Everything you need to help start your own seasonal mobile ice cream van business for free. Useful business advice, help, ideas and tips
to get your new business started.
START UP A MOBILE ICE CREAM BUSINESS
STEP1. PLANNING
Business plan and cash flow planning
continued For demonstration purposes lets assume that your £1,152 sales are made up
of £700 worth of ice creams @ 90% gross profit and £452 of other related
products with an average gross profit margin of around 40%. Your calculations
will need to be done slightly different and as you can see from the figures
below the overall net profit has been reduced considerably.
£700 ice creams x 90% = £630
£452 other products x 40% = £180
Total gross profit = £810 x 26 summer weeks = £21060 - expenses £7,800 = £13,260
net profit.
A way to work around this problem could be to increase the price of the ice
creams to help compensate for the lower profit margins on the other products you
sell, but ideally those other products should be sold in addition to your main
ice creams sales and not make up too large a part of your overall sales
figures.
But why do we need to prepare a business cash
flow plan? Two reasons mainly, one is to teach yourself business basics, if you
don't understand or grasp the difference between turnover, gross profit and net
profit and how to get to those figures then maybe running a mobile ice cream or
any business is not really for you. Secondly if you are trying to raise capital
to purchase an ice cream van or ice cream equipment perhaps from a bank you need
to demonstrate to the bank that you understand your business, how it works and
project expected profits to repay any borrowing.
If you have an unbiased view or tip regarding a product, piece of machinery, on any page within our business start up area, here's your chance to let everyone know and read about it.