, don't go cheap with the machine quality. There are plenty of viable options that won't break your bank.
• Look at the specs. Check things like wattage, horsepower, and any other operational requirements.

We recommend: Paragon Simply-A-Blast SNO Cone Machine

2. snow cone cups bulk (1000), 3. spoon straws.

Spoon straws are a great idea when thinking about customer experience. Use the spoon side when the snow cone is still icy, and flip it around to the straw side when it starts to melt (Or you want to slurp the syrup from the bottom).

Syrups are sticky, and if you don't offer napkins, you may run into some frustrated customers. Another item that is not expensive at all, so make sure you spend the extra pennies to ensure happy and clean customers.

5. Snow Cone Syrup/Concentrate

The flavored syrup is another key element to your snow cone enterprise. As stated before, we recommend starting out offering around ten flavors. Many people will want to mix and match these to make interesting flavor profiles. We suggest buying concentrate and then mixing with water. It's cheaper and will last longer!

Question: How much syrup will each 6oz snow cone require?

Answer: A 6oz snow cone will require about 2oz of syrup

This means a gallon of syrup will fill 64 6oz snow cones. (128oz / 2oz =64)

7. Snow Cone Scoop, Ice Scoop, Ice Bucket, and Cooler

These four items are one-time purchases, except for the occasional replacements. All four will come in handy and make your job easier. You also don't want to be handling ice with your bare hands, so be sure and use the scoops and bucket.

The cooler will be nice for storing extra nice if you need it. The last thing you want to do is run out of ice when you have a line of hot customers.

8. Menu Board

Don't forget to let customers know what your menu is! They will want to know all the flavor options, and it will also help them decide before they get to you. There are many menu signage options, but if you want to keep it simple, use a sandwich board style like this one found on Amazon.

9. iPad for POS (Point of Sale) System

Don't forget you will need something to process payments on! Fewer people carry cold hard cash these days, and if you only take cash as payment, you will miss out on many sales. Many great POS software options connect right to an iPad for easy transactions. We'd suggest getting an iPad if you're serious , as it is the easiest way to process payments via a POS system.

10. Gas Generator (Optional)

Will you need power? If you plan on setting up at a grocery store for the entire summer, the answer may be no. However, if you plan on moving around and going to events, you will need a generator to power your snow cone machine.

Things to consider when choosing a generator:

• How long will a tank of gas last?
• Is it quiet enough not to disturb patrons?
• Does it have enough wattage to power my snow cone machine?
• Is it small enough to move around and not hurt me?

11. Snow Cone Machine Starter Cart With Wheels (Setup Option 1)

12. Vendor Tent With Table (Setup Option 2)

A vendor tent setup is a great and economical option. Not only is it ideal for attending events and parties, but it's easy to tear down and move. You don't need much, and while it may not be the most professional-looking setup, it's a great way to validate your business before putting money into a cart or trailer. The setup consists of an awning and 6-foot plastic table .

13. Full-Service Cart (Setup Option 3)

You get what you pay for, and this cart will save a lot of time and hassle. It has space to comfortably store all your syrups, ice supplies, cups, and everything else. Although it might not be a great option for beginners, the full-service cart will give your set up a serious upgrade.

• A place for snow cone machine
• Compartments for extra crushed ice

The last official step in the guide is securing locations and events to sell your snow cones at. This is an essential step in ensuring the success of the business. Give yourself a chance by researching the best spots to set up.

Parking lots, open food courts & permanent locations

If your primary business plan is to set up in a more permanent setting, you will need to contact the appropriate landlords and negotiate how the money will work. There are two options you could discuss with them:

• Offer to pay them to pay rent for space. Whether it's per day, week, or month, this is a great option. You pay a flat fee no matter how many snow cones you sell.
• Profit Share. Another option is to offer them a royalty per snow cone sold. A royalty system may be fun for some space owners and also take the ease off of paying rent no matter how many you sell. However, if sales don't do well, you might get kicked out of the space.

Remember to be friendly and mention the perks of having you in their space. Snow cones are bright and make people happy. You could potentially draw new customers into their businesses as well as yours.

Public and Private events

Public events can be an ATM for your snow cone venture. They have built-in crowds; people are generally in good moods and looking for a refreshing snack.

These events include things like:

• Street Fairs
• Music festivals

Many vendors make a living just going to events; you can make a lot of money in a short period of time. You will typically pay a flat fee for the tent space. The bigger the event, the bigger the fees tend to be. A larger event also most likely means more people, and that means more snow cone sales.

Private events

Private events are another way to monetize your snow cone business. The benefits of private events are you usually charge a flat rate per event. Taking into consideration things like party size and snow cones allowed per person, you quote them one fee for the entire event. Private events put guaranteed money in your pocket.

Types of private events include:

• Birthday parties
• Family Reunions
• Bar Mitzvah's
• Private Parties

With the steps completed, let's breakdown all the startup costs associated with opening your snow cone business. Keep in mind these costs vary, but we want to provide the most accurate numbers possible. Section one will be total startup costs, and section two will be focusing on COGS (cost of goods sold).

Total Startup Costs: $4,571.75

*To make things simple, we've included Setup Option 2 in the equipment costs (Tent and table setup).

Equipment Costs: $2,976.75

Other costs and fees: $1,595.00.

Adding these together, your total snow cone business startup costs are $4,571.75. You may choose to spend less or more depending on how many snow cones you want to be able to produce. Notice we also included one month's rent at $600 per month.

Total COGS – Cost of Goods (Snow Cones) Sold

Now we get to the fun part, determining the gross profit you will make for every snow cone sold. We will calculate this by adding up every piece that's needed to make up a snow cone order.

We will base it off of one 6oz cone. To get the price per piece, divide the price of the item by the number of items in each pack. IE, a pack of napkins costs $4.99 and has 300 napkins total.

$4.99 / 300 = .016 per napkin. We will round up to make the math easier, and that will also account for mistakes.

Gross Profit Per $3 Cone: $2.55

Total expenses per snow cone.

It's important to remember the expenses also associated with the cost per snow cone. It may be more of a guessing game compared to the supplies. We are basing the expenses on the assumption that you do not have an employee(s).

Net Profit Per Snow Cone: $2.20

When you add up the COGS and expenses, a snow cone ends up costing you .80. That leaves you with a nice $2.20 profit margin. Now, don't take it as an exact science, keep these things in mind:

• A good percentage of your customers will order more than one cone at a time
• You can upsell by offering things like extra syrup flavors or scoops of ice
• Don't forget a tip jar for your cash customers; this can increase your profit margins significantly

With everything planned, you're ready to start your entrepreneurial journey as an official snow cone business owner. Being prepared will help reduce stress as your getting started. You can make great money as a seasonal or full-time vendor. You could even pair it with starting a firewood business side-hustle, and together they can produce a substantial full-time income. Enjoy the sunshine and profits.

This Millennial Transformed One Rental Property Into A Multi-Million Dollar Empire

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How to Start a Profitable Snow Cone Business [11 Steps]

By Nick Cotter Updated Feb 02, 2024

Business Steps:

1. perform market analysis., 2. draft a snow cone business plan., 3. develop a snow cone brand., 4. formalize your business registration., 5. acquire necessary licenses and permits for snow cone., 6. open a business bank account and secure funding as needed., 7. set pricing for snow cone services., 8. acquire snow cone equipment and supplies., 9. obtain business insurance for snow cone, if required., 10. begin marketing your snow cone services., 11. expand your snow cone business..

Before diving into the refreshing world of snow cones, it's crucial to understand the market you're entering. A thorough market analysis will help you identify potential customers, understand competitors, and recognize trends that can shape your business strategy. Here are some steps to guide you through the market analysis for your snow cone business:

• Research the local demand for snow cones by evaluating the number of potential customers in your target area, such as families, teenagers, and tourists.
• Analyze your competition by visiting other snow cone stands or similar businesses, noting their product offerings, prices, and marketing tactics.
• Look into seasonal trends and weather patterns, as these can significantly affect the consumption of snow cones.
• Assess the location opportunities for setting up your stand, considering foot traffic, accessibility, and proximity to parks, schools, or event venues.
• Survey potential customers to gather insights on flavors, price points, and purchase frequency to tailor your offerings accordingly.
• Stay informed about health regulations and permits required to operate a food business within your municipality.

Are Snow Cone businesses profitable?

Yes, snow cone businesses can be profitable. However, success depends on a number of factors such as location, pricing, and marketing. Additionally, the cost of supplies, labor, and overhead can affect the profitability of a snow cone business.

Starting a snow cone business can be an exciting and profitable venture, especially in warm climates or during the summer season. A well-crafted business plan is crucial as it will serve as a roadmap for your business and help you stay on track. Here's a guide to help you draft an effective snow cone business plan.

• Define your business goals, objectives, and vision to clarify what you want to achieve with your snow cone business.
• Analyze your target market, including demographics, preferences, and buying habits to tailor your offerings to your customers' needs.
• Outline your snow cone flavors, products, and any additional services you plan to offer, emphasizing what makes your business unique.
• Develop a marketing and sales strategy that includes branding, promotional activities, and sales channels (e.g., storefront, mobile truck, online).
• Plan your operations, detailing the equipment needed, suppliers, production process, and staffing requirements.
• Prepare financial projections, such as startup costs, pricing, revenue streams, profit margins, and break-even analysis.
• Identify potential risks and challenges, and prepare contingency plans to address them.

How does a Snow Cone business make money?

A snow cone business typically makes money by selling snow cones at a fixed price. Depending on the size of the business, additional items like ice cream, toppings, drinks, and other snacks may be sold to increase revenue.

Creating a unique and appealing brand is crucial for your snow cone business as it sets you apart and communicates your company's identity to consumers. Your branding should resonate with your target audience, reflect the quality of your product, and be consistently applied across all marketing materials. Here's how you can develop your snow cone brand:

• Choose a memorable name: Your brand name should be easy to remember, pronounce, and spell. It should also evoke the refreshing and fun nature of snow cones.
• Design a vibrant logo: Develop a logo that captures the essence of your snow cones – think bright colors, icy imagery, and a font that aligns with your brand's personality.
• Establish your brand's voice: Decide on the tone and language you will use in your marketing materials. Whether it's playful, whimsical, or health-conscious, ensure it's consistent across all platforms.
• Create a color scheme: Pick colors that are attractive and stand out, but also reflect the coolness and variety of flavors you offer.
• Develop packaging and presentation: Your cups, napkins, and serving stations should all incorporate your brand elements, creating a cohesive customer experience.

How to come up with a name for your Snow Cone business?

When coming up with a name for your snow cone business, it is important to consider what makes your business unique. Brainstorm a list of words that describe what you offer and how you want your customers to feel. Try to create a name that is catchy, easy to remember, and relevant to your business. Finally, make sure to research and check that the name you choose isn't already taken so you can stand out from the competition.

Once you’ve developed your business plan and secured your financing, the next crucial step is to formalize your snow cone business registration. This process will vary depending on your location and the legal structure you choose. Here's a general guide to help you through the registration process:

• Choose a business structure (e.g., sole proprietorship, LLC, corporation) that best fits your needs and understand the liability and tax implications of your choice.
• Register your business name with the appropriate state agency, ensuring it is unique and not already in use.
• Obtain an Employer Identification Number (EIN) from the Internal Revenue Service (IRS) for tax purposes, even if you don't plan to have employees.
• Apply for the necessary permits and licenses, which may include a business license, a food vendor's license, and a health department permit.
• Understand and plan for the sales tax requirements in your state by registering with the state's taxation or revenue department.
• Ensure you are compliant with local zoning laws and regulations, particularly if you plan to operate your business from a fixed location.

Resources to help get you started:

Explore invaluable resources distinctively curated for snow cone entrepreneurs, featuring market trends, operational best practices, and strategic growth advice:

• International Association of Amusement Parks and Attractions (IAAPA) : Offers insights into the amusement park and entertainment industry, beneficial for snow cone vendors targeting these venues. Visit IAAPA .
• National Ice Carving Association : Provides information on events and networking opportunities which can be pivotal for sourcing and creativity in snow cone presentations. Visit NICA .
• Small Business Administration (SBA) : Offers comprehensive guides on starting and managing a small business, including financial advice and marketing strategies. Visit SBA .
• Food & Beverage Magazine : Provides the latest trends, strategies, and news in the food and beverage sector, crucial for innovative flavor and marketing ideas. Visit Food & Beverage Magazine .
• Entrepreneur Magazine : Offers a wealth of information on business strategies, marketing, and growth hacking tips which can be applied to the snow cone industry. Visit Entrepreneur Magazine .

Starting a snow cone business requires due diligence in obtaining the proper licenses and permits to ensure that your operation is legal and compliant with local, state, and federal regulations. Depending on your location, the requirements may vary, so it's essential to research and understand what's needed for your specific area. Here are some key steps to take:

• Business License: Register your business and obtain a general business license from your city or county clerk's office.
• Health Department Permit: Since you'll be selling food, a health department permit is usually required. This involves an inspection to ensure you meet health and safety standards.
• Sales Tax Permit: Register for a sales tax permit through your state's revenue agency to collect and remit sales tax.
• Food Handler's Permit: You and your employees may need to complete a food safety course to obtain a food handler's permit.
• Mobile Vendor Permit: If you plan to operate a mobile snow cone stand, you'll need a permit for vending in public spaces.
• Zoning Permits: Check with local zoning authorities to ensure your business location is zoned for commercial use, if applicable.

What licenses and permits are needed to run a snow cone business?

The exact licenses and permits needed to run a snow cone business will depend on the location of the business and local laws. Generally, most states and municipalities require businesses to obtain a sales tax permit, as well as a business license. Additionally, food businesses may need to obtain additional permits or licenses from the health department. Depending on where your business operates, you may also need to obtain other licenses or permits, such as a vendor permit or special use permit from your local municipality.

For a snow cone business, managing finances effectively is critical to ensure smooth operations and growth. Opening a dedicated business bank account and securing the right funding can set your venture on the path to success. Follow these steps to get your financial foundation in place:

• Research banks: Compare fees, services, and convenience among local banks and credit unions that offer business banking accounts.
• Gather required documents: You'll typically need your business registration documents, EIN (Employer Identification Number), and personal identification to open an account.
• Open the account: Choose a bank that aligns with your business needs and open a checking account to handle daily transactions.
• Understand your funding needs: Assess how much capital you'll need to start and operate your snow cone business until it becomes profitable.
• Explore funding options: Consider small business loans, lines of credit, investors, crowdfunding, or personal savings to finance your startup costs.
• Prepare a strong pitch: If you're seeking investors or loans, develop a compelling business plan that highlights the profitability and growth potential of your snow cone business.
• Apply for funding: Once you've determined the best funding source, gather all necessary paperwork and apply according to the lender's or investor's requirements.

Setting the right price for your snow cone services is crucial for attracting customers and ensuring a profitable business. Consider both the cost of production and your target market's price sensitivity. Here are some guidelines to help you determine the best pricing strategy:

• Calculate Costs: Add up the cost of ingredients, equipment, labor, and overhead to establish a baseline for your pricing.
• Competitor Analysis: Look at the pricing of nearby snow cone businesses to stay competitive without significantly undercutting your profit margins.
• Value-Based Pricing: If you're offering unique flavors or premium ingredients, don't be afraid to price higher to reflect the added value.
• Dynamic Pricing: Consider having special offers during less busy hours or days to attract more customers.
• Size Options: Offer different sizes at various price points to cater to different customer preferences and budgets.
• Seasonal Adjustments: Be prepared to adjust prices for seasonal demand fluctuations, especially during the hottest months.
• Customer Feedback: Listen to customer feedback regarding prices and adjust accordingly to find the sweet spot between affordability and profitability.

What does it cost to start a Snow Cone business?

Initiating a snow cone business can involve substantial financial commitment, the scale of which is significantly influenced by factors such as geographical location, market dynamics, and operational expenses, among others. Nonetheless, our extensive research and hands-on experience have revealed an estimated starting cost of approximately $4000 for launching such an business. Please note, not all of these costs may be necessary to start up your snow cone business.

Starting a snow cone business requires careful selection of the right equipment and supplies to ensure you're able to produce high-quality, delicious treats for your customers. From the snow cone machine to syrups and cups, each component plays a crucial role in your operation. Consider the following essentials when gathering your snow cone business equipment and supplies:

• Snow Cone Machine: Invest in a durable, commercial-grade snow cone machine that can handle high volumes of ice shaving.
• Ice: Ensure a consistent supply of high-quality ice. If your volume is high enough, consider an industrial ice maker.
• Syrups: Stock a variety of flavors of snow cone syrup, including popular and unique options to satisfy diverse customer tastes.
• Cups and Cones: Purchase a range of sizes and styles of cups and cones, including eco-friendly or biodegradable options.
• Spoons and Straws: Provide customers with spoons or straws for convenience, considering color variety or novelty shapes for added appeal.
• Napkins and Gloves: Maintain cleanliness with ample napkins for customers and gloves for employees to handle food safely.
• Storage Containers: Acquire containers for both dry and refrigerated storage of supplies and leftover syrup.

List of Software, Tools and Supplies Needed to Start a Snow Cone Business:

• Snow Cone Machine
• Shaving Blades
• Flavored Syrups
• Point of Sale System
• Credit Card Processing Software
• Inventory Tracking Software
• Accounting Software

Securing the right insurance is a crucial step in safeguarding your snow cone business against unforeseen events. It provides peace of mind and ensures that you're protected financially in case of accidents, lawsuits, or other liabilities. Here are some types of insurance you might consider:

• General Liability Insurance: Protects against claims of bodily injury or property damage that can occur during business operations.
• Product Liability Insurance: Covers claims related to illnesses or injuries caused by the snow cones you sell.
• Commercial Property Insurance: Insures your physical assets, such as your snow cone stand or equipment, against loss or damage.
• Business Interruption Insurance: Provides compensation if your business is unable to operate due to covered events like fire or natural disasters.
• Workers' Compensation Insurance: Required if you have employees, it covers medical costs and lost wages for work-related injuries or illnesses.
• Commercial Auto Insurance: If you use a vehicle for your business, this insurance covers damages from accidents while on the road.

