Back in the day, the words “food truck” would paint the picture of unhealthy, greasy food. There was also the idea that these trucks were old, gray and ugly. However, times have changed and now, famous chefs and food lovers are jumping on the bandwagon. But, before you ask how to start a food truck business, you need to know about the exact activities attached.
Also, check out How To Start Catering Business
A food truck business seems like a fun activity at first. However, highly successful business owners commit to a 60-hour workweek. So, there are rewards as well as the hard work to successfully operate a food truck business. Now, let’s have a look at how to start a food truck business:
How To Start A Food Truck Business
Businesses, no matter what form they take need to have licenses. Food truck business owners need health department certification and truck permits. In addition, there are parking limitations to follow and each city has its own distinct policies. You will need to contact the local government and obtain the necessary information.
There is no excuse for missing out on key details about truck permits. So, you need to clear out all your queries and confusion with the respective authority figure. After you figure out the way to obtain the license and permit, you can truly begin your quest.
Getting The Truck Or Cart
When people think of how to start a food truck business, they imagine having a large truck. If your budget is limited then, it is better to search for a cart that costs about $2,000. However, if you have a decent budget, you can search for and purchase that new food truck that costs $100,000. Food trucks are pricy because the health departments stick to the same rules for food trucks and restaurants.
Before you decide which vehicle you want to buy, you need to determine the necessary items for running the business. If you want to sell pizzas you make on-site, you will need a big food truck. On the other hand, if you plan on selling homemade food then you can buy a cart. You can store the wares warm inside the cart to sell homemade food.
Finding Your Niche
Nowadays, food trucks are looking to improve their game by many folds. Back in the day, food trucks would sell tacos whereas now, you can buy gourmet cuisine from them. It is important to determine what type of food you are good at preparing and serving. This is a smart way to survive in the competition.
So, the question is not just, ‘how to start a food truck business’ anymore. It is also about staying relevant after starting one on your own.
Getting The Capital
Every business needs a sizeable amount of money to start functioning properly. There are owner-financing options for food trucks. You can also take a loan from any bank or credit union. Angel investors are plausible options that you can consider as well.
In short, you will learn about financing while figuring out how to start a food truck business.
Making The Business Plan
The key to success for any business is a solid business plan. In order to come up with one, you need to research all your available options. When you figure out a way to obtain a loan, analyze the expenses of gaining permits, cleaning equipment, ingredients, etc. Most importantly, you have to estimate the number of sales necessary to earn profits on a monthly basis.
Read more Guide to Start Food Truck Catering
The main part of knowing how to start a food truck business is to learn about important insurance expenses. Your business is going to be on wheels, so you need to pay for the basic car insurance. It is imperative to communicate with an agent and provide him with the necessary details of your food truck. The agent needs to take your special condition into consideration while he designs the policies for risks and responsibilities.
Finding A Parking Spot
A food truck is huge in size so it takes up a large area in the parking lot. It is usual for the neighborhood association to stop you from parking a huge truck in front of your home. There are also safety concerns with off-street parking during the night. Additionally, few health departments want vendors to park in an approved facility with refrigeration and electricity.
In order to tackle these circumstances, you can rent an exclusive parking space. When you find one, make sure to check if it is legal.
Food truck owners don’t just sell their products in a busy spot during lunchtime. They also cater to special events or any corporate function to gain traction. This activity is arranged by event planners so that their guests don’t have to leave without food. It is an easy process for those who are connected with people within the municipal and business world.
Food truck owners who don’t have such connections need to start cultivating contacts soon to ask for that lucrative contract. So, there are a lot of aspects to look out for while knowing how to start a food truck business.
Using Social Media
Every business needs a platform to gain traction. Nowadays, social media provides the biggest platform for every business owner to promote and expand their business. The new food truck owner can use a small niche network to receive the attention of new customers. If there is a buzz surrounding your food truck on Twitter, then your customer base will eventually grow.
Eventually, you can impart knowledge on how to start a food truck business to your followers through social media.
Food trucks are not the only way to earn revenue for the owners. There are other ways such as, selling merchandise and creating a brand out of the business itself. In a way, customers who wear your merchandise promote your business for you. So, your idea for the food truck business needs to be unique enough to grab their attention.
Furthermore, your brand will be able to inspire other people to know how to start a food truck business.
To conclude, a food truck business is a very hot prospect. If you are passionate about it, then this is the best time to get started with it.
Read more about How to Start a Food Cart Business