Michelle recently commented on a previous post and asked some really good questions. As I was answering her I realized that not very many people would see it buried 8 comments and several posts deep. So I’m reprinting our exchange here for all to learn from…
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Hello,
I am 25 years old, college educated (BS Chemistry) and currently working on my MBA. I worked in several fields before including quality assurance and Research and Development. I have lost two jobs in the past six months! Mostly due to the economy. I am currently unemployed. It has only been about two weeks, but I am starting to wonder if I should even bother looking for employment. I have always wanted to start a hot dog business, but I am not sure if I want to have a hot dog cart business. I think I would prefer a brick and mortar. Is there an advantage over having a brick and mortar over a cart and vice versa? I have never ran a business before and don’t have the slightest clue how to get started. I think owning my own business may be my calling since working for others isn’t working out. What advice can you give to get me started? Please advice. Thank you.
Michelle
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Hi Michelle,
I’m very sorry to hear about your job losses. But maybe it’s serendipity…There has never been a better time to start a hot dog cart business. To prove the point, sales of hot dogs (and carts) are at record setting levels this year.
However I would stay away from a brick and mortar establishment. Carts have many, many advantages over a store front business, especially when you’re just starting out.
The three biggest advantages are low overhead, mobility, and WAY easier health department regulations.
Why pay $4000 a month for rent and at least $20,000 in equipment, fixtures, tables, chairs, decorating, signage, etc, when you don’t have to? How many employees will you have on your payroll? Besides the financial investment, consider your time. Restaurant owner LIVE at their restaurants, often working 18 hours a day. How does that sound? A typical hot dog cart owner works 4 hours a day.
You can start a hot dog cart business for $500 – $1500 if you build your own cart or buy used equipment. Even if you buy new, it’s still a comparatively small investment. It’s a wonderful feeling to have wheels under your business because you’re not betting the farm on your location. If it doesn’t produce, move along. You will eventually find your “money” spot.
Health codes for hot dog carts usually run about 3 pages. Health codes for restaurants can be over one hundred. As long as you serve only hot dogs and pre-cooked sausages, bagged chips, and canned soda, you will fall under the “non-hazardous” classification and you will only have to comply with a minimum amount of rules.
Warning: Sales pitch ahead 😉
You told me that you have no clue where to start. Based on what you’ve told me, I highly recommend you get my 250 page course “Carts of Cash” at www.HotDogBiz101.com. If you do, I’ll give you a coupon worth $100 off any new cart listed on my web sites. It’s like getting my course for free. It’s truly a no-brainer investment. After you go through the whole course, you will know exactly what to do every step of the way.
The best way to beat a bad economy is to choose not to participate. The Dow Jones is an average. That means a lot of people are still doing very well. Just decide to be a winner, go out and create your own bailout!
Let me know if I can answer any more questions.
To your success!
-Steve
Steve,
Does your course address the sales tax issues? I have an opportunity to get an old catering truck to turn into a hot dog truck. It is a WAG (Name brand) unit and it will need a little TLC but I think it just might work. Can you tell me a little more about insurance? I am worried about getting sued if someone gets bad food. Is that a big problem? Thanks,
Barron
Barron,
Yes. My course addresses sales tax in detail – how to apply for a resellers permit, tax ID number, etc. There is one big mistake most people make when they start to collect sales tax and it will cost you. I tell you how to do it the right way and save a large chunk of change.
Although some people will say you don’t need it, insurance is necessary in my opinion. All you need is a general business liability policy. It’s cheap. My course tells you all about it, where to get it, etc.
Keep us posted on your progress with the catering truck. That’s a good way to go.
– Steve
Thanks Steve,
Is there a proven formula to speculate income potential based on demographics? This is going to be a BIG leap for me and I would like to have my ducks in a row. I am looking to put a business plan together that is convincing enough, even for the most shrewd investor.
Barron
Barron,
While being reasonably prepared is good, I think you may have a touch of “green light syndrome”. Click here to get the cure.
-Steve
i want to buy a cart and get started but i need finacing