How To Launch A 7 Figure Food Truck

How To Launch A 7 Figure Food Truck

How To Launch A 7 Figure Food Truck
How To Launch A 7 Figure Food Truck

Tacofest Guide to Starting A Food Truck

Complete guide to launching your career in the exciting and profitable food truck industry!

The rise of the food truck industry has been responsible for transforming ordinary individuals into new entrepreneurs all across the country!

Today’s food truck owners come from backgrounds that range from corporate executives to the unemployed. In other words, you don’t necessarily have to be a professional chef to own a gourmet food truck! You just have to have desire and motivation!

Does watching your favorite food truck show on TV get you pumped up to start your own business? Can’t stop thinking about owning your own food truck? Well, here are some words of encouragement! The opportunity to start your own mobile food business… along with your chances of success has never been better! But the problem is that sometimes it’s hard to know where to begin. After all, starting a successful business isn’t something that you can do overnight!

An Industry With An Amazing Future

The most encouraging news is that industry experts have estimated that food truck revenues will reach an enormous $2.7 billion in the next few years. There is huge room for growth and prosperity in the mobile food industry. You’ve probably noticed there are more and more food trucks popping up on the streets. It’s not just coincidence that you’re seeing more of these mobile businesses around. Numerous food truck success stories are fueling this movement. Profits can be made curbside, but food trucks are also expanding their client base through catering and special events. Make no mistake! There are major opportunities for food truck owners. The only thing you need to do is take action and build your future career!

Video and MP3 Versions Included

In addition to all the video modules offered in this course, an MP3 audio version of the entire course will be made available for all students. This means you can take the training with you whether you’re exercising, commuting or just on the go! Just load the file onto your favorite MP3 player and you’re set!

What You’ll Learn

This course will lead you through the important action steps you need to get into the mobile food industry! Many questions will be answered including:

  • Where to begin?
  • How to plan your menu?
  • What to include in a business plan?
  • How to get funding?
  • Where to get the best ingredients?
  • How to market your food truck?
  • When and how to hire employees?
  • And more!

If you want to start your own food truck, this is the course you need to enroll in! Get a head start with Street Food University! The rise of the gourmet food truck industry is the golden opportunity that has motivated individuals everywhere to finally leave their jobs for a career they can be proud of!

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Conclusion: How To Launch A 7 Figure Food Truck

