So, you’ve mastered the arts of handing out waters and making dog treats. And now maybe you have some extra money to throw around. Or maybe you just skipped to this step. Well, hopefully you do have a few extra bucks to get started with this money-making plan.
Running a small food cart is something that you are probably going to need permits for and something that you can’t just do under the table. You will be running an actual business.
The first step is to investigate what you need to do to get started. Find out where you want to sell your products. Is it a city, town, or county? There are probably local and state regulations that you will need to comply with. Search the internet and see what your local and state government requires. You will probably have to have your cart inspected by the local health department and display the correct permit. You might need a business, traders, or peddlers license too. You will also have to collect any state or local sales tax that might be levied. It will probably be pretty easy for the government to shut you down if you do not comply.
It might also be wise to form a LLC or some other organization to protect your personal assets, in case someone claims that they got sick from your food. Contact your state’s taxation agency. This should be pretty easy to do yourself and fairly inexpensive. Form the LLC in your the State you plan to do business in. Don’t be one of those idiots who gets a Wyoming LLC because its cheap and think that you will just be able to do business in Maryland or where ever you are. You need to still file as a foreign LLC if you are doing business in your State as an out-of-state LLC, and that will cost you just as much.
Walk around the community you want to sell in. Are there other people also running food carts? See what types of permits they display. Try to strike up a conversation with some of them and try to find out what they had to do to start their business. Don’t let them on that you might be their competition in the future. Maybe just grip about the burdens that the government puts on small businesses and casually inquire what type of hurdles the government has put up for them. Most of the people running food carts are the owners of the carts, although their employees may have some insights too.
You have to figure out what you are going to sell. Unless you have some specialized skills in the food industry, you might want to stick to hotdogs as they are fairly simple and straightforward. It is also the most popular food cart product. A businessman out for a quick lunch bit doesn’t want to experiment with new foods. He or she just wants something simple, cheap, and familiar.
After you have figured out what licenses you need, you will obviously need a food cart. Go onto Craigslist and Ebay and see what type of deals you can find. You can generally find a good used one there to save yourself some money.
With a business license, you should be able to buy your products tax-free from a local warehouse store. But remember you must collect the sales tax from your customers if you do this. Buy the cheapest hotdogs you can find there. Buy in bulk. If you don’t have room in your freezer, you may need to buy a bigger one.
Pricing is easy. See what your competition prices their hotdogs at. Set your price just a little lower. Even if it takes longer to make a profit, you will still be in a better position as you will be doing more business.
You can tow your food cart on the back of your vehicle and move to different locations until you find the best spot.
People like condiments on their hotdogs. Make sure you have an ample supply of onions, relish, catsup, and mustard. I recommend leaving them out at the end of the cart so people can put them on themselves.
Remember you will be dealing with both cash and food. A lot of people have OCD about food and money touching. Either bring an ample supply of gloves or rather never touch the food with your hands. Pick up the bun with aluminum foil. Place the hotdog in with tongs and then wrap it up.
Dealing with cash only is easier, but you are sure to miss some sales. It is easy to install a credit card reader into any smartphone. They are generally free, although the companies generally take about 2 percent of the proceeds. Still the extra business that you will bring in will be worth it. Make sure you advertise on your cart that you take credit cards.
Again, remember that if you are dealing with a lot of cash, you should use all legal means to protect yourself and your profits.
This is a big project and will take more time and effort. Still, if you do it right you will make a good amount of money. If you need additional help or guidance, check out a book on the subject.
