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Snow Cone Stand Business Plan Example

Jun.22, 2018

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Snow Cone Stand Business Plan Example

Table of Content

Snow cone business plan for your own stand

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

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

Executive Summary

2.1 the snow cone business.

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

2.2 Management of Snow Cone Shop

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

2.3 Customers of Snow Cone Stand

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

2.4 Target of the Snow Cone Shop

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

Company Summary

3.1 company owner.

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

3.2 Why the Snow Cone Business is being started

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

3.3 How the Snow Cone Business will be started

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

The detailed startup information is as follows:

Services for customers

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

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

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

Marketing Analysis of Snow Cone Business

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

5.1 Market Trends

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

5.2 Marketing Segmentation

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

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

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

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

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

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

5.3 Business Target

Our business targets are as follows:

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

5.4 Product Pricing

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

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

Strategy of Snow Cone Business

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

6.1 Competitive Analysis

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

6.2 Sales Strategy

We will target our customers by following three ways:

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

6.3 Sales Monthly

Our monthly sales have been forecasted as follows:

6.4 Sales Yearly

Our yearly sales have been forecasted as follows:

6.5 Sales Forecast

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

Our detailed sales forecast is given in the following table:

Personnel plan

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

7.1 Snow Cone Stand Staff

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

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

7.2 Average Salary of Employees

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

Financial Plan

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

8.1 Important Assumptions

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

8.2 Brake-even Analysis

8.3 projected profit and loss, 8.3.1 profit monthly, 8.3.2 profit yearly, 8.3.3 gross margin monthly, 8.3.4 gross margin yearly, 8.4 projected cash flow.

The following column diagram shows the projected cash flow:

The following table shows the projected cash flow:

8.5 Projected Balance Sheet

The following table shows the projected balance sheet:

8.6 Business Ratios

The following table shows data about business ratios:

Download Snow Cone Business Plan Sample in pdf

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

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

snow cone stand business plan

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What’s the Annual Profitability and Costs of a Shaved Ice or Snow Cone Stand?

shaved ice

A variety of snow cone flavors.

Do those little snow cone shacks, push carts, or trucks make any real money? It’s a legitimate question and can be easy to dismiss the revenue potential of a shaved ice if you’ve seen a little push cart at a fair or farmer’s market. But if you take a deeper look, you’ll discover that shaved ice is actually a profitable little niche market. In this post, we will break out some different scenarios and factors that go into determining the annual profits of a shaved ice business. We will also outline some of the variable expenses of operating different models of this business.

Note: For the purposes of this article we are using the word shaved ice or snow cone interchangibly. There are some small differences between the two depending on where you live, but to the layman these are usually interchangable.

Profit Potential Case Studies

First, let’s look at some examples of shaved ice businesses that have reported gross revenue numbers publically to get a sense of the overall potential of operating a shaved ice business.

bahama bucks

Bahama Bucks Photo Credit: Yelp.com

Bahama Buck’s refer to themselves as the Original Shaved Ice Company .  They are a franchise opportunity with locations in many parts of the United States including California, Nevada, Texas, and many others .  While this franchise diversifies their product offerings to include coffee and smoothies, the core product offering is shaved ice.

According to the franchise disclosure document for Bahama Buck’s, a document required and reviewed by the Federal Trade Commission, average gross sales was $463,387 annually in 2015 . The top 25% of franchisee’s generated reported over $650,000 in top line revenue. That’s a lot of shaved ice!

Another shaved ice business franchise is Kona Ice. In 2015, there were 594 Kona Ice franchises in America and the number has continued to grow since then. On average, Kona Ice units will generate an average of $94,868 per unit in 2015 . Of course with Kona Ice, it is not uncommon for frachisee’s to own multiple vehicles, which increases the average annual income. Also, unlike stationary restaurant locations, most Kona Ice trucks do not operate as frequently and some are only open part of the year so this is not exactly an apples to apples comparision.

Of course there are success stories from other shaved ice business owners as well that are not part of a franchise. Check out this podcast interview with Snowy Joey based out of Australia. This business was started by a high schooler and has since gone on to generate over one million dollars in revenue. Not bad for a business that started out being operate on weekends only with a used shave ice machine.

As you can see from the examples above the sky really is the limit in terms of revenue potential in this industry. It all depends on how much you want to work, how hard you work, and how well you execute. The model is already proven and you can build a large and profitable business serving this product. You just need to have the execution and marketing down!

The Low End

Of course many shaved ice businesses don’t generate anywhere near 6 figures in top line revenue annually. And that’s okay! Many people start selling shaved ice as a way to make a little extra money on weekend or during the warmer summer months. In these situations, a business may only generate between $500 – $1,000 total. The nice aspect of this, however, is that you can still pay off the cost of buying shaved ice equipment, syrups, and other supplies within just a few months of operating a business at this level.

The other thing to keep in mind is that even if you start out by having a part-time shaved ice business that only operates on weekends or holidays, it doesn’t mean you need to operate as a small business forever. As mentioned in this interview, Snowy Joey operated for years as a small business before getting serious about their business and expanding into multiple shaved ice units. To date, they own a business in full that has generated over one million dollars in sales.

Different Types of Shaved Ice Businesses with Revenue + Expenses

One handy dandy tool available for free is the potential earnings calculator from Snowie.com. This tool lets you make estimates about how profitably your snow cone business might be. Another nice element of this tool is that it estimates your expenses for operating the business as well, including things like syrups, spoons, ice, cups, insurance and rental space that you will need to cover.

Stationary Location –  A stationary or brick-and-mortor location will require the most overhead of any business model for selling snow cones. There’s monthly rent, electricity, labor and other costs associated with running a storefront. With that being said this model usually offers the best opportunity to generate the most top line revenue as well since you’re always in a fixed location and are open a consistent number of hours each month.

Shaved Ice Business Monthly Costs – Ballpark Costs

Annual revenue expectations:.