How To Launch A 7 Figure Food Truck Transcript

there’s a guide to starting a food truck
business okay so when I actually created
this seminar and started writing it out
I wanted to make sure I covered the
bases for those of you who are
interested in starting a food truck
business as well as those of you who
already have a food truck business so if
you feel like maybe this is a little
repetitive because you’re already in
then be patient because some of you are
looking for some other information as
well so why don’t we go ahead and get
started here’s what we’re gonna cover
today are you ready to start a business
what’s your role in the business city
regulations and permits so we’re gonna
be talking about what’s going to be in
this packet that we we have there in
your folder so we’re gonna take that out
whenever we get to that part managing
your business so you can be successful
marketing and advertising so those are
the sections we’re going to be covering
today and we’re gonna start with are you
ready so typically whenever we’re
starting a new business it’s really easy
to get caught up in the romantic part of
starting a business all of us have been
staying up late at night or awake in our
beds just dreaming of this business
that’s going to really take off and be
successful here in San Angelo we’ve all
been there we’ve all done it that’s how
what entrepreneurs do we’re dreamers
right but we also have to think very
realistically and logically about what
we’re gonna do and how we’re gonna get
this off the ground so particularly they
like to ask a couple questions first
thing is how do you know that you’re
ready the first thing you absolutely
should do in your first step is develop
a startup budget okay so if you guys
look in your folder and on that
right-hand side of those documents that
we had printed off you’re gonna find a
startup budget worksheet okay and it’s
gonna look just like this so this
startup budget worksheets what we
actually hand out to our clients
whenever they come to see us and say hey
I haven’t got a great idea I want to
start a food truck and I want to do this
type of food well great well why don’t
we take a look at what your startup
budget costs are going to be right and
this worksheet
goes through and you don’t actually have
to fill it out right now this is for you
to take home if you haven’t actually
used one before I would highly recommend
looking at it because it looks at it
takes into consideration all the type of
expenses you’re gonna need in order to
get going okay
some of it is applicable to a food truck
some of it isn’t
okay so but you just kind of have to run
through this and order for you to have a
realistic idea of how much money you
need to start right because it’s not
just a food truck and it’s not just the
food right there are a lot of other
things that come into play whenever
you’re starting up and you need to
figure out how much money you need to
ask for so if you have money saved up
and maybe you need a little extra you
need to go to the bank or maybe you need
to borrow from friends and family this
is a great place to start so you can
figure out how much exactly you need
sometimes we have a client that comes in
and say I think I need 20 thousand and
I’m like well what are you using that
twenty thousand for well I’m gonna buy
the trailer in the truck and I’m like
okay well what about the food what about
outfitting it what about all your
supplies what about your marketing costs
you know so you know what about fuel
usage so all those things come into play
and so that’s why we have the startup
cost worksheet how does it make sense
everybody tracking good the next thing
we have to do when we’re figuring out if
we’re ready is we have to figure out our
skill set right what’s the most
important skill set has a food truck
owner anybody wants it yes
what’s that cooking all right
yeah cooking so are you what are you
cooking and are you proficient at not
just cooking the meal but knowing how
you can cook many meals in a short
amount of time
right where’s your skills that have you
worked in the restaurant industry before
have you owned a restaurant before you
know what was your role there you know
did you just do the cooking or did you
manage part of the business so we have
to analyze what our skill set is so we
know exactly what our roles are in the
business okay so can the market support
your business so when we’re first
thinking about opening any type of
business whether it’s a regular
restaurant or a food truck we have to
figure out will the current market
support my idea for starting a food
truck okay that’s really important to do
no matter what business you’re getting
because we have to know that people are
going to be demanding what I’m giving
what I’m offering in terms of our
services so there’s different ways you
can actually find that out through the
SBDC we do have resources where we can
analyze a market for you and determine
if there’s demand or if there already
are food trucks in San Angelo how many
are there you know how many clothes last
year or this year how many new ones are
there is the market expanding okay and
also you have to do your own research
you know if we’re thinking about opening
up a hamburger food truck well how many
of those are are there in San Angelo you
know and what type of food do they serve
besides hamburger so a lot of research
to be done during that step next thing
we have to talk about is we have to talk
to our family and friends why that’s
important is because owning a business
eats up a large portion of your time and
resources okay and if some of that time
is dedicated to family and friends then
we have to have a discussion with them
to ask them what they think and how they
feel right that’s very important so for
those of you that are married you know
that you wouldn’t start a business
without asking your a significant other
first right so we have to have that type
of conversation and we also have to get
their opinion right because our family’s
gonna be very honest with us all right
as maybe friends may not be so much they
might say yeah that’s a great idea you
should totally do it right but you know
a significant other might say well I
don’t know let’s be honest let’s think
about this let’s think it through
so talking to family and friends very
important Oh
what’s your financial situation this is
a very important part lots of business
owners are already have day jobs when
they first start a business okay as an
advisor I could tell you that’s very
wise to start a business while you’re
working a full-time job because you have
steady income a lot of people think that
oh I’m gonna start a business I need to
quit my day job please don’t do that
okay please don’t do that because first
of all it takes a little bit of time for
you to generate some revenue and some
capital through your business in order
for you to even pay your expenses let
alone give yourself a living wage okay
so if you have a day job
then consider what your current fire
current financial situation is with that
day job okay
do you own do you own earn enough money
on a monthly basis to support the
business in case it’s not going as
quickly as you would expect it to go
okay any questions about that all right
so here are some sources of financing
for those of you that are possibly
thinking about starting the the food
truck business where can you go to seek
financing now obviously we start out
with our startup cost worksheets know
how much we need to in order to go to
these places so personal resources
sometimes people have a retirement
account right at 401 K simply some
people will actually dip into that in
order to start start their business
that’s not a bad thing to do right
because it’d be better to draw from
