July 6, 2023
Adam Hoeksema
Writing a business plan for a food truck can often feel like a waste of time, and many times it probably is a waste of time because food truck owners are simply trying to check a box for a lender or investor. In this article, I plan to help guide you through the process of writing a business plan that will satisfy an SBA lender based on my 12 years of experience in the SBA microloan program, and hopefully provide more than just a check box, but actually provide you with strategic value that will help set you up for success.
In this article, I plan to cover the following:
With that as our guide, let’s dive in!
Why do I need a business plan for my food truck?
You need a business plan for your food truck because your potential lenders or investors asked for your business plan. That’s it. That is why you need a business plan. But it can certainly be helpful to have a business plan simply for the strategic planning value of the process. Before you cash out your 401k to buy a food truck or personally guarantee a federal SBA loan it probably makes sense to spend a bit of time understanding what you are getting yourself into.
What should a food truck business plan include?
A food truck business plan should include an executive summary, business description, market analysis, operations plan and financial plan. Specifically you can see what sections our food truck business plan template includes below:
Food Truck Business Plan Outline
I. Executive Summary
A. Overview of business concept
B. Description of products and services
C. Market analysis and target customer
D. Financial projections and funding requirements
II. Business Description
A. History and Ownership
B. Mission statement and goals
C. Description of products and services
D. Competitive analysis
III. Market Analysis
A. Industry trends and growth potential
B. Target customer description and demographics
C. Analysis of competitors and market gap
D. Marketing and sales strategies
IV. Operations Plan
A. Description of food truck and equipment
B. Menu and ingredient sourcing
C. Staffing and training requirements
D. Health and safety regulations and compliance
E. Service areas and hours of operation
V. Financial Plan
Startup Costs:
Projected Financial Summary:
Annual Sales, Gross Profit and Net Profit:
Key Financial Ratios:
Income Statement:
Balance Sheet:
Cash Flow Statement:
VI. Conclusion
How to determine what food to sell from my food truck?
As you are looking to understand your market for your food truck and determine what type of food you should sell, I wanted to point out a couple of helpful tools to help you understand your market. I would suggest using Google Adwords Keyword Planner to estimate the amount of search traffic for various keywords in your area. For example, let’s assume you are going to start your food truck in Indianapolis, IN and you are trying to decide between pizza, Mexican food, and a BBQ based menu. With Google Adwords Keyword Planner we can see how much search volume there is in Indianapolis for each keyword set which would indicate how many people are looking for that type of food on a monthly basis. This would give you a high-level understanding of your market size. Here is what we found:
In this example, we can see that there are 2,900 monthly searches for pizza in Indianapolis compared to 1,300 and 590 per month for the other keyword phrases. This doesn’t necessarily mean you should start a pizza food truck, it just helps you understand your market size and the demand between different types of food.
Just because there is a lot of search volume for pizza doesn’t mean it is the best opportunity for you, you also have to consider the competition. There is likely much more competition for pizza than there is for BBQ for example. So next I will give you some tips on checking out your competition.
How to analyze the competition for your food truck?
As a food truck you have several competitors. Other food trucks are obviously competitors, but so are stand alone restaurants and delivery services like DoorDash. One way I like to get some competitive intel on competitors is to look at their website (if they have one) and use a service like Ahrefs which will estimate how much website traffic they get.
The NY Slice Food Truck in a popular pizza truck in Indianapolis. I was able to check out their website on Ahrefs and see that they get roughly 450 organic website visitors per month.
We can also see what keywords are driving traffic to their site which could help you determine which keywords to advertise for or compete for:
You can read more about how to write a business plan competitor analysis and what tools we like to use.
How to find good locations to park your food truck?
One secret weapon for food trucks can be finding great locations to park their truck that don’t have other competitors nearby, but have a lot of hungry customers. A good option could be to scout out office building parks or industrial parks that have a lot of workers, but limited lunch options nearby. You can estimate the foot traffic of a specific building with our foot traffic report and get an estimate of the number of workers that a specific office building might actually have.
For example, I used to work at an office building that had very little food options nearby and we would bring in a food truck once a week. Using our foot traffic estimate report we can see that the building had roughly 18,000 visitors last month.
If you divide by roughly 22 working days during the month, we can estimate that there are roughly 1,000 visitors to the building per day, many of which may be potential lunch customers.
How big should my food truck be?
Another question you need to cover in your operations plan section of your business plan is how big your food truck should be. This really comes down to how much you want to spend on the truck and how much capacity you want to be able to have. We built a food truck sales calculator that will help you think through how much capacity your truck might have based on how long it takes you to process an order and how many orders you can work on simultaneously.
How many employees should my food truck have?
