It is never easy to close a business you’ve poured so much time, effort and money into. However, knowing when it is time to shut down your food truck business is one of the key traits of a great entrepreneur. One failed food truck hardly defines your culinary career and the restaurant industry has proven this.
So, how do you know when it’s time to shut down your food truck and try something different?
3 Signs It’s Time To Shut Down Your Food Truck Business
- You need to work 24/7. Starting a food truck business requires long days and nights. However, working 24/7 with no end in sight is not sustainable for anyone. If you cannot get out of this type of cycle, you need to change gears, either by shutting the truck down or hiring help.
- No growth. You can’t expect your new food truck to be an overnight success. It takes time to develop your brand, attract customers and create market awareness. While there’s no specific timeline for profitability, the goal of any food truck is to make a profit. If you have reached the point where your food truck business has continually stagnant or declining growth, it may be time to close shop and move on.
- Fun is gone. The most successful food truck vendors truly love what they are doing. Life is too short to spend your time on something that doesn’t bring you joy. If running your food truck is weighing you down, it is time to take a hard look at moving on.
How To Shut Down Your Food Truck Business
When you are ready to close your service window, you must follow several legal steps to properly shut down your food truck business. The goal is to cut all ties as quickly and smoothly as possible.
- File dissolution papers with the state. If you have been operating your food truck business as a corporation, LLC or partnership. Otherwise, you will still be expected to file an annual report.
- Pay off any debts. In most cases, you’ll need to settle your business debts with your suppliers before you can distribute any assets. Consult with an accountant and attorney if you aren’t able to pay off your loans and debts.
- Close your business federal and tax accounts. You need to file your final tax return. In addition, you will need to contact the IRS to close your employer identification number (EIN).
- Cancel vendor licenses and permits. When you shut down your food truck business, you will need to cancel your vendor’s permit or any other licenses and permits you hold in your area. Be proactive about cancelling these right away, as you can still be assessed fees if the city doesn’t know you’ve shut down your food truck business.
- Notify your business partners. No doubt you have already figured out how to shut down your food truck business with your customers, but you should also take the same care with any vendors and suppliers you have worked with. After all, these are the people you may want to work with you on your next project.
RELATED: Why Do Food Truck Businesses Fail?
The Bottom Line
If you have been considering closing your food truck business, take some time and assess the situation, then make sure to close all the legal loop holes. Once you have dissolved your food truck business with local cities, your state and the IRS, don’t look back. You’re ready to focus your attention on the next big adventure. Good luck!
If you’ve shut down your food truck business we’d love to hear any additional tips you may have. You can share your thoughts in the comment section, our food truck forum or social media. Facebook | Twitter