Are you interested in starting a yogurt production company? Do you need a sample frozen yogurt production business plan template? Then below is an in-depth guide on how to start a frozen yogurt production company.

Most businesses that offer foods and snacks thrive because of the constant demand for these products. One of such always-in-demand products is frozen yogurt. A good number of people love frozen yogurt as a healthier alternative to traditional ice cream cones; thus making the yogurt production business a profitable one. This business is also recommended if you reside in a region with hot climate such as Africa and Asia.

If you have been looking to start a lucrative business of your own, a frozen yogurt production company is a very good option to consider.

Though the frozen yogurt production business requires huge start-up costs, the business is very profitable, and you would regain your investment quickly. If you are interested in starting this business, then below are the exact steps to follow:

Starting a Frozen Yogurt Production Company – Sample Business Plan Template

1. Conduct Market Research

You need to conduct research to determine exactly what the public wants. This will also help you know if the frozen yogurt business will thrive in your locality. One of the keys to success in any business is figuring out what customers want and how they want it, and giving it to them the way they want it.

During your research, you may discover some fascinating information that will help grow your business. Perhaps there is untapped demand for certain varieties of frozen yogurt such as lactose-free frozen yogurt or frozen yogurt made with local, free-range milk. As a smart entrepreneur, you must investigate all opportunities, threats and possibilities.

2. Develop a business plan

Writing a business plan will help you know your start-up and operation costs. It will also give you some insight into who your potential customers are, who your competitors are, and how you can defeat your competition by developing your unique selling points.

A business plan also helps you make projections and realistic plans for the future. And it helps you define your specific expenses and how quickly you can build revenues. If you have taken the pain to conduct feasibility study, then writing a business plan would be a piece of cake because most of the work has already been done in the research phase.

3. Determine your location

The location of your business can largely dictate its success or failure. So, you need to conduct research as to the best place to locate your business. Also, you need to determine if your business would have a retail component. This can fetch you a large volume of small profit sales, but you will need more investment costs.

4. Find ready buyers

What is your channel of distribution? To run a successful yogurt production company, you will need to pursue distribution deals with existing businesses, such as cafes, restaurants, supermarkets, and snack stalls. Since you intend to produce yogurt, it goes without saying that you must have your buyers ready, or no one would buy your product.

Conducting research to figure the number of ready buyers around you will help you know the quantity of products to produce when you start full operation.

5. Source for funds

If you have all the funds you need, then you are good to go. But if you need additional funds before you can jump-start your frozen yogurt production business, you will need to approach an investor, the government, a bank, or some other loan-giving establishment.

This is where your business plan might become even more instrumental. If your business plan is compelling and portrays a bright future for your business, then investors would be willing to contribute to it.

6. Set up your legal infrastructure

You need to decide on the organizational form of your business. Would you be operating your business as a sole proprietorship or as a Limited Liability Company? After deciding on that, you have to proceed to register your Business Name with the designated agency in your country and obtain all necessary licenses and permits.

In most countries, businesses that offer food products are required to obtain consumer health permits and satisfactory safety inspections from agencies such as NAFDAC or FHA, before they can begin operations. Ensure that you fulfill these and other compliance requirements so that you can be cleared to operate.

7. Get the necessary facilities and equipment

You will need to secure facilities such as a shop or warehouse, a production factory, and an administrative office. You can either lease these facilities or develop them on your own. But bear in mind that the latter option would cost more. For a start, you must keep all your component facilities within one location. You can separate them later when your business starts to expand.

You will also need to purchase the major equipment and material needed to run your frozen yogurt production business. These include soft serve dispensers, display freezers, furniture, blenders, and yogurt-making machines.

8. Arrange for ingredients/ raw materials

Make arrangements with suppliers of the raw materials and ingredients that you will need. If possible, have more than one supplier for each ingredient, as this will prevent a hiccup in your business if a supplier runs out of stock.

9. Hire your start-up staff

You may need to hire few staff to start with. Hire the most suitable individuals for each position, and give them the necessary training they need to play their roles well.

10. Start marketing

You must bear in mind that frozen yogurt is a luxury item that most people can usually go without. So, you will need strong marketing strategies to entice prospective customers into deciding that your product is worth buying.

You can start by creating awareness about your product even before the first production date. You can offer free yogurt to prospects on the first day to give them a taste of what you are offering. After the first day, start advertising in newspapers and billboards. Then you can proceed to design flyers, run promos and adopt online marketing methods such as social media.

3 Challenges of Starting a Frozen Yoghurt Business

Though frozen yoghourt is a very lucrative business with enough cash flow, there are still some challenges that accompany the business. What makes you successful in this business is your ability to tackle these challenges effectively. Below are few challenges you may face as a frozen yogurt producer.

a. Poor power supply

Power failure is a very big problem when starting a frozen yogurt business, especially when you are operating in developing countries like Nigeria, etc. But if you will be operating in the United States, Canada or other developed countries; then power supply won’t be an issue.

Now your core product must be marketed and sold to the end user in frozen form, so power supply is of utmost essence. To overcome this challenge, you may need to get at least two standby power generators or better still, try locating your production factory in an industrial area with regular power supply.

b. Climatic condition

The success of your frozen yogurt production business is greatly dependent on the climatic condition of your region. The sales of frozen yogurt thrives in regions with hot or moderate temperature. Examples of such countries favorable are Nigeria, Libya, Syria, Ghana, Egypt, India, etc. But if you are situated in cold regions such as Russia, then you may have problems selling your product.

c. Getting a suitable cooling van

You will need a cooling van, as well as other cooling equipment to kick-start your business. However, the problem will be to find a van or other equipment that suits your exact need or specification. The cheaper route is to find a used truck or cooling equipment. You can also contact a local engineer or machine fabricator to get the job done, but going this route can be quite expensive.

Ajaero Tony Martins