What you Get With Shaved Ice Beverage Business Plan Package
| 6 Chapter Business Plan Template in MS Word | Free Pitch Deck Template in PPT |
| 5 Year Financial Model Template in MS Excel | Free Financial Dashboard Template in MS Excel |
| Immediate Download After Purchase | MAC &PC Compatible, Unlocked, NO VBA Macro |
| Bank/Investor/Grant Ready Package | No Accounting Or Financial Knowledge Needed |
I.- Executive Summary
Problem
Chicago's current dessert options lack the appeal and excitement of enjoying a creative, customizable, dessert-like shaved ice beverage. There is an identifiable need for a unique, experiential aesthetic to be combined with high-quality, flavored shaved ice beverages. From traditional fruit syrups and bubble tea-inspired options, to coffee-based and boozy-infused treats, Snowy Spin will provide an alternative dessert selection that sets itself apart from the usual. The shop atmosphere, flavor selection and topping options will also provide an elevated experience for customers, fulfilling an undeniable market need.
Solution:
Snowy Spin seeks to provide a unique, immersive experience for its customers. Our products, services, and atmosphere all make up a delightful, delicious and refreshing experience. We specialize in customized, dessert-like shaved ice beverages, making use of high quality Italian and American commercial ice shavers to bring a wide selection of flavors that are traditional, bubble-tea inspired, coffee-based, and boozy-infused. To create a truly unique experience, we provide a wide selection of topping options, such as flavored mochi, cereal, sprinkles, and ice cream. Additionally, our aesthetic and atmosphere are designed to enhance the pleasure of enjoying Snowy Spin beverages.
Target Market
At Snowy Spin, our target market is customers of all ages who have a sweet tooth and a desire for unique and fun beverage experiences. We are targeting families, college students, professionals, and other age groups who are looking to enjoy a delicious and refreshing iced treat. Our target demographic is looking for a customizable shaved ice beverage accessible to them at the click of a button. Our premium, high-end products and aesthetic appeal to those in need of a high-end refreshing iced treat. Our options are also catered to those seeking to indulge in classic and innovative flavors and toppings.
Competition
The competitive landscape for Snowy Spin's specialty shaved ice beverages consists of a variety of businesses offering alternative treats. These include traditional ice cream shops, frozen yogurt parlors, bubble tea shops, coffeehouses, and other shave ice stalls. While the majority of these businesses use syrup-based flavors and toppings, the art of creating our unique, gourmet-style shaved ice drinks requires the use of high-grade ice shavers and flavor infusions not offered at other establishments. As our product line offers a unique and creative twist on a classic treat, we believe our customers will be drawn to our offering as an alternative to the existing options.
Financial Summary
Snowy Spin aspires to become a profitable business venture by offering highly customizable, dessert-like specialty shaved ice beverages. To ensure the success of the business, we have created a comprehensive financial plan that encompasses the following highlights:
- The total estimated cost of the equipment, supplies and initial investments necessary to start our business is approximately $50,000.
- We anticipate our monthly sales to reach $30,000 in year 1, then double to $60,000 by the end of year 2.
- We estimate our total expenses to be approximately $27,500 per month, with the majority of expenses attributed to labor, rent and supplies.
- We anticipate achieving a gross profit margin of 65%, resulting in a net profit of $2,500.00 per month or 30% of our total sales.
Funding Requirements
In order to launch and grow Snowy Spin, we will need a total startup capital of around $50,000. This funding will be used to:
- Purchase high-quality Italian and American commercial-grade ice shavers
- Secure necessary permits and permissions
- Rent and renovate a suitable premises for business operations
- Stock up on core ingredients, supplies, and equipment
- Hire and train a team of staff
- Launch a comprehensive marketing campaign
Once we receive the necessary funding, we are confident that Snowy Spin will be a success.
Milestones and Traction
Snowy Spin is currently in development phase, with the goal of launching the business in Q2 of 2021. We have secured a high-quality Italian and American commercial-grade ice shavers and are engaging with local suppliers for desired flavors, toppings, and other related ingredients. Additionally, we have an experienced and well-trained team ready to take on various tasks such as operations, marketing, and customer service.
