Neighborhood frozen food shop

Local households, busy families, people who like to stock up, and customers looking for cultural or specialty foods that big grocery stores carry less of.

You buy from distributors or local producers at wholesale prices and sell at a markup. Margins depend on your product mix, and specialty or locally made items often earn more per sale.

• Choosing and buying stock
• Inventory and ordering
• Customer service
• Basic bookkeeping

• Check with your local health department about a retail food permit and any cold storage rules
• Freezer breakdowns or power cuts can spoil stock, so check equipment insurance and a backup plan
• General liability and property insurance, plus workers' compensation if you hire
• Register with your state for sales tax and check which food items are taxable
• Electricity costs and lease terms can eat into thin margins

Startup costs are typically around $30,000 to $120,000, depending on your freezer cases, lease terms and the stock you buy. Electricity costs and lease terms can eat into thin margins, so plan for them.

Monthly revenue is typically around $8,000 to $40,000, depending on location, your niche and the range of stock you carry. The estimate assumes at least about 40 hours a week.

Check with your local health department about a retail food permit and cold storage rules. Register with your state for sales tax and check which food items are taxable. Also check equipment insurance and a backup plan for freezer breakdowns or power cuts.