Thinking of how to start an ice cream truck business, you have come to the right place!
An ice cream truck business is a lucrative opportunity for an aspiring entrepreneur. The business offers a promising opportunity, you have the option of offering different types of ice creams to various age groups including kids, teens, adults, and health-conscious people. This easy-to-understand guide contains the real insights and information to start an ice cream truck business.
In this blog post, we will walk you through the essential steps required to start an ice cream truck business.
Start an Ice Cream Truck Business by following these 11 steps:
- Know the industry & decide if the business is right for you
- Work on Your Idea
- Decide the Trucking Company Name
- Create a solid business Plan
- Register Your Business
- Register for Taxes
- Fund Your Business
- Apply for a Box Truck Business License and Permits
- Open a Business Bank Account & Credit card
- Get Business Insurance
- Prepare to launch
Step 1: Know the Industry & Decide if the Box Truck Business is Right for You
| Ice Cream Truck Statistics (U.S.) | |
| The U.S. Ice Cream market size (2022) | $1480 million |
| Growth rate | CAGR of 9.3% from 2023 to 2030 |
| Product category with highest market share | Dairy & water-based ice cream (90%+ market share) |
| Product category with highest growth rate (2023-2030) | Non-dairy/vegan segment (Expected CAGR of 12.8%) |
| Product with highest market share (2022) | Cups & tubs (65% market share) |
| Product with highest growth rate (2023-2030) | Bars, sticks & pops segment (Expected CAGR of 10.3%) |
| Most preferred ice cream flavour (2022) | Vanilla (25% market share) |
| Flavour with highest growth rate (2023-2030 | Chocolate (10.7%) |
| State with highest market share of ice cream trucks (2022) | California (8.40%) |
| State with highest growth rate (2023-2030) | Floria (11.4%) |
| Prominent players in the U.S. ice cream trucks market | Cold Stone Creamery Truck |
| Parfait Organic Artisan Ice Cream | |
| Big Spoon Creamery | |
| Karmic Ice Cream | |
| The Vintage Ice Cream Guys | |
| Sticks and Cones Ice Cream | |
| HipPOPs | |
| Momma P’s Ice Cream Truck | |
| Twirl and Dip Ice Cream | |
| Cosmos Ice Cream | |
| Key factors that drive the U.S. ice cream trucks market growth | High production and consumption of dairy & water-based ice cream |
| Increasing popularity of ice cream trucks at public and private events | |
| High preference for and consumption of vanilla ice cream in the country | |
| Ice Cream truck drivers | Male, 64.8% |
| Female, 35.2% | |
Fast facts of Ice Cream Truck Business
| Is the Box Truck Business Meant for You? | |
| Industry Trend | Stable |
| Commitment | Flexible |
| Investment Range | $35,000 – $79,000 |
| Revenue Potential | $80,000 – $270,000 p. a. |
| Profit Potential | $30,000 – $70,000 p. a |
| Time to Build | 1 – 3months |
Note: This is only an estimation actually numbers may vary depending upon many factors such as business size, location, offerings, etc.
Pros & Costs of Ice Cream Truck Business
Every business comes with its own pros and cons, and the ice cream truck business is no exception to this. Before you decide on starting an ice cream truck business you should take into account every plus and minus.
| Pros | Cons |
| Low Start-up Cost: No need of buying a property and building a store or renting a commercial space and redesigning it. Minimal expenses for interior decorating and exterior designing due to small workspace. The start-up cost only involves truck, fuel, equipment, frozen products, and other things you want to sell aside from ice cream. | Seasonal and Weather Dependent Business: Changing weather is a major drawback for countries with cold winter seasons. Ice cream trucks don’t have a space to shelter customers from the harsh weather. You may have to cease operation during cold and winter months. |
| High Mobility: You are not tied to one place and can move your ice cream truck store from one location to another without hassle. Mobility allows you to generate more sales by going to where the customers are like parks, festivals, schools, and sports venues. | Strict Parking Rules: There are strict parking rules in most of the cities and the parking regulations differ in each city and state. You have to consult local government and research current parking regulations in cities where you plan to park your mobile ice cream business. |
| Low Operational Expenses: An ice cream truck business does not require hiring many employees. You can even personally manage and run your business. You need not pay for costly property taxes, restroom maintenance, cleaning supplies, and utility bills. | High Competition: Because of low start-up cost high demand for ice cream, the ice cream truck industry is quite competitive. You need to plan strategically for your ice cream business to stand out amongst others. |
| Choose Your Own Schedule: You have the privilege to choose your business hours and call the shots on your store’s operating schedule. | Maintenance Cost: You must ensure that your truck maintenance is always up to date because it is the main player in your business. Your business may stop without a fully functional truck. |
| Less Store Clean-up: As you have limited workspace, you will require less clean-up time and this allows you to spend more time on important business matters that require your expertise. You need not clean the restroom, mop the floor, and scrub counters. | Vehicle Insurance: This is another expense which you can’t avoid. You need to find and pay for your vehicle insurance which is necessary and expensive. |
| Community Involvement: As you will mingle with people from different communities through various parties and events, you will have exposure to community involvement and lot of scope for building a network of both new and repeat customers. | |
| Consistent Demand: Ice creams are always in demand; the world population loves ice cream. The demand is unaffected by the recession. Who wouldn’t want a sweet treat in a depressing situation, such as economic inflation, anyway? | |
| Physical Activity: You get free exercise while running your ice cream truck business. The physical activities such as product preparation, accepting payments, running errands, and cleaning up the store after business hours keeps you engaged physically. |
How much does it cost to start an ice cream truck business?
