While the world is hyper-focused on highlighting the differences between people, I’d like to take a moment to remind us all of one thing that unites all human beings, from every race, culture, creed, and continent: Food! We all eat food. And that is exactly why a food truck business is a good idea.
Food trucks: We’ve all seen them. However, after reading this blog post you’ll REALLY begin noticing them. Not only are these mobile cuisine machines great places to round up some grub, but they’re also incredible moneymakers, with some easily profiting over $100,000 a year.
Whether you’re looking for a great side-hustle or even replacing your day job, with something more lucrative and flexible, a food truck business just might be a good idea, and there’s no better time to look into starting one than this year, as everyone is looking safer ways to eat in a socially-distanced world.
One of the beautiful things about starting a food truck business is the relatively low start-up costs associated with launching the business. Start-up costs can range anywhere from $5,000 on the low-end to upwards of $20,000, depending on whether you’re bootstrapping the start-up from scratch or are buying an already-functioning truck with or without an established clientele.
Any start-up cost below $30,000 is considered small for a food-service business. If you don’t have the cash on hand (which most wouldn’t), there are plenty of small business loan programs to help fund enterprises like a food truck business. Check with your local bank or credit union. Or, just ask Uncle Bob. See if he can help.
Obviously, because a food truck is a . . . truck, it has wheels, which means it’s highly mobile. This helps keep your start-up costs low, as mentioned in the previous point because you don’t have to buy or lease real estate. It also means you are nimble enough to take your business to where customers are, rather than trying to convince customers to come to you.
You can rotate your location throughout the week, visiting various business districts, street corners, and parking lots (all with permission, of course). Go where the demand is.
Remember, you are building a business. The value of your food truck can quickly grow beyond just the resale value of the equipment (including truck). Let’s say your annual sales are $100,000, you can expect to sell your business for at least 2x and up to 5x that amount, which would be $200,000 or $500,000 respectively. Another reason why bootstrapping, as in point 1, might be the better, more strategic option.
And even if you fail to get your business off-the-ground and running, you still have value in the food truck and equipment, which can be sold to other enterprising folks keen on starting their own food trucks. The risk really is relatively low.
Everyone likes food, and everyone likes DIFFERENT options for food. A food truck is a great way to infuse some variety into the weekly cuisine habits of a community. Do your research and choose a menu that suits the interest of your community, not just that reflects your own interests. A hot dog stand wouldn’t do very well in downtown Brisbane, Australia, because Australians don’t really like hot dogs. However, a meat pie stand might be a better answer in the land Down Under.
A food truck is a fun way to make money as a family, and is a great way to teach kids the value of money, hard work, and teamwork!