The term Business Model became an overused buzzword during the dotcom boom. In fact, poorly thought out business models were the downfall of many of those businesses dotcoms. However, the idea of the business model dates back to the earliest days of business; it merely describes the way in which a company makes money. Today we’ll discuss what your food truck business model must answer.
There is very little consensus on exactly what every food truck business model should include. Some feel it should cover every detail of the truck’s operation, while others believe it should simply answer the question of how you intend to make money from your truck. You can create a food truck business model that is specific enough to avoid being reductionist but selective enough not to overwhelm by answering these three questions.
3 Questions Every Food Truck Business Model Must Answer
- Why would someone want to buy something from your truck? Identify your customer value proposition.
- How will you make money selling it? Articulate your profit model. How many customers need to buy to become profitable but also include where, when and how you will be selling from your food truck.
- What are the important things you need to do to succeed with the plan? Identify which company resources and which processes are essential to delivering your customer value proposition.
By answering these questions, your food truck business model will explain how you deliver the value, what kind of relationships you need to establish with your customers for long term sustainability of your customer value proposition, what key activities you need to perform and what key resources you need to have to create/deliver/capture value, and what key partners you need to do all this.