1) Write a Business Plan
A written and well-reasoned business plan sets the foundation for an excellent new coffee company. The business plan should strategically address the steps necessary to start up, from the idea to the finished product. Unfortunately, many successful business owners see their plans as a comprehensive list of short-term goals. Once the goals are accomplished, the business should be ready to launch.
One of the major concerns of the business plan is capital resources, meaning how much money is needed to start the business and where it will come from. Startup costs for a coffee truck range from buying the truck, registering the business, products that will be sold, marketing, licensing, and more. Budgeting should include other monetary concerns, such as recurring fuel costs, equipment maintenance, supplies, insurance, and paying employees.
Do not forget to include the origin of the capital in the business plan. For example, entrepreneurs can apply for a small business loan, borrow from family or friends, use personal savings, or explore other options such as investors.
In addition to budgeting, the business plan should note the company’s starting point and set future goals. All important information should be included from location to target customer base, but the plan does not need to be overly long or complicated.
There is a strong correlation between well-written business plans and well-performing new businesses. For those entrepreneurs who want a little help with their coffee-based business plan, feel free to consult a licensed accountant or attorney. Also, having a trusted accountant is a big help when tax season arrives.
Lastly: business plans should be flexible, as small businesses change over time. Allow room for the company to grow and the goals to fluctuate.
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2) Register and License the Business
The sooner the business becomes official, the closer the company is to selling java and creating revenue. Entrepreneurs should check in with state officials early in the process since business licensing requirements depend on location.
Licensing is also vital for the truck itself since the entrepreneur looks forward to serving the public food and beverages. All food service is contingent upon specific licensing, which also depends on the state.
Running a business without business or food and beverage licensing is not only irresponsible; it is impossible. Lucky for coffee truck enthusiasts everywhere, business registrations and foodservice licenses are generally inexpensive and accessible
3) Consider the Location
Location relies on a strategic, informed choice for coffee truck businesses and the entrepreneurs who run them. These questions might help clarify the decision.
- How much space is needed for the truck and the business overall?
- How much room is needed for customers to form a line?
- Is the truck easy to reach or difficult to find?
- Is the truck easy to find?
- Are directions on Google Maps and Apple Maps easy to follow?
- Is there any risk of a traffic jam nearby?
- Is the location isolated or near other businesses?
- Is the location close to the main road, avenue, or highway with easy access?
- Are customers expected to walk (is the location frequented by pedestrians?) or drive?
Customers must easily spot the coffee truck and safely order and pick up their food. Some coffee trucks have a rotation of spots, a schedule they adhere to daily. Other trucks find that they have one parking spot that works best. Some of this knowledge comes with experience, but the best parking spots feature areas where people commonly walk. It also helps to consider if there are colleges and universities in the size of the parking spot or if parking near certain businesses or shopping areas will increase sales. For example, during the summer, some coffee trucks find that parking near the beach and selling iced coffee is a lucrative option.
4) Purchase the Coffee Vehicle
No coffee truck business is the face of the company: the coffee truck itself. Particular emphasis should be placed on the car because for entrepreneurs who espouse the traditional brick-and-mortar structure; the truck is the epicenter of the business. When considering what kind of truck to buy, these questions might help clarify what can be an overwhelming process:
- Is the plan for a new or used truck?
- What is the company’s budget?
- What types of drinks will the business offer, and is the truck suited for them?
- Will the business offer food? What kind?
- What sorts of vehicles do competitors have?
- What sort of interior layout will work best for the business?
- How many employees will there be?
These questions might help clarify what type of vehicle it makes sense to search for. Some entrepreneurs can invest in a brand-new truck, and others have the skills to update and fix up an old truck to its exact specifications. Remember, the coffee truck is the coffee shop, so it makes sense to spend time on this decision and not make it hastily. A great-looking coffee truck can help bring in more business.
5) Finalize the Coffee Truck Menu
Does the plan for the menu include popular espresso-based drinks such as cappuccinos and lattes? If so, the business needs to invest in a quality espresso machine. Drip coffee is easier to brew, but consider its popularity when buying coffee makers and opt for the larger size when there is a question. Most coffee businesses invest in industrial-sized coffee makers to ensure they never run out.
