Are you thinking to start a food truck business but confused with many questions? Do you have any questions like what is the investment to be made? What is the scope of food truck business? How much profitable this business can prove to be?
Well here is an article where you can find answers to these questions. Let us have a look upon the contents of the article:
- What is the scope of a food truck business?
- What are the initial requirements to set up this business?
- Step by step process to start a food truck business?
- How can we boost the sales to make it a profitable business?
Now, let us start digging into these headings one by one and clarify all of your doubts.
What is the scope of a food truck business?
If you think that there is no money in this business, make sure you have read the current worth of this business globally. Yes, it is worth a fortune. The global worth of this business is minimum $50,000. And in United States, the worth of this industry is $2.7 billion today.
Many people are engaged in this business and are earning good money to secure their future and run their home well. You can be one of them. Here is a list of some advantages in starting a food truck business:
- Food trucks usually do not require much repair and maintenance i.e. they have low maintenance cost.
- They offer transportability, so you have a chance to change your target market.
- They are relatively cheaper than restaurants, and that is the main reason behind their success.
- They usually attract more customers.
- You have a chance to experiment with the current location you are employed on to.
There are tons of advantages which will excite you to open your food truck today.
In India, food truck industry is currently growing at a very fast rate. Which makes this industry very good subject for investment point of view. So we can conclude that this business has a very high scope in future and you should invest in this business plan soon.
What are the initial requirements to start a food truck business?
You need to ensure you get ready completely before beginning a food truck business, yet understand that things can go in uncertain events. To maintain a fruitful business, you should adjust to evolving circumstances.
- You can perform statistical surveys on your field and the potential customer base, which is a significant piece of creating a field-tested strategy. This includes running studies, holding center gatherings, and inquiring about SEO and open information.
- Before you begin selling your item or administration, you have to develop your image and get an after of individuals who are prepared to hop when you open your entryways for business.
- Fix a meeting with any business person or entrepreneur and you’ll rapidly discover that beginning a business requires a great deal of work. You cannot start a business but just thinking about it and not performing any task.
- Some growing business entrepreneurs know about the hard work to establish a business. In case you’re willing to invest to construct a business, you’re going to need to realize the means expected to arrive at your objectives.
- Small things like naming the business and making a logo are important. Regardless of whether it’s deciding your business structure or making a natty gritty promoting system, the remaining task at hand can rapidly accumulate.
Steps involved in starting a food truck business are as follows:-
Let us look on the steps to start a food truck business as starting any business requires very crucial number of steps that you cannot afford to miss.
#1. Determine yourself:
If you are well determined to start a business then no one can stop you from getting success in your life. Determination helps you by making you more motivated to achieve your goals in life. Also, it helps you to cross the difficult roads of your life without stress.
Here is a list of some questions that you should ask yourself before starting a business:
- How much money will you have at stake?
- How much time consuming is it going to be?
- Will you achieve happiness after starting this business?
- What are the other paths you could walk on if you don’t start the business today?
- Can you run the business at a small scale initially to test its growth?
- Can you deliver your 100% in this business plan?
If you could answer these questions from your heart, then you can feel positive about choosing this business opportunity and can start the business with huge amount of motivation.
#2. Find your target market:
In the event that you have decided your target market, at that point your business will sprout at a quick rate. You should simply to think as a client and break down his spending limit. Various areas have various kinds of individuals and they have different spending capacity.
You are running a food truck business, so your customers will be hungry people or people who are at a break from office. You need to recognize such area and figure out how to move toward them.
Try to talk to other food vendors and take their perspective of this business. Gather important information like:
- What kind of food do people prefer in this area?
- What kinds of people live in the area and what are their spending capacities?
- How much does repairing the truck cost at a regular interval?
If you are willing to open a food truck near schools or colleges, make sure that the food is of the same category that the students prefer and is easily affordable by them. It can be Chinese or Indian fast food. But if you are planning to open your food truck near official area, make sure the timings of their lunch break and your business match. Make sure you serve food that is preferred by adults.
