Snow Cone Business Plan Template

Snow Cone Business Plan Template

If you want to start a Snow Cone business or expand your current Snow Cone business, you need a business plan.

The following Snow Cone business plan template gives you the key elements to include in a winning Snow Cone business plan.

You can download our snow cone business plan template (including a full, customizable financial model) to your computer here.

 

Sample Snow Cone Business Plan Template

Below is a snow cone business plan example with each of the key sections to help you write a snow cone business plan for your own company.

I. Executive Summary

Business Overview

[Company Name] is a unique, local snow cone establishment that serves a variety of snow cones and shaved ice to the community of [company location]. The store will be centrally located in the heart of [location], capturing both residential and business customers. The company will also have a snow cone cart, available to rent for parties and events.

Products Served

[Company Name] will sell a variety of snow cone flavors such as Cherry, Grape, Blue Raspberry, Strawberry, Lemon-Lime, Banana, Tiger’s Blood, Root Beer, and Watermelon. [Company Name] will also offer soft drinks and snacks to its customers.

Customer Focus

[Company Name] will serve the community of [company location]. The community largely comprises families and has a large number of schools, churches, and organizations. The demographics of the target customer profile is as follows:

• 52,313 residents
• Average income of $65,000
• 74.9% married
• 16 schools to include elementary, middle, and high schools
• Median age: 39 years

Management Team

[Company Name] will be solely owned and operated by [Founder’s Name]. In his experience in the ice cream and frozen dessert industry, he acquired an in-depth knowledge of the operations and marketing of running a snow cone business before he started [Company name]. [Founder’s Name] fun nature, innovative snow cone business ideas, and passion for business led him to start a business in this industry.

[Founder] graduated from the University of ABC, where he majored in Business. He also has a certificate in food service management from the local culinary institute.

Success Factors

[Company Name] is qualified to succeed due to the following reasons:

• The Company will provide various flavors of snow cones (shaved ice or ground-up ice desserts) to meet the needs of a wide range of customers.
• The snow cone shop will be located in a highly trafficked, prime retail location in a busy intersection of town.
• [Founder’s Name] has lived in [company location] all of his life and has raised his family in the same community as the target market. He has many connections with the local schools, churches, and organizations.
• [Company Name] will offer premium snow cones at a price point that is competitive with other establishments and be moderately priced for freshly made snow cones.

Financial Highlights

[Company Name] is currently seeking $170,000 to launch its snow cone shop. Specifically, these funds will be used as follows:

• Store design/build: $120,000
• Working capital: $50,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even

The following graph outlines the pro forma financial projections for [Company Name] over the next five years:

 

II. Company Overview

Who is [Company Name]?

[Company Name], located at [insert location here], is a new, upscale snow cone shop focusing on providing a variety of snow cone flavors to the local community in an enjoyable environment. The Company will also sell soft drinks and snacks.

The snow cone shop will be located in [insert location here]. According to research, about 50,000 vehicles pass through the location daily, making it the best and most suitable location for the business. The location will include an outdoor seating area and parking. Other businesses in the [insert location here] where [Company Name] will be located include shops, gas stations, and a variety of other restaurants, all of which will bring in additional customers for the business.

Much of the community is made up of school-age children and families that frequent snow cone shops. There is not much competition, and [Company Name] would be the only snow cone shop in [insert location here].

[Company Name]’s History

[Founder’s Name] is an entrepreneur with a passion for snow cones. He seeks to provide an upscale place for snow cone lovers by offering a wide selection of different flavors of snow cones in one place. [Company Name] will become the best snow cone shop in [Location], offering its customers the highest quality and enjoyable experience.

[Founder’s Name] has selected an initial location and is currently undergoing due diligence on each property and the local market to assess the most desirable location for the snow cone shop.

Since incorporation, the company has achieved the following milestones:

• Found snow cone shop space and signed Letter of Intent to lease it
• Developed the company’s name, logo, and website
• Created the menu of snow cones, soft drinks, and snacks
• Determined equipment and inventory requirements
• Began recruiting key employees with experience in the ice cream and frozen dessert industry

[Company Name]’s Products/Services

The Company provides the following products:

• A variety of snow cone flavors (shaved ice or ground-up ice desserts) including Cherry, Grape, Blue Raspberry, Strawberry, Lemon-Lime, Banana, Tiger’s Blood, Root Beer, and Watermelon
• Snacks
• Soft drinks

 

III. Industry Analysis

When it comes to frozen desserts, snow cones are one of the most popular choices in the US. The market is infinite since every one, regardless of age, gender or income, consume snow cones and shaved ice.

