Business Plan
FINAL DRAFT
The owner has long considered opening a food trailer and serving simple recipes from it. This business plan lays the groundwork for developing such a business, articulating the associated business model, and determining the economic viability of both. -Marc Polster, Owner
Final update: Plan rejected. After further thought, observation, and consideration, I think that the food trailer idea is still a good one for a certain business segment and for different reasons, but for me, or any new "mom and pop" food trailer without an established brand to defend and extend, even one based on solid process in addition to great food, the time has expired for this opportunity. However, for established brands, it's a probable winner. It appears to me that the "bigs" have taken over the food trailer business, at least around Columbus. In fact, it appears obvious to me, even seems the natural business progression in this space. The trailers I see in public are those owned by established brands, established restaurants, etc. The trailers are lavish, expensive, glossy, clean, attractive, evidence of big budgets. Even the Franklin Park Conservatory has a food truck. I figure those big budgets are driven not by the trailer sales--which are likely small in comparison with the restaurant--but by the trailer's usefulness in marketing the restaurant, the brand, the food and also live-testing all of it in different locations, possibly in advance of and required information for the business investing in any future promising location. Such established businesses have the money, market, and knowhow advantages that make effective barriers to entry for smaller players. They can offer products that are already accepted, ask little of the consumer, and they can "dump" them on the market--i.e. price them below cost--if they so choose. As far as I can tell, there would be no defense against such moves and the small player would be disadvantaged. This is not to say that a smaller player couldn't succeed, just that it would be much more difficult that my earlier imaginings. At this time, in Columbus, OH, it appears that the big food players have already conquered the market and are enjoying a new channel of value. Now, for small restaurants--e.g. VeganBurger or other real, actual restaurants that have started to establish a following, a brand, a recipe, etc, the food trailer could be a real boost to the business, if growth is desirable. It could be done at a lower budget but my sense is that it would be almost certainly worth the investment because it provides a flexible, adaptable platform to seek out and test new markets and foods, to get the brand "out there," and to point customers towards the brick & mortar restaurant on High Street. All the ideas, assumptions, data, etc in this business plan are still valid for an existing business--and also a BIG lift AND a distraction. However, the idea no longer works for me in the way I envisioned it. Those are my current impressions and I'm no longer looking into investing in this opportunity at the present time. -map
Business Vision:
- To offer a healthy, organic, vegan food products from a food trailer
- To earn a living
Business Mission:
- Provide simple and good food
- Quickly and efficiently with low wait times even at peak times
- At low cost
- From A Clean Trailer (as opposed to gross and yucky)
- Food has broad appeal
- Value Priced
- Consumable while walking
- More “side order” oriented than “entre”
- $1 options
- Served with lowest waste (landfill/plastic) manner practical. Wasserstrom green serving products.
- Zero plastic
Business Values:
- High value
- Low waste
- Fast, multi-queue, not wait-time limited, efficient intake of revenue, short fast moving lines
- Profitable
- Simple and uncomplicated
- Low ecological footprint
- Vegan, organic, not unhealthy
- Mobile, transportable
- Transparent
- Spotless
- Competent
- Visible Integrity
- Sustainable for the owner
- Flexible, adaptable, growable, easy to do business
Product Differentiation & Market Placement:
- The business will offer low cost, high value food that appeals to “the masses” and that appeals to a niche
- The business will offer food that’s not available elsewhere.
- The business is not necessarily designed to compete with other food trucks, but to compliment them by offering attractive sides not available elsewhere.
- Customers can buy an entre or meal from the food truck next door and then spend a couple extra dollars on delicious, easy to eat and carry side dishes.
- The business will offer food that is easy and not sloppy when consumed while walking. It will be easy and unsloppy to hold, carry and consume.
Possible Partners:
The owner’s partnership vision will accept partners that add value to the business. Non-involved equity (investors) partners will be considered but the preference is that partners have sweat and expertise equity involved, not just money.
Where the money comes from:
- The owner’s vision is to be “self-funded” initially. The owner will consider investment later after the business proves viable.