To ensure a successful launch and long-term success of Snowy Spin, we have identified key milestones that guide our plan. These milestones will allow us to measure our progress and will ensure that we remain on track to reach our goals. Milestones include launching the business, reaching a certain number of customers, and expanding our offerings. We are confident that by successfully meeting our milestones, Snowy Spin will become a leading provider of unique and delicious shaved ice beverages.
II.- Products & Services
Problem
Shaved ice beverages have been rapidly increasing in popularity, but there is a lack of quality outlets offering an expansive selection of both classic and new flavors. Customers who seek interesting and unique options often have to settle for traditional flavors for convenience or taste. By introducing Snowy Spin to the Chicago area, customers can get a unique and refreshing experience with a one-stop shop for customizable dessert-like shaved ice beverages.
Solution
Snowy Spin offers a unique solution for providing sweet, icy treats with a customizable twist. Our goal is to provide an enjoyable experiential atmosphere for customers to enjoy their beverage, in addition to the beverage itself. We offer a wide selection of flavors that can be personalized to each individual customer. Our product selection includes traditional fruit-syrups, bubble tea-inspired flavors, coffee-based options, and boozy-infused options.
Our finely-shaved snoballs and light and fluffy snow cones are made from high-quality Italian and American commercial-grade ice shavers. Topping options include flavored mochi, cereal, sprinkles, and ice cream, and our soft glowing-neon lighting creates a warm and inviting atmosphere.
At Snowy Spin, we believe in offering a unique, customizable product experience in the form of icy-cold treats that are sure to satisfy all customers’ cravings. We are committed to providing an uncomparable experience, setting ourselves apart from the competition and forming meaningful connections with our customers.
Validation of Problem and Solution
It has been found that consumers are increasingly looking for better-for-you desserts, snacks and beverages. This healthy yet flavorful trend has shifted the demand from traditional ice cream and frozen yogurt to alternative dessert options, such as acai bowls and shaved ice. Moreover, the rise of social media has also been an influential factor in the growth of these modern dessert varieties. As shown in surveys conducted by the National Restaurant Association, nearly 60% of Americans are willing to pay more for frozen desserts that are healthier and more innovative.
The opening of Snowy Spin can offer a differentiated experience with the implementation of our customizable, dessert-like specialty shaved ice beverages. With high-quality ice shavers and a wide selection of flavors, toppings and boozy options, our cafe can provide customers with a unique and memorable experience that exceeds their expectations. Furthermore, our commitment to creating an experiential aesthetic and atmosphere can attract customers and propel our business forward.
Product Overview
At Snowy Spin, our mission is to offer a delightful and unique experience when it comes to shaved ice beverages. We specialize in creating customizable shaved ice beverages that are inspired by a variety of flavors, ranging from traditional fruit syrups to exotic bubble tea and boozy infusions. Our high-quality Italian and American shavers allow us to serve light and fluffy snow cones as well as finely shaved slushy snowballs. On top of the fruity shaved ice, customers can opt for an array of exciting and inventive topping options such as mochi, cereal, sprinkles, and even ice cream!
Snowy Spin's custom shaved ice products are perfect for people who are looking to cool down with a tasty and refreshing treat. We strive to create a unique aesthetic and atmosphere that adds to the overall appeal of enjoying a Snowy Spin.
Competition
When it comes to the competitive landscape of shaved ice beverages, there is a plethora of options across a variety of outlets, including local shops and national chains. However, most of these current offerings focus solely on traditional shaved ice and syrup flavors. Snowy Spin will stand out in the competitive marketplace by offering more unique specialties that are not just about the ice but about the complete experience. We will utilize exceptional ingredients, creative flavor combinations, and unique topping options to provide customers with a unique sensory experience.
Furthermore, Snowy Spin will also differentiate itself through our use of high-quality Italian and American commercial-grade ice shavers, allowing us to ensure a consistent and satisfactory quality of product that not all of our competitors can offer. In order to keep up with the specific trends in taste and demand, we will also regularly introduce limited-edition flavors to keep our customers interested and engaged.
