Crazy 4 Froyo

[yoHeart]

Hello everyone,

I have been considering starting up a frozen yogurt business. I have been considering it for sometime. In fact, the last time I was seriously considering it, I visited this same site and found some valuable information. Now I was pleasantly surprised this site has been through a major design change and even has a forum. Very cool.

Anyway, I am very passionate about frozen yogurt, and think this really is something I want to pursue. I know this site is mostly geared toward ice cream: Is the "frozen yogurt business plan" software really specific to frozen yogurt? Also, with the economy currently so unstable, I definitely have my concerns. I realize no one can predict what it is going to do, but have ice cream owners noticed a big dip in they're business lately, if any? I'm hoping that even though people may not be able to afford to actually go out to a sit down restaurant, they might not mind grabing a cheaper treat.

Thanks in advance for any help!

[yoHeart]

Oh ya- I want to make yogurt in house, homemade. Not sent hard frozen and premade like some of the chains. Would the soft-serve plan be better for me, the ice cream plan, or do you have a specific frozen yogurt plan? Thanks so much!

[ICP]

Thank you for your compliments on our site. We've worked really hard on it and want it to be as helpful as possible to future frozen dessert entrepreneurs.

We are currently working on including information on frozen yogurt, gelato and organic frozen products as well - so check back often as we plan to regularly be adding and updating content throughout our site.

Also if you have anything you'd like to see on our site - let us know - we are always open to suggestions for improving ICP.

Now onto your question - yes we do sell a frozen yogurt business plan - but keep in mind that frozen yogurt and ice cream are in the same industry - so a lot of the data will be the same. Also it is not software but a business plan template package comprised of Microsoft Word, Excel and Adobe documents. It also includes some valuable getting started bonuses to help those just starting out. (here it is if you want to check it out: http://frozenyogurtbusinessplan.com/)

As for the recession - you might want to check out this article we just wrote:

http://www.icecreamprofits.com/articles/ice-cream-recession-proof.php

There are always companies that are able to profit when the economy takes a downturn. Opportunities are created during times like these and you just have to know how to benefit from them.

For example - the businesses near your location (coffee shop or cafe or fitness studio) might want to split advertising costs with you by doing co-promotions - so you can save money there.

Also getting out of your shop and getting involved in community events - could help promote your business while you make money. You can sell at local fairs or special events where people are out and looking to have a good time.

Hope this helps some. When are you planning on opening your shop? Do you have a location picked out?

[jlexell]

Hi there!

Welcome to ice cream profits and thank you for your thoughtful post and kind words.

You bring up an excellent question and one that I'm sure is on the minds of many.

1. Can a new small business succeed in this economic climate?

This is a tricky question. I'm of the opinion that economic climate doesn't matter as much for ice cream or frozen yogurt because it's not a high ticket item. People still will spend money to indulge.

In fact I heard a while ago that chocolate sales go through the roof during tough economic times as people need the escape more than ever.

I confess I'm a Starbucks junkie. I go 2-3 times a week (sometimes more). Two days ago I stood in a line of 10 people. They were still ordering lattes and $4.00 cappuccinos.

On the other hand... anyone who has lost their business recently is surely blaming the economy.

A good business can handle tough times along with the good times. While this economic chaos is the worst in many years it will not be the last time we go through tough times in America.

There are a few issues I'd address when I start a business regardless of the business climate if you want your store to be a success.


A killer location (don't skimp here or you will be sorry)

Prepare to spend the better part of your life for 2-3 years after start up in the shop face-to-face with your customers

Foot traffic (see killer location)

A strategy to monetize your off hours with coffee or sandwiches to help generate revenue during off peak times

Plenty of cash (I won't give out an amount here without more details on your situation) because it's not enough just to have money to open the doors, you need a war chest of cash to promote and get you through the critical first year.

Delivering an outstanding customer experience and value.

Securing a fantastic - high traffic location.


All of the above rank higher to me than the current economic status.

In fact, a poor economy might even help you secure that ideal location at a steep discount.

I hope this helps add some perspective.

Again, welcome back and please keep your questions coming.

Jason

[yoHeart]

Thank you so much for your excellent replies!

I am originally from Southern CA, where of course the froyo biz is bigger than ever. The area I moved from only 15 months ago went from having only 1 old TCBY to having 6 or 7 in only the last year!

Now I'm on the other side of the country, where there is only 2 yogurt places to be found in the whole area: one place doesn't even come close to the quality I'm used to in SoCal, and the other is a yogurt stand, about 30 miles from me, that is pretty good (probably because the owners also just moved from SoCal).

So... there is much building going on in my area. Brand new malls, movie theater, restaurants- it seems to still be booming. And I live in a college town, so I have some options. Trying to decide if closer to the college is better, or maybe more on the newer side of town, with the malls. I'm still looking.

Depending on when I can get enough funding, and how fast this planning process goes, I think the spring would be an excellent time to open. That's probably being pretty optimistic though. I'm looking into different loans or maybe even grants I can apply for. I'm actually a culinary school graduate, so I do have some background and education on starting up a restaurant and working in the industry. I've always thought owning my own restuarant would be so great, but I could never commit to that kind of menu and life. Something in the ice cream biz seems perfect for me- I understand it's still a lot of work, but not the extreme of a full service restaurant.

This is something that I really want to make happen. I'm so passionate about the healthy, low calorie, but extremely delicious product, it's kinda like a dream for me. So I guess the next step would be to develop a business plan! My favorite froyo shop in SoCal "hit the ground running" from day one. They really went all-out from the beginning and it definitely paid off (they first opened in early 07, now their 3rd store is opeing at the end of '08!). So I definitely understand the importance of thorough planning.

Since you update the business plan every year, is the 2009 version close to being released? Will there be much difference in the 08 to the 09?

Thanks again, I'm sure if this all works out I'll become a regular around here- a support group like this is so helpful.

yoHeart

[ICP]

Wow it sounds like you've thought things through! That's great. Planning is such a key ingredient in the success of a business.

I've definitely noticed frozen yogurt making a big comeback. And its a more tangy - natual - frozen yogurt product - as opposed to the old TCBY's.

We actually just updated the industry data for the frozen yogurt plan. But bear in mind that the industry publishes data every couple of years (instead of every year) so we've grabbed the latest data that's been published and have included it in our plans.

You can always email us - we will have your record on file - and we can send you any new updated data as it becomes available.

Also - regarding your opening date - if you are in a colder climate - avoid opening in winter! It's a tough time.

If you have any other questions as you go through this process - be sure to come back and post. Chances are if you have questions - there are 10 other people wondering the same thing. So we can answer your questions and help them out at the same time. :D

Also - we are setting up a new site (IceCreamFinder.com) that will list out ice cream shops all over the US - so once you are up and running - we'd love to get you listed (for free) on our new site.