The food truck business has recently gained progress in catering for ordinary working folks. It’s really not that expensive to set up and it’s a cheaper alternative to starting your own restaurant. Of course, this doesn’t mean that food trucks are either free or cheap. To ask for financial help, you need to sell the idea to investors and for this, you can make a comprehensive food truck business plan.
Food Truck Business Plans
Why do you need a food truck business plan?
Just thinking about food trucks roaming around today makes you think that it must really be very simple to put up such business. But even this simple undertaking requires a lot of planning. Opening such a business without planning and investigating might lead to many problems. But if you do some market research for your food truck business plan, this can help you thresh out significant details and redefine your concept.
One of the most important factors of success for a restaurant is the location. People wouldn’t want to travel too far to get to a restaurant and if you have the wrong location, your long-term plans might not even last. This goes the same for food trucks as the location is a crucial component for success.
The most successful food trucks have a relatively consistent schedule on where they park and they spread the word through various social media platforms. There is also the fact that not every location allows food trucks to set up shop. For instance, school zones and public parks generally disallow commercial businesses. So, you need to consider this too when making your food truck business plan sample.
Food Truck Business Models
How to write a food truck business plan?
You need to have the answers to many questions when you are trying to learn how to start a food truck business. The best way to get all these into perspective is to make a comprehensive food truck business plan template. This helps you list all of the essential information about the business while assisting you in getting funding from investors.
The food truck business model is always the first step because you will use this to gain the funding needed to get your food truck off the ground. Here are some things to consider when creating your food truck outline for your business plan:
- Executive Summary
This is the first section of your food truck business plan. Think of it as an introduction to whoever you will address on your final product. Don’t make it too wordy or lengthy. First impressions are the beginnings of something great. Make your executive summary interesting and concise without having to delve on details. This section gives you the opportunity to highlight what your company is, how you expect to grow your business, and more.
Another good idea is to explain how your background and knowledge can benefit you in the pursuit of your goals of opening this kind of business. Although this will be the first item that potential investors read, this must be the last section you write.
- Company Description
Describe in this section your planned food truck business. This is where you give an explanation of the details of your business and how its entry into the food truck business could be a crucial addition to the existing market. In essence, it’s here where you explain more in detail everything you have touched on in the executive summary.
- Market Analysis
This section of your food truck business plan sample gives you the chance to detail and explain how your plans fit into the market. Remember that you will present this to potential investors. It is, therefore, important to do a lot of research on how to start a food truck business before composing this section. This demonstrates that you have enough knowledge about the food truck market and industry.
- Organization and Management
Next, make a food truck outline of your organization and management plan where you explain the structure of your food truck business. This may not appear to be that essential if you intend to put up a food truck business manned only by two or three people. But if your plans go beyond a small enterprise, then you need an organization and management plan that includes:
A complete profile of your team.
Information regarding the business’ ownership.
The salaries and benefits your employees will receive.
Growth opportunities you plan to offer to your employees.
One great way to show your business’ organizational structure is through a chart that illustrates how you have all the bases covered. It is in this section where you can let your passion shine through. This could leave a memorable impression on your prospective investor as they will feel encouraged to support your plans.
- Product or service line
The next section in the food truck business plan template details the product or service line that your food truck business plan will offer. You need to display your creative ideas by making a description of your services or products and a plan to keep your customers coming back.
- Marketing and Sales
You also need a marketing and sales plan for your food truck business that focuses on strengthening customer loyalty. Define your overall strategies. How you do this is up to you. Just remember that people appreciate originality, whether when adapting a cool truck design or coming up with an interesting selling point for your business.
- Request for Funding
Although a funding request section isn’t included in every food truck business plan template, it is still something worth considering. It could be a challenge to make an estimate on how much a food truck would cost but you need to do this so you can determine where your funds will come from.
If you have plans to request funding, you have to explain clearly how much you need, what you need the funds for, and how you will repay the money that you owe. You can explore other options for funding by checking out sites that can allow you to crowdfund by raising money from different sources. Just remember that some of these sites take a percentage of the amount you raise. Therefore, you have to do more research before accepting any offer.
- Financial Projections
If you’re starting from scratch on the food truck business, it can be difficult for you to determine any realistic financial projections. It’s essential for you to analyze your target market then set specific financial goals so that you can allocate your funds more efficiently.
As a newcomer, you need to estimate how much your business will potentially make over the next 5 years using realistic assumptions. You have to make sure that your projections are in alignment with the funds you requested in your funding requests.
This section is optional for any food truck business plan but it can be the best place to add information that cannot fit elsewhere. These may include product photos, letter of reference, building permits, and more.
Food Truck Business Plan Templates
Starting your food truck business
Surprisingly, what were once often referred to as “roach coaches” have already become some of the most sought-after and popular eateries in the biggest cities across the nation. If you want to start your own small business without referring to traditional offices or storefront routines, you may consider starting a food cart or truck business. You need to create first a food truck business model or plan then consider the next steps:
- Get your licenses
Entering this business is not as simple as it may seem. To begin with, you cannot just set up stall anywhere to conduct your business. There are various requirements by the city including certificates from the health department, parking restrictions, and truck permits. Every city has its own policies so you should get in touch with your local government to get the requirements.
- Get the best vehicle for your business
A food cart would suffice for the meantime if you’re working on a tight budget. The health department has the same rules for food trucks and restaurants. This means your cart will require special equipment that’s usually expensive.
Before choosing either a cart or a truck, you should know exactly what you need to operate the business. For instance, if you intend to sell pizzas or other hot foods that you prepare on-site, then you will need a big truck. On the other hand, if you can prepare your food in advance, either at home or in a commercial kitchen, then a cart or a smaller truck will do just fine to keep your products warm.
- Find a niche
Surprisingly, many food trucks today are already serving gourmet cuisine and delicacies from other countries, sweets like designer cupcakes and exclusive sweet treats, health foods, and more. They have gone a long way since the times when what they had were just cold sandwiches and hot tacos.
One of the keys to success in this relatively new and improved business is to find your own niche and become an expert on it. To keep up with the demands of the business, you have to constantly do research to find out what’s already covered in your area then come up with your own creation.