Business Plan

Report on “Unity Food Truck”
Reports on
“Unity Food Truck”
Prepared for:
Instructor: Laila Habib
CBA- College of Business Administration
MGT-401 (Entrepreneurship)
Prepared by:
Group Name: Unity
Section: C
Date of submission:
03/08/2017

Acknowledgement
At first we would like to express our gratefulness to the almighty Allah for being so kind to allow us to work
on this report successively.
we would like to express our gratefulness parents and family members for being to allow us for creating and
supporting our study.
Then we would like to express our gratitude to IUBAT – International University of Business Agriculture and
technology where we have been finished our required course curriculum to be eligible to prepare a report. The
education learnt from the teachers and the whole infrastructure of our university, truly has amplified our level
of competency and thoughts during us learning period.
We would like to thank you our honorable faculty Laila Habib for her support and guideline which has
enabled us to form such a report.
Finally, we would like to thanks again our honorable faculty Laila Habib, because she gave us opportunity of
making such kind of research report that will be very much helpful for our prospective career.

Student Declaration
We are the students of Bachelor of Business Administration (BBA) at IUBAT-International
University of Business Agriculture and Technology and declaring that, this report on the given
topic of “Unity Food Truck” has only been prepared for the fulfillment of the course of MGT-
(Entrepreneurship).
This report is not prepared for any other purposes.
Thanking You:
Serial Name ID Program Signatures
1. Md. Ashikur Rahman 14102383 BBA
2. Dolon Rani Guha 14102372 BBA
3. Md. Shakil Bhuiyan 14102399 BBA
4. Most. Raisa Tabassum Khan 14202120 BBA
5. Tahsin Raisa 14202125 BBA

Letter of Transmittal
03 August, 2017
Laila Habib
Faculty
College of Business Administration- CBA
IUBAT- International University of Business Agriculture and Technology.
Subject: Permission for submitting the group report on “Unity Food Truck”.
Dear Miss,
We are very much grateful to you for giving us the amazing opportunity to work on our MGT-
401 course. We are very much pleased to submit our group report on “Unity Food Truck”.” We
have gathered information and tried to put in the report as much as possible. Actually the entire
duration of preparing this report has been immensely helpful to us. A lot of lessons were learnt,
lots of general knowledge were gathered about small business.
We enjoyed working on this report and hope you will find it creative.
Yours Sincerely
Unity Group
…………………………

Table of contents:
S.N. Descriptions Page.No
Title page i
Acknowledgement ii
Student Declaration iii
Letter of Transmittal iv
Table of contents v-vi
List of figures vi
List of table vii
Executive Summary viii
Main part
1.0 Introduction 1
1.1 Mission & Vision 1
1.1.1 Mission statement 1
1.1.2 Vision statement 1
1.2.1 Aims 1
1.2.2 Objectives 1
2.0 Market Analysis Summary 2
2.1 Target Market Segment Strategy 2
2.2 Market Needs: 2
2.3 Market Trends 2
2.4 Market Growth 3
2.5 Service Business Analysis 3
2.6 Business Participants 3
2.7 Competitor and issues Analysis 3
2.8 Marketing Objectives 4
3.0 Organization and Management 5
3.1 Organizational Chart 5

3.2 Business and economics 6
3.3 Health concerns 6
3.4 Competitive Analysis: Porter’s Five Forces Model For Unity Food Truck 7
3.5 Advantages of opening a food truck business: 9
3.6 Disadvantages of opening a food truck business 10
3.7 What are the reasons? Why food trucks are better than a sit-down
restaurant
11
3.8 Legal structure of Business 12
3.8.1 Sole Proprietorships 13
3.8.2 Partnerships 13
3.8.3 Limited partnerships 13
3.8.4 Hiring a business lawyer for our partnership 13
3.8.5 Corporations 14
3.8.6 Business Licenses 14
3.9 Market and sales strategy 14
3.10 Marketing strategy 16
3.11 What Types of Risks Do Food Trucks Face? 18
4.0 What are the challenges of food truck owners must overcome 21
4.1 Why Do Food Truck Businesses Fail? 22
5.0 Financial Statement 24
6.0 Conclusion 36
References 36
List of figures
Figures
No:
Description Page no:
1 Organizational Chart 5
2 Porter’s Five Forces Model 7
3 Marketing Strategy 16
4 Risk Analysis 19
5 Risk analysis 2 20

List of table
Table No: Description Page no:
1 Our Food Categories 4
2 Distribution channels in marketing 15
3 Start-up Budget 25
4 Historical Balance Sheet 26
5 Historical Income Statement 27
6 Historical Cash Flow 28
7 Pro Forma Balance Sheet 29
8 Pro Forma Income Statement 30
9 Pro Forma Cash Flow 31
10 Historical Ratios Analysis 33
11 Pro Forma Ratio Analysis 35

Executive Summary:
As a part of our study material MGT 401(Entrepreneurship) we needed to make a Business plan
and as the course requirement we made our business plan on a food truck business which name
is “Unity Food Truck.”In this Business plan report we include our Business operation, market
strategy, market analysis, Description of our product and services. We also include the financial
statements and our individual capital investments.
To provides best quality food for customers and will be given offer better services in future that
is why people will be more attracted to come our food truck
We will not be successful waiting for the customer to come to us. Instead, we must focus on the
specific market segments whose needs match our offerings. Focusing on targeted segments is the
key to our future.
Our target customers is who are more want to like or eat food, not restricted to only one per
specific place. Our target market is simply the group of customers you want to focus selling our
food. Overreaching, when making these projections will only hurt you in the long run, even if the
financial numbers they generate look impressive. When it comes to target market information,
we should gather information with customers.