Roadmap
We have laid the groundwork for our business plan by investing in high-quality Italian and American commercial-grade ice shavers, which give us the capability to serve both finely shaved snoballs and light/fluffy snow cones. We also have a plan to create an appealing atmosphere and aesthetic while guests enjoy their Snowy Spin. To do this, we will offer a wide selection of flavored syrups, bubble tea-inspired, coffee-based and boozy-infused shaved ice options, as well as unique topping options, such as flavored mochi, cereal, sprinkles and ice cream. We are also looking into various operating procedures, such as health and safety procedures, marketing, and developing a team of trustworthy and helpful staffers.
Future steps will also include building an online presence, such as a website and social media accounts, as well as expanding our customer base and delivery reach. We plan to invest in research and development for improved beverages and accompanying add-ons and will be continuously assessing and measuring our customer satisfaction and response. Finally, we have an action plan laid out to increase brand awareness and build a loyal customer base.
III.- Market Analysis
Market Segmentation
In order to best identify which customer groups are most likely to be our target audience, we have segmented our market into the following groups:
- Adolescents: Adolescents between the ages of 12-17 are our prime target. The appeal of a tasty and refreshing shaved ice dessert will provide an exciting break from the monotony of their school days.
- Young Adults: Young adults between the ages of 18-24 are also potential Snowy Spin customers. They often seek out new food and drink experiences, which makes them a great target for our offerings.
- Middle-Age Professionals: Middle-age professionals between the ages of 25-49 are great candidates to become Snowy Spin customers. Many of these adults enjoy a semi-indulgent treat in their hectic everyday lives and seek out experiences that allow them to relax and have fun.
- Seniors: Seniors over the age of 50 are our final target market. Many of them search for meaningful experiences and become loyal customers of places they particularly enjoy.
All of these segments present opportunities for Snowy Spin to reach and effectively serve our target market. By focusing on these specific customer milestones and psychographics, we will be able to create customized marketing campaigns designed to reach the target audiences most likely to become customers, leading to increased awareness and sales.
Target Market Segment Strategy
Our ideal customer is someone who enjoys a refreshing beverage in the summertime. This could include a broad range of demographics, but our primary target market is people aged 16-34 who live in urban areas. Our range of delicious and innovative shaved ice beverage flavors appeals to this demographic because it offers a fun, modern, and exciting way to beat the summer heat. Additionally, our products offer convenience and affordability, which further appeals to the younger demographic.
We believe that the current shaved ice beverage market lacks meaningful innovation, making us even more committed to creating an exciting and memorable flavor experience. Our target market embraces the idea of creating new and interesting flavor combinations that make our products stand out. Through extensive market research, we found that our unique flavors are well received and are a perfect way to provide a fun, yet affordable summer experience to our customers.
Key Customers
Our ideal customers are those that appreciate an exotic and unique frozen beverage experience. Our target demographic consists of health-conscious individuals and people who are looking to explore a new, unique treat. Our main advocate will be young millennials who are open to trying something new and exciting. They tend to value sustainability and quality, characteristics that our business embodies. They also tend to be social media minded, making them a great conduit to spread the word about our fresh and revolutionary products.
Future Markets
Based on the research evaluated in the sections above, there is a large potential market for our shaved ice beverage business. With an increasing appreciation around the world for unique and varied drinks and desserts, our business plan provides a unique answer to satisfy the public’s growing appetite. Our proposed strategy focuses on targeting both niche and mainstream markets, with a product that provides a low-sugar, light and refreshing alternative to classic drinks and desserts. In this way, we are able to position ourselves in a unique competitive space, and appeal to a wide variety of customers. Additionally, our business model is built around sustainability and eco-friendly production practices, which will help further our reach and increase brand recognition.
Competition
In order to provide our customers with the highest quality of service, Snowy Spin will strive to stand out from the competition. In Chicago, there are over 15 competitors that offer shave ice, with several having a local presence. A table detailing potential competitors is shown below:
| Name | Location | Products/Services |
|---|---|---|
| Filippo's Shaved Ice | Chicago, IL | Specialty frozen treats such as Snow Cones and Italian Ice. |
| Snow Flurries | Chicago, IL | Wide selection of flavorings to put on traditional snow cones. |
| Snowy Delights | Chicago, IL | Creative combinations of different flavors, including alcohol-infused ice. |
The table above shows three potential competitors in the Chicago-area for Snowy Spin. Each competitor offers unique products and services, and it is important to understand their strengths and weaknesses. In order to remain competitive, Snowy Spin should focus on creating a unique yet authentic experience and product in order to stand out among its competitors.
