This article was co-authored by Miri Rodriguez. Miri Rodriguez is a Business Brand Consultant and the Owner & CEO of Be Mindful Be Happy. She has been coaching business and individual brands for over 15 years in the areas of career development, personal development, branding, and storytelling for impact. She is the best-selling author of the award-winning book Brand Storytelling. She holds a Master’s degree in Integrated Communications and Marketing from Georgetown University and various certifications including Copyrighting, Technical Writing, Design Thinking, Six Sigma, and Prosci Change Management.
This article has been viewed 27,583 times.
Having an ice cream truck business can be a great way to create your own income and to connect with customers in the neighborhood. A successful ice cream truck business can allow you to earn a decent income and teach you how to be a good small business owner. Start by creating a business plan outlining your costs and capital. You can then set up the truck and establish the ice cream truck business so it thrives and does well.
Steps
Creating a Business Plan
-
1Outline the costs of the truck. A reliable van or truck large enough for freezers to keep the ice cream cold can cost between $10,000 - $20,000. This will be the biggest upfront cost for the business.[1]
- You can try to get the van or truck used to save some money on it, though you should make sure the van or truck will run reliably.
- You can also look for a van that already has freezers in it to save on outfitting costs.
-
2Determine the cost of insurance and permits. The exact cost for insurance will depend on where you live, what vehicle you are using for the business, and your personal driving history. It may cost anywhere from $500-$1000. [2]
- You will also need a "special vendors permit" for the ice cream truck. This will depend on where you live. Usually, a vendor permit in a smaller city will be around $50-$200. In larger cities, permits may be more expensive.
- Look at local government websites for small business owners to find out the costs for insurance and permits in your area.
Advertisement -
3Factor in the cost of inventory. You should factor in the cost of ice cream in several varieties or types, such as ice cream sandwiches and bars. You may also have ice cream cones and popsicles for sale. Selling ice cream sandwiches and ice cream bars instead of ice cream from the tub may be easier to start, and cheaper.[3]
- The cost of inventory will be an ongoing cost of the business, as you will need to replenish the inventory regularly. You may start with $500 worth of stock and then replenish it as needed.
-
4Note gas and labor costs. Make sure you factor in the cost of gas, as you will likely have to refuel two to three times a week, depending on how often you drive the truck and travel with it. Take a look at gas prices in your area and budget for one to two tanks of gas every few days.[4]
- You should also consider the cost of labor. Usually, ice cream trucks are smaller enough and low stress enough to only have one person working at one time. If you are going to work the ice cream truck, the labor costs may be zero to start.
-
5Determine your start-up capital. Once you have identified the start-up costs of the business, you should think about how much capital you have access to. Maybe you have savings that you can use to fund the business. Or perhaps you will work your current job to save up for the start-up costs for the business.[5]
- You may consider asking friends or family to help fund the start-up capital needed to get the business going.
- If you are in good financial standing, you may consider Get-a-Business-Loan|taking out a business loan from a bank for the ice cream business.
-
6Create a budget for maintaining the business. The budget should cover any expenses you will need to pay for once the business is up and running. These could include day to day expenses like inventory, gas, and truck maintenance. Budget around $2500 for monthly expenses as part of your business plan.[6]
- Your budget should also factor in a projected revenue for the business. Most ice cream trucks that do well can earn $200-$300 a day, or $5,000 a month. Your revenue for the business should always be more than your expenses.
Setting Up the Ice Cream Truck
-
1Get a suitable truck. Decide which type of truck you want to buy. You may invest in a small ice cream truck that can fit one freezer or a bigger truck that can fit more freezers, and more inventory. Look online for ice cream trucks for sale. See if friends or family have a truck for sale with the right specifications that will work well for your business, such as a used van.[7]
- You can also reach out to local ice cream truck vendors and ask them what type of truck they have.
- If you are trying to cut down on your startup costs, you may get a used ice cream truck.
- Always test drive the truck before you buy it from a seller. Have an auto mechanic inspect the engine and the truck as a whole to confirm it is a good investment before you purchase it.
-
2Outfit the truck for the business. Make sure the truck has freezers to store the ice cream as well as a counter window for customers to order at. You may set up a waffle cone maker in the truck as well or have a stack of cones on hand.
- You may have a cabinet or tray in the truck for toppings and dippings that customers can access to put on their ice cream.
- You may also have a menu board, spoons, cups, napkins, and a cash box in the truck.
-
3Setup a freezer in the truck. If the truck does not come with a commercial-grade freezer. Setup one by yourself. You could contact a commercial freezer company[8] and they will make a customized freezer for your truck
-
4Get inventory. Decide how many flavors of ice cream you are going to sell out of the truck. Consider selling ice cream bars, ice cream sandwiches, and/or ice cream cones. You may offer one to three flavors of ice cream to start as well as ice cream bars.[9]
- You may choose a classic flavor like vanilla or chocolate, for example, as well as one to two unique flavors.
- You may also invest in soft serve ice cream machines if this is part of your budget and there is room in the truck.
-
5Obtain a business permit. To operate the truck legally on the street, you will need to get a business permit or license. Contact your local Department of Motor Vehicles and Department of Consumer Affairs for more information on this.
- It is not recommended that you skip this step and try to operate the business without a permit. This can lead to a heavy fine.