1.0 Introduction:
Food truck is a large vehicle prepared to cook and sell food. Some, including ice cream trucks,
sell frozen or prepackaged food; others have on-board kitchens and prepare food from score.
Sandwiches, hamburgers, French fries, and other regional fast food entrance fee are common. In
recent years, associated with the come up restaurant observable fact, food trucks offering
gourmet cookery and a diversity of specialty and ethnic menus, have become particularly
popular. Food trucks, along with transportable food booths and food carts, are on the front line of
the street food industry that serves an estimated 1.5 million people every day.
1.1 Mission & Vision
1.1.1. Mission statement:
Serve the highest levels of experiential product or services and maintains consistency in serving
the highest quality products at affordable price.
1.1.2 Vision statement:
Offer wonderful eating experience with great food at reasonable prices.
1.2 Aims and Objectives
1.2.1 Aims:
To provide best quality product or services for customers.
1.2.2 Objectives:
 To provide best quality product or services for customers.
 To provide excellent customer services.
 To create an attractive and diverse menu.
 To offer wholesome, fairly priced, ethnically diverse food options.
2.0 Market Analysis Summary:

The market analysis section of our food truck’s business plan illustrates our knowledge of the
street food business. Here, you present general places of interest and conclusions of any
marketing research data we have collected.
2.1 Target Market Segment Strategy:
We will not be successful waiting for the customer to come to us. Instead, we must focus on the
specific market segments whose needs match our offerings. Focusing on targeted segments is the
key to our future. Therefore, our focus and marketing message will be the services offered. We
will develop our message, communicate it, and fulfill our commitment to excellence.
2.2 Market Needs:
Our target customers is who are more want to like or eat food, not restricted to only one per
specific place. Our target market is simply the group of customers you want to focus selling our
food. Overreaching, when making these projections will only hurt you in the long run, even if the
financial numbers they generate look impressive. When it comes to target market information,
we should gather information with customers.
2.3 Market Trends:
The Food Trucks business has only grown in strength over the past five years and is one of the
best-performing segments in the broader food-service sector. The industry's remarkable rise has
been largely attributable to changing consumer preferences in favor of unique, gourmet cuisine at
budget-conscious prices. Despite strong industry-wide performance, some food truck operators
have been held back by municipal regulations, increased competition and low profit margins.
The industry will face various challenges over the next five years.
2.4 Market Growth:

Food truck growth has only grown-up in strength over the past five years and is one of the best
performing segments in the broader food-service sector. The food truck outstanding rise began in
2008, just as the fall down hit, as hundreds of new vendors recognized changing consumer
preferences favoring unique, gourmet gastronomy.
2.5 Service Business Analysis:
The food truck service industry consists of many small individual facilities.
 Business name
 Direction is to establish itself as a full-service
 24-hour facility
 Creating customer convenience.
2.6 Business Participants:
The food truck business exhibits a low level of concentration due to the highly fragmented nature
of the industry. New enterprises have entered the industry at a faster rate, causing the industry to
become more fragmented. This trend will persist in the upcoming years as mobile food vending
becomes popular in less saturated regions.
2.7 Competitor and issues Analysis:
Their major competitor is restaurant. They also compete with target, and other independent or
retailers. Despite strong industry-wide performance, some operators have been held back by city
regulations, increased competition and low profit margins.
Categories Unity Food Truck

2.8 Marketing Objectives:
To gain trust in the customer community by providing high good quality food or services. To
create an attractive or diverse menu and offering wholesome, fairly priced ethnically diverse
food options.
Our Food Categories are:
Table 1: Our Food Categories
Mexican cuisine
Italian cuisine
Thai cuisine
Indian cuisine

3.0 Organization and Management:
Organization structure: A simple but effective way to lay out the structure of our company is to
create an organizational chart with a narrative description. This will prove that we're leaving
nothing to chance, we've thought out exactly who is doing what, and there is someone in charge
of every function of our company. Nothing will fall through the cracks, and nothing will be done
three or four times over. To a potential investor or employee, that is very important.
3.1 Organizational Chart
Figure 1: Organizational Chart
3.2 Business and economics:

 Food trucks are subject to the same range of concerns as other foodservice businesses.
They generally require a fixed address to accept delivery of supplies. A commercial
kitchen may be needed for food prep. There are a variety of permits to obtain, and a
health code to observe. Labor and fuel costs are a significant part of the overhead.
 Legal definitions and requirements for food trucks vary widely by country and locality.
For example, in Toronto, Canada, some of the requirements include business and liability
insurance, a Commercial Vehicle Operator’s Registration for the truck, permits for each
municipality being operated in (downtown, various suburbs), a food handler certificate,
appropriate driver's licenses for drivers, assistant's licenses for assistants, and a health
inspection.
 As the rising number and popularity of food trucks push them into the food mainstream,
region by region, problems with local legislators and police reacting to new situations,
and brick-and-mortar restaurants fearing competition, have to be worked through, in
some cases creating significant business uncertainty. Chicago long held the distinction of
being the only city in the United States that did not allow food trucks to cook on board,
which required trucks to prepare food in a commercial condition, then wrap and label the
food and load it into a food warmer. In 2012, under pressure from food truck owners and
supporters, including the University of Chicago Law School, regulations were changed to
allow on-board cooking, however, controversially, food trucks are required to park 200
feet away from any restaurant, which virtually eliminates busy downtown locations.
 In the US, specialized food truck outfitters offer comprehensive start-up services that can
include concept development, training, and business support, in addition to outfitted
trucks. In the US, food trucks are a $1.2 billion industry.
3.3 Health concerns:
Food trucks have unique health risks compared to regular land-based restaurants when it comes
to food safety and the prevention of food borne illness. Most food trucks do not have access to
adequate clean and hot water necessary to wash hands or to rinse off vegetables, as required by
most health codes or regulations.

