Should I buy an existing ice business or start one?
Buying an existing ice business gets you retailer placements, delivery routes and an installed plant that take seasons to build, while starting one lets you choose your own equipment and habits. Weigh how long it takes to win shelf space against what the old equipment and customers come with.
People who search for how to start an ice business are often really deciding between two paths. One is to buy a plant and routes that already run. The other is to build your own, with new equipment and a customer list you win yourself. Neither is better in every case. This page sets out what each path gives you, so you can compare them against your own skills and savings.
Shelf space and routes take time
A store only has so much freezer space for ice, and it usually keeps the supplier it has trusted. A new entrant may wait through several seasons to win placements. An existing business already has those freezers, those stops and those drivers who know the route. Ask whether the placements stay with the business, and whether stores would stay with a new owner.
Plant, storage and equipment
Buying means the plant and cold storage are already installed and running. You inherit their age and their quirks, and you may want to replace things sooner than you hoped. Starting new lets you choose equipment that suits your plan, but you carry the planning, installation and testing before you sell a single bag. Ask an equipment supplier what the lead time is.
The first summer
Ice earns most of its year in warm months, so timing matters. A new business that opens late may miss the best weeks and have to carry costs through the quiet ones. A purchase that closes before the season can let you learn the routes with the previous owner’s help. Ask what handover support the seller will give.
If you are leaning toward a purchase, what to check before buying a packaged ice business is a good next read.
Related reading
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Legal
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
- 02Business Development Bank of CanadaGovernmentBusiness plan template for entrepreneurs
- 03Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
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