Women In Small Business: Everything You Need To Know
Women in small businesses still face unique challenges, from gender biases to difficulty accessing commercial funding. Statistics from the... Read More
Does the truck you are buying meet the legal requirements in the area in which you are planning to launch your startup?Please note that this precaution applies to both used and new vehicles. Your food truck will have to undergo regular health and safety inspections. If it doesn’t meet these regulatory requirements, it could mean additional costs as well as lost sales while you make the necessary changes to the vehicle.
This can also be rather complex, tedious and a bit expensive, but in the end it is worth it. There are several things you need to do:
Concept | Cost |
---|---|
Food truck (including the food truck wrap and equipment) | $75,000 |
Regulatory compliance—permits, and licenses (could vary widely) | $28,000 |
First batch of ingredients and paper plates, etc. | $2,000 |
Website | $1,000 |
Fire extinguisher | $300 |
Cash for additional startup expenses | $2,500 |
Total | $108,800 |
These will vary with your sales. But you can expect to spend about 28% of your total revenue on food costs.
Set aside about 25% of your revenue to pay your workers.
The amount you spend on fuel will depend on how far away you’re going to park your food truck for the night. If you’re lucky and you don’t have to drive too far, you can keep this cost down.
Some cities require food trucks to park in metered spaces while others don’t. Check the rules that will apply to you. You must also ensure that you don’t park in a “no-parking” zone. This could lead to fines and lost time.
If you’ve bought a new vehicle with kitchen equipment that will be used for the first time, your maintenance costs will be minimal. But it’s a good idea to set some money aside each month for this expense. That’s because when you do have to incur these costs, they can put a serious dent in your monthly budget.
There are several policies that you must buy for your food truck business. A business owner’s policy can protect you from business interruption and lost income. Also, consider purchasing workers’ compensation insurance as well as a policy to cover you for vehicle theft and damage. Expect to pay a total of about $3,000 per year for all these policies.
What’s a food truck commissary? It’s essentially a place where you can park your vehicle when it isn’t serving customers. A commissary can offer facilities for preparing and storing food, water refills, and for cleaning the truck. Costs vary with the location and the extent to which you use the services.
These vary from one city to the next. According to the U.S. Chamber of Commerce Foundation, Denver (CO) is the most entrepreneur-friendly place as far as obtaining permits and licenses for a food truck is concerned. Boston (MA) is at the bottom of the list of 20 cities surveyed.
Apply For A Business Loan!A small business loan from Camino Financial can help your Food Truck run smoothly.We can provide capital to food truck owners who have been active and registred for a minimum of nine months. Our motto is “No business left behind”, so be sure that we’ll do our best to get you the lowest-price loan at the most attractive terms. Get a FREE quote today and know instantly if you pre-qualify. Apply now!
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