Do you want to know exactly how much it cost to start a food truck business? If YES, here is a detailed cost analysis for starting a food truck business and raising finance.
Having provided you with a:
- Food Truck Industry Overview
- Market Research and Feasibility
- Food Truck Business Plan
- Food Truck Marketing Plan
- Food Truck Name ideas
- Food Truck Licenses and Permits
- Cost for Starting a Food Truck
- Food Truck Marketing ideas
We will consider how much it cost to start a food truck business from scratch including the operating costs.
One of the reasons why entrepreneurs back down from starting the business of their choice is the financial implications needed to start the business. It is no wonder that many business owners look out for angel investors. This is so that the burden of the financial implication might be less.
How Much Does It Cost to Start a Food Truck Business?
One good thing about starting a food truck business is that you have the options of starting it on a small scale with a small truck and perhaps just selling gourmets and soft drinks, amongst other things. You can choose to start on a medium scale, or you can as well choose to start on a large scale by acquiring several 40 ft. trucks, with standard kitchen facility and cooling system.
The bottom line is that even if you have the financial capacity to start your food truck business on a large scale with several 40 ft. fully equipped trucks, it is still very important to conduct your market survey and feasibility studies. It will help you to make a wise business decision.
Sometimes it is safer to start a business small and then grow it to as big as you want it to be. Below is the detailed start – up cost for small scale food truck business plus operating expenses in the United States of America;
- Food truck (includes wrap & equipment) – $85,000
- Initial product inventory – $1,500
- Permits and Licenses – $300
- Website – $700
- Register / POS – $500
- Uniforms for employees – $500
- Paper products – $250
- Miscellaneous Expenses – $500
- Pots, Pans, and other cooking utensils – $1,500
- Fire Extinguisher – $150
Total Startup Cost – $90,300
- The estimated cost of starting a medium scale food truck business in the United States of America is $200,000 and above.
- The estimated cost of starting a large scale food truck business in the United States of America is from $500,000 and above
Please note that the total cost depends on the numbers of trucks you intend starting with and the numbers of employees that will be under your payroll.
Financing your Food Truck Business
Raising start – up capital is perhaps one of the major concerns for entrepreneurs; it can be challenging raising capital to launch a business idea. Your idea must be workable and promising for you to secure finance from financial institutions or from investors.
The first thing to put in place before sourcing for start – up capital for your business is to draft a detailed business plan. With a good business plan, you can easily convince investors to invest in your business. The truth is that no bank can give you a loan if you don’t have a good and workable business plan. There are several options when it comes to raising money to finance a start – up business. Some of the options are;
- Raising money from personal savings and sale of personal stocks
- Raising money from investors and business partners
- Applying for loan from bank
- Applying for business grants and seed funding from donor organizations
- Sourcing for soft loans from family members and friends.