10 Things to consider when creating your food truck’s business plan

Posted by Niki Hodgskiss

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.

The food truck business is perfect if you love to cook and create delicious dishes but its not like cooking at home. Cooking in a commercial kitchen can be stressful and challenging, particularly if it’s your own business. The stakes are much higher and you have many things to think about and control if you are to turn a profit.

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

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.

The food truck business is perfect if you love to cook and create delicious dishes but its not like cooking at home. Cooking in a commercial kitchen can be stressful and challenging, particularly if it’s your own business. The stakes are much higher and you have many things to think about and control if you are to turn a profit.

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.

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.

Local Ordinances

At this stage, you probably have a better picture of where you would like to park your truck. It’s time to widen your perspective and look at this at a larger scale. Pinpointing possible locations will now enable you to identify the jurisdiction that your proposed site falls under; the local government unit responsible over your said site or sites.

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

Now that you have zeroed on the possible locations of your food truck business, it’s time to identify the Licenses and Permits that go with it. It’s important that you don’t miss out on applying for any of the required licenses and permits. Missing out of application may hinder or delay your opening day.

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.

Operations

Considering that you already have a menu in place, the next thing you should do is to break down the different steps needed to prepare your menu items. You can do this through an actual cooking simulation and then listing down the exact steps needed in the process.

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.

Food Truck

Now that you have listed the most critical non-negotiable variables needed in operating your business, it is time to decide the type of vehicle that will house your business.

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.

Enabling cashless payments also poses a considerable growth opportunity for your business. Most people prefer cashless payments, and being unable to accept other modes of payment immediately cuts down your potential market in half.

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?

Planning for success in your food truck business does not begin with the concept you’re willing to offer. Of course, creativity is an important facet that you need to consider, but putting these ten considerations under a microscope will help you get your finances in check. It will increase your confidence in the decisions you will be making as a business owner.

Product Liability Insurance

Before applying for insurance on your food truck, consider the possible risks that your business could face in the future. There are several types of insurance you should consider getting as a business owner.

Management Liability

Remember this: As we discuss your food truck or trailer requirements, we will be covering most of the things written in this guide. Having some basic information ready will help us create the perfect mobile restaurant for you! Please, do not hesitate to inquire! We have agents waiting on standby 24/7.

Insurance

Remember, social media has been a great driver for the success of various small businesses. This venture of yours is the perfect time to make use of that potential!

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.

Before you open your business, it is essential to define your marketing goals and create a solid marketing plan. This plan will give you an idea of the direction you would like to take in your business.

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.

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