IV.- Marketing and Sales Plan
Marketing Plan
Snowy Spin plans to utilize a combination of digital and traditional marketing strategies to reach the target audience. After all, the overall goal is to create an experiential and memorable experience of enjoying a Snowy Spin!
To ensure maximum exposure and reach, we will invest a portion of the budget into both organic digital marketing, such as website design and development, as well as paid digital marketing, such as pay-per-click campaigns (Google/Facebook/Instagram Ads), social media ads, influencer marketing campaigns, and email marketing. For traditional marketing, we will utilize geofencing, targeted radio and TV ads, billboard/public transportation ads and other opportunities for local promotion.
The general goal is to create an all-encompassing marketing plan that reaches beyond the Chicago area. The expectation is to increase awareness and excitement, leading to higher sales and higher ROI. We plan to track our marketing efforts and analyze results on a regular basis to ensure that the strategies are working and to adjust if needed.
Sales Plan
Given the current market conditions, our pricing strategy, and other factors, we anticipate that our shaved ice beverage will be in high demand. We plan to capitalize on that demand by confidently setting our sales goals. We project that our total sales will reach 1,000 units in year one and will double the following year.
Our consumer-focused approach will be centered around customer outreach, engaging with existing customer bases, and social media promotion. We plan to use events and in-person tastings to engage new customers and will utilize focused Facebook and Instagram campaigns. We believe this method will be successful in deepening understanding of our product and therefore driving sales.
Location and Facilities
Snowy Spin will be located in the heart of Chicago, IL. We believe that this is an ideal location for many reasons. Not only is the city a thriving tourist destination, but its warm-weather climate will make it perfect for enjoying a cold, refreshing shaved ice beverage year-round. Furthermore, the city’s wide array of festivals, events and attractions will provide natural exposure for our services and products.
The shop itself will occupy roughly 600-700 square feet of space in a small but active shopping/dining district. This location will provide us with an ample amount of foot-traffic and exposure. We plan to invest a moderate amount of capital into the store's aesthetic, including bright colors, wood and tile furniture and decorations, and of course, our trusty ice shavers. This will be the perfect atmosphere in which customers can enjoy a Snowy Spin!
Technology
Our business is defined by the innovative technology that we plan to use in its operations. Our goal is to leverage technology in order to make our shaved ice beverage business more efficient and profitable. We are currently exploring options for software and equipment that will be used to reduce cost and eliminate waste in our production processes. In addition, we are exploring options for automating our customer service and sales processes. We believe that the use of technology will be a major asset in helping us to compete in the marketplace.
Equipment and Tools
In order to run our shaved ice beverage business, we will need to purchase or rent the necessary equipment and tools. This includes items such as a commercial-grade shaved ice machine, other food preparation tools such as ice shavers, blenders, scales, and other storage containers, a checkout counter, cash registers, POS systems, and other materials for both setup and marketing. Below is an outline of the required equipment and tools and the cost associated with purchasing or renting them.
| Equipment/Tool | Cost to Purchase | Cost to Rent |
|---|---|---|
| Commercial-Grade Shaved Ice Machine | $2,500 | $200/month |
| Ice Shavers/Blenders/Containers/Scales | $200 | $25/month |
| Checkout Counter and Cash Register | $400 | $75/month |
| POS System | $600 | $100/month |
| Marketing Materials | $100 | N/A |
V.- Management and Organization
Organizational Structure
The organizational structure of the shaved ice beverage business will be flat with a few key positions. The following table outlines the structure, as well as the expected roles and responsibilities of each position. Additionally, the flow of information between the levels of the organization is also identified in the table.
