How to Start a Candy Cart Business - ProfitableVenture (2024)

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A candy cart business is a business that sells candy from carts, and carts are designed to service areas where it might be difficult to quickly construct the convention shop; areas such as children’s outdoor parties, carnival sites, construction sites, sporting events centers, campgrounds, and beach et al.

The U.S. candy market is expected to reach a value of USD 19.6 billion by 2025, according to a new report by Grand View Research, Inc. So also, a report published by Fior Markets shows that the global candy market is expected to grow from $217.8 billion in 2020 to $290.7 billion by 2028, growing at a CAGR of 3.8 percent during the forecast period 2021 to 2028.

RELATED How Much Does It Cost to Build a Candy Cart?

Steps on How to Start a Candy Cart Business

Conduct Market Research

If you are considering starting a candy cart business, you would need reliable market research to be able to maximize profits from the business. The first step in the market research process for your candy cart business should be to develop market-based research questions in line with your overall business goal and objective.

In this regard, you should source information that will help you maximize your business, help you operate your candy cart business with less stress, and of course, build the business to profitability.

a. Who is the Target Market for Candy Cart Business?

Schools
Facility managers
Event Planners
Tourists
Everyone (kids) who resides in the location where you intend to sell your candies.

b. Is Candy Cart Business a Profitable Business?

Yes, the candy cart business is very profitable and the industry is projected to grow to $290.7 billion by 2028.

c. Are There Existing Niches in the Industry?

No, there are no existing niches when it comes to the candy cart business.

d. Who are the Major Competitors?

McJak Candy Co LLC
The Cotton Candy Co.
Rainbow Cotton Candy
Piedmont Candy Co
Dandy Cotton Candy Co Inc.
Cotton Candy Inc.
Dillon Candy Company
Hey Sugar Cotton Candy
Warrell Corporation
Lollipuff Gourmet Cotton Candy Catering
Art of Sucre
Spinning Wylde
Nuage Cotton Candy
Cloud Nine Cotton Candy Company
Pandy Cotton Candy & Sweets
The Jolly Sheep Cotton Candy
Uranus Fudge Factory and General Store
Puff Delights
Natural Candy Store
Fun Tyme Foods Inc.

e. Are There County or State Regulations or Zoning Laws for Candy Cart Business?

Yes, there are county or state regulations or zoning laws for the candy cart business. Towns, cities, and counties also have zoning restrictions, designating commercial and noncommercial zones. While you may be mobile, you can’t park just anywhere.

Most areas limit candy carts to specific locations. A list of where you can and can’t park should be available from the county clerk. You may also have to adhere to two-hour parking restrictions and pay for parking meters.

f. Is There a Franchise for Candy Cart Business?

Yes, there are franchise opportunities for the candy cart business, and here are some of them;

Candy Connections
Sugar Threads Gourmet Cotton Candy
Pluffy Cotton Candy
Fluffys Cotton Candy Creations
Fuzziwig’s Candy Factory Inc.
Candy Cloud Factory.

g. What Do You Need to Start a Candy Cart Business?

A Feasibility Report
Business and Marketing Plans
Business Licenses and Permits
Candy carts
Insurance
EIN (Employer Identification Number)/Federal Tax ID Number.
A Corporate Bank Account
Employees
Candies and Packaging Materials

Choose a Memorable Business Name

When looking to start a business, before you can begin to file the necessary documents with the constituted authorities or start your website, it is necessary that you come up with a name that you will be recognized with. It is essential that the name you come up with can easily be pronounced, is unique and easily memorable.

Some of the catchy business name ideas suitable for a candy cart business are;

Creative Candy Cart Business Name ideas

Kiddies Delight© Candy Cart, Inc.
Party Time® Candy Cart, LLC
Lucky Star© Candy Cart, Inc.
Future Stars® Candy Cart Company, Inc.
Sweet King™ Candy Cart Company, Inc.
Bumble Bees™ Candy Cart Company, LLC.
Kiddies Crest© Candy Cart Company, LLC
Jason Andrews® Candy Cart Company, Inc.
Star Serve© Candy Cart Company, Inc.
One Child© Candy Cart Company, Inc.
Leafy Green® Candy Cart Company, LLC
Classic Brand® Candy Cart Company, LLC
Seven Twenty™ Candy Cart Company, LLC
Creamy Taste© Candy Cart Company, Inc.
Sun Rise® Candy Cart Company, Inc.
Fun Land™ Candy Cart Company, Inc.
Lovelyn Mack™ Candy Cart Company, Inc.
Lauren King© Candy Cart Company, Inc.
Cat Boy® Candy Cart Company, LLC
Doris James™ Candy Cart Company, Inc.

Register Your Business

a. What Type of Business Structure is Best for Candy Cart Business?

When it comes to the business structure of a candy cart business, the one that most players in this line of business consider is an LLC. It is common to consider an LLC because providers want to protect themselves from lawsuits. Please note that an LLC will need an EIN if it has employees or if it will be required to file any of the excise tax forms listed below.

b. Steps to Form an LLC

Choose a Name for Your LLC.
File Articles of Organization.
Choose a registered agent.
Decide on member vs. manager management.
Create an LLC operating agreement.
Comply with other tax and regulatory requirements.
File annual reports.

c. What Type of License is Needed to Open a Candy Cart Business?

