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Can You Buy a Food Truck Without your Own Money?

Yes. It is possible to buy a food truck in the United States without your own money but you have to understand that it is not going to be an easy task.

In the United States, there are numerous lenders who are willing to offer financing for the purchase of a vehicle. You can find food truck financing in a wide range of locations, including from physical and online lenders or directly from food truck sellers.

The option you settle for will depend on your needs as well as other business-related factors. A new food truck tends to cost around $100,000 and $175,000.

This is a very massive upfront investment. For a good number of entrepreneurs, the startup funding has to come from outside sources.

Normally, it is possible to start by leasing rather than buying. It is also possible to work with a business partner to make available some of the startup costs in exchange for equity in the company.

4 Ways to Find Funds to Buy a Food Truck

Just as was noted above, it is very much possible to find funds to buy a food truck in the United States. So if you are looking to buy a food truck without your own money, below are creative ways to consider;

  1. Restaurant Incubator

Restaurant incubators have proven to be a viable launching pad for new businesses, offering a menu of services and advice to people who require more industry insights.

They’re mostly large commercial kitchens that groom potential entrepreneurs and ensure they learn the ropes of food truck ownership, ranging from training on commercial kitchen equipment to insights on licensing and launching.

Howbeit, note that each incubator functions differently and some might even offer access to startup funding, but they either charge a small recurring fee, rent kitchens by the hour, or receive a stake in your future earnings.

  1. Crowdfunding

This is another option that has grown more popular in this modern age. It comes with certain perks, at least it lets you test the marketability of your menu items, the type of food you’re selling, and even your logo.

If you’re not very sure about your concept, this is your opportunity to communicate with supporters in a way that no other funding option allows.

Aside from helping you modify or perfect your idea, requesting comments and feedback will double as marketing exposure.

Platforms like Kickstarter, Indiegogo, GoFundMe, AngelList, and Patreon charge a reasonable fee, and fewer strings are attached than with banks and investors.

  1. Local Restaurant Association

Local restaurant associations have really not been used to the fullest, especially as a source of small business support. These associations were established to lobby local governments on behalf of the food service industry.

However, many also do not know that they offer a vast amount of resources to ensure that members can attain success in the food service business. Free training programs, legal advice, and networking events are many of the things they offer.

Also note that they can help with negotiating discounts on credit card processing fees, payroll fees, workers’ comp insurance, and property and liability insurance.

  1. Find an Investor

This is another valid option and can prove to be quite beneficial especially if you can make the best out of it. A well-detailed food truck business plan will get you in the door. One thing to realize is that investors want to understand how your business solves a problem and how it will fill an unmet need.

Although you will be expected to have your financial facts and figures in line, market research will be imperative to ensure that you can offer valid replies to those burning questions.

You can also choose to raise funds from friends and family. Chances are they are unaccredited, which is fine but don’t forget that the SEC limits the number of unaccredited investors you can have.

Steps to Buy a Food Truck Without Your Own Money

It can be quite challenging to venture into the food truck industry, and doing so without your own money makes it more challenging. Nevertheless, there are options available for you to ensure you can achieve your aim of starting a food truck business. Below are the steps to follow;

1. Conduct Market Research

This is indeed the first step in the process as you have to ensure you adequately understand your local market as well as the niche your food truck can fill.

These are some of the things your investors or financial institutions will want to see in your business plan. If there are dozens of trucks selling burgers, it is important you choose a different food niche.

2. Understand Local Laws

Every state and city has varying rules and requirements especially when it comes to food trucks. Most often, you’ll need to get licenses and certifications, but you also need to understand all the rules and permits that govern where you can park and serve food.

3. Develop a Business Plan

Every business needs a good business plan. As such, it is important to write down your plan for starting and growing your company and include the necessary information.

4. Find Funding

Since you have no money, this will be the right time to start seeking funds to start your business. Ensure to consider all the options noted above. Also, take your time to understand your business and evaluate your options. This will ensure you do not handicap your business by making the wrong decision.

Conclusion

It can be quite challenging to venture into the food truck industry, and doing so without your own money makes it more challenging.

However, just as it was noted above, it is possible to buy a food truck in the United States without your own money but you have to understand that it is not going to be easy.

Keep in mind that you can find food truck financing in a wide range of locations, including from physical and online lenders or directly from food truck sellers. The option you settle for will depend on your needs as well as other business-related factors.