grizzly0925
Knows what a fatty is.
Anyone follow specific template they liked when they got started or did you wing it? I am in the beginning stages of figuring some things out and want to get it all on paper.
We own a food trailer ever had a business plan drawn up. What is a business plan used for?
Longtime small business mentor here, including 6+ years with SCORE.
A business plan is A Good Thing. As you say, OP, figuring things out and getting them on paper. But it's not the first thing.
The most popular mistake I see is people getting all cranked up with LLC formation, Tax and Employer ID numbers, logos, ... maybe even some equipment, without ever talking to customers and scoping out competitors. Hopefully you have not skipped this step. Who will your customers be? What do they want to buy? How will you attract them? Who is the competition? What is your unique selling proposition that will make your business superior to theirs? .... and on and on and on.
I had a couple of guys who wanted to own laundromats. They did all the book research; census tract data, density of rental housing, average household size, etc. and identified a number of really promising locations. When they got in their cars and checked out the locations, there was a laundromat at every one! Subsequently talking to a supplier of laundry equipment, they were told that the only feasible way to get into the business was to buy someone out. The market would no longer support new entrants.
I'm seeing this with food trucks in our market. They are so popular with entrepreneurs that the used truck market is zero. Huge demand, no supply. Well I happen to believe that the food truck market here is saturated. The ones that appear to be successful have allied themselves with micro-brew tap rooms, parking outside on a regular or even constant basis. Without this type of connection, I think financial success of an un-aligned food truck is questionable. But ... the tap room market is also saturated and I am expecting a significant shake-out. So bye-bye to the food trucks serving tap rooms that disappear.
So .. in connection with a business plan, you have to be out there locating and talking to customers, locating and scoping out competitors, checking local laws and regulations, etc. The best business plan in the world will not save a business that hasn't found a viable market for its product.
Re templates: score.org has a number text and spreadsheet templates for free download.
I tried taking out a business loan through the SBA, so they required a business plan. I'm pretty sure I used the business plan creation tool through the SBA website, and it worked well enough. The hardest part was the financial stuff as it was much more in depth than needed for a small BBQ start-up.
As a heads up, if you're looking for startup capital (ie business loan) for a food business, you're probably going to be SOL...seriously. NOBODY wants to invest in food businesses and right now it's probably even harder than when I started my BBQ food truck in 2017. Food prices are still sky high and this is especially true for traditional BBQ meats. So just understand that you'll need to have your own money, or you'll need to utilize a personal loan rather than any kind of business loan.
Mind you my BBQ food truck was a bit unique in the sense that I was exclusively serving food on a military installation. As such I had my own particular challenges, but it also brought a very voracious and loyal customer base.
Feel free to shoot me a DM with any questions, and if you want I'll shoot you a copy of my business plan just as an example. Either way good luck moving forward and I hope things work out!