Do it the way your Uncle did it. Save your money and then build it
Well I’ve been in the restaurant business ever since I started working and I’ve been managing for around 6 years. My plan is tacos of various types using pulled meats to keep my cost low. I’ve had a few previous supervisors that wanted to open something up wit me as a partner, but waiting on someone to hand me a restaurant doesn’t seem to be happening any time soon. So I’ve been talkin to a buddy of mine which is basically my right hand man in the kitchen and I think we can make something happen. But being 26 I don’t have a whole bunch money saved up and don’t really know a lot of people investing money, so just trying to figure out if there is something I can do to make it happen. I know some people that could help me build it from and gutted out trailer, but don’t know how much money that will actually save in the long run and then I’m relying on too many people. My uncle has been doing it or 4 years now and with some advice from him and tasting he competition in my town I think I have a shot. He had money saved up and built his himself though
If you’re serious, the first thing you need to do is write a Business Plan with reasonable assumptions in your Pro Forma. Without it, you plan to fail. I can’t imagine that any investor who has a lick of sense would give money to someone who didn’t even take the time to write a Business Plan.
Food businesses can be very attractive to the people who have never been in that business.
What makes you think investors would put money into your business?
[If you are talking about your family/friends as investors, that’s a different option]
Here are the questions you may wan to ask for yourself:
Who else would be cooking with me?
How much food can I cook per day?
How many people love what I cook?
Do I need hire temp employees or call on friends to help?
Going to a bank for loan is hard these days.
But you need to have enough capital to begin with. This is a must for any business.
Then you must survive running your business the first year. – This is very hard if you took bank loans.
Most importantly you must find affordable marketing & advertising services to position yourself better.
This subject was mentioned on a business radio show just yesterday (their website is barryandkim.com , I think). Almost all small non secured small biz loans are now via cash advance on a credit card. It costs as much in labor and administration for a bank to originate a $20,000 loan as a $250,000 loan, so banks avoid small loans, with the possible exception of credit unions. If you follow previously posted advice and start with all used stuff, I don’t see how you can’t get started for under $20k. I hear of folks starting for less with a rented truck. This is the time of year where the ice cream truck guys are looking to rent trucks. Why not work for one of those guys this summer, and get some self employed experience???
If you’re serious, the first thing you need to do is write a Business Plan with reasonable assumptions in your Pro Forma.
This is such an important step. Without it, you won’t really know how much capital you actually need.
Start at the beginning.
What kind of food truck business are you wanting to start?
Different businesses have different $$$ requirements.
I actually raised money using kickstarter and gofundme to get my truck started. SBA loans are good to look at too.
Think used everything + a little sweat equity to get it in shape cosmetically.
See if leasing companies have any repos they’d like to re-lease to you. If so, negotiate hard; you would be in the stronger position.
I’m trying to find different way to start up my business to see which would work best for me. I don’t really have enough money to start it up on my own. I know the idea of investors sounds good, but from a food truck standpoint would that be a viable option? Also I know the bank just doesn’t give out start of business loans anymore and if they do it’s not often.. Has anyone gone through that process? I live in Florida by the way if that changes anything. Thanks
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