Business Management - Small Business Report
twinkletoes
BMGT110Project2MemoGradingRubric.pdf
Project 2: Report (Week 7)
NOTE: All submitted work is to be your original work. You may not use any work from another student, the Internet or an online clearinghouse. You are expected to understand the Academic Dishonesty and Plagiarism Policy, and know that it is your responsibility to learn about instructor and general academic expectations with regard to proper citation of sources as specified in the APA Publication Manual, 6th Ed. (Students are held accountable for in-text citations and an associated reference list only). Serious sanctions can result from violations of any type of the Academic Dishonesty and Plagiarism including a zero on a project, a zero for the course or dismissal from the University. Purpose: Throughout the course, you have discussed a wide array of business concepts and theories. This assignment is designed to have you read a case scenario and demonstrate knowledge and application of several of these concepts and theories.
Skill Building:
You are also completing this project to help you develop the skills of research, writing and developing a report. Writing is critical because in business it is important to convey information clearly and concisely and to develop a personal brand. Developing a personal brand is important because it is the ongoing process of establishing an image or impression in the minds of others especially those in positions above you. Having a strong personal brand can lead to opportunities that include promotions.
Skills: Research, Writing, Writing a Report, Developing a Personal Brand.
Outcomes Met With This Assignment: After completing this course, you should be able to:
identify the critical business functions and how they interact in order to position the organization to be effective in the current business environment
explain the importance of the integration of individuals and systems to organizational effectiveness
describe the ethical and social responsibilities that confront a business This project is the second of two projects. You will read a case scenario related to starting a small business. Several concepts learned in the course are used in this project. The
project requires you to go beyond mentioning concepts but requires you to apply the concepts explaining the 'why and how' of the situation.
In this project, you are asked to write a report. A report is a formal document that addresses a specific audience, has a clear purpose and conveys a message about its purpose. Information is presented in a clearly structured format that uses headings to help a reader easily read, follow and locate information. This report does not have recommendations, as it is informational only.
The expectation is that you provide a robust use of the course material and research to support ideas, reasoning and conclusions. This means that you will present an idea, reasoning or conclusion and use the research and the course material to explain what you presented. Stringing one sentence after another using the course readings or research does not meet the requirement and does not demonstrate critical thinking. Critical thinking is demonstrated when the “why and how” and the “who and what” are thoroughly explained.
Read the following case scenario:
Betty Crocker and her husband Bill love to bake. They also love to travel. After a recent trip to Egypt, the couple returned to their home anxious to try to duplicate the two desserts they had found, Umm Alli and Qatayef. Umm Alli is a phyllo pastry layered with milk, double cream, and nuts (sometimes, raisins or dates are added). The dessert is baked in a large pan. When done, the dessert is cut into bars much like brownies. Qatayef, on the other hand, is like Pierogis. They are crescent shaped dough pockets stuffed with double cream, nuts or custard and baked. The treats are very popular in Egypt and frequently sold by street vendors. It is typical to serve coffee with Qatayef. Drinking coffee is a favorite Egyptian past time and social activity, one that has become popular in America as well.
Betty and Bill Crocker live in Atlanta, Georgia. As college professors at Emory University, the couple feels handicapped by having to travel in the summer when travel is most expensive for Americans. The couples’ teaching contracts obligate them to teach at least two summer classes. They are eligible to take one year off every seven years for sabbatical leave. In addition, the couple must show evidence of scholarly work at the end of each year (i.e. book, community clinic service, journal, documentary, etc.). The couple has often thought that they would love to start a small business so that they could have more flexible travel plans. “Truthfully,” Betty says, “we would be truly happy if we had the money and time to travel.”
The last trip abroad gave them a great idea - Why not start a mobile coffee café that sells Egyptian coffee and desserts. They could get a small food truck and set up tables and chairs outside the truck bringing them inside at the end of the day. Betty and Bill could move the truck around the city working the hours they wanted and build a broad customer
base between the college and downtown businesses. They believe that this concept is a great new twist on a café.
The couple loves the café idea! They have decided to move forward with the idea by researching the commercial viability of the business. They start by consulting other small business owners in the area and made an appointment with the local Small Business Association (SBA) and SCORE, a non-profit associated that helps small businesses get started. The couple wants to gather the critical data needed to determine how best to prepare for opening “Cairo Café”. Betty and Bill uncovered the following facts and articles in researching their business opportunity.
Information:
Seventy-eight percent of first year small businesses succeed. Fifty percent of all small businesses fail after five years Thirty-five percent of businesses survive after 10 years in business Small business is the backbone of Atlanta, Georgia’s local economy
Articles:
Do you remember the enthusiasm? (2013, October 1). 50 food truck owners speak out: “What I wish I’d known before starting my food truck.” Retrieved from https://foodtruckr.com/2013/10/what-i-wish-id-known-before-starting-my-food-truck/ Food trucks are advertised as (2016). The complete breakdown of food truck operation costs. Food Truck Empire. Retrieved from http://foodtruckempire.com/how-to/costs/ Newtek (2013, February 26). 7 habits of great small business owners. Retrieved from Forbes at https://www.forbes.com/sites/thesba/2013/02/26/7-habits-of-great-small- business-owners/#7c1523f334b3 Instructions: Step 1: Your Role
The Crockers have come to you for information because they heard you are a small business consultant and business owner who can help explain some of the concerns that their preliminary investigation has revealed.
Below is a list of considerations that the Crockers have developed for further research. The Crockers have asked you to provide information by researching and then putting your findings in a report. Step 2: Considerations to Address
You must use research, the course material and the case scenario facts to support the ideas and reasoning presented. If you do not understand how to support what you write, then go to Content in the classroom and read the module, Learn How to Support What You Write. The support provided is a key element to this project.
Strategic Plan. The Crockers are educators and have limited knowledge of running a business. Explain what a strategic plan is, explain why is it important for the Crockers to develop a strategic plan and discuss the elements of a strategic plan. Challenges Facing a Startup Business: Currently, the Crockers make a combined income of $140,000 after taxes from their jobs at Emory University. Explain the challenges the Crockers can expect with starting the business in relation to lifestyle, marriage, time management, obtaining health insurance and personal finances. Be sure to explain why or how these items are challenges using the course material as support. Strategic Human Resources Planning: The Crockers have a good idea about how many employees the business will need and the skills each employee will possess. The couple is more concerned with adhering to the laws related to hiring the right employees. Identify and briefly discuss the anti-discrimination laws, and explain why it is necessary to comply with these laws. Effective Communication: As educators, the Crockers pride themselves for having effective communication skills. Students benefit when teachers have good listening skills and are able to explain things clearly. The couple believes this skill set will be transferable to the business. Although the couple has effective communication skills, Betty would like you to identify and discuss how the business will benefit from promoting the development of effective communication among employees. Marketing: The Crockers know they can create a great product that will be appealing to the public. They know they need to capture the attention of the customers especially since the business is a traveling café. Marketing can be expensive so the Crockers need several inexpensive marketing ideas. Identify and discuss several different inexpensive marketing ideas that the couple can use to promote Cairo Café. Secondly, the Crockers need advice on how to promote the café as a socially responsible business. The Crockers know that eventually the café will be in a better financial position to engage in socially responsible activities but cash flow is important at this point. What socially responsible acts can the Crockers engage in that will not add significant cost to the business. Step 3: Conclusion
Write a concluding paragraph that is brief and summarizes the report.