Annual Revenue @ 67 sales per day: $72,360

Annual Revenue @ 100 sales per day: $108,000

Annual Revenue @ 150 sales per day: $162,000

Annual Revenue @ 200 sales per day: $216,000

*All revenue numbers assume $3.00 average per sale. 

Shaved Ice Truck, Trailer or Step-Van 

If you plan to operate a mobile unit to sell your shaved ice, the costs are much the same with the exception of monthly rent. This is an expense that can be largely removed from the expense column unless you plan to pay to vending fees at certain special events in your area.

One additional one-time expense that you will need to include into your business plan figures is the cost of acquiring a shaved ice trailer, truck, or step van. The cost of these can range anywhere from about $15,000 – $100,000 in price depending on whether you want a truck versus trailer, used or new vehicle, and what type of fancy customizations you would like on the vehicle. The other added expense you’ll need to take into account here is gasoline and regular maintenance of a vehicle. This is a mobile unit and will require some tender loving care if you want it to operate and generate revenue for your business long term.

Mobile Unit Specific Costs

Push cart, pop-up stand or kiosk – .

Buying a little push-cart or having a pop-up stand is the lowest cost way to start a shaved ice business. You can literally get everything you need from equipment, to supplies, or permits for under $5,000 in initial investment, which is incredible. Since the cost to entry is so low it also enables you to recoup the investment quickly, often times within just a few months of operating the business part time. From there you can either expand the business, by purchasing more shaved ice machines and equipment or simply keep the additional cash to create a better life for yourself.

Best all, by starting out with a simple pop-up stand you can vend at many of the same places that food trucks are invited like festivals, special events, farmer’s markets, and more. This is also a great way to “test out” if you like running this type of business without any big financial risk.

Push Cart or Pop-up Stand Specific Costs

Shaved ice is a high margin product offering.

As you can see from the examples above the low-cost of the shaved ice product makes it very appealing as a product owner. The ice, syrups, and cups are an extremely small portion of the overall costs and will typically be under 10% cost of the final sales price to customers. Using the figures above it will cost you roughly 20 cents to provide a cup of shaved ice to your customer. At an average cost per cup of $3.00 you’ll be pocketing $2.80 per sale, which is an incredibly healthy margin that other food vendors will be envious of. Most traditional restaurants are happy to generate 33% profit of margin from each sale while you’re operating at over 90% profit per sale!

Rent & Labor Expenses

Although the margins on a snow cone are exceptional there are two variable costs that can prevent you from realizes your businesses profit potential. The first is rent. If you have the overhead of an expensive space, you’ll need to sell a lot more product on a consistent basis to break even. If you have a higher rent with a high volume of traffic the monthly payments can be 100% worth the investment so make sure to do you due diligence before signing papers on a 12-month rental agreement.

The second big cost that can get out of control is labor. If you are planning to run the business initially you can completely wipe this expense off of your books and it will make running a profitable stand a no brainer. If you decide to go out and operate the business, you will make money and be profitable.

There are a couple variables that will determine your labor expenses. First, is where you plan operate the business geographically. If you operate the shaved ice stand in some parts of California you may need to pay $12.00 an hour for a trustworthy employee. If you live in rural Tennessee, you may only need to pay $8.00 an hour. You can also help employees supplement their hourly wage by putting out a tip jar. At the end of the day, monitoring labor expenses is going to be one of the critical parts of operating this business if you want to grow and make real money from this venture.

We hope you enjoyed this post! Stay tuned as we will be publishing more content to help you start your own shaved ice business very soon!

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Shaved Ice Business

Back to All Business Ideas

How to Start a Shaved Ice Business

Written by: Carolyn Young

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

Edited by: David Lepeska

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

Published on August 9, 2021 Updated on May 8, 2024

How to Start a Shaved Ice Business

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.

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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

shaved ice 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

shaved ice industry 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?

shaved ice business earnings forecast

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

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Step 2: hone your idea.

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

Why? Identify an opportunity

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

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

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

What? Determine your products or services

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

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

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

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

How much should you charge for shaved ice?

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

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

Who? Identify your target market

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

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

Where? Choose your business premises

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

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

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

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

shaved ice business idea rating

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. 

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

Step 4: Create a Shaved Ice Business Plan

Here are the key components of a business plan:

what to include in 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:

types of business structures

  • 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

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We recommend ZenBusiness as the Best LLC Service for 2024

snow cone stand business plan

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.

snow cone stand business plan

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:

types of business financing

  • 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:

types of business insurance

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

Step 11: Prepare to Launch

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

Essential software and tools

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

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

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

Develop your website

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

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

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

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

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

Focus on USPs

unique selling proposition

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

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

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

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

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

Step 12: Build your team

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

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

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

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

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

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

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

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

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

  • Shaved Ice Business FAQs

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

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

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

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

To achieve fluffy shaved ice, consider the following factors:

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

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

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

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6 Steps To Creating the Best Snow Cone & Shave Ice Business

6 steps to creating the best snow cone & shave ice business.

Kudos to you. While everyone else is getting ready to soak up the summer sun and lay out by the pool, you’re thinking about how that same sun can heat up your financial future. Well, you’ve come to the right place. We’ve been in the shaved ice business since 1984 and we’re here to share our recipe for starting a successful shave ice business.

1. Determine Interest Levels

Are people interested in shave ice? Would people want and patronize a snow cone stand here? Why should people buy from me? These along with many other questions have to be answered before you can turn that sign from “Closed” to “Open” with some confidence. While some of these questions are between you and your friends and family, we can help with answer that first question. Yes, people are interested in shave ice and snow cones, particularly when it’s hot out.

start a shaved ice business

Google Trends clocks people’s interest in “Shaved Ice” over 75 during the close of May, June, July and the beginning of August (2016). Not to mention, this trend line has also seen little variance since 2010.

Now where exactly is all this interest coming from? To give you some idea, we thought we’d share the top 30 states where Tropical Sno gets searched for and visited from the most in the US.