In June of 2017, The Boston Globe reviewed the 2016 city health records and found food truck
had been cited for violations 200 times, with half of the violations being minor in nature and the
other half being serious violations. When compared to fixed location restaurants, the city closed
nine of the 96 licensed food trucks in 2016 and closed only two out of 100 restaurants. A
majority of the serious violations were related to the lack of water and hand washing.
3.4 Competitive Analysis: Porter’s Five Forces Model For Unity Food Truck:
Figure 2: Porter’s Five Forces Model
Rivalry among competing firms:
This aspect of Porter’s Five Forces Analysis model place the effects on each other. In the case of
us the following external factors are responsible for the strong competition or competitive rivalry
in the business retail market environment:
 High aggressiveness of firms (strong force)
 High availability of substitutes (strong force)
 Low switching costs (strong force)
Rivalry among
competing firms
Potential development
of substitute products
Bargaining power of
consumers
Potential entry of new
competitors
Bargaining power of
suppliers:

Bargaining Power of Customers/Buyers (Strong Force):
This aspect of Porter’s Five Forces Analysis model determines the influence of consumers on
firms and the industry environment. The following external factors will support the strong
intensity of the bargaining power of customers:
 High quality of information (strong force)
 High availability of substitutes (strong force)
Consumers have access to high quality information regarding the services of business retailers
and the products they sell. This external factor will affect Unity food truck. The low switching
costs make it easy for consumers to transfer to unity food truck. Also, the high availability of
substitutes further empowers consumers to shift from one retailer to another.
Bargaining Power of Suppliers (Moderate Force):
Suppliers control the availability of supplies or materials. The influence of suppliers on the
business market environment is outlined in this aspect of Porter’s Five Forces Analysis model.
Food truck will be experienced the moderate intensity of the bargaining power of suppliers based
on the following external factors:
 High population of suppliers (strong force)
 Moderate size of suppliers (moderate force)
Threat of Substitutes or Substitution (Strong Force):
Food truck will face moderate threats with substitutes in the market because of having a many
number of restaurant in Bangladesh. This aspect of Porter’s Five Forces Analysis model
identifies how substitutes affect the Business environments; the following external factors
support the Moderate intensity of the threat of substitution:
 Low switching costs (strong force)
 High availability of substitutes (strong force)
 Low cost of substitutes (strong force)

Threat of New Entrants or New Entry (Weak Force):
The effects of new entrants are considered in this aspect of Porter’s Five Forces Analysis model.
Food will experiences the weak intensity of the threat of new entry based on the following
factors:
 High cost of brand development (weak force)
 High economies of scale.
3.5 Advantages of opening a food truck business:
The initial investment is much lower:
First and foremost, opening a food truck is a much lower investment. The main cost is buying
your own truck, but this can be avoided by taking advantage of the ever-growing food truck rental
business. Next, you’ll need to outfit your truck with the right equipment, including exhausts,
grillers, heat lamps, and any other specialty equipment your particular food needs.
Location is superior:
Unless you’re planning to buy into the most expensive, popular, tried-and-true area of a city,
choosing a location is always a gamble. What’s popular today could take a dive in less than a
year’s time. A restaurant could open across the street offering the same type of food you do, thus
cutting into your business. With a food truck, this isn’t an issue because you can simply change
your location.
Easier to maintain:
Buying a restaurant is expensive, but so owns one. What happens if you need a new roof? What if
a city inspector tells you that you need to repair cracks in your parking lot? These issues can be
incredibly expensive to repair – especially if you’re still building your business. While it’s true
that there are things that could require maintenance or repairs in your food truck, the costs are
much lower.

Overhead costs are lower:
Owning a restaurant requires paying utilities, hiring a wide ranging staff, including cooks,
cashiers, hosts, servers, etc., and paying property taxes if you own the property. On the other
hand, the month-to-month operational costs of a food truck are limited to food, supplies, and gas.
You don’t have to have a full staff and many of your taxes will be lower in most parts of the
country.
More easy to change strategy:
Opening a restaurant is such a huge undertaking that you’re essentially forced to choose a plan
and stick with it. If it doesn’t work out, making changes can be costly and time-consuming. Not
so with a food truck. Making a huge change can be as simple as adding an exhaust hood to a truck
you’d previously planned to only serve pre-cooked food on. You have much more flexibility –
and a much better chance of being able to change with the times.
3.6 Disadvantages of opening a food truck business:
Limited space:
Many Food Vans do not have a lot of space on them, particularly the converted Vintage Vans.
Access can be difficult:
Some events might be in places that a powered van might find difficult to get into or out of. For
example, how will you get a precursor out of a wet Glastonbury? The answer is either be towed
out by a tractor or wait till it dries!
Second Vehicle needed:
If you are using a motorized unit at multi - day events is that you may need a second vehicle if
there is a need to go off site either for accommodation or supplies.

3.7 What are the reasons? Why food trucks are better than a sit-down
restaurant:
Food trucks serve up amazing food. If you haven’t seen what these mobile kitchen trailers have to
offer, you are definitely missing out. Like as:
You feel like you are part of a community:
Because you kind of are. You know, because you are literally in a community, regulars go to
mobile food trucks all of the time and there is something about kitchen trucks that just screams,
well, community.
Faster:
There is nothing worse than waiting for your food. After all, who likes to get hungry? Although
there might be a line from time to time at a food truck business, that line certainly won’t take as
long as a sit-down restaurant.
Location change:
This is cool for a couple of different reasons: (1) Change is good. (2) You might be craving your
favorite customized truck, but are in a certain part of town. Food trucks travel all over the place,
so if you are lucky, your favorite gourmet food truck might be closer to you than you think. (3)
You can embark on a (food) journey in different parts of town thanks to food trucks moving all
over the place.
Typically better prices — and who doesn’t like to save money?
Between the drinks, tipping and basically paying way too much money at a sit-down restaurant,
things can get out of control in the wallet department. That is not the case at a mobile kitchen,
because the food tends to be cheaper. In this economy, that is a huge bonus for food lovers, and
people looking for concession trailer space.

