Articles
7 Steps in Creating a Food Truck Business Plan
by Jason Varner Financial Projections TemplateFood truck businesses have gained more popularity and have evolved through times from street vendors in wooden carts up to modern high-end mobile kitchens. Also, the food sold now varies from the simple hotdog, waffles, and cupcakes to Mexican cuisine, Texas barbeque, to vegetarian and vegan options. Millennial are the primary target market for this business, as they prefer simple foods and affordable prices. Setting up a food truck business can be more relaxed and quicker than setting up a restaurant.
Though starting a food truck business may seem simple compared to brick-and-mortar restaurants, you still need to plan everything out starting from what menus to offer, identifying the target customers, location, and a buy or rent decision-making for the food truck. These are some essential points to address; that's why creating a food truck business plan is very useful before starting your business to put things in order. The business plan will also help in times of contingency and unexpected situations.
After gathering all the necessary data, you can now start preparing the business plan following this 7 step checklist:
1. Company Description. The company description is the part where you can describe the business in detail. What kind of food truck services will you offer, why you choose to enter into a food truck business instead of a traditional restaurant, who is your target customer, and what is your competitive edge from other food trucks and restaurants?
2. Market Analysis. In this aspect, you will analyze and explain the existing market, the market segments, demand drivers, examine the supply side, including your competitors, their strengths and weaknesses, and how you will position your business to gain a competitive edge.
3. Products or Services. The products or services section is where you describe the menus you are offering. What are the unique characteristics of your lists and the way of your services? You will also answer the questions of how to price your menus and why customers will be ready to pay those prices. What are your competitive advantages over other food trucks and restaurants?
4. Marketing. You will need to describe how you plan to market your business, and how you can build up a loyal customer base, how you reach out and connect with these customers.
5. Organization and Management. To be outlined in this part is the organizational structure of the business. How many employees will you need? Who will manage the operation, and what are the duties and responsibilities of each person? Mention also the type of the organization, if it is a sole proprietorship, general partnership, or a limited partnership.
6. Financial Projections. You will need to forecast revenues, costs, and calculate the breakdown of the required investment in equipment, the truck, inventory, etc. Financial projections can be developed from scratch or by using a spreadsheet template from e.g., eFinancialModels. Then you will need to calculate annual profits and net cash flows to demonstrate the financial viability of the proposed food truck business. The financial plan will serve as the basis to eventually raise financing from investors or banks, depending on which sources of funding you plan to use. In case you plan to fund the business yourself, it will still be prudent to develop a solid financial plan, calculate break-even, and prepare for a profitable operation of the company.
7. Executive Summary. This section will summarize the critical points of your business plan on a maximum of 1 page. Make it simple and exciting to read so that readers can quickly understand the essential components of your business plan, and understand why you think your venture will be a smart idea.
Upon completion of the business plan, you can take a look at your overall strategy and then start taking the necessary steps in establishing your food truck business. For more articles regarding a food truck business plan, you can begin reading Creating a Business Plan For Your Food Truck Business.
Though starting a food truck business may seem simple compared to brick-and-mortar restaurants, you still need to plan everything out starting from what menus to offer, identifying the target customers, location, and a buy or rent decision-making for the food truck. These are some essential points to address; that's why creating a food truck business plan is very useful before starting your business to put things in order. The business plan will also help in times of contingency and unexpected situations.
After gathering all the necessary data, you can now start preparing the business plan following this 7 step checklist:
1. Company Description. The company description is the part where you can describe the business in detail. What kind of food truck services will you offer, why you choose to enter into a food truck business instead of a traditional restaurant, who is your target customer, and what is your competitive edge from other food trucks and restaurants?
2. Market Analysis. In this aspect, you will analyze and explain the existing market, the market segments, demand drivers, examine the supply side, including your competitors, their strengths and weaknesses, and how you will position your business to gain a competitive edge.
3. Products or Services. The products or services section is where you describe the menus you are offering. What are the unique characteristics of your lists and the way of your services? You will also answer the questions of how to price your menus and why customers will be ready to pay those prices. What are your competitive advantages over other food trucks and restaurants?
4. Marketing. You will need to describe how you plan to market your business, and how you can build up a loyal customer base, how you reach out and connect with these customers.
5. Organization and Management. To be outlined in this part is the organizational structure of the business. How many employees will you need? Who will manage the operation, and what are the duties and responsibilities of each person? Mention also the type of the organization, if it is a sole proprietorship, general partnership, or a limited partnership.
6. Financial Projections. You will need to forecast revenues, costs, and calculate the breakdown of the required investment in equipment, the truck, inventory, etc. Financial projections can be developed from scratch or by using a spreadsheet template from e.g., eFinancialModels. Then you will need to calculate annual profits and net cash flows to demonstrate the financial viability of the proposed food truck business. The financial plan will serve as the basis to eventually raise financing from investors or banks, depending on which sources of funding you plan to use. In case you plan to fund the business yourself, it will still be prudent to develop a solid financial plan, calculate break-even, and prepare for a profitable operation of the company.
7. Executive Summary. This section will summarize the critical points of your business plan on a maximum of 1 page. Make it simple and exciting to read so that readers can quickly understand the essential components of your business plan, and understand why you think your venture will be a smart idea.
Upon completion of the business plan, you can take a look at your overall strategy and then start taking the necessary steps in establishing your food truck business. For more articles regarding a food truck business plan, you can begin reading Creating a Business Plan For Your Food Truck Business.
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About Jason Varner 
Financial Projections Template
25 connections, 1 recommendations, 92 honor points.Joined APSense since, February 16th, 2018, From Zurich, Switzerland.
Created on Apr 23rd 2020 11:10. Viewed 401 times.
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