This is for food enthusiasts who love enjoying varieties of food and food culture, you have the passion and drive as an entrepreneur, maybe your dream business should be a food truck business. Food trucks have become a popping business in many countries in the world. There are many reasons why they are becoming so popular among entrepreneurs. Even restaurant owners and diner owners leave their buildings for food trucks. It has become a unique and exciting business trick that many are adopting. Also, customers are starting to enjoy the new era and way of serving food. But before anything, you need a food truck business plan to take the first step.
Why are food trucks becoming popular? -Before discussing the food truck business plan…
Many people are opting for food trucks nowadays. Why?
Buying a large vehicle with a kitchen is way cheaper than buying a restaurant or renting a building. This is the main reason why food trucks are on the good books of entrepreneurs.
Another reason is mobility. You can take your restaurant anywhere you want to. Food trucks have an inbuilt kitchen that enables you to prepare food. In this way, you can take your mobile restaurant to any place you think has business.
Not only that but there are also many types of food trucks available in the market. Each food truck is designed to accommodate the food items they need.
The kitchens customize into what you need to make the kind of food you are planning to sell. Below are some of the most-used types of food trucks.
- BBQ food truck
- Cupcake food truck
- Ethnic fusion
- Panini Food truck
- Ice cream truck
- Organic food truck
- American Regional cuisine
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Food Truck Startup costs in the food truck business plan
Many factors determine the startup costs of a food truck business. Some are one-time costs, and some recur with time. Startup costs also differ from region to region.
Costs that are one-time are comparatively cheaper than starting up a restaurant. These costs include buying a food truck, a Point of Sale (POS) system, a register, and a truck wrap.
Apart from the physical costs, there are other one-time costs that affect the business’s startup. You have to spend money on website design, office supplies, PR, and advertising.
You also have to spend on any professional, legal, or consulting fees. These are the basic one-time costs that any food truck entrepreneur would require in their list.
There are other one-time costs such as insurance for the vehicle and business, payment processing for hardware, mobile data plan, and processing agreement, commissary fees, truck appearance such as paint and lighting, and generator costs.
One-time costs are not recurring in a cycle. But there are recurring costs such as payroll, credit card processing, equipment rental, and definitely, fuel.
You also have to keep purchasing food supplies, food items, gas, and serving utensils.
Most food truck businesses use paper plates, cups, forks, and spoons. Even though they are cheap, you still have to keep buying them as they are disposable.
Let us see about funding a food truck business plan!
Acquiring financial funds is one of the most challenging parts of starting a food truck business.
For anything, you need to prepare a solid business plan. You must have excellent personal and business credit to obtain a business loan from a bank.
If you do not like traditional funding systems, below are some of the creative ways you can use to start your food truck business.
- You can speak to someone who already owns a food truck and arrange a leasing or rental agreement.
- Can start with a used trailer or cart
- You can target fairs, pop-ups, markets, and carnivals to boost your business.
- Speak to someone who already owns a food truck business about running the business
- If you intend to provide community service, think about obtaining sponsors.
- If you have a payment processer, it is likely that you can obtain a loan.
Food truck business plan – sample
Here is a sample outline of what you can put in your business plan. One of the main things to consider is, putting in all the information in an attractive way.
Below is what you need to include in your business plan.
- Executive summary:
This section of the business plan includes your business intention and objective. You should also include what kind of food truck you are planning to run and what type of food you are going to sell.
- Company description:
This section is for company information. You have to mention the intended name and nature of the company.
- Market analysis:
This is where you explain the market situation. You can include the current market condition for food trucks and demonstrate how well and different you are going to be.
- Organization and management:
Organization and management depict the controlling party of the business. If it is a sole proprietorship, you can mention your ownership, management, and any leading role in the company.
- Service or product line:
This is where you put your products and services in detail. You have to ensure that you describe the services you are planning to offer and the kinds of food you are planning to sell.
- Marketing and Sales:
Marketing and sales are where you mention your marketing strategies and tactics. You have to show uncommon and new methods you are going to use to implement a market space for your business.
- Funding request:
This is where you request funds after ensuring the future success and sustenance of the business
- Financial Projection:
You have to calculate the expected turnover and include a comprehensive financial analysis in this section. You can show the difference between cash inflow and outflow to project a commercial perspective so the funders can have an idea of what they are funding.
How to find a good food truck for sale?
There are many ways you can find a good food truck for sale.
It is essential to look for initial costs when buying a food truck. There are many ways and places where you can easily find a food truck. But not everything available is good.
You need to find a food truck that fits into your category of food. Selecting a food truck depends on what sort of cuisine you want to serve.
Different food trucks have different kitchen settings. Therefore, look into the exterior as well as the interior when you want to buy a food truck. Below are some ways you can find a food truck for sale.
Local online classifieds
Local classifieds are the best. Since they are in your local market, you can easily inspect the vehicle. Besides, it is always cheaper to buy a used food truck.
National online classifieds
You have to get as much information as possible when buying from national online classifieds.
It is crucial that you contact the seller prior to payment because it is most likely that you will not see the vehicle before pickup. National classifieds will have a bigger inventory, and you will have more choices.
New custom trucks
This is the most expensive option of all. But the best part is, you can rest assured that the vehicle is up to the mark and standards. You can also customize new custom trucks according to your specifications.
Leasing or franchising
There are many leasing companies that lease food trucks. You can opt for this option if you are planning to start your food truck business at a minimal cost.
But with franchising, you have to remember that you do not have the choice of amending the menu or the products.
Final words: Food truck business is one of the fastest-growing mobile businesses in the world.
The easiness and mobility are two of the main reasons why many people start this business. But just like every other business, it is vital to have a reliable food truck business plan to present to your funders.
It is your business plan that speaks before you do. You need to plan what you are going to insert in the plan. It has to be an organized structure that shows the investors and funders the importance of the business.
The competition can be tough in the food truck industry. But if you are unique and have different ideas of preparing food and serving them, you can conquer the market.
Related Article: How do nearby businesses with similar products usually compete?
The food business never runs out of business. People like to enjoy different varieties of food. An excellent place for a food truck would be somewhere that tourists gather.
However, if you build your food truck business plan properly and fund your business, you can easily capture the local market and sustain it. Food lovers are there all over the world.
Since the new trend of food trucks has taken over the food world, people like to experience food from a food truck to get the original feeling.
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