Provide specific information related to the major features discussed in the
report. Step 4: Set Up the Report Create a Word or Rich Text Format (RTF) document using 12-point font. A report is left justified with no indentations of paragraphs. Double space between paragraphs to make the report easy to read.
The report will be between 3-4 pages in length excluding the title page and reference page. In business, writing must be concise, easy to read and free of writing and grammatical errors so proof your work. Remember, the work you produce reflects your personal brand.
You are required to use in-text citations and the associated reference will appear in a reference list at the end of the report (on a separate page).
Use the following format in writing the report:
Title page with the title, your name, course number and name; date, and the instructor’s name;
Overview (brief summary that tells the reader what the report is about; identifies the purpose and the important features of the report).
Background (one paragraph and no more than four consecutive words can be used from the case scenario - you are to paraphrase)
Discussion (covers the elements of the considerations) Strategic plan Challenges Facing a Startup Business Strategic Human Resources Planning Effective Communication Marketing
Conclusion (brief, clearly written and specific as to the major features discussed in the report)
References (separate page) You are going to send this report to the Crockers. Read the report to ensure all required elements are present. Make sure not to talk about the Crockers but instead inform the Crockers. Make sure the report is audience appropriate, concise, coherent, readable, uses appropriate terminology, is professional, provides a factual tone (no opinion and no recommendations), and is visually appealing.
Proof the report carefully for typos, grammatical errors and ensure the report conveys the points you have been asked to address. Why? Because your work products is a reflection of who you are – it is your brand! A good brand can lead to future opportunities in an organization such as a promotion. Step 5: Write the Report When writing the report, it is important to:
organize the document clearly in a manner that promotes understanding and meets the requirements of the assignment. Use headings identified above.
develop coherent paragraphs or points so that each is unified with good transitions so that each function as part of the whole document.
tailor the communication to the audience. use sentence structure appropriate to the task, message and audience. follow conventions of Standard Written English. Therefore, how the report is
written is a critical part of this project. This report is informational so there should be no recommendations made and no opinion offered. Also, avoid posing questions and following the format for a report is a must!
The expectation is that you provide a robust use of the course readings and research to support the ideas, reasoning and conclusions presented. This means that you will present an idea or provide reasoning, and then use your research or the course material to explain the idea, reasoning or conclusion made. Stringing one sentence after another using the course readings or research does not meet the requirement and does not demonstrate critical thinking. Critical thinking is demonstrated when the “why and how” and the “who and what” are thoroughly explained. Step 6: Review the Report
You are writing this report taking the role of a consultant. The report is going to Betty and Bill Crocker. Read the report to ensure all required elements are present. Make sure not to talk about the Crockers but inform the Crockers.
It is highly encouraged that you use the Effective Writing Center (EWC), which can be found by clicking on Resources on the Main Navigation Bar on Resources.
The following items are required in writing the report. Check off to ensure compliance to the following requirements.
Use the grading rubric while completing the project to ensure all requirements are met that will lead to the highest possible grade.
Third person writing is required. Third person means that there are no words such as “I, me, my, we, or us” (first person writing), nor is there use of “you or your” (second person writing).
Contractions are not used in business writing, so do not use them.
Students will not use direct quotation marks but will instead paraphrase. What this means is that you will put the ideas of an author or article into your own words rather than lifting directly from a source document. You may not use more than four consecutive words from a source document (including the case scenario) or change words in a passage as doing so would require direct quotation marks. Use a passage from a source document by putting into your own words (paraphrase) and attribute the passage to the source document. Changing words from a passage does not exclude the passage from having to have quotation marks.
Use in-text citations and provide a reference list that contain a reference associated with each in-text citation.
Provide the page or paragraph number in every in-text citation presented.
You may not use books other than the e-book provided in the classroom. You will depend on the course material, the article provided above and research. Research is necessary to do well on this project.
When using the case scenario facts to support your ideas and reasoning, cite the case scenario, using the following: (Case Scenario, Summer 2018, para. number).
Step 7: Submit the Report in the Assignment Folder (The report submitted to the Assignment Folder will be considered a student’s final product and therefore ready for grading by the instructor. It is incumbent upon the student to verify the project is the correct submission. No exceptions will be considered by the instructor). Grading Rubric
Criteria
1 Above Average Sufficient Developing
Needs
Improvement Failure
Overvi
ew
0.75 points
Writes an
overview that
captures the
reader's
attention,
gives context
to the paper,
and builds to
the thesis
that defines
the main
points to be
discussed in
the paper.
(0.675 -
0.75)
0.6375 points
Writes an
overview that
provides
context to the
paper and
presents the
thesis
statement
that defines
the main
points to be
discussed in
the paper.
(0.600 -
0.674)
0.5625 points
Writes
an overview
that provides a
general
context to the
paper or the
thesis is vague
or
underdevelope
d.
(0.525 -
0.599)
0.4875
points
Attempts to
write an
overview
but has
little to no
context to
the paper
and the
thesis is
missing
main points
or no thesis
statement
provided.
(0.450 -
0.524)
0 points
No
attempt at
presenting
an
overview.
(0)
Criteria
2 Above Average Sufficient Developing
Needs
Improvement Failure
Conten
t:
Strateg
ic Plan
2.5 points
Thoroughly
explains
what is a
strategic
plan,
importance
of
developing a
strategic
plan and
2.125 points
Explains what
a strategic
plan is,
importance of
developing a
strategic plan
and
discussion of
the elements
of a strategic
1.875 points
Attempts to
explain what a
strategic plan
is, importance
of developing
a strategic
plan and
discussion of
the elements
of a strategic
1.625
points
Explanation
of what a
strategic
plan is,
importance
of
developing
a strategic
plan and
0 points
What a
strategic
plan is,
importance
of
developing
a strategic
plan and
discussion
of the
discussion of
the elements
of a strategic
plan
thoroughly s
upported by
course
material ,
research and
case study
facts, and
shows compl
ete
understandin
g of a
strategic
plan.
(2.25 -
2.5)
plan with
most ideas
and
reasoning
(justification)
supported
using the
course
material,
research and
case study
facts but
needs minor
development.
(2.0 - 2.24)
plan
concluded with
some ideas
and reasoning
(justification)
but uses limit
ed course
material and
case facts;
needs some
development;
one element
not discussed
or partially
discussed.
(1.75 - 1.99)
discussion
of the
elements of
a strategic
plan was
general or
did not
support
ideas and
reasoning
with the
course
material, a
nd case
study facts;
needs
significant
developmen
t or two
elements
not
discussed;
what is
presented
is incorrect.
(1.5 -
1.74)
elements
of a
strategic
plan was
not
discussed.
(0)
Conten
t:
Challen
ges
2.5 points
Explanation
of the
challenges in
starting their
2.125 points
Explanation o
f the
challenges in
starting their
1.875 points
Attempts to
explain the
challenges in
starting their
1.625
points
Explanation
of the
challenges
0 points
Explanatio
n of the
challenges
in starting
own business
and what it
means
personally in
terms of
lifestyle,
marriage and
finances is
logically
concluded
using ideas
and
reasoning
(justification)
that were
thoroughly
supported by
course
material ,
research and
case study
facts, and
shows
insightful
understandin
g of the
challenges of
starting a
business.
