Starting an ice cube business can be lucrative, especially if you learn to manage it properly and market it well. However, it can quickly become overwhelming as there are many competitors in this industry.
There are many ups and downs for those who are looking at the idea of selling ice because it is a seasonal business as ice is most in-demand during the warm and festive season when parties and events are being organised.
And what’s a party without a refreshing cocktail with ice as the main ingredient.
To succeed in this business, we have put together a small guide below that can help you get started the right way.
Do Your Research
In the initial stages of establishing your own ice cube business, you should write down your business idea and what you are striving for—your goals and what strategy you should use to realise them. This type of business plan is useful to have both for yourself and other stakeholders of your business.
As a rule of thumb, your business plan should include an in-detail description of the services you are going to sell, a rough estimation of how much you will sell, an estimated budget of the company’s income and expenses, and an overall description of your target market.
A business plan is like a roadmap that will help you focus on your goals and give potential investors assurance that you are moving on the right track. If you find writing a business plan challenging, you can use a small business plan template that will help you create a plan containing all the important points.
Decide on a Company Name
A basic step in starting an ice cube business is choosing a name for the business that will make sure to grab the attention of potential customers and convey what your company does.
When choosing a company name, there are some rules that you must follow. For example, make sure not to take a name similar to that of an already established business in the same industry. You can use online search services to find out if the name you want is vacant or already registered by another business.
Pick Your Location
The location where you will start your ice selling business will give you an idea of how profitable it can become. Bear in mind that ice cube businesses mostly flourish in densely populated areas with a history of poor power supply. When choosing your ideal location, make sure to establish your business near an area where there is access to clean water.
If by any chance, you make a mistake in choosing the location, you will most probably battle to persuade people to buy your product. For this reason, a great first step is to target stadiums, and commercial centres, but whatever you choose, ensure that the location is certified as food-safe by your local department of health.
Think of Budget Needs
The budget that is part of your business plan, shows you how much you have to earn to be able to run your ice cube business profitably. To determine if you have the necessary financial means, you are advised to carefully analyse your budget since you will need to invest in ice-making machines to keep up with the demand, especially if you’re planning to supply restaurants and other similar establishments.
After a good budget analysis, you may conclude that you need a business loan, which is completely normal when starting a new business. External financing is usually provided by a bank. Keep in mind, however, that it costs money to take out a loan—a cost that should be included in the company’s budget. When approving a loan, the bank may require collateral in the form of savings capital, housing, or a guarantor.
Once you decide on how you’ll fund your businesses, take care of the legalities and secure necessary documents. Ask your local county office about the requirements and obtain them.
An ice cube business is an excellent business venture although at first, it may seem complicated.
The steps presented in this article are intended as a guide when trying to build your business from the ground up and trying to figure out how to run it effectively. Start by writing a solid business plan, stay focused, be patient, and soon enough you will see your business moving forward.