Key Elements to Define Your Gelato Business Plan
To prepare a reliable budget, you must first clarify several core aspects of your business:
- Product range and quantity: How many flavors, and what kind of offer?
- Brand positioning and image: What style, tone, and customer experience do you aim to create?
- Product quality, pricing, and sourcing: What ingredients will you use, and how will you price your products?
- The shop layout: Size, interior design, number of seats.
- Location: High foot traffic, tourist area, residential neighborhood?
- Equipment and machinery: Gelato machines, showcases, kitchen tools, furniture.
- Team and staff: Who will operate and manage the business?
These choices will directly impact the required investment, ongoing expenses, and earning potential.
Startup Investments and Annual Depreciation
The investment analysis helps you calculate the total initial capital needed and estimate the annual depreciation over time. Investments fall into two categories:
1. Intangible Investments:
- Business registration fees, legal and accounting costs.
- Trademark registration.
- Utility connections or transfer costs.
- Launch marketing and branding campaigns.
- Initial business and marketing consulting.
2. Tangible Investments:
- Real estate or shop renovation.
- Gelato machines, freezers, pasteurizers.
- Display cabinets, furniture, interior fittings.
- Digital tools: POS systems, computers, software.
Each investment has a specific lifespan, which affects how you calculate its yearly amortization in your business plan.
Understanding Operating Costs and Profitability
To estimate profitability, you need a clear income statement forecast — a projection of whether your business will make a profit or a loss in the first few years.
This requires accurate data on:
- The products you will sell.
- Your target market.
- Your business structure and operations.
Types of Operating Costs
- Variable costs: These depend on how much you sell. Examples include
Ingredients and raw materials.
Cones, cups, toppings, and napkins.
- Fixed costs: These remain constant regardless of sales. Examples include:
Rent and utilities.
Employee salaries.
Equipment depreciation.
- Mixed costs: Partially fixed and partially variable, such as:
Equipment maintenance (often treated as fixed for simplicity).
Revenue Forecasting: A Critical Challenge
Estimating revenues for a new gelato business can be tricky — especially if you’re starting from scratch. Use these sources to make your estimates more accurate:
- Other gelato shop owners: Ask about their experience and benchmarks.
- Industry suppliers: Many have insights from working with dozens of gelato businesses.
- Trade associations: They often offer sector-specific data and expert guidance.
How to Calculate Operating Income
Once you estimate your revenues and costs, you can calculate your Operating Income:
OPERATING INCOME = ANNUAL REVENUES – TOTAL ANNUAL COSTS (FIXED + VARIABLE)
This figure includes the owner's and partners’ income, and it's calculated before taxes and VAT (which are often included in gross cost and revenue values).
To calculate net profit after taxes, subtract all applicable contributions and taxes (e.g., INPS, INAIL, IRAP, IRES, IRPEF) according to the tax system in your country. For accuracy, consulting with an accountant is highly recommended.
Example: Investment Plan for a Small Gelato Shop
To give you a clearer idea, here’s an indicative breakdown of initial investment costs for a small gelato business operating around 280 days per year:
Note: Values are indicative and vary by country, city, and business model. Equipment costs can vary significantly depending on whether you choose new or second-hand machinery, and whether the production is centralized or on-site.
Ecco la traduzione in inglese della tabella che hai fornito, con gli importi aggiornati e mantenendo lo stile e la struttura dell’originale:
Item | Amount (€) | Depreciation Period (years) | Annual Depreciation (€) |
|---|
Training | 2,000 | 5 | 400 |
Feasibility study | 2,500 | 5 | 500 |
Accountant | 1,000 | 5 | 200 |
Notary | 1,500 | 5 | 300 |
Registration with Chamber of Crafts | 300 | 5 | 60 |
Other bureaucratic formalities | 1,500 | 5 | 300 |
Utilities connection/subscription | 2,000 | 5 | 400 |
Trademark & coordinated image | 1,500 | 5 | 300 |
Opening marketing campaign | 2,500 | 5 | 500 |
Tangible investments | | | |
Construction & premises setup | 25,000 | 10 | 2,500 |
Signage | 2,000 | 6 | 333 |
Lighting | 2,000 | 8 | 250 |
Furniture and equipment | 85,000 / 110,000 | 10 / 13 | 8,500 |
Tubs, cones, cups | 2,000 | 4 | 500 |
Cleaning equipment | 2,000 | 5 | 400 |
Other equipment | 5,000 | 5 | 1,000 |
TOTAL INVESTMENT | 135,600 / 160,600 | | |
TOTAL ANNUAL DEPRECIATION | | | 16,133 |