How to Write a Business Plan for a Snow Cone Stand
The number of regulations and licensing required to open a snow cone stand business often surprises entrepreneurs. Writing a business plan helps define the complete operating costs, uncovers unknown factors such as health code requirements, and provides the new snow cone stand business with a road map to success. A snow cone stand business plan is required when applying for loans or government grants. New business owners in need of help to research and write a snow cone stand business plan can contact the U.S. Small Business Administration for free assistance.
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Instructions
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Research and write the Executive Summary, which describes how the snow cone stand will operate, the type of products it will sell, its location and its customers. The snow cone stand owner must include ideas as to how she wants the business to grow and detail her past business experience.
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Research and write the introduction to Section I called The Business. Include a short introduction on snow cone operations and challenges of opening and owning a snow cone business. Subheadings that are included in Section I are Marketing, Competition, Operations, Personnel and Insurance.
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Write Section I subheading Marketing. Describe the demographics and choose an advertising strategy for a snow cone stand business. Since snow cone stands are usually mobile food stands, the owners move the business based upon community events, popular tourist areas, or summer places such as beaches or amusement parks. Consult with your local SBA and request a mentor with mobile food experience to help with the business plan.
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Write and research Section I subheading Competition, which is an in-depth analysis of other snow cone stands in the area. Describe how these other businesses will compete with your business, and compare your business plan with current businesses.
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Research and write Section I subheading Operating. Describe the daily operations of a snow cone stand such as cleaning the equipment, maintaining health code standards and serving customers. Details such as the snow cone stand business's regulatory compliance and licensing need to be addressed in this section. Copies of the business license application and other supporting regulatory documents must be mentioned and put into the Section III, which is the reference section of the business plan.
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Write the Personnel subheading under Section I. Describes the owner's business and educational background. Include information on the workforce needed to run the snow cone stand, a budget detailing the labor costs and a detailed explanation of how the business will comply with government regulations such as health benefits and tax with-holdings.
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Write and research the Section I subheading of Insurance. Describe the business insurance coverage needed for the snow cone stand in detail, and provide the agent's information.
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Research and write business plan Section II Financial Data and its subheadings. If the owners of the snow cone stand have never created business financials, it is best to consult with an SBA mentor. Worksheets to create these budgeting documents are available at no cost through the SBA. Begin this section with an overview of the snow cone stand business's financial plan, including how the business will make money and start-up costs. The Financial Data section involves extensive financial spreadsheets and graphic charts. Subheadings for this section include Loan Applications, Capital Equipment and Supply List. Included a break-even analysis and a balance sheet with a profit and loss analysis supporting the snow cone stand's financial future.
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Collect and organize the business plan's supporting references and documents in Section III. Include reference pages for all the facts within the snow cone stand business plan. Copies of leases, contracts, letters of intent from suppliers, licenses and other legal contracts must also be included for lenders to review. Include also three years of tax returns, a resume and personal references. If the snow cone stand business is franchised, include the franchise contract.
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Put the snow cone stand business plan together. A finished snow cone stand business plan will need a cover sheet with the business's name and the owners listed, a table of contents that lists each section and subsection, and the supporting documents section.
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Have someone review the plan. Friends and family can edit for grammar, readability and context, but to determine if the snow cone stand business plan is viable and correct, a business professional with no personal ties to the business is the best person to review it.
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References
Resources
- Photo Credit young girl eating a snow cone image by Bo Widerberg from Fotolia.com