The average food truck has 3 to 5 employees according to Connecteam. Working through the food truck sales calculator should help you determine how many employees you think you will need to have to be able to serve the capacity of customers you expect and make sure you have enough employees to avoid any bottlenecks.
How to Create Financial Projections for a Food Truck Business Plan
Just like in any industry, the food truck business has its own set of factors that influence revenue, such as location, menu offerings, and customer demand. Using a food truck financial projection template can streamline the process and boost your confidence. Creating accurate financial projections is not just about showcasing your food truck's ability to generate income; it's about illustrating the financial path to profitability and the realization of your culinary aspirations. To develop precise projections, consider the following steps:
- Estimate startup costs for your food truck, including vehicle purchase or lease, kitchen equipment, permits, licenses, and initial inventory.
- Forecast revenue based on projected sales volume, pricing strategies, and potential catering or event opportunities.
- Project food and beverage costs, as well as labor expenses.
- Estimate operating expenses like fuel, maintenance, commissary fees, and marketing.
- Calculate the capital required to launch and sustain your food truck, covering initial expenses and providing working capital.
While financial projections are a crucial part of your food truck business plan, remember to seek advice from experienced professionals in the food truck industry. Adapt your projections based on real-world insights, leverage industry resources, and stay attuned to emerging food trends to ensure your financial plan aligns with your goals and helps you create a thriving mobile culinary venture.
Example Food Truck Business Plan
Here is the text of our sample food truck business plan. You can download a Google Doc version of this food truck business plan template here, allowing you to customize it as per your requirements. We also provide a video walkthrough to assist you in adapting the business plan to your unique food truck concept.
Table of Contents
I. Executive Summary
A. Overview of business concept
B. Description of products and services
C. Market analysis and target customer
D. Financial projections and funding requirements
II. Business Description
A. History and Ownership
B. Mission statement and goals
C. Description of products and services
D. Competitive analysis
III. Market Analysis
A. Industry trends and growth potential
B. Target customer description and demographics
C. Analysis of competitors and market gap
D. Marketing and sales strategies
IV. Operations Plan
A. Description of food truck and equipment
B. Menu and ingredient sourcing
C. Staffing and training requirements
D. Health and safety regulations and compliance
E. Service areas and hours of operation
V. Financial Plan
Startup Costs:
Projected Financial Summary:
Annual Sales, Gross Profit and Net Profit:
Key Financial Ratios:
Income Statement:
Balance Sheet:
Cash Flow Statement:
VI. Conclusion
I. Introduction:
The purpose of this business plan is to provide a comprehensive overview of the trucking company that is being established. The company's main goal is to provide reliable and efficient trucking services to its customers, with a focus on delivering goods safely and on time. The trucking industry is a crucial component of the economy, and there is a growing demand for reliable and efficient trucking services.
The trucking industry is highly competitive, with a large number of players operating in the market. To succeed in this industry, the company must differentiate itself by offering high-quality services, utilizing advanced equipment and technology, and employing a highly trained and skilled workforce.
The key stakeholders in the company include the owners, management team, drivers, and customers. Each of these stakeholders will play a critical role in the success of the business.
II. Market Analysis:
The trucking industry is a significant component of the economy, with an estimated market size of $700 billion in the United States alone. The industry is expected to grow at a steady pace over the next five years, driven by the growth of e-commerce and the increasing demand for goods and services.
The target market for the trucking company includes small to medium-sized businesses and larger corporations that require the transportation of goods. The company plans to differentiate itself by focusing on delivering goods safely and on time, utilizing advanced equipment and technology, and providing excellent customer service.
The company's main competitors include large, established trucking companies and smaller, regional players. The larger companies have a significant advantage in terms of resources and brand recognition, while the smaller companies have a more personal and flexible approach to customer service.
To succeed in this competitive environment, the company must focus on delivering high-quality services, developing strong relationships with its customers, and utilizing advanced equipment and technology.
III. Services Offered:
The trucking company will offer a range of services, including the transportation of goods, such as raw materials, finished products, and other items, to destinations throughout the United States. The company will utilize a fleet of modern, well-maintained trucks and trailers, equipped with the latest technology and safety features.
In addition to traditional trucking services, the company will also offer value-added services, such as warehousing and distribution, to provide its customers with a comprehensive logistics solution. These services will help the company differentiate itself in the market and provide a competitive advantage.
IV. Marketing and Sales Strategy:
The marketing and sales strategies for the trucking company will focus on reaching its target customers and promoting the high-quality services that it offers. The company will utilize a combination of traditional marketing methods, such as advertising and promotions, as well as digital marketing channels, such as social media and email marketing.
The company's pricing strategy will be competitive, with a focus on delivering value to its customers. The company will also offer flexible payment options, including credit card and electronic funds transfer, to make it easier for customers to do business with the company.
