To ensure your food truck business success in this highly competitive market, you need a properly structured business plan for your food truck. With over 12 years of experience, we have helped over 5,000 entrepreneurs create business plans to start and grow their food truck businesses.If this is your first time writing a business plan, we’ll walk you through these sections and give you some key things to consider.
In this industry, establishments prepare and serve meals from a mobile truck. Food is usually prepared, stored and cooked on the food truck. Food trucks may or may not use the same location every day, and it does not sell alcoholic beverages.
Food trucks have experienced rapid growth over the five-year period to 2021 and are one of the best-performing segments within the food service industry.
A variety of cities, including Portland, OR, Los Angeles, and Austin, TX, have attempted to differentiate themselves by passing laws and establishing special zones for mobile food trucks.
Do you need help creating a business plan? Check out these six free, proven business plan examples from different industries to help you write your own.
Despite the challenges in the food truck industry, there are 5 factors that will help boost profitability, efficiency, and ultimately success.
A business plan for food truck business is a written document that sets your company’s financial goals and discusses how you’ll reach them.
A solid, comprehensive strategy will serve as a road map for the next three to five years of the food truck business. Any bank or investor you approach will require a business plan for food truck, so putting one together will be critical to securing funding.
In short, writing a business plan can help you succeed if you’re thinking of starting a food truck business or pitching to investors or venture capitalists.
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.
Asking family and friends to invest in your food truck business is a great way to start. Once you’ve set a budget and identified what you’ll need to start the store, take the services of your friends and family to help you get it off the ground. You might need to present the willing ones a solid business plan to reassure them that their chances of making a profit are good.
Bank loans and angel investors are the two most common sources of funding for a food truck business. When it comes to bank loans, banks will want to look over your food truck business plan to make sure you’ll be able to pay it back with interest.
The loan officer will not simply want to ensure that your financials are reasonable in order to gain this confidence. They will, however, expect to see a professional business plan. They will be more confident in your ability to run a business successfully and professionally if you have a plan like this.
A business loan officer would want to see your food truck business plan and to decide, perhaps a business proposal. They will also consider the following:
To write a food truck business plan, you don’t need to be an expert. Our step-by-step guide will show you how to write a business plan for food truck business, or you can just download our proven sample business plans to get a better idea.
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.
Check out these executive summary examples to help you write a perfect one for your business plan.
An executive summary is the most important part of your business plan, and it need not be challenging to write. This is why we have put together some awesome free Executive Summary examples for you.
Company overview section in a business plan 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:
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.
The customer analysis section is an important part of any business plan for food truck since it evaluates the consumer segments that your company serves. It identifies target customers, determines what those customers want, and then explains how the product will meet those requirements.
Here are some examples of customer segments: Soccer/stay-at-home moms:, Local office workers, Couples, Families, Travelers, Teenagers, Students, etc.
Customer analysis may be divided into two parts: Psycho-social profiles (why your food truck products and suit a customer’s lifestyle) and Demographic profiles (descriptions of a customer’s demographic qualities).
In terms of demographics, you should include information on the ages, genders, locations, and income levels of the consumers you want to serve. Because most food truck serves consumers who live in the same city or town, such demographic data is easily accessible on government websites.
The psychological profiles of your target clients reveal their wants and needs. The better you understand and identify these demands, the better your chances of attracting and retaining customers will be.
It is necessary to do a competitor analysis. Not least because you may use their data to define your goals, marketing plans, tactics, new product lines, pricing, and more. Use competitor analysis to:
On the market, you will almost certainly discover some extremely powerful competitors, some of whom will be offering things similar to yours at unbelievably low costs. However, not every competitor works with low-cost, low-quality services.
The first step is to determine who your direct and indirect rivals are.
The direct competitors consist of other food truck businesses that offer essentially the same products to the same people as you do.
Indirect competitors are more difficult to detect. They can sell a variety of cuisines or follow a different service model. However, because they serve the same target market, these businesses are competitors.
While indirect competitors may not serve the same meals, they compete for the same hungry customers. Supermarkets, Restaurants, and customers making food at home are all included.
Once you’ve identified the competitors, concentrate on the direct, head-to-head competitors, since they are the most threatening to your food truck business — but keep an eye on the indirect competitors as well, just in case.
Provide an overview of each direct competitor’s business and detail their strengths and weaknesses.
You will be able to position yourself competitively in the market if you perform proper competitors research. Perform a SWOT Analysis to learn your competitors’ strengths, weaknesses, and competitive advantages in the following areas:
The final section of your competitive analysis should include a list of your areas of competitive advantage. for example: Are you going to offer premium services and products? Will you offer unique services and products that your competitors don’t offer? Will you offer better pricing or will you offer greater customer support?
Consider how you will outperform your competitors and include them in this portion of your food truck business plan.
Take advantage of our free SWOT analysis examples. Make your business future-proof by identifying your strengths, weaknesses, opportunities, and threats using this free SWOT Analysis Template.
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:
A few tips to help you make an effective marketing and sales plan
While the previous sections of your food truck business plan described your goals, your operations plan discusses how you will achieve them.
An operational plan in a business plan is helpful for investors, but it’s also helpful for you and employees because it pushes you to think about tactics and deadlines.
Your operations plan should be divided into two individual parts, as seen below.
All the daily tasks involved in running your food truck business, such as serving customers, cleaning food truck, procuring supplies, etc., are short-term processes.
Long-term goals are milestones that you aim to reach. These may include the dates when finalizing the lease agreement for the food truck space or Reaching break-evens. It might also be when you plan to launch a new food truck or to serve the 1000th customer.
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:
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.
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:
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.
Recommend Resources: Learn how to write a product and service section in a business plan.
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.
Pro Tips: If you are a DIY business plan writer, You need this guide on how to write a management team section in a business plan.
Your financial plan in a business plan is potentially the most important part of your business.
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.
A business plan for Food Truck is a worthwhile investment. As long as you follow the template above, you will become an expert in no time. By following the template, you will understand the Food Truck business, your competitors, and your customers. The plan will help you understand the steps necessary to launch and grow your food truck business.
Wouldn’t it be nice if your business plan could be completed faster and easier?
With wise business plans Business Plan Template, you can finish your plan in just 6 hours or less with a 30-Day Money-Back Guarantee!
Also, you can download our 300+ free business plan templates covering a wide range of industries.
OR, we can develop your food truck business plan for you
Since 2010, Wise business plans’ MBA professional business plan writers has developed business plans for thousands of companies that have experienced tremendous success.
We will show you some real-world business plan examples so you may know how to write your own, especially if you are seeking a bank loan or an outside investment and need to use SBA-approved formatting.
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.