Benefits of Food Truck Business for the Communities
Food Truck Business brings a lot of value to the communities and customers that they serve. The most important aspect of food trucks for the customers is that the food is delicious and cheap. That is the reason why people love it. Food trucks basically offer a lot of room for creativity and it offers gourmet creations, as well as, exotic ingredients to its customers. Most importantly, they are convenient whenever someone is looking to have a quick snack, and they are also perfect for casual dining.
Advantages of Food Truck Business
Food Truck Business offers a lot to first-time business owners and entrepreneurs. However, there should be a proper business plan to go with. Food Truck business offers a number of benefits to those first-time entrepreneurs and they are easier to maintain too. First of all, the investment in this business is significantly low if we compare it with the sit-in restaurants, and therefore, the risk factor is also low. Similarly, the overhead cost for these businesses is almost non-existent as compared to bricks and mortar business. It also provides with the opportunity to build a brand before expansion. It is also a good way to learn about the industry and it comes with an additional benefit of having a 360-degree control over the business.
Risks involved in the Food Truck Business
Just like any other business, Food Truck Business also comes with its own set of risks. There is always a risk of regulations where a number of states and municipalities have strict rules and regulations pertaining to such a business. Similarly, some local restaurants might also lobby against the business if they feel it is affecting their business. This makes this business a challenging one. Another risk it poses is the low margins for the business. The weather is also one of the negative factors, which can negative hit the food truck business.
Characteristics for Success of Food Truck Business
The perfect idea of food preferences and location are the key to any Food Truck Business. The Food Truck owner should have a proper consumer insight about what does customers likes to have as a casual dining option and all the food items should be very scrumptious and delightful on its menu. Similarly, it is crucial to always select locations and events where you can easily get a fair number of customers. The owner should also have the proper idea of key slots to sell the food items and should be well prepared to serve at those times more quickly.
Type of Entrepreneurship
Food Truck Business falls under the category of Small Business Entrepreneurship as these are the people that own his/her own business that is relatively small in size and employs very few people. They are likely to hire family members, friends or local employees. Most of these businesses are barely profitable in the beginning and start to pick up pace after spending a lot of time. These businesses are also likely to fund their business through their savings, family's help or assistance through business loans.
Additional Support for Success
Food Truck Business cannot operate in isolation and additional support is essential for running such a business. The additional support is required to assist these small business owners with the process of obtaining licenses and permits. Similarly, they obtain guidance in terms of ensuring food safety protocols. They also get help to find attractive locations and also in terms of marketing their brand on social media among other benefits (ABC News, 2013).
Recommendations for the Business
My recommendations for such a business are as follows;
The business should be opened with a solid business plan and comprehensive market analysis.
The business should be clear in vision and know all about its potential customers. It should also be open to opinions and suggestions.
A proper research should be conducted before selecting the location for the business.
The business should be able to establish a brand as having an identity is the key for such a start-up.
The business should have a top of the line chef as the quality of food is the backbone of the business.
The business should be able to utilize social media and other below-the-line promotional tools to advertise its brand.
References
