How to Open a Frozen Yogurt Store

May 20

There are several steps to opening a frozen yogurt store, and the first is to choose company structure that suits your business. The next steps are to apply for licenses and permits, find low-cost sources of financing, develop a business plan, and purchase equipment for your yogurt store.
Factors to Take into Account
To begin with, it pays to research your niche and customers. You can check employment, income, age, and other statistics and interview customers in the area to find out what they think about your project. You can also ask about their tastes and preferences. Obviously, it is important to know your competitors and what they have on offer. The next step is to obtain the required permits that allow you to serve food and drinks. If you plan on opening a frozen yogurt store, you will probably need building, zoning, and health permits. You may want to talk to an accountant to find more about tax rules as well.329419_2864
Business Plan
It is important to have a business plan if you are applying for a business loan. You may want to include executive summary that contains marital status and age demographics data as well as educational background, income level, disposable income, and market segmentation information. Your business plan must contain a market segmentation strategy, market analysis, buying patterns and competition, and industry analysis. Describe competitors in your area and include milestones and implementation summary. Include your sales forecast and sales strategy as well as your personnel plan and management strategy.
Private and Government-Sponsored Financing
There are different options to finance your business, including cash from other investments, funding under government programs, and business loans offered by credit unions, banks, finance companies, and peer to peer lenders (https://www.lifeoncredit.ca/the-most-popular-bad-credit-lenders-in-ontario/): list courtesy of Life on credit in Canada  Banks offer two types of business loans, secured and unsecured and business lines of credit. Secured credit cards (https://www.lifeoncredit.ca/top-6-secured-credit-cards-for-canadians/) and loans and have more attractive repayment schedules and rates but financial institutions require collateral. This can be machinery and equipment, vehicles, deposits or cash savings, accounts receivable, business inventory, real property, and other assets of value. Unsecured loans are also available but the repayment term is usually shorter, and the interest charges are higher. Funding is also available in the form of Canada Small Business Financing loans, and businesses are offered up to $500,000 to purchase real property such as premises and land. There is an option to apply for a loan of up to $350,000 to purchase machinery and equipment or to make lease improvements. Companies are asked to submit a business plan along with their application. The loan term varies from 7 to 10 years and is based on the amount requested (the asset financed). In general, financing is offered for renovations, equipment installation, purchases, and modernization.
Other options are to apply for a loan through a peer to peer lending network or to contact angel investors or venture capitalists. Look for grants under government programs as well. According to expert estimates, opening a frozen yogurt store costs between $10,000 and $50,000. However, you should factor in expenses such as salaries, utilities, inventory, rent, maintenance, and so on. You will need at least $10,000 to cover upfront costs and free up cash to run your store on a daily basis.

Leave a Reply

Your email address will not be published. Required fields are marked *