money you have rather than coming and
borrowing money and then I want to pay
that back at at higher interest rate so
some people might have a savings account
they might be taking money from
different sources that they already have
friends and family usually are the first
places you would ask because they’re not
gonna give you an interest rate right
they’re just gonna tell you yeah pay me
back as you go or as you get the money
right a bank would never tell you that a
bank would say well you have these are
the terms and this is how much your
you’re gonna be paying and if you
default we’re gonna take this this and
this from you right so friends and
family is always a good place to start
whenever you’re thinking about borrowing
money okay
the second place that usually are the
third place that people a lot of go
usually go for financing is bank
financing okay this is probably a thing
that you probably all of you are
familiar with bank financing usually has
commercial loans so that could go into
either buying a building or buying
equipment but typically local lenders
are the most likely to lend to small
businesses okay a lot of people think
well I can go to Bank of America Bank of
America is pretty large and they’re not
really local so they’re probably not
going to lend to a local business okay
place like maybe Bank of San Angelo or
Crockett National Bank they’re probably
going to be more likely to land to a
small business in San Angelo Texas okay
micro loans are any loans that are under
$50,000 okay loans that are over $50,000
usually require a business plan okay
micro loans depending on the lender they
may just ask something under $50,000
they may just ask for your credit score
and a signature other lenders might
require some financial analysis they
might ask for cash flow projection for
the next two years plus you know maybe
your latest financial statement okay but
typically a micro loan is under $50,000
SBA guaranteed loans we talked about
this little bit earlier an SBA
guaranteed loan is basically where the
federal government which is the Small
Business Administration will help
guarantee a loan through a local bank
okay so basically what this means is
that if you go to let’s say first
Financial and you say I want to go and
get a 504 loan which is typically used
for building or equipment purchase the
SBA will come in and they’ll tell the
the bank the first financial bank will
guarantee a portion of that loan for
this borrower which basically means that
the bank won’t have to put as much risk
into it but they get more benefit so if
you guys default on your loan the
garrotte the guarantee basically says
that the senior lien holder is going to
be first financial and first Financial
likes that deal 504 deals are great with
SBA because that convinces the local
lender first financial that this is a
good idea right because they’re not
really losing much in this deal but
they’re gaining pretty much everything
since they’ve seen your lien holder all
right so it’s a good opportunity we
really like working with SBA guaranteed
loans because we’re familiar with the
process we help you build a business
plan and a loan proposal that you can
take to the bank right angel investors
so sometimes people like to go to an
investor network if you guys ever seen
shark tank right that though that’s an
angel investor Network okay a group of
people that make a living by investing
in small businesses or some large
businesses for that matter but usually
startups okay
now angel investors there’s good and bad
to working with investors kenny buddy
give me an example maybe a bad thing
that might come about with working with
an investor know they could take too
much control right if they’re asking for
a bigger portion because they’re wanting
to invest more they’re gonna say well we
want this much control of the company
right or usually the case they want
their money back in a very short amount
of time okay so there’s a lot of risk
with angel investors now the benefit to
working with the angel investor is that
you can get that money pretty quick and
you can go back for more money sometimes
just depending on the investor and the
type of business you have but there’s
risk in that anybody heard of
crowdfunding before crowdfunding is
basically where you can solicit the
public to invest in your business and by
doing that you give something back to
them as a benefit okay a lot of
crowdfunding sites will put up a video
and you know a whole plan of the
business and say well you know we’re
gonna be starting this food truck and
the first 50 investors that invest
$1,000 they can only invest up to 5,000
but let’s say the first 50 investors
that invest up thousand dollars will get
to eat here for free for two months or
something like that plus they’ll get a
t-shirt so it’s about giving back to
your investors that are initially
putting money into your business okay
now let’s talk about the myth of grants
okay a lot of businesses come to the
and they’re they’re for-profit
businesses and they say we want a grant
okay well realistically for-profit
businesses don’t qualify for grants okay
nonprofits get most of their funding
through grants okay now there are very
specific and limited types of grants for
for-profit businesses and usually they
have to do with impacting the community
okay so an example might be you know
maybe some sort of reimbursement
to the city that promotes job growth
okay they might have a very small grant
okay but it really depends on the
industry that you’re in and it’s not for
everybody and they’re very limited so we
usually don’t tell we usually tell
businesses not to rely on grants as a
way of a funding source okay because we
get a lot of those requests that come
through the door all right so any
questions about that wonderful okay
so here are the roles you’re gonna be
expected to play as a business owner
okay and I can tell you this is
absolutely true maybe some of you can
attest this I own a small business here
in San Angelo I have for the last seven
years and I’ve done pretty much
everything single thing here and more so
you’re required to be the technical
expert okay you’re the manager in the
boss you’re also the sales and marketing
executive you’re the market researcher
you’re the accountant the tax collector
the bill collector the business planner
and the information technology expert
right I’m gonna put all that stuff on my
resume next time because that’s exactly
what you are what are you doing as a
small business owner okay the problem
with this is that a lot of people in
small business don’t know how to
delegate these responsibilities when
their business grows okay and that can
really put a lot of pressure on you as a
business owner so understanding what
roles you have and then how you can
delegate these out to employees or
caught subcontractors is a great way for
you to learn how to grow your business
okay anybody have any questions about
this we’re gonna transition a little bit
more into an existing food truck
business and giving out information on
how to properly manage the business so
let’s start with a few we call this we
usually have a graphic that’s got a
picture of a three-legged stool because
it’s probably the best way to explain
how this works so there are three
critical parts of a business in managing
a business that really determine the
success or failure of a business and
those three areas are the technical the
management and the marketing of a
business if any one of these are not
managed properly or executed properly
the business has a high rate of failure
okay so we’re gonna kind of touch on
each one of these three so we can give
some sort of examples to how to properly
manage so the technical part of a
