Strategic Growth for a Small Ice Cream Brand

With your small ice cream brand gaining popularity among your customers, it's a great time to think about scaling up your business. However, before diving into a whirlwind of hiring different people for various marketing projects, it's essential to develop a strategic growth plan with the help of a consultant. This article will guide you through the steps needed to grow your ice cream business and set the foundation for success.

Understanding Your Business Model

Your current approach to distributing your ice cream is crucial to your business model. Are you operating your own parlors, or are you selling your product to other retailers? Each model comes with its own advantages and challenges.

Selling directly to consumers: Retail sales allow for higher margins as you set the prices and control the distribution. However, managing your own retail locations can be labor-intensive and require significant capital investment. Selling to other retailers: This model is less capital-intensive and allows you to leverage the networks and customer bases of other businesses. You'll need to ensure that the retailers have the ability to effectively market and sell your product to customers.

Understanding your business model will help you make informed decisions about how to grow your brand.

Analyzing Your Financials

To truly understand the health of your business, you need to have a clear grasp of your profit and loss (PL) statements. Have you conducted income statements for Q1 and Q2 of this year? These statements will reveal your costs and profitability.

Let's be honest, if you think you're making money but aren't looking at your financials, you might be in for a surprise. Getting these statements in order is crucial before you invest in further growth.

Your income statements will help you identify where your costs are concentrated and help you make data-driven decisions. Even if you believe you're making a profit, financial oversight is critical to sustainability.

Delegating Business Functions

In any business, delegation is key to growth. As your business scales, you'll need to delegate tasks to focus on higher-level strategic activities. Here's a recommended order for delegating functions:

Administration Production Marketing Business Development General Manager

This list, courtesy of a great video from Evan Carmichael, aligns with the stages of growth in a small business. Understanding these stages will help you navigate the complexities of scaling your brand.

Focus on Revenue First

When you're just starting out, your primary goal should be to bring in more revenue. Start by hiring a bookkeeper or accountant to manage your financials. This will help you track your income and expenses accurately and make informed decisions moving forward.

Once your financials are in order, focus on your production process to ensure it is efficient and poised for growth. This will involve setting up production lines, sourcing high-quality ingredients, and optimizing your production processes.

Building a Strong Foundation for Marketing

With your financials and production processes in place, it's time to concentrate on marketing. Hire a marketing professional to help you develop a marketing strategy, build your brand, and increase your online and offline reach.

Depending on your goals, you might consider pitching your brand as a licensing opportunity to larger companies. This can be a lucrative option, but it requires you to have a solid financial and production infrastructure in place.

Strategic Growth Choices

To determine your path forward, consider the following options:

Comfortable Living: Set a profit level that ensures a comfortable living and work towards maintaining that goal. Focus on steady growth and minimal expansion. Maximizing Growth: Commit to growing your ice cream brand as much as possible. This will require a significant time commitment and a willingness to invest in the business. Licensing Model: Consider selling your brand as a licensing opportunity to larger corporate players. This can provide a one-time revenue boost, but you'll need to have a well-documented business model.

Ultimately, understanding your goals and the level of commitment you're willing to make is crucial to the success of your ice cream brand. Whether you choose to focus on steady revenue, rapid expansion, or a licensing model, having a clear plan will set you up for success.