How to Open an Ice Cream Shop | Advice for Small Business Owners 2019

Hey guys. Today I’m gonna be sharing with you the three
fundamental steps that I’ve personally used to grow my ice cream business into an international
chain. If you are ready to open up an ice cream business,
or you’re already operating an ice cream business, and you wanna bring it to the next level,
okay? Then keep watching. My name is Wilson, and I’m so excited to shoot
this video for you. After word came out that our expansion to
Asia happened, my inbox was literally flooded with questions and people asking us how we
did it, and that’s the reason why I’m shooting this video for you to show you the fundamentals
and the step by step and the framework of which I followed to grow our business into
an international chain. You guys are definitely in for a treat. Make sure you guys stay till the end of the
video because that’s where I’m gonna be sharing with you the templates and the resources that
I’ve personally used in my Ice cream business. And at the end, I’m gonna guarantee that you’re
gonna have much more clarity in your business and much more success, so make sure you guys
keep watching. As a disclosure, these three steps that I’m
gonna be sharing with you are operating at a higher generic view of the process and framework
that I personally operate in. Let’s just jump right in. Step number one: Understand and visualize
the end product that you would like to serve your customer. Frozen dessert category has so many different
types of ice cream: we have ice cream, we have soft served with gelato, we have premium
ice cream, we have frozen custard, icy bowls there are so many different types of frozen
desserts out there. Without understanding what the end product
looks like, you would not be able to customize the type of space you need, the type of equipment
you need, so understanding what you would like to serve is very, very important. There are basically two types of standards
to determine the types of frozen dessert that you are gonna be serving, and they are butterfat
content, and air content. Have you ever tasted ice cream that is super
icy and not smooth and really crystallized? Whereas some other ice cream you have tasted
are super creamy and super rich and super greasy? Well, this is determined by the butter fat
content they have inside. Soft served ranges from 3% to 5%, so less
butterfat content whereas premium ice cream like Häagen-Dazs they range from 12 to 14%. So, the trick here is to be able to find the
type of butterfat content you wanna serve and the texture that you wanna be able to
deliver to your customer. The second type of standard that we use to
categorize frozen dessert is the Airflow Content which is also called the overrun: The amount
of air we pump into the ice cream mix in order for us to have the end product. You’ve probably tasted some ice cream that
are super fluffy and it’s like flavored air whereas others would be super dense: it’s
like eating a solid break of cream, okay? And this is all determined by the amount of
air that we pump inside of the ice cream mix. Now, depending on the type of frozen dessert
that you would like to serve, the equipment that is necessary is completely different,
okay? Soft served: you can have a soft serving machine,
you pour the mix in there, and as people order you can actually just pump out the ice cream
and the soft serve right away and you can serve it right away whereas if you’re tryna
serve something a little bit more traditional like ice cream or gelato you would need to
put it in a blast freezer, and then after it comes out you would need to blast freeze
it and then store it and then temper it before you can serve it. Now the logistics and the challenges are completely
different as you can see, and the space required for storage and operation is completely different
as well. So, understanding the end product, is super
important for you to open up a well maintaining ice cream shop or if you want to be able to
leverage the efficiency of your ice cream shop, this is super important. After you decide on what types of frozen dessert
you like to serve, it becomes a lot easier for you to find suppliers and most majority
of the time your suppliers would let you know what types of liquid is necessary, what types
of machinery, what is the ideal square footage for your shop. So, understanding what you want in the end,
is much more important than getting the logistics and the equipment sorted out because you would
definitely be able to find people to help you with those. The second step in opening an ice cream shop
is to know your three Yours: Yourself, Your numbers and Your customer. Know yourself: you’re the captain of the ship. You have a vision of how your customers are
enjoying your product and the candid smiles and the moments that you wanna deliver. This is your gift to be able to see what you
wanna deliver to your customers. You will need to be able to translate that
and communicate that to your team so they can help you execute this vision of yours. Knowing yourself and identifying this, is
super important in order for you and your business to operate in sync, and that’s when
you’re able to deliver the experience that you see and see it actualize in front of you. Know your numbers: So, many businesses out
there fail because they do not understand their numbers. I’m not a math nerd and that’s the reason
why I paid a hefty price of hundreds of thousands of dollars in fees to the government because
I didn’t have proper bookkeeping practices and because I didn’t keep my records the way
that they want it to be, and I actually paid over hundreds of thousands of dollars in fines. It’s a very, very painful experience and lesson
that I’ve learned, and I really, really do not want you to make the same mistakes, it
is something that I do not wish upon of anyone, which is the reason why this is so important. But ever since then, ever since I started
paying attention to my numbers much more, I was able to turn that around and in turn
we were able to expand our ice cream chain internationally just within three years. So, make sure you guys know your numbers. I’m gonna give you three numbers to look out
for: the first one is your rental costs, and the second one is your food costs, and the
third one is your labor costs. Rental costs should not amount to more than
15% of your revenue. So, let’s say, for example, if you are making
$20,000 in your ice cream shop, the rental costs should not exceed $3,000, this is just
a benchmark for you and as a reference for you. Number two, food costs: Food costs is basically
any direct costs that goes into producing the product that you’re serving, whether it
be preparing the mix, or the barista making the coffee, or the mix costs or the milk costs
or the egg cost or the sleeve or the packaging, any cost that goes in creating the product
is calculated as food costs, and that should not account for more than 30%, and what that
means is if your revenues are heading 20%, same example, then your food cost should not
account for more than $6,000. Something to note here is that there is a
lot of ways to help you hit this number, and it really comes down to proper management
whether it be spoilage, loss to theft prevention, proper inventory tracking: there’s a lot of
ways to control your food costs to be below 30%. The third cost is labor costs: which should
include your barista, your servers, your scooper, your cashier, and also the manager, or the
operator or you. So, if you’re working in the shop, then you
should make sure you calculate your own wage into this equation as well. So, if you are, on the same example, $20,000
