Everybody remembers waiting for the ice cream truck on a hot summer day. Look around in most major cities and you will see hot dog and shish kabob vendors, pretzel carts, and fully-equipped catering trucks that provide the works for hungry patrons. A mobile food business can be profitable when your service meets a need. Once you find a market niche, you will be well on your way to setting up your mobile food operation. The rest is small potatoes. Follow these guidelines to get start your new enterprising venture.
Instructions
Business Research
1. Estimate your start up costs and decide if you can afford the initial investment in this business. The main things you need are a reliable vehicle, licenses and insurance. Inventory and personnel can be purchased day-by-day with profits.
2. Investigate mobile food franchises. If you choose this option, you will get a blueprint, business plan and support from the franchiser. Depending of the type of mobile unit, you can get in the door for less than $10,000 for a simple coffee cart or pretzel business. Of course, you can aim higher, but the franchise fee will go up.
3. Survey the competition to find out what services are already available in your area. Identify the gaps where your business could possibly profit. Look for ways to provide better or different food options, like mobile lunch sandwich delivery or breakfast muffins for office buildings or schools with limited food options nearby.
4. Visit a few potential venues and observe the traffic at each. Identify routes or locations that you think will be profitable. Consider starting at sports events and festivals to test the waters.
5. Develop your marketing plan based on the results of your research. Choose your advertising methods and draft your primary communication documents, including your letterhead, business cards and signs for your mobile unit.
6. Get prices for insurance. In addition to the insurance for the vehicle you use, you must have insurance that protects you from lawsuits that customers could file. Your state may also require additional insurance.
7. Learn the basics of food safety and food preparation. Check your Department of Health, the library and the U.S. Food and Drug Administration for updated laws and restrictions that may apply.
Business Legalities
8. Check the licensing requirements for your state. The city or state Board of Health usually issues food handling permits.
9. Register your business with the city and state as soon as you choose a business structure.
10. Consider incorporating to protect your personal assets and to enjoy tax benefits. Business license requirements differ in every state.
11. Get an Employee I.D. number from the IRS. Request it by phone for faster service.
Start-up and Operations
12. Assess your business skills. You must also be able to provide records to support your IRS and local business tax returns. Use the Small Business Administration's free courses and podcasts to learn set up your accounting system, cash flow plan and calculate your profit margin.
13. Find common business forms online or in an office supply store. Register at Assist Entrepreneur to get a full suite of free forms, a planner, calendar and business books that will help you move from one step to the next in your business.
14. Locate suppliers for any equipment that you will need for food preparation, transportation and delivery. Request prices and review their payment terms and contract options. Price inventory for foods that you intend to serve and supplies like plates, utensils and paper goods.
15. Create your menus and decide on your pricing. Keep your cash flow and profit margin in mind.
16. Set up a schedule for your food delivery route, with estimated times and days, if these will vary.
17.Start your mobile operations. Review your marketing, personnel, record keeping and cash flow plans regularly to see if you are on track for success. Refine and revise your operating plan as you get experience with your market.
Tags: your business, cash flow, mobile food, your mobile, city state
