How to Start an Ice Cream Business in India

Narendra Kumar

23 Jul, 2019

Opening an ice cream business is a common dream. Most people with a sweet tooth have at one point or another stood in an ice cream shop, looked around at the delicious flavours and all the smiling faces, and thought, ‘I could do this.’

And why not? After all, starting an ice cream business is the perfect gig: Not only do you get to be your own boss, you get the “inside scoop” on all the newest ice cream products and flavours, and all while you become a local hero to your local community. Who doesn’t love the ice cream man? What’s more, the growing appreciation for artisanal, homemade, premium ice cream means there is an opportunity, for a small player to occupy this position in the marketplace.

This business can be extremely profitable, as long as you have researched ice cream businesses in your area and developed a Business Plan.

How to Start an Ice cream business?

Before investing in an ice cream business the owner must consider the following points:

Create a Plan

Before entering into this industry, the investor must spend its lots of time, efforts, and thoughts while framing a plan, so that no hurdles have to be faced at the time of execution. Investors have to make a sound decision whether they want to establish their business as Independent ice cream parlour, Franchise, Specialty ice cream shop or an ice cream truck or stand. In what form they want to register their entity either as a Sole proprietorship, partnership or a corporation. They have to do a complete study of their competitors, target market and about their design and style which should be unique.

Discover Earning Potential

Earning potential depends on how the store does. If the applicant runs an independent store, can set prices and margins as high as they desire, but if the product doesn’t meet expectations in comparison to prices, then the business would not be able to sustain in long run.

But in case if you are running any Franchise, then the margins are already set and you can check with the franchise only for expectations.  After deducting operating costs and franchise fees, a store owner can still expect to make a comfortable yearly salary.

Set a budget

The cost indulged in opening an Ice cream business, depends upon the business structure which you are opting. Basically, the costs for equipment and inventory would make the starting of this business expensive. But there are several ways to reduce the cost of lots of loan and financing options is available, can also take over the lease payments of the closed option.

Decide which product to offer

The decision regarding the offering of the product depends upon the kind of store you want to be. If you pick some speciality, then you can offer a product to a small group of people and builds trust and loyalty and can charge higher margins for your speciality product.

The decision of a location

The decision regarding the choice of location totally depends upon the kind of business model which they are opting as per their budget.

Search of Suppliers

The decision regarding the supplier with whom you are going to purchase your equipment wholly is the decision of owner as per their budget but the only thing to be taken care that they should comply with all health and sanitation regulations.

Promote your ice cream business

The customer is the main thing for the success of the business. So you can promote your business by taking the help of social media, digital marketing, and providing the free scope of ice creams in your target market or in any other ways in order to capture the place among the people.

Create a Staffing Plan

The hiring of trustworthy employees helps in making your ice cream store succeeds. In case of franchise option no need of worry, because most offer training both at their headquarters and in-store but in case of independent business, the owner themselves has to create a training plan for making uniformity in the actions of all employees.

Registrations and licenses required for Ice cream business

Following registrations and licenses are required to set up an ice cream business:

Company Registration

Entrepreneurs incorporating an ice cream manufacturing unit have to register either as a private limited company or Limited Liability Partnership (LLP). The manufacturing unit in which the investment in plant and machinery does not exceed Rs.10 crores has to obtain MSME registration.

FSSAI Registration

For any ice cream manufacturing business, it is mandatory for the owner to apply for the FSSAI License. Whether they fall under the purview of the Central Government or State Government depends upon diary processed capacity.

GST Registration

In case of the ice cream manufacturing business, it is mandatory for the ice cream manufacturing unit to obtain GST registration for the sale of ice creams.

Do’s and don’ts of Ice cream business:

The applicant has to take into view all do’s and don’ts before investing in this industry and making a fruitful business as are explained below:

Dos of Ice cream business:

1. The investor must have enough capital;
2. Must have a good location;
3. Must be clear about their concept whether they want to pursue shake concept, ice cream concept or combination concepts.
4. Fast Growth and high revenue
5. The investor is free to make their own business.

Also, Read:

Learn About Food Processing Industry

Don’ts of Ice cream business:

1. Don’t listen to everyone; try to understand the difference between actual useful advice and verbal advice.
2. Don’t take shortcuts; follow through on every item throughout the entire process.
3. In the case of the ice cream business, their equipment is a key to the quality of their product it’s better to buy it from the right company instead of making the internet as a buying source.