ICE CREAM SHOP MONTHLY PROFIT: HOW MUCH CAN THE BUSINESS EARN?

Anyone who is thinking about investing in the ice cream business certainly has some doubts about the monthly profit of an ice cream shop. After all, it is one of the main indicators that determine whether or not your business is achieving positive results.

Recently, we explained here on the Mr Mix Blog what the profit margin of an ice cream shop is . But now, how about understanding how to calculate the monthly profit of the enterprise and how much it can earn?

In this article, you will discover everything you need to know to calculate profits and be able to measure the income of your ice cream store!

FIRST OF ALL, WHAT IS MONTHLY PROFIT?

First of all, it is important to highlight that profit is the financial measure that indicates the gains obtained by a company . However, it can only be considered after deducting expenses and costs. Therefore, do not confuse revenue or revenue with the profit obtained in the business.

Monthly profit is the amount earned at the end of each month. In other words, what is being generated monthly after subtracting everything that was spent to keep the ice cream shop – or other company – running.

In summary, to achieve monthly profit, you also need to understand four other important components:

– Total revenue: Includes all the money that entered the ice cream shop during the month. This includes amounts received from the provision of services, sale of products or any other source of income that the company has.

– Costs: These refer to the amounts spent on items directly related to the products or services you sell. As is the case with the acquisition or production of ice cream, for example.

– Expenses: Every business needs specific operating expenses to function, do you agree? So, they also have to be deducted from the income. Some examples are employee salaries, space rental, water and energy bills, etc.

– Gross profit: It is the profit obtained after subtracting costs, but before deducting expenses. In other words, in this case it only considers what was spent on things related to the acquisition or production of what is being sold.

Ready! Once you understand these factors, it becomes much easier to know how to calculate the profits made per month with an ice cream shop.

HOW MUCH CAN AN ICE CREAM SHOP MAKE?

It is very common to be curious about how much profit an ice cream shop can make, after all, income is an important part of any business. However, there is no standard revenue for ice cream shops , as each business has its own differences.

Factors such as location, the type of products sold, the size and scalability of the business, the diversity of items and even marketing strategies end up interfering with the establishment’s profit.

In general, an ice cream shop usually makes a profit from 15% of the amount invoiced, depending on the business model chosen. By investing in one of Mr Mix’s ice cream franchises , for example, it is possible to make a profit of between 15% and 24% on the revenue and have an excellent return.

In this case, if your ice cream franchise has a revenue of R$70 thousand in one month, this means that you can have between R$10.5 thousand and R$16.8 thousand in profits with just one store.

In other words, you can make a good income from selling ice cream , as long as you invest in the right business.

HOW TO CALCULATE THE MONTHLY PROFIT OF THE ICE CREAM SHOP?

Contrary to what many people think, calculating the monthly profit of an ice cream shop is much simpler than it seems . But, of course, as long as you have all your financial transactions properly recorded.

First, add up all the money you received during the month. And this includes the sale of ice cream, the services offered and any accompaniment that is sold.

Then, calculate the costs you incurred in producing or purchasing the ice cream. In this case, it can include everything that was needed, from the ingredients to the materials used to produce it.

Finally, calculate what was spent on operating expenses during the month. Whether with employees, advertising, percentage of delivery app, water, energy, etc.

Lastly, put the numbers on the tip of the pencil! To find gross profit, just subtract costs from revenue. However, to know the net, add up the expenses and costs and then subtract them from the invoiced amount.

EXAMPLE:

Imagine that in one month your ice cream shop made R$50,000, but you spent R$15,000 on costs and R$25,000 on operating expenses. In this case, just calculate:

– 50 thousand (total revenue) – 15 thousand (costs) = 35 thousand (gross profit)

– 50 thousand (total revenue) – 40 thousand (costs + expenses) = 10 thousand (net profit)

With this basic formula, you can arrive at your ice cream shop’s monthly profit and, at the end of the year, see the reality of your revenue more easily.

But if your intention is to have an ice cream franchise , you can simplify the count using the franchise calculator , as it is simple and practical, in addition to making all the calculations you need quickly.

In any case, you need to pay attention, as the value of profit has an important bearing on the company’s success.

WHY EVALUATE PROFIT MONTHLY?

Perhaps, for some people, the monthly profit assessment may seem unnecessary. However, we can assure you that it is not! In fact, profit is an excellent indicator for evaluating the financial performance of an ice cream shop .

Furthermore, knowing the monthly value is important for planning in the short and medium term, making assertive decisions, looking for investments and, of course, knowing if your business is growing as expected.

And don’t worry, to carry out financial monitoring you don’t need to be an expert in calculations or mathematics. Just collect the data correctly and do the right math to be able to evaluate.

And if you need help understanding more about the ice cream market and its financial performance, we can help you!

Talk to our team of consultants via WhatsApp (19) 98231-6400 or via email at expansao@mrmix.com and ask any questions you may have about the profits received when starting a business in the ice cream business.