: Indianapolis Food Truck - Business Plan Example

Indianapolis Food Truck Table of Contents 0 Executive Summary 3 1 Business 3 2 Products and Services 3 3 The Financing 3 4 Mission Statement 4 2.0 4 2.1 Company Description 4 2.2 Market Analysis 5 2.3 Organization and Management 6 2.4 Services and Products 6 2.5 Marketing and Sales 7 2.6 Funding Request and Financial Projection 8 2.7 Appendix 9 3.0 Reference 13 1.0 Executive Summary 1.1 Business The objective of this business plan is to raise 60,000 United States dollars that will facilitate the development of a food truck while displaying the expected financial output for approximately three-year period. The food truck to be named Fair will be a Indianapolis based business that will offer mobile sales of fast foods to customers within its target market (How To Start A Food Truck Business). 1.2 Products and Services The main source of the business revenue will be from the sale of food that will be served from the tracks. The track will be operational within some sections of Indiana City. The business will specialize in offering general food. This will consist of beverages, fries, hamburgers, pizza, and many more. 1.3 The Financing In order to raise the start up cost of 60,000 United States dollars, the owner plans seek a loan for $55000 and obtain $5,000 from my personal saving. The interest rate of the financial institution is to be discussed in detail. This will ensure mutual benefit for both the business and the bank. However, this business plan presumes that the duration of the loan will be twelve years. The funds will be necessary for managing operations for the initial six months and development of the business truck. 1.4 Mission Statement The sole mission of this business will be to provide quality food that will supply consumers on a mobile basis. 2.0 2.1 Company Description At the start, the business will be under a single owner. The food truck business will deal with general food that will be uniquely prepared with a skilled chef. In order to make the food offered special, there will be fusion of cuisines and the use of organic ingredients. Some of the general foods the truck will offer will include fries, hamburgers, pizza, beverages, pork, chicken, salads, milk, coffee, tea among many more. What will make this food truck unique is that it shall be spacious. This will facilitate easy movement of customers. Furthermore, it will make the truck well air-rated. Second, the truck will possess small but comfortable seats for the clients. To gain more customers, the business will sell their food services with a price cut of five percent. In an effort to build good customer relationship, the business will emphasize on proper business ethics. This business aims to target mostly the middle and low-income earners within Indianapolis. For illustration, this will include both the male and female population working within Indianapolis and those passing through it. For the purpose of speedy growth of the business, any customer who will invite two new clients will have a free meal. This food truck is likely to succeed because, the prices will be manageable, and the truck will be spacious, timely delivery of services and availability of incentives for customers who will market the food truck. 2.2 Market Analysis The food truck industry has significantly grown in strength for the past five years. Furthermore, it has become one among the best performing sector within the large food services segment. The sudden change took effect in the industry from 2008 immediately, after the recession occurred. As an effect, hundreds of vendors opted to modify consumer preference into favoring distinctive, gourmet cuisine. Due to the effect of recession, bigger food service segments came to a halt. Therefore, this led to most of the consumers to shift to the food trucks. The shift could be attributed to their desire to maximizing income through indulging in inexpensive gourmet food. This has led to an increase in the industry’s revenue at a rate of 12.4% in duration of five years. It is proof without doubt that the market sector of the food industry is more profitable and easy to thrive in (Stennson). The biggest buyers from food trucks are the parents with children in their homes and the young adults. Those within the age group of twenty-five to thirty-five are the most consumers of snacks from the food trucks. They usually spend an averagely forty-four dollars a month. Majority of food truck owners have resorted to using new flavors and cuisine. The main critical need for the customers is a service that will meet their demand at affordable levels. Within Indianapolis, there are a number of food truck businesses. They have diversified their businesses in a manner to make unique hence more appealing to their customers. However, despite the existence of other businesses of food truck there is still a great chance of investing in Indianapolis. Reason being, there is high demand of food from the trucks by the consumers. Since they are always willing to pay for what they will give satisfaction. 