this video is designed to help you start a yogurt business at the end of the video you'll find a valuable gift it's a yogurt business plan that you can download and will lay down for you step by step everything you need to know to start a successful yogurt business of your own if you are new to this channel make sure to hit the Subscribe button for more videos like this yogurt shops that stayed in business share similar characteristics if you're still in the consideration phase think about ways you could build the competitive advantages below into the business location the location of any small business is key to operating any successful small business look for retail spots near anchor stores such as a Target or restaurants this will ensure steady foot traffic and discovery of the business management for many of the businesses that close their doors it was because the owners of the business weren't actively involved and slowly let the business die if you view a yogurt shop as a fully passive source of Revenue this is probably not the right choice you need to get involved and meet customers to improve the odds of success focus on quality to deliver the highest quality product possible you've got to regularly maintain and inspect equipment this attention to detail will make sure you continue to crank out the lightest and highest quality soft serve ongoing Innovation you've got to be tracking Trends and testing new flavors to keep things Fresh Mark marketing winning shops don't stop marketing after being in business for six months they keep going continue to look for more joint venture opportunities with schools or non-profits think about and Test new ways to attract people to the store at the end of the day soft serve remains a great concept it's an affordable treat that families continue to enjoy but this is not a set at and forget it business you must be willing to put in the work and able to adapt with the market advantages dairy free vegan healthy and low calorie options can be easily added to menus this allows you to attract a variety of market segments to the business low product cost the cost of FroYo is under 20 cents per ounce on average but you can often sell the product between 40 cents and 70 cents per ounce minimal staff requirements if you operate a soft serve shop you only need one to two employees to operate the business at a time there are many ways to differentiate your product from and remain Innovative if you love experimenting with flavors and Trends this can be a fun business from a creativity standpoint challenges in many markets the competition can be Cutthroat over the past six years many independent shops have gone out of business for this reason the quality and volume of toppings you offer can cut into profitability if you have a topping bar there can be a significant amount of waste that eats away at profit although the core product is low other expenses like rent labor marketing machinery and insurance can reduce profitability maintaining equipment can be a challenge ice cream machines are not set it and forget it they must be cared for to maintain the quality of product frozen yogurt shop startup costs here are some of the typical costs associated with starting a yogurt shop many of these are variable costs depending on the location of your business like labor in red for States like California you can expect the startup cost to be more expensive than in Middle America however the opportunity in these areas can also be higher labor cost fifteen dollars to twenty dollars per hour for counter employees twenty dollars forty dollars for managers rent two thousand dollars to six thousand dollars per month bank loan interest one thousand dollars to three thousand dollars per month product mix and toppings one thousand dollars to two thousand dollars highly dependent on sales volume and waste cups spoons and napkins five hundred dollars to one thousand dollars per month taxes the effective small business tax rate is 20 on average this rate will vary depending on factors like location expenses and business entity util abilities one thousand five hundred dollars to two thousand five hundred dollars per month expect your electric bills to be significant to keep product cold electrical setup five thousand dollars to six thousand dollars unless you taking over an existing ice cream shop or Froyo establishment you'll need to hire an electrician to ensure you've got sufficient power permits and licenses one thousand five hundred dollars to three thousand dollars you'll need to conduct research to see what the startup fees are in your city and state insurance three hundred dollars to one thousand dollars depending on the level of coverage and location General construction cost ten thousand dollars to fifty thousand dollars always get different bids for the conversion the cost will vary widely depending on your vision and the size of the unit ice cream machines and Equipment fifteen thousand dollars Dash sixty thousand dollars depends on the number of machines models new or used all in startup cost at the end of the day you can expect to invest three hundred thousand dollars to eight hundred thousand dollars to open the doors to a yogurt shop is a frozen yogurt business profitable the profitability of the frozen dessert business remains strong mainly because the core product cost is low whether you decide to go the self-serve route and charge by weight or simply have a flat rate you'll make a substantial profit the next part of the video is not specific to the yogurt business nevertheless this knowledge is essential for success in the yogurt business as well as in any other business ignore it at your own Peril operating a successful yogurt business will depend on the following four conventions one a practical plan with a solid foundation 2. dedication and willingness to sacrifice to reach your goal three technical skills four basic knowledge of management finance record-keeping and market analysis as a new owner you will need to master these skills and techniques if your business is to be successful finding a niche small businesses range in size from a manufacturer with many employees and millions of dollars in equipment to the loan window washer with a bucket and a sponge obviously the knowledge and skills required for these two extremes are far apart but for Success they have one thing in common each has found a business Niche and is filling it the most critical problems you will face in your early planning will be to find your Niche and determine the feasibility of your idea get into the right business at the right time is very good advice but following that advice may be difficult many entrepreneurs plunge into a business venture so blinded by the dream that they fail to thoroughly evaluate its potential is your business idea feasible before you invest time effort and money the following exercise will help you separate sound ideas from those bearing a high potential for failure identify and briefly describe the business you plan to start identify the product or service you plan to sell answering yes to any of the following three questions means you are on the right track a negative answer to all of them means the road ahead could be rough 1. does your product or service satisfy an unfilled need two will your product or service serve an existing Market in which demand exceeds Supply 3.
will your product or service be competitive based on its quality selection price or location market analysis for a small business to be successful the owner must know the market to learn the market you must analyze it a process that takes time and effort you don't have to be a trained statistician to analyze the marketplace nor does the analysis have to be costly analyzing the market is a way to gather facts about potential customers and to determine the demand for your product or service the more information you gather the greater your chances of capturing a segment of the market know the market before investing your time and money in any business venture the following questions will help you collect the information necessary to analyze your market and determine if your product or service will sell this brief exercise will give you a good idea of the kind of Market planning you need to do an answer of no to any of the questions indicates a weakness in your plan so do your research until you can answer each question with yes 1. do you know who your customers will be too do you understand their needs and desires three do you know where they live four will you be offering the kind of products or services that they will buy five will your prices be competitive in quality and value 6.