The average start-up cost of starting an ice cream business is around $30,650 – $70,000. The start-up cost greatly depends on geographical location of the business, market dynamics, and operational expenses, among others. Your major expense will be the ice cream truck itself with a minimum cost of $10,000, but fancier models can run to twice that cost.
Please note, not all of these costs may be necessary to start up your business. The cost mentioned below are based on estimates, please do thorough market research to know the exact cost you will incur to start the business.
| Expense Type | Description | Cost |
| Truck Acquisition | Purchase or lease | $20,000 – $40,000 |
| Equipment | Freezers, ice cream scoops, cups, spoons, napkins | $5,000 – $10,000 |
| Inventory | Ice cream & toppings | $2,000 – $4,000 |
| Insurance | Liability insurance & vehicle insurance | $1,500 – $3,000 |
| License & Permits | Business license, health permit, and parking permits | $500 – $1,000 |
| Website | Setting up website | $1,000 – $3,000 |
| Business name | Setting up business name & corporation | $150 – $200 |
| Marketing | Printing of menus, business cards, flyers | $500 – $1,000 |
| Total Start-up Cost: $30,650 – $62,200 | ||
What equipment are required to start a ice cream truck business?
- The main equipment needed for an ice cream truck are:
- Freezers
- Water pump and heater
- Soft serve machines (if selling soft serve)
- Generator
- Sinks
- Point of sale system
How much can you earn from a box truck business?
As an ice cream truck owner, you can make on an average net monthly income of $ 2,500. The average gross sales in summertime should be around $200 – $300, and assuming you work for 20 days it comes to $5,000 in gross profit. If you subtract the expenses it comes to $2,500 in net profit.
- Average Daily Income: $200 – $300
- Average Monthly Income: $5,000
- Average Monthly Income – Expenses: $2,500
The profit you make will have several variables such as the locality, number of days you work, the number of hours you work in a day, your competitors in the locality, etc.
Willingness to work long days during the summer or weekends, when more children are free to buy ice cream will make you more profits.
Step 2: Work on Your Idea
Market research is the first important step at this stage. You must know whom you are going to compete with, how you will differentiate your products to others’, what flavours to offer, what products to specialise in, etc. are some of the key points you should consider.
Who is the target market?
Your preferred clients would be children, so you will have to focus on routes where there is a large presence of children.
How much can you charge customers?
You can typically charge between $1 -$4, but this is a broader range. The amount will vary depending on region and exact product. Product involving licensed characters, those considered premium or gourmet products, and those that are offer a greater quantity of ice cream can be charged higher. You can also adjust your prices based on seasons, such as more expensive in summer and less expensive in Fall, Winter, and Spring.
Step 3: Decide the Ice Cream Truck Name
The business is your identity and should convey your objectives, services, and mission. make it sure that your ice cream truck name is short and easy to remember.
Choosing a right business name is important and challenging too. If you operate a sole proprietorship, you might want to operate under a business name other than your own name.
Research your business name well by checking
- Your state’s business records
- Social media platforms
- Web domain availability.
Points to keep in mind while naming your ice cream truck name
- Stick to a non-specific holding company name:This gives you flexibility when you need to launch subsidiaries.
- Keep it simple: Avoid words that are hard to pronounce or spell.
- Make it brandable: Use a name generator to develop great brandable names
- Make it memorable: Select such names that are easy to remember.
- Think about the focus of your business: If you are focussing on Artisan ice cream, its wise to include the word ‘Artisan’ in the business name.
You can check the availability of related domain names using various domain name search tools like godaddy.com. It’s wise to use .com extension as it increases credibility.
Design Your Logo
Your logo is a symbolic representation of your ice cream truck business. Keep below points in mind while designing the logo.
Source: venngage
Step 4: Create a solid business Plan
Once you are confident with your skills, it’s time to create a solid business plan and start building your own business. A detailed business plan will help you with your goals, target audience, financial plans, business structure, and more.