2.3 Organization and Management The food truck will be a single person business. However, as a way of efficiently managing the operations of the business, the owner will employ two chefs. In addition, he will perform various management responsibilities. This will include, ensuring the food truck services are smoothly running, take inventory records, ensure that the environment for offering their service is appealing, building a good customer relation by asking for feedback about the service they have received. The business plans to hire two professional chefs who are in their youthful age and fall within all the legal regulations needed. Furthermore, they will be skilled to perform their duties as well as handling customers positively. The business also has plans of increasing the number of employees after it has fully established. The employed chefs will work in unison in a friendly manner within a productive environment that will aim at customer satisfaction. As the process of ensuring the continued performance of the food truck, there will be the formation of an unpaid advisory board. They will play a significant role in ensuring that the food truck business is in good shape at all times. Furthermore, they will also provide the business with an expansion plan. 2.4 Services and Products The food truck will be offering general food products. Some of which include fries, hamburgers, pizza, beverages, pork, chicken, salads, milk, coffee, tea, snacks among many more. These products will fit the target market because the study trends of parents with children and young adults reveal that they mostly depend on food trucks for snacks and many more. For illustration, the major buyers from food trucks are the parents with children in their homes and the young adults The business will be unique since it will be spacious with ability to accommodate a few clients who arrive on time. It will have free Wi-Fi services. In addition, it will have two chefs who will be fully skilled in preparing various cuisines. Customers will have access to speedy services and clients will be able to make special requests for the meal of their wish. To enhance effective delivery of service, the food truck will have a telephone number that will enable customers to call in and give their feedback or reservation. 2.5 Marketing and Sales The food truck business will ensure it attains popularity throughout Indianapolis. This will be effective through ensuring that the business is advertised in the social media platform; furthermore, the owner will ensure that the Ads of my business appear on all the local newspapers within Indianapolis. Also of great importance, the business will utilize catchy photos of hamburgers, meatball sandwiches, fries, and pizza on the body of my food truck. The business will be inclined towards meeting the needs of their clients. Therefore, since the business will only be having two chefs and the owner, the business owner will partially delegate advertising to independent individuals. The marketing efforts will aim at increasing the customer base for the new food truck. Similarly, the owner of the business will also initiate the marketing process by use of incentives. Such that for any two new clients a customer brings he/she will be entitled to a plate of a meal of ones choice. The general sales strategy that will use in the food truck business will incorporate two elements; this will include the sales force and sales activities. In order to keep the company running, the sales that are not to fall below a thousand dollars. 2.6 Funding Request and Financial Projection The successful start of the business will require $60,000. Therefore, the owner will seek a loan for $55000 and obtain $5,000 from personal saving. The duration of the loan will be twelve years. The funds will be necessary for managing operations for the initial six months and development of the business truck. The loan is to be payable with a rate of 12% annually. The loan obtained will be used in purchasing the food truck and furnishings its interior and exterior section, to make it more attractive. After a period of five years, the business will be looking forward to borrowing $100,000. The purpose of this amount will be to facilitate the expansion of the business. The amount borrowed is payable after eight years with an interest rate of 10%. Financial projection reveals the state of the business. Consequently, it evidently reveals the increase in the performance of the business. Consequently, the financial projection of this business will be on the positive side. The financial analysis of the market reveals that food truck industry is turning out to being more reliable. Therefore, with all factors held at constant within the environment the sales will increase with an increase in the subsequent year. This will make the financial projection shift to the positive. 2.7 Appendix (Food Truck Market and Trend ) Sales Forecast Graphical Trend of the Sales Forecast Assets: Cash On Hand and in Banks 0.00 Savings Accounts $5,000.00 IRA or other Retirement Accounts 0.00 Accounts Notes Receivable $0.00 Life Insurance-Cash Surrender Value $1,000.00 Stocks and Bonds 0.00 Real Estate 0.00 Automobile-Present Value $25,000.00 Other Personal Property $800.00 Other Assets 0.00 Total $31,800.00 Liabilities: Accounts Payable (Credit Cards, etc) $0.00 Notes Payable to Banks and Others $0.00 Installment Account (Auto) $0.00 Monthly Payments $400.00 Installment Accounts (Other) $0.00 Monthly Payments $0.00 Loan on Life Insurance $0.00 Mortgages on Real Estate $0.00 Unpaid Taxes $0.00 Other Liabilities $55,000.00 Total Liabilities $55,400.00 Net Worth (Assets less Liabilities) $55,400.00 3.0 Reference "Financial Projections." n.d. The U.S Small Business Administration. Monday October 2014. . "Food Truck Market and Trend ." November 2013. Food Truck. Monday October 2014. . "How To Start A Food Truck Business." 2012. Food Track Fatty. Monday October 2014. . Stennson, Anika. "Food Trucks Gaining Momentum, According to National Restaurant Association Research." 2011. National Restaurant Association. Monday October 2014. . Read More