Convenience:
If you are on the go, but still want to eat a great meal, then you can thank mobile catering trucks
for bringing convenience to the table. Because what’s not convenient about a food truck
business?
There is so much to worry about at a sit-down restaurant:
You know, like the service, why is it taking so long to prepare your meal, the background music
isn’t your jam, a nearby table is out of control and the list goes on and on.
The Atmosphere:
Typically, lunch trucks are in a hot area of town. Therefore, the atmosphere is usually awesome.
I mean, who doesn’t like that nightlife or being in the cool area of town?
The food is just as good -or better:
People often go to sit-down restaurants because they think they are about to be served a
masterpiece. Unfortunately, that is not always the case. In terms of food truck food, the food
(which is why we are all here) is just as good as sit-down restaurant food. Heck, in some cases
more like many cases it is better.
3.8 Legal structure of Business:
When beginning a business, you must decide what form of business entity to establish. Your
form of business determines which income tax return form you have to file. The most common
forms of business are the sole proprietorship, partnership, corporation, and corporation. A
Limited Liability Company (LLC) is a business structure allowed by state statute. Legal and tax
considerations enter into selecting a business structure.

3.8.1 Sole Proprietorships:
Sole proprietorships are the simplest of all legal structures but they also lack many of the legal
and financial protections of other business forms. If considering starting a business as a sole
proprietor, remember there are various advantages. Sole proprietors experience the key
advantages of being their own boss, but concurrently shoulder the burden of being responsible
for the business’s success and failure. This section provides both basic and in-depth information
about sole proprietorships, including tax, implications, state registration requirements, what to
expect when running a business with your spouse and more. It also features step-by-step help to
get us started.
3.8.2 Partnerships:
Partnerships are the simplest type of legal structure to form for businesses with two or more
principles; but while partnerships have no formal paperwork requirements, we usually don’t
protect partners from liability. Partners can also clash over numerous matters relating to the
business, including conflicting work ethics and financial goals, and even roles in the business
and leadership styles. Here we will find tips on legal and tax issues related to partnerships and a
“partnership Quick Start” tool that walks us through each phase of the start –up process.
3.8.3 Limited partnerships:
There are three types of partnerships that businesses can choose from when forming a
partnership: general, limited or joint venture. While there are benefits and disadvantages to all
three, in a limited partnership at least one owner is a general partner and at least one owner is a
limited partner. The general partner(S) makes everyday business decisions and becomes
personally liable for any debts the business incurs. The limited partner, however, doesn’t handle
daily operations, but simply invests and reaps the benefits of any profits. Basically, a limited
partner enjoys a protected investment.
3.8.4 Hiring a business lawyer for our partnership:
Unfortunately, partnership rules and regulations can be extremely complicated. If you want to set
up a special allocation, you will need expert help to make sure that our allocation ill comply with
IRS rules. A business lawyer can draft special language for our partnership agreement or

operating agreement to ensure that the IRS will accept our special allocation. An attorney
specializing in partnerships can help us formulate our buy sell agreement and even help reduce
our tax liability for the future.
3.8.5 Corporations:
Corporations are limited liability partnerships that are separate and distinct from their owners. In
a corporate business structure, shareholders have the right to participate in profits, but are not
held personally/financially for the company’s debts. This section contains information and
resource for small business owners who are interested in forming a corporation. Here you will
find tips on legal tax and issues related to corporation including creating of articles of
incorporation and corporate by laws and tools that walk us through each phase of the
incorporation process.
3.8.6 Business Licenses:
Contact our city's business license department to find out about getting a business license, which
essentially grants us the right (after we pay a fee, of course) to operate a business in that city.
When we file your license application, the city planning or zoning department will check to make
sure our area is zoned for the purpose we want to use it for and that there are enough parking
spaces to meet the codes. We can't operate in an area that is not zoned for our type of business
unless we first get a variance or conditional-use permit. To get a variance, we'll need to present
our case before our city's planning commission. In many cases, variances are quite easy to get, as
long as we can show that our business won't disrupt the character of the neighborhood where we
plan to locate.
3.9 Market and sales strategy:
Our target customer:
1. The people who has likely or eat food.
2. The people who are alone-Because they need the company.

3. The people who are health conscious.
4. Children, they want to more Thai, Indian, Mexican types of food.
5. Girls, they always like eat food from outside.
Distribution Channel
Distribution channels in marketing:
Direct to end users Sell through a dealer
network
Sell through a VAR (value-
added reseller)
We have a sales team that sells
directly to fortune 100
companies.
We sell a product through a
geographical network of
dealers who sell to end-users
in their areas. The dealers may
service the product as well.
We sell a product to a
company who bundles or other
products and resells it
We have a second product life
for small businesses. Instead
of using our sales tea, we sell
this line directly to end-users
through our website and
marketing campaigns.
Our dealers are essentially our
customers, and we have a
strong program to train and
support them with marketing
campaigns and materials.
That company is called Value
Added Reseller (VAR)
because it adds value to our
product
We have two markets and two
distribution channels
A VAR may work with an
end-user to determine the right
products and configurations,
and then implement a system
that includes our product
Table 2: Distribution channels in marketing

To create a good distribution program, we focus on the needs of our end-users
 If users need personalized service, we can utilize a local dealer network or reseller
program to provide that service.
 Through online buying product we create an e-commerce website and fulfillment system
and sell direct; we can also sell to another online retailer or distributor that can offer our
product on their own sites.
 We can build our own specialized sales team to prospect and close deals directly with
customers.
3.10 Marketing strategy:
Before investing in a new venture, the four key marketing factors are carefully defined. Get any
one of these wrong, and results will be less than stellar. Whether its widgets, consumer goods, or
professional services, knowing the 4Ps will allow you to achieve maximum results with
minimum effort. Our marketing strategy is very customer friendly. We are to follow fewer
prices, more sells, and more profit policy in our strategy. Our marketing activities will be a
reflection of our customer friendly pricing, promotion, products and place.
Figure 3: Marketing Strategy