Consult with an insurance agent who specializes in small businesses to determine the specific coverage that suits your snow cone business needs.

Once you've established your snow cone business and are ready to attract customers, it's crucial to kick off your marketing efforts. A well-crafted marketing strategy will help you reach your target audience and create buzz around your refreshing offerings. Here are a few strategies to consider:

• Utilize Social Media: Create engaging content on platforms like Instagram, Facebook, and Twitter to showcase your snow cones, promotions, and special events.
• Local Advertising: Invest in local advertising through flyers, posters, and ads in community publications to reach potential customers in your area.
• Word of Mouth: Encourage satisfied customers to spread the word. Offer a referral discount to incentivize sharing.
• Participate in Events: Attend local fairs, festivals, and markets to introduce your product to a broader audience.
• Collaborate with Other Businesses: Partner with local businesses to offer your snow cones at their events or locations.
• Email Marketing: Collect emails and send out newsletters with special offers and updates to keep customers engaged.
• Loyalty Programs: Create a loyalty program to reward repeat customers and encourage frequent visits.

Once your snow cone business has found its footing and you have established a steady stream of customers, it's time to consider expansion. This next step is all about scaling up, reaching new markets, and increasing your revenue. Here are some strategic ways to expand your snow cone business:

• Mobile Units: Invest in food trucks or carts to take your snow cones to various locations such as festivals, parks, and events.
• New Flavors and Products: Experiment with new and unique flavor combinations or add complementary treats like ice cream to your menu.
• Catering Services: Offer catering options for private parties, corporate events, and special occasions to reach a larger audience.
• Franchise Your Business: If your brand is strong, consider franchising to entrepreneurs who can help expand your business to new areas.
• Seasonal Promotions: Create special promotions during holidays or local events to attract more customers and boost sales.
• Online Presence: Enhance your online presence with a website and social media marketing to engage with customers and promote your business.
• Partnerships: Collaborate with local businesses or venues to offer exclusive deals and increase visibility.

• Business Ideas
• Registered Agents

How to Start a Snow Cone Business in 14 Steps (In-Depth Guide)

Updated:   January 23, 2024

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The frozen dessert market is constantly growing. In the United States, the industry reached an evaluation of $30.95 billion in 2021 . It’s projected to continue to grow at a compound annual growth rate (CAGR) of 4.6% between 2022 and 2030.

Starting a snow cone business requires planning and know-how, but the potential profits are well worth the effort. Where do you begin? This guide covers the essential steps, from obtaining permits to buying equipment to developing tasty syrup recipes. You’ll learn insider tips on choosing a profitable location and low-cost marketing tactics to attract hordes of customers.

This guide offers detailed information on how to start a snow cone business. Topics include sourcing a snow cone machine, registering an EIN, obtaining business insurance, performing market research, and more. Here’s everything you need to know to open a mobile snow cone business.

1. Conduct Snow Cone Market Research

Market research is important for any successful business selling snow cones. It offers insight into the equipment needed to sell snow cones, popular trends in the snow cone service market, your target market, and more.

Some of the details you’ll learn about shave ice during your market research include:

• Snow cone sales are highest in southern states with hotter climates like Texas, Florida, and California.
• Snow cone stands can thrive anywhere that sees summer temperatures reach 80 degrees Fahrenheit or higher. Customer reach can be expanded by partnering with candy businesses and ice cream trucks .
• Locations near schools, parks, beaches, festivals, and other high-foot-traffic areas are ideal.
• The startup costs for a basic snow cone stand are relatively low compared to other food businesses, typically ranging from $1,000-$5,000.
• Low overhead and the seasonal nature make snow cone stands a fairly low-risk business venture.
• Gourmet snow cone shops are a growing niche, using natural syrups and exotic flavors like rose water or taro to command premium pricing upwards of $5-7 per cone.
• Food trucks and carts also present an opportunity to take the business on the road and access new events and locations.
• Creative and eye-catching branding and marketing across social media, print materials, and in-store displays are key to standing out from competitors.
• Building a loyal customer base through friendly service and consistent quality will keep people coming back all summer long.
• The snow cone industry is ripe for innovation and growth beyond tradition. Consider offering homemade juices (e.g. orange juice or lemonade) during the summer.

With minimal barriers to entry and operations, snow cone stands present a solid seasonal small business opportunity. The potential for quick profits and managing predictable workflow makes it an ideal model for first-time entrepreneurs.

2. Analyze the Competition

Doing your homework on the competition is critical to success in the snow cone business. First, identify existing snow cone stands in your geographic target area. Drive around town and map out their locations, making notes on traffic levels and visible cues about their business volume.

Some ways to get to know your competition selling shaved ice include:

• Search online directories like Yelp and Google Maps to find snow cone vendors’ listed information and customer reviews.
• For brick-and-mortar stands, visit them anonymously as a customer.
• Pay attention to their opening hours, staffing, order fulfillment processes, store layout, and merchandising.
• Snap some photos of their signage and marketing materials for later reference.
• Evaluating competitors’ online presence is also instructive. Search for their website and social media accounts. Analyze engagement levels, posting frequency, promotion tactics, and brand messaging. Run their website through an SEO tool like Moz to assess search visibility.
• Compile your research into a spreadsheet comparing key elements like pricing, flavors, brand vibe, location, online ratings, and traffic.
• Identify potential gaps or areas where a new entrant could differentiate.

This competitive analysis illuminates where opportunities exist to win over customers. You can use it to shape your value proposition, presentation, flavors, pricing, and service style. Ongoing competitor monitoring lets you stay up-to-date on their activities and adapt appropriately.

3. Costs to Start a Snow Cone Business

When launching a snow cone stand, the initial investments include equipment, setup fees, and working capital until revenue starts flowing.

Start-Up Costs

Typical start-up costs range from $1,000-$5,000. Here’s a breakdown of expected expenses:

• Ice shaver machine – $300-$1,000 for a high-capacity electric or hand-cranked model
• Paper cones – $100 for a case of 5,000 cones
• Syrup pumps – $50-$100 each for commercial-grade pumps
• Point-of-sale system & printer – $200-$500 for an iPad set-up
• Signage – $100-300 for an outdoor banner and printed menu
• Umbrellas, tables, coolers, generators – $300-$500
• Initial ingredients – $100-200 for first batches of syrups, cups, napkins

Setup & Licensing

• Business license – $50-$100
• Food permit – $100-$300
• Sales tax permit – $20
• Fire inspection – $50-$150

Working Capital

• 1-2 months operating expenses as a buffer – approximately $2,000-$3,000

Total Estimated Start-up Costs: $3,000-$5,000

Ongoing Costs

Ongoing expenses will include variable costs of goods sold like syrups and cups, fixed overhead like rent and utilities, payroll, insurance, and other recurring expenses.

Variable Costs

• Syrup ingredients – approximately $0.20 per snow cone
• Cups – $0.10 per cone
• Napkins and other disposables – $50 per month

Fixed Overhead

• Rent – $500-$1,500 per month retail space
• Utilities – $150-$300 per month
• Insurance – $100-$250 per month
• Bookkeeping & accounting services – $100-$200 per month
• Employee wages & benefits for 1-3 workers – $2,000-$4,000 per month
• Advertising – $100-300 per month (flyers, social media, sign spinners, etc)
• Website hosting, email services, etc – $50 per month

Putting this all together, monthly ongoing expenses often range from $3,000-$6,000. Be sure to account for slower winter months with lower revenue. An emergency fund provides a buffer for unexpected costs.

4. Form a Legal Business Entity

When starting a snow cone business, choosing the right legal structure is an important decision. The four main options each have pros and cons to weigh.

Sole Proprietorship

A sole proprietorship is the simplest and most common structure for small businesses. You operate as an individual owner reporting profits/losses on your tax return.

• Pros: Easy and inexpensive to set up. Complete control over decisions. Minimal paperwork.
• Cons: Unlimited personal liability for debts and lawsuits. Harder to raise investment capital. Limited ability to deduct expenses. Difficulty transferring ownership.

Partnership

A partnership splits ownership between 2 or more people, as outlined in a partnership agreement. Profits are passed through to partners to report on their tax returns.

• Pros: Easy to establish. Shared capital and managerial responsibilities.
• Cons: Unlimited personal liability for each partner. Disagreements between partners. Hard to bring in new partners or transfer ownership.

Limited Liability Company (LLC)

An LLC combines aspects of partnerships and corporations. Owners have limited personal liability and report profits/losses on their tax returns.

• Pros: Owners are protected from personal liability. Flexible management structure. Easy to add owners or sell interest. Credibility of legal entity. Ability to attract investors.
• Cons: More complex to establish with paperwork and fees. Must follow the operating agreement. Self-employment taxes.

Corporation

A corporation is a legal entity owned by shareholders. The business pays corporate taxes on profits. Owners only pay taxes on dividends.

• Pros: Limited liability for owners. Ability to sell stock and continuity of business. Potential tax benefits. Credibility for large operations. Access to public stock markets for funding.
• Cons: Most complex and expensive to set up and maintain. Double taxation on profits. Extensive record-keeping and reporting requirements.

5. Register Your Business For Taxes

One key legal step for new business owners is obtaining an Employer Identification Number (EIN) from the IRS. This unique number identifies your business for tax and reporting purposes.

An EIN is required to open business bank accounts, apply for licenses, hire employees, and file taxes. As a snow cone stand owner, you must get an EIN even if you won’t have workers right away.

Thankfully, requesting an EIN is quick and free through the IRS website. Simply follow these steps:

• Go to IRS EIN Assistant and answer a few questions about your business structure.
• Select whether you want an EIN for an individual, corporation, LLC, partnership, etc.
• Provide basic information about your snow cone business like name and address.
• When prompted, print out the confirmation page with your new EIN.

The entire process can be completed online in just a few minutes. Make sure to keep the EIN confirmation securely filed along with other important business documents.

You’ll also need to visit your state’s website to register for sales tax collection. This ensures you can comply with remitting sales tax on snow cone purchases. Filing for sales tax only takes minutes and there is no fee – it just keeps your business above board.

6. Setup Your Accounting

Keeping accurate financial records is crucial for any small business, including snow cone stands. Investing in accounting software and an accountant from the start will save major headaches down the road.

Accounting Software

Begin by getting user-friendly accounting software like QuickBooks to track all transactions and run reports on profitability, taxes owed, etc. Linking the software to business bank/credit card accounts allows for seamless import of revenue and expenses. This automation saves tons of time and minimizes errors.

Hire an Accountant

Consider hiring an accountant to handle bookkeeping, payroll, quarterly taxes, and preparing year-end financial statements. Expect to pay $100-$200 per month for basic bookkeeping services. Come tax time, they can file your business returns for $500-$1,000.

Open a Business Bank Account

Make sure to keep business and personal finances completely separate. Open a dedicated business checking account that all revenue flows into and expenses are paid. Never co-mingle money to simplify accounting.

Apply for a Business Credit Card

Apply for a business credit card in your company’s name only. This streamlines tracking business purchases. Limits are based on your company’s financials rather than personal credit score.

7. Obtain Licenses and Permits

Before serving your first snow cone, it’s crucial to make sure all required licenses and permits are in order. Find federal business requirements through the U.S. Small Business Administration . The SBA also offers a local search tool for state requirements.

• Business License: Check with your city or county clerk’s office to obtain a general business license. This certifies your snow cone stand as an official commercial operation. Requirements and fees vary by location but expect to pay $50-$100.
• Food Service Permit: Because you are serving food, a permit from the health department is mandatory. This verifies you meet sanitation, prep space, and food safety standards. The application process may include an inspection and paying $100-$300 in fees.
• Umbrella Insurance: Snow cone stands typically need commercial general liability coverage starting at $1 million. This protects against risks like a customer getting injured on your property. Umbrella insurance also covers legal expenses if you get sued. Expect to pay at least $400 annually.
• Fire Safety Inspection: If operating out of a building rather than a food cart, you’ll need an inspection by the fire marshal to get a certificate of occupancy. They check for sufficient extinguishers, emergency exits, and fire safety rules. Re-inspection fees apply until you pass.
• Trade Name Registration: Register your snow cone business name and branding with the county clerk to make it officially your legal trade name. This verifies you have the rights if any trademark disputes arise. The registration process takes minutes for around $50 in fees.
• Music Licensing: To legally play music in your store or truck, you need public performance licenses from organizations like ASCAP and BMI. Fees vary based on factors like location capacity.
• Vendor Permits: Check if any vendor permits are needed to operate at events like festivals, fairs, and farmers markets. Typically a one-time fee per event in the $100-$500 range.

Stay in compliance by keeping all licenses and permits current. Display them prominently in your shop or truck. The bureaucratic legwork is tedious but worth it to avoid violations.

8. Get Business Insurance

Operating a food business like a snow cone stand comes with inherent risks. Having proper insurance coverage protects your company’s finances if the worst happens.

General liability insurance covers costly slip-and-fall or food poisoning lawsuits from customers. Property insurance replaces damaged or stolen equipment and inventory. Business interruption insurance provides income if you’re forced to close temporarily after a disaster.

Without adequate coverage, a single incident could quickly put you out of business:

• A customer breaks a tooth on an ice chunk in their snow cone and sues your LLC for $100,000 in medical bills.
• A power surge fries your ice machine, point-of-sale system, and other electronics, costing $5,000+ to replace.
• A foodborne illness outbreak is traced back to your stand, forcing a 2-week shutdown right before peak summer revenue season.

Comprehensive insurance gives peace of mind your business can survive unforeseen catastrophes. Shop small business policies offered by providers like Travelers and The Hartford .

To get covered, provide details on your operations, location, risks, and coverage needs. Expect to pay $100-$300 per month. Review policy terms closely and ask your agent to clearly explain coverages.

Install safety and security measures like CCTV cameras, alarms, and slip-resistant flooring to get lower premiums. Maintaining proper insurance is a fundamental part of risk management as a snow cone stand owner. Don’t cut corners to save money in the short term when your livelihood is on the line.

9. Create an Office Space

While much of your operations are on the go, securing office space can provide a designated hub for administrative work as a snow cone stand owner.

Home Office

A home office is the most convenient and affordable option starting. Expect costs of $100-200 for a desk, computer, phone, filing cabinet, and supplies. Use a spare room or corner of your living space to handle paperwork, bookkeeping, marketing, etc. in off-peak hours. However, home offices can suffer from distractions and a lack of professionalism in meetings.

Coworking Office

For a more collaborative environment, consider a coworking space like WeWork . Open desk memberships start around $300/month. You’ll gain access to office equipment, conference rooms, events, and networking with other entrepreneurs. It’s still cost-effective but focused solely on work.

Retail Office

If you operate a brick-and-mortar snow cone shop, carving out a small back office could double as inventory storage when not in use. Just be sure to keep it separate from food prep areas.

Commercial Office

Leasing traditional office space in a commercial building provides the most professional setting but isn’t essential early on. Expect to pay at least $1,000/month for a private office in a shared suite. Useful when hiring employees or meeting with partners.

10. Source Your Equipment

A snow cone stand needs just a few key pieces of equipment to get up and running. Here are some of the best places to source essential items at affordable prices:

Online restaurant supply stores like WebstaurantStore and KaTom offer commercial-grade machines straight from the manufacturer. Expect to pay $300-$1,000 for a quality electric ice shaver and $50-$100 per syrup pump. Benefits include warranty support, reliability, and customization.

Buying Used

Used equipment often provides major cost savings over new. Check restaurant auction sites like NextLot . Also, browse Craigslist and Facebook Marketplace listings in your area. Meet in person to inspect the condition before purchasing. Be prepared to pay $200-$500 for a used ice shaver and $25-$50 per syrup pump.

Consider renting specialized machines like ice shavers for the duration of the snow cone season. Rental companies offer flexible short-term contracts. This avoids large upfront costs when getting started. Downsides include wear-and-tear fees and older selection.

Leasing through an equipment financing company allows you to pay affordable monthly installments for 1-5 years. This preserves capital in the early stages. Approval is based on business financials. Costs are similar to buying new after interest fees. Ownership transfers to you after the lease ends.

11. Establish Your Brand Assets

Crafting a strong brand identity is crucial for standing out in the snow cone industry. Investing in professional assets makes your business look polished and builds customer recognition.

Getting a Business Phone Number

A dedicated business phone number adds legitimacy versus using a personal cell. VoIP providers like RingCentral offer toll-free and local numbers with call management features starting around $30/month.

Creating a Logo and Brand Assets

A logo crystallizes your brand into an iconic image. For snow cone stands, lively color palettes and playful fonts suit the fun treats. Services like Looka make logo design quick and affordable.

Ensure branding is cohesive across signage, staff shirts, cups, website, and more. Repeated visual exposure embeds your business in customers’ minds.

Creating Business Cards and Signage

Business cards enable quick sharing of contact info and social media links for follow-up marketing. Vibrant designs with tempting photos help. Order 500 basic cards from Vistaprint for around $20.

An outdoor street sign advertises your location to passerby traffic. Place big, bold banners near your ordering window displaying the menu, brand name, and contact info.

Purchasing a Domain Name

Secure a domain name that matches your brand for a professional online presence. Short, simple domains like YourSnowConeShop.com are best. Use a registrar like Namecheap for secure registration starting around $15/year.

Building a Website

A website informs customers online and allows them to take orders. Use a user-friendly website builder like Wix to create your site yourself. Or hire a skilled designer on Fiverr starting around $500.

Having a consistent visual identity and professional collateral gives your snow cone stand instant credibility with customers. Invest time and creativity into branding for a memorable impression.

12. Join Associations and Groups

Joining relevant organizations is a smart way to network with other snow cone pros and learn insider tips. Here are some great resources for connecting locally:

Local Associations

Look for city or regional mobile food and concession associations that snow cone vendors can join. These provide educational events and lobby for the industry. For example, the North American Ice Cream Association .

Attend association trade shows and conferences to meet fellow members. Share stories and build relationships with those running stands in your area.

