: Shaved ice stand. Good idea?



Jesda
08-13-10, 04:48 AM
I bought a snow cone today which got me thinking.

http://sphotos.ak.fbcdn.net/hphotos-ak-snc4/hs303.snc4/40494_524412272110_66900850_31155874_3291448_n.jpg
As temps outside crept toward 100F, I happily paid $3.75 for a cup of ice and sugar that cost only 15-30 cents to produce. The fully enclosed mobile stand was air conditioned inside and located next to a Texas vehicle inspection station, so while Ian's Ram was being looked over I wandered 30 feet over to the stand.

http://www.1-800-shaved-ice.com/shaved-ice-machines.html
http://www.essortment.com/career/shavedicebusin_syqb.htm

http://ep.yimg.com/ca/I/1-800-shaved-ice_2118_12839533

Potential issues:
-Snow cone season in St Louis runs from May to September. April is rainy.
-Competition from frozen yogurt, a more popular treat here that's more expensive to produce.
-Labor. I'd rather pay someone to run it.

Positives:
-Portability
-Cheap variable costs (ice, syrup)
-Cheap fixed costs (cart, machine, location)


Thoughts? Anyone ever run or work at one of these when they were younger?


What got me thinking was a list posted at Jimmy Johns, "Warren Buffet’s 10 Rules for Getting Rich":
http://www.zimbio.com/Warren+Buffett/articles/130/Warren+Buffet+10+Rules+Getting+Rich


Reinvest your profits. "Even a small sum can turn into great wealth," Schroeder writes, if you're disciplined to not touch your profits. Let the power of compound interest work for you.

The list seemed to be telling me, "You don't need a Boxster."

hueterm
08-13-10, 09:18 AM
Good idea.

Ian's Ram?

orconn
08-13-10, 12:30 PM
If you are not interesting in running the shave ice stand yourself, at least for awhile, then it is a bad idea.

Why don't you and Ian open a used car lot ... that has lots of possibilities!

Jesda
08-13-10, 02:10 PM
If you are not interesting in running the shave ice stand yourself, at least for awhile, then it is a bad idea.

Why don't you and Ian open a used car lot ... that has lots of possibilities!

Thought about it a few years back. The cost and liability is really high and the chance of success is slim.

dkozloski
08-15-10, 01:34 AM
Bruce Williams says that if you are not ready to risk your last dime and sleep on the floor of your business for five or six years, a small business is not for you.

Jesda
08-15-10, 01:48 AM
Bruce Williams says that if you are not ready to risk your last dime and sleep on the floor of your business for five or six years, a small business is not for you.

I think I'd despise the bookstore if I had to do that. If anything, its allowed me to travel more.