-
6Have a health inspection done on the truck. Before you get the truck up and running, have a health inspector come in and check the truck to confirm it is food safe. The inspector will make sure the ice cream and other food are stored properly and safely in the truck. Contact your local Better Business Bureau or Department of Consumer Affairs to find a licensed health inspector.
- You can then post the approval of the health inspector on the truck for display to let customers know that the truck has been deemed food safe.
-
7Brand the ice cream truck. Paint the truck bright, bold colors with the business name and logo. Have a professional paint job done on the truck so it is attractive for customers. Make sure you have the classic ice cream truck song set up so you can play it and let customers know the truck is on the street.[10]
- To get ideas for the branding of your ice cream truck, you may look at how other local ice cream vendors present their trucks. You can also look at popular ice cream vendors online to get ideas.
Establishing Your Ice Cream Truck Business
-
1Open during the summer season. You are going to generate the most income during the warm summer months when everyone is more likely to be outside and wanting ice cream. Though you can stay open during colder months, you will likely make less money. Plan the opening for the start of summer so you can capitalize on the weather and have as many customers at the truck as possible.[11]
- If you live in a very warm climate, you may be able to make money year round. It may matter less if you open in the summer or in the winter, especially if the weather is sunny and warm all the time.
- In warm climates, your approach should be more community-based, focusing on creating a brand and a faithful clientele.
-
2Establish a route in a neighborhood or area. Focus on a neighborhood or area that has a lot of foot traffic and is densely populated. You may begin in your neighborhood and drive around to other neighborhoods close by. Or you may go to a local plaza or outdoor area that usually has a lot of foot traffic. Stick to a regular route, as this will help customers know where you are and make it easier for them to buy from you again. Be careful how long you are committing to being in a specific location and be flexible to move around.
- Make an effort to connect with people in a neighborhood or community. This will encourage them to buy from you again and help your truck become known by word of mouth.
- Word of mouth is still extremely powerful, especially amongst the younger generation, as they talk amongst themselves all the time before they actually even consider a product.
-
3Use social media to promote the truck. Set up social media accounts for the ice cream truck, such as Instagram, Twitter, Snapchat, and Facebook. Follow other local businesses in the area and post updates to your followers on a regular basis. You can also send out information on the location of the truck to followers so they can find it easily.[12]
- Maintain an active social media presence so customers stay interested and engaged with the ice cream truck.
- If you have any specials or promotions at the truck, make sure you let your social media followers know.
- Given that you're mobile and not really consistent since you will depend on things such as location, weather, etc., make sure to always stay in touch with your customer, despite external forces.
-
4Adjust your ice cream products based on demand. Pay attention to what products are selling and keep track of this on a spreadsheet. Then, adjust what you are selling so you only offer people what they want.[13]
- For example, you may notice certain ice cream flavors are more popular than others, or that people prefer ice cream bars over ice cream cones.
- You may try adding new or interesting flavors to the list of options to draw customers in. You can also offer a weekly ice cream special to encourage customers to try new products.
Expert Q&A
-
QuestionWhat is the best way to connect with customers?Miri RodriguezMiri Rodriguez is a Business Brand Consultant and the Owner & CEO of Be Mindful Be Happy. She has been coaching business and individual brands for over 15 years in the areas of career development, personal development, branding, and storytelling for impact. She is the best-selling author of the award-winning book Brand Storytelling. She holds a Master’s degree in Integrated Communications and Marketing from Georgetown University and various certifications including Copyrighting, Technical Writing, Design Thinking, Six Sigma, and Prosci Change Management.
Business Brand ConsultantEmail marketing is still very much a thing! So, get people to give you their email, sign them up for something, and then get them to create that base contact so you can send a newsletter out or connect on Instagram. There's a way that you can build that relationship digitally so you can keep them coming back for something at the local level. -
QuestionWhat research should be done before starting a business?Miri RodriguezMiri Rodriguez is a Business Brand Consultant and the Owner & CEO of Be Mindful Be Happy. She has been coaching business and individual brands for over 15 years in the areas of career development, personal development, branding, and storytelling for impact. She is the best-selling author of the award-winning book Brand Storytelling. She holds a Master’s degree in Integrated Communications and Marketing from Georgetown University and various certifications including Copyrighting, Technical Writing, Design Thinking, Six Sigma, and Prosci Change Management.
Business Brand ConsultantUsing social media can be a great way to actually understand what your competitors are doing. What else is going on that people are talking about? What else is happening? Social media is a great way to mine helpful and relevant information. After all, everything changes by the minute!
Expert Interview
Thanks for reading our article! If you'd like to learn more about starting a business, check out our in-depth interview with Miri Rodriguez.
References
- ↑ http://foodtruckempire.com/news/income-ice-cream-truck/
- ↑ http://foodtruckempire.com/news/income-ice-cream-truck/
- ↑ http://foodtruckempire.com/news/income-ice-cream-truck/
- ↑ http://foodtruckempire.com/news/income-ice-cream-truck/
- ↑ https://www.profitableventure.com/starting-an-ice-cream-truck-business/
- ↑ https://www.profitableventure.com/starting-an-ice-cream-truck-business/
- ↑ http://foodtruckempire.com/news/income-ice-cream-truck/
- ↑ https://ancasterfoodequipment.com/true-commercial-freezers/
- ↑ https://www.profitableventure.com/starting-an-ice-cream-truck-business/