This post is adapted from a talk I gave at a workshop for food truck owners, but is applicable for owners of all industries.
Friends and family rave whenever you bring your specialty dish to family gatherings, backyard barbecues, or get-togethers, some have even encouraged you to open a restaurant or build out a food cart or food truck. I think they might be right!
But before you jump in with both feet, I want you to know that operating a successful food truck business takes more than being a great cook.
7 Ingredients of Profitable Food Truck Business Owners.
1. They have a plan.
Every business needs a business plan. There are many types to choose from based on your situation. Every year, many companies fail because of the lack of short-term and long-term planning. Your plan should include where your business will be in the next few months to the next few years. Include measurable goals and results. The right strategy will consist of specific to-do lists with dates and deadlines. Failure to plan will damage your business.
2. They have enough capital.
I suggest three times the amount you believe you need. Lack of capital makes it difficult to grow the business, and it may jeopardize day-to-day operations. Lack of money leads to stress, inability to attract investors, and many other harmful issues.
3. They start in a manageable position.
Every small business owner wants to grow their business, and scaling is a good thing if you scale at the right time. Scale your business prematurely, and you will destroy it. For example, you could be hiring too many people too quickly, or spend too much on marketing. Don’t scale your business unless you are ready.
4. They invest in learning.
It’s not enough to be a good cook. Invest in yourself. Learn how to be an informed business owner by reading books, get a mentor, take a class.
5. They know their financials.
I can’t stress this point enough. You have to stay on top of your financials. – Revenue is not the same as profit. As an entrepreneur, you must keep your eyes on your revenue, costs, and cash flow at all times.
6. They are patient.
Sometimes profitability comes right away, but most often, it takes time.
7. They adapt and pivot.
You have a plan, but that plan will always need to be monitored and adjusted as you better learn the business and your market.
Helping small business owners grow their businesses is what we do. Contact us for more information.