Local Meetups

Websites like Meetup list food trucks and concession meetups happening nationwide. Joining these informal gatherings enables chatting with others in your shoes. Bounce around ideas and commiserate over common obstacles.

Facebook Groups

Search Facebook for private groups related to operating food carts and stands in your state or city. Post questions and read conversations for street vending insights. There are also national niche groups like Snow Cone Group filled with seasoned advice on everything from syrup recipes to managing employees.

13. How to Market a Snow Cone Business

Effective marketing is essential for driving sales growth as a new snow cone stand owner. While your product and service quality are most important, you must also master promotional strategies to reach more customers.

Tap into your network first. Incentivize happy customers to refer friends and family with a free snow cone for every new referral. Word-of-mouth is your best advertisement.

Here are some other savvy ways to get the word out:

Digital Marketing

• Run Google and Facebook ads targeted locally by factors like age, interests, and location. Highly trackable.
• Create fun YouTube videos showing your stand’s atmosphere and mouthwatering cones.
• Promote new flavors, events, and offers on Instagram and TikTok. Use hashtags to expand reach.
• Send email newsletters with deals and announcements to collect email signups. Offer a free snow cone for joining.
• Partner with local influencers to review your stand or host a takeover on their social media.
• List your business on directories like Yelp, Google My Business, and Tripadvisor. Respond promptly to all reviews.

Traditional Marketing

• Distribute printed flyers and coupons at schools, youth sports games, and local events.
• Seek sponsorships with Little League teams, PTAs, and charities. Offer discounted snow cones at their events.
• Rent a billboard or advertise on buses/benches near high-traffic areas like beaches and parks.
• Run radio spot ads on local stations leading up to summer.
• Set up samplings at grocery stores, fairs, etc so people can taste your snow cones.

With a savvy marketing plan combining digital promotion and real-world exposure, your snow cone stand can gain recognition and loyalty across your community. Track results meticulously to double down on what works.

14. Focus on the Customer

Providing exceptional customer service is crucial for snow cone stands to drive sales growth through word-of-mouth referrals and repeat business.

Satisfied customers will rave about their experience at your stand to friends, family, and online. This organic promotion is your most valuable marketing asset. Dissatisfied customers will also spread negative reviews faster than wildfire, hampering your reputation.

Some ways to improve customer focus in the shaved ice business industry include:

• Greet everyone with a smile and friendly chat at the window. Get to know regulars by name.
• Bring kids cups of ice or snow cone samples while parents wait.
• Apologize sincerely for any order mixups. Offer a free snow cone voucher.
• Have assistants bring orders directly to cars/tables so parents can relax.
• Follow up by email with a coupon after their first visit to incentivize return trips.

Providing prompt, personable service shows customers you care. The visionary Disney CEO Michael Eisner famously said “Do what you do so well that they will want to see it again and bring their friends.” This rings true for snow cone stands.

Deliver a five-star experience that gives people a cool, sweet respite from the summer heat. Your customers will become your best brand advocates.

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How to Start a Snow Cone Business | Ultimate Guide 2023!

As the summer sun beats down, chilled treats soothe sweltering spirits. Snow cones, with their mountains of flavored shaved ice, provide the perfect refreshment when temperatures rise. Now is the perfect moment to start your own snow cone business and turn your passion into money.

Get the inside scoop on creating a snow cone empire from scratch with the help of this thorough manual. We will cover all the essentials – from developing a strategic business plan and estimating startup costs to obtaining permits, sourcing equipment, and effectively marketing your frozen oasis.

Whether you want to operate a small snow cone cart or open a brick-and-mortar shop. You will learn how to stand out from the competition and keep customers flocking to your operation all season long. 

Follow our tips to create signature syrups, develop addictive flavors, and turn your entrepreneurial dreams into a chill summertime reality. With demand peaking, get ready to beat the heat and reap rewards with your own snow cone venture.

Table of Contents

What is a Snow Cone Business?  

A snow cone business is a venture that specializes in selling snow cones, a popular frozen dessert made from shaved ice flavored with syrup. Whether you operate from a snow cone stand, a mobile snow cone cart, or even a food truck, this business caters to a wide audience looking for a refreshing treat.

The business model can vary, ranging from a single snow cone machine in a small kiosk to a large shaved ice business with multiple locations. It’s not just a summer business; with the right business plan and marketing strategies, you can make it a year-round enterprise. From business licenses and permits to startup costs, there’s a lot to consider, but the potential for profit is significant.

Why Start a Snow Cone Business? 

• High Demand : Especially in the summer heat, snow cones are always in demand.
• Low Startup Costs : Initial startup costs for a snow cone business are relatively low.
• Easy to Operate : You don’t need a culinary degree to run the business.
• Profit Margins : High-profit margins make it a profitable snow cone business.
• Mobility : With a mobile snow cone cart, you can go where the customers are.
• Business Structure : Flexibility in choosing your business structure, be it a sole proprietorship or LLC.
• Licenses and Permits : Easier to obtain necessary business licenses and permits compared to other food businesses.
• Expandable : Easy to scale and even diversify into shaved ice or other frozen treats.
• Community Engagement : A great way to engage with the community and even cater to local events.

Benefits of Starting a Snow Cone Business 

• Quick ROI : The cost of goods is low, leading to a quick return on investment.
• Seasonal Peaks : High sales during summer can sustain the business throughout the year.
• Family-Friendly : Appeals to all age groups, increasing your customer base.
• Customization : Opportunity to offer different flavors of snow cones, setting you apart from competitors.
• Low Overheads : Operating a snow cone stand or cart has lower overhead costs.
• Location Flexibility : Whether your business is located in a mall or a beach, snow cones sell.
• Easy Marketing : Promote your snow cone business easily through social media and local events.
• Job Creation : As the business grows, you can employ more people.
• Lifestyle Business : Offers a fun and relaxed lifestyle while still being a solid business.

Start a Snow Cone Business with the following Easy 03 Steps:

Crafting a Strategic Business Plan for Your Snow Cone Venture

A well-defined business plan is a roadmap to snow cone success. This guide will steer you through each stage of getting your operation up and running.

Importance of a Business Plan

• Clarity: A business plan is the cornerstone of your snow cone business, offering a structured approach from startup to profitability.
• Investor Appeal : A well-documented plan can attract investors and secure funding.

Estimating Startup Costs and Requirements

Research all expected startup costs including permits, business licenses, equipment, inventory, insurance, and other expenses. Allocate sufficient budget for a high-capacity snow cone machine that can efficiently shave fine, fluffy ice. Also factor in costs for generators, signage, registers, and any cart or store fixtures needed.

Choosing the Optimal Business Structure

Decide the ideal business structure aligned to your goals, whether sole proprietorship, partnership, LLC, or corporation. Consult local regulations as each option has different legal and tax requirements. Branding : Your business name and logo should resonate with your target audience.

Developing Financial Projections

Create detailed financial forecasts estimating sales, costs, and profit potential. Thoroughly analyze pricing strategies and predict demand based on location, competition, and other variables.

Defining Operations and Marketing Strategies

Outline staffing needs, menu offerings, equipment requirements, and daily processes. Define your target audience and craft an integrated marketing plan to attract and retain customers.

Setting Up Your Snow Cone Operation for Success

Once you have a solid business plan in place, it’s time to tackle the logistics of getting your snow cone operation up and running. Follow these key steps:

Obtaining Permits and Registering Your Business

Don’t skip this critical first step! Research all required local, state, and federal permits and food service licenses. Also officially register your business structure and apply for tax IDs. This legitimizes your business and ensures compliance from the start.

Purchasing High-Quality Equipment

• Snow Cone Machine : Your snow cone maker is the star of the show; invest in a quality one.
• Power Up : Depending on your setup, you may need generators to power your snow cone machine.
• Mobile or Stationary : Decide between a snow cone cart, food truck, or a permanent snow cone stand.

Source generators, point of sale systems, signs, carts, freezers, and all other vital equipment. Shop around for good deals but don’t compromise on items that impact operations.

Location is King: Finding the Perfect Spot

Carefully scout locations with heavy foot traffic like parks, boardwalks, busy intersections, events, etc. Consider ease of access for customers and suppliers. Sign an affordable lease that aligns with sales projections.

Designing Your Snow Cone Oasis

Strategically design your cart or shop’s layout for smooth customer flow. Use visual elements like colors, signage, and displays to define your brand. Maintain cleanliness and an inviting ambiance.

Building Your Team: Staffing and Training Essentials

Take time to recruit friendly, customer-focused staff. Thoroughly train them on equipment, processes, safety, and customer service protocols. Invest in a stellar team to give your operation an edge.

Stocking the Essentials: Supplies and Inventory

Finally, source high-quality ingredients for syrups and flavorings and partner with reliable vendors to ensure constant inventory. Including:

• Flavors and Cones : Offer a variety of different flavors of snow cones to cater to diverse customer preferences.
• Additional Supplies : Stock up on cones, cups, spoons, straws, and other essentials to ensure you’re ready for business.

Boosting Sales Through Smart Marketing and Growth Strategies

Effective marketing and incremental growth will help your snow cone business thrive. Consider these proven tactics:

Digital Footprint: Social Media and Promotions

• Spread Awareness : Utilize social media platforms to promote your snow cones and attract a larger audience.
• Promotions : Run special offers or discounts to incentivize new customers to try your snow cone offerings.

Community Engagement: Partnering with Local Businesses and Sponsors

• Local Partnerships : Collaborate with local businesses to market your snow cone business and potentially share customer bases.
• Sponsorships : Seek sponsorship opportunities to promote your snow cone venture and gain wider recognition.

Scaling Up: Expansion Strategies

• Food Trucks : Consider expanding your snow cone business through food trucks for mobile sales .
• Multiple Locations : If one snow cone stand is successful, why not more? Look into opening additional locations.
• Catering : Offer snow cone catering services for events to diversify your income streams.

Customer Retention: Loyalty Programs and Feedback

• Loyalty Programs : Implement customer loyalty programs to encourage repeat snow cone sales.
• Feedback Surveys : Use customer feedback to continually improve your snow cone business.

Quality and Service: The Pillars of Success

• Maintain Quality : Consistency is key; always offer high-quality snow cones.
• Update Offerings : Keep your menu fresh by introducing new snow cone flavors .
• Excellent Service : Customer service can make or break your snow cone business; train your staff accordingly.

Starting a successful snow cone business takes careful planning, commitment, and hard work. But the reward is reaping profits from bringing joy to customers with every sweet, icy bite. With the knowledge you have gained from this manual, you can now create a strategic business plan, get licenses, buy equipment, locate your business in a desirable area, recruit staff, advertise your store, and expand your empire. Now that you have the resources, you can make money from your interest.

So don’t just dream about owning your own snow cone oasis – take action and dive in today! With demand rising under the summer sun, it’s the perfect time to beat the heat and launch your new venture. Follow this comprehensive playbook, and soon you will be on your way to snow cone glory. The future of your flavorful frozen enterprise awaits – it’s time to make it a reality.

Muhammad Asif Saeed has extensive experience in commerce and finance. Specifically, He holds a Bachelor of Commerce degree specializing in Accounts and Finance and an MBA focusing on Marketing. These qualifications underpin his understanding of business dynamics and financial strategies.

With an impressive 20-year career in Pakistan’s textile sector, including roles at Masood Textile (MTM) and Sadaqat Limited, excelling in business & financial management. His expertise in financial and business management is further evidenced by his authoritative articles on complex finance and business operation topics for various renowned websites including businessproplanner.com,businesprotips.com,distinctionbetween.com, trueqube.com, and bruitly.com, demonstrating his comprehensive knowledge and professional expertise in the field.

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How to Write a Business Plan for a Snow Cone Stand

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What Does a Beauty Supply Business Plan Consist Of?

How to stop realplayer at startup, how to start a waffle business.

• How to Have a Shaved Ice Stand
• How to Get Silent Partners for a Restaurant

If you dream of serving up flavored ice creations to customers trying to beat the heat, then a snow cone business is the right career for you. However, long before you start shaving ice, you must compose a business plan that details every aspect of your business, from financing to marketing. An effective business plan can help you secure investors and build a buzz for your snow cone dream.

Offer an overview of your snow cone business in the executive summary. Explain the concept of your business, including details about the snow cones you plan to sell and the demographic you plan to target. Discuss the location of your snow cone business and why it will succeed because of the location. Identify how many investors and employees you have--or plan to have--as well.

Describe your snow cone business in detail. Talk about the sizes and flavors of snow cones you plan to sell. If your business will sell any other products, detail them here. Offer an overview of how you'll build your customer base. Perhaps you'll have an employee dressed up as a life-sized snow cone hand out coupons in heavily trafficked areas near your store.

Analyze the snow cone market in your area. How many other snow cone businesses exist? What features do these businesses have? Perhaps one offers dozens of flavors while another has an ideal location on a busy public beach. Explain your niche in the snow cone market. Perhaps you'll offer more snow cone flavors than your competitors. Also in this section, identify the demographic you plan to target, such as vacationing families willing to splurge on a frozen treat.

Detail your snow cone business' advertising and marketing effort. Identify specific marketing strategies you'll use. You can set up a booth at local events to offer free samples of your snow cone flavors, or you can host a grand opening celebration with discounted cones to introduce your brand to the public.

Assess the finances of your snow cone business. How will you fund your operation? Do you have partners or investors, or do you need them? How much capital do you have, and how much money do you need? Your business plan can help to attract potential investors, but they must know the financial situation of your start-up snow cone business.

Outline the organizational structure of your snow cone business. Are you the sole owner, or do you share ownership with other partners? How many employees will you have, and what will they do? You'll need employees to take orders, serve the cones and check out customers, but will you have any other employees, such as a marketing director?

• U.S. Small Business Administration: Essential Elements of a Good Business Plan
• U.S. Small Business Administration: Finding a Niche: Make Your Business Plan Stand Out
• Entrepreneur: Elements of a Business Plan

Barbie Carpenter worked as a technical writer and editor in the defense industry for six years. She also served as a newspaper feature page editor and nationally syndicated columnist for the Hearst Corp. Carpenter holds a Bachelor of Science in journalism from the University of Florida and a graduate certificate in professional writing from the University of Central Florida.

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Home » Food

How to Start a Snow Cone Business [Business Plan]

A snow cone shop is a business that makes and sells different flavors of snow cones. Snow cones are a variation of shaved ice or ground-up ice desserts commonly served throughout the United States of America and Canada in paper cones or foam cups.

The dessert consists of ice shavings that are topped with flavored sugar syrup. Snow cone flavors include Cherry, Grape, Blue Raspberry, Strawberry, Lemon-Lime, Banana, Tiger’s Blood, Root Beer, Watermelon, Pina Colada et al.

Statistics have it that there are roughly three hundred and seventy-three (373) licensed ice cream production companies (snow cones shops inclusive) in the United States and they can be found in all states, in major cities, and remote rural areas in the U.S. The industry is responsible for employing about 18,474 people and raking in an average of $8 billion annually.

Steps on How to Start a Snow Cone Business

Conduct market research.

It is important to state that conducting market research before starting any business is key to the success of the business hence you must not open a snow cone business without conducting market research. This is because market research provides critical information about your market and your business landscape. It can tell you how your business is perceived by the customers and clients you want to reach.

It can help you determine who and where your customers are, and which customers are most likely to do business with you. In essence, market research will help you understand how your target customers think to turn them into regular customers and brand advocates.

a. Who is the Target Market for Snow Cone Business?

• Every adult and child in the neighborhood where your snow cone shop will be located.

b. Is Snow Cone a Profitable Business?

Yes, the snow cone business is profitable because the industry is valued at nearly $8 billion.

c. Are There Existing Niches in the Industry?

Yes, there are existing niches when it comes to snow cones, and here are some of them;

• Brick and mortar snow cone shop
• Drive through snow cone shop
• Kiosk snow cone
• Mobile snow cone shop (snow cone carts or snow cone trucks)

d. Who are the Major Competitors?

• Jerrys Snow cone
• Shimmers Snow Cone Stand
• Tc Shaved Ice
• Iceberg Dive Inn
• Sno-La Snowball Lounge
• Sno Biz Treats
• Chuck’s Sno Cones
• Snoh Ice Shavery
• New Orleans SnoBall Café
• Oasis Shaved Ice
• Pelican’s SnoBalls
• Polar Chill Shaved Ice
• Sweet Firefly
• Aunt Stelle’s Snow Cones
• Snowilicious Shaved Ice
• Cardinal Snowcone
• Jacobs SnowCones and Concessions
• Kona Ice of San Angelo
• Snofellas Shaved Ice
• A.M. Enterprises Jolly Trolley Sno-Cone Factory

e. Are There County or State Regulations or Zoning Laws for Snow Cone Business?

Yes, there are county and state regulations and zoning laws for snow cones in the United States. Please note that the Food and Drug Administration (FDA) sets the federal Food Code. However, the FDA doesn’t oversee individual snow cones. Instead, the various states use the Food Code as the basis for their food codes. They may adopt its rules, interpret them differently or set their own rules.

Please note that in the United States, you are required to follow your own state’s food service code. Visit the FDA website for a list of food service codes by state. Use this to find the state authority handling snow cone business and view the laws that apply in your state.

f. Is There a Franchise for Snow Cone Business?

Yes, there are franchise opportunities for snow cone businesses. Here are some of them;

• Sub Zero Franchise Inc.
• The Haagen-Dazs Shoppe Co. Inc.
• Tasti D-Lite
• Bahama Buck’s Original Shaved Ice
• Tikiz Shaved Ice & Ice Cream
• Waikomo Shave Ice

g. What Do You Need to Start a Snow Cone Business?

