As a food truck entrepreneur, you will undoubtedly encounter hurdles when you start your business. Many of these problems are common amongst food truck owners. Below I’ve identified a few of these, which can act as a forecast for you.
Setbacks to Deadlines and Timelines (Time Allotment)
- Ensure you have a schedule and timelines for fabrication, licensing, marketing material, operational start date, etc.
- Build in time for unexpected delays. Ten to twenty percent additional time may be necessary. This will allow you to better plan financial expenditures, bookings, and revenue projections. If you don’t, you may quickly fall deeper into the red before you even hit the streets. Expect the unexpected!!
- Detailed accounting for fixed costs and projecting variable costs are essential to determining your break-even point and tracking profitability.
- Moreover, without accurately accounting your cost of goods sold (COGS), labor, and commissions, you run a high risk of bleeding money.
Financial Planning (Personal and Business)
- DO NOT plan on living off of your business’ revenues. Most small businesses are not truly profitable for 3-5 years. Relying on your business’ sales to put food on your plate and a roof over your head, especially during the first year, is unrealistic.
- Ensure you maintain a financial reserve to cover your business’ fixed costs during lean times. Your first few months and possibly your first year may be fairly weak in sales until you are established. Having a reserve fund to take care of the bills will alleviate SOME pressure during this time.
By effectively managing these problems, you’ll be one step ahead of your competitors and on the road to success. At CCTS we can help ensure you avoid these issues, as well as other common startup mistakes. For more information on our consultation and mentorship services, contact us by using the menu on the right hand side of this page. or by emailing us at firstname.lastname@example.org.