Answering these five questions can help you get started.

For entrepreneurial foodies, food trucks are a great way to combine two passions: business and sharing yummy cuisine. If this type of business appeals to you, these five questions can you help you prepare to open a food truck.

What will you serve and what’s your food truck’s vibe?

Of course, you’ll be serving food but what kind? And, what makes your food unique? Identifying what makes your food distinctive will help create buzz and lead to building a reputation for your food truck.

To make your truck stand out among diners’ many choices you need a theme to set the vibe for your food truck experience. A theme also provides a foundation for everything you present to the public, including your logo, brand colors and truck appearance.

When and where will you serve customers?

For owners, one of the most attractive things about a food truck business is choosing the hours of service. If serving breakfast items, where are the morning crowds? Maybe near office parks and manufacturing districts. Other types of food do well from lunchtime through late night and the best places to find customers might be at parks, breweries, festivals, night spots, concerts and events.

What are your start-up costs for a food truck?

Estimates for starting a food truck business range from $55,000 to $100,000. A food truck accounts for most of the start-up cost whether you buy new, used or build one yourself. (If you plan to build a food truck, thoroughly research permitting and licensing requirements before you get started.)

If the truck doesn’t have the equipment you need—such as a griddle, warmer, freezer and the like—you’ll have to buy that.

In addition to the truck and cooking equipment there are other expenses for a food truck start-up.

Include a line in your budget for legal services to help form and file your business organization. Many food trucks opt for an LLC structure, but an attorney can help identify the business structure that’s right for you.

Running a business in addition to keeping books and doing taxes is a lot. Include professional fees in your start-up budget if you plan to enlist professionals to handle these duties.

Before serving your first delicious treat you also need to budget for:

• Permits
• Rent for parking, if you don’t already have a place to park
• Insurance
• Fuel
• Marketing
• Hired staff
• Consumables—serving and cleaning supplies as well as food

Who will work at your food truck?

Many people start a food truck with a partner or family members, but it can be exhausting. Keep in mind, in addition to serving food, you also need to plan locations, procure supplies and ingredients and manage cash flow. Plus, for each serving shift, figure on four hours of prep and another two to three hours for clean-up. It might be necessary to hire help to keep the business rolling.

How will you finance your food truck business?

How you cover the start-up costs of your food truck business will affect your finances both in the short- and long-term.

Many food truck owners launch their business with combined funds from their savings and a business loan. Your business plan should detail financial projections for income, costs and your ability to repay any loans. Even if you have enough savings to cover everything, you might keep some funds in reserve to cover unexpected expenses like equipment repairs.

If you plan to finance start-up costs, work with your lender to explore the options. You might use an equipment loan, an SBA loan or a business line of credit. Here at Consumers our team of commercial loan officers can provide personalized answers to all your business loan questions.

 

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