1. Research the Market in Your Location

Before creating a firm business plan, it’s essential to ensure your idea is likely to have a place in the market. Research your location for existing food truck businesses and consider how your ideas compare to what’s already out there. Consider the population demographic and areas where you’ll be able to sell your products.

Laws governing food trucks differ from one city to the next, regarding the hours food trucks can operate and how close they can be to brick-and-mortar restaurants. Research these regulations and consider how they’ll impact your business. 

2. Develop a Sound Business Plan

Every successful business begins with a sound business plan, and a food truck is no exception. Your food truck business plan should include the following:

• Business name, concept, and logo
• Upfront expenses, funding plans, and financing requirements
• Target market and competitors
• How the business structure and operations will be organized
• Financial projections concerning overhead costs (including employees) and potential profits

3. Register Your Business

Your business must be registered for you to apply for funding and vendor licenses. The steps for registering your business in California include determining what type of business you’ll be running (most often a limited liability company, or LLC) and filing legal tax and identification documents. By setting up your food truck as an LLC, your personal assets will be protected from claims against your business. 

4. Get Financing

While overhead for food trucks is typically lower than that of a traditional restaurant, you’ll be facing substantial startup costs. Funding options that may be available for starting your food truck business include:

• Investors
• A bank or government business loan
• A loan supported by the Small Business Loan Guarantee Program
• Personal loans
• Credit

5. Purchase Your Food Truck

Once you have all the legal details in place, it’s time to find and buy a truck. When choosing a food truck, it’s essential to consider its condition and the features that will help you run your business efficiently. Innovative designs and quality build-outs will help gain attention and run your business efficiently. It’s also essential to consider health department inspection requirements before making your purchase.

6. Obtain Necessary Licenses and Permits

The licenses and permits you’ll need can differ by your location. Requirements typically include:

• Brand trademark
• Tax identification number
• Business license and registered physical address
• Food handler permits and health permits
• Food Safety Certification and mobile food facility permits
• Worker’s Compensation insurance

7. Buy Equipment and Supplies

Many of the supplies you need may already be installed in your food truck. Supplies and equipment you’ll need to run your business efficiently include:

• Food preparation, cooking, and serving equipment
• Refrigerator
• Warming and holding equipment
• Cleaning equipment

8. Get the Proper Insurance 

Every business requires insurance to protect against potential liability. The right business insurance can protect your food truck business from lawsuits, accidents, lost income, and equipment breakdowns. No matter what policy you choose, take the time to discuss all aspects of your business with your agent to ensure you’ll have the coverage you need. 

You may choose from the following insurance types:

• Food Truck Insurance: This all-inclusive policy typically includes commercial vehicle insurance, general liability, and workers’ compensation. Custom plans allow you to add other coverages for occurrences like customer illness and property damage. 
• Business Insurance Policy: A business insurance policy includes business liability, commercial property insurance, and business interruption insurance. You’d also need to add commercial auto insurance. 
• Additional Add-Ons: To get the level of protection you need for your food truck business, you may wish to purchase additional policies that cover issues like equipment breakdown, employment practices, food spoilage, and liquor liability. 

Make Your Food Truck Dreams a Reality With Legion Food Trucks

If you’re planning to start a food truck business, we can help. Legion Food Trucks has gathered some of the best information on initiating a business, including how to name your business, develop a solid plan, and more. Contact us today to start your food truck business on the right foot.

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Today, more consumers want food options on-the-go. If you don’t believe it, the average annual income of roughly 30% of food truck owners is between $150,000-$199,000. With that said, food trucks have become the perfect solution with their accessibility and the ability to provide consumers with on-the-go consumption.

If you’re preparing to start a food truck business or considering launching one, read on to learn how you can start a food truck business without capital. 

4 Ways to Start a Food Truck Business Without Capital 

The food truck industry is certainly growing. But many people who step into this industry have little capital or no capital at all, resulting in a difficult start. The good news is, it’s possible to get your food truck business off-the-ground without much capital. Here are 4 ways to help you get started. 

1. Start With a Food Stall

Did you know that many individuals start with a food stall before investing in a food truck? A food truck can be costly. In fact, these trucks can range from $15,000 to upwards of $100,000. 

Starting with a food stall is a great choice if you’re ready to get going but don’t have the capital to make that kind of investment. You can begin selling your food using a stall and consider doing pop-ups in different areas to help get the word out.

As your business grows, you can begin putting money aside dedicated to purchasing your first food truck. 

2. Rent Equipment

Another option is to rent the equipment you need until you can gain enough capital to buy it outright. This can be especially helpful for food trucks that specialize in certain areas and need specific equipment. 

For instance, if you run a food truck that specializes in coffee, you will need things like a coffee and espresso machine to help you run your business. These machines can be costly depending on the brand. Renting can help offset those costs until your truck generates enough revenue. 

3. Get a Credit Card with a 0% APR

If your credit is in good health, then consider obtaining credit with 0% APR. At 0%, you won’t be charged interest on your purchase over a period of time. This means that you can purchase the things you need to get your food truck up and running without incurring additional fees.

With that said, if you choose to use a credit card to fund your food truck business, be sure to set a budget and have a plan of action on how you plan to pay the credit card off in a timely manner, otherwise it could be risky. 

