15 Key Questions To Answer Before You Get That Food Cart

So you are a great cook and even went to culinary school and have always wanted to open a restaurant. You found a used food cart for several thousand dollars and you know of the ideal spot in your city for a food cart and they have agreed to lease you a space. Your mother and uncle will loan you the funds to start up. You are on your way to being the next best eaterie in Portland Oregon, the food capital of the North West, or wherever you live.

Not so fast! Here are some key things you must pay attention to before you can open and run a successful food cart.

1. You need to register a legal business entity with the State and get the necessary food licenses and permits from the state and city.
2. Who are going to be your customers, where do they frequent and at what times? What are the traffic patterns and at what times of day.
3. Is there adequate parking nearby so people can get to your spot and have time to get your take out or better yet sit and eat if the space allows.
4. What are your start-up costs and do you know the sum total of your monthly costs.
5. How are you going to price your food and why? Will this allow you to cover your expenses and make a profit so you can repay your loan and have enough money left to live off of.
6. How many customers do you need on a daily basis to make your venture profitable?
7. Are the utility hook-ups close by and what do they cost to connect and use?
8. How many food carts are in the immediate vicinity and how much competition will you have. Is there enough traffic (foot and automobile) to support you and the other budding restaurateurs?
9. Are you prepared to open when the customers are coming or are you going to keep hours convenient to you since now you are in charge and can do what you want.
10. How will you reach your prospective customers to let them know you are open for business.
11. Will you have a website and will you have pictures of your food platters available so your potential clients can preview your servings.
12. Will you be using social media sites like Facebook and Twitter to communicate with your audience.
13. Will you check on Yelp and similar sites to see what is being said about you and your food and be prepared to handles negative comments about your business.
14. How will you handle the books and keep a record of all your transactions?
15. Will you accept credit cards or have a cash only business?

The city of Portland is issuing lots of permits to food carts and they are popping up on almost every street corner. In spite of the fact that this represents good license revenue for the city coffers, it is beginning to put a blight on some neighborhoods. Be extremely careful as you plan your food cart strategy. A good cook and a nice food cart do not make a successful business. If you are in doubt about exactly what to do, go see your business adviser at one of the SBDCs in your area or call your local SCORE office.

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