Ice cream is one of the most popular snacks. There are many shops and suppliers serving ice cream, from plain ice cream and frozen yogurt to frozen custards and Italian gelato. This business is very interesting to try. If interested, you should check and weigh your options before finalizing your business plan. There is a lot to consider, including market research, law, equipment, suppliers, and finalizing a formal business plan.
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Part 1 of 3: Doing Business Research
Step 1. Determine if a small business is right for you
Indeed, running a small business seems very attractive. You can pour personal ideas into the products that are made. You also make decisions and work independently. Plus, you get the satisfaction of building something that lasts a very long time. However, not everyone can do it. In fact, starting your own business may add stress and overwhelm you. Think carefully before determining the right business model for you.
- For example, do you like challenges? Are you able to cope with difficult situations? Are you confident in making important decisions? If the answer is yes, a small business is for you.
- On the other hand, do you doubt your instincts? Do you avoid stress and important decisions? It's a good idea to rethink your plans because all of these (risk, stress, and decision making) are an important part of running a small business.
Step 2. Define your business model
The next step is to decide what kind of ice cream shop to open. You have several options. For example, do you want to buy or invest in a new ice cream shop, open your own shop, or buy a franchise? Consider carefully because each option has its own opportunities and risks.
- Check out the benefits of franchising your business. Working with a parent company like Cold Stone Creameries or Baskin Robbins will make it easier to get started. The parent company will guide you in decorating the store, determining the ingredients for making products, and training employees.
- However, the franchise fee is quite expensive. The average start-up cost of a Cold Stone Creamery franchise is between IDR 3, 3-5, 2 billion.
- Another option is to open your own shop. The cost may be lower, for example an existing or closed ice cream shop can be purchased for around IDR 650,000,000 or less. However, you don't get much support. Unlike the franchise, all activities will be carried out alone.
Step 3. Do more research
Get an overview of how your business looks and how it operates in as much detail as possible. To do this, learn about other ice cream, frozen yogurt, and gelato shops in your area. How is it sold? How do you market it? You should do some serious research into the ice cream industry.
- Do market research. Look up the demographics, competitors, and logistics of the ice cream shop's operations. Which customer groups are targeted? Is it children, teens, or young professionals?
- How big a business can be in your area? How is the selling price of ice cream determined? Sales and pricing may vary for a variety of reasons, including season, location, and the presence of competitors or suppliers.
- You also need to find a good supplier to meet the needs of the store. Funnels, napkins, sprinkles, and ice cream ingredients need to be purchased from suppliers or wholesalers.
- Try starting your research on the Central Bureau of Statistics website to find relevant data.
Part 2 of 3: Planning a Business
Step 1. Get all permissions and licenses
The legal requirements for opening a business may vary in your city. For example, you may be required to have a Company Registration Certificate (TDP), a Trading Business License (SIUP), a Taxpayer Identification Number (NPWP) and a Nuisance Permit.
- In starting a food business, it's also a good idea to contact your local health department, sales tax agency, and tax office to receive your employee tax ID number (if planning to hire employees).
- As you can see, there are many requirements for starting a small business. You may want to consult a lawyer who specializes in business law.
Step 2. Know the equipment and supplies needed and their costs
You must have all the equipment and materials for the grand opening. Depending on the location or type of store being opened, it will usually be necessary for the store to have one or two sinks, a small ice cream cabinet, dry food storage space for several soft serve machines and ice cream cabinets, computer and refrigeration systems, backup power generators, and dry windows. -thru.
Don't forget that in addition to equipment you will need to provide daily supplies such as ice cream, funnels, plastic spoons, bowls, and so on
Step 3. Determine the location of the business
Decide on a viable and strategic location for your business. You need a place near a source of prospecting, such as a mall, parking lot, downtown, or near another retail business. Accessibility and convenience are key. Consider car and foot traffic, and whether there are competitors in close proximity.
