A Guide To Starting A Food Truck Business

People have always been connected with food, but it's an especially popular passion nowadays. Whether it's recipes their grandmother cooked for them, meals they've come up with on their own, or recipes adapted from their favorite celebrity chef, food is everywhere. This can be so inspiring for a chef on the rise, especially one who wants to join the growing trend of starting a food truck business.

Much like starting any business, though, there are things aspiring food truck owners need to know before burning asphalt. There are so many factors that go into being able to determine start-up costs for a food truck business. There are also one-time costs, as opposed to recurring start-up costs, and costs that can vary by location.

One time startup costs could consist of things like purchasing your food truck, register or point-of-sale (POS) system, truck wrap, website design, office supplies, advertising and PR, and any professional, legal or consulting fees. While that list is not comprehensive, it gives potential food truck owners an idea of the things that will need to be paid for up front.

Rachel Angulo, owner of La Cocinita food truck. Then there are the recurring costs such as payroll, equipment rental, credit card processing equipment and fuel. Every new food truck business will also have to obtain proper licenses and permits, which vary depending on location. Acquiring funding may be the biggest challenge you'll face when starting a food truck business.

The first goal should be to put together a solid business plan. You should also make sure to have good personal and business credit, as this will increase your chances of receiving a business loan. If traditional financing is not an option for you, there are other, more creative ways, to get funding for your new food truck business. Talk with someone who already owns a food truck and negotiate a lease or rental agreement.

Start with a low-cost, used cart or trailer. Start selling at a farmer's market, fair booth or pop-up. Talk to successful restaurant owners about running a food truck for the owner's business. If your truck idea includes providing a public service or benefit to the community, look to obtain sponsors.

You may qualify for a processing advance loan if you are already contracted with a payment processor. Angulo found her truck on Craigslist back in 2011, and while that is still a great place to search, there are many new resources out there. Local online classifieds: This is a good option because used trucks are cheaper, and if they are local you can easily inspect them.

National online classifieds: This will open up a lot more inventory, but make sure you get as many details and pertinent information about the truck before purchasing, since you most likely won't see it in person before pick-up. New custom trucks: While this is the most expensive option, it is the best way to ensure that your truck is up to codes and standards, and can be customized to your specifications. Leasing and franchising: You may be able to find a local truck to lease, or from a national truck leasing company.

Or, you could franchise a truck from an already established company. With this option, it's important to keep in mind that you have no control over the product, marketing or menu. Most food truck customers have gotten used to paying cash, but credit cards and mobile pay is more popular than ever. Disadvantages: Doesn't track sales or food inventory. Cannot process card payments.

Advantages: Low priced. Mobile processors can simply charge for swipe fees, but you'll need Wi-Fi access and or a good data plan to connect to the processing service. Disadvantages: Most mobile processors include only a simple inventory system and limited additional features. Ongoing costs: Credit and debit card processing fees and mobile data fees. Advantages: Mobile credit and debit card processing plus sales and inventory tracking.