1. Texas 2. Illinois 3. Utah 4. Missouri 5. California 6. Arkansas 7. Iowa 8. Georgia 9. Nebraska 10. Arizona

11. Florida 12. Kansas 13. North Carolina 14. Alabama 15. Indiana 16. Tennessee 17. Ohio 18. Washington 19. New York 20. Idaho

21. New Jersey 22. Virginia 23. Kentucky 24. South Carolina 25. Nevada 26. Oklahoma 27. Colorado 28. New Mexico 29. Oregon 30. Mississippi

start a shaved ice business

2. Understand the Numbers

If you’re like most people. You’re probably not going to perform a cost benefit analysis before opening a shave ice stand. However, you most likely would like to have some idea how your finances might look at the end of the summer. For that reason, we’d like to tell you about Katie (Full disclosure, Katie is a hypothetical construct).

**Note: Numbers below are estimates and are not guaranteed for every market.**

Like you, Katie is about to take the plunge into selling shaved ice. Let’s say Katie opens up shop on April 1st.

Since April still has its chilly days, Katie’s shave ice shack didn’t see the best numbers, but she’s doing all right ! Here’s what Katie’s April looked like:

Lucky for Katie, things have started to heat up. Though there were a couple days of rain in May, Katie still feels pretty good about how her month went.

Summer has started and school is out but unfortunately for Katie, a lot of her regular customers are on vacation for the month. Regardless, Katie has still had a pretty great month !

Summer is in full-swing and temperatures are reaching an all-time high. Katie had her best month ever !  

Though Katie didn’t see quite the customer volume she did in July, things still went really well in August.

The days have gotten a lot cooler where Katie lives, but she is still excited about her summer success. Instead of closing shop Katie fights through the nippy days in September. Katie scrolls through Instagram and sees everyone drinking pumpkin lattes ! Oh no ! Needless to say, it was not Katie’s best month.

Year in Review

It looks like Katie had a very successful six months. Katie personally profited $121,439.

While Katie might be a fictional character, her story is true for hundreds of snow cone stand owners across America. With a little hard work and strategic planning you’ll be telling a story much like Katie’s.

start a shaved ice business

3. Pick a Strategic Location

Perhaps you’ve heard the old proverb, “Location, location, location ! ” While this feels more like a lecture than business advice, the obvious emphasis is truly necessary. Few things play a more important role in the success of your shave ice shop than your location. Here are some things to consider when deciding where to set up shop.

  • Find Location Piggybacking Opportunities A large part of your audience will discover you mostly because they simply saw your physical location. Landing a location near a community center, a college or a park is a great way to piggyback on a location.
  • Research Potential Competition Keep in mind, as a new minnow there may be sharks around. Before setting your heart on a location, do a Google search for surrounding shaved ice shops as well as other dessert vendors (your competition may not necessarily just be other shaved ice shops).
  • Proximity to Surrounding Businesses Like piggybacking, your shaved ice shop can benefit from surrounding businesses like a movie theater or a shopping mall. It may also have the reverse effect if you set up shop near an adult store or a bar. Be conscious of all businesses within a quarter-mile radius.
  • City Ordinance Laws Talk to a local official to see if there are ordinances or zoning restrictions around your desired location. You can also find out if any city construction, projects or events might interfere with the success of your business.
  • Parking and Accessibility It’s likely people are going to have to park on the street or in another business’s parking lot in order to patronize your shave ice stand. This could potentially cause friction with surrounding business owners. Keep this in mind as you decide upon your location.                        

start a shaved ice business

4.Take Care of Legalities Early

It’s no secret that shaved ice moves quicker when it’s warmer outside. However, if you’re a first-timer you’re going to want to get the legalities taken care of before the temperature rises. We recommend you start chomping at the red tape as early as January or February. Because your opening day hinges on permits from local government and inspectors, it’s best to give yourself some time to take care of your checklist.

Here’s what that checklist looks like:

  • Obtain a Business License and a Sellers Permit
  • Obtain a Federal EIN (Employer Identification Number)
  • Obtain a DBA (Doing Business As) if you’re not a franchisee
  • Pass health and safety inspections

start a shaved ice business

5. Get Familiar With Shave Ice Business Start-Up Costs

You’re probably getting into the shaved ice business because you’d like to make money, not spend it. So let’s talk about getting into the snow business at a minimal cost. What does that look like? While there are going to be a lot of variables associated with your start-up costs, Here’s a list of expenses associated with hypothetical shaved ice start-up.

Some Things To Keep In Mind

  • These costs did not include labor wages, and costs of goods sold. While we included some overhead items, you may discover more initial costs associated with overhead.  
  • These costs did not include lighting. If you planning on being open after the sun goes down, make sure to budget for some internal and external lighting. We recommend budgeting at least $200-$600 for internal and external lights.
  • If you want to take your stand on the road, a tent may not be the best option. A vending trailer with wheels is something you’re going to want to budget $3,000- $10,000 for.
  • These costs did not include signage or any branding materials. Making your stand unique is integral to its success. We recommend budgeting at least $500-$2000 for marketing and branding materials.  

start a shaved ice business

6.Consider Your Start-Up Options

Good ol’ fashion diy.

What To Expect : DIY is rewarding. You will be building everything from your stand to your brand. This is a great route for the shaved ice lover who craves control over every detail of her business. The DIY route will be a large financial and even larger time investment. Not to mention this route will take a considerable amount of skill. Because your stand/ shack, equipment and product will all have to pass inspection, DIY may not always be the most practical option. While DIY is doable, keep in mind it is not for the faint of heart.    

What To Expect: Becoming a Franchisee has some very obvious advantages over DIY. As a franchisee, you’ve purchased permission to use a company’s brand name, equipment, stand and supplies. All the legwork is done for you ! However, franchise agreements often dictate how you operate the business allowing you very limited room for creativity and autonomy. In most cases, franchising means paying royalty fees and signing time-bound contracts. Here’s a list of shave ice companies with franchise opportunities:

Ululani’s Tikiz Snowie The Frigid Frog Sno Shack Tikiz Hokulia Kona ice

BUYING A BUSINESS

What To Expect: Buying a business is a nice middle ground between DIY and franchising. You get all the benefits of being the owner without any of the hassle of setting up your own stand.

