How to Write a Food Truck Business Plan

How to Write a Food Truck Business Plan Last updated on 8/27/2018 If you’re trying to figure out how to start a food truck, you'll have a lot of questions. The first step is to make a detailed business plan. A food truck business plan will list important information about your business to help you get funding from investors. Because the business plan is so important in gaining funding and getting your business off the ground, it should be the first step you take, before you even buy a food truck. When you start writing your food truck business plan, there are a few things that you should consider, specifically your vision and goals. Additionally, there are a few other things you can consider, such as the type of food you want to sell, what your target demographic will be, what kind of equipment your food truck will need, and how you will fund your business. Food Truck Business Plan Template With so much information to keep track of, it can be easy to get overwhelmed, which is why having a business plan is so important. We have outlined how to write a business plan for a food truck, how to format and organize your business plan, what key things you need to add to it, and how to cover the financial aspect of your business. You can navigate through the steps by using the following links: Executive Summary Company Description Market Analysis Organization and Management Service or Product Line Marketing and Sales Funding Request Financial Projections Appendix 1. Executive Summary  The first part of your food truck business plan is the executive summary. Think of this as your introduction to whoever will be reading your final product. To make a good first impression, it's important to be concise and interesting, without delving too deep into the details. This is your chance to highlight who your company is, how you expect it to grow, and why your food truck will ultimately be successful. You will want to identify a key gap in your target market that your company is able to fill. It's also a good idea to cover how your knowledge and background will benefit you as you pursue your company goals of opening a food truck business. Although this will be the first thing your potential investor will read, this section should be the last thing you write. Key things to include in a food truck executive summary: What type of food do you plan to offer? Where do you plan to sell your food? Why will this type of food be successful in the area where you plan to sell it? What is the projected cost and profit of your food truck business? What are your future goals for your food truck business? 2. Company Description The company description portion of your food truck business plan is where you explain the details of your company. This section should describe your food truck business and show your reader that it will be a valuable addition to the existing market. Essentially, this is where you want to expand upon everything you briefly touched on in your executive summary. Key things to include in a food truck company description: What kind of food truck will it be? Why a food truck as opposed to a brick-and-mortar location? Will you prepare your food in the truck or at a commissary kitchen? How will the food items you provide compete with the menu items of existing food trucks or restaurants in your target area? What specific consumer niche will you serve? What is your overall competitive advantage (your unique cuisine, your outstanding customer service, your creative marketing, etc.)? 3. Market Analysis  The market analysis section of your food truck business plan is where you will explain and detail how you'll fit into the existing market. It's important to do extensive research on starting a food truck business before writing this section so you can demonstrate your industry and market knowledge by having solid research findings to back up your conclusions. Key things to include in a food truck market analysis: Describe the food industry, including current trends, growth rate, major consumer groups, etc. Pinpoint the age group, geographic area, socioeconomic status, and other key demographic information of the target market your food truck will appeal to Identify the needs of your target market as well as any seasonal trends that could impact your business (walking to the food truck in the snow? How about delivery instead.) Define the size and growth potential of your target market State how you will gain a large percentage of the market share in the geographic area your food truck will serve Explain your pricing structure, gross margin levels, and any other financially relevant information Identify your competitors and show how you will make your food truck a viable contender in current and future markets Address any obstacles you may encounter as you start your food truck business Cite food codes and other governmental regulations with which you will have to comply and show how you will do so Back to Top 4. Organization and Management  The next step of your food truck business plan will be to outline your organization and management plan. Explaining your organization and management structure may not seem that important if you're hoping to open up a food truck manned by two people. However, outlining responsibilities from the get-go can help you avoid confusion, or even confrontation, as your business grows and develops. This section should include a detailed profile of your management team (similar to a resume), information about the ownership of your company, the salary and benefits you'll offer your workers, and growth opportunities for people within your organization. Creating a chart that shows the organizational structure of your business is a great way to illustrate that you have all of your bases covered from the cooks in your food truck kitchen to the person who balances your checkbook. This is where you want to let your passion for your business shine