| Position | Roles & Responsibilities | Flow of Information |
|---|---|---|
| CEO | Set goals and strategic focus, budget management, overall financial management | Downward |
| Operations Manager | Inventory and supply management, customer service | Upward and downward |
| Marketing Manager | Marketing strategy, product promotion | Upward and downward |
| Accountant | Financial reporting, financial analysis | Upward |
Management Team
We anticipate recruiting a team of highly skilled and experienced individuals for the top management roles. The following table provides a list of potential candidates that we envision taking on these roles:
| Position | Name | Expertise |
|---|---|---|
| CEO & President | John Doe | Expert in beverage-industry operations, finance & administrations |
| CMO | Jane Doe | Expert in marketing & sales |
| CTO | Susan Doe | Expert in product development & research |
Management Team Gaps
We are currently lacking the necessary personnel to adequately run our Shaved Ice Beverage business. This means that we have several positions, or areas of expertise, that we currently do not have candidates ready to fill those roles. These roles and areas of expertise include:
- Accounting
- Human Resources
- Marketing
- Product Development
The lack of personnel in these roles necessitates a comprehensive recruitment drive to find qualified individuals to take on the responsibilities.
Personnel Plan
A key element of success for our shaved ice beverage business is having experienced, highly-skilled personnel in place. We have identified a number of positions that we anticipate needing to effectively operate our business. This table outlines the potential positions and their necessary qualifications:
| Position | Qualifications |
|---|---|
| Chef | At least 5 years of culinary experience and a culinary degree preferred. |
| Server | At least 2 years of serving experience and basic customer service and hospitality skills. |
| Bartender | At least 2 years of bartending experience, knowledge of alcoholic beverages, and ability to mix drinks. |
| Manager | At least 5 years of restaurant/catering management experience, superior customer service and people management skills. |
Company History and Ownership
Snowy Spin was founded in 2020 with the mission to provide a customizable, dessert-like specialty shaved ice beverage experience. The idea for the company stemmed from a desire to bring a unique twist to the classic snow cone. The concept for the business began to take form and our founders, Jake and Charlie, started crafting the vision for Snowy Spin.
The team at Snowy Spin is passionate about bringing a unique take on the classic snow cone. We want the experience of getting a Snowy Spin to be just as enjoyable as the beverage. We strive to create an atmosphere that adds to the overall appeal of enjoying one of our delicious snobbals and light, fluffy snow cones. We are also conscious of our selection of flavors and toppings, opting for high-quality ingredients and creative options such as flavored mochi and cereal gems.
Snowy Spin is committed to providing a safe and enjoyable experience to all of our customers. We take pride in being an independently owned and operated business, offering the highest quality of products and services.
Milestones
A key part of our business plan includes a detailed roadmap of specific goals and objectives that we plan to achieve. This roadmap will help us effectively manage and steer our shaved ice beverage business. The following table presents the various milestones we will work to adhere to in order to reach our vision:
| Milestones | Timeline |
|---|---|
| Identify & secure partnerships with beverage sellers/distributors | 3 months |
| Develop operational plan | 2 months |
| Set up ordering system | 1 month |
| Launch shaved ice beverage business | 2 months |
Key Metrics
Key performance indicators (KPIs) help measure the overall performance and health of a shaved ice beverage business. To ensure success, it is important to identify and track the following key metrics:
- Revenue Growth: Businesses must track their total revenue to determine the success of their business operations. This metric helps evaluate how customers are responding to the products and services offered.
- Cost of Goods Sold: This metric helps to determine the profitability of the business and tracks how much is spent to provide goods and services.
- Market Share: Tracking the percentage of the market that the business holds can indicate the growth and success of the business's market presence.
- Customer Satisfaction: Gathering customer feedback through surveys and reviews is essential to analyzing customer experience and satisfaction. This should help in making necessary improvements.
- Employee Retention: Employee retention is an important indicator of success, as it reflects the business's commitment to fostering a supportive and productive work environment.
What you Get With Shaved Ice Beverage Business Plan Package
| 6 Chapter Business Plan Template in MS Word | Free Pitch Deck Template in PPT |
| 5 Year Financial Model Template in MS Excel | Free Financial Dashboard Template in MS Excel |
| Immediate Download After Purchase | MAC &PC Compatible, Unlocked, NO VBA Macro |
| Bank/Investor/Grant Ready Package | No Accounting Or Financial Knowledge Needed |
VI.- Financial Plan and Metrics
Sales Forecast
The sales forecast for the shaved ice beverage business for the next three years is detailed in the table below.
| Year 1 | Year 2 | Year 3 | |
| Sales | $150,000 | $200,000 | $250,000 |
The sales forecast is conservatively estimated, considering the existing customer base and industry trends. This forecast assumes that there will be no significant changes in competitive pressure or the macroeconomic environment.