At Tropical Sno, we know no one likes paying royalties or being roped into long contracts. So we got rid of them. Simple as that. This is why we sell business ownership opportunities and not franchises. Tropical Sno business opportunities allow you to wear what you want, work when you want and run your business your way. We’re your source for flavor, ice shaving machines, marketing materials, cups, printed apparel and just about everything else you need to keep your business running smoothly.  Here’s a look into how to start your shaved ice business today .

How to use fotor

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  • Optional: You can “resize” if you would like to use most of the existing picture, but be sure to check the “lock” icon to make height and width adjustments proportional.
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  • When finished editing, hit the “save” icon (it looks like a floppy disk), rename the image if you want and then “Save to my computer” to save the image. If it’s 520px x 370px, you can now upload it here!

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Snow Cone Business Plan

Hire professionals who can help write a business plan..

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

Executive Summary

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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Business Ideas

How To Start A Snow Cone Business

Photo of author

By miriammetz

July 15, 2022

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

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

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

SWOT Analysis of a Snow Cone Business

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

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

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

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

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

Learning How To Make Snow Cones

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

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

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

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

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

Choose Snow Cone Concept

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

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

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

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

Shaved Ice vs. Snow Cone

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

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

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

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

how to start a snow cone business

Choose A Name For Your Snow Cone Business

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

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

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

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

20 Creative Names for a Snow Cones Business

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

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

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

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

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

6. Fluffy Flavors : A fun and lighthearted choice that will put a smile on your customers’ faces.

7. Snowy Sensations : An ideal name for those who want to emphasize the smooth texture of their snow cones.

8. Frosty Frolics : Perfect for creating an atmosphere of fun and frivolity in their shop or cart.

9. Sweet Shavings : An ideal choice for highlighting the delicate texture of shaved ice treats.

10. Icicle Islands : Give your customers a little hint of paradise with this tropical-inspired title!

11. Cool Cravings : Let your customers know there’s no better way to satisfy their cravings than with a refreshing snow cone.

12. Snowy Splendor : Conjure up images of glittering ice crystals and sweet flavors with this enchanting name.

13. Icy Indulgence : Let your customers know they can indulge their taste buds with a frosty treat any time they want!

14. Snow Dreams : A whimsical choice for those who want to offer their customers an escape into a winter wonderland every time they visit.

15. Slush Sensations : An exciting option for those looking to emphasize the icy texture of their treats.

16. Fluffy Frostbite : For those who are all about fun flavors and bold combinations, this is a perfect choice!

17. Snowy Refreshers : An ideal name for creating a refreshing customer experience.

18. Icey Imaginations : Perfect for those who like to experiment with new recipes and offer their customers unique flavor combinations.

19. Frosty Fantasies : Give your customers a little taste of fantasy with this creative title!

20. Chilled Creations : Let your customers know they can expect something special every time they visit with this catchy choice!

Decide On A Logo And Branding

A well-designed logo and branding can help your snow cone business stand out. When choosing a logo, remember that it should be simple and easy to remember.

You’ll also want to choose colors that reflect the personality of your business. For example, if you’re targeting families with young children, you might want to use bright, cheerful colors.

Muted tones may be more appropriate if you’re aiming for a more upscale market. Once you’ve decided on a logo and color scheme, you’ll need to incorporate these elements into your marketing materials. This includes everything from your website and business cards to signage and packaging.

Creating a cohesive and visually appealing brand will make it easy for customers to remember your business and return for more snow cones!

Equipment Needed For A Snow Cone Business

To run a successful snow cone business, you’ll need the following equipment:

  • Snow Cone Machine : A snow cone machine is essential for converting ice into fluffy snow. It should have adjustable blades to achieve the perfect texture for your customers.
  • Serving Containers : You’ll also need disposable containers to serve your product. Paper cones and plastic cups are both popular options.
  • Ice Scoop : An ice scoop will help you portion out just the right amount of ice into each container.
  • Small Refrigerator Or Freezer: You’ll need somewhere to store all that ice! A small refrigerator or freezer will do the trick. Make sure it’s big enough to hold all the ice you’ll need throughout the day.
  • Flavors and Syrups : Finally, you’ll need a selection of flavors and syrups to give your customers plenty of options.

These supplies are all relatively inexpensive and easy to come by, so rest assured that setting up your business won’t break the bank!

how to start a snow cone business

Creating Your Snow Cone Business Plan

Now that you know what equipment you’ll need for your snow cone business, it’s time to create a comprehensive business plan. A good business plan should include information about:

  • Your proposed products and services
  • The target market for those products and services
  • An outline of how you plan to reach that target market
  • The costs associated with launching and running the business, such as equipment and supplies
  • A timeline for achieving your goals
  • By planning out these details in advance, you’ll have a better idea of what resources you need to get started.

snow cone stand business plan

Business Plan for a Snow Cone Business

Snow cone shack business plan.

1. Executive Summary

Snow Cone Shack is a new business venture located in the downtown area of Anytown, USA. We will provide customers with delicious and affordable snow cone treats made to order with unique flavors and combinations. Our goal is to become an integral part of the local community by providing a fun, family-friendly atmosphere where customers can come and enjoy themselves while enjoying our tasty treats.

2. Products & Services

At Snow Cone Shack, we offer a variety of flavor combinations for our snow cones and traditional flavors like cherry, blue raspberry, and grape. Additionally, we allow customers to create custom concoctions so everyone can have the perfect treat.

3. Market Analysis

The target market for Snow Cone Shack includes families, couples, students and anyone looking for a sweet snack in an inviting environment. We will be located in a busy downtown area surrounded by businesses and restaurants, making us easily accessible to those who want to enjoy our treats.