in revenue, you should not be paying more than $6,000 in labor costs. A lot of people make the mistake of not putting
their own wage in the equation which at the end of the day, they’ll be making $2,000,
$3,000 and they think it’s completely fine, but in reality, this only gives you a false
reality of how your business is actually doing because you’re not putting your own wage into
the cost, it doesn’t allow you to really face the problem head on and make these minor,
minor changes and minor tweaks in order for you to maximize your profits, so you can actually
put some money in your pocket, go to the beach with your loved ones, and spend quality time
and take care of the people you care about. This is just a super brief overview of all
the costs that you should be looking out for. I dive into much more detail in this video
up here, so if you wanna know more about this topic, check this video out. Know your customers: So many businesses neglect
this fact, and they are not utilizing and maximizing their potentials because they’re
serving customers not what they want, but they’re serving customers what they think
they want. So, it’s super important for you to understand
your customers because this will help you determine the flavor, determine the interior
of the shop that you have, determine the menu It helps you with a lot of things, so, make
sure. It’s as simple as this: just ask your customers
what they want and deliver to them what they want. Number three, figure out your marketing: Oh
my goodness, with this topic, we can go for days about marketing. There’s so many different types out there
with traditional marketing, print marketing, local marketing, community marketing, digital
marketing, I can go and days with the different tactics and strategies, but for the sake of
this video, I’m just gonna go over the big buckets. I’ve utilized all of these type of marketing
techniques in order for us to grow our ice cream chain to international within a matter
of three years, so I’m super, super excited to share a lot more information about marketing
with you. One big bucket of marketing is partnership:
whether it be your local businesses or local talent or just local musicians, you need to
be able to partner with them, to grow alongside with them, leverage off their client database. You wouldn’t believe the amount of businesses
that just blend in their community. So, then even when people walk by, they don’t
even know these businesses actually do exist. With proper partnerships, you would allow
your shop to stand out amongst the many along the streets. The next big bucket is claiming your digital
real estate: This is super important to be able to control how people talk about you
online. You get to control that through your website,
you’re claiming your pages on Google business, on Yelp, on TripAdvisor, Facebook, Instagram,
any platforms that are relevant to you and that people has exposure to, you should be
able to control that, you should be able to dictate the conversations that go alongside. This is a perfect platform for people to see
how you operate, this is also a place where you get to show off your beautiful products
and the way you work. This is something that is often overlooked. If you’re a little bit more tech savvy, than
we can focus on more advanced strategies like keyword optimization, SEO, email, newsletters,
such and such. There are so many different strategies that
you can use: online marketing your business. And the next and final bucket I wanna share
with you is advertising and promotion: This is something that I’ve been contemplating
whether to share with you or not, but I feel like it’s super, super important. So many businesses out there are running promotions:
buy one get one free deals, 50% off, simply because they’re mirroring off what their competitions
are doing, not understanding why they’re doing this, and in turn, they’re losing a lot on
margins. The number one thing that you need to understand
and do before you do any marketing is alignment. This is something that I cover in my Ace Formula
Guide, which is completely free, you can download it in the link below. This is something that I follow in order for
me to be able to build my ice cream business. And I really do not want you to make any mistakes. Spend any money on advertisement whatsoever
because this concept is so important, okay? Alignment with yourself and why and where
you’re gonna go: Why are people are attracted to you? Why your ice cream shop? You need to be able to determine that, and
extract that from you. People buy into you, so alignment is super,
super important before you run any paid advertisement. The second step is connect: connect with your
customers and provide them a value, provide them a reason to follow you along your journey,
and that way you gonna be able to develop trust which is the number one thing in developing
a loyal customer fan base, okay? If you want consistent and predictable customer
stream, this is something that is super important for you to connect with your customers and
your team that helps you execute. Before and only when you have these two pillars:
alignment and connection completed and fundamentally extracted and developed, should you spend
any money on advertisement and should you move to explode which is paid advertisements
so many different strategies that we have employed, super, super useful. Before you spend any money on advertisement,
make sure you check out the ACE Formula Guide below: super, super powerful. Don’t spend any money before you check this
out. Free guide for you, my gift for you. So, as an overview, advertisement includes
Facebook ads, IG adds, Google ads, print ads, influencer advertisements and collaboration. Promotions are tactics and strategies like
buy one get one free, 50% off, 20% off, happy hour half price, so on and so forth. It is super easy to run promotions and advertisement,
but it is super difficult for you to get the results that you’re looking for which is long
term consistent revenue stream which is loyal base of customers. So, make sure you guys have the foundation
and the fundamentals right before you spend any money on advertisement. And the last bonus tip is having a loyalty
program. Having a loyalty program is not just a stupid
punch card that you buy seven you get one free because there is no engagement. The number one secret in creating a good loyalty
program is to make it fun, make it engaging, so people treat it like a game and they will
come and spend much more at your ice cream shop. Okay, by now you should have a very good understanding
on the steps that it takes, and the framework that it takes to run an open and successful
ice cream shop. As a recap, these are the three steps that
you need to be aware of and figure out before you open your shop. Number one: know your end product. Number two: know your three Yours. And number three: know your marketing. As promised, I’ve attached all the templates
and resources that I personally use to build my ice cream business. I only, really, hope you find value in them. Download them in the link below, it’s my gift
for you. I really hope you found some value in this
video. Hopefully you’re gonna be able to use the
resources to build a successful ice cream shop. Let me know in the comments, if you have any
questions or anythings you want me to elaborate on, I’ll be happy to do it. If you liked the video: If you take only one
thing away from this video, give me some support and hit the like button. Otherwise, subscribe for more free resources,
more free training. I’ll see you guys in the next video.