#3. Determine your food items:
If you are planning to open a food truck business the most important thing you should keep in mind is to identify the main food items you are going to sell. After identifying the target market your main focus should be on identifying the food items for your customer. Find the local likings of the population before designing your menu.
Some common items you can sell that do not vary with population are:
- Beverages: People will always ask for beverages with food. Selling this item can guarantee the sale of some percent of your items.
- Ice cream: People will crave for something delicious and sweet after having a fast course meal. Selling ice cream can benefit your business.
- Chinese: No matter where you live, people are always ready to eat some Chinese fast food.
If you select a perfect menu for your business it will make sure that the customers revisit your food truck and increase your business. Therefore it can be concluded that determine in your food items is very important step while starting a food truck business.
#4. Get yourself a license and get registered:
Getting a license is required for starting every business and starting a food truck business is no exception. There are 2 types of licenses required everywhere and these are business license and food service license.
Here is a list of some permits or licenses required to start a food truck business in India:
- Fire safety certificate: this is very important because the operations of the business involve fire and hence this certificate is required.
- NOC from RTO: Having this permit will enable you to operate your truck and park it in a specified place.
- Shop and license of establishment
- NOC from Municipal Corporation: This permit will prove that you will maintain proper hygiene around your truck and a proper disposal system will be installed.
- License of mobile vendor from FSSAI: This will permit you to sell food items on the roads
- Insurance: This is a need for every cooking business as the operations involve fire.
#5. Market your business:
You need to start thinking out of the box and increase your thinking capacity. You cannot afford to sit at home and imagine that the business is running perfectly. You need to market your products so that customers are attracted to your truck rather than any other restaurant or food truck.
You need to identify your competition and take proper steps to eliminate the threat of losing from such competitors. Here is a list of some possible competitors which can be harmful for your business:
- Ice cream sellers: They can cancel your ice cream sale and moreover increase their customer base by offering discounts. You need to think of some strategy before setting up your food truck.
- Restaurants: They are the main competitors for you. But you have got tax advantages that they do not.
Let’s understand it with an example:
A restaurants charge Rs. 100 for one dish whose ingredients costs Rs. 70. But you charge Rs. 90 for the same dish but you have to pay Rs. 50 for the ingredients because of the lower tax rate for small business. Hence you can profit more by charging less.
- Food trucks: These can prove to be very dangerous for your business. You need to formulate a strategy to compete with them.
Some of the ways in which you can market your business are:
- Advertisements: By printing pamphlets and spreading them in the local area, you can advertise your products. It can increase customer awareness which will increase your business growth at a faster rate.
- Discount coupons: you can offer huge discounts in the initial days of the business which will attract customers and seta base your food truck business.
- Customise your truck: By customising your truck, you can attract customers which will also increase your customer base.
#6. Finance your business:
While starting a new start up, finding a perfect source of finance is one of the main problems you can face. Since every single other issue can be solved by taking advices from experts but this problem can still remain after setting up the business.
Here are a few manners by which you can locate an ideal wellspring of money for your business:
- Approach a bank for finance. Banks can give credits at a reasonable rate under various plans.
- Try assuming praise advance from the market. This can prove to be a suitable source of finance for you if you are not willing to take up a bank loan. The main flaw with this source is that it charges higher rate than banks.
- By your own reserve funds, you can get the cash for account with no pace of premium yet this may be conceivable in the event that you as of now have cash in your pocket.
- If blended appropriately, you can take advantage from both the sources.
#7. Boost the sales?
A business will perish if the sales downgrade. So, you have to keep in mind the fact that you need to take proper initiatives to boost the sales of your business. Keep finding the different ways in which you can expand your business. Some of the ways in which you can try expanding your business are:
- Try multiplying the business by exploring more dishes.
- Try to occupy the market by the use of internet. It is cheap and safe.
- Try to save your income and invest it in order to gain high return than banks.
- Try to make partnerships with different brands and sell their products at a higher profit.
There are many ways one can expand his business, you just have to be determined.