4. Crowdfunding 

You’d be surprised at who is willing to invest in your food truck business. If you have a solid vision and business plan, you should consider crowdfunding. Crowdfunding has become extremely popular over the years for startup companies that need help funding their business. 

Think about what makes your food truck business unique, create your pitch, check over your business plan, and find the right crowdfunding platform that fits your needs.

Starting a food truck business is a rewarding experience. If you are looking for a truck that represents your business, contact us today to learn how we can custom-build your truck to fit your needs.

The post Starting a Food Truck Business Without Capital appeared first on Legion Food Trucks.

We also help food truck business owners who partner with us obtain the needed permits and licenses. Below, we will look at what legal documentation you need before opening your food truck window to the masses.

Health Permit for Food Truck Business

Regardless of the cuisine you will serve to customers, you need to have a health permit. Health department officials have to inspect, review, and approve your truck before you can start working. They will request you to submit specifications for your vehicle, the menu, details of the equipment you use, and written procedures of how you handle your food, sanitize surfaces, and clean utensils. They will then set a date to inspect the truck.

To get a health permit, it’s essential you partner with a specialized food truck builder like Legion Food Trucks. Here, we create a controlled environment in your truck for you to safely prepare, store, and distribute quality meals. We will assist you in obtaining a health permit when you buy a custom food truck from us.

Food Truck Business License

Every food truck owner needs to have a basic business operation license before they can start running. This license allows the authorities in your city, or county to identify your business and collect tax, and assure the public that you have complied with all health requirements. Since the license requirements are subject to change, it’s advisable you join a local food truck association to stay informed on any amends or directives that may affect your business.

Employer Identification Number (EIN)

If you plan to hire employees to work at your food truck, whether full-time or part-time capacity, you will need an employer identification number. The EIN is a federal tax ID given by the Internal Revenue Service (IRS) to identify your business and ensure you comply with tax requirements. Even if you plan to run the food truck on your own, you will need to obtain the EIN.

Parking Permit

The fact that you have a mobile food business doesn’t mean you can park your truck anywhere and start operating. Most cities only allow food trucks to park in specific areas for a particular period, and you need a parking permit to operate in that zone. You can consult with the relevant authorities to know which areas are allowed and which ones aren’t and learn about the distance you need to keep from other businesses.

Vehicle License

Remember your truck is a motor vehicle and it will need a valid vehicle license. The driver, too, needs to be licensed. The license the driver should obtain will depend on the weight and length of the truck. In some places, you may need to have a commercial driving license if you have a food truck.

Fire certificates

If you have installed cooking equipment to prepare food inside the truck, it will need to be inspected by the fire department. They will also educate you on the best practices and routinely inspect your mobile food facility to see whether you are following their recommendations.

Partner with Professional Food Truck Specialists

A mobile food vending business is a promising venture if you invest in a specialized food truck. However, as seen above, there is a lot of paperwork involved. Fortunately, you don’t need to put your dreams on hold because you are unable to assemble the right documents. Partner with Legion Food Trucks, and we will help you get the necessary permits and licenses in a shorter time.

If you ever need a customized and fully branded food truck fitted with the right equipment and electronics, contact us today!

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Microloans

They are the most lenient and most accessible loans to qualify for. They are offered by individuals rather than banks to business-minded people to empower them to build and operate a business. You can use a microloan for nearly any purpose, though, you will need to adhere to meet stricter necessities to be eligible for this category of food truck loan. This type of loan is business-friendly as far as repayment terms are concerned.

Crowdfunding

The crowdfunding campaign is the scenario where the starter is funded by small donations by well-wishers to raise the required amount to accomplish their objective. This option can be an excellent option for entrepreneurs who have a strong bond in the community they want to serve. It’s advantageous because it helps the starter to create awareness before opening the shop. The people who fund may also ask very little in return. If you can’t qualify for other funding options and want to build your credit before applying for other loans, then a worthwhile option for you to access some capital is crowdfunding.

Business Loans

This option can be tricky because you are required to lay down some cash deposit upfront before getting approved for it. You are finding it hard to get start-up capital for a food truck business; business loans are available to suit your business idea.

Business credit cards

This is paramount for funding routine food truck purchases and supplementing other loans. With a business credit card, you will be able to pay for daily food truck expenses, whether small equipment purchases, inventories, or software subscriptions.

Reasons Why You Should Invest in a Food Truck

Initial Investment

The amount required to start a restaurant is very high. This is a discouragement to those that have a dream of starting one. To avoid such a hindrance, one may invest in a food truck business, which is relatively cheaper.

Testing Your Location

The food truck offers flexibility. Your business would not be limited to one location. This mobility will allow you to know the best places and markets for your food.

Building Your Following

Most diners are not willing to drive to a restaurant. Only committed customers may be ready to trip to your location. This means that you can bring your mobile kitchen to them. After they have tasted your food, they may become your loyal customers.

Are you itching and willing to start up a food truck business today? Looking for loan options that will bring your idea of starting a food truck business into reality? Legion Food Truck is ready to help you build your dreams. contact us for more information.

The post Starting a Food Truck Business? Here are Some Loan Options appeared first on Legion Food Trucks.