Products:
The right product is the one that meets the needs of our customers. We must carry out research to
identify those needs and obtain feedback to ensure our product meets them. By monitoring
product review sites or asking your sales team for feedback on customer attitudes, you can assess
how well your product performs compared to its competitors. We may need to improve different
aspects of the product to improve performance. Adding more features that are important to
customers, improving quality, changing the packaging or offering the product in different sizes
or quantities are examples of changes that can make our product more appealing to customers.
Pricing:
The amount of money paid by customers to purchase the product .Initially we collect our cats
from farms and in future we will grow our own farm to have a supply at the cheapest cost. This
is how we will ensure customer friendly price. Once a concrete understanding of the product
offering is established we can start making some pricing decisions. Price determinations will
impact profit margins, supply, demand and marketing strategy. Similar (in concept) products and
brands may need to be positioned differently based on varying price points, while price elasticity
considerations may influence our next two Ps.
Promotion:
Promotion looks at the many ways marketing agencies disseminate relevant product information
to consumers and differentiate a particular product or service. Promotion includes elements like:
advertising, public relations, social media marketing, email marketing, search engine marketing,
video marketing and more. Each touch point must be supported by a well-positioned brand to
truly maximize return on investment.
Initially we will promote through Dhaka based different magazines, newspaper, local TV
channels ,billboards, handouts, handbills participating different pet related carnivals ,events etc.
Placing:
Placing has nothing to do with reality. The activities that make the product available to
consumers. Marketing managers decide where they want to compete in the market and control
their image accordingly. Positioning tells your target how to think about you, sometimes

accomplished by using an effective tagline like low price leader even though it has nothing to do
with reality. Positioning is about painting a pretty picture of how you want people to think of
your product or company; it should be simple, easy to remember, and satisfy the audience
enough so that they won't look too closely .we care of your cat the placing statement we want to
make true.
People:
You hire are a reflection of your brand's values. By focusing on hiring the right people to
manufacture, sell and deliver your products, you ensure that your brand communicates to your
customers how much you value their business.
Process:
Process is a standard. Companies that think of processes apart from customer experience are
behind the times. Your marketing team must consider this ‘behind the scenes’ information and
how it will ultimately affect the customer's experience of your product.
Phisical Environment:
Phisical Environment is your brand in relation to the competition and the overall marketplace.
Don't discard it as unimportant. Your customer is watching.
Productivity:
Productivity is about how well your company performs in the marketplace. Do you have
frequent customer service issues or deliver your product late? Are there important processes that
are slowing you down? Perhaps you need an upgrade to essential equipment. It is less about your
internal processes than your company's ability to deliver your product on time and with quality to
your waiting customers.
3.11 What Types of Risks Do Food Trucks Face?
Food truck businesses have been booming for the last few years. With a cost-effective and
dynamic way to sell food to consumers, there is no shortage of food trucks on the road in almost
every major city. However, while these vehicles may be a desirable business, they are not

without their own unique set of risks. As we take a closer look at the common exposures that this
industry faces, ensure your clients are secured with the best Food Truck Insurance policy to
mitigate risk and responsibility.
Figure 4: Risk Analysis
Vehicle risks:
Aside from the general wear and tear that any vehicle faces, the outdoor elements can really take
a toll on food trucks. Hail, lightning, snow, flood and wind damages are all common threats for
food trucks. Further, if the food truck is involved in an accident, the repairs can be costly.
Therefore, not only does physical damage pose a threat, but lengthy repairs can mean a lack of
revenue for an extended period of time.
Operator risks:
Employees are any food truck’s largest asset and backbone, but they also pose significant
liability risks for owners. Not only do they run the risk of getting into an accident, but slips, falls,
burns, and smoke inhalation are all threats that are faced in a day’s work. To prevent accidents,
proper safety equipment such as gloves and slip-resistant shoes should be worn, and proper
training should be completed.
Propane fires:
Propane tanks are a common heat source supplier for food trucks. While they are easy to install
and replace, the constant motion and jarring from traveling can cause the propane connections to
weaken, creating leaks and fire hazards. The structural failure of a tank or a leak can cause
extreme damage and poses significant threats to those in and around the food truck.
Vehicle
risks
Operator
risks
Propane
fires
Cooking
and exhaust
systems
Portable
heat
sources

Vehicle Risk #1: Cooking and exhaust systems:
Cooking is an obvious risk for food trucks as the heat source is on the truck itself. However,
grease traps and exhaust systems where grease can build up also pose threats for these
businesses. The same standards of cleaning and maintaining these fixed suppression systems also
apply to food trucks.
Vehicle Risk #2: Portable heat sources.
Besides the fuel needed for cooking, the trucks need electricity as well and this is provided by
portable generators.
Food trucks are facing these types of risk because of our country situation. But they accept the
risk and take advantages and improving the weaknesses.
Figure 5: Risk analysis 2