(2.25 -
2.5)
own business
and what it
means
personally in
terms of
lifestyle,
marriage and
finances is
concluded
with
most ideas
and
reasoning
(justification)
supported
using the
course
material,
research and
case study
facts but
needs minor
development.
(2.0 - 2.24)
own business
and what it
means
personally in
terms of
lifestyle,
marriage and
finances
concluded usin
g some ideas
and reasoning
(justification)
but
uses limited
course
material and
case study
facts as
support; needs
some
development
or one element
not discussed.
(1.75 - 1.99)
in starting
own
business
and what it
means
personally
in terms of
lifestyle,
marriage,
healthcare
and
finances
was general
and fails to
support
ideas and
reasoning
(justificatio
n) with
the course
material
and case
study facts;
needs
significant
developmen
t or two
element not
discussed.
(1.5 - 1.74)
own
business
and what it
means
personally
in terms of
lifestyle,
marriage,
healthcare
and
finances
was missin
g three
elements
or fails to
support
ideas and
reasoning
(justificatio
n) with
the course
material
and case
study
facts; or
requireme
nts not
discussed
or what
was
discussed
did not
meet any
of the
requireme
nts.
(0 - 1.49)
Criteria
3 Above Average Sufficient Developing
Needs
Improvement Failure
Conten
t:
Strateg
ic
Human
Resour
ces
Plannin
g
2.5 points
Identifies
and briefly
discusses the
anti-
discriminatio
n laws,
and explain
why it is
necessary to
comply with
the laws is
logically conc
luded using
ideas and
reasoning
(justification)
that is
thoroughly
supported by
course
material and
case study
facts, and
showed
insightful
understandin
2.125 points
Identifies and
briefly
discusses the
anti-
discriminatio
n laws,
and explain
why it is
necessary to
comply with
the laws
concluded
using some
ideas and
reasoning
(justification)
with an
attempt to
support using
course
material and
case study
facts, with
minor
1.875 points
Attempts to
identify and
discuss the
anti-
discrimination
laws,
and explain
why it is
necessary to
comply with
the laws that is
concluded
using some
ideas and
reasoning
(justification) b
ut uses limited
course
material and
case study
facts as
support; needs
some
development.
(1.75 - 1.99)
1.625
points
Identifies
and briefly
discusses
the anti-
discriminati
on laws,
and explain
why it is
necessary
to comply
with
the laws but
does not
support
ideas and
reasoning
(justificatio
n) with
the course
material
and case
study facts;
but need
significant
developmen
0 points
Anti-
discriminat
ion laws
and why it
is
necessary
to comply
with the
laws not
discussed.
(0)
g of the
laws.
(2.25 -
2.5)
development
needed.
(2.0 - 2.24)
t or one
element not
discussed.
(1.5 - 1.74)
Conten
t:
Effectiv
e
Comm
unicati
on
2.5 points
Identifies
and
discusses
how the
business will
benefit from
promoting
the
development
of effective
communicati
on among
employees
concluded
using ideas
and
reasoning
(justification)
that is
thoroughly
supported by
course
material and
case study
facts, and
2.125 points
Identifies and
discusses
how the
business will
benefit from
promoting
the
development
of effective
communicatio
n among
employees
with most
ideas and
reasoning
(justification)
supported usi
ng course
material and
case study
facts, but
needs minor
development.
(2.0 - 2.24)
1.875 points
Attempts to
identify and
discuss how
the business
will benefit
from
promoting the
development
of effective
communicatio
n among
employees
concluded
using some
ideas and
reasoning
(justification) b
ut uses limited
course
material and
case study
facts as
support; needs
1.625
points
Identifies
and briefly
discusses
how the
business
will benefit
from
promoting
the
developmen
t of
effective
communicat
ion among
employees
but does
not support
ideas and
reasoning
(justificatio
n) with
the course
material
and case
0 points
How the
business
will benefit
from
promoting
the
developme
nt of
effective
communic
ation
among
employees
not
discussed.
(0)
showed
insightful
understandin
g of effective
communicati
on.
(2.25 - 2.5)
some
development.
(1.75 - 1.99)
study facts;
but need
significant
developmen
t or one
element not
discussed.
(1.5 - 1.74)
Conten
t:
Market
ing
2.5 points
Identifies
and
discusses
several
different
inexpensive
marketing
ideas that
the couple
can use to
promote café
concluded
using ideas
and
reasoning
(justification)
that is
thoroughly
supported by
course
material and
case study
2.125 points
Identifies and
discusses
several
different
inexpensive
marketing
ideas that the
couple can
use to
promote café
with most
ideas and
reasoning
(justification)
supported usi
ng course
material and
case study
facts, but
needs minor
development.
1.875 points
Attempts to
identify and
discuss several
different
inexpensive
marketing
ideas that the
couple can use
to
promote café
concluded
using some
ideas and
reasoning
(justification) b
ut uses limited
course
material and
case study
facts as
support; needs
1.625
points
Identifies
and briefly
discusses
several
different
inexpensive
marketing
ideas that
the couple
can use to
promote caf
é but does
not support
ideas and
reasoning
(justificatio
n) with
the course
material
and case
study facts;
0 points
Different
inexpensiv
e
marketing
ideas that
the couple
can use to
promote ca
fé not
discussed.
(0)
facts, and
showed
insightful
understandin
g
of inexpensiv
e marketing
ideas.
(2.25 - 2.5)
(2.0 - 2.24) some
development.
(1.75 - 1.99)
but need
significant
developmen
t or one
element not
discussed.
(1.5 - 1.74)
Conten
t:
Social
Respon
sibility
2.25 points
Identifies
and
discusses
socially
responsible
acts that will
not add
significant
cost to the
business
concluded
using ideas
and
reasoning
(justification)
that is
thoroughly
supported by
course
material and
case study
facts, and
1.9125 points
Identifies and
discusses
socially
responsible
acts that will
not add
significant
cost to the
business with
most ideas
and
reasoning
(justification)
supported usi
ng course
material and
case study
facts, but
needs minor
development.
1.6875 points
Attempts to
identify and
discuss
socially
responsible
acts that will
not add
significant
cost to the
business
concluded
using some
ideas and
reasoning
(justification) b
ut uses limited
course
material and
case study
facts as
support; needs
1.4625
points
Identifies
and briefly
discusses
socially
responsible
acts that
will not add
significant
cost to the
business
but does
not support
ideas and
reasoning
(justificatio
n) with
the course
material
and case
study facts;
but need
0 points
Socially
responsibl
e acts that
will not
add
significant
cost to the
business
ideas were
not
discussed.
.
(0)
showed
insightful
understandin
g of social
responsibility
.
(2.025 -
2.25)
(1.8 - 2.024) some
development.
(1.575 -
1.799)
significant
developmen
t or one
element not
discussed.
