10 Things to consider when creating your food truck’s business plan
It’s important to be able to come up with innovative ideas when solving problems in our businesses. Does this mean a novel or unique food concept will always lead to success? Creativity is important but planning and consistency will be the biggest drivers to your growth. A business that lacks a solid plan can struggle. THIS ARTICLE the business owner looking to create a plan that will save them struggle and frustration.
When you start a business, there are a lot of things to consider. Carefully studying these ten considerations will help make the right decisions for your business. They will broaden your perspective concerning the industry that you are entering. Going into the mobile food business with an awareness of the moving parts of a food truck business can save time and money.
Parking costs and Locations
One way to take on this challenge is to create a shortlist of various parking locations available in your chosen jurisdiction. While you’re at it, it would be wise to list down the different food offerings in each parking location. This list will give you a better insight on possible opportunities for your business that different parking locations can offer. Studying different locations will help you make sure your vehicle stands out from the competition. This summary will make you better understand the amount of competition in each site and how it will affect your business.
Reviewing different locations will help you develop an integral part of your market research. It is the first step in identifying potential customers and deciding where to open a business, so it’s essential to take this seriously.
You can learn about local ordinances that will affect your food truck business by talking with the mayor, provincial council members, and city planners. You can also meet with a lawyer or zoning expert to get your questions answered. Research online for information about Zoning regulations, Health Codes, Fire Codes, and Food Truck laws in your area.
Studying the different rules in each location will help you realize the strengths and limitations of their ordinances. This study can guide you in developing an effective strategy when dealing with multiple locations.
License and Permits
As a business owner, you should know what will be required in each location before setting up your store. By evaluating the license and permit costs in each place you plan on setting up shop, you can better assess which areas are suitable for your business model.
A cooking simulation will help you visualize the actual factors that come into play in the operational process of your business. It will enable you to go into the tiniest minute detail like the kitchen tools and equipment you will need, and the amount of counter space you need just to name a few.
The first four points and considerations have prepared you for one of the most important decisions that you will have to make that will make break your business! Now the next question you’d like to ask yourself is this: How mobile do you want yourself to be? Of course, if you have a line-up of different locations and you literally want to move constantly, a food truck would be a better option. Containers are ideal if you want to do a pop-up store but have it stay in one area for an extended period. Trailers are more versatile, however, as they can either be mobile or stationary. You can tow them with your vehicle or move them by hand. A trailer would be nice if you’re driving a vehicle that is strong enough to pull it, say a truck or an SUV.
Whatever decision you make will be mostly guided by the previous four points and considerations mentioned above. Taking a closer look at the various license and permit fees in different areas could help you decide which locations you can consider and which ones to drop.
One of the most important aspects of a food truck business model is its operations. The proper setup will lead to efficiency with your operations which will translate into success.
If you know the local codes, you will determine what custom fit-outs your food truck will need to meet local standards.
POS and Payments
Deciding whether or not to incorporate a POS, there are a few things you need to think and ponder. You need to determine if it will be worth the cost and evaluate whether or not it will help your business grow. In some cases, a simple cash register system can work just as well.
You could also consider cashless payment options. With Venmo, online banking, and debit or credit cards, you can make payments on the go. We all know the hype food trucks usually make; during the first few months of operations, you can expect extremely long lines, huge crowds, and patrons that may overwhelm your team.
General Liability Insurance
Defining your Operational workflow can help you make decisions regarding your product inventory. Some questions that may arise at this step are: Do you want to consider co-packing? Or how much inventory can you keep? Or maybe how often should you replenish your stocks?
Product Liability Insurance
Planning your cash flow will help you stay on top of business finances. To be a successful entrepreneur, you have to think ahead and prepare for possible pitfalls. Your first year of operation is critical, so it’s best to allocate at least one year’s worth of operational expenses for your peace of mind during that time period.
Product inventory is made up of all the raw materials you will need for your restaurant. The ingredients, condiments, consumables, plastic ware, and other items needed in the production of your final food product.
Business and General Property Insurance
Now that you have identified various costs concerning your dream business, you most likely have a spreadsheet in check. It’s time to explore funding opportunities.
- Public Liability Insurance
- Commercial Auto Insurance
- Product Inventory
- Contents Insurance
One of the things you can do is to in marketing your truck is through making waves in social media! You can achieve this by creating gimmicks and social media buzz before your grand opening. Live videos, Mouth-watering product shots, Behind the kitchen scenes are great content ideas that can help boost your social media presence.
The good news is, the food truck itself will account for about 50-90% of your business. You can get a loan or pay in total upfront. If you can afford to pay cash, we still recommend that you explore financing options. With extra money available, you will have more flexibility on how to use what you already have. You may be able to re-invest it in your business, perhaps by getting another truck or investing in other necessary expenses for running your business.