business is really all about the person
that is the expert okay all of you are
experts in your respective businesses
okay whatever that might be whether it’s
serving you know burritos or tacos or
you know doing barbecue or or you know
any type of food really so you really
have to demonstrate the expertise in
your field and by demonstrate you know
usually a lot of businesses you know if
you look at their websites they have an
about section of the of the owner right
and they talks a little bit about what
their background is you know what their
passion is why they started the business
what their certifications are you know
what type of training
have they been through did they work at
some sort of prominent or well-known
restaurant what was their role there how
many years were they there
and then also another part of the
technical is the critical success factor
okay we talked about cradle success
critical success factor and a lot of
different businesses but none none is
more important I think than in the
restaurant industry so I’m gonna give
one example of a critical critical
success factor and then hopefully you
guys will catch on and maybe provide the
rest of the examples so a critical
success factor is consistency in the
restaurant industry would you all agree
with that
when you go to a restaurant and you have
a great meal and you go back two weeks
later you expect a meal to be the same
as the previous time correct okay but
when it’s not do you end up going back
to that restaurant you do not so it is a
critical success factor what else is a
critical success factor of owning a a
food truck or food industry business
location I would say service is probably
another good one
when you go and you you get a waiter or
a waitress or somebody that’s serving
you food and they don’t do a good job of
taking your order they get it wrong or
they don’t come back in time to save
your drinks or whatever that may case
may be
that usually has a negative effect or
positive effect on the business correct
okay what about price alright whenever
we go to a restaurant in San Angelo okay
we have certain expectations of what we
pay for an enchilada plate right and
when those expectations are not met we
are in shock we think well this better
be the best enchilada plate I’ve ever
had if I’m paying $15.99 for right so
but price is a very important part
because the fact that we expect that it
is on par with our expectations for all
the restaurants that are in town okay
now we’re not just talking about Mexican
food we’re talking about all food okay
if the price is too low with that X will
that change our expectations the way we
see the business if an inch up a lot of
plays of dollar ninety-nine we’re
thinking well how much of this is
actually enchiladas right so those are
critical success but anybody want to
take another get you said location which
is a very important part you know where
are we actually set up the business is
is an important part because if the
business isn’t there or the people don’t
know where it is that can play a huge
part of the success that we see correct
some businesses that have really odd
locations anybody want to take a stab at
a business that’s at a really weird spot
out of the way starts with an L that’s
right low a key steakhouse how many
years have they been in business many
years I guarantee their first year was
probably not a good year all right but
they’ve relied on a very specific type
of service that has drawn people to
leway key in that particular spot that
they’re located but they are very remote
okay and they took many years to build
up that site I think they even moved
recently didn’t they and I guarantee it
was because of that reason okay critical
success factor like you said all right
before we go to talk about marking let’s
talk about management
okay the management of a business is
probably the least favorite part of
owning a business unless you really do
enjoy these types of things right so as
a manager or basically managing the
business these are the various different
parts of managing the administrative
okay the administrative is basically
your everyday paperwork okay
I would even kind of lump all these
things under that administrative because
it has to do with paying your bills on
time reporting your taxes paying your
employees making the schedule changing
the menu all those things are
administrative tasks that a lot of us
tend to ignore because we’re so focused
on the cooking we’re so focused on
ordering the supplies and making sure
the quality is great and making sure the
customer service is good we tend to
forget or put on the back burner the
administrative stuff legal the business
plan most businesses don’t have a
business plan okay
that’s not to say that they’d fail but
it’s very hard to know or operate a
business if you don’t know where you’re
going so that’s what a business plan is
for know where you’re going the
financial aspect and Human Resources
Human Resources is basically we’re
talking about employees right the
management of employees is it easy right
now to find help in the food industry
why I would say low unemployment due to
the oil industry right yes we’re in that
corridor and work ethic right it there’s
it’s it’s kind of easy to assume that
thirty years ago we would find the right
type of worker correct okay the
generations change you know younger
employees really don’t have the
interpersonal skills that we grew up
with so Human Resources is a difficult
task because it’s hard to find good help
nowadays just because of those reasons
alone so another important part is going
to be the marketing okay I see a lot of
businesses especially in the food truck
industry that struggle a little bit with
the marketing because they’re not
particularly experts in marketing and
nobody really is so here are a couple
things that we need to keep in mind and
we’re gonna actually touch on this a
little bit more here in a little bit but
I wanted to bring it up now so we can
make sure you guys know that these are
the three critical parts who are you’re
likely customers and marketing it’s all
about who okay you talked about the what
later it’s all about the who who are you
talking to who are your customers why
would they eat at your establishment
as your establishment gonna attract
everybody in San Angelo that’s pretty
naive to think that okay you should be
concentrating on a very specific type of
group that’s going to come there and
stay there okay and then bring more
people like them to your business okay
so who are you like who you are you’re
likely customers
what is your geographic region so how
big of an area do you serve okay do you
serve people from Dallas unless your
food truck is going there on a regular
basis you’re likely customers are
probably within our close geographic
region so you know you might get maybe
maybe some people from Ballinger that’ll
come in and you know they’re spending
the day in San Angelo and they find a
your food truck okay
but usually within our local area is
probably going to be your geographic
region and that’s important to know
because you have to know how far your
advertising dollars are going would you
place an ad in a newspaper that’s Texas
Monthly not if all those readers are
from all the other places right so we
have to talk about where your drink
graphic region is how can you reach your
customer so there’s lots of different
places you can advertise and we’re going
to talk about that a minute but it’s an
important question to ask because your
advertising dollars are part of your
revenue right and your revenue needs to
go back into food products maintaining
your food truck paying your employees
that’s have a thing so knowing where
you’re gonna reach your customers is