• A Feasibility Report
• Business and Marketing Plans
• Business Licenses and Permits
• A Good Shop facility, Car or Truck
• EIN (Employer Identification Number)/Federal Tax ID Number.
• A Corporate Bank Account
• Startup Capital

Memorable Snow Cone Business Names

• Your Sweetness© Snow Cone Shop, Inc.
• The Treat™ Snow Cone Truck, LLC
• Elena Davies© Snow Cone Shop, Inc.
• Akin Bola® Snow Cone Shop, Inc.
• Tina Tanya™ Snow Cone Truck, Inc.
• Topmost™ Snow Cone Shop, LLC.
• Boy Lawson© Snow Cone Truck, LLC
• Kendra Norman® Snow Cone Shop, Inc.
• Firm Base© Snow Cone Shop, Inc.
• Rita Smith© Snow Cone Shop, Inc.
• Tessy® Snow Cone Shop, LLC
• Pink Label® Snow Cone Shop, LLC
• Monica Lewis™ Snow Cone Shop, LLC
• Royalty© Snow Cone Truck, Inc.
• Yok Troche® Snow Cone Shop, Inc.
• Sean Venus™ Snow Cone Shop, Inc.
• Benjamin ED™ Snow Cone Shop, Inc.
• Lorne Cooper© Snow Cone Shop, Inc.
• Peter OK® Snow Cone Shop, LLC
• New Heights™ Snow Cone Truck, Inc.

Register Your Business

A. what type of business structure is best for snow cone.

When it comes to starting a snow cone business, you have several options when it comes to the business structure, but the one that most players in this line of business consider is an LLC. It is common to consider an LLC because providers want to protect themselves from lawsuits. Please note that an LLC will need an EIN if it has any employees or if it will be required to file any of the excise tax forms listed below.

b. Steps to Form an LLC

• Choose a Name for Your LLC.
• File Articles of Organization.
• Choose a registered agent.
• Decide on member vs. manager management.
• Create an LLC operating agreement.
• Comply with other tax and regulatory requirements.
• File annual reports.

c. What Type of License is Needed to Open a Snow Cone Business?

• General Business License
• Health and Safety Permit
• Food and Drinks Handlers’ License
• Zonal Permits
• Signage Permit
• Operational State Facility Inspections
• A music license if you want to play live, recorded, or streaming music in your bar or restaurant
• A dumpster placement permit that specifies where you can put your trash dumpster outside your bar or shop
• A valet parking permit if you plan to offer valet parking for customers
• Sidewalk permits if you plan to offer outside seating

d. What Type of Certification is Needed to Open a Snow Cone Business?

You don’t need any certifications to open a snow cone business.

e. What Documents are Needed to Open a Snow Cone Business?

• Business and liability insurance
• Federal Tax Payer’s ID
• State Permit and Building Approval
• Certificate of Incorporation
• Business License
• Business Plan
• Employment Agreement (offer letters)
• Operating Agreement for LLCs
• Insurance Policy
• Online Terms of Use
• Online Privacy Policy Document
• Contract Document
• Company Bylaws
• Memorandum of Understanding (MoU)

f. Do You Need a Trademark, Copyright, or Patent?

If you are considering opening your own snow cone business, usually you may not have any need to file for intellectual property protection or trademark. This is because the nature of the business makes it possible for you to successfully run the business without having any cause to challenge anybody in court for illegally making use of your company’s intellectual properties.

Cost Analysis and Budgeting

A. how much does it cost to start a snow cone business.

The cost required to open a snow cone business may vary significantly and it could be high, moderate, or low. For example, if you plan to use a pop-up tent, you can get started for under $5,000. If you want to purchase a trailer the cost could be between $15,000 – $100,000 depending on how many bells and whistles you want on your vehicle. The Tiki hut or stand cost can also vary greatly, but a typical stand should run you under $10,000.

b. What are the Costs Involved in Starting a Snow Cone business

• Business Registration Fees – $750.
• Legal expenses for obtaining licenses and permits – $1,300.
• Marketing, Branding and Promotions – $1,000.
• Business Consultant Fee – $2,500.
• Insurance – $1,400.
• Rent/Lease – $15,000.
• Other start-up expenses include commercial satellite TV subscriptions, stationery ($500), and phone and utility deposits ($1,800).
• Operational Cost (salaries of employees, payments of bills et al) – $30,000
• Start-up Inventory – $5,000
• Store Equipment (cash register, security, ventilation, signage) – $1,750
• Furnishing and equipping the shop – $10,000
• Website: $600
• Opening party: $3,000
• Miscellaneous: $2,000

c. What Factors Determine the Cost of Opening a Snow Cone Business?

• The size of the snow cone business
• The choice of location
• The required licenses and permits
• The type of facility
• The type of related products retailed in the shop
• The cost of hiring and paying a business consultant and attorney
• The cost for branding, promotion, and marketing of the snow cone business
• The cost of furnishing the facility
• The cost of insurance policy covers
• The cost for registering the business
• Source of your supplies and ongoing expenses
• Cost of recruiting and training your staff
• The cost for the purchase and customizing of uniforms
• The cost for the grand opening of the snow cone business

d. Do You Need to Build a Facility? If YES, How Much Will It Cost?

The truth is that it is not compulsory to build a new facility for your snow cone business, but if you have the required finance, it will pay you to build your facility. The truth is that building or reconstructing a facility will help you come up with a facility that will perfectly fit into your overall business goals and vision.

e. What are the Ongoing Expenses of a Snow Cone Business?

• Supplies (inventory expenses)
• Utility bills (internet subscriptions, phone bills, signage and software renewal fees et al)
• Salaries of employees

f. What is the Average Salary of your Staff?

• Shop Manager (Owner) – $45,000 Per Year
• Accountant – $30,630,000 Per Year
• Snow Cone Makers and Servers – $27,100 Per Year
• Cleaners – $25,000 Per Year

g. How Do You Get Funding to Start a Snow Cone Business?

• Raising money from personal savings and sale of personal stocks and properties
• Raising money from investors and business partners
• Sell shares to interested investors
• Applying for a loan from your bank/banks
• Source for soft loans from your family members and friends.

Write a Business Plan

A. executive summary.

Our Snow cone business is a standard snow cone production company that will be based in Beaverton, Oregon, and will cover a wide range of clients.

We operate both snow cone shops and trucks. When it comes to hygiene and proper packaging, we have put plans, processes, and structures in place that will ensure that we are always at the top of the game when it comes to that. We have been able to secure permits from all relevant departments in Beaverton, Oregon.

b. Products and Service

• Different flavors of snow cones (shaved ice or ground-up ice desserts) such as cherry, grape, blue raspberry, strawberry, lemon-lime, banana, tiger’s blood, root beer, watermelon, and pina colada

c. Mission Statement

Our mission is to build a snow cone business that will meet the needs of all our customers in the regions/cities where we have our outlets and to sell franchises all across the United States of America and Canada.

Vision Statement

Our vision is to be among the top 3 snow cone production companies in the whole of the United States of America.

d. Goals and Objectives

The goals and objectives of a snow cone business are to provide a retail outlet where patrons can go to buy different flavors of snow cones.

e. Organizational Structure

• Shop Manager (Owner)
• Snow Cone Maker and Server

Marketing Plan

A. swot analysis.

• Ideal location for a snow cone business
• Highly experienced and qualified employees and management
• Access to finance from business partners
• Access to ingredients and supplies.
• A reliable, clean, healthy, and efficient method of preparing snow cones.
• Financial constraints may restrict the publicity and branding of the business
• A new business that will be competing with well-established snow cone shops and snow cone production franchises in the city.
• Inability to retain our highly experienced and qualified employees longer than we want during the teething stage of the business.

Opportunities:

• A rise in the number of snow cone lovers within our market space
• Online market, new services, new technology, and of course the opening of new markets.
• The arrival of a new snow cone shop within our market space
• Weather uncertainty
• Economic uncertainty
• Liability problems
• The U.S. Food and Drug Administration (FDA) could change its regulatory status and decide to regulate and enforce strict regulations that can strangulate new businesses like ours.

b. How Do Snow Cone Shops Make Money?

Snow cones make money by selling the following products;

c. Payment Options

• Payment with cash
• Payment via credit cards
• Payment via mobile money transfer

d. Sales & Advertising Strategies

• Introduce your snow cone business by sending introductory letters alongside your brochure to gyms, schools, and other key stakeholders throughout the city where your Snow cone business is located.
• Advertise on the internet on blogs and forums and also on social media like Twitter, Facebook, LinkedIn to get your message across
• Create a basic website for your business to give your business an online presence
• Directly market your products.
• Join local snow cone associations for industry trends and tips
• Provide discount days for your customers
• Advertise our business in community-based newspapers, local TV and radio stations
• List your business on yellow pages ads (local directories)
• Encourage the use of word-of-mouth marketing (referrals)

Financial Projection

A. how much should you charge for your product/service.

Depending on the location and flavors, you can charge between $2-$5 for a snow cone.

b. How Much Profit Do Snow Cone Owners Make a Year?

It depends, but the available report shows that on average, within the industry, a small to medium-sized snow cone can earn anywhere from $50,000 to $120,000 in personal income for the shop owner.

c. What Factors Determine the Amount of Profit to Be Made?

• The capacity of the snow cone shop
• The types of related products retailed in the shop
• The location the snow cone is covering
• The management style of the snow cone shop
• The business approach of the snow cone shop
• The advertising and marketing strategies adopted by the snow cone shop.
• The number of years the snow cone business is in business

d. What is the Profit Margin of a Snow Cone business?

The profit margin of a snow cone business is not fixed. However, sales for a typical shaved ice or snow cone business will average around $100 to $2,000 a day but it all hinges on many factors including location, competition, length of your season, and business history.

e. What is the Sales Forecast?

Below is the sales forecast for a snow cone business. It is based on the location of the business and other factors as it relates to such startups in the United States;

• First Fiscal Year: $150,000
• Second Fiscal Year:  $240,000
• Third Fiscal Year: $360,000

Set Up your Shop 

A. how do you choose a perfect location for snow cone.

• The demography of the location
• The demand for the snow cone in the location
• The purchasing power of businesses and the residents of the location
• Accessibility of the location
• The number of snow cones, and shops that serves snow cone in the location in the location
• The local laws and regulations in the community/state
• Traffic, parking and security et al

b. What State and City are Best to Open a snow cone?

• Edison, New Jersey
• Washington, D.C.
• Chicago, Illinois
• Philadelphia, Pennsylvania
• Los Angeles, California
• Honolulu, Hawaii
• New York City, New York
• Austin, Texas
• Las Vegas, Nevada
• Denver, Colorado.

c. What Equipment is Needed to Operate a Snow Cone Shop?

• Snowcone countertop machine
• Ice blender

Hire Employees

When it comes to hiring employees for a standard snow cone business, you should make plans to hire a competent shop manager (you can occupy this position), account clerk, snow cone maker, servers, and cleaners.

Launch the Business Proper

No snow cone business opens its door for business without first organizing an opening party to officially launch the business. You can choose to do a soft opening if you are operating on a low budget or you can go for a grand opening party. The bottom line is that with a proper launching of the business, you will be able to inform people in your city that your snow cone shop is open for business.

a. What Makes a Snow Cone Business Successful?

• Choose a good location and shop facility to launch the business
• Make sure your shop is stocked with different flavors of snow cones (give your customers options)
• Throw an open house party to officially launch the business
• Be deliberate with your marketing sales approach
• Encourage the use of word of mouth to promote your snow cone business
• Leverage on all available online and offline platforms to promote your snow cone business

b. What Happens During a Typical Day at a Snow Cone?

• The shop is open for the day’s work
• The serving areas, chairs, and tables are properly arranged
• Walk-in customers are attended to
• Deliveries of orders are made
• Stocks are taken and reports are written and submitted to superior officers
• The business is closed for the day.

c. What Skills and Experience Do You Need to Build a Snow Cone Business?

• Excellent customer services skills
• Interpersonal skill
• Accounting and bookkeeping skills
• Business management skills
• Bargaining skill
• Work experience in a restaurant or bar environment
• Experience in managing people
• Experience in business administration
• Experience in making snow cones and also handling different types of snow cone-making equipment.

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Snow Cone Stand Business Plan Example

JUN.22, 2018

Snow cone business plan for your own stand

Are you thinking about starting a shaved ice business ? Shave ice, also known as Hawaiian shave ice, is a popular ice-based dessert served throughout the US. Shave ice is especially popular with American teens and children, and considering its popularity, it won’t be wrong to say that this business can yield immense profit provided that you plan it successfully.

The first thing you should do before starting your shave ice business is to develop a comprehensive business plan for it. The business plan will not only help you in startup but it will also help you in taking important decisions for your company over the next years. In case you don’t know how to write a good business plan for selling snow cone, we are providing a detailed business plan of a shave ice business startup ‘Brownsville’s Ice Stop’ to help you avoid the trouble of making a plan yourself.

Executive Summary

2.1 the snow cone business.

Brownsville’s Ice Stop will be a shave ice shop located beside the King’s Mall in the main commercial market of Brownsville.

2.2 Management of Snow Cone Shop

Brownsville’s Ice Stop will be a sole proprietorship owned by Sam Kin, an ambitious high school graduate. Sam’s fun nature, his innovative snow cone business ideas , and his passion for business led him to start a business in this industry.

2.3 Customers of Snow Cone Stand

Our customers will primarily be the residential community, working community and the passers-by in Brownsville. We will offer high-quality, delicious and economical shave ice to our esteemed customers.

2.4 Target of the Snow Cone Shop

Our main business targets are summarized in the following column chart:

Company Summary

3.1 company owner.

Brownsville’s Ice Stop will be a sole proprietorship owned by Sam Kin, an ambitious high school graduate.

3.2 Why the Snow Cone Business is being started

Sam has always been least interested in studies and more interested in starting a business. Sam’s fun nature and his love for shave ice desserts led him to start a business in this industry. Now, he can have all the fun, can eat lots of his desserts and, of course, can also make profits.

3.3 How the Snow Cone Business will be started

The business will be launched in a small shop adjacent to King’s Mall in the main commercial market of Brownsville. The store business was previously used as a tea shop so a little work will be needed to start a cone business in that shop. The company’s financial experts have forecasted following costs for the startup:

The detailed startup information is as follows:

Services for customers

Some businesses are easier to launch but difficult to run and make profits. Shave ice business is also one of them that’s why it is wiser to plan your services before you think about how to start a shaved ice business . Planning of your menu prior to opening a snow cone business is also important since it will help you with the planning of subsequent things. Brownsville’s Ice Stop will offer following products to its customers:

• Shave ice in different flavors including guava, pineapple, passion fruit, coconut cream, lychee, mango cherry, kiwi fruit, grape, blue strawberry, raspberry, lemon-lime, watermelon, and banana.
• Soft drinks

The most important component of an effective shaved ice business plan is its accurate marketing analysis and a good shave ice business plan can only be developed after this stage.

Marketing Analysis of Snow Cone Business

If you are starting your shave ice shop on a smaller scale, you can do marketing analysis yourself by taking help from this sample business plan. The success or failure of a business totally depends upon its marketing strategy for the business which can only be developed on the basis of accurate marketing analysis. Therefore, it must be considered before you develop your snow cone business plan .

5.1 Market Trends

A good snow cone stand business plan must include an accurate picture of market and industry. If starting on a smaller scale, you can just go online for researching the market and industry trends. As a general fact, an ice cream business can never fully fail since nearly every other person loves to eat ice creams. In the US, it is a thriving industry which contributes to more than $8 billion in annual revenue. Although the number of licensed and registers ice cream companies is just around 370 yet the biggest chunk of sales is contributed by small-scale unregistered business like ice stops and trucks. Overall, the industry employs around 18,500 people and has been estimated to grow at a rate of 0.3 percent from 2011 to 2016. If we were to say it in a single line, this industry has a lot of potential and even a small shave ice shop can yield immense profit provided that you successfully plan it and target your customers.

5.2 Marketing Segmentation

An effective business plan for snow cone stand must also contain the marketing segmentation of the target audience which can become the potential customers of your shave ice shop.

The detailed marketing segmentation comprising of the company’s target audience is as follows:

5.2.1 Residential Community: The first group of our target customers will be the community residing in the vicinity of our shave ice shop. Shave ice is one of the favorite desserts of American children and teens so we hope to have a lot of sales due to them. Not only teens, adults and middle-aged people also love to have cold shave ice so as to counter the hot weather of Brownsville.

5.2.2 Working Community: The second category includes the workers and employees who work in the businesses or offices located in the vicinity of our tea shop. This group also includes the people who work in King’s Mall, situated beside us.

5.2.3 Passers-by: The third category includes those people who do not live or work near our shop but have come to the area for any business purpose or commercial activity. This group mostly include the people who have come to visit the King’s Mall. Our ice shop will be the perfect place for these passers-by to take a relief from the hot weather of Brownsville.

The detailed market analysis of our potential customers is given in the following table:

5.3 Business Target

Our business targets are as follows:

• To recover the initial investment within next one year of launch
• To start an ice cream truck within one year of launch
• To open two more shave ice shops by the end of the second year of launch

5.4 Product Pricing

After considering the market demands, we have priced all our products in slightly lower ranges as of our competitors. Our product pricing is as follows:

• Small Serving (6 oz): $0.99/cup
• Regular Serving (9 oz): $1.49/cup
• Large Serving (12 oz): $1.79/cup

Strategy of Snow Cone Business

Sales strategy is also an important component of a good shave ice business plan so it must be properly developed before thinking about how to open a shaved ice business .

6.1 Competitive Analysis

We have a really tough competition because there are a lot of ice cream retailers as well as unregistered small businesses in the locality. This competitive environment was the primary reason behind the low pricing of our shave ice. In addition to our competitive prices, our location will also be one of our competitive advantages. We are situated adjacent to one of the biggest Mall in Brownsville and our location is ideal for starting a snow cone stand . The power and dedication of our team will also help us thrive and Mike’s fun nature will undoubtedly serve as a valuable asset.

6.2 Sales Strategy

We will target our customers by following three ways:

• We will give away free shave ice desserts to the people around us during the first three days of our launch.
• We will install our sign boards on all strategic locations around us.
• We will offer a 20% discount on shave ice for the first month of our launch.