As per the report, the US frozen dessert market was valued at $13.3 billion last year and is expected to reach $15.8 billion in the next five years, rising at a CAGR of 2.49%. The majority of US frozen dessert establishments have been in business for more than 20 years, and many are still family-owned businesses.

The US market for frozen desserts is driven by the rising demand for low-sugar and low-calorie desserts domestically. Consumers are becoming increasingly concerned about their health but also crave to try out new delicacies. Rising consumer spending on these desserts and the development of new products have been the key driving factors for the industry’s growth in the past few years. With the shift in trend from desserts such as ice cream post-dinner or lunch toward frozen desserts, these desserts have paved their way into the market, replacing traditional desserts with a lower shelf life.

 

IV. Customer Analysis

Demographic Profile of Target Market

[Company Name] will serve the community residents of [company location] and its surrounding areas.

The area in which the company will serve has dozens of elementary, middle, and high schools, as well as numerous sports organizations, churches, and activities. [company location] is mostly a family-friendly community whose residents regularly consume snow cones.

Below is a demographic breakdown of this area:

Customer Segmentation

The Company will primarily target the following customer segments:

• Residential Community: The Company will target the community residing in the [Location] of [Company Name]. Snow cones are one of the most popular desserts among American children and teenagers, which means the company can anticipate a high volume of sales. Also, the area has a large population of parents of young children who regularly treat their children with snow cones.
• Working Community: The second category includes the workers and employees who work in the businesses or offices located in the vicinity of the snow cone shop. [Company Name] expects to draw in a large number of workers in various industries coming to purchase snow cones and snacks during work lunch hour or break.
• Passers-by: The Company will also target people who do not live or work near the shop but have come to the area for any business purpose or commercial activity. [Company Name] will be the perfect place for these passers-by to take relief from the hot weather of [Location].

 

V. Competitive Analysis

Direct & Indirect Competitors

Snow Escape
Snow Escape is home to one of the best snow cones in [insert location here]. Snow Escape has been a local business in [location] for 20 plus years. They have over 20 flavors to choose from, including the local favorites of homemade snow cones and fudgesicle.

Snow Good
Snow Good provides snow cones made from ice cubes that are shaved into the consistency of snow using their special machines. Products of Snow Good are made easily with no expertise and are served in a flower cup, cone or tub and can be eaten with a straw spoon. The main weakness of snow cones sold by Snow Good is that they do not sell quality syrups and prefer to sell the more inexpensive brand with lower quality taste.

Frozen Delight
Frozen Delight is a US-based provider of snow cones, ice cream, frozen yogurt, and other frozen desserts. The company was founded in 1945 and is headquartered in [location]. Frozen Delight is famous for its 11 flavors slogan customer sampling of snow cones flavors. The company is dedicated to providing the best quality flavors and softest snow to its customers. In addition to traditional snow cones, it also offers snacks, soft drinks, shakes, and prepackaged ice cream.

Competitive Advantage

[Company Name] enjoys several advantages over its competitors. These advantages include:

• Management: The Company’s management team has xx years of business and marketing experience that allows them to market and serve customers in an improved and sophisticated manner than the competitors.
• Relationships: Having lived in the community for xx years, [Founder’s Name] knows all the local leaders, newspapers, and other influencers. As such, it will be relatively easy for [Company Name] to build brand awareness and an initial customer base.
• Various Flavors of Snow Cone: The Company will provide a wide variety of snow cone flavors of different types and in different sizes that can meet the needs of a wide range of customers.
• Location: [Company Name]’s location will be located in a highly trafficked, prime retail location in a busy intersection of town.

 

VI. Marketing Plan

You can download our snow cone business plan template (including a full, customizable financial model) to your computer here.

The [Company Name] Brand

[Company name] seeks to position itself as a respectable, upper-middle-market competitor in the snow cones and frozen dessert industry. Customers can expect to receive the best quality snow cones at competitive prices.

