Business and Entrepreneurship

The Community Benefits

The community benefits greatly from the food truck industry. The food is delivered at the convenience of the customers. Prices are reasonable for the neighborhood because running the company is less expensive than operating a restaurant that is permanently located. Finally, the availability of food at all hours of the day and night, particularly on sidewalks, saves the city time when people are hurrying for a quick lunch or working late.

Startup and Advantages

Compared to the investment needed for other restaurants, the startup money is significantly less. They were able to launch their food truck thanks to their savings, loans from family and friends, and other resources. As the presenter claims, there are no office politics involved. The two brothers are the only employee; maximizing profits and reinvesting it to increase profitability. The expenses are limited to food and gas, zero customer services (no bathrooms, no sitting) and low capital cost. The business has an unfair advantage of scooping lunch business due to their convenience especially during summer; since the location is superior, they can sell at any convenient place especially the festivals. They also have an advantage of support from a non-profit organization (ECDI) that rents them a kitchen for $18 an hour; they also get advertising benefits, loans, secure parking lot, and electrical hooks up, grease disposal and industrial-sized sinks.

Challenges and Requirement

One of the entrepreneurs complains that it is crazy hot inside the truck; this requires them to invest in an air roof conditioner. The business is hyped with a huge number of competitors; therefore, they need to have an angle. ‘That Food Truck’ signature is a seasonal menu from locally grown ingredients. The food trucks are heavily inspected therefore they need to ensure they comply even with the small space available. During transportation, there is a huge risk due to accidents caused by hail, lightening among others due to the trucks outdoor elements. Also, the operators are at risks due to accidents during preparation since they are the primary assets and finally during winter the dangerous weather can hinder them from running. The clientele is also not too predictable due to the mobility of the business.

Passionate Owners

The owners are very passionate. One of them left a career in finance to run the food truck. They are very determined; they made the food truck from a used FedEx truck on their own for months. They are very social with their clients that create a good relationship with return customers. Despite a low profit on the first day, they are not intimidated. They have built a good reputation for innovation of a truck cuisine. They are very hardworking; they do all the duties alone ad do not even get a day off.

Acquisitive Entrepreneurship

The type of entrepreneurship is acquisitive enterprise. The business that studies from others competencies, it acquires something new of value front, which they have created new cuisine and the competitive environment and also thrived to achieve the competitors’ technical capacities, this kept them sustainable in the competitive atmosphere. The failure never restrains them from achievement but inspired further to realize such a thing with a new visitor.

Support and Suggestions

The business requires constant support, especially emotional support as a source of motivation, especially from family. They also need financial assistance because like any other business it takes long to pick up especially the acquisition of kitchen equipment. They need criticism to evaluate to maximize their profits; they need to constantly rework their business plan like, introduce new spice or meat delivery option in the market to beat their competitors. They also face the challenge of inclement weather.

Suggestions for Improvement

A few suggestions might be crucial for the improvement of the business. I would suggest that they invest more in social media by creating a brand for themselves. A free marketing medium can be very resourceful. Besides that, it is important for the two entrepreneurs to take breaks from their business one at a time, occasionally and explore the food industry for new innovative methods to attract their clients.

References

Building a food truck business from the ground up [Video file]. (2013). Retrieved April 27,

2017, from https://fod.infobase.com/PortalPlaylists.aspx?wID=273866&xtid=54907

Nine Types of Entrepreneurship. (2017, April 9). Retrieved April 27, 2017, from Nine Types of Entrepreneurship: https://iedunote.com/entrepreneurship-types