4 . Strategy & Implementation Summary

Our strategy is to provide customers with quality snow cones at an affordable price while creating a fun atmosphere that encourages repeat visits. Our implementation plan includes purchasing the necessary equipment and supplies, marketing our business through word-of-mouth and online outlets such as social media, setting up shop in the downtown area of Anytown, and providing excellent customer service.

5. Financial Plan

The start-up costs for Snow Cone Shack will be approximately $10,000 and will cover the necessary equipment and supplies and marketing materials. We anticipate making a profit within the first year of operations.

6. Conclusion

Snow Cone Shack is positioned to become an integral part of the local community by providing customers with delicious snow cone treats in a fun atmosphere. Our comprehensive business plan has been carefully crafted to ensure our success, and we look forward to serving the people of Anytown, USA!

Set Up A Website Or Social Media Page To Promote Your Business

Having an online presence is essential no matter what business you’re in. These days, customers are more likely to search for businesses online before they visit them in person.

To make your snow cone business profitable, you should set up a website or social media page as an essential point of your business plan. This will help you reach a larger audience and allow customers to find you easily.

You can post pictures of your snow cones, write descriptions of your flavors, and even offer coupon codes. You can also use your website or social media page to announce special events or promotions. For example, if you’re having a contest, you can post all the details on your page so that people can enter.

By setting up a website or social media page for your snow cone business, you’ll be able to reach more potential customers and let them know about all the great things you have to offer, which will ultimately increase snow cone sales.

Market Your Business In Your Local Community

Marketing your snow cone business in your local community is a great start. You can start by passing out flyers in local businesses and posting them in public places. You can also ask local organizations if you can set up a booth at their events.

Another great way to market your business is to partner with other companies in your community. For example, you could collaborate with a local ice cream shop and promote each other’s businesses. You could also offer discounts to customers who purchase products from both companies.

By partnering with other snow cone businesses, you can reach a wider audience and build brand recognition for your perfect snow cone business.

how to start a snow cone business

So, there you have it! Everything you need to start your very own snow cone business. It’s not a small undertaking, but with careful planning and execution, you can succeed. We wish you the best of luck and hope this guide provides all the information you need to start. 

What supplies do I need to start a snow cone business?

You’ll need to purchase syrups, cups, straws, napkins, a commercial ice shaver, and a cart or stand for your equipment.

How do I market my snow cone business?

Rack card distributions, social media marketing , local business collaborations, and promotional events are great ways to market your snow cone business. Create a website or social media page so customers can easily find you online. You should also partner with other local businesses to reach a wider audience.

What safety regulations do I need to follow?

Depending on the area where you operate your snow cone business, you may be required to obtain permits and licenses from local authorities. You must stay up-to-date on health and safety regulations to protect yourself and your customers. Make sure you adhere to any guidelines set by local governments before starting your business.

Do I need extra staff to help run my business?

It depends on the size and scope of your snow cone business. If you’re starting out, you may be able to manage the business by yourself. However, if it gets too overwhelming, consider hiring additional staff to help with operations.

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Home » Food

How to Start a Snow Cone Business [Business Plan]

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

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

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

Steps on How to Start a Snow Cone Business

Conduct market research.

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

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

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

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

b. Is Snow Cone a Profitable Business?

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

c. Are There Existing Niches in the Industry?

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

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

d. Who are the Major Competitors?

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

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

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

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

f. Is There a Franchise for Snow Cone Business?

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

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

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

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

Memorable Snow Cone Business Names

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

Register Your Business

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

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

b. Steps to Form an LLC

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

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

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

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

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

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

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

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

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

Cost Analysis and Budgeting

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

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

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

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

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

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

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

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

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

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

f. What is the Average Salary of your Staff?

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

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

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

Write a Business Plan

A. executive summary.

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

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

b. Products and Service

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

c. Mission Statement

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

Vision Statement

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

d. Goals and Objectives

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

e. Organizational Structure

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

Marketing Plan

A. swot analysis.

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

Opportunities:

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

b. How Do Snow Cone Shops Make Money?

Snow cones make money by selling the following products;

c. Payment Options

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

d. Sales & Advertising Strategies

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

Financial Projection

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

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

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

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

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

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

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

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

e. What is the Sales Forecast?

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

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

Set Up your Shop 

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

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

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

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

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

  • Snowcone countertop machine
  • Ice blender

Hire Employees

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

Launch the Business Proper

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

a. What Makes a Snow Cone Business Successful?

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

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

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

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

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

More on Food

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How To Start A Snow Cone Business

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

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snow cone stand business plan

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

Business Overview

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

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

Industry Summary

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

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

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

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

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Checklist To Start A Snow Cone Business

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

Step 1:  Research the market

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

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

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

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

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

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

Step 2:  Create a business plan

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

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

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

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

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

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

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

Related: How to write a business plan

Step 3:  Source financing

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

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

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

Related: How to get the funding to start a business

Step 4:  Secure a location

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

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

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

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

Step 5:  Apply for Business Licenses and Permits

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

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

Related: Comparison of business structures

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

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

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

Related: State guides for general business licensing

Step 6:  Purchase equipment and supplies

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

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

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

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

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

Step 7: Get your marketing plan in place

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

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

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

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

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

Related:  Low-cost ideas to market a new business

Step 8: Prepare to launch

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

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

Related:  Common types of insurance a business may need

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

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

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

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

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

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

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

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

This material is property of StartingYourBusiness.com

Greg's Business Tip

Common Questions When Starting A Snow Cone Business

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

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

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

Here is a breakdown of the potential costs:

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

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

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

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

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

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

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

How much can a snow cone business owner make?

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

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

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

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

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

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

What skills are needed to run a snow cone business?

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

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

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

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

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

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

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

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

What is the NAICS code for a snow cone business?

The NAICS code for a snow cone business is 311811.

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

Related: What is a NAICS code?