The sales channel for the trucking company will include direct sales to customers, as well as indirect sales through agents and distributors. The company will also participate in industry trade shows and events to increase its visibility and reach new customers.
V. Operations Plan
The operational plan for our trucking company will encompass the acquisition and management of trucks, the hiring and training of drivers, and the dispatch and logistics. To ensure smooth operations, we will focus on creating a strong and efficient supply chain management system and quality control processes.
Acquisition and Management of Trucks:
We will start with a fleet of 10 well-maintained, reliable trucks. Our trucks will be purchased through a combination of leasing and direct purchasing. We will also implement a comprehensive maintenance program to ensure the longevity of our trucks and to minimize downtime.
Hiring and Training of Drivers:
Our drivers will be hired based on their driving experience, customer service skills, and safety records. We will provide comprehensive training to our drivers to ensure they are equipped with the necessary knowledge and skills to provide safe and efficient transportation services.
Dispatch and Logistics:
Our dispatch and logistics operations will be managed by a team of experienced professionals. We will use the latest transportation management software to ensure the timely and efficient dispatch of our trucks. We will also implement a real-time tracking system to monitor the location and status of our trucks and shipments.
Regulatory Requirements and Compliance Measures:
We will ensure that our trucking company complies with all federal and state regulations related to transportation, including the Federal Motor Carrier Safety Administration (FMCSA) regulations. Our trucks will undergo regular safety inspections and we will have a robust insurance program in place to protect our business and customers.
VI. Financial Projections
All of the unique financial projections you see here were generated using ProjectionHub’s trucking financial projection template. Use PH20BP to enjoy a 20% discount on the template.
Startup Costs, Funding Sources, and Future Financing Needs:
Financial Summary:
Annual Sales, Gross Profit and Net Profit
Key Financial Ratios:
Watch hw to create financial projections for your very own trucking business:
Income Statement:
Balance Sheet:
Cash Flow Statement:
VII. Organization and Management
Organizational Structure:
Our trucking company will be structured as a limited liability company (LLC) with two owners. The management team will consist of a CEO, CFO, and an Operations Manager.
Roles and Responsibilities of Key Stakeholders:
The CEO will be responsible for the overall strategy and direction of the company. The CFO will manage the financial operations and reporting. The Operations Manager will be responsible for the day-to-day operations of the company, including dispatch and logistics.
Legal and Compliance Requirements:
We will comply with all applicable federal and state laws related to transportation and LLCs. This will include obtaining the necessary permits and licenses, and filing annual reports.
VIII. Risk Analysis
Potential Risks:
Our trucking company may face economic risks such as fluctuations in fuel prices and increased competition. We may also face regulatory risks due to changes in transportation laws and regulations. Additionally, we may face challenges related to attracting and retaining drivers, managing maintenance costs, and ensuring the timely delivery of shipments.
Contingency Plans:
To mitigate these risks, we will regularly monitor fuel prices and market trends to adjust our pricing accordingly. We will also invest in driver training and retention programs to attract and retain experienced drivers. We will implement a comprehensive maintenance program to minimize maintenance costs and ensure the longevity of our trucks. Furthermore, we will use real-time tracking technology to monitor the location and status of our shipments and ensure timely delivery.
IX. Conclusion
In conclusion, our trucking company has the potential to provide reliable and efficient transportation services to our customers. Our strong operational plan, financial projections, and management team position us for success. Our risk analysis and contingency plans ensure that we are prepared to address potential challenges and risks. We see significant growth opportunities in the future, including expanding our services to new regions and offering additional transportation solutions.
Food Truck Business Plan FAQs
How do I start a food truck business?
To start a food truck business, you'll need to develop a business plan, obtain the necessary permits and licenses, purchase or lease a food truck, design a menu, establish relationships with suppliers, and create a marketing and promotion strategy.
What are the popular food truck menu ideas?
Popular food truck menu ideas include gourmet burgers, tacos or burritos, artisanal sandwiches, ethnic cuisines (such as Thai or Mexican), fusion dishes, healthy bowls or salads, and unique dessert offerings.
How can I find locations to park my food truck?
To find locations for your food truck, consider local events, farmer's markets, office complexes, college campuses, industrial areas, and partnering with other businesses to park in their lots. Research local regulations and obtain any necessary permits.
How can I attract customers to my food truck?
You can attract customers to your food truck by leveraging social media for promotion, offering unique or signature dishes, providing quick and efficient service, maintaining a clean and visually appealing truck, and engaging with your customers through loyalty programs or online ordering options.
What are the essential equipment and supplies I need for a food truck?
Essential equipment and supplies for a food truck include cooking equipment (grill, fryer, oven), refrigeration units, food preparation surfaces, utensils and cookware, storage containers, generator or power source, POS system, and signage for branding and menu display.