6.3 Sales Monthly

Our monthly sales have been forecasted as follows:

6.4 Sales Yearly

Our yearly sales have been forecasted as follows:

6.5 Sales Forecast

Our forecasted sales pattern is given in the following column chart:

Our detailed sales forecast is given in the following table:

Personnel plan

It is highly advisable to prepare a personnel plan before starting a snow cone business since it will greatly help in your budget allocation.

7.1 Snow Cone Stand Staff

Mike will act as the CEO of the company and will initially hire following people:

• 1 Cashier for receiving cash from people
• 1 Accountant for maintaining financial records
• 2 Sales Executives responsible for marketing and advertising the shop
• 6 Assistants for preparing and serving the products
• 2 Cleaners for ensuring the cleanliness of our shop

7.2 Average Salary of Employees

The following table shows the forecasted data about the salaries of the employees for the next three years. These salaries are just an estimate and can deviate but the overall expenses will nearly remain the same.

Financial Plan

The final thing to do before you think about how to start a snow cone business is to develop a comprehensive financial plan which will cover the detailed costs of startup. The financial plan will outline all financial aspects of your startup and will also give you an estimate of the shaved ice business profit you can make on average. It is advisable that you seek help from financial experts for developing the financial plan of your startup. The financial plan of Brownsville’s Ice Stop is as follows:

8.1 Important Assumptions

The company’s financial projections are forecasted on the basis of following assumptions. These assumptions are conservative and can also slightly deviate but the deviations are not expected to affect the company’s major financial strategy.

8.2 Brake-even Analysis

8.3 Projected Profit and Loss

8.3.1 profit monthly.

8.3.2 Profit Yearly

8.3.3 Gross Margin Monthly

8.3.4 gross margin yearly.

8.4 Projected Cash Flow

The following column diagram shows the projected cash flow:

The following table shows the projected cash flow:

8.5 Projected Balance Sheet

The following table shows the projected balance sheet:

8.6 Business Ratios

The following table shows data about business ratios:

Download Snow Cone Business Plan Sample in pdf

Professional writers OGS capital specialized also on theme such as hot dog stand business plan , business plan for a lemonade , vending machine business plan , hot sauce business plan , frozen yogurt business plan , business plan for a start-up food truck and many other business plans.

OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.

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Shaved Ice Business

Back to All Business Ideas

How to Start a Shaved Ice Business

Written by: Carolyn Young

Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.

Edited by: David Lepeska

David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.

Published on August 9, 2021 Updated on March 13, 2024

Investment range

$7,500 – $28,000

Revenue potential

$60,000 – $200,000 p.a.

Time to build

Profit potential

$50,000 – $110,000 p.a.

Industry trend

On a hot summer day, shaved ice can be the very definition of refreshing! So why not live out those summertime dreams and start up your own shaved ice business?

The market for shaved ice, or snow cones, is expected to grow steadily in the coming years, offering real opportunity for the smart entrepreneur. The business tends to be seasonable, but you’ll be able to spend your time outdoors, in parks and at special gatherings, enjoying life with locals as you make good money.

You can start out as a solopreneur with a single cart, then scale up to a shaved ice shop or dozens of carts across the city. Of course, starting any business is a challenge that requires hard work and determination. Thankfully, you’ve come to the right place, as this step-by-step guide lays out all you need to know to develop and launch your promising shaved ice business.

Let’s start at the beginning.

Looking to register your business? A limited liability company (LLC) is the best legal structure for new businesses because it is fast and simple.

Form your business immediately using ZenBusiness LLC formation service or hire one of the Best LLC Services .

Step 1: Decide if the Business Is Right for You

It’s crucial to consider the factors that go into starting a business and decide if it’s right for you. Unfortunately, loving shaved ice is not enough to be successful in the business! Read through the below before taking the leap.

Starting a business is going to have both pros and cons. It’s important to review them before jumping into a new business venture.

• Getting started is easy, inexpensive
• Flexible hours
• No experience required
• Follow demand to a variety of outdoor spaces and events
• Make people happy with a tasty dessert!
• Demand tends to be seasonal, depending on your location
• Saturated market with significant competition
• Repetitive, sometimes tedious and strenuous work

Shaved ice industry trends

The shaved ice and snow cone market grew steadily from 2014 to 2019, according to industry analyst Market Research Explore. Following a pandemic-driven downturn in outdoor events, frozen desserts like shaved ice started coming back strong in 2021.

Industry size and growth

• Industry size and past growth – The US frozen dessert market, which includes shaved ice, was valued at $31 billion in 2021, according to market analyst Grand View Research.(( https://www.grandviewresearch.com/industry-analysis/us-frozen-desserts-market )) 
• Growth forecast – The industry is expected to expand at least 4% annually through 2030.

Trends and challenges

Trends shaping the shaved ice industry include:

• Growing consumer awareness of eating healthy and staying fit
• Rising demand for vegan and dairy-free products
• Consumers stockpiling food with longer shelf life due to pandemic

Challenges in the shaved ice industry include:

• Supply chain disruptions
• Seasonal and highly competitive

How much does it cost to start a shaved ice business?

Startup costs for a shaved ice business are fairly low, assuming you launch your business with a single mobile cart. The minimum start-up total is about $7,500, while the high-end cost, which includes a storefront and mobile vending trailer, is about $28,000.

You’ll need a handful of items to successfully launch your shaved ice business. Here’s a list to get you started:

• Ice maker and mobile cart
• Cube/block ice shaver
• Flavored syrups, cups, spoons, straws, napkins
• Tablet Device and point-of-sale software
• Computers and IT equipment

How much can you earn from a shaved ice business?

Because demand fluctuates with the seasons, monthly revenue for a single cart shaved ice business can run from $200 to more than $10,000. From October to March, you may want to consider shifting to a cold-weather alternative, like hot tea, though some owners shut down for the winter and re-open again as the weather warms up.

In your first couple of years, you might generate enough sales to average $5,000 in monthly revenue, which would give you just over $60,000 for the year. This would give you a pre-tax profit of $50,000, assuming an 80% margin.

With your own shop, revenues will be significantly higher, but the increased overhead will bring your margin down to 55%. You might be able to generate $200,000 in annual revenue, which would give you a tidy profit of $110,000.

Within five years you could scale the business to three storefronts and five carts, generating close to $1 million in revenue and nearly half that in profit.

What barriers to entry are there?

After looking at the financials, you can see that there is good revenue potential in the shaved ice business. But there are some barriers to entry to consider before getting started, such as:

• Strict regulations around the safe processing and handling of food products
• High competition from many small-scale operators in shaved ice business and ice cream
• Difficult to build brand loyalty due to the mobile nature of business
• DIY shaved ice machines exist and people may opt to make their own at home
• Seasonality means less consistent income

Related Business Ideas

How to Start a Snow Cone Business

How to Start an Ice Cream Business

How to Start a Popcorn Business

Step 2: hone your idea.

Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape.

Why? Identify an opportunity

All businesses need to find clients to start making money. That means you need to determine where the demand is for your product. Overall, the frozen dessert industry is very popular, because people love dessert!

However, the demand for shaved ice will primarily be driven by rising demand for low-calories and low-sugar desserts in the US. Consumers are eager to try new options that do not have a negative impact on their health.

Shaved ice is also an excellent alternative for vegans or others who avoid dairy but still want a delicious frozen treat. This is a growing market and is a good segment to market your business towards. Shaved ice also has hundreds of flavors, so your business will have something for every taste of the customer.

What? Determine your products or services

The main ingredients for shaved ice are ice shavings and flavored syrups. Each vendor gains popularity based on their top flavors and customer service. You can purchase flavors in powders, concentrates, and ready-to-use syrups from a supplier such as Snowie .

Shaved ice is usually served in a paper cup or cone with a spoon or straw, though customers can also just eat it directly like an ice cream cone.

There are a few different ways you can sell your shaved ice. The following options vary in mobility and will affect the number of people you can serve. Here are your options:

• Cart — on wheels and mobile, can be rolled up onto a sidewalk, a park, or even the beach
• Kiosk — a small storefront placed on a street with high foot traffic
• Storefront — a traditional brick-and-mortar store that can serve a high volume of customers at one time
• Vending trailer — similar to but larger than a cart, allows for greater sales volume

How much should you charge for shaved ice?

Prices start at around a dollar per 8-ounce cup and go as high as $5 per cup in a pricey district during peak-demand summer months . Research local competitors to check out their offerings and prices, and customer response. Perhaps you could offer a slightly smaller cup at a better price? Or go big with a 12-ounce cup. 

Once you know your costs, you can use this Step By Step profit margin calculator to determine your mark-up and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.

Who? Identify your target market

It’s important to identify your target market for your shaved ice business. Here are a few examples of market segments that you can target and promote your product to:

• Families with kids: Kids love sweet treats! Therefore, targeting families and going to where they spend time (i.e. parks, beaches) can be a great way to drive sales.
• Vegans and others avoiding dairy: Since shaved ice does not include dairy, it’s a great alternative for those who are allergic or avoid dairy for ethical reasons. Think cultural events like music and arts festivals.

Where? Choose your business premises

In the early stages, you may want to run your business from home to keep costs low. But as your business grows, you’ll likely need to hire workers for various roles and may need to rent out a storefront. You can find commercial space to rent in your area on sites such as Craigslist , Crexi , and Instant Offices .

When choosing a commercial space, you may want to follow these rules of thumb:

• Central location accessible via public transport
• Ventilated and spacious, with good natural light
• Flexible lease that can be extended as your business grows
• Ready-to-use space with no major renovations or repairs needed

You’d also want to go where the demand is. Just think – when do people have a craving for a frozen dessert? With that logic, the best locations to sell shaved ice are sporting events such as baseball and soccer fields, basketball courts; beaches, parks, and other outdoor recreation areas; fairs, festivals, carnivals and other local events; and birthdays, fundraisers, corporate events, weddings, church events.

Step 3: Brainstorm a Shaved Ice Business Name

Your business name is your business identity, so choose one that encapsulates your objectives, services, and mission in just a few words. You probably want a name that’s short and easy to remember, since much of your business, and your initial business in particular, will come from word-of-mouth referrals.

Here are some ideas for brainstorming your business name:

• Short, unique, and catchy names tend to stand out
• Names that are easy to say and spell tend to do better 
• The name should be relevant to your product or service offerings
• Ask around — family, friends, colleagues, social media — for suggestions
• Including keywords, such as “shaved ice” or “snow cone”, boosts SEO
• Choose a name that allows for expansion: “Icey Delight Co.” over “Shaved Ice Cocktails”
• Avoid location-based names that might hinder future expansion
• Use online tools like the Step by Step business name generator . Just type in a few keywords and hit “generate” and you’ll have dozens of suggestions at your fingertips.

Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these. 

Find a Domain

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Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that sets your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity. 

Step 4: Create a Shaved Ice Business Plan

Every business needs a plan. This will function as a guidebook to take your startup through the launch process and maintain focus on your key goals. A business plan also enables potential partners and investors to better understand your company and its vision:

• Executive Summary: Summarize the essence of your shaved ice business, highlighting the unique flavors, mobile or fixed-location setup, and strategies to attract a diverse customer base.
• Business Overview: Describe your business’s focus on offering shaved ice treats with a variety of flavors and options like natural syrups or toppings.
• Product and Services: List your menu offerings, including different sizes of shaved ice, a variety of syrup flavors, and any additional snacks or beverages.
• Market Analysis: Assess the demand for frozen desserts in your area and identify target demographics, such as families, tourists, or event attendees.
• Competitive Analysis: Examine other local dessert and snack vendors, emphasizing what sets your shaved ice apart, like unique flavors or health-conscious options.
• Sales and Marketing: Outline your approach to attracting customers, which might include social media marketing, participating in local events, or loyalty programs.
• Management Team: Highlight your and your team’s expertise in food service, customer relations, and business management.
• Operations Plan: Detail your operational approach, whether it’s a mobile shaved ice truck or a fixed kiosk, including equipment, supply chain, and staffing.
• Financial Plan: Provide an overview of start-up costs, pricing strategy, expected sales volumes, and profitability projections.
• Appendix: Include additional materials such as market research data, supplier agreements, or health and safety certifications that support your business plan.

If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.

Step 5: Register Your Business

Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business! 

Choose where to register your company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you are planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to shaved ice. 

If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state. 

Choose your business structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your shaved ice business will shape your taxes, personal liability, and business registration requirements, so choose wisely. 

Here are the main options:

• Sole Proprietorship – The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
• General Partnership – Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
• Limited Liability Company (LLC) – Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
• C Corp – Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
• S Corp – An S-Corporation refers to the tax classification of the business but is not a business entity. An S-Corp can be either a corporation or an LLC , which just need to elect to be an S-Corp for tax status. In an S-Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization , and answer any questions you might have. 

Form Your LLC

Choose Your State

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Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number , or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN. 

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

The IRS website also offers a tax-payers checklist , and taxes can be filed online.

It is important to consult an accountant or other professional to help you with your taxes to ensure you are completing them correctly.

Step 7: Fund your Business

Securing financing is your next step and there are plenty of ways to raise capital:

• Bank loans : This is the most common method, but getting approved requires a rock-solid business plan and strong credit history.
• SBA-guaranteed loans : The Small Business Administration can act as guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan .
• Government grants : A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
• Friends and Family: Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
• Crowdfunding: Websites like Kickstarter and Indiegogo offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
• Personal: Self-fund your business via your savings or the sale of property or other assets.

Bank and SBA loans are probably the best options, other than friends and family, for funding a shaved ice business. You might also try crowdfunding if you have an innovative concept.

Step 8: Apply for Shaved Ice Business Licenses and Permits

Starting a shaved ice business requires obtaining a number of licenses and permits from local, state, and federal governments.

Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration ( OSHA ), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits. 

You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more. 

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package . They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money you’ll need a place to keep it, and that requires opening a bank account .

Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your shaved ice business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account. 

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

• General liability: The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
• Business Property: Provides coverage for your equipment and supplies.
• Equipment Breakdown Insurance: Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
• Worker’s compensation: Provides compensation to employees injured on the job.
• Property: Covers your physical space, whether it is a cart, storefront, or office.
• Commercial auto: Protection for your company-owned vehicle.
• Professional liability: Protects against claims from a client who says they suffered a loss due to an error or omission in your work.
• Business owner’s policy (BOP): This is an insurance plan that acts as an all-in-one insurance policy, a combination of any of the above insurance types.

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business. 

Essential software and tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks.  

You may want to use food truck software such as Shaved Ice Software , Square , and clover to take payments, manage staff and inventory, and enhance customer experience.

• Popular web-based accounting programs for smaller businesses include Quickbooks , Freshbooks , and Xero . 
• If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences for filing incorrect tax documents can be harsh, so accuracy is crucial. 

Develop your website

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.

You can create your own website using services like WordPress, Wix, or Squarespace . This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.

They are unlikely to find your website, however, unless you follow Search Engine Optimization ( SEO ) practices. These are steps that help pages rank higher in the results of top search engines like Google. 

Launching a shaved ice business can be a refreshing venture, and with the right marketing strategies, you can quickly attract a loyal customer base. Here are some concise and practical tips to help you get started:

• Mobile Presence: Utilize social media platforms and location-based apps to inform potential customers about your shaved ice offerings, share promotions, and engage with the community.
• Seasonal Specials: Introduce seasonal flavors and promotions to keep customers excited and coming back, creating a sense of urgency to try your limited-time offerings.
• Collaborate with Local Events: Partner with community events, fairs, and festivals to set up a booth, increasing visibility and providing attendees with a cool treat while enjoying the festivities.
• Loyalty Programs: Implement a loyalty program to reward repeat customers, offering discounts, free upgrades, or a punch-card system to encourage frequent visits.
• Student Discounts: Target schools and colleges by offering student discounts during peak hours, attracting a younger demographic and creating a buzz within the student community.
• Creative Merchandise: Design and sell branded merchandise such as cups, T-shirts, or reusable spoons, turning satisfied customers into walking advertisements for your shaved ice business.
• Themed Nights: Host themed nights or events, such as tropical or retro themes, to create a unique experience and draw in customers looking for more than just a sweet treat.
• Cross-Promotions: Collaborate with nearby businesses, such as cafes or recreational facilities, for cross-promotions that benefit both parties, expanding your customer reach.
• Engaging Visuals: Invest in eye-catching signage and vibrant visuals to make your shaved ice stand visually appealing, attracting passersby and encouraging impulse purchases.
• Customer Testimonials: Encourage satisfied customers to leave positive reviews on online platforms and share their experiences on social media, building credibility and attracting new customers through word of mouth.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that sets it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your shaved ice meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire. 

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your shaved ice business could be:

• Over 100 flavors — find your favorite!
• Book us for your next birthday party!
• Delicious dairy-free, gluten-free, vegan-friendly frozen desserts

You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a shaved ice business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been selling shaved ice for years and can offer invaluable insight and industry connections. 

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in shaved ice. You’ll probably generate new customers or find companies with which you could establish a partnership. Online businesses might also consider affiliate marketing as a way to build relationships with potential partners and boost business.

Step 12: Build your team

If you are starting small as a solopreneur with a cart, you may not need to hire any employees. As your business grows and you open a brick-and-mortar storefront and acquire additional vending trailers and carts, you will need employees to help you.

The key role in your business will be shaved ice vendors and drivers. As your business grows, you may need additional support. Here are some of the jobs you will need to fill if you scale up your business:

• Administrative assistant to help with general paperwork and basic duties.
• Marketing executive to help with promotion and social media accounts.
• Operations manager to help with scheduling and human resources duties
• Accountant and bookkeeper to help with the financial duties.

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need. 

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed , Glassdoor , or ZipRecruiter . Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent.

Step 13: Run a Shaved Ice Business – Start Making Money!

Finally. You are at the last and most exciting step! Don’t let the seasonality of this business get in the way. You could come up with season-themed promotions or special products that would attract customers regardless of the season. A creative marketing campaign, both in digital and traditional formats, could do the trick.

Remember also that there’s an increasing demand for all-natural and sugar-free products, so you might take advantage of that and come up with innovative flavors that meet this need. This will promote your brand and encourage repeat customers. 

