Concession stands and concession trailers are a recession-proof business which offers high revenue returns, healthy profitability and the freedom to organize your life, free of financial hassles and from being tied to the 9-to-5 daily grind. Providing you properly prepare and plan your business before you start getting involved in selling food, the rewards are high and many people have gone on to build a substantial business way beyond a single concession trailer.
The first thing to consider is how much capital you are going to need to invest to get yourself started. There are a number of financing options available for those who do not have all the capital available to invest in a concession trailer and still have the working capital to buy stock and cover initial expenses until you start making money. When you sit down to do your business planning, look at the financial implications of the choice you have between outright purchase of a concession trailer and the leasing alternatives which are available. A leasing option will help you to conserve your capital and avoid heavy upfront investment. In addition, the leasing agreement can be arranged to ensure your cash flow is not heavily impacted with the monthly payments, which is especially useful for a new business in its early period of operation.
Preparing your business plan will also include a realistic assessment of the operating costs involved. There will be direct costs, such as the cost of purchasing food and refreshments to sell along with any staff wages if you are not doing all the work yourself. Other direct costs will include the costs of fuel to cook food, gas to get the trailer to and from venues, the fees and costs charged by venues to allow you to operate at them. Indirect costs will include business and sales taxes, accountancy and legal fees together with any costs associated with registering the concession business with the authorities (which is also going to include licensing and authorization expenses for food handling and training).
Many businesses fail in the first year, but this is largely attributable to a failure to plan properly by the owners. Proper business planning is vital if you are to ensure that your concession business is managed and run smoothly. Working with your bank and accountancy advisers will help you enormously, as they have a wealth of small business experience and will want you to succeed, not least because they are looking for stable long-term clients of their own.
Part of the business planning will also include more subjective factors such as what types of food you will offer, the types of venue you will want to operate from and also the type of concession stand or trailer you will realistically need, along with accessories and options. You will also need to cover issues such as staffing, because it is a rare concession business which can operate with only one or two people running it.
Operating a concession trailer business is a deeply rewarding occupation. You have the benefits of owning your own business, together with an interesting and ever changing set of business challenges which will stimulate and motivate you. A concession trailer business is not for everyone, but for those who work hard and plan their business activities carefully, the rewards are endless.
Thinking of starting your own concession business, perhaps bbq? Custom Concessions can build you a customized stand, truck or trailer. Find them online at www.customconcessions.com.
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