(1.35 -
1.574)
Criteria
4 Above Average Sufficient Developing
Needs
Improvement Failure
Conclu
sion
0.75 points
The
concluding
paragraph is
brief , clearly
written and
summarizes
the report
providing
specifics as
to the major
features
discussed in
the
report. No
new
information
is
presented.
0.6375 points
The
concluding
paragraph is
brief and
summarizes
the report
providing
some of
the major
features
discussed in
the report but
development
is
needed. No
new
information is
presented.
0.5625 points
The
concluding
paragraph
attempts to
summarize
the report but
does not
address most
of the major
features of the
report; signiifi
cant developm
ent is
needed. New
information
may have been
brought into
the report.
0.4875
points
Summary
paragraph
exists but
failed to
discuss the
major
features of
the
report. Ne
w
information
may be
introduced.
(0.45 -
0.524)
0.22
points
No attempt
to provide
a conclusio
n.
(0 - 0.44)
(0.675 -
0.75)
(0.60 -
0.674)
(0.525 - 0.59)
Audien
ce
awaren
ess
1.25 points
Demonstrate
s awareness
of the
audience's
identity,
knowledge
and context
(including
possible
assumptions
and
perceptions).
The entire
document is
written
without
losing site of
the
audience.
(1.125 -
1.25)
1.0625 points
Demonstrates
significant
awareness of
the
audience's
identity,
knowledge
and context
(including
possible
assumptions
and
perceptions).
There is one
or two places
in the
document
that loses
focus of the
audience. Ma
y sound more
like a paper
instead of a
report.
(1.0 - 1.124)
0.9375 points
Demonstrates
some
awareness of
the audience's
identity,
knowledge and
context
(including
possible
assumptions
and
perceptions).
There are
three or four
places in the
document that
loses focus of
the
audience. May
sound more
like a paper in
places instead
of a report.
(0.875 -
0.999)
0.8125
points
Demonstrat
es little
awareness
of the
audience's
identity,
knowledge
and context
(including
possible
assumption
s and
perceptions
). Strongly
reads like a
paper
instead of a
report;
makes
reference to
owner
rather than
addressing
the memo
to the
owner.
0.3745
points
Presents or
reads as a
paper
rather than
a report.
(0 - 0.74)
(0.75 -
0.874)
Report
Organi
zation
1.25 points
Organization
fully
appropriate a
nd effective f
or
topic (point
of view,
unity,
paragraphing
); very
strongthesis/
purpose
statement &
conclusion;
paragraphs
have
effective
topic
sentences.
(1.125 -
1.25)
1.0625 points
Organization
appropriate a
nd effective
for
topic (point of
view, unity,
paragraphing)
; strong
thesis/purpos
e statement &
conclusion;
paragraphs
have sound
topic
sentences.
(1.0 - 1.124)
0.9375 points
Organization c
ontrolled but
limited; some
problems with
paragraphing
or sequencing,
limited
purpose
statement/the
sis or
conclusion; lim
ited use of
topic
sentences.
(0.875 -
0.999)
0.8125
points
Little or
poorly
controlled
organizatio
n; incorrect
paragraphin
g or
sequencing;
purpose
statement/t
hesis,
conclusion,
topic
sentences
may
be missing
or
incomplete.
(0.75 -
0.874)
0.3745
points
Minimal att
empt at
paragraphi
ng, often
unsuccessf
ul; strings
of
sentences;
no purpose
statement/
thesis,
conclusion,
or topic
sentences.
(0 - 0.74)
Vocabu
lary
1.25 points
Broad and
fluent range
of
vocabulary;
1.0625 points
Good range
of vocabulary;
frequent use
of business
0.9375 points
Adequate
range; no
precise use of
subtle
0.8125
points
Narrow ran
ge; many w
ord
0.3745
points
Simple voc
abulary,
often
elaboration
and detail
achieved
through full
use
of business
terms; concis
e and
appropriate
use of
vocabulary (f
ormal
English);
correct use
of word
forms and
word choice.
(1.125 -
1.25)
terms;
appropriate
use of
vocabulary (fo
rmal English);
correct use
of word forms
and word
choice but
could be
more concise
or more on
point.
(1.0 - 1.124)
meanings
displayed; busi
ness
terms only
used
occasionally;
vocabulary so
metimes used
inappropriately
; 3-4 instances
of wordiness
or
colloquialisms
(informal
English); often
incorrect use
of word forms.
(0.875 -
0.999)
form errors;
business
terms and
other
vocabulary
often used
inappropria
tely; only
basic and
elementary
meanings
are
conveyed; 3
or more
instances
of wordines
s or
colloquialis
ms (informa
l English).
(0.75 -
0.874)
inappropri
ately used;
no control
of word
choice and
word
forms; no
attempt to
use busine
ss
terms; man
y instances
of wordine
ss or
colloquialis
ms (inform
al English).
(0 - 0.74)
Senten
ce
Structu
re
1.25 points
Mastery of
sentence
patterns
demonstrate
d; error-free
sentence-
level
grammar. C
orrect use of
1.0625 points
Sentence
patterns most
often
successfully
used; 1-2
grammatical
errors on the
sentence level
(e.g. word
0.9375 points
Sentence
patterns most
often
successfully
used; 3-5
grammatical
errors on the
sentence level
(e.g. word
0.8125
points
Many
sentence
structure
problems;
5-7
fragments
or run-on
sentences;
0.595
points
Replete wit
h errors in
sentence
structure
and
sentence
grammar;
more
spelling,
capitalization
, and
punctuation
error-free.
(1.125 -
1.25)
deletions,
possessives,
prep., tense);
1-2
fragments, or
run-on
sentences). O
ccasional erro
rs in spelling,
capitalization,
and
punctuation;
sometimes
distracting.
(1.0 - 1.124)
deletions,
possessives,
prep., tense);
3-4
fragments, or
run-on
sentences). M
ore than an
occasional erro
rs in spelling,
capitalization,
and
punctuation;
often
distracting.
(0.875 - 0.99)
grammatica
l errors
distract
from
meaning. S
pelling,
capitalizatio
n,and
punctuation
errors are
frequent
and
distracting.
(0.75 -
0.874)
than 5
fragments
or run-on
sentences.
Spelling,
capitalizati
on, and
punctuatio
n
errors thro
ughout.
(0 - 0.74)
Criteria
5 Above Average Sufficient Developing
Needs
Improvement Failure
Attenti
on to
Instruc
tions
2.5 points
The paper
contains all
major
assignment
tasks. The
paper also
includes
completion
of all minor
aspects of
the
assignment
such as table
2.125 points
The paper
contains all
major
assignment
tasks. The
paper missed
one minor
aspects of the
assignment
such as table
creation if
required,
third person
1.875 points
One major
assignment
tasks or two m
inor aspects of
the
assignment
missed such
as table
creation if
required, third
person writing,
required use
of course
1.625
points
Two major
assignment
tasks
and/or
three minor
aspects of
the
assignment
s missed as
table
creation if
required,
0.745
points
Three or
more
major
assignmen
t tasks
missed or
more than
three
minor
aspects of
the
assignmen
creation if
required,
third person
writing,
required use
of course
material,
outside
sources if
needed,
inclusion of
page and
paragraph
number, no
use of books,
assignment
format and
avoidance of
using direct
quotes.