very important because it’s gonna
dictate how much money you’re going to
be spending ok any questions about yes
some yes others we rely on word of mouth
the goal of advertising and really being
in business in general is to generate
enough revenue and manage your expenses
to be able to have enough advertising
power to advertise in as many places as
you can to reach your target customer
okay if I’m generating enough revenue I
want to be able to increase my marketing
budget so I can place a billboard so I
can do social media so I can do a TV
commercial so I can run a radio spot and
the more I’m
to get exposure and attention for my
business the more the more likely I’m
going to get more customers right so
it’s all about your ROI your return on
investment okay so do some food trucks
advertise yes but many don’t because the
budget isn’t there right so we have to
talk about what are some options for you
to be smart with your budget in the
meantime while you’re growing your
business right so we’re going to talk
about that here in a minute but good
question any other questions about this
particular part or input you’re also
welcome to comment okay on your own
experience as an owner or anything to
that effect like we mentioned before we
all wear different hats as business
owners okay and it’s it can be very
daunting but the the biggest mistake you
can make is making a decision that
you’re not professionally qualified to
make okay and that’s why having a
network of professionals to assist you
is very important okay
now not to say you’re gonna have
everybody here at your disposal because
some of them aren’t relevant okay but
you may have an account or at least a
bookkeeper that you may be hiring
part-time to manage your books why is
that important to you well maybe you’re
not a very good at bookkeeping okay and
maybe you want to leave that to a
professional that knows what they’re
doing if you have the ability to pay
somebody to do that I guarantee you it’s
gonna save you time and it’s gonna save
you stress and anxiety and it’s going to
allow you to free up some time to
dedicate more to your business okay a
business attorney could handle maybe
some paperwork or forms that you need to
make sure are legal and that you’re not
just pulling off the internet okay so
it’s always good to at least have an
attorney you trust that you can go to if
you need to okay a business banker so if
you have a loan you want to be able to
have a good relationship with that
banker so if you ever need to go back
for extra capital for maybe expanding
your food truck or your operation I’ll
give you a good example because I can
actually talk about them send your
checks okay they started off as a food
truck and then they expand it to a
physical location
and you know he had to have a
relationship with the local banker in
order to expand his business that caught
fire you guys remember that yeah and
then he had to rebuild and then that
kind of pushed him toward thinking about
a physical location and so he had
established relationship with a banker
and you know develop a business plan and
all that good stuff so that’s a good
example having a relationship with your
local banker insurance agent I just gave
you an example why it’s important to
have not just insurance but a local
insurance agent that you can talk to a
realtor only comes up when you’re
dealing with property okay so but it’s
always good to have somebody in your in
your corner whenever you’re doing making
these decisions and then finally us here
at the SBDC we’re always here to give
you an advice or put you in contact with
somebody that knows the answer okay
that’s the reason why we’re here there
we go all right choosing your legal
entity this is a big question that a lot
of business owners have you know I know
I want to be in business I know I want
to open a food truck I know the name I
want to put on it but how do I legally
start the business and which business
entity do I pick
am i sole proprietor if I have a partner
in my partnership or do we do an LLC or
do we start a corporation or an S corp
okay technically anybody that’s already
started a business as an in business
there are so proprietorship you don’t
have to file to be a sole proprietor
okay do you have to file to be in
business in San Angelo yes you
absolutely do you could be a sole
proprietor and file a doing business as
DBA is an assumed name so if you’re in
business as anything other than your
first and last name you have to file a
DBA in the in the County of San Angelo
okay Tom Green County if you and
somebody else or more than two people
are in partnership you do have to have a
partnership agreement you don’t have to
put it on a file anywhere legally but
you do have to have one in order to be a
partnership and the split is a hundred
percent for everybody involved okay that
means that they are they are responsible
for the taxes that they file at the end
of the year for self-employment okay and
LOC is a limited liability company this
is filed at the state level
okay for a DBA at the county level $25
LLC at the state level is $300 it’s good
for 10 years LLC is usually we recommend
it for two reasons for risk factors so
let’s say that you have high debt
involved like loan in the business and
you potentially could lose some of your
personal assets through that loan it’s
it provides some sort of protection
liability from your personal and
business assets okay there are some
small businesses that have LLC’s it was
very common among truckers okay because
imagine how much a truck costs right so
LOC we usually recommend if there’s a
lot of risk involved now if you’re just
baking goods from home you know we
probably wouldn’t recommend an LLC okay
not to you expand corporations if you
guys have ever wondered about
corporations usually people form
corporations for tax reasons okay and
basically if the size of that company is
very large corporations help because
they can manage that company a little
bit better corporations have a board of
okay they have to have at least one
meeting every single year that they file
the minutes and shareholders are not
liable for any of the debt in in the
corporation okay so if there’s a lot of
debt involved and they file for
bankruptcy shareholders are not liable
for any of that debt okay an S corp
basically provides a pass through
taxation as a sole proprietor to avoid
double taxation so you’re not taxed on
self-employment or profits from the
business but you’re still taxed on
salary earned okay so if you’re part of
an S corp or if you’ve formed an S corp
you’re paying yourself a salary you’re
taxed on your salary but you’re not
taxed on any income or revenue generated
through the corporation that’s an S corp
okay all right so let’s talk about
marketing your business all right so
we’re gonna kind of get into I think is
probably one of the most important parts
of helping to grow your business the
thing about food trucks okay is that
unlike restaurants who have a long term
location to built you talked about low a
key is one right low a key was able to
build it over many many years but if
they were always moving right how are
people gonna find you if you have to
move every three days okay if you don’t
have a commissary you can stick to right
very closely so how are you going how
are your customers going to find you
unless you have a good marketing
strategy okay
so I’ll give you an example if I typed
in a food truck on Google right now okay
is it gonna give me a location of that
particular food truck depends right
maybe Lone Star cheeseburger might have
a Google listing but if you’re always
moving you can’t actually get a listing
on Google right it’s impossible how can
you do that
so we have to talk about that in
relation to marking because that’s a