Resources: National Food Truck Association

Greg Bouhl

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

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6 Ways To Market Your Snow Cone Business

Marketing is essential for building and growing your snow cone business. Since you will most likely be competing against other treat options at fairs, festivals, and events, you need to find ways to stick out from the competition.

Of course, all good marketing starts with a good product, so we will assume you can throw together a decent snow cone, and that you have the basics figured out.

This article will be focused on marketing once you are ready to start selling!

As discussed in the guide, you can give your marketing a nice head start by choosing a great name for your business. We recommend something that explains what you’re selling but is not too generic or bland. Snow cones are fun and colorful, so make sure your name reflects the mood of the product.

It’s more than likely you will be selling snow cones from a cart, truck, or stand, not a traditional brick and mortar setup. Since you won’t have a permanent location, marketing is crucial. You need to make it easy for new customers to understand and want your product very quickly.

Let’s take a look at 6 ways you can market your snow cone business:

1. Have A Menu Item You’re Known For

marketing a snow cone business

Snow cones have been around for a long time; it’s time to spice up the biz a little! A lot of successful companies selling generic food items come up with something fun and crazy to separate them from the crowd.  

A great example of this is the Hustle’s Sam Parr. He started a hot dog stand as a side hustle and wanted to find a way to stand out and bring people in to buy. The solution, a funny slogan that got people laughing and ultimately led to selling a lot of hot dogs. The slogan was: “Wieners as big as a baby’s arm.” They differentiated themselves by having massive hot dogs, which paired with a funny slogan was all it took to bring folks in the ‘door'.

2 fun and crazy snow cone menu ideas

  • You can approach this in many different ways. One way would be to have a massive snow cone, and maybe it’s seven scoops of ice tall, and you call it the skyscraper. This lends well to visual advertising both in print and for customers. You could have signage that says ‘home of the skyscraper’ with an image of the massive snow cone. Customers who purchase the skyscraper will also be walking by other people at the event; it will definitely catch attention and start conversations.
  • Another way is to have weird syrup flavors. Think of a traditional menu with bubble gum, cherry, grape, etc. All you have to do is throw in a few weird flavors like coffee, green tea, or maple bacon. You can also rename traditional flavors: Instead of grape, how about grapes of wrath? Instead of cherry, how about sublime lime? It’s the little things that can add a lot of personality to your business.

With both of these examples, even if you don’t sell a lot of the novelty items or flavors, you will grab people’s attention and bring them in. The key is having something fun that separates you out from the crowd of vendors.

2. Have branding and signage the grabs people’s attention

snow cone business branding and signs

Going off of the previous point, branding is a huge part of your business. It doesn’t necessarily mean you need to have a vomit of colors everywhere, but it’s good to have vibrant, eye-catching logos, designs, and signs. A plain white tent with a snow cone machine is not going to catch the attention of others.

Try to have visuals that stick out, such as a clear name, logo, and slogan on your tent or cart. Add some color and display your products in a visually appealing way. Just do me a favor, and don’t blow up real pictures of snow cones and put them on your vinyl sign. Have an artist create fun vector-style snow cone illustrations that will translate well when blown up to a colossal size.

People tend to shop and eat at businesses having excellent presentations and are aesthetically pleasing. Sure, this is ‘only’ snow cones, but you’ll find the rule still holds up.

Snow cone business display and branding ideas:

  • Have someone dress in a snow cone costume and spread the word at the event
  • Organize a snow cone eating contest that will potentially gather people around your cart and ready to buy
  • Hand out free stickers that have your funny slogan or catchphrase

These are just examples to get your thinking caps on.

3. Have a website

build snow cone business website

Although you probably won’t be selling snow cones online (idea?), having a website is crucial to your business. Why? As stated in our step-by-step guide for starting a snow cone business, people are searching for snow cones and won’t know you can satisfy that need if they can’t find you. The internet is where people get their information, so make sure you’re taking advantage of that.

If your business is focused on events, such as festivals and birthdays, this is another big reason to have a website.

How will someone find and book you if you’re not online? The answer is they won’t. If you think people will look up phone numbers for snow cone stands, think again.

If you’re not online, you will get passed over, so it’s a must. It’s easy to set up your own website that will take care of the basics. You can build your own snow cone business website on a platform like WIX or Squarespace in a matter of minutes. There’s no need to hire someone and pay them $5,000 to do it. Let’s take WIX, for example.

How To Build Your Snow Cone Website With WIX

With WIX, you don’t need to know code at all; it’s a drag-and-drop builder. Here’s how to build your snow cone website with WIX:

Step 1: Sign up for the unlimited plan , which is only $17 a month. WIX offers a free plan, but you won’t be able to connect a domain name with the free option.

snow cone stand business plan

Step 2: Choose one of their pre-made templates and change the photos and information to reflect your business.

snow cone stand business plan

Step 3: Buy and/or connect your domain name: IE coneheads dot net, com, etc.

snow cone stand business plan

Step 3: Add the WIX events calendar app to keep track and let others see where you’re going to be

Wix events app

Step 4: Add the WIX bookings app , which will allow you to mark times available for clients to book you. You can even accept payment on-site for things like flat rate events, etc.

Wix bookings app

Think of a website like your home-base. Make sure to include things like contact information, event schedule, menu, pricing, and social media links. Speaking of social media, this brings us to our next point.

4. Have Social Media

Social media is essential because it’s the easiest way for fans and customers to keep track of where you are and what’s going on. If you’re a fan of the TV show THE GREAT FOOD TRUCK RACE, you’ll know the importance social media plays into success. Food trucks that have a lot of raving fans, like Waffle Love , harness the power of social media.

https://www.instagram.com/p/B73ayw8A2Zt/

If you’re building a business and a brand, not just selling snow cones, you will have fans and eager customers. So, make it easy for them by communicating on social media. I recommend focusing on one channel, so you don’t make it more complicated than it needs to be. In 2020, that channel is probably Instagram.

