FOOD TRUCKS: SHOULD YOU RENT OR BUY?
Fortunately, if you’re thinking about starting a food-truck business, but don’t want to put $50,000 – $100,000 of your life savings into a concept there is another way: Renting a food truck.
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By renting a food truck you have the flexibility to change menu items, test different marketing strategies and figure out if you actually want to operate a truck for the next 4 – 5 years with minimal risk. In fact, the only thing you’ll risk is the cost of renting the vehicle, which can be much more manageable. If the food concept fails or you decide you don’t enjoy running this type of business you can just return the truck. On the other hand, if you’re concept does take off you’ll be able to justify the purchase.
STEP#1 Reserve a food truck
By renting a food truck you have the flexibility to change menu items, test different marketing strategies and figure out if you actually want to operate a truck for the next 4 – 5 years with minimal risk. In fact, the only thing you’ll risk is the cost of renting the vehicle, which can be much more manageable. If the food concept fails or you decide you don’t enjoy running this type of business you can just return the truck. On the other hand, if you’re concept does take off you’ll be able to justify the purchase.
STEP#2 Obtain your city's License and health permit
If you are insuring the vehicle, It’s about $150 for AUTO liability & $150 for Business liability per month With a 12 month minimum. Auto insurance is required for the food truck. Additionally, you may want to obtain General Liability coverage, and you must have Worker’s Compensation Insurance if you have employees. These are the three main coverage that at a minimum you should carry. There are additional policies,
STEP#3 Add graphics to the outside of the truck
Your truck is an extension of the food you serve. A dirty, bland looking truck probably serves food in a similar fashion. If you’re serious about your food truck business, then bump up your advertising with a one of a king custom food truck wrap.Weather your goal is minimalism to showcase your confidence in your food, or you’d prefer bright colors to draw the attention of passersby.
STEP#4 Get insurance for the truck
By renting a food truck you have the flexibility to change menu items, test different marketing strategies and figure out if you actually want to operate a truck for the next 4 – 5 years with minimal risk. In fact, the only thing you’ll risk is the cost of renting the vehicle, which can be much more manageable. If the food concept fails or you decide you don’t enjoy running this type of business you can just return the truck. On the other hand, if you’re concept does take off you’ll be able to justify the purchase.
