Most food truck failure comes more from poor strategy execution than during the formation process. Setting unrealistic expectations, including initiatives that can be measured is one of the major causes of food truck failure. The rest of the common reasons for food truck failure are: lack of discipline and planning, inability to pivot for market shifts, lack of understanding and lack of company-wide buy in.
5 Common Reasons For Food Truck Failure
Lack of execution and planning
Immediately after the business planning process is finalized the ensuing steps for implementation need be scheduled. The business planning process can be drawn out and cause burn-out. Unfortunately in most cases if you don’t take action steps immediately and set dates to follow-up your business will never get traction.
Not pivoting for industry shifts
The food truck industry can change quickly and it is possible that your existing business plan may need to be modified in as little as a month’s time. Don’t become so attached to your concept that you fail to see changes in your market or industry-wide. Food truck vendors need to periodically review your business plan to see if there have been any industry shifts. If there are you need to reassess your strategy and consider making any necessary changes.
Lack of understanding
Communication and education are vital components for a successful food truck business. Creating employee knowledge is key in effective communications process. Employees must learn about and understand your goals, if they are to be part of help implementing them.
Lack of buy-in
Not only does your entire food truck staff understand your business goals, but they also need to agree with those goals. Vendors must help employees set individual and team goals that are consistent with their food truck’s success. Personal development and incentive plans should be customized to help achieve your goals.
Evaluation & Staying on track
I have always suggested that food truck vendors hold quarterly or semi-annually to review the progress and discuss possible changes that should be made. If your food truck goals are not being made, figure out why and do not be afraid to modify goals if the true numbers are proving them to be unrealistic.
It is much better to hit a smaller sales goal than to have not hit any goals at all. Build confidence with success and this confidence will allow you to achieve your milestones. Build your food truck business slowly and firmly.
The Bottom Line
If 50% of new businesses fail, then 50% of new businesses can succeed. Starting a food truck business is exciting that requires a clearly defined, delicious menu and a strong market demand for it. Whether you desire to start a mobile food business or you’re already running a food truck, you must understand that success depends on careful planning and sound fiscal management that begins prior to hitting the road and continues throughout the life of your food truck business.
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