Now, you’re ready to start shaving ice and making money!

• Shaved Ice Business FAQs

Shaved ice machines range between $1,000 and $5,000, averaging at $3,000. The price varies depending upon its manufacturer and how fine it shaves the ice.

There are two ways to make shaved ice. Either you use the food processor to grind the ice cubes, or you do it through professional shaved ice machines. To be a successful shaved ice business you should invest in a high-quality shaved ice machine. It’s important to have a quality product so that clients will love it and come back for more!

Shaved ice is very light and fluffy, similar to the texture of snow, whereas snow cones have crushed ice that have relatively larger granules. Again, investing in a high-quality machine will ensure a high-quality product that customers are happy with.

A shaved ice business can be profitable, but the level of profitability depends on various factors such as location, market demand, competition, pricing strategy, and operational efficiency. It’s not likely to be a high growth business, however.

To achieve fluffy shaved ice, consider the following factors:

• Quality ice: Start with high-quality ice that is finely shaved or finely crushed. Use an ice shaver that produces consistent and fine ice particles.
• Proper ice temperature: The ice should be kept at the right temperature to prevent melting or freezing into larger ice chunks, resulting in a finer texture.
• Flavored syrups: Use high-quality flavored syrups that are evenly distributed throughout the shaved ice to enhance the taste and experience.
• Layering technique: Layer the flavored syrups between layers of shaved ice to ensure even distribution and enhance the flavor.

Experiment with unique and creative flavor options that appeal to your target market. Offer interesting combinations and seasonal specials to keep customers engaged. Introduce distinctive and premium toppings that complement your shaved ice offerings. Consider using fresh fruits, gourmet sauces, unique syrups, or even customized toppings.

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• Decide if the Business Is Right for You
• Hone Your Idea
• Brainstorm a Shaved Ice Business Name
• Create a Shaved Ice Business Plan
• Register Your Business
• Register for Taxes
• Fund your Business
• Apply for Shaved Ice Business Licenses and Permits
• Open a Business Bank Account
• Get Business Insurance
• Prepare to Launch
• Build your team
• Run a Shaved Ice Business - Start Making Money!

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How To Start A Snow Cone Business

• Last Updated: April 3, 2024
• By: Greg Bouhl

Advertising Disclosure

If you’ve ever stopped by a snow cone cart at the beach, a fair, or a sporting event, then you already know how refreshing this favorite treat can be. Starting a snow cone business of your own can provide an exciting business venture, and when done on a smaller scale, startup costs are minimal. One of the advantages of this type of business is that it’s seasonal – it’s something you can do in the summer for extra income but doesn’t need to become a full-time, year-round business.

Business Overview

A snow cone business (also known as a shave ice or shaved ice) offers delicious frozen treats at convenient locations, like beaches and fairs. These businesses may take on various business models, including a full-service model where cones are served up ready to eat, to more of a self-serve model where kids get to churn their own ice and add their own toppings.

Snow cone businesses range from small, single-location stands to larger operations or franchises with multiple stands or mobile trucks. The business model can be highly versatile; snow cone stands can be located in a permanent location, but many operators choose to run a mobile business that can be moved to different events, such as fairs, carnivals, sporting events, and concerts.

Industry Summary

The snow cone industry is characterized by relatively low barriers to entry. Starting a snow cone business doesn’t require a large initial investment compared to other food businesses. The necessary equipment – a snow cone machine, flavors, cups, and spoons – is relatively inexpensive. Additionally, the operational and inventory costs tend to be low, which can lead to high profit margins.

One of the key success factors in this industry is the ability to offer a wide variety of flavors. Customers, especially younger ones, enjoy trying new and unique flavor combinations and toppings, so keeping up with flavor trends is important. The industry has seen an increase in demand for natural and organic flavors, in line with broader consumer trends toward healthier options.

However, like all businesses, the snow cone industry also faces its own set of challenges. The seasonality of the business means that operators need to plan for off-peak periods. In addition, there is competition from other frozen dessert businesses such as ice cream shops, gelaterias, and frozen yogurt stores.

Despite these challenges, the industry continues to thrive due to the enduring appeal of this simple, sweet treat. The future of the industry could see growth in areas such as artisanal or gourmet snow cones, the use of unique, ethnic, or adult (alcohol-infused) flavors, and increased focus on eco-friendly practices, like using biodegradable cups and spoons.

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Checklist To Start A Snow Cone Business

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Starting a snow cone business can be an incredibly rewarding experience, but it’s important to make sure you’re prepared for the challenges ahead. Use this checklist to help get your business off on the right foot.

Step 1:  Research the market

Starting a new snow cone business requires proper market research to assess if there is enough customer demand to make the business profitable. Here are some methods to conduct this research:

Demographics: Determine the potential customer base in your chosen location. Generally, snow cone businesses tend to appeal more to children, teenagers, and young adults, but adults can be a market as well, especially if your offerings have an artisanal or gourmet appeal. You can use U.S. Census data or similar resources to gather demographic information.

Competitor Analysis: Look at other similar businesses in your area. This could be other snow cone businesses, but also ice cream shops, frozen yogurt stores, and other dessert places. Look at their menu, their pricing, and their hours, and try to determine their customer volume. This could help you identify a gap in the market that your business can fill. Tools like Google Maps or Yelp can be helpful for this.

Local Events and Festivals: Assess if your area has regular outdoor events like fairs, markets, or sports events. These can be excellent opportunities for a snow cone business, especially in warmer months (especially if there aren’t already other competitors). Because of this, you might want to consider a mobile setup to take advantage of these opportunities and go where there are large numbers of people. Local event calendars, news, or city council websites can provide information about these events.

Seasonal Demand: Remember, snow cone businesses are often seasonal, with high demand in spring and summer, and then a large drop-off in fall and winter. If you plan to commit to a storefront, you’ll need to factor this into your plans, perhaps by offering other products in the cooler months or finding ways to serve indoor events.

Remember, this is all exploratory research. Once you’ve gathered your data, you’ll need to analyze it to determine if there is a profitable market for your snow cone business.

Step 2:  Create a business plan

A business plan is critical for any venture, including a snow cone business, because it helps define your business objectives, strategies, and potential challenges. It’s a roadmap for your business’s future and a tool to track your progress. Moreover, if you plan to seek financial support from investors or lenders, a well-crafted business plan is vital.

For a snow cone business, certain sections of the business plan are especially significant:

Market Analysis: A deep understanding of your target market is essential for a snow cone business, as it is largely dependent on the season and customer demographics. Understand the demand patterns, customer preferences, and your competition. Look into factors such as the local climate, population demographics, popular local events, and existing dessert businesses in your area.

Marketing and Sales Strategy: Your business plan should detail how you intend to attract customers, especially given the seasonality of the business. Considerations might include presence at local events, partnerships with local organizations, social media marketing, or loyalty programs.

Operations Plan: Detail how your business will function on a day-to-day basis. Will you operate from a fixed location, or will you have a mobile setup that moves around to different events? How will you source your ingredients? What will your hours of operation be? These details are particularly important for a snow cone business due to its unique operational needs.

Financial Projections: This is crucial for a snow cone business due to its inherent seasonality. You’ll need to demonstrate that you can maintain cash flow during the off-peak season, whether through lower operating costs, diversified income streams, or sufficient reserves from the peak season.

Remember, a business plan isn’t a static document. It should evolve as your business grows and changes. By updating your plan regularly, you can make sure it continues to align with your business’s direction and can help you make informed decisions as new opportunities or challenges arise.

Related: How to write a business plan

Step 3:  Source financing

There are a number of sources to secure the funding to start a snow cone business.

Because the cost to start is typically low, a majority of entrepreneurs kickstart their businesses using personal savings. Another common source is loans from friends or family, although this should be approached with care to avoid straining personal relationships.

If the cost to start is more than is personally available or through friends and family, traditional bank loans are a frequent choice. These require a solid business plan and good credit history, and lenders look for the owner to personally invest between 15% and 25% of the total startup costs.

Related: How to get the funding to start a business

Step 4:  Secure a location

When it comes to a location, a snow cone business is unique in that it can choose between a permanent location, a mobile cart for setting up at temporary locations and events, or a traditional food truck-type setup.

For a fixed location, finding a high-traffic area close to family events, parks, and beaches is often a good choice. The peak season for a snow cone business is typically from June through mid August, so plan accordingly when signing contracts for your location.

A mobile snow cone business that plans to sell at events like fairs and festivals can be a great option as they will travel to where there will be large crowds of people. Before committing to an event, be sure to research vendor fees, which are similar to renting the space for the duration of the event. These fees will vary depending on the event and location within that event. It’s important to carefully consider the potential profits the business could see at the event when deciding if the event fee is worth the investment.

Another consideration for a mobile snow cone business is what will you do with the equipment in between events and during the winter months. Don’t forget that the snow cone cart and other equipment will need to be stored while it is not in use. If you have a home garage, this will eliminate additional rental costs, but if not, be sure to calculate any storage costs.

Step 5:  Apply for Business Licenses and Permits

Starting a snow cone business requires several legal considerations, and an experienced owner would stress the importance of properly registering the business before operating. While specific requirements can vary by state and local jurisdiction, here are general steps to consider:

Choose a Business Structure: The structure you choose impacts your liability, taxes, and how you run the business. Common structures for small businesses like a snow cone shop include sole proprietorships, partnerships, and limited liability companies (LLCs). Many small businesses in the foodservice industry choose the sole proprietorship because of its low cost, while others prefer LLCs because they provide liability protection.

Related: Comparison of business structures

Register Your Business Name: After registering the business structure, you may need to register your business name. This process will vary depending on what business structure you pick. Sole proprietors and partnerships will often be required to register a “Doing Business As” (DBA), while corporations and LLCs register with the state during the formation process.

Obtain Business Licenses and Permits: At a minimum, a snow cone business owner (and likely any staff) will need to obtain state and/or city licensing to prepare and handle food. According to Mobile-Cuisine, a  snow cone business will need to obtain approval from the local health department . Many cities and states also require an owner or employee to take a food safety class and receive a food handler’s permit.  Be sure to check license requirements for every city your cart will operate as in many areas, the health department licensing doesn’t transfer over.

In addition, there will likely be a variety of general licenses or permits that will also be needed before opening. This could include a business license, seller’s permit (to collect sales tax), and Employer Identification Number (EIN).

Related: State guides for general business licensing

Step 6:  Purchase equipment and supplies

Now that we have the preliminary tasks out of the way, it’s time to purchase equipment and supplies so you can get your cart or stand ready to open for business.

To get started, you will need some equipment. A commercial-grade ice shaver is a must for its speed and the quality of ice it produces. You’ll also need a refrigerator or freezer for storing ice, dispensers for your syrups, a sink for cleaning (often a requirement in food service regulations), a cash register or point of sale (POS) system, and storage for cups, spoons, and other supplies. To save money, consider looking for used quality equipment that is in good condition.

Throughout the setup process, organization is key. Ensure that everything has its place and that the layout promotes efficiency. For instance, your ice and syrups should be within easy reach of the person shaving the ice.

One tip for someone setting up their first snow cone business is to focus on quality from the start. Invest in high-quality ice shavers and syrups, as the quality of your snow cones will be key to attracting and retaining customers.

Additionally, plan your workflow carefully to ensure that you can serve customers quickly, especially during peak times. Finally, keep in mind that cleanliness is crucial in any food business, so ensure your space is easy to keep clean and that you have a routine for regular cleaning.

Step 7: Get your marketing plan in place

Marketing a snow cone business can be tailored to its unique charm as a seasonal, refreshing, and enjoyable treat, with strategies varying based on whether the business operates from a fixed location or a mobile unit.

For a fixed location, having an appealing storefront is crucial. Since snow cones are fun and colorful, use vibrant colors, eye-catching signage, and tempting images of your products to attract foot traffic and engage the interest of people walking by. Collaborate with nearby businesses for cross-promotion opportunities and become an active member of your local community, participating in local events and sponsoring community initiatives.

For a mobile unit, use social media to announce your location each day and promote special offerings. Instagram is especially valuable due to its visual focus; you can post enticing photos of your snow cones, highlight daily specials, and interact with your followers. Utilize geotagging to make it easier for potential customers to find you.

Regardless of your operation type, consider partnering with schools, community centers, or local sports leagues for events or fundraisers. Offering your snow cones at local fairs, festivals, or farmer’s markets can also help increase your visibility. In addition, having a menu item that you are known for, such as a unique flavor or a massive snow cone, can be a powerful draw.

In both cases, branded snow cone cups, paying for advertising at the events where the business is selling, and investing in eye-catching signage can be effective marketing techniques. Also, delivering top-notch customer service and high-quality products is crucial. Satisfied customers can become advocates for your brand, spreading the word about your business through reviews and personal recommendations. By building a loyal customer base, you can strengthen your reputation and grow your business.

Related:  Low-cost ideas to market a new business

Step 8: Prepare to launch

As you finalize your plans to start your snow cone business, there are other items to knock off of your list. Everyone’s list will be different, but here are some common items:

Business Insurance: Secure a comprehensive insurance policy. At a minimum, you will likely need general liability insurance to protect against accidents or injuries. If you have a mobile unit, auto insurance will be necessary, and if you employ staff, workers’ compensation insurance will be a requirement in many regions.

Related:  Common types of insurance a business may need

Bookkeeping: Implement a bookkeeping system to keep track of your income, expenses, and taxes. While you can do this yourself using software like Wave Accounting (FREE) or Quickbooks , you may also consider hiring a bookkeeper or accountant. This will not only help with tax preparation but also give you valuable insights into your financial health and profitability.

Banking: Open a business bank account separate from your personal accounts. This will help you track business income and expenses, and it’s important for legal and tax reasons.

Menu Creation: Make your menu visually appealing and easy to read. Use clear fonts and images that accurately represent your offerings.

Set Pricing: Based on your costs and competitive analysis, determine a price that provides a reasonable profit margin. Typically, snow cone businesses aim for a food cost percentage of 10-20%, but this can vary based on factors like location and business model.

Credit Card Processing: Choose a credit card processing system, as many customers prefer to pay with cards rather than cash. This can be part of your POS system, or you might choose a standalone service like Square or Stripe . When researching, consider factors like cost per transaction, ease of use, and reliability.

Employee Management: If hiring employees, you’ll need systems for hiring, training, scheduling, and payroll. Stay aware of all labor laws in your area.

Health Regulations: Maintain strict compliance with health and safety regulations. Regularly review your procedures and update them as needed.

Remember, every business is unique, so these guidelines may need to be adapted to your specific situation. Starting a business requires careful planning and attention to detail, but with the right preparation, you can create a successful snow cone business that brings joy to your customers and fulfills your entrepreneurial dreams.

This material is property of StartingYourBusiness.com

Common Questions When Starting A Snow Cone Business

How much does it cost to start a snow cone business.

The startup costs for a snow cone business can vary widely based on several factors such as the business model (fixed location versus mobile unit), location, size, and whether you’re purchasing new or used equipment.

On average, starting a small to medium-sized snow cone business could cost anywhere between $2,000 to $20,000. This includes initial investments in equipment, initial inventory, permits, licenses, and marketing.

Here is a breakdown of the potential costs:

Equipment: This includes an ice shaver, refrigerator or freezer, and serving supplies. If you’re operating a mobile unit, you’ll also need to factor in the cost of the truck or cart. You can save money by buying used equipment, but new equipment could range from $2,000 to $10,000, depending on the specifics.

Inventory: Initial purchases of ice and flavor syrups will likely cost several hundred dollars.

Permits and Licenses: These can range from $100 to over $1,000, depending on local regulations.

Marketing: Costs for marketing materials and initial advertising campaigns could range from $200 to $1,000.

Insurance: Costs vary, but you can expect to pay a few hundred to a thousand dollars per year for a basic liability policy.

Rent or event fees: This will depend heavily on your specific location, but it could range from a few hundred to several thousand dollars per month.

In conclusion, while there’s a considerable range in startup costs, having a solid business plan and budget can help you plan for these expenses, so you can judge the potential profitability of your snow cone business.

How much can a snow cone business owner make?

The earnings of a snow cone business owner can significantly vary, depending largely on factors such as location, business model (mobile or fixed), size, seasonality, and competition. However, a rough estimate can be derived using a formula that takes into account the selling price, cost of goods sold (COGS), and the number of units sold per day.

Let’s say you sell your snow cones for an average price of $3.00 each and your COGS (which includes the cost of ice, syrup, cup, and spoon) is approximately $0.50 per snow cone (16.7% COGS). This means you make a profit of $2.50 per snow cone.

In a busy location, you might sell 100 snow cones per day on average. During peak season (roughly 90 days), this means: Profit per snow cone ($2.50) x Units sold per day (100) x Number of days (90) = $22,500

This is just during peak season and does not account for sales during off-peak times. Remember, though, that this is gross profit and does not account for other costs such as rent, wages, utilities, insurance, and taxes.

It’s also important to remember that snow cone sales can be highly seasonal and weather-dependent. Sales will likely be higher on hot, sunny days and during summer months, while sales may decrease or even halt during colder months, unless you’re located in an area with a year-round warm climate. Some businesses branch out into other offerings to compensate for this, providing snow cones during the summer and offering other foods, like ciders, that appeal during fall festivals. Offering cold drinks and snack foods can complement the snow cones during the summer, potentially leading to higher sales.

Please remember that this is a rough estimate and actual earnings can greatly vary based on a myriad of factors. It’s crucial to perform a detailed financial analysis when starting your business to gauge potential profitability.

What skills are needed to run a snow cone business?

Running a snow cone stand doesn’t require a business degree, but certain skills and experiences can help to increase the chances of the business being a success.

Food service skills.  Previous experience in the food service industry is an advantage and can give a business owner knowledge of safe food handling procedures, how to minimize service time, and more.

Customer service skills . Engaging with customers is a large part of this business. A warm, welcoming personality and strong customer service skills will go far, especially when a business repeatedly sells at the same location.