(2.25 - 2.5)
writing,
required use
of course
material,
outside
sources if
needed,
inclusion of
page and
paragraph
number, no
use of books,
assignment
format and
avoidance of
using direct
quotes.
(2.00 - 2.24)
material,
outside
sources if
needed,
inclusion of
page and
paragraph
number, no
use of books,
assignment
format and
avoidance of
using direct
quotes.
(1.75 - 1.99)
third
person
writing,
required
use of
course
material,
outside
sources if
needed,
inclusion of
page and
paragraph
number, no
use of
books,
assignment
format and
avoidance
of using
direct
quotes.
(1.5 - 1.74)
t missed
such as
table
creation if
required,
third
person
writing,
required
use of
course
material,
outside
sources if
needed,
inclusion
of page
and
paragraph
number,
no use of
books,
assignmen
t format
and
avoidance
of using
direct
quotes.
(0 - 1.49)
Criteria
6 Above Average Sufficient Developing
Needs
Improvement Failure
APA
Style
(6th
ed.)
1.25 points
One to 2 APA
style or
usage errors;
Proper
citation of
source
material is
used
throughout
paper;
Reference
titles follow
APA with
only the first
word, the
first word
after a colon
and proper
nouns
capitalized.
(1.125 –
1.25)
1.0625 points
Attempts in-
text citations
and reference
list but 3 -
4 APA style
errors noted
or fails to use
APA citations
when
appropriate
1-2 times.
(1 – 1.124)
0.9375 points
Attempts in-
text citations
and reference
lists; APA style
errors are
noted
throughout
document with
5-6 errors
noted; Fails to
use APA
citations when
appropriate 3
- 4 times in
document.
(0.875 – 0.99)
0.8125
points
Attempts
in-text
citations
and
reference
lists; Fails
to use APA
citation
when
appropriate
5-6 times;
Fails to use
APA
citations
when
appropriate
5-
6 times in
document
or presents
a total of 1-
2 in-text
citations
and
reference
list in a
paper
when requir
es APA
citations
are needed
0.3745
points
No attempt
at APA
style; or
attempts
either in-
text
citations or
reference
list but
omits the
other.
(0 – 0.749)
throughout
the
document.
(0.75 –
0.874)
FoodTruckr | How to Start and Run a Successful Food Truck Business
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50 Food Truck Owners Speak Out: “What I Wish I’d Known Before Starting My Food Truck” on October 1, 2013 in Marketing, Truck Profiles 2533 comments
Do you remember the enthusiasm you felt upon that initial spark: “Hey! I should open a food truck!” What would you say to yourself now, these many moons later? Would you warn yourself off, or encourage yourself forward? We at FoodTruckr wanted to know, and we bet you do too. So we asked food truck owners from across the country one simple question: What’s the one thing you wish you’d known before you started your food truck? Oh boy, did you all deliver with the advice! From the cynical to the hilarious, you shared tremendously practical insights for any aspiring food truck owner (or those that may want some reminders). This is precisely the type of knowledge we here at FoodTruckr aspire to curate and share in our quest to offer the ultimate business resource for the entire food truck owner community. The advice starts with can’t miss business fundamentals.
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Establishing the Business
Starting a business is never easy, but when your business can cross city and county lines on a daily basis, it’s particularly challenging. From fighting City Hall to complying with tricky health code regulations—all while working incredibly long hours—running a food truck is not for the weak- willed. You’ve got to be a tough cookie!
Regulations and Permits
Hands-down, navigating all the regulations was the most consistent external source of frustration we heard. At least one of our respondents decided to do something about it.
Rachel from La Cocinita
I wish I’d known that it would be so difficult to obtain a permit to operate our truck. That struggle—which took months—was what initially inspired my partner and me to start the New Orleans Food Truck Coalition back in early 2012. We spent a year and a half working with city officials on legislative reform, which were just recently passed by the City Council and the Mayor. Starting in January, there will be 100 permits for food trucks (there were previously only a dozen or so). Also, we have gained access to certain areas of downtown that were previously off limits to us. We increased the amount of time food trucks can stay parked in one spot from 45 minutes to 4 hours. And most significantly, we completely eliminated the proximity restriction that prevented us from parking within 600 feet of restaurants.
Ben from Luke’s Lobster
I wish I had known how anti-truck the NYC government is. If I had known that there was no way I could legally own a permit for my business, that it was illegal to staff my truck the way I staff a restaurant, and that it would suddenly become illegal to sell from a metered parking spot whether or not I pay the meter—in short if I had known that despite running an honest business I would have to operate in gray areas of the law at the whim of the NYPD, I would have been more prepared for the trials of the business.
Felix from Gillian’s Italian Ice
I will tell you though that when I bought my truck, I expected to be able to park it somewhere and be able to sell without being bothered. This is not the case, and the special permit needed requires everything from a lease to rent the spot I am parked in, to providing toilet facilities. The fine is heavy if you are caught selling on the side of a road, for example. The other thing I wish I knew, I still do not know. What EXACTLY do my customers want? I have come to realize that customers themselves hardly know what they want. I can take the advice a customer gives, like stocking a different item, just to have that same customer never purchase the item once I have it for sale. Go figure.
Bollywood Zing
I wish I would have known what all went into the permitting process and how involved it is so that I could have been more prepared and ahead of the game.
Jordan from Mustache Mike’s
One thing I wish I would have known before getting into the food truck business would be all of the needed back-end permits, licenses, certifications and insurance requirements that are all needed in order to operate. As an owner, it can get quite confusing trying to keep up with and understand all of the different mobile vending laws & to obtain all of the required credentials. Each state and city’s requirements are all different, but out here in California, you need about a handful of different credentials before opening up your doors such as a California Seller’s Permit (from the state), a Local Health Department Permit (from the county), a city business/peddler’s license (from the city), etc. As a food truck owner you would also need to have a Food Safety Handler’s certification and even your truck itself needs to be certified as well through the Housing & Community Development (HCD Department)…and if you operate in multiple counties or in different cities, you would need a whole new set of credentials for those locations as well.
Chuy from Mariscos Jalisco
I wish I would have known how much the regulations would change over time with the general acceptance of our industry. I believe there needs to be a central location for all food truck vendors to check the laws and regulations of each county (and hopefully all cities) in California and eventually all states. FoodTruckr note: We’re working on it, Chuy! This is a long-term goal for FoodTruckr.
Roy from Champion Cheesesteaks
The biggest thing: how shocking the regulations in different states are. For instance, in Georgia, we are in the most regulated state in the country, strong in terms of what the health department required, and there’s no streamlined method of being able to get a truck approved because each county is different. It’s almost impossible to get a license.
Melissa from Melissa’s Chicken and Waffles
I wish I would have known the cities codes and regulations. Sometimes different counties require certain licenses and permits. Also, check with promoters, farmers markets, lunch spots, etc. about their waiting lists for trucks. A lot of trucks come out with the thought that they will be able to bring their new truck to all these events but sometimes the waiting lists are months, even years.
Peter from Organic Oasis
I wish that I had known about the bathroom letter requirements for parking more than one hour in Los Angeles. FoodTruckr note: The Los Angeles County Health Department has strict regulations—food trucks parked over an hour must have access to a bathroom within 200 ft of the truck.
