If you enjoy cooking and want to launch your business, you can start with a food truck. A restaurant business can be very costly, whereas food trucks are more affordable. Here is your guide to begin your restaurant on wheels.
Many factors determine the startup cost for a food truck business. There are also other costs that can vary by location. For example, one-time costs can consist of purchasing a food truck, a register or a point of sale, website design, office supplies, advertising and any professional, legal or consulting fees.
There are some upfront expenses when you purchase the food truck itself as you will probably need to spend further to have it modified to fit your local fire and health regulation, which vary quite significantly depending on your county.
In addition, you will have recurring costs such as payroll, equipment rental, credit card processing, food supplies and of course, fuel. Every new food truck will also have to obtain the proper licenses, permits and insurance.
How to find food trucks for sale?
Resorting to online classifieds is a good option as used trucks are cheaper and if those are local, you can easily inspect them. Buying a used truck can open a lot more inventory, as such try to get as many details and pertinent information as possible about the truck from the seller. Since you won’t most likely see the vehicle in person before a pickup, you better find out as much you can about the truck.
While new custom trucks are the most expensive options, it is the ideal way to ensure that your truck is up to standards and codes. New trucks can be customized to your specifications.
You can possibly find a local truck to lease from a national truck leasing company. Another way is to franchise a truck from an established company, as such it is essential to bear in mind that you have no control over the product marketing or menu.
Acquiring funding may be the biggest challenge you will face when beginning a food truck business. It would be best if you first aimed to put together a solid business plan. You should also possess personal savings as this will increase your chances of receiving a business loan.
If traditional financing doesn’t suit you, there are other more creative ways to get funding for your new food truck business. Here are ways to start your business with minimal funding.
1. Talk to someone who already owns a food truck and negotiate a rental or lease agreement.
2. Start with a low cost used car door trailer.
3. Begin selling at a farmer’s market fair booth.
4. Get to meet successful restaurant owners and ask them about running a food truck for the owner’s business.
If your truck idea includes offering a public service or benefit to the community, seek to obtain sponsors. The chances are that you might qualify for a loan advance if you already have a payment processor.
Food truck advantages
Numerous tax advantages come with business ownership. Choosing menu items, the vendor you want to purchase from and the events at which you wish to sell, are just some of the freedoms you will enjoy as a food truck business owner. You will also have full control of your social media, advertising, marketing and schedule mobility. For instance, you can bring your business to different locations based on demands during a different period of the day.
Permits and regulations
It is important to research the areas you are considering for your food truck business location and consider the necessary regulations and permits. Here are the main things to look out for food safety and regulations.
1. You will need to comply with food safety requirements. Get into contact with the local health department to find out more information, such as if you need to prepare food in a professional kitchen or if you are allowed to use your own facilities.
2. There can be restrictions on where you can park your truck, so make sure to research that before setting up a shop there.
3. There could be commercial and noncommercial zoning restrictions, parking time limit or distance restrictions from other business establishments. Your town and local motor vehicle department can clarify you about such the matter.
You will need specific licenses to operate your food truck including a tax ID number also called an employer identification number obtainable from the IRS and a state sales tax permit. Check your home state’s requirements and for an easy option try an online legal service to guide you in deciding which legal structure is best for your business.
Mobile POS options
Most food truck customers have got used to paying cash but credit cards and mobile pay are more popular than ever. A food truck means long hours of work with shopping, marketing, event booking, cleaning, truck maintenance, accounting in tax obligations. Running a food business is more than a full-time job.
Competition and market
Get to know the market to maximize your chances of success since you will most certainly have competition with other food trucks.
Ordinances and zoning
Every area differ in terms of where you can park your food truck and how long you can park there. Ensure you know the rules in each location where you plan on operating to prevent tickets and fines.
Food trucks are trendy these days and show no signs of slowing down. A food truck is a good option for anyone who wish to foray into the food business as it offers low startup and overhead costs. You can now decide if you are ready to leap into the food business.