Shaved Ice Beverage Financial Plan Key Inputs
Expenses
The following tables outline the expected costs needed to start and continue operating the shaved ice beverage business. It is important to have adequate capital to cover startup costs and to be mindful of ongoing expenses.
Startup Costs
| Item | Cost |
|---|---|
| Shaved ice machine and related supplies | $4,000 |
| Beverage ingredients | $500 |
| Van for mobile service | $15,000 |
| Promotional materials and signage | $200 |
| Insurance | $700 |
| Permits and licenses | $250 |
| Startup miscellaneous | $150 |
| Total startup costs | $20,900 |
Operational Expenses
| Item | Cost |
|---|---|
| Consumables (cylinders, paper products, etc.) | $200/ mo. |
| Van maintenance | $500/ mo. |
| Advertising and promotion | $250/ mo. |
| Insurance | $100/ mo. |
| Employee wages and taxes | Variable |
| Accounting and legal costs | $100/ mo. |
| Office supplies | $50/ mo. |
| Misc. expenses | $50/ mo. |
| Total operational expenses | $750-2000/ mo. |
Financial Plan
This part of the business plan is where you present the three main financial documents of any startup: the income statement, the cash flow statement, and the balance sheet. The income statement will show the expected revenues from sales of the shaved ice beverages minus expenses. The cash flow statement will provide an overview of when known inflow (e.g., funds from investors and from sales) and outflows (e.g., purchasing of ingredients, lease payments) occur. The balance sheet will provide an estimate of the total assets and liabilities of the business at the time of formation, as well as an estimate of how much capital is required to make the business operational.
The financial plan should include financial objectives and expectations of the business, along with assumptions used in the plan. These assumptions should be reasonable, based in market data and research, and be able to be backed up with evidence should the need arise. Additionally, the details of how the business will reach its objectives should be provided. This may include marketing strategies and/or cost savings projected by the business.
Shaved Ice Beverage Financial Plan Profit & Loss Statement
Shaved Ice Beverage Financial Plan Cash Flow Statement
Shaved Ice Beverage Financial Plan Balance Sheet Statement
Personnel Plan
Our personnel plan outlines how, and who we intend to hire, along with the compensation and how employees will fit into our business operations. We plan to hire employees who have knowledge and expertise in the beverage industry as well as experience in operating and managing restaurants. We will need employees to manage the daily operations of the restaurant, prepare and serve the shaved ice beverages, take customer orders, and manage inventory control.
We plan to begin with a small team of four employees - two baristas, one restaurant manager, and one inventory manager. We will be offering competitive salaries along with additional incentives such as bonuses, paid time off, and healthcare benefits. Furthermore, we will invest in ongoing training, as well as professional and personal development to help our staff reach their full potential.
As our business grows, we plan to gradually increase the number of employees so that we can adequately serve our customers and manage the daily operations. We expect that our employees will be our greatest asset and will be the key to the success of our business.
Capital Requirements and Use of Funds
The capital requirements for our shaved ice beverage business plan reflect the total funds needed to start and operate our business. We have identified and estimated the amount we need for operational expenses, capital investments for equipment and procurement of facilities, marketing costs, research and development costs and working capital requirements. Outsourcing some of these costs such as marketing and R&D helps to reduce the amount of capital that needs to be raised.
We plan to use the funds we raise to cover our initial expenses, cover any unexpected expenses, grow our operations and develop new products. We will track our expenses regularly to ensure that the funds are being spent appropriately and that our expenditures are in line with our capital requirements. We welcome the opportunity to discuss our capital requirements in detail with potential investors or lenders.
Exit Strategy
As the owner of the Shaved Ice Beverage Business, our goal is to generate a significant return on investment. After a number of successful years of operation, when the time comes, we plan to exit through either acquisition or selling to another party. Additionally, our exit strategy could include passing the business down to a family member or employee who has gained experience and knowledge while working in the business.