General Business License
Zonal Permits
Signage Permit

d. What Type of Certification is Needed to start a Candy Cart Business?

You don’t need any certifications to start a candy cart business.

e. What Documents are Needed to Open a Candy Cart Business?

DBA
EIN
Business and liability insurance
Federal Tax Payer’s ID
Certificate of Incorporation
Food Handlers’ License
Business License
Business Plan
Employment Agreement (offer letters)
Operating Agreement for LLCs
Insurance Policy
Online Terms of Use
Online Privacy Policy Document
Contract Document
Company Bylaws
Memorandum of Understanding (MoU)

f. Do You Need a Trademark, Copyright, or Patent?

If you are considering starting a candy cart business, usually you may not have any need to file for intellectual property protection or trademark. This is so because the nature of the business makes it possible for you to successfully run it without having any cause to challenge anybody in court for illegally making use of your company’s intellectual properties.

Cost Analysis and Budgeting

a. How Much Does It Cost to Start a Candy Cart Business?

A candy cart business will cost from $5,000 – $50,000 to start and that can easily go higher depending on your overall business goals and objectives.

b. What are the Costs Involved in Starting a Candy Cart Business?

The total fee for registering the Business in the United States of America – $750.
Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines, and other software) – $1,300.
Marketing promotion expenses for the grand opening for $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of – $3,580.
Insurance (general liability, workers’ compensation, and property casualty) coverage at a total premium – $2,400.
Operational cost for the first 3 months (salaries of employees, fueling of the candy carts, purchase of gas, payments of bills et al) – $10,000
The cost for start-up inventory (different types of candies and packaging materials et al) – $5,000
The cost of storage hardware (bins, rack, shelves, candy case) – $3,720
The cost for store equipment (cash register, security, ventilation, signage) – $3,750
The cost of purchase of a well–equipped mobile candy cart – $10,000
The cost of launching a website – $600
The cost for the opening party – $3,000
Miscellaneous – $1,000

c. What Factors Determine the Cost of Opening a Candy Cart Business?

The size of the candy cart business (number of candy carts you intend to start the business with)
The required licenses and permits
The cost for branding, promotion, and marketing of the candy cart business
The cost of furnishing and equipping the candy cart business
The cost of the insurance policy covers
The cost of registering the business
Cost of recruiting and training your staff
The cost for the purchase and customizing of uniforms

d. Do You Need to Build a Facility? If YES, How Much Will It Cost?

It is not compulsory to build a new facility for your candy cart business. This is so because the nature of the business makes it possible for you to get everything done on the go.

e. What are the Ongoing Expenses of a Candy Cart Business?

Inventories (candy supplies)
Gas
Utility bills (internet subscriptions, phone bills, signage, and software renewal fees et al)
Salaries of employees
Cart maintenance
Insurance
Marketing costs

f. What is the Average Salary of your Staff?

Chief Operating Officer (Owner) – $38,000 Per Year
Manager – $30,000 Per Year
Candy Cart Operators – $25,800 Per Year

g. How Do You Get Funding to Start a Candy Cart Business?

Raising money from personal savings and sale of personal stocks and properties
Raising money from investors and business partners
Sell shares to interested investors
Applying for a loan from your bank/banks
Pitching your business idea and applying for business grants and seed funding from, the government, donor organizations, and angel investors
Source for soft loans from your family members and friends.

Write a Business Plan

a. Executive Summary

Kiddies Crest™ Candy Cart Company, Inc. is a registered and licensed candy cart company that will be based in Brooklyn Park, Minnesota but operates all across major cities in Minnesota selling a wide range of candies at parks and children’s parties.

Kiddies Crest™ Candy Cart Company, Inc. has been able to secure all relevant licenses and permits to operate throughout the United States and Canada. We will ensure that we abide by the rules and regulations guiding the candy cart industry and we will only hire experienced and qualified cart operators.

b. Products and Service

Hard candies
Cotton candies
Milk chocolates and caramels
Dark chocolate
Soft or creamy candies, like candy corn
Chewing gum and gumballs
Products from top candy production companies such as Almond Joy, Aplets & Cotlets, Big Hunk, Reese’s Pieces, Mounds, U-No Bar, and Ayds et al.

c. Mission Statement

Our mission is to build a candy cart business that will meet the needs of our customers in the regions/cities where our carts will cover and to sell franchises all across the United States of America and Canada.

Vision Statement

Our vision is to become one of the preferred choices when it comes to candy carts in Brooklyn Park, Minnesota.

d. Goals and Objectives

The goals and objectives of a candy cart business are to service areas where it might be difficult to quickly construct shops; areas such as carnival sites, sporting event centers, campgrounds, beaches et al.

e. Organizational Structure

Chief Operating Officer (Owner)
Manager
Candy Cart Operators.

