You don’t have to start a food truck business by being in debt. It is an acceptable way of starting a business but why do it this way when you can avoid getting into debt? At the very least, you should consider aiming for a low loan amount so you don’t stress on your first 2 years about repayment.
Before you even decide to limit your debt exposure, you have to accept that not applying for a big business loan will mean learning to cut corners whenever and wherever necessary provided you do not compromise on quality and integrity. You may also have to accept that it will require you to work harder since you may have to avoid hiring too many employees.
Keep Your Primary Income
A food truck business can start as a weekend business. This will allow you to keep your day job and schedule the food truck to go out on weekends and special holidays. Your plan should include the tipping point when you can transition to being a full time food truck business. This tipping point should include a net income that can support your lifestyle and a growing list of regular customers and venues where you can park your truck including a daily parking slot for the lunch crowd.
Look for Investors
If you have a great menu and fantastic reviews on your food, you can start searching for investors who will be willing to put up the capital for a food truck. Surprisingly, there is a growing number of business-minded entrepreneurs who do not want to work in a kitchen but want to own a food truck. These are the people you should target and you will see them roaming food truck areas and festivals looking for great food truck ideas.
There are also websites that connect investors with people who have business ideas like crowd-funding websites. Another option would be to approach friends and family although this kind of personal relationship can be troublesome down the road.
How about Starting Small First?
Instead of testing your food truck menu on a full scale kitchen truck, why not join food festivals with a small food cart first? The capital investment is much smaller and you get real feedback on your food – just like you would with a food truck. You will have to scale down your menu and only offer your most delectable item. However, you can also rotate your food to test each item in real time.