5. Advertise Your Business On Craigslist

snow cone stand business plan

Although it may seem old school, putting an ad on Craigslist might be a gold mine. People are always looking for bands and vendors to hire for events, especially private events like birthday parties, bar mitzvahs, weddings, etc.

Private events can also be the most lucrative, so taking 10 minutes to list your snow cone stand is well worth the potential reward. Make sure to include your services, menu, pricing, and links to your website and social media. There’s a lot of spam and weirdos out there, put yourself in a good position by providing as much legitimacy as you can. People will trust you a lot more if you have a presence online, and they can see a business history, such as photos of your last event.

I recommend listing your business in the Gigs > Events section of Craigslist

It will cost you $5 to post your listing, which is a very small price to pay if you land even one client.

6. Give Out Free Snow Cones

snow cone marketing ideas

People love free stuff. Not only will people love you for giving them free products, but they will also develop a sense of loyalty for your brand. It’s all psychological, they kind of feel like they owe you one. Snow cones are very cheap to produce, so this marketing technique is perfect.

A great example of this is the drive-thru coffee chain Dutch Brothers. Every time they open a new location, they do an entire day or free drinks! As you can imagine, the lines of cars and people at the windows are insane, and it probably costs Dutch Brothers a hefty amount.

The brilliance is it brings people to the brand, they taste the product, and then they’re hooked. I watched this in my home town, and you better believe there was another vast line the second day when they were charging full price.

As calculated in a previous article, snow cones cost an average of .80 to make. This means even giving out 300 snow cones will only set you back $240. Let’s take a look at how to use this strategy in a temporary situation like an event or parking lot.

2 Strategic Ways To Give Out Free Snow Cones

  • You could work with the vent coordinator to announce you’re giving out 100 free snow cones to the first 100 people at your cart. After the 100 are gone, you better believe people will still want snow cones after they’ve been exposed to the idea. You can even offer a special discount to those who were close but didn’t make the 100.
  • Another way to approach it is a buy one get one offer. Since your profit per snow cone will probably be around $2.00, you will still make money with a buy one get one free special. This is a great marketing hack that will still make you money. A BOGO deal is also a smart idea towards the end of an event when you have the extra inventory you might not sell-through.

Something less structured can also work. If things are slow, have a helper take a tray of free snow cones around the event. This makes people aware that there are snow cones, and they will find you when they need a refreshing treat.

How do you market your snow cone or food truck business? Leave a reply below…

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4+ Licenses and Permits You May Need to Open a Snow Cone Stand

As the sun beats down and temperatures soar, there's nothing quite as refreshing as a frosty snow cone to provide sweet relief. If you've ever dreamed of turning this icy treat into a thriving business, you're not alone. Opening a snow cone stand can be a fun and lucrative endeavor, but it's important to remember that it's not as simple as just setting up a table and selling your frozen delights. To ensure your snow cone stand operates legally and smoothly, you'll need to obtain various licenses and permits. In this article, we'll guide you through the essential licenses and permits you may need to open your snow cone stand, helping you navigate the often-confusing world of business regulations and requirements. So, before you start shaving ice and mixing flavors, read on to make sure you're fully prepared to launch your frosty empire!

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Our List of 4+ Licenses and Permits You May Need to Open a Snow Cone Stand:

Below is a list of possible Snow Cone Stand licenses and permits needed. Please note it will vary state by state, so please do extensive research before starting.

1. Business License.

A business license is a legal document that allows an individual or company to operate a business in a specific location. It is a requirement for all businesses to obtain a business license before starting operations. In the case of a snow cone stand, a business license may be required to ensure that the stand meets health and safety regulations, as well as zoning requirements. It also allows the stand to legally operate in a particular area and may be necessary to obtain permits for events or festivals. Additionally, having a business license may provide credibility to potential customers and suppliers.

Check if your state requires a Business License.

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2. Food Service License.

A Food Service License is a permit issued by the local government that allows a business to legally sell food to the public. It ensures that the food being sold is safe and meets certain health and safety standards.You would need a Food Service License to start a Snow Cone Stand because you are selling food to the public. Without a license, you could face fines or legal action for selling food without meeting health and safety regulations. Additionally, having a license can give customers confidence that the food they are purchasing is safe to eat.

Check if your state requires a Food Service License.

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3. Health Department Permit.

A Health Department Permit is a government-issued license that allows a business to operate in compliance with health and safety regulations. In the case of a Snow Cone Stand, a Health Department Permit is required to ensure that the food and beverages being served are safe for consumption and prepared in a sanitary manner. This permit may require the owner to undergo food safety training, submit to regular inspections, and maintain certain standards for cleanliness and hygiene. Without a Health Department Permit, the Snow Cone Stand may be shut down or face fines for operating illegally.

Check if your state requires a Health Department Permit.

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4. Sales Tax Permit.

A Sales Tax Permit is a document that allows a business to collect and remit sales tax to the government. It is required by most states for businesses that sell tangible goods or taxable services.If you are starting a Snow Cone Stand, you may need a Sales Tax Permit because you will be selling a tangible product (snow cones) that is subject to sales tax in most states. Without a Sales Tax Permit, you may be unable to legally collect and remit sales tax, which could result in fines and other penalties. Additionally, having a Sales Tax Permit allows you to purchase supplies and ingredients for your business without paying sales tax, which can help reduce your operating costs.

Check if your state requires a Sales Tax Permit.

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Check if your state requires a .

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Frequently asked questions

What is the best business formation license for a snow cone stand, is it required to have a general business license for a snow cone stand, related business licenses.

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I'm Nick, co-founder of newfoundr.com, dedicated to helping aspiring entrepreneurs succeed. As a small business owner with over five years of experience, I have garnered valuable knowledge and insights across a diverse range of industries. My passion for entrepreneurship drives me to share my expertise with aspiring entrepreneurs, empowering them to turn their business dreams into reality.

