Should You Start A Snow Cone Stand – 3 Reasons to Consider

December 18, 2010 | Author: | Posted in Entrepreneurs

You can start this business with no debt

Realistically, a single stand can be opened for as little as $5,000. This is dependent on the budget and frugality of the purchaser. For 1st time entrepreneurs (on a low budget) this is is the perfect way to see if being a small business owner is for you without mortgaging your life away.

Snow cone stands are a business than can be realistically started for as little as $5,000 and as much as $20,000 depending on how thrifty an individual wants to be. If you are a 1st time entrepreneur this can be a great way for you to dip your toes in the water without spending your life savings or getting into debt.

Snow Cone Stands have a very scalable business model

As mentioned above it is possible to start a snow cone stand for a very reasonable price. $5,000 to start your 1st business is about as great of a bargain as you can possibly find. Just as many fast food restaurant entrepreneurs continue to fund new restaurants with profits from the old, the same thing can be done with snow cone stands. In fact, it’s easier with snow cone stands than with any other business I know of.

It is reasonable to make between $5,000 and 25,000 in profit in a single summer, particularly if you run the stand yourself some portion of the time (avoiding high labor costs). If you are frugal in your capital investments, then you could realistically start at least one new stand each season. With some time and experience it wouldn’t be impossible to open several each season.

The margin on a typical snow cone is over 80%

The price of a snow cone ranges from $2 to $4.50. Input costs should not cost any more than twenty to thirty cents. These include ice, syrup, cup, spoon, straw and napkin (as well as anything else directly a part of the snow cone). Fixed costs, such as labor or rent aren’t considered a Cost of Good Sold. If you purchase your supplies in large quantities then these inputs should continue to say very affordable. Gross profit should range anywhere from $1.75 to over $4 per snow cone.

For all the best info on starting your own snow cone stand head over to TheSnowConeStand.com. We are the #1 resource on the net for everything you need to know to start your own small business.

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