The size of your shop can be quite small or large, ranging from 122 to 1,219 meters. Don't forget, you need space for ice cream storage in addition to retail space
Step 4. Write a formal business plan
Use everything you learn in research and planning to put it on paper. A business plan will map the financial and practical success of your store. Business plans can also convince banks or investors to help with funding. Your plan should outline how many sales are targeted, projected sales less operating expenses, for a number of years (usually 3-5 years).
- Base your data on the market research conducted: the size of your local market, your competitors, your pricing, and marketing and operational planning, as well as overall industry trends. Include projected inventory costs, lease or lease agreements, salaries, business insurance, and more.
- Business plans usually follow a fixed format. The plan usually begins with a short summary (called an executive summary), followed by a business growth strategy and plan, marketing strategy, operational planning, workforce planning, financial projections, and analysis of strengths, weaknesses, opportunities, and potential threats (also known as a SWOT analysis).). You can check the format on sites like the Canadian Business Network here.
Part 3 of 3: Starting a Business
Step 1. Define your business structure
As part of opening a new business, you need to do something called structuring. That is, you will create a legal company. Structuring determines the form of the company that is built, and will have an impact on the amount of taxes or personal liabilities, the amount of paperwork that must be produced, and the way in which income is generated.
- A sole proprietorship is the most common business structure. The company is easy to set up and gives you full control as owner and manager. However, you are also fully liable for all business expenses. Guilds can be formed if you form a business with other people. Thus, costs and profits are also shared.
- Some businesses use the corporate form. Unlike the previous two structures, the corporation is a separate legal entity from the founders. The taxation is separate and can be legally responsible in court, just like an individual. The biggest advantage of a corporation is that you avoid legal liability if something bad happens. The biggest disadvantage is that this structure is quite expensive to set up and requires a lot of bookkeeping.
Step 2. Buy or rent a good location
Look for a real estate broker who specializes in commercial sales to help you find strategic new business locations. Assisted by the results of initial research, you should already know the desired location. Now is the time to do some more research. Try to be objective, even if you have compiled ideas.
- Visit the local KADIN office with the broker to see future development plans. You can discover parts of the city with new projects that you didn't know about. Also check the traffic flow.
- Contact other business owners. Ask what factors are important in the location. Is it close to a public area, such as a school or park? Don't forget about accessibility, including access to parking lots and public transportation.
Step 3. Set up your shop and buy supplies
If you own a shop, opening your business is one step closer. Now you need all the necessary supplies. Meet with equipment suppliers and contractors in your area and ask for referrals for items such as ice cream cabinets, freezers, and other items you may need. Ask for stylist referrals from other business owners to find your store decorator, or visit other stores and take notes. Write down the designs you like and use them for shop plans.
Get supplies of ice cream. Shop around for the best prices. Compare prices and provide various flavors to meet customers' tastes. It's also a good idea to prepare sprinkles, sundae bowls, soda glasses, and other items. Find a suitable supplier for these items
Step 4. Hire employees
If you don't want to run a store operation alone, it's a good idea to hire staff. You can try several things to find good employees. Please try a recruitment service, which will rate the candidates in their network for you and free of charge. You can also advertise on the internet, job vacancies, campus/job fairs, or create your own ads.
- Recruitment is not just about finding the right person. Keep in mind that you must pay their salaries and record all of their income for tax purposes, as well as report the figures annually.
- Perhaps you have other legal obligations to employees in your area such as labor standards, health insurance, and taxation. Make sure you fully comply with the law to prevent trouble. We recommend that you consult with a business attorney to find out your rights and obligations.
Step 5. Consider joining a trade association
In the US, there is at least one national trade association for the ice cream industry called NICRA. Signing up for these organizations can be lucrative as a small business owner. For one thing, you can have access to ice cream retail chains as well as suppliers of funnels, sprinkles, nuts, flavorings and utensils. Trade associations are usually involved in lobbying activities.