4.0 What are the challenges of food truck owners must overcome?
There have some challenges of food truck owners must be overcome like as:
Parking for Food Truck Owners:
You can’t just park wherever you want. Some food truck parks lease the spots. Others require a
percentage of your sales. Often there are waiting lists for parking spots at lunch spots, fairs,
farmers’ markets, and other events. It’s more than simply finding an open parking lot and setting
up shop, especially if you want a spot in the most highly trafficked areas.
Never-ending Grocery List:
Food trucks are built with food preparation in mind, not bulk food storage. As a result, buying in
bulk like stand-alone restaurants often do is impractical. Because most food trucks change
locations often, ingredient deliveries from vendors are a logistical nightmare. This leaves owners
or employees shuttling food from store to truck almost daily. You might argue that it would be
more efficient to take the food truck to the supermarket, until you realize that the trucks may
only get seven miles per gallon of gas.
Weather:
You may have the most efficient system for cooking gourmet food ever known to the food truck
industry, but if the weather doesn’t cooperate you won’t sell a thing. Food trucks are at the
mercy of weather. Nobody wants to eat a soggy fish taco at a muddy picnic table. Likewise, only
a handful of people would trudge through snow and ice to get a slice of pizza they have to eat in
freezing temperatures. You can control your food quality and your business plan. You can’t
control the weather.
Food Truck Owners Must Be Truck Drivers:
It’s not enough to keep your cooking supplies running properly. You also have to make sure the
truck runs reliably enough to get you to scheduled events on time. All trucks require regular
maintenance, repairs, gas, and new tires. The more you know about mechanics and automotive
repairs, the better off you’ll be.

A Bonus Thought: Payment Methods:
What forms of payment will you accept? Checks are practically obsolete. That leaves cash and
credit cards. Some food trucks choose to only accept cash. This may seem to be the simplest
solution on the surface, but it leaves the food truck vulnerable in a couple of ways. First of all,
when crooks become aware you’re an all cash business you can become a target for robbery.
Secondly, you lose any potential customer who doesn’t happen to be carrying cash.
4.1 Why Do Food Truck Businesses Fail?
We have put together some reasons why food truck or food truck business has failed (outside of
local legislation which in many cases is out of your hands). Take a look at your gourmet food
truck or food cart business (yes hot dog carts too) and make sure you avoid these mistakes, to
maintain a flourishing business. For example:
Constrained by Your Vision:
A food truck owner knows it’s all about the customer, not his or her personal tastes and opinions.
Don’t be self-possessed. Be open to opinions other than your own. Without a vision, a food truck
is like a ship without a rudder and is in danger of drifting aimlessly.
No Identity:
Few things are as important in the food truck business as the way your business is perceived.
Lack of identity is the opposite of being constrained by your vision. A food truck’s success
depends on its ability to establish a brand and stick to it, so develop an identity and focus on
perfecting it.
Bad Opening:
“You never get a second chance to make a good first impression” was never truer than in the
food truck business. There’s a reason actors rehearse before opening night—you should too. A

soft opening is a great tactic that can lead to an infinitely more successful grand opening of your
new food truck.
Hiring & Training:
Just like a bad opening, bad service will kill your business quickly. If your vision isn’t executed
properly, the damage to your current and future customers is unavoidable. Most food truck
owners lack formalized training, procedural and operational processes. Learn from an
experienced owner or hire a consultant for expert advice.
No Formal Recipes:
How can your truck or food cart kitchen staff maintain consistency without formal recipes? This
step is critical to controlling costs, curtailing waste, and providing effective staff training.
Poor Inventory Management:
Outside of the initial capital required to purchase your truck or cart, the cost of food is a mobile
bistro’s single biggest expense and, unless the financial control systems are in place, you are
vulnerable to a drain on your cash. Reducing inventory means a reduction in food cost, so
manage your resources carefully.
Undercapitalization:
Unexpected and unforeseen events happen all the time, especially in a food truck business. In
many instances, incorrect budgeting is the culprit. Don’t get caught up in the dream of being
profitable from Day 1. Make sure you’ve got money left in the bank to help you ride out the
difficult days when your truck needs a new generator, or even a new engine or transmission.
Poor Ownership:
Don’t be an absentee owner. If you want to own a food truck or cart, expect to work. Otherwise,
don’t expect to get paid. But, and this is a big but, if you haven’t put the systems, tools, and
people in place that allow you to step away from the day-to-day operations, then you haven’t
bought yourself a business; you’ve bought yourself a job with a misleading title.

Insufficient Market Analysis:
A thorough examination of locations you plan to sell your fare is vital to know if it is to be
successful and, once it is successful, staying on top of business trends will keep it that way. This
is another area where an experienced owner, marketer or consultant can help.
Lack of a Business Plan:
The last of our top reasons food truck businesses fail relates to the lack of a business plan. The
previous nine points MUST be addressed in your business plan, and the plan MUST be right the
first time. The business plan is what everything your food truck will do is based on.
 Force you to plan ahead.
 Think about the competition.
 Formulate a marketing strategy.
 Define your management structure.
 Plan your financing, among other things.
5.0 Financial Statement
Business financial statements provide various financial information that investors and creditors use
to evaluate a company’s financial performance. Financial statements are also important to a
company’s managers because by publishing financial statements, management can communicate
with interested outside parties about its success running the organization. Different financial
statements focus on different areas and our business financial statement is given below by table
and chart:

Start-up Budget:
Details Amount in BDT
Initial investment (Name and parent ownership)
Md:Ashikur Rahman(20%)
Dolon Rani Guha (20%)
Md:Shakil Bhuiyan(20%)
Raisa(20%)
Tahsin Raisa(20%)
1,00,000
1,00,000
1,00,000
1,00,000
1,00,000
Total Investment 5,00,000
Fixed Expenses :
Salary (5*8000)
Track
Furniture
Kitchen Equipment
Other Equipment
40,000
3,00,000
20,000
20,000
20,000
Total Fixed Expenses 4,00,000
Variable expenses :
Raw material
Truck maintains
Advertising
Service cost
Travel entertainment
15,000
3,000
3,000
1,000
2,000
Total Variable expenses 24,000
Total expenses: 4,24,000
Cash on hand 76,000
Table 3: Start-up Budget

