If you are starting a food truck business and are about to buy a food truck, you need to know what the common concerns are that others in the industry have faced when they have been in the same predicament. What’s important is that when you buy a food truck, be sure to partner with a food truck company that can help you navigate any problems that might come up and that uses your business goals as the foundation to your build.
Here are three problems people often experience when they go to buy a food truck with some tips on how avoid the common pitfalls that complicate the food truck buying process for others.
1. When You Buy a Food Truck and Pick the Wrong Financing Option
Unless you plan to buy a food truck using cash, you will likely need to finance it. The best food truck companies help their clients find the right financing for food trucks. Working with the food truck builder is ideal because they can help you avoid the typical problems other food truck buyers run into. For example, some people try financing food trucks through auto loan financiers, and two outcomes usually happen: the rate is ridiculously high, or lots of time is invested into trying to finance the food truck but it falls through due to the nature of the commercial nature of the vehicle. When you buy a food truck with financing as an option, make sure it is tied into a business loan option with the right insurance.
2. You are Tempted to Buy a Food Truck that is Used
Another common problem people face when they buy a food truck is trying to decide whether to get a used one or a new, custom food truck. Unfortunately, people buy a food truck that’s used because the cost is significantly less and they think they are saving money. Here’s the problem: while they may be saving money up front on a used food truck, in the long run they will likely bleed out thousands. In 2018 more than 80 percent of food truck businesses failed in their first year of business. The main reason was they bought used food trucks that constantly broke down thus requiring thousands in repairs while they were off the street losing additional money to their competition. Though new food trucks cost more upfront, they are more reliable and only require routine maintenance. More so, they keep a food truck business running. Be sure to buy a food truck that’s new and customized to help you achieve your growth goals.
3. The Food Truck Size and Specifications
Another concern faced by those entering the food truck business is what size the platform needs to be. Also, when many people buy a food truck, they either under-invest in space and equipment in their quest to save a buck, or they go too big and wind up going home.
When you partner with the best food truck companies they should take your business goals, business model, geographic area, do some market research, and build a food truck that will not only accommodate your current needs but also offer room for adding equipment and team members when you grow and add new team members while extending your menu.
Follow these tips when you buy a food truck and you will be in the best possible situation to make a great investment while securing years of growth.