How to Write a Business Plan for a Food Truck
It is a daunting undertaking if you have never developed a business plan (BP) or felt overwhelmed after seeing the BP templates. A business and financial plan may quickly expand beyond 50-70 pages. At our consulting firm, we recommend our founders start with the Business Model Canvas (BMC), as the BMC is a one page framework that ensures the fundamentals are defined. We begin the Business Plan (BP) route once our entrepreneurs have graduated from the BMC framework and can ensure viability of the business.
Read: Primer - What is a Business Model Canvas (BMC) and its Purpose
While writing a business plan, you must first include an executive summary that details your financial plan and your venture's potential for success. After that, you must include a thorough market study that addresses both the target market, what is the offering and how it's differentiated from competitors. Last but not least, you must develop a financial model that details your investment expenses, projected revenues, and anticipated profits.
Read: Primer - What is Business Plan and How to Write it
Scenario: A Business Plan with a high level financial model for a Food Truck Business
Executive Summary
The purpose of this business plan is to raise $100,000 for the development of a food truck business while showcasing the expected financials and operations over the next three years. The Food Truck is a new business that will provide a mobile pizza service to the people of the greater Los Angeles area.
The Food Truck’s managers have extensive experience in the restaurant industry. The Food Truck will be staffed with experienced pizza makers who will use only the freshest of ingredients to make delicious pizza pies. The Pie Guys will strive to offer a unique experience that will keep customers coming back for more.
The Food Truck will generate revenue through the sale of pizza by the slice and whole pies. The company will generate additional revenue through the sale of beverages. The company will focus on generating repeat business by offering a great product at a fair price.
The Food Truck will require an initial investment of $100,000 to purchase the mobile unit, secure a location for operations, and purchase the necessary equipment. The company’s financial projections indicate that the business will be profitable by the end of Year 2.
The Food Truck is a sound investment for potential investors. The company offers a unique product, has a experienced management team, and is positioned for growth in the Los Angeles market.
Read: Top reasons for startups failing and six steps to mitigate them
Business Overview
The Food Truck is a brand-new company that will provide individuals in the greater Los Angeles area a mobile pizza delivery service. The management of the Food Truck have a lot of experience working in the restaurant business. The food truck will be manned with skilled pizza chefs who will produce mouthwatering pizza pies using only the freshest ingredients. The Pie Guys will work to provide a distinctive experience that will entice consumers to return time and time again.
Pizza by the slice and complete pies will be sold by the food truck to make money. The selling of beverages will help the business make more money. By providing an excellent product at an affordable price, the firm will concentrate on gaining return customers. A $100,000 down payment is needed for the Food Truck in order to buy the mobile unit, reserve a spot for operations, and buy the required supplies. According to the company's financial forecasts, the operation will turn a profit by the end of Year 2.
For potential investors, the food truck is a wise investment. The business has a distinctive product, an accomplished management group, and is well-positioned for expansion in the Los Angeles area.
Management Team
The Food Truck’s management team has over 20 years of experience in the restaurant industry, as a well branded franchises focusing on the Pizza Industry.
Dean Anderson – Dean is a seasoned entrepreneur who has started and operated several successful restaurants. Dean has a passion for food and a keen understanding of the restaurant industry.
Sean Kelly – Sean is a experienced pizza maker who has worked in some of the best pizzerias across the country. Sean is excited to bring his talents to the Los Angeles market.
Tommy Riddle – Tommy is a experienced business manager who has a proven track record of successful operations. Tommy will oversee the day-to-day operations of The Food Truck.
Business Model
Pizza by the slice and complete pies will be sold by the food truck to make money. The selling of beverages will help the business make more money. By providing an excellent product at an affordable price, the firm will concentrate on gaining return customers.
A $100,000 down payment is needed for the Food Truck in order to buy the mobile unit, reserve a spot for operations, and buy the required supplies. According to the company's financial forecasts, the operation will turn a profit by the end of Year 2.
Read: 5 Common Business Models used by Successful Companies
Financial Overview
The Food Truck is looking for $100,000 in investment money to buy the portable unit, find a place to run its business, and buy the required equipment. According to the company's financial forecasts, the operation will turn a profit by the end of Year 2. The Food Truck's financial forecasts are realistic with a well-run business since they are based on conservative assumptions.
The money invested in the Food Truck will be used to get the mobile unit, find a place to run the business, and buy the required equipment.
Read: What are Financial Metrics and How Are They Measured
Exit Strategy
The management team of the Food Truck is dedicated to expanding the company and generating profit for investors. A strategic sale to a larger restaurant group is how the company intends to leave the industry. The management group is in a strong position to expand the company and complete a successful exit because of its demonstrated performance in the restaurant sector.
Read: Primer - Competitive Intelligence (CI) - Why its Critical for a Firm Success
Summary:
It may seem difficult to devote the time and effort into creating a company plan with a financial model, but it's crucial. Your ability to obtain the capital required to open your Food Truck will be aided by a well-thought-out business plan.
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