Marketing Plan

a. SWOT Analysis

Strength:

Excellent operational history
Superb menu list
Experience and trained professionals.
Well-equipped candy cart.
Excellent customer testimonials.
Reliable and efficient candy carts and service.

Weakness:

The owner is new to large-scale marketing
We will need a loan to purchase the latest candy carts and commercial candy-making equipment
The owner is currently running the business solo
Lack of economies of scale.

Opportunities:

Growing outdoor activities targeted at children
Build upon existing clientele
Online market, new services, new technology, and of course the opening of new markets.
An increase in the number of families who want to patronize candy carts.

Threat:

Loans diminish profitability until they are paid off
The first year will be financially tight while we gain customers and pay off loans
Competition in the area could increase
Management of employees requires time, money, and efforts
The regulatory department could change its regulatory status and decide to enforce strict regulations that can strangulate new businesses.

b. How Do Candy Cart Businesses Make Money?

Candy cart businesses make money by selling candies.

c. Payment Options

Payment via bank transfer
Payment with cash
Payment via credit cards
Payment via online bank transfer
Payment via check
Payment via mobile money transfer

d. Sales & Advertising Strategies

Introduce your candy cart brand by sending introductory letters to schools, residents, park managers, and other stakeholders in and around the city you intend to cover.
Engage in roadshows in targeted communities from time to time to sell your candies and promote your candy cart company
Advertise your candy cart in community-based newspapers, local TV and radio stations
List your business and products on yellow pages ads (local directories)
Leverage the internet and mobile apps to promote your candy cart brands
Engage in direct marketing and sales
Deliberately brand your candy cart
Encourage the use of word-of-mouth marketing (referrals)

Financial Projection

a. How Much Should You Charge for your Product/Service?

Average concession price: $3.00 – $4.00 per bag.

b. How Much Profit Do Candy Cart Business Owners Make a Year?

It depends, but the available report shows that on average, a candy cart business should net more than $50,000 per year assuming they have steady clientele.

c. What Factors Determine the Amount of Profit to Be Made?

The capacity of the candy cart business (number of candy carts owned)
The location of the candy cart business is covering
The management style of the candy cart business
The business approach of the candy cart business
The advertising and marketing strategies adopted by the candy cart business.
The number of years the candy cart business is in business

d. What is the Profit Margin of a Candy Cart Business?

The profit margin of a candy cart business is not fixed. It could range from 25 percent to 55 percent.

e. What is the Sales Forecast?

Below is the sales forecast for a candy cart business. It is based on the location of the business and other factors as it relates to such startups in the United States;

First Fiscal Year: $220,000
Second Fiscal Year: $320,000
Third Fiscal Year: $450,000

Set Up your Shop/Office

a. How Do You Choose a Perfect Location for Candy Cart Business?

The demography of the location as it relates to children
The demand for candies in the location
The purchasing power of businesses and residents of the location
Accessibility of the location
The number of candy carts, and other candy retailers in the location
The local laws and regulations in the community/state
Traffic, parking and security et al

b. What State and City are Best to Open a Candy Cart Business?

Phoenix, Arizona
Fort Smith, Arkansas
Lakewood, Colorado
Columbus, Ohio
Delaware City, Delaware
Chicago, Illinois
Boston, Massachusetts.
Los Angeles, California
Las Vegas, Nevada
Atlanta, Georgia.

c. What Equipment is Needed to Operate a Candy Cart Business?

You should be prepared to purchase carts, candy cases, and boxes, candy-making machines et al. You will also need computers/laptops, an internet facility, a telephone, fax machine, and office furniture (chairs, tables, and shelves) amongst other and all these can be gotten as fairly used.

Hire Employees

When it comes to hiring employees for a standard candy cart business, you should make plans to hire a competent chief executive officer (you can occupy this position), manager, and candy cart operators.

Launch the Business Proper

In recent times, no candy cart business opens its door for business without first organizing an opening party to officially launch the business. You can choose to do a soft opening party if you are operating on a low budget or you can go for a grand opening party.

The bottom line is that with a proper launching of the candy cart business, you will officially inform people in your city that your candy cart is open for business.

a. What Makes a Candy Cart Business Successful?

Choose a good location, good menu, and reliable candy carts to launch the business
Hire only competent, hardworking, and trustworthy staff
Throw an open house grand party before officially opening the candy cart business
Be deliberate with your marketing sales approach
Encourage the use of word of mouth to promote your candy cart business
Leverage all available online and offline platforms to promote your candy cart business

b. What Happens During a Typical Day at a Candy Cart Business?

The business is open for the day’s work
The carts are washed, cleaned, and ready for business
Candies are arranged in the carts
Customer requests are taken and they are attended to
Schedule maintenance of carts is carried out
Marketing/website upkeep
Supply ordering
Administrative duties
The business is closed for the day.

c. What Skills and Experience Do You Need to Build a Candy Cart Business?

Customer services skills
Interpersonal skill
Business management skills
Work experience in a candy cart business
Experience in managing people
Experience in business administration
Experience in handling relevant software.