From Restaurant to Food Truck through Crowdfunding

Posted on 09/27/2021 by FTB

Although the situation is uncertain, more than one may be thinking about starting a food truck. Working in a food truck is varied and allows you to express your talents from a small kitchen. The challenge is that you need money to get it up and running. The question therefore is: how do you raise enough start-up capital? A possible idea is to start crowdfunding. In this blog, we explain the concept of crowdfunding and give some tips.

WHAT IS CROWDFUNDING?

Not everyone has a well-endowed savings account or receives a generous inheritance. And banks are reluctant to lend to new businesses. There you are, full of passion and with a beautiful concept. One possible idea is to start a crowdfunding campaign for your Food Truckbecause crowdfunding is a way to raise money without the need for a bank. Crowdfunding is organized by platforms like Kickstarter and Indiegogo. As a budding entrepreneur, you can submit your concept online on such a platform and share how much money you would like to raise. Anyone who thinks your concept is good can invest in it. The idea is that many people will invest a small amount of money, and all these small investments will fund your project.
THINK, THEN ASK

Just as banks are careful with their money, investors will only support you if they see that your idea is very good. So think carefully about the story of your food truck business: what makes it unique? And in a broader sense: How do you want to get your story out to the world and promote your brand? And can you do it all yourself? Maybe you need a professional photographer for your website photos, a videographer for an advertisement, or a copywriter for particularly memorable web copy and social media content. A solid concept with a clear plan of action presented attractively has the best chance of success in a crowdfunding campaign.
SET A REALISTIC GOAL

You're not the first Food Truck owner who tries to raise money with the help of crowdfunding. Be inspired by the crowdfunding campaigns that precede yours. When you see that Food Trucks have been aiming for an amount of €50,000 and didn't make it, it might be unrealistic to ask for an amount of €100,000. Nothing is impossible, but the past often teaches you a wise lesson - what do you need the money for, the truck, a new oven, or a budget to get the project off the ground? Consider all factors, such as advertising or personnel costs, and the cost of your crowdfunding platform, before setting the final target amount. It would be annoying to run out of money after so much work.
MAKE INVESTMENTS ATTRACTIVE

The idea of an investment is to generate long-term profitability, so think about the reward an investor gets in return for giving you money. Does an investor get the amount back in installments with a small interest? Or do you (also) opt for original bonuses, such as an exclusive invitation to the Food Truck's kick-off party? An educational masterclass from the chef? Or full catering for the investor and three friends of his choice? Creative and personal promises win investors over!
SHARE YOUR JOURNEY

Let's say you've already raised twenty percent of the amount in the first few days of the campaign. You go in with a big smile knowing that there's a good chance you'll exceed your initial goal amount. In that case, don't hesitate to throw a small party or event to show that you're on the right track. A kickoff party creates the right atmosphere to continue your crowdfunding campaign. Invite your friends and family to enjoy a unique meal in your food truck (if you already have one). Share enthusiastic reactions and happy pictures, e.g. via social media or on your crowdfunding platform. This way you show other investors that your food truck has potential.