Planning the Business
Food trucks may seem like fun, but they require serious business planning to be profitable and sustainable. Many food truck owners expressed great thoughts on this very point.
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Juan from MIHO Gastrotruck
Always prepare for the unexpected; truck breaking down, selling out too soon, preparing too much. The best advice I can give is just like any other business you venture into, “Do your homework and write a solid business plan!” There are so many trucks that rolled out that didn’t do the proper R&D, financial projections, break- even and capital requirements. Without this essential piece you are setting yourself up to fail.
John from Capelo’s Hill Country Barbecue
The food truck business is not just about your passion for food. It’s a crazy combination of business, time management, marketing and most importantly making people happy with your product. How you spend your time is extremely valuable to the success of your food truck business.
Joe from Chef Joe Youkhan’s Tasting Spoon
I wish I would have known how truly expensive it was going to be to get the business off the ground. Even with a detailed business plan, it was 30% more than anticipated.
Lisa from Two for the Road
Expect it to cost you a lot more than you think to run your business. You need a license for every city you visit. Liability insurance will run upwards of $1900 per year. Fuel costs are very high—most trucks only get about 7 MPG. You will be at the store or stores every day because you cannot buy in bulk, often because you don’t have the space to store the product. This means that you will often pay more than a regular restaurant does.
Sameer from Rickshaw Stop
No matter how good your food is, your business plan needs to be equally good—if not better—and vice versa. Do your homework about your market. Don’t think The Great Food Truck Race windfalls will be as easy as seen on television. It’s a business, not a cooking hobby.
Leah from Babycakes Truck
I would have to say that I wish I had better understood the food truck climate in Chicago, where consumers are rather uneducated in general about food trucks and the city seems utterly opposed to the entire industry. I had researched the market in LA and New York and had some major misconceptions about how much money a food truck here in Chicago would realistically be able to generate in a day. The truth is, my food truck serves more as an advertising vehicle for other revenue generating channels, such as catering, food delivery and cooking classes. Though we do make money with the food truck at special events, the daily grind is just not that profitable. Luckily I have been able to diversify with various revenue streams to make my company viable financially.
Chea from Little Eataly
I wish I knew to trademark my business name at the state level & federal level to keep large empires from squashing us little guys.
Louie & Daniel from Rito Loco
I think the one thing that we wish knew prior to getting into the food truck business is how efficiently we could actually run the business. When we first started in August 2012 we hired a marketing/PR rep—a waste of money! We spent extra money all over the place, and when we got to the winter it taught us how to run a really lean operation.
The Day to Day: Time and Money
Hands-on ownership: it’s not a suggestion; it’s a requirement. And vacations are hard to come by. Be prepared to roll up your sleeves.
Stephanie from Seabirds Truck
I wish I knew that I, as the owner, would have to be hands on the majority of the time in order for the truck to be successful financially. A few months into starting the truck, I realized that in order for us to grow, I needed to remove myself from the truck to have time for answering emails, booking stops, developing new menus, promotion and marketing, etc. But with doing that, I had to pay about three people to replace me, and I noticed that the quality of product and service dropped. For instance, sometime menu items would be served that were under my standards or we would open our doors for service later than we had on our schedule.
Kenneth from Devilicious Food Truck
We have learned that this industry relies on the cooperation of other food truck owners, local businesses and suppliers. There is more to the back end of the business which we didn’t realize before starting it. There is networking, finding reliable suppliers and food preparation, lots of food preparation. Basically owning a food truck is your life.
Timothy from Flatiron Catering Group
The food truck world is just like a restaurant, it’s dog-eat-dog, and no one is going to help you figure it out. The way to succeed is to earn respect from your fellow food truckers.
Paawan from The Chai Cart
I wish I had known that this business would really limit my ability to take vacations. I run 3 chai carts in downtown San Francisco and chai is something people have everyday. As there are really no options for authentic and/or good chai in San Francisco (Starbucks and the likes do not count), my customers expect us to be open every day. It’s great to become part of people’s lives, but it does add the pressure of running the business seamlessly, without any breaks.
Matt from Scratch Truck
The one thing that I wish I knew before I started is that the time it takes to make a truck successful. I am sure it is the same in any business, but I didn’t realize it would be a 7 days a week, 11 hrs a day. If my eyes are open, I am working on the business in some capacity. It is all-consuming. I love it, but didn’t realize there would be so much to do all the time.
Selling the Food
In a low-margin business, there are a few tweaks you can make to increase your odds of success, especially when it comes to the selection of ingredients and events.
Prep Time
How small are those margins, Nick?
Nick from Slider House Burger Co. and Tortally Tasty
I wish I would have known that it’s an endless cycle of long, long hours day in and day out. As Jacob Bartlett of the Mastiff truck said, “We don’t work full time. We work all the time.” And it has been my family business since 1926 so I have a very unique view on it that has kinda been warped by the online business world. There are tiny- ass margins and way too many people to deal with. And what I’ve found in this industry is that the most successful truck operators are the ones who 1) have a passion for food and 2) love people and interacting with them daily.
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Christina from Son of a Bun
Before I got into the Food Truck Business, I wish I knew how time consuming it was to get all my product. It is difficult for food trucks to receive product deliveries, because a last minute event may pop up and you won’t be able to stay there to receive it. Now, I spend extra time in the mornings just driving around in my cars, shopping for ingredients. My advice: engineer your menus to be simple and don’t use too many ingredients or specialty items.
Guy from Nana G’s Chicken & Waffles
The amount of time you’ll spend shuttling food…I feel like I’m always at Restaurant Depot, Sam’s, or the local grocery store.
Scott from Streetza Pizza
Owning a food truck is a much greater time commitment than most potential owners think. Especially when you are making things from scratch. The amount of prep and post sale time is actually about equal to the service time. Something to take into account when you are estimating your labor costs in your P&Ls.
Events
Make food so good it sells itself…almost. Finding the right events to attend is an art in itself.
Fishlips Sushi
The one thing I wish I’d known: how to find the good location for serving! FoodTruckr note: It’s the holy grail, right?!
Michael and Cheryl from The Burger Bus
If possible, try to secure some locations to park your food truck. Find as many as you can, they don’t always work out.
Jamie from Where’s the Fire
One thing I wish I knew before starting this business is how much work goes into it…I mean I didn’t think it would be easy, but most outsiders just think “Oh my goodness your job is so easy, you cook on your truck for 5 hours and you’re done.” No! It takes soooo much time cleaning, shopping, prepping, menu changes & development, driving, on site cooking & cleaning, emails, interacting with coordinator, marketing, increasing catering sales, etc. Catering for a food truck is where the big bucks are.
Dustin & Kristin from Dusty Buns
We wish we could’ve known the amount to prep for each new gig. After our first year, we started building charts and learned that wisdom only comes with time and trials. We hope to keep up with the ever-changing market and improve each year!
Stephanie from Seabirds Truck
The nature of the food truck industry relies a lot on chance and luck; you roll the dice every time you go to an event without a guarantee of sales. Sometime you score big and other times you lose money. You have to rely on a lot on the word of event organizers that may exaggerate a little to get your truck to come. Or they may want a fee or percentage for you to be at their big event. You never really know what to expect, but with time you can start to understand the patterns a bit better.
