If you are planning to start a food truck business, you will be faced with many questions along the way. Establishing a business plan helps you answer potential questions about your food truck.
Having a good plan for your business is like having a recipe for success. A business plan helps investors and lenders see your food truck’s potential.
You can use it to determine when your food truck may become profitable and what funds you will need to operate it until then.
As you move through the process of getting up and running, he will ensure that you plan for all of the expenses and risks involved. It’s worth the time and will help you achieve success.
Writing a food truck business plan is such an important step that you should get it done before purchasing a food truck.
Food Truck Business Plan Template
We’ve outlined how to format your business plan and listed the key topics you should address. Here are the sections that you will want to include in your food truck business plan:
An Executive Summary
The executive summary provides a very brief overview of your business. The preceding sections will cover the finer points of your business.
Here you will describe the concept for your food truck, the hours you will operate, the location, how you anticipate it will grow, why you believe your food truck will be successful, and the amount of money you need to get started.
It should be no more than one or two pages. Anything more than that is useless. Make a good first impression by being concise and interesting without giving too many details.
Your executive summary should describe how your company can fill the gap in your target market.
Although the executive summary is the first section your potential investor will read, you should write it last.
The following question and the below table will help you write the perfect food truck executive summary.
|What types of foods do you intend |
to sell and specialize in?
|When and where will you be operating|
|Why will this kind of food be successful|
where you plan to sell it?
|Who will manage the business?|
|How do you plan to grow your food |
truck business in the future?
|What type of business entity do you|
plan to form?
|Is there a basic marketing plan?|
|What are the projected costs and profits|
of your food truck business?
Company Description or Food Truck Concept
This section should describe the general concept of your food truck. Explain why you want to start a food truck business and how you are different from the competition.
Are you thinking of opening a pizza truck? If so, what makes your pizza unique? Why will people choose your pizza truck over all the others?
Maybe there aren’t any pizza trucks in your area. There is a void in the market that your food truck concept will fill.
As you write the description of your food truck company, consider the following questions:
|What food will you serve?|
|Is it going to be a truck, a trailer, or a cart?|
|Would you like to serve a particular niche |
|Your competitive advantage (unique cuisine, |
exceptional customer service, creative marketing, etc.)?
|How do the menu items you provide compare with those |
offered by existing food trucks or restaurants in the area?
In the market analysis section of your food truck business plan, you explain how you will fit into the existing market.
The purpose of this section is to summarize the general highlights and conclusions of any marketing research data you gathered.
Here are some points to include in the market analysis section:
Overview and description of the industry:
Describe the mobile food industry, its size, growth, trends, and characteristics, as well as information regarding the major consumer groups in the industry.
Detailed market information:
Target markets are simply the customers you want to sell your food to. If you’re defining your target market, keep it manageable. Aiming too high will only harm you in the long run.
If you want to analyze a target market, you should gather information regarding the following.
- Targeting market characteristics: Consider including information about your potential customers’ critical needs and any seasonal trends that may affect your business
- Market size and growth potential: Here, you need to know the number of potential customers in your primary market, the geographical area where they reside, and the projected growth of the market
- Explain how you will gain a large share of the market in your area: You determine the percentage of market share and a number of customers you are expecting in your geographic area using this research. Be sure to explain how you arrived at these estimates.
- Price and gross margin targets: Describe your pricing structure, gross margin levels, and any other financially relevant information
- Related resources: Explain where you found your data if you received it from a professional market analysis or a news article or industry magazine.
- Media used to reach your target audience: You can use print or online publications, radio or television broadcasts, or any other credible resource that can influence your target audience.
- Analyze your competition:
How will you make your food truck a viable competitor in the current and future markets? In light of this information, assess the strengths and weaknesses of the top food trucks in your area, and identify any barriers which may prevent you from entering the market.
Organization and Management
Generally, food truck businesses have a simple structure. A business is usually owned by just one or two people and registered as an LLC.
If you have business partners, it’s always a good idea to write things down, even if they seem simple. There should be agreements about who owns what, how much of the business each partner has, and what happens if one of you wants to leave.
However, clearly defining responsibilities from the beginning can prevent confusion as your business grows.
This section should describe your company’s management team, its ownership, its salary and benefits, and its growth opportunities.
It is great to display your business’s organizational structure to show that everyone is covered, from the cooks in your food truck kitchen to the accountant who balances your checkbook.
Now, here is the section where you will be able to describe your food. In this section, you should outline the main menu items and any signature dishes you have.
Here you can display your innovative ideas, describe your products, and explain how you will keep your customers coming back for more.