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34 thoughts on “How to Open an Ice Cream Shop | Advice for Small Business Owners 2019

  1. Wow this is awesome. I started a rolled ice cream shop last year! Great hearing from a successful entrepreneur in the same industry me. Thanks and I hope you keep making videos!

  2. Hey good job on the video. Ive eaten at your ice cream shop here in richmond. Im also starting out on youtube. Check out my videos when you have a moment but good job on this video !!! Keep it up !!!

  3. Great videos!! Hey I have a question. So I’m trying to opening up my own rolled ice cream stand. I need some help with finding a ice cream mix I can use. Any tips?

  4. I'm planning to start an ice cream shop in a small town. I just want spread some smiles. This video helps, thanks

  5. Very informative! I was wondering how do you know how much product to prepare for the day? Is there a rule of thumb?

  6. What is the best way to start your business when talking finances?? Did you barrow or how did you start. I’m fresh out of school and I want to start one but don’t have money.

  7. how long will the soft icecream made with machine lasts, and can you keep it in a cup, cover it and sell it after a week?

  8. Excellent advice, Wilson. I need to look into Alignment and Connection for my Ice Cream Truck business. I'm going to get the ACE Formula Guide now. Thanks!

  9. how does one start an ice cream shop with out any base cash? is there grants? Any help would be great. I have a plan and vision, just need financial backing…

  10. Great video! I'm looking to start my own ice cream business in mexico, can you give me a idea on how to start?

  11. Great vid! i have the equipment for a soft serve ice cream shop. should i create my own brand and recipes from scratch, or should i franchise from a popular local brand?

  12. Hi, i want to start ice cream business in the philippines with a twist in flavor. Can you show me how start?

  13. This is very informative. ThNks for the tips! We are planning to open up a small ice cream business and this will help me a lot.

  14. Wow. I can't belive how hard to open a ice cream shop. btw im 11 and I want to open a ice cream shop when I grow up.

  15. Thank you so much for this! It really helped me a lot. Also please make the video on how to make the ice cream. Maybe how to make soft serve?

  16. Yes bro I need to grow a big Ice cream parlour child so I want to start a new business business so you can help me out

  17. Hi, Wilson! I´m from Brazil and I sell ice cream pints since April 2018. I already know my end product, and I´m thinking to open an ice cream shop, but the equipments are so expensive. What advise can you give me? Find a partner? Get some money from bank? I work in a textile industry, but until the end of the year I´d like to work only in my ice cream bussines.

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