Historical Balance Sheet
Details 2014 2015 2016
Fixed Assets:
Truck (less depreciation 5%)
Equipment (less depreciation 2%)
Furniture (less depreciation 2%)
Kitchen equipment (less depreciation 3%)
3,10,000
25,000
25,000
25,000
2,94,500
24,500
24,500
24,250
2,79,775
24,010
24,010
23,523
Total Fixed Assets 3,85,000 3,67,750 3,51,318
Current assets:
Cash equivalents
Other receivables
Prepaid expenses
3,24,000
___
___
4,08,000
___
___
4,54,000
___
___
Total current assets 3,24,000 4,08,000 4,54,000
Total assets 4,09,000 7,75,750 8,05,000
Current liabilities:
Accounts payable 40,000 50,000 60,000
Total current liabilities 40,000 50,000 60,000
Capital
(+) Net income
5,00,000
2,07,400
5,00,000
1,13,900
5,00,000
1,75,100
Total equity 7,07,400 6,13,900 6,15,100
Total liabilities 6,67,400 5,63,900 6,15,100
Table 4: Historical Balance Sheet

Historical Income Statement
Details 2014 2015 2016
Revenue:
Sales 13,20,000 16,10,000 20,40,000
Total revenue 13,20,000 16,10,000 20,40,000
Expenses:
Salary
(-)payable
Raw Materials
Truck Maintenance
Service Cost
Advertising
Travel Entertainment
License and permits
7,30,000
(40,000)
2,10,000
44,000
18,000
48,000
36,000
30,000
9,70,000
(50,000)
3,30,000
56,000
24,000
56,000
48,000
42,000
11,90,000
(60,000)
4,10,000
68,000
36,000
70,000
62,000
58,000
Total Expenses 10,76,000 14,76000 18,34,000
Earnings before income taxes
(-)Income tax 15%
2,44,000
36,600
1,34,000
20,100
2,06,000
30,900
Net income 2,07,400 1,13,900 1,75,100
Table 5: Historical Income Statement

Historical Cash Flow
Details 2014 2015 2016
Beginning Cash
Sales
1,20,000
13,20,000
3,24,000
16,10,000
3,08,000
20,40,000
Total Cash received 13,20,000 16,10,000 20,40,000
Total Cash Available 14,40,000 19,34,000 23,48,000
Cash Paid out:
Salary
Raw materials
Truck Maintenance
Service cost
Advertising
License and permits
7,30,000
2,10,000
44,000
18,000
48,000
36,000
30,000
9,70,000
3,30,000
56,000
24,000
56,000
48,000
42,000
11,90,000
4,10,000
68,000
36,000
70,000
62,000
58,000
Total Cash needed 11,16,000 15,26,000 18,94,000
Cash and cash equivalents 3,24,000 4,08,000 4,54,000
Table 6: Historical Cash Flow

Pro Forma Balance Sheet
Details 2017 2018 2019
Fixed Assets:
Truck ( less depreciation 5%)
Equipment (less depreciation 2%)
Furniture (less depreciation 2%)
Kitchen equipment (less depreciation 3%)
3,00,000
20,000
20,000
20,000
2,85,000
19,600
19,600
19,400
2,70,750
19,208
19,208
18,818
Total Fixed Assets 3,60,000 3,43,600 3,27,984
Current Assets:
Cash and cash equivalents
Other receivables
Prepaid expenses
3,95,000
___
___
7,51,000
___
___
14,50,000
___
___
Total Current Assets 3,95,000 7,51,000 14,50,000
Total Assets 7,55,000 10,94,600 17,77,984
Liabilities and equity:
Current liabilities:
Accounts payable 40,000 50,000 60,000
Total Current liabilities 40,000 50,000 60,000
Capital
(+) Net income
5,00,000
2,40,000
5,00,000
2,46,160
5,00,000
3,19,624
Total equity 7,40,000 7,46,160 8,91,624
Total liabilities 7,80,000 7,96,160 9,51,624
Table 7: Pro Forma Balance Sheet

Pro Forma Income Statement
Details 2017 2018 2019
Revenue:
Sales 10,80,000 12,60,000 17,55,000
Total Revenue 10,80,000 12,60,000 16,08,750
Expenses:
Salary (8,000; 10,000; 12,000)
Raw materials (15,000; 16,000; 16;500)
Track maintenance (3,000; 5,000; 6,500)
Service cost (1,000; 1,500; 2,000 ;)
Advertising (3,000; 4,000; 4,500)
Travel entertainment (2,000; 3,000; 3,500)
Licenses and permits
Depreciation
4,80,000
1,80,000
36,000
12,000
36,000
24,000
30,000
___
6,00,000
1,92,000
60,000
18,000
48,000
36,000
___
16,400
7,20,000
1,98,000
78,000
24,000
54,000
42,000
___
32,016
Total expense 7,98,000 9,70,400 11,48,016
Earnings before income taxes
(-)Income tax 15%
2,82,000
42,000
2,89,600
43,440
4,60,734
69,110
Net income 2,40,000 2,46,160 3,91,624
Table 8: Pro Forma Income Statement

Pro Forma Cash Flow
Details 2017 2018 2019
Beginning cash 73,000 3,95,000 7,51,000
Cash received:
Sales 10,80,000 12,60,000 17,55,000
Total Cash received 10,80,000 12,60,000 17,55,000
Total Cash Available 11,53,000 16,55,000 25,06,000
Cash paid out:
Salary (payable 1 month)
Raw materials
Track maintenance
Service cost
Advertising
License and permits
4,40,000
1,80,000
36,000
12,000
36,000
24,000
30,000
5,50,000
1,92,000
60,000
18,000
48,000
36,000
__
6,60,000
1,98,000
78,000
24,000
54,000
42,000
__
Total Cash needed 7,58,000 9,04,000 10,56,000
Cash and cash equivalents 3,95,000 7,51,000 14,50,000
Table 9: Pro Forma Cash Flow

