ice cream cone business plan

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.

Chris Ventura

This millennial transformed one rental property into a multi-million dollar empire, the federal tax advantages of having an llc.

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

Related Posts:

• Shaved Ice Business Plan [Sample Template]
• Pizza Shop With Delivery Business Plan [Sample Template]
• Food and Beverage Distribution Business Plan [Sample Template]
• How to Start a Shaved Ice Business
• Fruit Juice Shop Business Plan [Sample Template]

We earn commissions if you shop through the links below.  Read more

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 June 5, 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 menu offerings

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

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”
• A location-based name can help establish a strong connection with your local community and help with the SEO but might hinder future expansion

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

Powered by GoDaddy.com

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

Here are the key components of a business plan:

• 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

We recommend ZenBusiness as the Best LLC Service for 2024

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. 

Here are some powerful marketing strategies for your future business:

• 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

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.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Save my name, email, and website in this browser for the next time I comment.

• 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!

Subscribe to Our Newsletter

Featured resources.

16 Street Food Business Ideas

Carolyn Young

Published on July 28, 2022

Hot dogs, pizza, snow cones and bubble tea are among Americans’ favorite street foods, which are quicker and more affordable than restaurantfo ...

46 Food Business Ideas

Natalie Fell

Published on June 30, 2022

People are always eating and drinking, so starting a food business is always a potentially wise career choice. But to succeed you’ll need astr ...

16 Food Truck Business Ideas

Published on June 8, 2022

Food trucks have exploded in popularity in recent years and offer a unique, potentially lucrative alternative to brick-and-mortar restaurants. Foodt ...

No thanks, I don't want to stay up to date on industry trends and news.