How To Start An Ice Cream Truck business | Ice Cream Truck Business Plan: Having an ice cream truck business can be a great way to create your own income and to connect with customers in the neighborhood A successful ice cream truck business can allow you to earn a decent income and teach you how to be a good small business owner. Start by creating a business plan outlining your costs and capital. You can then set up the truck and establish the ice cream truck business so it thrives and does well.
Learn how to start your own Ice Cream Truck Business and whether it is the right fit for you.
How To Start an ice cream truck business by following these 10 steps:
You have found the perfect business idea, and now you are ready to take the next step. There is more to starting a business than just registering it with the state. We have put together this simple guide to starting your ice cream truck business. These steps will ensure that your new business is well planned out, registered properly and legally compliant.
1. Creating a Business Plan
Business planning is a broad term that encompasses many aspects of launching a startup. You may end up with a formal, written business plan that you’ll present to investors and banks. At minimum, the process of mapping how to start an ice cream shop should include factors such as:
- What kind of ice cream you plan on selling e.g., artisanal versus soft-serve versus vegan
- How much demand there is for your offerings. For brick-and-mortar shops, foot traffic is key. With ice cream trucks, having the right route or parking location matters.
- How much you expect to spend and earn – including careful thought about the impact seasonality might have on profits.
Read also: Step By Step Guide TO UK VAT Registration Process 2022 | How to apply for VAT registration in UK
2. Cost to Open an Ice Cream Truck Business
Your biggest expense will be the ice cream truck itself. This typically has a minimum cost of $10,000, but fancier models can run to twice that cost. The truck must be insured, which can cost between $800 to $1500 every year. One of the attractive things about the business is that you can acquire your starting stock of ice cream for as little as $500 and simply order more as needed.
3. Name the Business
Finding the perfect name for a business can be challenging. Not only does the name have to resonate with your customers, but it also has to be available to use.
4. Determine the cost of insurance and permits
The exact cost for insurance will depend on where you live, what vehicle you are using for the business, and your personal driving history. It may cost anywhere from $500-$1000. [2]
- You will also need a “special vendors permit” for the ice cream truck. This will depend on where you live. Usually, a vendor permit in a smaller city will be around $50-$200. In larger cities, permits may be more expensive.
- Look at local government websites for small business owners to find out the costs for insurance and permits in your area.
Read also: Asia stock markets | Oil prices struggle as Omicron worries weigh
5. How Much Do Ice Cream Truck Owners Make A Year?
When kids are out of school and the weather is warmer, ice cream trucks make the most of their business. Vendors who only operate this as a seasonal business typically generate between $15,000 and $30,000 in gross revenue each year.
6. Documents required to operate an ice cream truck
You will need a valid driver’s license if you are driving an ice cream truck. A health permit is also required if you are operating an ice cream truck. You will need a commercial driver’s license if your ice cream truck is as big as a bus.
7. Find a location
If you will be running a brick-and-mortar ice cream shop, you’ll need to find a physical space to buy or lease. If you will be opening an ice cream truck, you’ll have the flexibility to change locations easily, as you park along any number of approved routes. In both cases, however, the goal is to find options that receive plenty of foot traffic during the busiest times of the ice cream season.
8. Find Financing
Start-up costs for an ice cream truck business can be high, so finding financing will be an important task in getting your business up and running. To get a business loan, a borrower will need to have good credit and personally invest their own money toward 15-25% of the start-up costs. A strong, detailed business plan can also help when securing financing.
9. Target Market
Starting an ice cream truck business and deciding its dynamics hugely depends on the target market. Depending on your target market, you’ll have to decide on ice cream flavors, planning your routes, picking a franchise or going independent, adopting a specialty, and everything in between.
For instance, if you are bounding your ice cream truck business to a beach or a popular place, you won’t have to set out an ice cream truck route. Similarly, if you are targeting a specific location, you’ll have to set the ice cream options, other addons, prices, and more according to the location.
Read also: Top 20 Successful Business Ideas in Dubai 2022 | Best Business To Start In Dubai
10. Hire Employees
It may be possible to run a smaller ice cream truck business without hiring staff, but operational hours will be limited. As the business grows, hiring employees can help with that expansion. According to zip requiter, ice cream truck drivers earn an average of $34,579 per year, though salaries can range from $16,000 to $65,500.