The [Company Name] brand will focus on the company’s unique value proposition:

• Offering a wide variety of snow cones flavors to cater to the needs of all of its customers
• Convenient location
• Moderate price point
• Providing excellent customer service

Promotions Strategy

[Company Name] will target all residents of [company location] within a 20–30-mile radius. The Company’s promotions strategy to reach the most clientele include:

Social Media
[Company Name] will be active on social media and use targeted social media advertising to attract its most likely customers. The Company will frequently post upcoming specials, events, and seasonal featured flavors. [Company Name] will also post pictures and reviews of its customers on its social media platforms to increase audience awareness and loyalty.

Sampling
Before opening the snow cone shop [Company Name], employees will initially give free snow cones samples to passersby to enable them to taste the quality of snow cones and learn about the company. The Company will also organize pre-opening events designed for prospective customers, local merchants, and press contacts. These events will create buzz and awareness for [Company Name] in the area.

Advertisement
Advertisements in print publications like newspapers, magazines, etc., are an excellent way for businesses to connect with their audience. The Company will advertise its products in popular magazines and news dailies. Obtaining relevant placements in industry magazines and journals will also help in increasing brand visibility.

Word of Mouth Marketing
[Company name] will encourage word-of-mouth marketing from loyal and satisfied customers. The Company will use recommendations and word-of-mouth marketing to grow the customer base through the network of its existing customers. The Company will be incentivizing its existing customer base to encourage their friends to come and try their snow cones for the first time.

Website
[Company Name] will have an informative and attractive website that will feature professional photos of the shop, its snow cones, shop hours, menu, address, and contact information. It will also use SEO to constantly stay at the top of search engines for anyone searching for snow cones shops near them.

Special Offers
Offers and incentives are an excellent approach to assisting businesses in replenishing the churn in their customer base that they lose each year. The Company will introduce special offers to attract new consumers and encourage repeat purchases, which will be quite advantageous in the long run.

Pricing Strategy

[Company Name]’s pricing will be moderate, so customers feel they receive great value when purchasing its products. The customer can expect to receive quality snow cones for a more affordable price than what they pay at an ultra-premium snow cone shop.

 

VII. Operations Plan

Functional Roles

To execute on [Company Name]’s business model, the company needs to perform several functions, including the following:

Administrative Functions

• General & administrative functions including legal, marketing, bookkeeping, tax, etc.
• Sourcing and storing ingredients
• Hiring and training staff

Small Kitchen Functions

• Snow cones and snacks preparation
• Maintain counter and snow cone machine cleanliness at all times
• Ongoing menu creation and modification

Store/Retail Functions

• Order taking and fulfillment
• Cashier

Milestones

[Company Name] expects to achieve the following milestones in the following [] months:

 

VIII. Management Team

Management Team Members

[Company Name] is led by [Founder’s Name], who has been in the ice cream and frozen dessert industry for xx years. In his experience in the industry, he acquired an in-depth knowledge of the ins and outs of opening a snow cone business before he started [Company name].

[Founder] earned his bachelor’s degree in business administration from the University of ABC. He also has a certificate from the local culinary institute in food service management.

Hiring Plan

[Founder’s Name] will serve as the store manager. He will hire the following personnel in order to maintain an effective and profitable snow cone business:

• Cashier
• Snow cone preparers
• Assistant Manager
• Maintenance Personnel

 

IX. Financial Plan

Revenue and Cost Drivers

[Company Name]’s major revenue will come from the sales of snow cones to its customers. The Company will also earn from the sale of other products like soft drinks and snacks. As the company grows and revenues are able to support it, the store will add a drive-thru window as another option for serving its customer base.

The major costs for the company will be sourcing the fresh ingredients and production of the snow cones and other products. Other cost drivers will be the salaries of the staff, company overhead, and advertising costs.

Capital Requirements and Use of Funds

[Company Name] is currently seeking $170,000 to launch its snow cone business. Specifically, these funds will be used as follows:

• Store design/build: $120,000
• Working capital: $50,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even

Key Assumptions

The following table reflects the key revenue and cost assumptions made in the financial model:

 
5 Year Annual Income Statement

 
5 Year Annual Balance Sheet

 
5 Year Annual Cash Flow Statement