Your food truck product line section should include:
- The type of cuisine you are offering or plan to offer
- Describe how do you differentiate yourself from the competition
- Is your recipe a well-established one or are you just beginning to develop it
- You need to address any intellectual property issues, such as trademarks, or legal issues
- State if you have plan on adding new products to your menu over time
However, don’t stop there.
You may also plan to provide catering services for corporate events or weddings. This can be a great source of revenue for you.
You should also think outside the box in this section. Many vendors that started out serving food out of a truck are now selling their trademark dishes in stores, online, or at restaurants. Be sure to consider your options for growth.
Marketing and Sales Plan
In the Marketing and Sales section of a food truck business plan, Outline how you will market your food truck business and how you will spread the word about it.
The food truck marketing and sales section should include the following:
- How will you compete with other food trucks in your area?
- Your strategies to grow your business
- How are you going to distribute your products
- Method of promoting your food truck
- Calculate what your food truck needs to sell to be profitable
A few tips to help you make an effective marketing and sales plan
- You will be driving a mobile billboard, so you can use it to your advantage for marketing and advertising.
- A good strategy to compete with other food trucks would be to lower your prices or offer a product that has not been seen before.
- Giveaways and discounts are great ways to keep customers loyal
- Create an interactive map to help customers find your truck
- It is crucial that your social media handles are part of your marketing and branding strategy so that people can easily find you online.
- In addition to social media, you’ll want to be listed in Yelp and other local food truck directories and apps.
- As part of your sales and marketing plan, you need to draft a tentative list of places where you may be able to participate, such as food truck fairs or festivals.
If you are seeking outside funding, you must fill out this section. Please indicate where you will obtain funding for your food truck and how much you will need to begin your business.
Don’t forget to add the cost of insurance and any permits or licenses you’ll need to start your business.
When creating your food truck funding request, consider these important questions:
- How much money do you need right now and in the future?
- How do you plan to use the funds
- What is your repayment plan?
- Are there any potential benefits for investors if your food truck succeeds?
- How would these funds benefit your food truck?
Points to Remember When Writing Your Request
When you ask for money, you need to be professional and know your business inside and out.
Here are some other things to remember:
Your funding request should be tailored to each source of funding.
Create different reports for lenders and investors based on their needs (i.e. loan repayment versus return on investment).
You should keep your funding sources in mind. Each funding source will have its own questions and concerns. Find out what they are and address them in your report.
Ask for enough to keep your business running. Do not be stingy, as you don’t want your business to fail. However, don’t be greedy and ask for more than you need.
Your financial plan is potentially the most important part of your business plan.
You should first forecast your sales. The next step is to determine your “cost of goods”.
Next, you’ll need to look at your expenses.
Besides the cost of food, you’ll have labor costs, including your own salary and any extra help you need.
Calculate your profitability based on your sales forecast and expense budget. Your business may not look profitable to start, and you may have to adjust expenses, increase your food prices, or find other ways to expand.
You must also consider your startup costs. A food truck and its equipment can easily range from $50,000 to $100,000, depending on how customized you want it.
Many food truck startups can be funded with savings and loans from family and friends. The bank can also lend you money as long as most of your startup costs go towards a physical asset.
This section of the food truck business plan should include historical financial data if your business has been in business for a few years already.
However, if you’re just getting started, you’ll need to calculate how much your business might make over the next five years using realistic assumptions. Ensure that your projections align with the funds you requested in your funding request.
Appendices may not be necessary in every food truck business plan, but this is a great place to include details that didn’t fit anywhere else, such as product photos or building permits.
Put it into writing now
You have now had time to think about how your food truck dreams will define your business plan, so it’s time for you to put pen to paper.
Need a little help getting started? Check out some sample business plans to help you write your own food truck business plan.
Food Truck Business Plan FAQ's
Your food truck business plan is a guide to starting and/or growing your business. A business plan outlines your business concept, identifies your target customers, details your marketing plan, and details your financial projections.
It is possible, but business consultants and writers are experts at this. With a variety of valuation metrics, they can determine what goals you should set for your food truck business. With their help, you can set a timeline for achieving those goals. They can help you with marketing tactics, financial reports, and customer acquisition strategies while saving you time on other aspects of your business.
Wise Business Plans’ writers can produce a custom business plan in as little as seven days depending on the complexity of the company.
Food trucks come in a variety of types, each with a specialty type of cuisine or food item. You can find food trucks selling burgers, cookies, ice cream, tacos, pizza, sandwiches, salads, and more.
Depending on your needs, the cost of a full plan writing service may vary. Give us a call at 1-800-496-1056 to request a quote.