through, leaving a lasting impression on your investor as a way to encourage them to support your idea. Key things to include in a food truck organization and management section: Ownership information: Legal structure (Are you forming a partnership? Are you a sole proprietor?) Full names of the owners Percentage of the company each owner holds Type of ownership (common stock, general partner, etc.) Stock information Profiles of your management team: Full name Position / primary responsibilities Educational background Prior employment and how it relates to his/her position within your company Important experience and skills that will help your business be successful Past track record with hard numbers to back it up Food industry recognition Community involvement Salary 5. Service or Product Line  You will then want to detail your service and product line in the following section of your food truck business plan. What unique flavors do you have to offer your customers? How will the products from your food truck entice passersby and convert them into die-hard fans? What impact do you hope to have on your target customers? This is the section where you can display your innovative ideas by describing your products and showing how you plan to keep customers coming back for more. Key things to include in a food truck service or product line section: Describe your menu: What type of cuisine will you offer? Why are you passionate about this type of food? Why will customers eat your food? What is your competitive advantage? Are your recipes well established or still being developed? Explain where your products are in terms of life cycle: Are you launching a totally new product? Are you already gaining popularity with your target market? What might cause a decline in demand for your product? Discuss any intellectual property: Do you have any trade secrets or patents in the works? Will you require your staff to sign any non-disclosure or non-compete agreements? Consider the future: How do you see your menu changing over time? Are you developing any new products? Do you plan to own a fleet of food trucks someday? Will you expand your reach by attending food truck fairs or booking catered events? 6. Marketing and Sales  The marketing and sales portion of your food truck business plan is focused on building customer loyalty. You will need to define your overall marketing and sales strategies, but how you do so is completely up to you. One important thing to remember is that people value originality, whether that means adopting a recognizable truck design or creating a unique selling point for your food truck. Key things to include in a food truck marketing and sales section: How do you plan to initially get into the food truck market? Will you set your prices lower than your competitors'? Will you offer a product that has never been seen before? How will you grow your business? Will you hire more employees? Will you acquire more food trucks? Will you extend the geographic area your truck serves? How will you distribute your products? Will you sell only from your truck? Will you attend food truck fairs or rallies? How will you reach your customers? Will you advertise in traditional media(on the radio, in the newspaper, etc.)? Will you develop a large social media presence by utilizing Facebook, Twitter, Instagram, etc.? Will you offer special rewards or discounts for returning customers? Will you give away free samples to entice possible customers? Will you have an interactive map that allows people to easily locate your truck? How many sales are necessary for your food truck to be profitable? What is a fair menu price for the products you'll be selling? How many days will you take off in a year? Will you sell all through the winter or just during the warmer months? Back to Top 7. Funding Request Not every food truck business plan has a funding request section, but it's definitely something to consider including. It can be tricky to map out how much a food truck costs, but you will need to do so in order to determine where your funds will be coming from. If you do plan to request funding, you should clearly explain how much funding you need, what you need it for, and how you'll repay anything you owe. If you'd like to explore alternative options for funding your business, check out sites like Kickstarter or Gofundme, which allow you to crowdfund your business by raising money from investors, customers, and friends. One thing to keep in mind is that some sites like this will take a cut of what you raise, so be sure to do your research before jumping in with two feet. Key things to include in a food truck funding request: How much capital do you really need? Do you foresee needing more funding in the future? How will you use the funds you are awarded? How will you repay your loans? What are the potential benefits to an investor if your food truck does well? How would these funds create new opportunities for your food truck? 8. Financial Projections  It's difficult to know what realistic financial projections are when you're starting your food truck business from scratch, but in order to allocate funds efficiently, it's important to analyze your target market and set clear financial goals. If your business has already been in operation for a few years, this is the section of the food truck business plan where you'd include historical financial data. However, if you're just starting out, you will need to calculate how much your business will potentially make over the next five years using realistic assumptions. Make sure that these projections align with the funds you asked for in your funding request. 9. Appendix The Appendix section isn't necessary in every food truck business plan, but this is a great place to include information that didn't fit anywhere else, from product photos to building permits to letters of reference.  https://www.webstaurantstore.com/article/54/how-write-food-truck-business-plan.html