For event and leisure

START UP A MOBILE ICE CREAM BUSINESS

STEP1. PLANNING

Business plan and cash flow planning
I know what you're thinking, what do I need a business plan for? I've already got a plan, and that plan is to go out there with my nice new ice cream van to all those big summer events where I've heard that you can take tens of thousands of pounds per day. Just sell as many ice creams as I can and retire after twelve months.

Well that's the theory, unfortunately in business the reality is somewhat different. Let's assume you are a single operator business and that your ice cream van is fitted with a typical single lever, pump fed, soft ice cream machine, how many ice creams will that machine produce per hour? Lets assume 200. Now you need to realistically allow for time spent serving and taking money from customers plus refilling the ice cream machine which could easily reduce the figure to a more realistic 120 per hour. Now, how many hours will you be open and serving for? Lets say on a typical summers day from midday till 8pm, about eight hours.

Now for some maths, assuming you have a never ending queue all day and are able to produce and serve 120 ice creams per hour, times that by the eight hours you will be open, adds up to 960 ice creams in a whole day. Now times that amount by approximately £1.20 retail price per ice cream and your days takings will amount to £1,152. Assuming that that you make an industry average of around 90% gross profit (after cost of ice cream mix, cones etc) you will end up making an impressive £1,036 gross profit.

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KEY POINTS

CHECK LIST

The initial idea
Have you ever considered starting your own mobile ice cream business?
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What's involved
It looks so easy, but what's it really like running your own mobile ice cream business?
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Where to trade
Plan where your customers will be and where you can legally trade.
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Be imaginative
Adapt and offer new ice cream products without big changes to your mobile ice cream business.
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Business plan
Financial planning is essential for your new mobile ice cream business.
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RELATED ARTICLES

A business plan or a business cash flow plan
We often get asked this question, what is the difference between a business plan and a business cash flow plan? Put simply a business plan is your plan to run your new ice cream business, the ice cream products you are planning to sell, where and how you are going to sell those ice cream products, your target customers, your marketing plans and your general business strategy to succeed and become successful over the next few years. Whereas a business cash flow plan is your projection of your business cash flow over the next 12, 24 or 36 months. In order to produce a cash flow plan you need to realistically project your future turnover, your product costs, your expected gross profits, all of your expected business expenses and finally provide your projected net profits. 

 
 
 
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