very important part of the success of
your food truck business is the
marketing so let’s start with what is
the demand of your product or service
the demand really has to do with if I
were to open and try and think of
something really weird and rare if I
were to open some sort of I don’t know
spaghetti food truck do you think people
would go for that here in San Angelo
that’s too weird right there’s not
enough demand for something like that
okay but if I were to you know open a
very urban and modern Street taco food
truck you think I at least get some
business from something like that here
okay right so when we talk about
marketing we have to talk about what the
demand is for our product or service is
there enough business here in San Angelo
where people would demand that type of
product okay and we have to look at what
our competition is so is the market
large enough to be successful
is there enough potential business in
San Angelo for you to run a successful
food truck business how many people live
in San Angelo a hundred thousand right
well something like that’s very close to
that about a hundred thousand people in
San Angelo do you think if you got 10%
of those customers a month you’d be
successful ten thousand right ten
thousand customers a month yeah he’d be
pretty successful so is there is the
market large enough for you guys to with
the demand to be able to run a business
yeah there is there is how much will
they pay for your product or service
okay and every single market okay so
we’ll take San Angelo right there’s a
price ceiling for every single type of
product or service the price ceiling is
defined as the maximum amount of money
that somebody will pay for a product or
service in a specific area okay so we
talked about pricing as a critical
success factor right so could a $20
burrito plate sell here in San Angelo
depends how they marketed it right not
maybe not out of a food truck maybe
they’d have to have a really really nice
restaurant to be able to do something
like that but we also have a price
bottom okay we already talked about
pricing too low right now pricing too
low or price bottom is basically pricing
so low that you you still are able to
generate some sort of profit okay but we
don’t want to hit bottom do we know cuz
it’s hard to operate when you have very
slim profits then we’re talking about
volume then you’d have to sell you know
500 hamburgers a day just to break even
if your if your prices are at bottom
okay now are you gonna sell more
hamburgers for a dollar 50 apiece yeah
people are gonna be like oh there’s
cheap hamburgers and they’re good all
right but are you gonna make any money
off with dollars for the hamburgers
probably not so that’s your price bottom
so we have to determine and how much
will they pay for your product or
service so you can still make a profit
okay so a lot of this has to do with
comparing your prices to the competition
right so you do a little bit of a
research and you take a
look at what are the prices right now
for this particular type of food and
then you figure out where the middle is
the middle is always a good place to be
when you’re doing your pricing strategy
okay and it always comes down to what
the market or your competition is
currently charging right so we all live
in San Angelo we know exactly what we
would really healing to pay for specific
product or service okay
now that brings us to who your
competitors are okay now a lot of people
would assume that our competitors are
gonna be other food trucks right maybe
your primary competitors that could be
the case it just depends I think that
food trucks are in growth right now that
you really won’t find competition here
because there’s enough to go around for
food trucks I would say your major
competitors are gonna be your
restaurants why because they’ve got
amenities they’re inside right what is
something that makes business difficult
for food trucks the weather the weather
makes it very very challenging for food
trucks to stay in business during
basically any season it could be too hot
to go to the food truck it could be too
cold to go to the food truck right so
your major competitors are gonna be your
restaurant so that have indoor seating
AC heating units you know all those
types of things restroom facilities
those are all challenges right I compare
a food truck to to basically an
incubator business startup right it’s a
proof of concept that if I were to turn
this into a full-fledged restaurant it
would do well right that’s essentially
what a food truck to me ends up kind of
resembling okay because it’s not
practical to have a food truck for that
long that’s always fluctuating because
of weather conditions okay so when
you’re talking about who your
competitors are we have to think about
if I’m serving hamburgers and I’ve got
another restaurant across town that’s
doing really well selling hamburgers
what are they not doing what makes me
different which is what is your
competitive advantage
okay when you’re talking about
competitive advantage it is what will
make a hamburger enthusiasts come eat at
your place over another well-known
burger place in town
what makes your hamburgers special and
different that is your competitive
advantage sometimes a competitive
advantage is your brand sometimes people
will look at your brand and say wow I
love the way that logo is wow I love the
way they have there though there you
know operations set up I love the way I
can walk through there and I can pick
out everything I want on my hamburger as
I get to the very end and pay for it and
go and that’s you know a lot of that has
to do with how you make yourself unique
and that is your competitive advantage
when you’re in business ok
these things are I think particularly
your competitive advantage is one of the
strongest marketing concepts that you
can really grasp because if everybody
served the exact same type of hamburger
why would they come to you now then it
would be about price and location when
it right there the nearest and they’re
the cheapest so I’m gonna go there but
if you’re the best I’m gonna go all the
way across town because I want that
hamburger now we’re bidding to beginning
to understand why it’s so important to
have this type of marketing in your
business ok anybody have any questions
about that particular part ok so let’s
talk a little bit about getting found
all right
social media we’re gonna spend a few
minutes on because I think it’s worth
talking about I realize that not
everybody’s good at social media I
realize there’s even some people have
don’t even use social media I get that
as a business owner you kind of have to
nowadays we remember the days that that
before websites and before social media
where it was absolutely important for
you to be in the newspaper right
remember those days like well if you got
a business you better be in the
newspaper because everybody’s reading
the newspaper
ok well guess what now the newspaper is
the internet so if you want to be in
business you have to be on the internet
and you have to be participating in
social media and all these things
because if somebody hears about you from
a friend they say oh you got to go try
out this new burger
join what’s the name of them oh this
this and that alright great first thing
they’re gonna do what are they gonna do
what do you do you you google right are
you Facebook all right you look them up
we don’t go to the Yellow Pages anymore
that’s right yeah
social media is important because it
allows you to be able to build
relationships with your customers if you
guys ever questioned why should I have a
Facebook page it is to build
relationships with customers that is the
main reason you should have a social
