Owning your own business is a lot of work – but also a lot of fun! If you love to cook and want to start a food truck business, read this first.
What You Need to Know Before Opening a Food Truck Business
As you know, I’m a huge fan of small businesses. I know firsthand how much work it is, and how rewarding it is too.
If you love to cook and want to set up your own business, a food truck might be tempting. This is because a food truck business requires less seed capital than traditional brick and mortar business. Since it’s mobile, you can always shift to another location that has more traffic.
However, starting a food truck business is a bit tricky than we are made to believe. There are some things that you have to do before the enterprise is up and running. Doing these things in advance helps in ensuring that you will run your operations smoothly. Here is a list of things that you should do before you start selling food on a truck.
Invest in a Truck
Just like the name suggests, the business can’t be run without a truck. You must therefore budget for a truck that you will use on a daily basis. In fact, you should get a truck that’s well maintained or you will experience breakdowns that will inconvenience you.
The first option would be to buy a new truck. However, this will give you a run for your money. The good thing is that you can get financing from your bank. The other alternative is to rent a truck from a dealer or a garage. This will give you time to save enough money for buying your own truck. But if you can also borrow a truck from a relative or a friend. The problem is that they may not allow you to customize it.
Buy Insurance Policy
The law states that every vehicle must have either comprehensive or third party insurance. In fact, third party insurance is compulsory because you must cover for the cost of repairing or replacing assets that are owned by other people.
Comprehensive cover is more ideal than third party because you will not spend even a dime when your vehicle is involved in an accident. Since your business is complicated as you have two assets in one; a truck and food supplies and kitchen appliances, it’s advisable you look for a company that offers food truck insurance.
Choose a Good Location
The secret to running a successful truck business lies in selecting a location. Although the business is set up on wheels, you must find a place where you will be pitching tent. If you choose the wrong location, your business will die a natural death due to lack of customers. An ideal location is one that’s in an area that’s frequented by many people. In addition to that, it should not be have many food trucks.
You should also ensure that you have access to water and a toilet because you will need to maintain high standards of hygiene. Some of the areas to consider include busy streets and recreational parks. The good thing about running a food truck venture is that you can always shift to another area.
Get Permit and Licenses
It’s illegal to run any business without the necessary permits and licenses. You must therefore apply for the necessary documents from the local authorities. Non compliance will result in you being forced to close shop. This can actually cause your customers to lose confidence in your services and products.
You must also pay parking fees for the truck. Most cities charge an hourly rate while others charge a daily flat rate. You can even opt to pay for an entire week so that you can serve your customers without being interrupted by the authorities.
Learn How to Market Your Food Truck
Finally, after you set it all up, how will you let people know you exist? This is where smart marketing comes in. Invest in a social media manager. Spread the word about your food truck and attract people to where you are set up. The best things you can use to market your company are fantastic photography, amazing food, and word of mouth.
That’s it! Good luck as you set up your business.