How to Start a Snow Cone Business
Snow cone business is one of the businesses that require low startup capital with high-profit potential. A lot of people want to know how to set up and operate a snow cone business as a side hustle during the summer. A lot of retirees like the business based on the fact that it allows them to interact with members of the community. However, the business can be seasonal, depending on the part of the country you reside in. Continue reading to learn how to start a snow cone business.
- Develop Your Snow Cone Business Plan: How to start a snow cone business.
Business plan development is the first step to starting a new business. Every startup needs a business plan to have an in-depth knowledge of the business potentials and risks. Preparing a business plan for your snow cone business will help to avoid unnecessary problems in the future. Your budget estimate and target market will determine where to locate your snow cone stand. Most states in the U.S require different licenses based on the type of products you sell. That’s why the license of ice cream and candy business is different from that of a snow cone stand. Your snow cone business plan will let you identify the agency permit needed to operate your business. However, your state office of economic development is in the best position to advise you about your locale’s specific requirements.
- Select Location for Your Snow Cone Business
It is extremely important to find a good location for your snow cone stand. You should choose a location that is in accordance with your target market. This is important because most states want portable food vendors to have a permanent location and pass the compulsory health and safety inspections. Food vendors are not allowed in residential areas of most cities and pedestrians need to have 3 to 4 feet of walking space around the stand. The location change is highly discouraged in most cities, so pick your location carefully.
- Register Your Snow Cone Business
Business registration is another important aspect of starting a new business. You have to register your new startup with local authorities, even if it’s a small scale business. Sole proprietors like snow cone business owners are required to get a business license from the county clerk and other local authorities where the stand will be situated.
Limited partnerships and other forms of corporate structures are to file paperwork with the state office.
- Get Your Snow Cone Stand: How to start a snow cone business.
The next phase after business registration is to obtain your snow cone stand. A standard snow cone stand needs to meet the city code requirements. So, ensure the stand meets the standard before you purchase it. Schedule important health and safety inspections & apply for necessary permits and licenses. Usually, you are required to get state tax permits and an employer tax number from the Internal Revenue Service. Besides, you may need to get other licenses depending on your location.
Park Your Stand in the Approved Location: How to start a snow cone business.
It is important to park your stand in the approved location before calling the attention of the inspection team. That’s because local authorities want your business to be on-site and fully operational before inspections.
Ensure your umbrella is clean and damage-free, that your drainage and cooling systems are functioning well, your non-edible and edible supplies are stored properly. You can fully start your snow cone business from the stand once the required inspections are done and you’ve been issued permits.
Pros of a Snow Cone Business
Low Startup Capital: The capital requirements for starting a snow cone business is small when compared to other small scale businesses.
Good Profit Margin: There is a high chance of making a reasonable profit from selling snow cone.
Work Outside: This is a great opportunity to make some money while enjoying your time outdoors.
Flexibility & Freedom: Snow cone business lets you be your boss, you can easily manage your schedule and take time off when you want.
Cons of Snow Cone Business
Hot Temperatures and Hard Work: Snow cone business requires hard word and the ability to stand hot temperatures. The cones can get a bit hot, and you might have to attend to customers in a hurry sometimes. So, you need to be able to manage stress.
It’s a Seasonal Business: Snowcone business is a seasonal business in many locations across the United States. You may have to reside in specific states to do it full time.
Occasional Slumps: Sometimes, sales might be low due to current events.