media page okay it’s not to share cat
videos if you have a business okay you
leave that for your profile and then
make sure it’s private but your so your
Facebook page for your business is all
about building relationship with
customers if someone goes on your
Facebook page and says where are you
located and you see that come up on your
application or your computer what’s the
first thing you should do respond right
you should respond okay that’s a one
thing that you should absolutely be
doing with your customers respond
quickly and engage with them talk to
them like real people okay another thing
you should be doing is you should be
posting every single day
now we’re gonna talk about that hearing
a little bit all right let me make sure
that I’m on the right page here yeah
here we go – probably the best social
media sites that I would recommend as
business owners I would say Facebook and
Instagram okay if anything maybe just
Facebook if you’re really pressed for
time you don’t have a lot of time to
dedicate to social media I would say
Facebook is probably the best thing you
could be on right now another reason I
say that is because well I’ve had a
business for seven years and I’ve tried
them all but also because San Angelo is
just a Facebook town okay a lot of
people here don’t use Twitter very much
some of them use Instagram but they’re
really really young my daughters on this
Instagram and she kicked me off
Instagram she said I can’t I can’t have
you on Instagram if I’m on Instagram dad
and I say well come on you’re not gonna
friend me no I’m not kind of friend you
nice – forget it I’m off so Facebook
really is gonna provide you the best
opportunity to grow your business and
we’ll talk about that here in a minute
okay websites okay the reason you should
have a website it helps tell a story and
gives fans a background on your business
and websites Lin to the legitimacy of
your business okay
should you have a Facebook page yes
should that be the only place that you
have presence on the Internet
no the reason I say that is because god
facebook disappears tomorrow okay and
your business page with all your
followers and all your information your
hours of operation and pictures of your
products are all there what happens to
that when Facebook goes away it’s gone
anything you upload to Facebook guess
what you don’t own it Facebook does it’s
anything pictures video content anything
you upload to Facebook it is not yours
it is theirs okay so if they go away you
go away now if you have a website that
you’ve designed it has information about
the owner pictures location information
links you know whatever it is you want
to put on there your menu now you’ve
developed a listing for Google to be
able to find a business if somebody
Google’s you know food truck and burgers
and you’re a food truck that sells
burgers and you have a website guess
what Google’s gonna do it’s gonna pull
up your website first before your
Facebook it’s gonna pull up your website
that’s listed through Google okay so
that’s why it’s important to do a
website because it lends legitimacy when
people find your websites they go this
is a serious business I want to learn
more about them all they’ve got a
Facebook page so on and so forth perhaps
all right everybody know what an
application is on their smartphone yeah
they’ve heard of them or seen them if
you haven’t heard a Yelp Yelp is a very
important application for the food
industry the reason that is is because
most people that are looking for a good
food place usually look at Yelp first
Yelp provides a free listing it gives
users the opportunity to review your
business and give it a rating users can
upload photographs of the food
and it talks about where you’re located
so even if that location is kind of in
general that’s okay right but Yelp is an
absolute important part of being online
I would probably say Yelp and Facebook
very important if you’re gonna be doing
anything online okay plus it’s free you
can create an account on Yelp for free
word-of-mouth someone you asked over
here you know who advertises what food
trucks advertise a lot of them don’t a
lot of them rely on word-of-mouth right
because the budget is this this small
you don’t have a whole lot of money to
to to advertise however you can use
word-of-mouth to build a business it is
absolutely possible now how do you build
a word-of-mouth marketing strategy well
there’s basically two things you really
need to do okay it is about being
remarkable instance here we talked about
your competitive advantage right if
you’ve got a great logo and you’ve got a
great you know hamburger and you’re you
know the way you serve it is unique if
that’s remarkable enough guess what
people are gonna do they’re gonna try
and take a photo of it right and they’re
gonna post it up and they’re gonna tell
their friends you got to check this out
they put a they put a steak knife right
through the burger and the steak knife
has got all this crazy stuff on it it’s
written it’s remarkable right they want
to talk about it
that’s what being remarkable is okay the
other thing is building a lasting
relationship with your customers so
whenever you’re growing it’s important
to do things that aren’t scalable
basically what that means is if you were
a huge burger company like Burger King
okay would you be able to write a
thank-you note I handwritten thank-you
note to every single customer could you
do that as Burger King no no absolutely
not could you do it as a small business
could you send out maybe a birthday card
could you you know collect people’s
address information and say it’s your
birthday we ask your birthday on file we
just send you here’s a coupon for a free
burger on your birthday and it’s
handwritten note from the owner imagine
getting that in the mail
from a local business handwritten from
the owner okay and you open it up and
it’s get a five dollar coupon for you to
go get a free burger are you gonna go
get that burger absolutely are you gonna
build a relationship with that customer
and other they gonna build one with you
absolutely okay
so as you’re growing it’s easier to do
these type of word-of-mouth marketing
because you’re small okay you don’t have
a thousand customers yet but by doing
this you will get more customers quicker
faster than your competition okay so
that’s a way that you can do some
relatively free or low-cost marketing
that builds up an audience without you
having a place in the Hat in the
newspaper or go to the radio station or
get a billboard and all those types of
things alright does that make sense for
you guys good all right how to manage
social media so I’ve developed this
little strategy this this is years of me
doing it myself this comes from my
degree in marketing and e-commerce these
are the most effective ways for you to
manage your market your social media
page and and basically build some more
clients okay so you should be posting
every day if you’re on social media
every day you should be posting okay I
know that seems like a lot to some
people but it only seems like a lot if
you’re posting the same thing every day
okay so every day should have a goal
alright I’ll give you an example so
Monday is Monday is all about the
okay so Monday you want to post a video
of you actually cooking the meal what
ingredients go in there you know maybe
you don’t the show everything but you
can show the process in very short
pictures or a little short video you can
talk about it in text and Tuesday you’re
gonna highlight a customer Tuesdays
customer appreciation day I’m gonna talk
about a customer that’s been coming in
getting the same meal every single day
this is their story this is who they are
this is what they get and we’re gonna
name the meal after them because we love