Mechanical knowledge.  From troubleshooting cart or van issues to maintaining the snow cone machines and equipment, some mechanical knowledge can save a business owner from always needing to hire repair technicians.

Management experience.  Previous experience in hiring, training, and managing staff will allow a business owner to put together a team of great employees.

Creativity.  Creative marketing and ideas for new potential locations can contribute to the business’s success and drive sales.

Networking skills.  Securing permission to sell at certain events may require connections with the organizers. A business owner with strong networking skills can build up plenty of connections with business owners and other community professionals. This can lead to future opportunities for the snow cone business.

Organization capabilities.  Snow cone businesses frequently travel to different locations, so strong organization and scheduling capabilities are important.

What is the NAICS code for a snow cone business?

The NAICS code for a snow cone business is 311811.

The NAICS code (North American Industry Classification System) is a federal system to classify different types of businesses for the collection and reporting of statistical data.

Related: What is a NAICS code?

Resources: National Food Truck Association

With over two decades as an entrepreneur, educator, and business advisor, Greg Bouhl has worked with over 2,000 entrepreneurs to help them start and grow their businesses. Fed up with clients finding and acting on inaccurate and outdated information online, Greg launched StartUp101.com to be a trusted resource for people starting a business.

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Snow Cone Business Plan

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Starting a snow cone business can be a profitable venture, especially during the hot summer months when people are seeking refreshing treats. To ensure the success of your snow cone business, it is essential to have a well-defined business plan in place. This article will guide you through the process of creating a comprehensive snow cone business plan, highlighting key aspects and providing real-life examples for better understanding.

Executive Summary

Business overview, market analysis, target audience, product and menu selection, pricing strategy, location and equipment, marketing and promotion, operations and management, financial projections, risk assessment.

The executive summary provides an overview of your snow cone business plan, summarizing key points and objectives. It should briefly outline your vision, mission, target market, and financial projections. The executive summary serves as a snapshot of your entire plan and should capture the reader’s attention.

In the case of “Cool Cones,” the executive summary would highlight their goal of becoming the leading provider of unique snow cone flavors in the Miami area, targeting families, young adults, and tourists. They anticipate a 20% increase in revenue over the next three years.

In this section, introduce your snow cone business and provide details about its legal structure, ownership, and location. Describe your business concept, including the types of snow cones you plan to offer, any unique selling points, and the overall experience you aim to create for your customers.

“Cool Cones” is a family-owned business that operates from a vibrant beachfront kiosk, attracting customers with its tropical-themed decor and friendly staff. They specialize in offering organic, all-natural snow cone flavors sourced from local fruits.

Conduct a thorough market analysis to identify your target market, understand their preferences, and assess the competitive landscape. Determine the demand for snow cones in your area, analyze consumer trends, and research competitors to gain insights into their strengths and weaknesses. This information will help you tailor your business strategies accordingly.

In the Miami market, “Cool Cones” conducted market research and discovered a high demand for unique, tropical flavors among both locals and tourists. They also identified a lack of direct competitors in the immediate vicinity, giving them a competitive advantage.

Identify your target audience based on demographics, psychographics, and behavior patterns. Determine who your ideal customers are, including families, teenagers, or professionals. Understanding your target audience will enable you to tailor your menu, pricing, and marketing efforts to appeal to their preferences and needs,

“Cool Cones,” their target audience consists of families looking for a fun and refreshing treat while enjoying a day at the beach, as well as young adults seeking unique and Instagram-worthy food experiences.

Create an enticing menu that showcases a variety of delicious and refreshing snow cone flavors. Experiment with unique combinations and offer both classic and innovative options to cater to a wide range of tastes. Consider dietary restrictions and offer sugar-free or natural ingredient options to attract health-conscious customers.

“Cool Cones” offers an extensive menu with flavors like Coconut Paradise, Mango Tango, and Strawberry Sunset. They also provide the option to add fresh fruit toppings and a choice of natural sweeteners.

Choose a strategic location for your snow cone business, ideally in high-traffic areas like parks, beaches, or near popular attractions. Ensure there is adequate parking and foot traffic to maximize visibility and accessibility. Additionally, invest in quality snow cone machines, utensils, and storage equipment to maintain the quality of your products. For “Cool Cones,” their beachfront kiosk is situated near a popular tourist destination, ensuring a steady flow of customers.

They have also invested in commercial-grade snow cone machines to deliver consistent and high-quality snow cones. Develop a pricing strategy that strikes a balance between profitability and affordability. Consider factors such as ingredient costs, overhead expenses, and market demand when determining your pricing structure. Offering different sizes and combo deals can also attract customers and increase sales. For instance, “Cool Cones” has priced their snow cones competitively, with small sizes starting at $3 and larger sizes priced at $5. They also offer combo deals where customers can add a side item or beverage for a discounted price.

Choose a strategic location for your snow cone business, ideally in high-traffic areas like parks, beaches, or near popular attractions. Ensure there is adequate parking and foot traffic to maximize visibility and accessibility. Additionally, invest in quality snow cone machines, utensils, and storage equipment to maintain the quality of your products. For “Cool Cones,” their beachfront kiosk is situated near a popular tourist destination, ensuring a steady flow of customers. They have also invested in commercial-grade snow cone machines to deliver consistent and high-quality snow cones.

Develop a comprehensive marketing and promotion plan to create awareness and attract customers to your snow cone business. Utilize both online and offline channels, including social media platforms, local advertisements, flyers, and collaborations with local events or organizations. Engage with your target audience through engaging content, contests, and special offers.

“Cool Cones” actively uses social media platforms like Instagram and Facebook to showcase their unique flavors, interact with customers, and announce special promotions. They collaborate with local beach volleyball tournaments and offer discounts to participants, leveraging the event’s popularity to attract new customers.

Outline the day-to-day operations of your snow cone business, including staffing requirements, training programs, and quality control measures. Establish efficient processes for ingredient procurement, preparation, and storage. Additionally, ensure exceptional customer service by training your staff to provide a friendly and enjoyable experience for every customer.

Include detailed financial projections that outline your expected revenue, expenses, and profitability. Consider factors such as ingredient costs, equipment maintenance, rent, utilities, and marketing expenses. Conduct a break-even analysis to determine the number of snow cones you need to sell to cover your costs and achieve profitability.

“Cool Cones” projects a revenue of $100,000 in the first year, with a 30% increase in subsequent years. They estimate monthly expenses of $5,000, including ingredients, rent, utilities, and marketing, resulting in a projected profit of $50,000 in the first year.

Identify potential risks and challenges that may affect the success of your snow cone business. This can include seasonality, weather conditions, competition, or changes in consumer preferences. Develop contingency plans to mitigate these risks and ensure your business remains resilient in the face of adversity.

“Cool Cones” acknowledges the seasonality of their business and diversifies their offerings during the off-peak season by introducing hot beverages and warm desserts. They also closely monitor weather forecasts to adjust their operations accordingly.

In conclusion, a well-crafted snow cone business plan is essential for the success of your venture. By carefully considering the various aspects outlined in this article, you can develop a comprehensive plan that will guide you towards achieving your business goals. Remember to adapt and evolve your strategies as needed to stay ahead in the competitive snow cone industry.

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The startup costs for a snow cone business can vary depending on factors such as location, equipment, and licensing. On average, it may range from $5,000 to $20,000.

Yes, snow cone businesses tend to be more seasonal, with peak demand during the summer months. It is important to plan and budget accordingly to sustain your business during the off-season.

 Yes, you can consider diversifying your menu by offering complementary products such as beverages, snacks, or novelty items to enhance the customer experience and increase sales.

 Focus on unique flavors, creative toppings, exceptional customer service, and a vibrant atmosphere. Consider offering themed events, loyalty programs, or collaborations with local businesses to stand out in the market.

 Implement effective marketing strategies such as social media promotions, local partnerships, and special offers. Engage with the community, participate in local events, and create an appealing online presence to generate interest and drive foot traffic.

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Shaved Ice Beverage Business Plan

Start your own shaved ice beverage business plan

Executive Summary executive summary is a brief introduction to your business plan. It describes your business, the problem that it solves, your target market, and financial highlights.">

Ice Dreams will sell shave ice as its primary product in addition to soft drinks and frosty Latin drinks called licuados. Shave ice is the hottest new dessert since frozen yogurt! Shave ice is heating up rapidly and shows no sign of cooling.

Shave ice has been around for many years, beginning in Asia, then becoming popular in Hawaii. People would shave ice by hand, creating a cold, flaky snow. Then they’d top it with fruit juices to create a refreshing treat. Something this good couldn’t remain a secret. In recent years, the taste for shave ice has spread all over the world.

Shave ice is much different than a sno-cone in that it is made by a small counter-top machine that shaves ice rather than grinding it like a sno-cone machine, which results in ice so fine that it rivals real snow! The snow is then placed in bowl or cup and filled with high quality tropical fruit flavors. Because the snow is so soft the syrup is held within its tender texture versus settling to the bottom like traditional sno-cones. Since the syrup is absorbed into the snow, it must be eaten with a spoon instead of a straw.

Because shave ice is so tender and made with the thickest, best-tasting tropical fruit flavors, it is preferred by adults and children of all ages and ethnic backgrounds.

A drive-through business will be built on privately-owned commercial property on Highway 86 (Adams Avenue) in El Centro, California. Other products which will be incorporated into the business including beverages (soft drinks and licuados).

1.1 Objectives

• To construct a drive-through building (12′ x 20′) on existing privately-owned commercial property (50′ x 120′).
• To produce a net profit of at least $50,000 by the third year of operation.
• To sell 20 different tropical and Mexican flavored syrups.
• To sell other products such as soft drinks and licuados.

1.2 Mission

Ice Dreams will produce and sell shave ice with 20 different flavored syrups, soft drinks, and licuados to consumers in El Centro, California. Retail customers will be in the low- to mid-income bracket, and will range in age from children to adults.

1.3 Keys to Success

The keys to success are:

• Will be the first business of its kind in the city of El Centro, California.
• Business will be located on a major city highway, next to several housing developments, the city pool, near schools and parks, and along a major restaurant and motel strip.
• Product quality will include a large variety of tropical and Mexican flavored syrups.
• Business has the potential for expansion into other Imperial County communities.
• City of El Centro experiences warm to hot weather approximately seven months of the year.
• Two-way traffic on Highway 86 averages 48,300 vehicles on a daily basis.

Company Summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">

Ice Dreams will be known for selling shave ice with 20 different tropical and Mexican flavored syrups to children and adults in El Centro, California. Other products will include soft drinks and licuados.

2.1 Company Ownership

Ice Dreams will be owned by Ofelia R. Arellano as a sole proprietorship.

2.2 Start-up Summary

Start-up costs will be approximately $52,010 which will include facility construction including sidewalks, parking, inventory, mandatory city permits, and other expenses associated with opening this business. The start-up costs will be financed through a loan. Appendix A provides more detailed information regarding permit requirements, equipment, construction costs, and land improvements required to open this new business.

2.3 Company Locations and Facilities

Ice Dreams will be located on Highway 86 in El Centro, California which experiences a high volume of traffic on a daily basis. According to a study by Cal Trans (Traffic Volumes, 1995), approximately 48,300 vehicles pass through this location on a daily basis making it an ideal location for business. The majority of traffic enters and exits via Imperial Avenue and Fourth Avenue traveling through Highway 86.

A 240 square foot drive-through facility will be built on a privately-owned commercial property which will also include parking facilities, landscaping, and a small sitting area. Other major businesses located on Highway 86 include Carl’s Jr., Roberto’s Restaurant, La Fonda Restaurant, Raging Bull Restaurant, China Restaurant, Donut Shop, Steak House, Big John gas station, Recreation Center, and several motels.

The appendix provide additional information on the company facilities, a tentative plot plan, and highlights of the traffic study conducted by Cal Trans.

Main products to be sold through the Ice Dreams business will be shave ice topped with tropical and Mexican flavored syrups in three main sizes: small, medium, and large. Other products will include three soft drinks (Sprite, Coke, and Diet-Coke), and licuados.

3.1 Product Description

One major product will be sold through Ice Dreams which will include shave ice topped with tropical and Mexican flavored syrups. Twenty different tropical and Mexican flavored syrups will be sold and include the following:

Wild Watermelon, Pina Colada, Pink Lemonade, Guava Grape, Cherry Jubilee, Root Beer, Kiwi, Strawberry, Blue Bubble Gum, Orange Mango, Raspberry Red, Luscious Lime, Bodacious Banana, Tamarindo, Jamaica, Hortacha, Melon, Papaya, Manzana, and Limon.

Other products will include soft-drinks in three flavors: Coke, Diet-Coke, and Sprite, and licuados in three flavors (strawberry, banana and mango).

3.2 Competitive Comparison

No other business in El Centro specifically caters to the shaved ice market on a large scale. It is anticipated that prices will be competitive with other businesses who sell shave ice on a smaller basis.

3.3 Sales Literature

Sales literature to be distributed to the general community will include fliers, advertisement in the local newspaper (Imperial Valley Press), and other print media.

3.4 Sourcing

Ice Dreams will purchase products from Crystal Fresh, Inc. which manufactures and distributes high-quality syrups and ice shavers. All equipment and supplies are available through a regional distributor. Mexican flavored syrups will be purchased in Mexicali, Baja California, Mexico.

3.5 Future Products

It is anticipated that 10-15 additional syrups will be added such as Spearmint, Black Cherry, Cinnamon, Blueberry, Peach, Red Apple, Tutti Frutti, Coconut, Cola, Green Apple, Tangerine, and Vanilla. Also, future products to be sold will include ice cream in vanilla and chocolate flavors.

Market Analysis Summary how to do a market analysis for your business plan.">

El Centro is geographically situated at the junction of major east-west and north-south transportation routes. El Centro is also referred to as the “center of opportunity” with benefits created by the North American Free Trade Agreement (NAFTA) becoming one of Southern California’s most promising new commercial/industrial areas.

El Centro is accessible via Interstate 8, State Highway 111, and State Highway 86, where Ice Dreams will be located.

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4.1 Market Segmentation

According to Advertising Age (September, 1995), premium ice cream and frozen yogurt products are losing market share to mid-priced and other frozen dessert products. Information Resources reported that frozen ice products comprised a third of the $2.4 billion ice cream category for the year ending May 21, 1995, generating $717.7 million, up 9.3% from the previous year.

Based on this information, it is anticipated that the frozen dessert market can be divided into two customer segments. The first segment prefers premium ice cream and frozen yogurt products. The other segment obviously includes those that prefer frozen ice products. Shave ice products are ideal for today’s health-conscious consumers. They boast no fat, no cholesterol, and are relatively low in calories.

Ice Dreams will target all segments of El Centro’s population: children, teenagers, and adults. The Hispanic population will be of special interest since it comprises 65% of El Centro’s total population. This population will be targeted with Mexican flavored syrups and licuados.

4.2 Target Market Segment Strategy

Ice Dreams will target the low- to mid-income consumers who want to have a high quality dessert for moderate prices. Ice Dream’s shave ice meets the quality required by these customers since it will also cater to the large Latino population in El Centro with its Mexican flavored syrups.

4.3 Industry Analysis

One of the best known shave ice businesses is Sno Biz Shave Ice under the parent company of Crystal Fresh, Inc. Dealerships such as Sno Biz have demonstrated the success and feasibility of selling shave ice. The Sno Biz dealership has been in existence for the last 11 years with over 3,000 individual dealerships throughout the United States. Sno Biz syrups products are also sold in Wal Marts throughout the country. While no Sno Biz dealership currently exists in California, Sno Biz products are sold at the San Diego Zoo, Lion Country Safari, and the San Diego Military base with great success. The potential success for selling shave ice is attributed to the following:

• Compared to other food service products, Ice Dreams will be a relatively simple business to operate.
• Shave ice is similar to a Mexican favorite called raspado, but because it is softer and tastier, it is preferred over raspados.
• Shave ice has a low food cost and is easy to prepare, which keeps speed-of-service at optimum levels to keep up with high-traffic volumes.
• Ice Dreams will be easy to maintain and clean.
• Shave ice is a product that has yielded a considerable profit in terms of cost to produce at $0.16.
• Shave ice is an ideal product for the health-conscious consumer.

Market research conducted in El Centro did surface one raspado (sno-cone) business on a small scale called “Snow Shack” located on State Street. Snow Shack consists of a small trailer that accommodates only one employee. Sno-cones are sold in cups at prices ranging from $1.00 (small), $1.25 (medium) to $1.50 (large).

Sno-cones were also found to be sold at Garcia’s Food Market and Wal Mart. Each sold sno-cones in one regular size at $1.00 each.

Research conducted in Bullhead City, Arizona noted that the Sno Biz dealership only sells shave ice as their primary product. Shave ice units sold for $1.25 (small), $1.75 (medium) to $2.25 (large) per unit. In interviewing the current owner, he indicated that during his first year in business he was selling 200 units per day.

Research in San Diego, California revealed that shave ice is sold along with other products. Several businesses in Mission Bay sold shave ice with prices ranging from $1.79 (small), $1.99 (medium) and $2.39 (large). In terms of licuados, prices were $2.79 (regular) and $3.15 (large).

Research conducted in Honolulu, Hawaii, showed that in some locations, shave ice sold as high as $5.00 for a regular size. However, the majority of sno-cones were sold by the flavor and not necessarily by the size. For example, one flavor was $1.79, two flavors were $2.29, and three flavors sold for $2.79.

4.3.1 Competition and Buying Patterns

The shave ice business will be new to El Centro. Competitors in this type of business primarily sell raspados or sno-cones and do not focus on the shave ice market. One major competitor is the “Snow Shack” located on State Street. Snow Shack sells sno-cones through a small, one person trailer with limited choices of syrups. Other competitors sell sno-cones through Garcia’s Market and the Wal-Mart store which also have limited syrup selections and do not necessarily focus on the sno-cone or shave ice industry as their primary product.

The keys to success will definitely focus on selling shave ice and not sno-cones made with coarse ice and selling high quality syrups. Prices will also be competitive with those of the competition.

