For young entrepreneurs and startups, who are planning for a career in Food market, taking a small start and then gradually spreading the business is the safest solution, because the food industry has quite a high level of competition, so it’s better not to jump straight in right away.
Therefore for those who are looking for a fortune in the restaurant business, it is always suggested to start from the lowest and cheapest option. And when it comes to cheap food business ideas, Food truck stands on the top, as it needs quite little investment and has a great demand. After all, in such busy lives, everyone is looking for a nice cozy corner to take a cheap yet tasty food break.
So for starting a Food Truck Business, you have to make sure you follow the right steps so that your business kicks off with a smooth start. Give a detailed look at the below-discussed steps, they will help you lead your way to start a perfect food truck business.
Steps to Start a Food Truck Business
Select the Business Structure
Even though it’s just a small truck food business, it still requires a properly defined business structure. You can choose other of the business structure you want either it be an incorporation, a sole-proprietorship, an LLC or an S-corporation, It entirely depends upon you, however if you want to save your business from double taxation, then option for an LLC is the best option for you, or you can also choose Sole-proprietorship to avoid double taxation in case you don’t have any partners.
Write Down Your Business Plan
Write a detailed plan for your food truck business comprising all the steps you ought to take while setting it up. It must include the whole budget plan with estimated capital, resources, product line, your primary food products and other food items you plan to serve along with it.
Choose a Name and Logo
What’s the point of starting a business if you can give it a good identity, no? Choose a perfect name for your food truck business, make sure it is available and patent-free. The Name should be trendy and unique but should match your niche, also don’t forget to apply for its patent or someone else might snatch it from you. Once done with reserving a name, now develop a catchy logo that attracts the customer on the very first sight. Also, apply for the patent for the logo too as it will serve as a trademark for your business.
Register Your Business
Then comes the legal registration of your business. It doesn’t matter if your business is as small as a food truck or as big as a multinational restaurant, it needs legal registration to proceed further. So make sure to register your food truck business on the first go, you can either register it by yourself or can hire any of the best business formation service providers to get the work done for you. You can click here to find the right LLC registration service for you.
Apply for the License and Permits
Along with registration, applying for licenses and permits is also crucial to avoid any legal inquiries, because food business is a health-related business, which makes it a sensitive niche therefore you must have complete permission from the government to run any such type of business that involves selling and buying of food. So once you are finished with registering your business, apply for the license and permits either by visiting the food authority office in person, or online via the official website.
Plan the Costs
Your next step is to plan and estimate the cost that you’re gonna need for setting up your business. It must include the whole estimation of each and every expected expense such as supplies, the truck, marketing fees etc.
Get the Funds and Capital
Done with the estimation, now start collecting the capital. You must have already set aside an amount for your business, but you’re gonna need more than that because once you start spending, more expenses will start to pop out. So you have to get the funds from all your resources. You can either apply for a business loan from the bank (many banks offer special opportunities for small businesses), or ask your friends and relatives to lend you some amount. Assure them that you will pay it back as soon as your business thrives so that they don’t hesitate.
Buy a Food Truck
Now it’s time to get the game on. Start by buying a food truck, the main aspect of your business. Buying a vehicle is gonna cost a lot. You can consider that a big chunk of your capital will be spent on it, the rest of the expenses are just the babies. If you don’t have much resources, you can also rent a truck instead of buying it. Or if your budget is limited then going for a second-hand used truck is also a great idea. However, the best option is to buy a new one as it comes with lesser problems. Make sure to get the insurance of your truck.
Get all the Essential Supplies
You’re also gonna need to buy some essential supplies for your food truck business. The main one includes crockery like cooking equipment, plates, glasses, cups, forks, knives, spoons, cutting boards etc. Electric equipment such as microwaves, air fryers, kettles, oven, electric stove (or you can also go with the gas one), refrigerators, ice machines etc. other supplies might include tissues, napkins, hand towels, trash cans, and sanitizers.
Launch Your Business
Once all is set, launch your business and make it live. Find a suitable place for your truck like in front of a coffee shop or a public park. Just set your truck, do a bit of advertising and customers will start coming towards you. Make sure to keep the prices as affordable as possible so that all types of people can buy from your truck.