them customer appreciation days Tuesday
Wednesday promotion day we’re talking
about all the new stuff we have on our
menu what do restaurants do usually
every day’s promotion day every day
you’re talking to
what’s on the menu this is a picture of
the food most restaurants do that every
single day and we get tired of it
right it’s not it’s not fun it’s not new
it doesn’t make me want to talk to them
but when we change it up because we have
a different goal every single day then
we get more engagement we get more
people wanting to talk to us learn about
us we might have a day that talks about
a new employee who knows okay every day
should have a goal number three respond
to comments and messages promptly so if
somebody sends you a message through a
social media page and they just ask you
where you located Facebook actually
measures how quickly you respond and it
advertises how quickly you respond it’ll
say that’s on top of the page you’ll say
usually responds within 36 hours oh my
gosh 36 hours that’s way too long it
should say within one hour that’s
usually pretty good something like that
yeah so the quicker you respond the more
likely people are going to message you
okay if they just respond in comments so
you posted something and they say oh wow
that looks really good do you just leave
that alone do you give it a thumbs up no
you say you should come by because we
got this this and this and if you come
by the next few minutes you know I’ll
give you a high-five put you on our
social media page whatever respond back
to the messages because as you respond
more and have conversations Facebook
will measure those responses and then
you’ll show up on everybody else’s
Facebook you know more frequently right
and if you’ve ever managed a social
media page as a business but sometimes
when you post something you don’t get
anybody to comment it’s just nothing
it’s because there’s no engagement
there’s nobody responding okay and then
Facebook just doesn’t push you up in
front of people okay so if somebody even
one person responds respond back with
something with the sentence not just an
emoji all right
post great pictures more people are
likely to engage or share or comment on
a post if there’s a great picture
attached to it even more so if there’s
some ridiculous quote that’s calling
that picture people are more likely to
respond and share don’t ask me why it’s
some sort of psychology thing people
do it okay but post great pictures okay
right attention grabbing headlines
whatever we’re flipping through our news
application the things that we usually
stop and click on have to do with
attention grabbing headlines okay
the same thing works on social media if
you write an attention-grabbing headline
on your post okay more people are gonna
want to engage and find out what that’s
okay so you can’t just be descriptive oh
this is a hamburger that’s got you know
comes with french fries and free drink
and no it’s got to be engaging hamburger
changes lives that’s something that’s
gonna be a little bit more engaging and
interesting as a post than if you were
just descriptive does that make sense
okay invest in your growth all right you
were talking about advertising earlier
and how much you’re gonna spend right if
you really want to succeed on social
media as a business you have to be
willing to invest in your growth social
media or Facebook at least allows you to
spend money in order to advertise to
your followers or potential followers
the great thing about social media or
Facebook is you can actually see who’s
clicking or how many people are clicking
on your post or your advertisement okay
that’s right you have control over
picking who your advertising to and you
can pick an age group you can pick what
their employment is whether they
graduated high school or not whether
they have an anniversary coming up all
those things you can do on Facebook with
your advertising okay as far as I know
you can’t do that with the TV ad as far
as I know video video video so video is
probably the most shared and engaged
type of content that you can post on
social media right now on fishy Facebook
videos just get they more gateman work
views they get more clicks right now
video it doesn’t even have to be great
video do you guys remember the Chewbacca
lady that had the mad
can remember she was laughing while she
was laughing it was just on her phone it
wasn’t even a good phone and it got an
enormous amount of engagement and they
even flew her to California to go to
Facebook and tour the facility and gave
a scholarship to her kids just because
she did a video wearing a true baka mask
and laughing of the camera so video
video video okay really important that’s
why I put it three times target your
audience we already talked about
targeting your audience but not just
targeting your audience but know who
your audience is and then targeting them
okay measure and adjust if you place an
ad and it gets great response and you
look at that rules responses and you see
well the majority of these responses
were actually from the ages of 25 to 35
what should you do for your next add
more for 25 to 35 so you look at the
results of your ad you measure and you
adjust okay that is a key to success on
managing your social media page you
don’t just throw $10 out there and say
oh it didn’t work
oh well no you look at it and you see
what did work if there was any type of
good things that came from it what was
it and then you adjust and then you
retarget you place another ad okay so
that’s all part of managing social media
me have any questions about this
particular nope okay I’m gonna open it
up a little bit for questions so if you
guys have any questions about marketing
or the food truck business or mind
managing a business now would be a good
time to ask but have any questions
you can set up a business Facebook page
we were very dude but do they have a
separate where they charge you so much –
yeah they uh well they’ll place it
within the network of Facebook itself
but it really depends on how much you’re
willing to pay right so a ten dollar ad
will reach you know maybe a couple
hundred maybe even a thousand people
depending on how long you place it for
so if he plays it for a day it’s
probably gonna reach a little bit more
people but if you placed a hundred
dollar ad for a week you’re gonna have a
much larger reach and that’s why I
talked about how much are you willing to
invest in your growth right however if
you compare a hundred dollars on
Facebook to a hundred dollars on radio
which one are you gonna get more of in
terms of reach yeah Facebook
absolutely yeah Facebook it’s it’s
changed how advertising dollars are
spent because more people are on their
phones than ever before
so it’s that’s a really it’s an
important part of your marketing is
being on social media Google can do that
for you but they do it in a very
different way they do AdWords basically
what you would do on Google is if you
were wanted to claim specific words
searchable words are keywords as they
say if somebody works going to Google
burgers and food trucks in San Angelo
those three key words you could place a
bid for those words and any time anybody
clicked or searched on those words and
click through your website Google would
charge you for that okay and you would
set a budget either a lifetime budget or
a daily budget for those but Google
could get pretty expensive
that’s why not a lot of people talk
about advertising there and then you can
adjust them right right yeah yeah
Facebook is I wouldn’t say it’s the only
place you should say you should be in
terms of your advertising but it’s a
good place to start
to grow so that’s something to take in

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