$4,000/Month Passive Income
Selling Ice Cream
People love ice cream, which is why the sound of an ice cream truck approaching always gets people excited at the prospect of sampling these beloved treats. But did you know that there is quite a bit of passive income to be made off the ice cream selling business? Some ice cream trucks make well over $1,000 a week selling these frozen delicacies.
Can you make passive income selling ice cream? You can make passive income selling ice cream. The food truck business is on a roll, and selling ice cream has yet to lose its edge. Therefore, this is a business you should give a shot if you think you have what it takes to sell ice cream to make passive income.
It does not take much effort to start an ice cream selling business. Many people simply get trucks and drivers to take them around selling the product to customers. Based on the kind of ice cream they are selling, and where the business is located, many people are able to make at least a few thousand dollars every month selling ice cream.
1. Finding a Profitable Right Niche Market
Many factors come into play when you want to start an ice cream business. You have to consider them carefully to have a successful business. For instance, you need to take a look at the sort of competition you are up against. You also have to consider what your margins will be like and how seasons might affect your business.
Clearly, if you sell ice cream in an area with tropical climate, your ice cream business will be less seasonal than when doing the same business in places with harsh winters. Also consider if you have access to neighborhoods with young families and small children, as this is the primary ice cream market. Richer areas with higher incomes will also be more enticing and provide better ROI.
Another important factor is community, you will probably sell more if there are many outdoor events in your area such as summer sporting events (soccer, baseball etc), outdoor concerts, local gatherings and events. These types of events can provide a stronger market. You might also consider operating your business in highly dense areas so that your truck does not have to travel long distances, which will increase its repair costs and even increase fuel costs. However, if you are in an underpopulated, rural area, you may not want to embark on this business.
2. Considering the Benefits and Requirements
You also have to consider the kind of margins you can get off your products. Reasonably speaking, you can make profits of well over 50% if you are able to purchase raw materials in bulk. However, you might have to offer less flavor choices to enjoy these enticing margins on the product. Starting an ice cream business has the following benefits:
Fairly low start-up costs: Compared to most businesses the startup costs are fairly low. You can always buy a used ice cream truck and used freezers to stock products.
- Low operational costs: Operational costs are low since the product does not spoil fast and you only need one employee to keep the business running.
- Highly popular product: Ice cream is very popular among all sections of the population, which means this business has a lot of potential.
- Excellent margins: Ice cream has very good margins, and you can easily get a 100% return or more on some ice cream products.
3. Meeting The Necessary Legal Requirements
4. Choosing The Right Products
Before getting started, consider the kinds of people you are selling your ice cream to. Even though everyone likes ice cream, the flavors that children prefer are not the very same flavors adults would like. Therefore, if your target market has more adults than children, you would have flavors that are more appealing to this segment of the market and so forth.
Offer vegan and lactose-free products to appeal to more people. Not only are these highly popular and trending food products, they are sometimes actual allergic obligations for some people to be able to join in on the iced fun. Make sure to appeal to a broader audience with products that are friendly for more people. However, try to limit the number of choices you offer as more choice means more stock to manage and can make serving customers more complex. Keep things simple and clear when offering choices to clients.
Make more money and save time by selling products that are already prepared. If your employees have to scoop ice cream on a hot day in the truck, this will be longer and more complex than just serving ready ice cream or soft-serve. Longer service will keep customers waiting and may make some leave. The ice-cream may also melt and make cleanup more difficult. Keep these things in mind when deciding what to sell.
5. Promoting Your Business & Making it Passive
Advertising your business can be a great way to get more customers and make more money. Today, you can do this on social media. Instagram is a great place for ice cream businesses to promote their products. Your Instagram handle should have a very visible on your truck with a hashtag for your business if you want. These will entice people to share their treats and fun moments created by your business on their social media accounts and will help your business get known in your area. But always remember, the best way to promote your business is to offer your clients high quality products and services.
Flyers can also work. You can put them up around town so people can learn about your business and routes. On top of that, you should be at special events with lots of people so that you can get significant boosts in your income from time to time. Having a calendar of social events in your area should be a given if you want to make the best of this business.
Making this business passive is fairly easy. As long as you find someone you can trust to run the business, you can be good to go. You can offer to pay them a commission based on the sales they make, which will give them a greater motivation to sell more and find the best opportunities for the business.
How Passive is Selling Ice Cream?
Granted, there are not many risks associated with running an ice cream business. If you do your homework before getting into this line of work, your chances of meeting with any nasty surprises are significantly reduced. In any case, you don’t have to invest a lot of money to get into this line of business, which is obviously a huge plus for most people in search of a passive income source.
Risks may be related to food issues (allergies, poisoning etc) so you do need good insurance coverage. There are also risks of running out of product so it’s important to have a good balance of available stock. Consult a local lawyer for more information related to risks.
Return on Investment
What kind of equipment does an ice cream selling business require? In addition to the truck and refrigeration appliances, you will need a cash register, cash machine, POS system, music box, amplification system, napkins, and specialized equipment like spoons and scoops if necessary.
Is there a cheaper way to sell ice cream than from a truck? If you think an ice cream truck might be too expensive to start, you can always set up an ice cream kiosk, preferably in an area that gets enough traffic to make a profit from time to time. But you would have to pay monthly rates for that space.
How much money can you make selling ice cream? In some markets, ice cream trucks make between $200 and $300 a day. That means some ice cream trucks provide returns of over $5,000 a month. Even when you have to pay an employee to earn from this business passively, you can still end up with pretty good returns and break even within a few months.