Open your own ice cream shop! FabJob Guide to Become an Ice Cream Shop Owner Barbara Lightner Visit www.FabJob.com FabJob Guide to Become an Ice Cream Shop Owner Contents About the Author ..........................................................................................8 1. Introduction ..........................................................................................10 1.1 A Growth Industry ......................................................................11 1.2 Owning an Ice Cream Shop ........................................................14 1.2.1 Products ...............................................................................14 1.2.2 Services .................................................................................17 1.3 Benefits of Being an Ice Cream Shop Owner ............................19 1.4 Inside This Guide .........................................................................21 2. Getting Ready .......................................................................................23 2.1 Skills You Will Need ....................................................................23 2.1.1 Self-Evaluation Quiz ..........................................................24 2.1.2 People Skills .........................................................................25 2.1.3 Business Skills .....................................................................27 2.1.4 Ice Cream Making Skills ....................................................30 2.2 Learning by Doing .......................................................................34 2.2.1 Work in an Ice Cream Shop ...............................................34 2.2.2 Getting Related Food Service Experience .......................35 2.2.3 Get Volunteer Experience ..................................................37 2.3 Be Your Own “Mystery Shopper” .............................................38 2.4 Learn From Other Business Owners..........................................43 2.4.1 Talk to Ice Cream Shop Owners .......................................43 2.4.2 Join an Association .............................................................45 2.5 Educational Programs .................................................................48 2.5.1 Business Courses ................................................................48 2.5.2 Ice Cream Workshops and Courses .................................49 2.5.3 Equipment Manufacturers Training Seminars ...............51 Copyright © 2012 FabJob Inc. • www.fabjob.com • 4 FabJob Guide to Become an Ice Cream Shop Owner 2.6 Resources for Self-Study ..............................................................51 2.6.1 Industry Publications .........................................................51 2.6.2 Books ....................................................................................52 2.6.3 Websites ...............................................................................53 3. Starting Your Ice Cream Shop ...........................................................57 3.1 Choosing Your Niche ...................................................................58 3.1.1 Old-Fashioned Ice Cream Parlor ......................................59 3.1.2 Scoop Shop ..........................................................................61 3.2 Options for Starting an Ice Cream Shop ...................................62 3.2.1 Buying an Established Store..............................................63 3.2.2 Franchising ..........................................................................69 3.2.3 Opening a New Ice Cream Shop ......................................81 3.3 Choosing a Store Name ...............................................................81 3.4 Your Business Plan .......................................................................84 3.4.1 What to Include in a Business Plan ..................................85 3.4.2 Start-Up Financial Planning ..............................................90 3.4.3 A Sample Business Plan ...................................................100 3.4.4 Business Plan Resources ..................................................118 3.5 Start-Up Financing .....................................................................118 3.5.1 Getting Prepared ...............................................................119 3.5.2 Equity vs. Debt Financing ...............................................121 3.5.3 Borrowing Money .............................................................122 3.5.4 Finding Investors ..............................................................124 3.5.5 Government Programs ....................................................127 3.6 Legal Matters ...............................................................................129 3.6.1 Your Business Legal Structure ........................................129 3.6.2 Business Licenses ..............................................................134 3.6.3 Taxes ...................................................................................136 Copyright © 2012 FabJob Inc. • www.fabjob.com • 5 FabJob Guide to Become an Ice Cream Shop Owner 3.6.4 Insurance ............................................................................138 3.6.5 Other Regulations .............................................................141 4. Setting Up Your Ice Cream Shop ...................................................144 4.1 Finding a Location ......................................................................144 4.1.1 Possible Locations .............................................................145 4.1.2 Points to Consider ............................................................147 4.1.3 Signing Your Lease ...........................................................150 4.2 Store Design ................................................................................162 4.2.1 Outside the Store ..............................................................163 4.2.2 Inside the Store..................................................................166 4.2.3 Store Security and Loss Prevention ...............................170 4.3 Displaying Merchandise ...........................................................172 4.3.1 Where to Get Display Fixtures .......................................172 4.3.2 Maximizing Sales ..............................................................174 4.3.3 Creating Window Displays .............................................174 4.4 Obtaining Your Inventory .........................................................177 4.4.1 Buying Ice Cream and Frozen Desserts .........................177 4.4.2 Making Your Own Ice Cream or Frozen Desserts .......179 4.5 Equipment and Supplies ...........................................................180 4.5.1 What You’ll Need .............................................................180 4.5.2 Where to Get Equipment and Supplies .........................185 5. Running Your Business ....................................................................189 5.1 Store Operations .........................................................................189 5.1.1 Developing a Procedures Manual ..................................190 5.1.2 Areas of Operations Checklists ......................................191 5.1.3 Developing a Product Manual .......................................195 5.1.4 Inventory Software and POS Systems ..........................196 Copyright © 2012 FabJob Inc. • www.fabjob.com • 6 FabJob Guide to Become an Ice Cream Shop Owner 5.2 Pricing Your Products ................................................................198 5.2.1 Guidelines ..........................................................................198 5.2.2 Retail Pricing Formulas ...................................................200 5.2.3 Profit Margin vs. Percentage Markup............................201 5.3 Getting Paid .................................................................................204 5.3.1 Accepting Debit Cards .....................................................204 5.3.2 Accepting Credit Cards ...................................................205 5.3.3 Accepting Checks .............................................................206 5.4 Financial Management ..............................................................206 5.4.1 Bookkeeping ......................................................................206 5.4.2 Financial Statements and Reports ..................................208 5.4.3 Building Wealth ................................................................216 5.5 Employees ...................................................................................221 5.5.1 When to Hire Help ...........................................................221 5.5.2 Recruiting Staff .................................................................223 5.5.3 The Hiring Process ...........................................................226 5.5.4 New Employees ................................................................229 6. Getting and Keeping Customers ....................................................233 6.1 Marketing Your Business ..........................................................233 6.1.1 Advertising ........................................................................234 6.1.2 Free Publicity .....................................................................237 6.1.3 Promotional Tools .............................................................239 6.1.4 Your Website ......................................................................242