How much money you will need? Well, this is not an easy question to answer. It really depends on so many things from what type of truck will be used to what type(s) of food will you be serving? But start-up costs vary greatly depending on the size and scope of your business. This is just one of the many reasons why a food truck business plan is so essential. However, the general start-up range seems to be between $35,000 and $300,000. Again, that really depends on you and the business you wish to run.
But to help get you started here are a few points to consider:
- How much will a proper truck cost? (used vs. new) prices can range from $10,000 to $125,000 (depending on the size and scope of your operation)
- Set-up New and/or Refurbishing, Retrofitting the vehicle $30,000 to $60,000
- Power source (Generator(s) $2000 to $15,000
- Proper register (with receipt) $200 to $3000
- Paint decals and graphics $3,000 to $10,000
- Food, utensils, plates (other basic supplies) $2000 to $5000
- Official Website (depending if you do it yourself or contract out) $500 to $10,000
- General administrative supplies and equipment $500 to $2,000
- Marketing and advertising $500 to $1500
- Consulting, legal, accounting cost $500 to $5000
All the figures are in US dollars and are rough estimates, merely shown to give a rough estimate. Actual amounts will vary based on the location you are operating in, and based on your food truck business plan. You will need to do a little research in order to find out what the real costs will be.
Speaking of costs, you have other cost to consider, some might be monthly others might be yearly or even quarterly. These may include payroll, rental (for parking and equipment), credit card processing fees and equipment, fuel and vehicle maintenance fees and such. Then you must remember you’ll still have permits and licensing fees, as well as insurances, and such.
What Are Some Key Steps For Starting Your Food Truck Business?
Sometimes there are things that can’t be done before the other. Writing a good food truck business plan is one of those. Well, actually it is sort of one of those. So what do I mean by that? When writing the food truck business plan you need to be well aware of everything involved in operating it. But to operate it you will need a plan.
So here is an outline to help you understand what you’ll need to assist you with your food truck business plan:
Get A Truck Or A Cart
Starting a business from scratch can get pretty expensive, so right on the beginning you can consider a food chart instead of a truck since those are far more cheaper and the approximately price for one of those is about $2000.
Now, if you can afford a $100.000 for a brand new food truck than no doubt you should get you one! The reason they are so expensive is that the health departments apply the same rules like if you was to have a restaurant, so all the additional equipment that you will need to add on your food truck can get costly.
Another thing you can consider is getting a used truck instead of a new one. You can get those for much cheaper and the price will vary and depend from the condition of the used truck. But again, you have to be very cautious when choosing this option because after all the whole business depends on the truck.
Furthermore, you will need to make your mind on which kind of food you would like to sell. If it is a pre-ready food that you can prepare it at your commercial kitchen, then you do not need to spend tons of money on a big truck with lots of space because all you need is to keep the already prepared food warm. But if you are going to sell pizza then you will for sure need a large truck with more space that can be called a “kitchen”.
In the world we living in today nothing is as simple as it look like and nothing is like it was years ago!
These now days in order to drive and set up a food truck somewhere you will need to knock on lots of administrative doors and ask for permits, licenses, health department certificates from the U.S. Department of Health & Human Services; parking permits and what not.
It will all depend on which city and which location of the city you wish to operate in, so do your homework well; contact your local government to get the facts and make sure to include in your food truck business plan the city and the location/locations where you planning to set up the truck.
So with other words, be well prepared to meet and fight the obstructions that you will have while chasing your dream! Some cities have a limited number of truck permits that they will issue per year or quarterly, and you might end up on the long waiting list that can take months if not years!
On the other side, you have and those types of cities that don’t allow food trucks on public areas and you will need to look for finding private parking that have access to the space where you wish to operate in.
Source: : www.social.ogilvy.com
Make a Plan
I think that I already beat the dead horse when it comes to this question but once again I will repeat that you have to have a good food truck business plan in order to even consider starting in this industry.
Besides the money that you will spend on opening and operating a food truck business, right on the very beginning you will have to spend lots of time researching and figuring out the approximate cost for the permits, ingredients, cleaning equipment, leasing, food, and all the related stuff. You should also need to calculate and how much you should sell in order to make a profit.