Developing the perfect business plan is often a challenge for prospective food truck owners. However, one of the biggest challenges standing in the way of a good business plan is the fact that no two members of your audience are looking for the same thing when evaluating a business plan. To help vendors struggling with their business plan, today we’ll share six questions every business plan should answer.
Questions Every Food Truck Business Plan Should Answer
Starting and building your own business can be overwhelming. And while many food truck vendors cringe at the mere mention of drafting a business plan, it is a great exercise to get your business back on track and to plan for future growth.
What is your competitive advantage?
What will give your food truck a competitive advantage over your competition? The answer should be relative to food trucks or restaurants that offer the same or similar menu items and services as well as an analysis of the competitive landscape. Explain what intellectual property, patents, trademarks, copyrights or trade secrets, that will give your truck a boost over competitors. If the competition holds intellectual property rights, show how you will avoid infringing on it.
Is it in a growth market?
The key to any successful food truck business is to grow in a growth market. Your business plan should articulate how you will enter the market, apply any financial investment to prepare to grow quickly, and participate in the expansion of a food truck industry that is thriving, with a better-than-average growth trajectory.
Will customers pay for your menu?
How do you plan to get enough paying customers to stay in business and pay your bills. Show readers how do you plan to feed and clothe yourself and where you plan to sleep while you’re getting food truck off the ground.
How will you staff your truck?
Show that you recognize the need to staff the production, sales and financial parts of your food truck business. Establish roles for your truck as if it were mature and successful. Multiple roles will be assigned to you at first if necessary, but filled with the right people as your business grows. Show readers that you’ve put some thought into this process. It shows that you recognize that you won’t be able to do it by yourself. It also shows that you recognize your own limitations.
Is your menu innovative?
Is the idea for your menu and service innovative? By innovative, you need to show if your truck will be centered around a new twist on already-existing cuisine delivered in a new and compelling way. If it is inventive, can the concept be protected against new or existing competition?
Are your plans and goals realistic?
The final question your food truck business plan should answer is if it is realistic and not something not achievable. Show readers that you have reasonable expectations. To play it safe, stay on the conservative side when projecting your revenues and growth. Provide projections on what your food truck will do in the first year, second year, third year and fourth year. Show sales, expenses, and share the projected bottom line as the business grows.
The Bottom Line
Whether your objective is to find an investor, get a business loan or just improve the way you run your food truck, your business plan should answer these key questions. Remember, there is no right or wrong answer. Just make sure to address these questions to help build a roadmap for your mobile food business. And, of course, the better the map, the greater the likelihood that you’ll reach your destination.