There is no right or wrong way to write a business plan of your business, you can use whichever format (see the one-page business plan template above). Traditional business plans typically have the following components:
Your business plan will function as a guidebook to take your business through the launch process and maintain focus on your key goals.
The key points to include in your business plan are as under.
- Executive Summary: It provides an overview of the entire business plan, highlighting the key points and objectives. The executive summary should be written once the plan is complete.
- Business Overview: Here, you should mention an in-depth overview of the business, including its vision, mission, ownership structure, and corporate goals. Make sure you mention the core values and unique qualities of your business that differentiates you from the competitors.
- Product and Services: Describe your services in detail. Must Include information on the different packages and add-ons.
- Market Analysis: Conduct a thorough market analysis, including trends, demand variations, potential areas for growth, and more. Perform a SWOT analysis to identify strengths, weaknesses, opportunities, and threats.
- Competition Analysis: Analyse your competitors, assess their strengths and weaknesses, and write the advantages of your services as compared to the services offered by the competitors.
- Sales and Marketing: Decide your company’s USPs and create sales, marketing, and promotional strategies. Create strategies related to pricing, advertising, lead generation, and referrals.
- Management Team: Give an overview of the management team, their roles, responsibilities, and professional backgrounds. Also, include an organizational chart or a corporate hierarchy.
- Operations Plan: The operation plan will include procurement processes, assets and equipment, office location, and logistical details.
- Financial Plan: The financial plan will demonstrate the financial viability and sustainability of the business and will cover, start-up costs, break-even analysis, profit and loss estimates, and details of the cash flow balance sheet.
- Appendix: This may include additional documents that support the information presented in the business plan, like research data, sample contracts, and other relevant documentation.
Step 5: Register Your Business
Registering your business is an essential and vital step in starting a business. It is a basic requirement for tax payments, accessing capital, opening a bank account, and other related aspects of establishing your business.
The registration process is exciting as it formalizes your business. Once completed, you will have your very own business!
Choose where to register your company
The location of your business is an important part of your business as it affects taxes, legal obligations, and revenue generation. Generally, it makes sense for small businesses to select the home as your state of domicile, but if you have plans for expansion you should also explore other options. Few states may have additional benefits for your business.
Registering your business in other states involves a simpler registration process through the secretary of state. In states beyond your home state, your business is considered a foreign entity.
Choose your business structure
Business entities are of various types, and each has its own set of advantages and disadvantages. The company structure you choose will have an impact on factors such as tax obligations, personal liability, and registration requirements. So, make a well-informed decision.
Your options are:
- Sole Proprietorship – Sole proprietorship makes no legal distinction between the company and the owner. It gives you complete control over your business. All income goes to the owner, and the owner is liable for any losses, debts, or liabilities incurred by the business. The owner has to pay the taxes on business income on his or her personal tax return.
- Partnership – This business structure is similar to a sole proprietorship, but owned by two or more individuals. Partnerships are of two types: a general partnership (everything is equally shared between the partners) and a limited partnership (operations are controlled by one partner).
- Corporation – In this type, a business entity is separate from its owners. Shareholders are not personally liable for the company’s debts and obligations.
- Limited Liability Company (LLC) – The LLC Combines the benefits of corporations and partnerships. Profits and losses pass to owners and the business doesn’t get taxed. The owners are not personally liable for debts.
For a small business, an owner LLC is a better option because it offers liability protection and pass-through taxation and it’s simpler to form an LLC compared to a corporation. There are a good number of LLC formation services available online that can form an LLC in five minutes.
Step 6: Register for Taxes
The last step before you are able to pay taxes is getting Employer Identification Number or EIN. You can apply online through the IRS website and get EIN in a few minutes. If you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN. An EIN can help you at the time of filing business taxes to get a business credit card and open a business bank account.
Once you get an EIN, you need to choose a tax year, which can be (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, and which taxes you’ll pay will be determined by your business structure.
It is a wise idea to consult an accountant or other professional to help you with your taxes.
Step 7: Fund Your Business
To operate a box truck business, you will need funds. Financing can come in various forms as below.
- Your own money: You can fund your business through your personal savings or the sale of property or other assets.
- Friends and Family: You can reach out to your friends and family for loans or investments in your business. You should get legal advice when doing so as SEC regulations apply in this case.
- Crowdfunding: Crowdfunding involves funding a project by raising many small amounts of money from a large number of people, typically via the Internet.
- Bank loans: This is the most common method of securing financing for a small business but getting approved requires a very good business plan and strong credit history.
- SBA-guaranteed loans: In this case, The Small Business Administration (SBA) can act as guarantor and helps to gain the bank’s approval via an SBA-guaranteed loan.