Mike from Garliscapes Food Truck
Booking, booking and booking. The ability to book the right events is the single most important piece to this “food truck” puzzle. When we started, I thought “if we have great food, they will come”. That is true, but if you’re at a bunk event because you booked incorrectly, you’re out of luck.
Lisa from Two for the Road
Fees are high to attend events ($200-$900) and many places you stop will require that you give them up to 20% back of your sales.
Rhea from Neri’s Curbside Cravings
Oh, how I wished I would have known right away which locations and events make the most! When we decided to get into the food truck business, we were ready for all the hard work that any business entails. Being in the food industry (having a family run business and my own share of restaurants in the previous years), I know that this is a business that requires a lot of patience, long hours and diligence.
Jim from Jimmy Ray’s Bar-b-que
When we built our food truck, we built it with the intention of concentrating on the on-site catering business. The business has been good, but there are times when you need to fill in with the other types of business as well such as vending. Being at street, farmers markets, fairs, festivals, or special occasion vending are what adds to the fun of your business and definitely help in the bottom line. Try to make setup time, after you reach your site, a quick and somewhat easy chore. It takes us roughly 45
minutes to an hour to setup. Other trucks in the Association are setup in 5-10 minutes. We cook outside our truck, on a large grill, while all the others cook inside their truck.
The Trucks
We’ve covered the food side of the food truck business. What’s left? Oh yes, the truck.
Oh, Those Fickle Trucks
And you thought picking the right food was tricky! From temperamental transmissions to wonky power steering, your truck is both your best friend and your greatest adversary.
Nic from Blue Sky Dining
How to be a better truck mechanic! Anyone can make a pan gravy, but can anyone replace their power steering pump?
Nancy from Kurbside Eatz
One thing I wish I knew was that, I needed to get a job as a part time mechanic, if not, an electrician. I’m sure most will agree!
Nathan from Oh My Gogi!
We are going into our 4th week now and my Gogi truck is a 1987 Chevy StepVan. She has “who knows how many miles” and a countless number of people who have tried to rig her to run. Me being a car enthusiast, I want the old girl to run properly. That being said she really needed a lot. Replaced the entire transmission, the driveshaft, tires, brakes, wiring, re-customed the interior, had the engine tuned up. But even now I am having some engine issues. So to answer your question, the thing I wish I knew before starting would be to know which trucks run longer, have the quickest available replacement parts, which is easiest to maintain, the pros/cons of diesel vs gasoline. The cooking, cleaning and serving are the fun part, even if I’m working 18 hour days. Sucks being stuck on the side of the road thinking about all the profits being lost on a Saturday night.
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Ryan from Dashboard Diner
We should have built two food trucks instead of one. We have had great success since launching the truck in the fall of 2011 and are currently in the process of getting ready to build another one in the future. The food truck business is the future of restaurants.
Evangeline from The Buttermilk Truck
The one thing I wish I would have known is all the extra maintenance that comes with owning and operating a food truck; including, but not limited to generator maintenance, equipment maintenance, vehicle maintenance etc.
Julie from Sam’s ChowderMobile
The one thing we wish we knew before starting in the food truck business is the amount of maintenance/repairs that would be required for our trucks. A typical restaurant deals with ongoing maintenance for the facility and kitchen equipment. With a food truck, you have those same maintenance issues, but in addition, you have all the maintenance issues that come with owning a heavily used vehicle. Our trucks serve the entire San Francisco Bay Area, as far north as Napa, and as far south as Monterey. Being headquartered in Half Moon Bay, they put on a lot of mileage, and there is constant need for them to be serviced, which gets expensive, and causes them to be unavailable for periods of time.
Wendy from W.O.W!
I wish someone had told me not to cut corners when purchasing the truck. I wish I had gotten a newer truck. We had so many repairs the first year we were in business. We had to replace the engine, transmission, all tires etc…if I had just taken that money and bought a better truck in the first place we would’ve been much better off.
Adam from Food Shark
I wish we knew that Honda EU 2000 generators were the way to go with generators. Well, someone actually suggested we get some and they worked out well (we use 3 every day now). You can take them tens of feet from the truck, so you won’t get gassed out. It’s more for a place where you’re gonna set up and be for awhile with some space around, like we pretty much always are (not for a mobile city unit unless you have them mounted on top but then what a bitch to have to climb up there and start them every day). If you have a big loud generator on the front or rear bumper, you might give yourselves carbon monoxide poisoning which over time is not too good not
to mention the noise. Anyway, portable, quietish, dependable generators which you can move fairly far from the truck will keep the occupants healthier, at least for Food Shark.
Jenny
I wish I would’ve taking the opportunity to look at other food truck’s layout, before I customized mine.
Andrea from Border Grill
We designed and custom built our trucks. This has been incredible…learning how to create a super efficient cooking machine. We can produce just as many orders out of our trucks as a restaurant kitchen ten times the size. We love the trucks!
Joel from St. John’s Fire
Since I have been in the restaurant business for over 30 years the easy part was the menu and food. I think what I need most was some guildlines on the build out of the truck. For example, what size of fresh water tank is needed for a two shift day? How much propane is need for a week? Generator size? Does an air conditioner really make a difference in a 130 degree truck in Houston summer? FoodTruckr note: We’re going to guess the answer to that last question is yes.
Justin from Bernie’s Burger Bus
I would have become a diesel mechanic first.
Connecting with People
You’re nowhere without your customers. And your super-fans are the lifeblood of your business. Becoming a master of ceremony is just as important as becoming a master chef.
Social Media and the Fans
Ultimately, connecting with neat people and engaging them in friendly conversation is the most rewarding part of the business. And if you can keep that going, that’s how you build up a loving community of regulars that shows up frequently.
Chef Heidi from The Flip Truck
The one thing I wish I had known before I began my business would is how critical a big social media push would have been to help launch the business. I would have put way more focus avenues like Twitter, Facebook, Instagram and the likes … connecting, announcing, introducing, giving offers, specials and a better communication effort to the world of social media. I didn’t realize the enormous community that relies on social media and had I started that focus three years ago, I feel like we would have come to a certain level of success long before we did!
Mark from The Hogfather BBQ
The one thing I wish I knew prior to operating The Hogfather BBQ food truck is that I never expected such enthusiasm for the brand. I thought people were honking at me because I was driving slow, but once they got up to the side and front of my vehicle they would take pictures, wave and give me a thumbs up approval. It took some time getting used to that, especially when I timid driving a large truck.
Beckie from Quiero Arepas
Nothing. It was great to go into this completely unaware. When disaster strikes you are convinced that no one has it so bad. Then, through talks with other owners, the knowledge you gain along the way and the building of an amazing repair person arsenal, you feel empowered that you have EARNED your place every day. There isn’t anything we’d rather be doing. We love our truck!
What Say You?