4.3.2 Main Competitors

Main competitors include the Snow Shack, Garcia’s Market, and Wal-Mart. The following are strengths and weaknesses of each.

• Strengths : The main strength of Snow Shack is that it is the only business in El Centro that caters to the sno-cone market. It also has very reasonable prices.
• Weaknesses : The primary weakness of Snow Shack is that it does not sell shave ice but rather sno-cones made from very coarse ice. Syrups are also not of good quality.
• Garcia’s Market
• Strengths : The main strength of sno-cones sold by Garcia’s Market is their low price of $1.00 and the convenience to the shopper in buying sno-cones while doing their shopping.
• Weaknesses : The main weakness of sno-cones sold by Garcia’s Market is that they do not sell quality syrups and prefer to sell the more inexpensive brand with lower quality taste.
• Strengths : Main strength of sno-cones sold by Wal-Mart is the convenience to the shopper and low price.
• Weaknesses : Wal-Mart’s weakness, like Garcia’s Market, is that they do not sell quality syrups. Also, the sno-cone business is not their primary focus or product.

4.3.3 Industry Participants

The shaved ice industry in El Centro, California currently has no key players since no other business of this type currently exists in the Imperial Valley.

Strategy and Implementation Summary

Ice Dreams is planning for slow growth by expanding flavors available from 20 to 30 in year two of operation. Also, an additional product to be sold in year two will include ice cream in flavors of vanilla and chocolate.

5.1 Marketing Strategy

Ice Dream’s overall marketing strategy will be to create an image of offering the highest quality shave ice in Imperial County. The business will be located in a high traffic area of El Centro. Customers will be reached through advertisements such as fliers, newspaper ads, and through its grand opening ceremonies.

A special marketing program will also be incorporated by offering special coupon prices for nearby restaurants, motels, city pool, the donut shop, and the gas station to customers who purchase any product at Ice Dreams.

5.1.1 Promotion Strategy

Ice Dreams will promote shave ice to customers by:

• Flier distribution to consumers’ homes within a five-mile radius.
• Newspaper advertisements will be purchased during the first three months of business until a clientele is built.
• Ice Dreams will offer discounts to recreational groups such as children/adult baseball and football teams who play in nearby facilities.
• Promoting products for an introductory price at its Grand Opening.
• Ice Dreams will “adopt a school” and provide shave ice to individuals who are selected for having excellent attendance, good grades, and good citizenship. Other incentives will include sponsoring a good attendance program by purchasing a bike and raffling it to students with the best attendance. This will be a promotional strategy to encourage business.

5.1.2 Distribution Strategy

5.1.3 positioning statement.

Distribution of shave ice will be through the business facility only. It is anticipated that in the future, a small portable ice shaver will be purchased such that the product could be sold on site at various fund raising functions through churches, schools, etc.

5.1.4 Pricing Strategy

Shave ice will be offered at the following prices:

• Small $1.00
• Medium $1.25
• Large $1.50

Soft Drinks

• Regular $0.79
• Large $0.99
• Regular $1.35

Products will be sold on a cash basis only.

5.2 Sales Strategy

Sales strategy will be directly linked to marketing programs since all sales will be through the business facility only.

5.2.1 Sales Forecast

Consumer sales will start in January, 1997 (or sooner if construction is completed before the targeted date) with a grand opening anticipated by then. Sales and units costs for the first six months of 1997 are shown in the sales forecast as projected numbers. As indicated, primary sales will occur during the peak warm weather months as noted in the following chart and table.

5.3 Milestones

Sample Milestones topic text.

The milestones table and chart show the specific detail about actual program activities that should be taking place during the year. Each one has its manager, starting date, ending date, and budget. During the year we will be keeping track of implementation against plan, with reports on the timely completion of these activities as planned.

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

Ice Dreams will hire an employee to assist with the business. Ice Dreams will require minimum daily supervision after it has been established since all three products are fairly easy to make.

6.1 Organizational Structure

Ofelia R. Arellano, the owner, will have one individual assisting her with the business. Long range plans will include a second employee to assist with the weekend hours.

6.2 Management Team

Ofelia R. Arellano is the most important member of the management team. Dr. Arellano is a graduate of the University of California, Santa Barbara with several advanced degrees (Masters and Doctorate in Psychology). She has spent the last six years working as an administrator overseeing a budget of approximately $800,000. Ofelia will oversee the business primarily during the weekend hours and Frank Arellano will oversee the business during weekdays along with one employee.

Business expertise include:

Budget Control

• History Based Budgeting
• Object-Code Budgeting
• Program Budgeting
• Planned Programming Budgeting Systems

Personnel Management

• Management by Goals and Objectives

Strategic Planning

• Long-Range Planning
• Total Quality Management
• Operational Planning

Public Relations

• Advertising for Educational Purposes
• Marketing Research

Community Leadership

• Advisory Boards
• Business and Educational Partnerships

City Planning and Development

• Board of Director, San Ysidro Planning and Development Group

Business Needs Assessment and Consultation

• Board of Directors, San Ysidro Chamber of Commerce

Frank Arellano will serve as a consultant on a volunteer basis. Mr. Arellano spent over 35 years in the retail business handling marketing and inventory for a major food chain. He is familiar with all aspects of business management and operations having owned and operated his own grocery store in El Centro. Mr. Arellano will also assist in the building design, landscaping layout and business marketing. Mr. Arellano will supervise the business during the week days which means managing one employee.

6.3 Personnel Plan

Monthly personnel cost estimates are included in the following table.

Financial Plan investor-ready personnel plan .">

• We want to finance growth mainly through cash flow. We recognized that this means we will have to grow slowly.
• The most important indicator in our case is that minimal inventory will have to be stored for these products.

7.1 Important Assumptions

Monthly sales are the largest indicator for this business. There are some seasonal variations with the months of March through September being the highest sales months.

7.2 Key Financial Indicators

The following Benchmark chart shows our key financial indicators.

7.3 Break-even Analysis

The following table and chart show the current break-even analysis.

7.4 Projected Profit and Loss

We expect significant profits in all three years.

7.5 Projected Cash Flow

Projected cash flow is estimated for the next three years as shown in the table below.

7.6 Projected Balance Sheet

The balance sheet shows a slow but steady upward growth in net worth after initial start-up.

7.7 Business Ratios

Standard business ratios are included in the table that follows. The ratios show a plan for balanced, healthy growth. The standard industry indicators shown are for SIC 5812, eating places.

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Business Ideas

How To Start A Snow Cone Business

By miriammetz

July 15, 2022

People flock to snow cone stands every summer to cool down with a refreshing icy treat. But would you believe starting your own snow cone business is relatively easy? All you need is a few supplies and some space to work in.

This guide will walk you through everything you need to know about getting started in a successful snow cone business. 

Whether you’re looking for a fun side hustle or are thinking of making it your full-time gig, read on for tips and advice on how to start a snow cone business.

SWOT Analysis of a Snow Cone Business

Before you jump in and start your business, it’s important to take a step back and analyze the Strengths, Weaknesses, Opportunities and Threats (SWOT) associated with a snow cone business. Knowing these factors can help you make strategic decisions to ensure success.

Strength : Snow cones are a beloved treat people love throughout the year. Plus, they don’t require any special equipment or expensive ingredients. This makes them an attractive option for those wanting to enter the food industry without breaking the bank.

Weakness : As summer is typically the most popular season for snow cone stands, seasonal fluctuations in demand can be challenging to manage and account for when running a snow cone business.

Opportunity : With the rise in popularity of food trucks, opportunities to sell snow cones at festivals, concerts, and special events have grown significantly over the years.

Threat : Increasing competition from other local businesses can be challenging when establishing your snow cone stand. To stand out, you’ll need to be creative with your menu options and marketing approach.

Learning How To Make Snow Cones

Making good snow cones is an art form that requires some practice and skill. To ensure you’re offering delicious treats, it’s essential to learn how to make snow cones correctly.

Start by familiarizing yourself with different types of snow cone machines. Each one works differently, so you’ll need to understand the nuances before you can start making cones.

When selecting ingredients, be sure to use high-quality products that are free from artificial colors and flavors. Fresh fruits and natural sweeteners such as honey or agave nectar are all great options for your snow cone recipes.

It’s also essential to learn proper mixing techniques to create a consistent product every time. This includes learning how much syrup and ice to combine for each flavor and when to add additional toppings, such as sprinkles or fruit pieces.

Finally, practice different presentation styles, such as swirled or fruit-filled cones to create a unique and appealing product that customers will love.

Choose Snow Cone Concept

Before launching your snow cone business, choosing the right concept is essential. For example, do you want to operate a roadside stand, food truck, or brick-and-mortar shop?

Each option has its own set of benefits and challenges. For example, a food truck allows you to move to different locations but requires a significant equipment investment.

A brick-and-mortar shop gives you a more permanent presence in the community, but it also comes with high overhead costs. The right concept for your business will depend on your budget, target market, and long-term goals.

But no matter which option you choose, make sure you have a well-thought-out plan in place to ensure success.

Shaved Ice vs. Snow Cone

Shaved ice business and snow cones may seem interchangeable, but there is a big difference between the two.

Shaved ice is made by shaving a block of ice into fragile flakes, while snow cones are made by crushing ice into small pieces. As a result, shaved ice has a much more delicate texture than snow cones. This subtle difference can make a big impression on customers, so deciding which type of ice you want to use in your business is essential.

Different syrups can be used for shaved ice and snow cones. Snow cone syrup is typically very thick and sticky, while shaved ice syrup is thinner and easier to apply evenly.

Once you’ve decided on your concept, you’ll be able to choose the right ingredients and start serving up refreshing treats for your customers.

Choose A Name For Your Snow Cone Business

As anyone in the snow cone business will tell you, coming up with a catchy name for your business is essential . After all, your snow cone cart will compete with many other companies for attention.

A good name should be easy to remember and give customers an idea of what they can expect from your business. For example, if you’re known for your unique flavor combinations, you might want to include that in your name.

Or, if you have a fun and festive atmosphere, you might want to reflect that in your choice of words. But ultimately, the goal is to choose a name that will help you stand out from the crowd and attract customers to your business.

So being a snow cone business owner, whatever you decide, make sure it’s something you’re happy with – because it will be with you for a long time!

20 Creative Names for a Snow Cones Business

1. Sweet Serenity Snow Cones : This whimsical name evokes a sense of calm and relaxation that customers will experience while enjoying your snow cones.

2. Snowy Swirls : A catchy phrase that hints at the swirls of toppings and syrups your customers can expect to find on their treats.

3. Tastebud Treats : Let your customers know that each bite delivers a delicious burst of flavor with this creative title.

4. Icy Delights : Perfect for those looking to cool down with a sweet snack, Icy Delights promises an enjoyable treat every time.

5. Cool Creations : An imaginative name for those who like to mix unique flavors and experiment with new recipes.

6. Fluffy Flavors : A fun and lighthearted choice that will put a smile on your customers’ faces.

7. Snowy Sensations : An ideal name for those who want to emphasize the smooth texture of their snow cones.

8. Frosty Frolics : Perfect for creating an atmosphere of fun and frivolity in their shop or cart.

9. Sweet Shavings : An ideal choice for highlighting the delicate texture of shaved ice treats.

10. Icicle Islands : Give your customers a little hint of paradise with this tropical-inspired title!

11. Cool Cravings : Let your customers know there’s no better way to satisfy their cravings than with a refreshing snow cone.

12. Snowy Splendor : Conjure up images of glittering ice crystals and sweet flavors with this enchanting name.

13. Icy Indulgence : Let your customers know they can indulge their taste buds with a frosty treat any time they want!

14. Snow Dreams : A whimsical choice for those who want to offer their customers an escape into a winter wonderland every time they visit.

15. Slush Sensations : An exciting option for those looking to emphasize the icy texture of their treats.

16. Fluffy Frostbite : For those who are all about fun flavors and bold combinations, this is a perfect choice!

17. Snowy Refreshers : An ideal name for creating a refreshing customer experience.

18. Icey Imaginations : Perfect for those who like to experiment with new recipes and offer their customers unique flavor combinations.

19. Frosty Fantasies : Give your customers a little taste of fantasy with this creative title!

20. Chilled Creations : Let your customers know they can expect something special every time they visit with this catchy choice!

Decide On A Logo And Branding

A well-designed logo and branding can help your snow cone business stand out. When choosing a logo, remember that it should be simple and easy to remember.

You’ll also want to choose colors that reflect the personality of your business. For example, if you’re targeting families with young children, you might want to use bright, cheerful colors.

Muted tones may be more appropriate if you’re aiming for a more upscale market. Once you’ve decided on a logo and color scheme, you’ll need to incorporate these elements into your marketing materials. This includes everything from your website and business cards to signage and packaging.

Creating a cohesive and visually appealing brand will make it easy for customers to remember your business and return for more snow cones!

Equipment Needed For A Snow Cone Business

To run a successful snow cone business, you’ll need the following equipment:

• Snow Cone Machine : A snow cone machine is essential for converting ice into fluffy snow. It should have adjustable blades to achieve the perfect texture for your customers.
• Serving Containers : You’ll also need disposable containers to serve your product. Paper cones and plastic cups are both popular options.
• Ice Scoop : An ice scoop will help you portion out just the right amount of ice into each container.
• Small Refrigerator Or Freezer: You’ll need somewhere to store all that ice! A small refrigerator or freezer will do the trick. Make sure it’s big enough to hold all the ice you’ll need throughout the day.
• Flavors and Syrups : Finally, you’ll need a selection of flavors and syrups to give your customers plenty of options.

These supplies are all relatively inexpensive and easy to come by, so rest assured that setting up your business won’t break the bank!

Creating Your Snow Cone Business Plan

Now that you know what equipment you’ll need for your snow cone business, it’s time to create a comprehensive business plan. A good business plan should include information about:

• Your proposed products and services
• The target market for those products and services
• An outline of how you plan to reach that target market
• The costs associated with launching and running the business, such as equipment and supplies
• A timeline for achieving your goals
• By planning out these details in advance, you’ll have a better idea of what resources you need to get started.

Business Plan for a Snow Cone Business

Snow cone shack business plan.

1. Executive Summary

Snow Cone Shack is a new business venture located in the downtown area of Anytown, USA. We will provide customers with delicious and affordable snow cone treats made to order with unique flavors and combinations. Our goal is to become an integral part of the local community by providing a fun, family-friendly atmosphere where customers can come and enjoy themselves while enjoying our tasty treats.

2. Products & Services

At Snow Cone Shack, we offer a variety of flavor combinations for our snow cones and traditional flavors like cherry, blue raspberry, and grape. Additionally, we allow customers to create custom concoctions so everyone can have the perfect treat.

3. Market Analysis

The target market for Snow Cone Shack includes families, couples, students and anyone looking for a sweet snack in an inviting environment. We will be located in a busy downtown area surrounded by businesses and restaurants, making us easily accessible to those who want to enjoy our treats.

4 . Strategy & Implementation Summary

Our strategy is to provide customers with quality snow cones at an affordable price while creating a fun atmosphere that encourages repeat visits. Our implementation plan includes purchasing the necessary equipment and supplies, marketing our business through word-of-mouth and online outlets such as social media, setting up shop in the downtown area of Anytown, and providing excellent customer service.

5. Financial Plan

The start-up costs for Snow Cone Shack will be approximately $10,000 and will cover the necessary equipment and supplies and marketing materials. We anticipate making a profit within the first year of operations.

6. Conclusion

Snow Cone Shack is positioned to become an integral part of the local community by providing customers with delicious snow cone treats in a fun atmosphere. Our comprehensive business plan has been carefully crafted to ensure our success, and we look forward to serving the people of Anytown, USA!

Set Up A Website Or Social Media Page To Promote Your Business

Having an online presence is essential no matter what business you’re in. These days, customers are more likely to search for businesses online before they visit them in person.

To make your snow cone business profitable, you should set up a website or social media page as an essential point of your business plan. This will help you reach a larger audience and allow customers to find you easily.

You can post pictures of your snow cones, write descriptions of your flavors, and even offer coupon codes. You can also use your website or social media page to announce special events or promotions. For example, if you’re having a contest, you can post all the details on your page so that people can enter.

By setting up a website or social media page for your snow cone business, you’ll be able to reach more potential customers and let them know about all the great things you have to offer, which will ultimately increase snow cone sales.

Market Your Business In Your Local Community

Marketing your snow cone business in your local community is a great start. You can start by passing out flyers in local businesses and posting them in public places. You can also ask local organizations if you can set up a booth at their events.

Another great way to market your business is to partner with other companies in your community. For example, you could collaborate with a local ice cream shop and promote each other’s businesses. You could also offer discounts to customers who purchase products from both companies.

By partnering with other snow cone businesses, you can reach a wider audience and build brand recognition for your perfect snow cone business.

So, there you have it! Everything you need to start your very own snow cone business. It’s not a small undertaking, but with careful planning and execution, you can succeed. We wish you the best of luck and hope this guide provides all the information you need to start. 

What supplies do I need to start a snow cone business?

You’ll need to purchase syrups, cups, straws, napkins, a commercial ice shaver, and a cart or stand for your equipment.

How do I market my snow cone business?

Rack card distributions, social media marketing , local business collaborations, and promotional events are great ways to market your snow cone business. Create a website or social media page so customers can easily find you online. You should also partner with other local businesses to reach a wider audience.

What safety regulations do I need to follow?

Depending on the area where you operate your snow cone business, you may be required to obtain permits and licenses from local authorities. You must stay up-to-date on health and safety regulations to protect yourself and your customers. Make sure you adhere to any guidelines set by local governments before starting your business.

Do I need extra staff to help run my business?

It depends on the size and scope of your snow cone business. If you’re starting out, you may be able to manage the business by yourself. However, if it gets too overwhelming, consider hiring additional staff to help with operations.

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Finished Papers

Andersen, Jung & Co. is a San Francisco based, full-service real estate firm providing customized concierge-level services to its clients. We work to help our residential clients find their new home and our commercial clients to find and optimize each new investment property through our real estate and property management services.

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