Most of us dream of becoming our own boss, but few ever take the opportunity. Food trucks are becoming consistently more popular, with food truck coverage especially dense in the western United States. They can be a realistic and highly viable means of economic success for the right individual.
What Is a Food Truck Concession?
You may have seen these trucks and food trailers around town, selling their occasionally award-winning cuisine directly to the consumer. There’s a good reason it seems like there’s more around every year: There are! They recently saw an 8.4 percent growth rate over five years and to become a more than $2 billion industry.
What Do I Need To Get Started With a Food Truck?
One thing above all else is the ability and willingness to work hard. If you have a proven history of working 110 percent, you are halfway to your new dream job. The other half is split between good product and financial needs.
You need to have or obtain a not-insignificant amount of starting capital. You also must have good commercial insurance with food truck coverage. You need permits at least on the local level and possibly for the county or state as well. And you may need employees, who also require insurance.
Most certainly not least, you need a good product and good service, all at a tempting price. Your first advertising will probably be based on word-of-mouth about your product. It should fit in well with the local cuisine and match the culinary and financial history of the key locations you pick.
How Much Will This Really Cost Me?
While the real price can vary dramatically based on your location, pre-owned equipment
Financing May Be an Option
One option that has worked for some is family financing. If available, this may be a viable choice, but it can be difficult or embarrassing to get. More often, families can help pool together the seed money to begin the process, allowing the right person to seek outside financing.
But there’s good news: If you are proud of your work history yet have a less-than-stellar credit score, you may be surprised how easy it is to increase your access to credit. With a responsible work record, moderate credit score and a relatively small amount of seed money, financing becomes very possible. Lenders are always looking for a good opportunity to lend to people with a proven track record.
Insurance Is a Critical Component for Successful Food Truck Operation
No matter what your other plans are, you should have insurance. A good commercial auto policy with food truck coverage is essential, and other forms may be required, including workers’ compensation if you have any food truck employees. You need to consider many other forms of insurance as well. Talk to an independent agent, who should be happy to help you with all your permit and insurance needs.