- Government grants: There are various financial assistance programs to fund entrepreneurs. To know more visit Grants.gov
- Venture capital: Venture capital (VC) is a form of private equity and a type of financing that investors provide to start-up companies and small businesses that are believed to have growth potential.
Source: smartdraw
When you are just starting a business, venture capital may not be the best option. You need to offer an ownership stake to the investors in exchange for funds and obviously have to sacrifice some control over your business. You can think of this option only when you’re ready to grow your business to a large scale.
Step 8: Obtain necessary permits and licences
You must acquire necessary permits and licenses, failing which can result in hefty fines, or even cause your business to be shut down.
Certain state permits and licenses may be needed to operate an ice cream truck business.
- You will need licensing from a local health department by passing a health inspection.
- As your ice cream truck will be randomly inspected by the local health department on a regular basis, you must comply with local health laws, typically related to prevention of food contamination.
- Your local department of motor vehicles may require you to obtain a special type of vehicle registration, it depends on your location and truck build and size.
- You will require a comprehensive insurance plan, covering your vehicle, equipment, and any employees.
- You should adhere to parking and zoning requirements when operating your business.
Step 9: Open a Business Bank Account & Credit card
Before you start your business, and make money you will have to open a bank account.
You may keep your business finances separate from your personal account to simplify filing taxes and tracking your ice cream truck business income, even if you operate it as a sole proprietorship. Opening a business bank account is quite simple, just inquire at your preferred bank to know about their features and rates.
Once you decide on your bank bring in your EIN (or Social Security Number if its sole proprietorship), articles of incorporation, and other legal documents and open your new account.
You may also need a business credit card, especially for events requiring a heavy expenditure. Compared to other types of credit, it is easy to qualify for credit cards when you are a brand-new business. Having funds available in case of emergency is always intelligent.
Step 10: Get Business Insurance
It is very important to have appropriate insurance for your box truck business as insurance protects you from devastating consequences resulting from unexpected events.
In order to operate safely your business needs insurance, it protects your company’s financial wellbeing in the event of a covered loss.
The important business insurance you will need are:
- General Liability Insurance: General liability insurance protects your business from claims that it caused bodily injury or property damage to someone else. Many small business owners also get a general liability insurance policy that includes product liability insurance that protects their company from claims of bodily injury or property damage that their products cause.
- Workers’ compensation: Workers’ compensation insurance provides benefits to employees if they get an injury or illness because of the work.
Step 11: Prepare to launch
Develop your website
Your business website serves as your online presence and plays a critical role in convincing potential clients of your expertise in the field. You can utilize user-friendly platforms like WordPress, Wix, or Squarespace but it may require some time and effort to familiarize yourself with the website-building process.
If you are not technically sound you can hire a skilled web designer and get the things done. To increase the visibility of your website in the search engines like Google, you need to apply Search Engine Optimization (SEO) strategies so that prospective clients discover your website easily.
Marketing
Online visitors may visit your website and bring in some business but to get more leads you must invest in digital marketing. For a new business it’s very important to build brand awareness.
Social media platforms like Facebook, Instagram, Pinterest, etc. are another better option for diverting traffic to your website. Link your business website to all your social media accounts and keep posting engaging content and advertise your services.
- Facebook: Facebook is the largest social networking site in the world and it’s a great platform for paid advertising. It allows you to target specific demographics, like children under age 15 in Portland.
- Instagram: It is a great visual social networking platform and an ideal place for showcasing your products or services with photos or videos. It has the same benefits as Facebook but with different target audiences.
- Website: A good SEO will help your website rank higher in the search results and the prospective clients will discover your business portal easily, this in return will bring in more sales. Add the right calls to action with attractive font and color.
- Google and Yelp: List your services on Google My Business and Yelp if you want to focus on local clientele.
Increase awareness and build your brand
Once you have your website ready and presence in the social media do some real-life activities to increase awareness of your brand. Some of the activities you can do are:
- In-Person Sales: Local markets and trade shows are great places to offer your products.
- Ask for referrals: Offer some incentives to the clients who bring in new customers.
- Post a video on YouTube, Facebook, and Instagram: Post an awesome video of your box truck and show how meticulously to did the task.
- Start a blog: Start a blog with a good user interface and share knowledge and experiences that prospective clients may find useful. Add eye-catching infographics to your posts.
- Testimonials: Share maximum testimonials on the platforms where you have a presence.
- Giveaways: Offer prizes and discounts for customers who complete a certain action, such as 40% off your first order.
- Flyering: Distribute flyers in your neighborhood, community centers, and more.
Related Articles
Useful Links
- International Association of Ice Cream Distributors and Vendors
- Considerations when starting ice cream truck business