Historical Ratios Analysis:
Details
Calculation
Year
GraphA) Liquidity
Ratio
2014 2015 2016
1.Current
Ratio
Current assets /
Current
liabilities
8.1 8.16 7.57
2. Quick ratio: (Cash and
equivalents +
Account
receivables) /
Current
liabilities
2.68 0.92 0.91
B.
Profitability
Ratio:
2014 2015 2016 Graph
7.2
7.4
7.6
7.8
8
8.2
8.4
2014 2015 2016
CurrentRatio
Current Ratio
7.2
7.4
7.6
7.8
8
8.2
8.4
2014 2015 2016
Quick ratio
Quick ratio

3. Net Profit
Margin
Net Income /
Sales
0.16 0.07 0.07
4.Return on
Total Assets
Net Income /
Total Assets
0.26 0.27 0.28
C) activity
ratio
2014 2015 2016 Graph
Total assets
turnover
Sales/Total
assets
3.32 2.08 2.53
Table 10: Historical Ratios Analysis
0
0.05
0.1
0.15
0.2
2014 2015 2016
Net Profit Margin
Net Profit Margin
0
0.1
0.2
0.3
0.4
0.5
0.6
2 0 1 4 2 0 1 5 2 0 1 6
RETURN ON
TOTAL ASSETS
Return on Total Assets
0
1
2
3
4
2014 2015 2016
Total assets turnover

Pro Forma Ratio Analysis
Details
Calculation
Year
GraphB) Liquidity
Ratio
2017 2018 2019
1.Current
Ratio
Current assets /
Current
liabilities
9.88 15.02 24.17
2. Quick ratio: (Cash and
equivalents +
Account
receivables) /
Current
liabilities
9.88 15.02 24.17
B.
Profitability
Ratio:
2017 2018 2019 Graph
0
10
20
30
2017 2018 2019
CurrentRatio
Current Ratio
0
5
10
15
20
25
30
2017 2018 2019
Quick ratio
Quick ratio

3. Net Profit
Margin
Net Income /
Sales
0.22 .20 0.22
4.Return on
Total Assets
Net Income /
Total Assets
0.32 0.22 0.22
C) activity
ratio
2017 2018 2019 Graph
Total assets
turnover
Sales/Total
assets
1.43 1.15 0.99
Table 11: Pro Forma Ratio Analysis
0.19
0.195
0.2
0.205
0.21
0.215
0.22
0.225
2017 2018 2019
Net Profit Margin
Net Profit
Margin
0
0.1
0.2
0.3
0.4
2 0 1 7 2 0 1 8 2 0 1 9
RETURN ON
TOTAL ASSETS
Return on Total Assets
0
0.5
1
1.5
2
2017 2018 2019

6.0 CONCLUSION
From this report study; we will be found that Unity food truck should provides better quality
product for customers. Unity food truck creates a privilege for the members for bonding the
relationship between the customer and the organization. Focusing on targeted segments is the
key to our future. Therefore, our focus and marketing message will be the services offered. We
will develop our message, communicate it, and fulfill our commitment to excellence.
References
1. Food cart business start up [Available at: http://articles.bplans.com/how-to-start-a-food-
truck/],[Accessed on: 24 July 2017, 2:30 pm]
2. What a food truck business plan should have [Available at: https://mobile-
cuisine.com/business-plan/writing-a-food-truck-business-plan/],[Accessed on: 24 July
2017, 2:45 pm]
3. Mealey.L.(27 july, 2016), How to Write a Food Truck Business Plan, Find Financing for
a Food Truck [Available at: https://www.thebalance.com/write-a-food-truck-business-
plan-4066702],[Accessed on: 24 July 2017, 3:10 pm]
4. Griffin.L. (January 24, 2017), 7-Step Plan For How To Start A Mobile Food Truck
Business, Business, Business Bites, How to Start a Food Truck. [Available at:
https://foodtruckr.com/2017/01/7-step-plan-for-how-to-start-a-mobile-food-truck-
business/],
[Accessed on: 24 July 2017, 3:30 pm]
5. Why do food truck businesses fail? [Available at: https://mobile-
cuisine.com/business/why-do-food-truck-businesses-fail/],[Accessed on: 25 July 2017,
2:20 pm]
6. How to avoid food truck kitchen problem [Available at: https://mobile-
cuisine.com/business/food-truck-kitchen-problems-how-to-avoid-them/],[Accessed on:
25 July 2017, 2:40 pm]
7. Food truck business problem [Available at: http://greenzonwheelz.com/six-problems-
that-cause-food-trucks-to-fail/], [Accessed on: 25 July 2017, 2:55 pm]

8. How to overcome food truck problem [Available at: https://bindopos.com/blog/7-
challenges-food-truck-owners-must-overcome/],[Accessed on: 25 July 2017, 3:20 pm]
9. Food truck business problem [Available at: https://www.quora.com/unanswered/What-
are-the-problems-faced-while-opening-food-trucks-in-india],[Accessed on: 26 July 2017,
2:10 pm]
10. Comparison between food truck and restaurant [Available at: https://mobile-
cuisine.com/startup-basics/food-truck-before-opening-a-restaurant/],[Accessed on: 26
July 2017, 3:10 pm]
11. Advantages of food truck [Available at: http://www.hoodmart.com/blog/the-5-biggest-
advantages-of-opening-a-food-truck-vs-a-brick-and-mortar-
restaurant.html#.WX8LfBWGPIU],[Accessed on: 27 July 2017, 2:30 pm]
12. Advantages of food truck [Available at: http://www.legionmfg.com/advantages-of-food-
trucks ],[Accessed on: 27 July 2017, 4:10 pm]
13. Disadvantages of food truck [Available at: https://mobile-cuisine.com/startup-
basics/disadvantages-of-food-truck-ownership/ ],[Accessed on: 28 July 2017, 3:10 pm]

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