I’ve said it once and I’ll say it a million times. If you want the best chance of success in the mobile food industry, you MUST have a food truck business plan.
To back up this assertion, here are…
20 Reasons You Need A Food Truck Business Plan:
- To prove that you’re serious. A formal business plan is necessary to show all interested parties (employees, investors, partners and yourself), that you are committed to building your food truck business.
- To establish milestones. The business plan should clearly lay out the long term milestones that are most important to the success of your mobile food business.
- To understand the competition. Creating the business plan forces you to analyze the competition. All food trucks have competition in the form of either direct or indirect competitors, and it is critical to understand your food truck’s competitive advantages.
- To understand your customers. Why do they buy when they buy where do they buy? Where don’t they, why don’t they when they don’t? A customer analysis is essential to an effective business plan and to a successful food truck business.
- To establish unstated assumptions. The process of actually writing the business plan helps to bring previously “hidden” assumptions front and center. By writing them down and assessing them, you can test them and analyze their validity.
- To assess the feasibility of your concept. How good is your concept? The business plan process involves researching your target market, as well as the competitive landscape, and serves as a feasibility study for the success of your food truck business.
- To create a revenue model. How exactly will your food truck make money? This is a critical question to answer in writing. Documenting your revenue streams will address challenges and assumptions associated with operating a food truck in your area.
- To determine financial needs. Do you need to raise capital and if so, how much? The business plan creation process helps you to determine exactly how much capital you need and what you will use it for.
- To attract investors. A formal business plan is the basis for financing proposals. The business plan answers investors’ questions such as: Is there a need for this concept in my area? What are the financial projections?
- To reduce risk of the wrong concept. The process of creating the business plan helps to minimize startup costs. Writing the business plan helps you assess the needs of your community versus similar but different concepts.
- To force you to research. What are the big trends in the food truck industry? What are the greatest threats? Is your local market growing or shrinking? What is the size of the target market for your menu? Creating the business plan will help you to gain a wide understanding of your marketplace.
- To forecast staffing needs. After completing your business plan, you won’t be surprised when you become short handed. Your business plan provide you with a road map for future staffing needs.
- To attract staff. To attract and retain top quality talent, a business plan is necessary. The business plan inspires employees that your food truck concept is sound and you understand how to meet your goals.
- To plot your course. I’ve always said that the business plan provides a road map from which to operate, and to look to for direction. Without a business plan, you may shift short term strategies constantly without looking ahead be able to meet your long term goals.
- To attract partners. Partners also want to see a business plan, in order to determine whether it is worth partnering up on your food truck concept.
- To position your food truck brand. Creating the business plan helps to define your food truck’s position in your local market. This definition allows you to explain your food truck business and position your brand to customers, investors, and partners.
- To judge your success. A business plan allows you to compare actual operational results versus the business plan itself. It allows you to see whether you have achieved your goals.
- To pivot based on changing conditions. If your current sales and operations aren’t working, you can rewrite your business plan to develop new ideas.
- To document your marketing plan. How are you going to reach your customers? How will you retain them? What is your marketing budget? What prices will you charge? A documented marketing plan is essential to the growth of your food truck empire.
- To uncover new opportunities. Through the process of brainstorming you will likely see your food truck in a different light. As a result, you will often come up with new menu ideas and marketing strategies.
While there may be other reasons to create a food truck business plan, we hope these 20 points are enough for both new and existing food truck owners. We’d love to hear your thoughts on this list. Facebook | Twitter