A Guide On How To Open A Food Truck Business In Florida
Starting a food truck is a good way for you to explore your entrepreneurial passions if you are not up for starting a restaurant. Compared to a restaurant, starting a food truck is quite straightforward.
If you want to start but don’t know how to go about it, you can take the following steps.
Create A Business PlanThe common saying goes that failure to plan is planning to fail. This also greatly applies to establishing a food truck. Before you start, make sure you have a business plan. The business plan should highlight the concept, name, financial projections, pricing, and competitor analysis. The business plan should also detail the projected costs of doing business.
One advantage of having a financial plan is that you have something you can use to pitch potential investors when you are raising funds for your food truck business.
Research LocationsOne of the unique properties of a food truck is that you can have multiple locations of operation. So, before you start, research ideal locations where you can operate. This includes places like business parks, a local farmers market, or roaming food truck events.
Create A Business EntityEvery business has options when it comes to the choice of business entity. For example you could establish your food truck business as a sole proprietorship, partnership, Limited Liability Company (LLC), or corporation.
The preferred option for most people is either a corporation or an LLC. This is because these two business entities give you the ability to separate your personal liability from the food truck business. With an LLC or corporation, you will not be liable for debts and other liabilities your business incurs.
Get FinancingFood trucks are easier to establish because they require far less capital compared to a restaurant. So, you can even use your savings to establish a business. Alternatively, you can get other sources of funds like external investors, lines of credit, or a bank loan.
Your business proposal will come in handy at this stage. You can use it to convince investors and lenders that your business is a viable one, and they will release funds to you.
Obtain A Food Truck VehicleYour food truck is the primary instrument for your food truck business. You can buy from the range of $5,000 to as high as $60,000. You can get from sites like eBay by winning the bid for an auction. You can also directly negotiate with the truck owner for the ideal price.
It will be ideal if you can purchase an existing food truck vehicle, as this will save you from the costs of refurbishing a new vehicle.
There are a lot of legal requirements you have to meet to establish a food truck business. This includes things like business formation, getting licenses, and preparing agreements.