What in this round-up resonates with you? Did we miss an important warning to future food truck owners? Please share in the comments! We’d also love to read your response to the all-important question: What’s the one thing you wish you’d known before you started your food truck? If you haven’t started your food truck yet, what’s the biggest question in your mind before starting? We so appreciate your continued input on this important topics because it helps to shape the future of FoodTruckr content. We’re here to serve your interests; we’re building this resource together. We look forward to connecting with you in the comments below! images by pasa47, troismarteaux, meddygarnet, BruceTurner, Townsquare Media Albany, AlishaV, weeklydig, and Scott McLeod
THE COMPLETE BREAKDOWN OF FOOD TRUCK OPERATION COSTS by Support Staff on April 10, 2014 in How To
Food trucks are advertised as a cheap way to start a business. But if you’re planning to get into the food truck business solely for the reason for low start-up costs think again. The initial investment and on-going monthly costs are significant. In this article, we’ll outline the basic costs starting a food truck and provide a spreadsheet you can use to estimate the price of getting in the game.
Food Truck Expense Breakdown – Download this spreadsheet and plug-in your own numbers to get an overall estimate of what it will cost to get the business up and rolling.
THE MYTH A couple reasons food trucks are considered a low-cost business is that you don’t need to sign a lease for single restaurant location and can get by with few employees if you plan to manage the day-to-day operations yourself. These advantages are true, but that doesn’t mean there won’t be overhead.
Depending on the regulations of your city, you may be required to use a commissary. Commissary costs can run from $400 – $800 per month depending on the services that are provided and location. You’ll also need to pay for insurance that can easily run from $2000 – $4000 per year depending on coverage levels and what percentage of the year you plan to operate the truck. There’s also permits and business license fees that are required just like any other business. Then there’s the truck.
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The food truck or trailer is the biggest and most part of your investment. After all this is where you’ll be spending most of your time, cooking, and it also promotes the brand and vision of your vending. You’ve probably read that the cost of a food truck can vary greatly. Anywhere from $15,000 – $100,000 is the range that a food truck can cost, but most fall somewhere in the middle.
Reader Warning: Most experienced and successful long-term food truckers will tell you that opting for the cheapest vehicle and equipment isn’t the way to go. The vehicle truly is the heart and sole of your business and investing in better quality equipment can help reduce repair frequency and help ensure you’ve got more up-time.
Here are a few supplementary resources you can use to get a wider swath of perspectives on the costs of operating a food truck:
Food Truck Case Study – This is a case study with Anthony Salvagno that takes you through the fullprocess of starting a food truck in real time. There’s a full episode on how much was invested in the food truck. If you want a realworld example of how to start a food truck this series is it.
Are Food Truck Start Up Costs Low? – Eric Silverstein is the owner of The Peached Tortilla, an award winning food truck in Austin, Texas. In this article Silverstein shares his perspective on the topic of food trailers being a low-barrier to entry business.
Food Truck Economics – In-depth breakdown and analysis of the expenses of operating a food truck. Recommended reading.
HOW TO USE THE SPREADSHEET We encourage you to download the food truck cost spreadsheet to estimate how much starting your vehicle would cost. Remember that every city / state will have different laws and requirements so your cost will vary. This spreadsheet is a great way to get you in the ball-park for a cost estimate.
Food Truck Startup Costs Equipment Estimated Cost Notes Food Truck + Wrap & Equipment $25,000 – $100,000 Feel free to add your personal notes
here. Initial Product Inventory $1,000 – $2,000 Permits and Licenses $100 – $500 Varies a lot depending on where you
operate. Website Free – $5,000 Varies a lot depending on what you want.
Facebook / Twitter Free Register / POS $200 – $1,000 Can also use an iPad and an app for
credit transactions. Uniforms / TShirts $0 – $1,000 Paper Products (Plates / Napkins, etc.) $200 – $300 Misc. Expenses (Like a Chalk Menu) $500 – $2000 Plan for some unexpected expenses
here and put it into the budget. Smallwares: Pots, Pans, etc. $1000 – $2000 Fire Extinguisher $100 – $300 Total Low End $28100 Total High End $114100 Food Truck OnGoing Costs Item Monthly Estimated Cost Notes Commissary $400 – $1,200 Varies greatly depending on location and
services provided by commissary. Phone / Internet $100 – $200 Fuel $500 This will vary a lot. Labor ??? $8 – $15 per hour is average rate. Repairs $1000 Better to budget for it. Food / Beverage Restock ??? Depends on food cost and frequency of
operation. Paper Product Restock ??? Depends on food cost and frequency of
operation. Total: ??? After you get the cost estimate figured out. The next thing you’ll want to do is estimate how many meals per month you’ll need to serve to turn a profit after expenses. But that’s a topic for a future blog post.
Feb 26, 2013, 09:49am • 31,325 views
7 Habits of Great Small Business Owners
Newtek - Your Business Solutions Company Contributor i
When looking at the players in any industry, there are usually a handful of businesses that stand out ahead of the pack. So what exactly goes into making some more successful than others? More often than not, it comes down to the kind of leadership they have steering their efforts. Being a strong small business owner is an elusive enterprise, there is no one secret recipe to achieve. If there was a sure-fire way to be a dynamite small business leader, it would undoubtedly include the following 7 components:
1. They take care of themselves
Smart small business owners recognize that having a sharp mind requires having a healthy body. Attention is paid to eating healthy and making time for physical exercise. What lesser business owners might see as overly indulgent behavior is seen by truly astute managers as necessary maintenance of their most crucial tool: their brain.
2. They have lives outside their business
Spending too much time focused on any single interest will almost always lead to hitting mental walls. Leading a balanced life – taking time for interests outside of work – means exposing yourself to a diverse range of mental stimuli (you never know what might trigger a great idea), and giving your work brain the rest it needs to be focused.
3. They look forward
Being a great small business owner means being a great leader. Being a great leader is all about being bold and forward thinking enough to go beyond simply following proven business and market trends. The best small business managers are pioneers, even in small ways, and always keep their eyes open for new ways to accomplish things. This means taking chances, but if anything is a critical part of running a small business successfully, it’s a willingness to do just that.
4. They are organized
Sometimes having a head full of innovative business ideas can lead to being a bit scattered. The difference between a smart person who remains an ineffectual business owner and someone who takes command of their industry falls on having an ability to not just have good ideas, but to be organized enough to follow through with them. Keeping your meetings, deadlines, and business plan on a highly organized schedule, and sticking to it, will be what sets you apart from other small businesses that fumble in disorganization.
5. They nurture relationships
When you’re overseeing the management of a company, it can be easy enough to get caught up in the day-to-day work and forget to look up from your desk. The importance of taking time to stay in touch and have thoughtful, generous interactions with clients and professional associates cannot be undervalued.
6. They make decisions
Small business owners have to be decisive. It’s simply not optional. From daily operations to broad directional choices, your job is to lead your company, which means waffling with indecision just will not work. The ability to make decisions is directly related to your sense of confidence, so if you find yourself not knowing which choice to make, remind yourself that you are an expert at what you’re doing and trust your gut. If the particular decision on the table involves a part of your business that you aren’t a total expert about, deciding to consult someone more informed is still a valid decision.
7. They cut the fat
Proactive small business owners are constantly evaluating and re-evaluating which parts of their company can be more streamlined, including which vendors and suppliers could possibly be swapped out for better sources and how work is divided. Knowing how your company’s time, man power, and financial resources are distributed – and paying steady attention to keeping that distribution as efficient as possible – is how small business owners keep their company thriving ahead of the competition.