Through meticulous research and firsthand experience, I uncover the essential steps, software, tools, and costs associated with launching and maintaining a successful business. By demystifying the complexities of entrepreneurship, I provide the guidance and support needed for others to embark on their journey with confidence.

From assessing market viability and formulating business plans to selecting the right technology and navigating the financial landscape, I am dedicated to helping fellow entrepreneurs overcome challenges and unlock their full potential. As a steadfast advocate for small business success, my mission is to pave the way for a new generation of innovative and driven entrepreneurs who are ready to make their mark on the world.

COMMENTS

  1. How to Start a Snow Cone Business

    4. Snow Cone Stand Startup Costs. On average, the total cost to start a snow cone stand is reported to average between $4,000 to $10,000. As far as new businesses go, there are few barriers to entry with a snow cone stand. Startup costs are low, and you may be able to fund the whole venture on your own.

  2. How to Start a Snow Cone Business

    Step 4: Create a Snow Cone Business Plan. Here are the key components of a business plan: Executive Summary: ... To make your snow cone business stand out, offer unique flavors, customization options, eye-catching presentation, exceptional customer service, and unique add-ons. These strategies will help differentiate your business from ...

  3. Snow Cone Stand Business Plan Example

    An effective business plan for snow cone stand must also contain the marketing segmentation of the target audience which can become the potential customers of your shave ice shop. The detailed marketing segmentation comprising of the company's target audience is as follows: 5.2.1 Residential Community: The first group of our target customers ...

  4. What's the Annual Profitability and Costs of a Shaved Ice or Snow Cone

    There are a couple variables that will determine your labor expenses. First, is where you plan operate the business geographically. If you operate the shaved ice stand in some parts of California you may need to pay $12.00 an hour for a trustworthy employee. If you live in rural Tennessee, you may only need to pay $8.00 an hour.

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

    6. Open a business bank account and secure funding as needed. For a snow cone business, managing finances effectively is critical to ensure smooth operations and growth. Opening a dedicated business bank account and securing the right funding can set your venture on the path to success.

  6. How To Start A Profitable Snow Cone Business In 5 Steps

    Step 1: Name Your Snow Cone Business. 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.

  7. 2024 Blueprint: Launching a Successful 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.

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

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

  9. 6 Steps To Creating the Best Snow Cone & Shave Ice Business

    Obtain a Federal EIN (Employer Identification Number) Obtain a DBA (Doing Business As) if you're not a franchisee. Pass health and safety inspections. 5. Get Familiar With Shave Ice Business Start-Up Costs. You're probably getting into the shaved ice business because you'd like to make money, not spend it.

  10. How to Write a Business Plan for a Snow Cone Stand

    2. Describe your snow cone business in detail. Talk about the sizes and flavors of snow cones you plan to sell. If your business will sell any other products, detail them here. Offer an overview ...

  11. Snow Cone Business Plan [Sample Template]

    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.

  12. Snow Cone Business Plan

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

  13. How To Start A Snow Cone Business

    Step 3: Buy The Right Equipment. Whether you decide to purchase a shaved ice truck or a snow cone cart, you'll need to spend money on the right equipment. This is where the bulk of your initial investment will be but as far as a food business goes, it is oretty low. Expect your total costs to be around $5-6000.

  14. How to Start a Snow Cone Business? Step By Step Guide

    Here are the essential steps to getting started: Market Research: Begin by researching your local market to determine if there's demand for snow cones in your area. Consider factors such as ...

  15. Snow Cone Business Plan Template & Guidebook

    1. Describe the Purpose of Your Snow Cone Business. The first step to writing your business plan is to describe the purpose of your snow cone business. This includes describing why you are starting this type of business, and what problems it will solve for customers. This is a quick way to get your mind thinking about the customers' problems.

  16. How To Start A Snow Cone Business

    Business Plan for a Snow Cone Business Snow Cone Shack Business Plan. 1. Executive Summary. Snow Cone Shack is a new business venture located in the downtown area of Anytown, USA. We will provide customers with delicious and affordable snow cone treats made to order with unique flavors and combinations.

  17. How to Open a Snow Cone Business in 2023 [Business Plan]

    Throw an open house party to officially launch the business. Be deliberate with your marketing sales approach. Encourage the use of word of mouth to promote your snow cone business. Leverage on all available online and offline platforms to promote your snow cone business.

  18. How to Write a Business Plan for a Snow Cone Stand

    A snow cone stand can become a popular hang-out spot for locals and a go-to destination for vacationers seeking a cool, sweet treat. If you're interested in starting a snow cone business, a strong business plan will help you attract investors and start-up money. Before you begin writing your proposal, research the market you hope to serve.

  19. How To Start A Snow Cone Business

    Step 1: Research the market. Starting a new snow cone business requires proper market research to assess if there is enough customer demand to make the business profitable. Here are some methods to conduct this research: Demographics: Determine the potential customer base in your chosen location.

  20. How to Start a Snow Cone Business

    3. Decide Which Niche to Concentrate On. It is important to state that there is no known niche area when it comes to the snow cone shop business. Every player in this line of business are basically involved in preparing and serving/selling snow cones, ice creams, yoghurt and perhaps other ice - desserts.

  21. How to Start a Portable Snow Cone Stand

    Obtain your snow cone stand. The standard cart is 6 feet long, 4 feet high and 3 feet long; ensure your stand meets city codes before you purchase it. Schedule your health and safety inspection ...

  22. 6 Ways To Market Your Snow Cone Business

    Marketing is essential for growing your snow cone business. Here are 6 ways to market your snow cones and stand out from other food vendors at events. ... WIX offers a free plan, but you won't be able to connect a domain name with the free option. Step 2: Choose one of their pre-made templates and change the photos and information to reflect ...

  23. 4+ Licenses and Permits You May Need to Open a Snow Cone Stand

    1. Business License. A business license is a legal document that allows an individual or company to operate a business in a specific location. It is a requirement for all businesses to obtain a business license before starting operations. In the case of a snow cone stand, a business license may be required to ensure that the stand meets health ...