Start up costs (rough cuts, to be validated):
- Food trailer purchase price: $15,000
- Truck to haul trailer: $15,000
- Additional food preparation equipment: $5,000
- Obtaining food service licenses and preparing for inspections: $1000
- Business licenses: $1000
- Training: $1000
- Certification: $1000
Monthly Ongoing costs (rough cuts, to be validated):
- Food trailer insurance: $1000
- Business insurance: $1000
- Consumable food serving equipment and other items: $2000
- Hauler truck fuel: $1000
- Hauler truck and food trailer maintenance: $1000
- Food ingredients: $3000
- Staff: $0 (the owner works for free initially)
Projected Revenue:
- To be estimated and validated
Projected Cash Flow:
- To be estimated and validated:
Project Plan Task List:
- Research and understand the costs of purchasing, operating and maintaining a suitable food trailer. Example food truck cost analysis from the internet.
- Obtaining a mobile food license in Franklin County
- Research and understand laws and regulations concerning food trailers in Columbus and in Franklin County (if different) and the state of Ohio, and the US, and Canada, in that order. In other words, what steps must be taken and approvals gained to begin operating the business.
- Actual laws and codes for Columbus
- Research and understand what I need to know about food preparation and service and, in particular, how it’s done in a food truck.
- The Legal Side of food trailers
- Types of food trailer licenses
- Determine how to make my recipes vegan
- For example, what is the best vegan hot dog for half a special? Here’s a local option: The Good Frank.
- What is the best egg substitute for Swedish Pancakes and Matzoballs? Options from the internet.
- Best vegan milk substitute? Options from the internet.
- Prepare and test all initial recipes with a good cross section of consumers
- Design green and walkable serving containers. Wasserstrom green serving products.
- Collect and validate all costs involved
- Design and validate marketing plan. Concepts include:
- Use word of mouth marketing
- Use social media. Create facebook, instagram, and other accounts, feature high quality photos of food and happy people eating it while walking
- Generate whatever buzz can be generated
- Advertise matzo ball soup In the Jewish Press
- Advertise among various ethnic groups via their established channels
- Advertise within the Vegan community
- Offer vegan catering option
- Promote and cross marketing with Vegan Burger or others
Make go/nogo decision
- If go, start the legal, regulatory, inspection processes, i.e. file applications for permits, licenses, certifications
- purchase equipment
- Purchase supplies
- Prepare truck
- Prepare initial food inventory
- Determine first parking location and date
- First try: park, sell, see how it goes
- Second try: park, sell, see how it goes
- Continue to gather feedback and intelligence from all available quarters
- Research and evaluate apps in the food truck business
- Select green disposables and consumables
Future Strategic Considerations
Preparing food is not among the owner’s favored professional skills or interests. However, optimizing business processes is.
The business model envisioned recognizes “process excellence” as the core competency of the enterprise versus, say, food preparation. The business will rely on experts for recipes, techniques and will extensively test all food and processes before making a go/nogo decision.
This is not to say that the food will not be delicious and desirable, healthy, etc as stated above. Rather, it is the owner’s contention (to be tested) that the stated business mission can be best achieved by focusing on optimized business processes while leveraging partner food skills. If the owner can develop, test, and prove in a business model that is repeatable and adaptable, growth could be easier to achieve and not dependent on the menu. If growth isn’t desirable, then such a business model could be more successful anywhere, making it a sustainable livelihood for one.
Once a successful formula is derived through experimentation, improvisation, and feedback, that formula can (by design) be extended (scaled), twisted into different markets, sold as a “business in a box”–a form of franchising where the franchise is fully operational, self standing and self supporting–and adapted for different local tastes.
The elements of the business model that can foster rapid growth include:
- Process to secure operational readiness for any location in the US and Canada (anywhere, anytime)
- Food that is vegan, organic, clean, inexpensive, low cost, proven, high value, simple, low-risk, high appeal, easy to prepare and serve, amenable to green supplies.
- Simple lay out of food trailer to match business model
- Solar powered model as practical
- Repeatable and documented playbook
- Low peak wait times, i.e. scalable to high volume