As the entrepreneur finalizes the initial menu, the type of supplies that are needed will become clear. For example, some coffee trucks require smoothie blenders; others specialize in egg sandwiches and use small portable ovens. Still, others bring baked goods from offsite, which is an exciting option.
Our advice is to stay within the budget and begin with a simple menu, focusing on the drinks and dishes that the entrepreneur and employees are most confident in. The business will grow naturally, and the menu will expand when it does.
6) Conduct Market Research
Most entrepreneurs who focus on opening a coffee truck know about French roast and Sumatra. However, the more knowledge a business possesses about the industry and product, the better.
Entrepreneurs should familiarize themselves with the latest coffee technology and espresso techniques. They should also sample different types of coffee and espresso and know who has the best beans and what makes them so great. Why not create some new recipes, too, and put a new spin on traditional coffee beverages?
Knowledge is power, and in this case, knowledge is excellent coffee.
7) Gather Supplies, Equipment, and Materials
Another essential aspect of the coffee truck startup process is outfitting the shiny new truck with the correct equipment. Most coffee businesses need:
- Point of sale (POS) system and a way to accept payment
- Quality coffee beans (and a supplier who will continue to support the business
- Sugar, syrups, cream, and other coffee mixers
- Espresso bean grinders
- Drip coffee bean grinders
- Cups and lids
- Espresso machine
- Drip coffee machine
- Supplies for food products (baked goods and ingredients, for example).
- Staples like butter, jelly, salt, etc
Check the finalized menu for the coffee truck before you finish this list because a coffee company’s menu dictates precisely what they need to acquire to succeed.
8) Hire Employees
Hiring staff for the coffee truck is essential. After all, excellent employees can send a business to new heights. Before hiring, consider the size of the company and the way it will be set up. Coffee trucks do not have much space, so hiring 2-6 employees will probably seem about right. Make sure to work out a clear schedule regarding who needs to be where and at what time.
Regarding the hiring process, look for passionate, motivated individuals who ideally have some food service experience. For example, if hiring a manager, search for someone with managerial experience in the food and beverage world. Above all, hire baristas who enjoy brewing coffee, pulling espresso, and encouraging customers to walk away happy.
The coffee truck runs well when staff members are dedicated to doing the business work and care about the company.
9) Market the Coffee Truck Business
Marketing may be one of the final steps in this list, but it is, by all means, one of the most integral. There are two main ways to handle marketing. The first is for entrepreneurs to embrace various online methods. The public often discovers new businesses online, and there is a wide range of options to explore. Post stories on Instagram and pictures of coffee drinks and the coffee truck on Facebook. Host giveaways on Twitter. The list goes on and on. We also recommend creating a professional website for the business that is easy to navigate and delivers vital contact information. Finally, do not forget SEO content and make sure the company is discoverable on Google Maps and similar services.
Also, spend a little time away from the internet. Draw up flyers, make signs, and host a grand opening. Reach out to shop owners in the area to network and find out what works for them, both coffee shop owners to those in other fields. Get the word out in the community about the new venture, and on opening day, the returns for all the hard work will be noticeable.
10) Design a Logo and Brand
A unique challenge is creating a brand for the new drive-thru coffee shop. Instead of concentrating on the interior of the store, entrepreneurs should envision the exterior. After all, customers will not be spending time inside but instead stopping in quickly for a coffee and a scone, for example. Convenience is more important than aesthetics, and the branding decision should reflect that.
However, the business also should catch peoples’ attention from the outside. Therefore, more attention should be paid to the exterior of the shop. Colors, signs, flags, and intriguing words can help bring in business, as can advertisements for deals such as “Two for One Tuesdays!”
When new business owners create a brand that informs the public about what the company does best, the business succeeds. Consider using words such as “speedy” or “fuel up” or concepts that reflect fast, convenient service. Mix in adjectives about the delicious coffee, and you will be on the way to establishing a new brand. Then, devise a simple, clean logo that is just eye-catching enough to bring business from busy commuters.
Starting a Coffee Truck Business
Coffee truck companies offer unique advantages to the entrepreneur. But, of course, these businesses also come with their unique challenges. However, with careful planning and excellent strategy, your coffee truck business can become a delicious success.
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