Mobile coffee carts, which function as mobile coffee shops, offer caffeine to unexpected locations. They are often hired for a range of occasions, including as weddings and corporate celebrations. They may also be found in farmers markets, craft festivals, and street fairs. This sort of company offers a niche product as well as a one-of-a-kind experience, replacing a bar for daytime activities or alcohol-free events.
Table of Contents
Follow these ten steps to start a mobile coffee cart:
Make a plan for your Mobile Coffee Cart.
Create a legal entity for your mobile coffee cart.
Taxes must be registered for your mobile coffee cart.
Create a Business Bank Account and a Credit Card
Configure Accounting for Your Mobile Coffee Cart
Get the Permits and Licenses You Need for Your Mobile Coffee Cart
Purchase Mobile Coffee Cart Insurance
Establish your Mobile Coffee Cart Brand
Make a website for your mobile coffee cart.
Configure your Business Phone System
Starting a company entails more than just registering it with the state. We’ve put up a basic guide to getting started with your mobile coffee cart. These stages will guarantee that your new company is well-planned, correctly registered, and legally compliant.
Are you considering your options? Other tiny business ideas may be found here.
STEP 1: Make a business plan.
A well-thought-out strategy is vital for entrepreneur success. It will assist you in mapping out the intricacies of your organisation and uncovering some unknowns. Consider the following crucial topics:
What are the initial and continuing expenses?
How much money may you charge your customers?
Fortunately, we have done a lot of the legwork for you.
What are the expenses of starting a mobile coffee cart?
A mobile coffee cart company has modest startup expenses — roughly $16,000 — since, unlike coffee shops, you don’t need a permanent site to operate. This price covers licence for one county, which may vary depending on location, so verify with your local county or municipal administrative office. Invest solely on what you really need to further refine your beginning budget. Don’t buy porcelain cups right immediately if you want to offer coffee to go at your first few occasions, for example.
Here are the main tools you’ll need to get started:
Coffee Service
A POS (Point-of-Sale) system
*Espresso Maker
Airpots and Drip Coffee Maker*
Items for Serving (E.g., Pitchers, Stirrers, Cups, and Lids)
Pitchers of Steam
Sink for Handwashing
Your Coffee Maker’s Water Pump
5 Gallon Refillable Water Jugs
Coffee
Milk
Drink Extras (E.g., Syrups and Sugar)
*This may vary depending on the style of coffee cart you want to run. You don’t need a drip coffee machine if you simply offer espresso. Similarly, if you solely provide drip coffee, you won’t require an espresso machine.
How does a mobile coffee cart generate revenue?
Mobile coffee cart operators may run their businesses in a variety of ways, including selling cups of coffee, renting their cart to customers using an open bar business model, or providing a mix of the two. The first option is appropriate if you want to operate at a farmers market or other event where you will rent a space and then sell coffee to guests. The second option is for a customer to hire your cart for a set fee to offer open bar service. Instead of individual attendance, the customer pays for your time and goods, and you may charge a flat rate per hour. Finally, the third option is renting your coffee cart to local businesses and selling cups of coffee at farmers markets or other events.
Your sales volume may vary depending on the season, but this is a year-round job. Summer, for example, is likely to be your most lucrative season due to the high number of weddings, markets, and fairs. If you network sufficiently to acquire reservations for workplace events, winter might be your next busiest season. The in-between seasons will most likely need careful planning as you concentrate on advertising your company, arranging new events, and handling current engagements.
How much money may you charge your customers?
Consider the amount you invested or owe (for example, if you took out a loan to start your firm) as well as your monthly expenditures when determining what you should charge your clients and individual consumers. Assume you want to pay $1,333 each month in order to repay a $16,000 loan in a year. If you also want to schedule four events each month, you’ll need to earn at least $333 per event to pay your first expenses.
If you want to charge by the hour, consider establishing a minimum time restriction to guarantee that you generate enough money at each event. For occasions where you’ll be selling coffee by the cup, look into what your local rivals are charging. If the average price for a shot of espresso in your neighbourhood is $3, you’ll know that’s a good pricing point for your clients.
How much money can a mobile coffee cart bring in?
Following your first investment, you may anticipate a number of continuing company expenditures. These include the cost of your product components (for example, coffee, milk, and syrups), water jugs (for example, refillable five-gallon jugs), transportation expenses such as petrol and insurance, and employee pay if you have any employees.
How can you increase the profitability of your company?
The number of events you can schedule each month will determine your profitability. After covering your monthly expenditures, the more events you book, the more profit you may earn.
You may increase your income by arranging larger events, charging a charge for extra goods such as food or tea beverages, or stocking in-demand coffees and other products. If you just provide espresso drinks or drip coffee, selling both may help you attract more customers by providing a more diverse range of options.
STEP 2: Establish a legal entity
Sole proprietorship, partnership, limited liability company (LLC), and corporation are the most frequent business structure forms.
If your mobile coffee cart is sued, becoming a legitimate business organisation, such as an LLC or corporation, safeguards you from being held personally accountable.
STEP 3: File your taxes
Before you can begin for business, you must register for a number of state and federal taxes.
To register for taxes, you will need to get an EIN. It’s really simple and completely free!
Taxes on Small Businesses
Depending on the business form you choose, you may have multiple choices for how your company is taxed. Some LLCs, for example, may benefit from being taxed as a S company (S corp).
These guides will teach you more about small company taxes:
Taxes on LLCs
LLC vs. sole proprietorship
Corporation vs. LLC
S Corp vs. LLC
How to Form a S Corporation
S Corporation vs. C Corporation
There may be state taxes that apply to your company. In our state sales tax guides, you may learn more about state sales taxes and franchise taxes.
STEP 4: Establish a company bank account and credit card
Personal asset protection requires the use of distinct business banking and credit accounts.
When you combine your personal and business accounts, your personal assets (your house, vehicle, and other possessions) are at danger if your company is sued. This is known as penetrating your company veil in business law.
Furthermore, understanding how to develop corporate credit may help you get credit cards and other financing in your company’s name (rather than your own), lower interest rates, larger lines of credit, and other benefits.
Establish a business bank account.
Opening a business bank account is not only required when asking for business financing, but it also:
Separates your personal assets from the assets of your firm, which is required for personal asset protection.
It simplifies bookkeeping and tax reporting.
Create a net 30 account.
Net 30 accounts are used to develop and grow company credit while also increasing cash flow. Businesses use a net 30 account to purchase items and refund the whole debt within a 30-day period.
Many net 30 credit suppliers submit information to the main business credit agencies (Dun & Bradstreet, Experian Business, and Equifax Business Credit). This is how firms establish business credit in order to get approved for credit cards and other lines of credit.
Apply for a business credit card.
Obtaining a business credit card benefits you in the following ways:
Put all of your company’s costs in one location to separate personal and business spending.
Build your company’s credit history, which will be important for raising funds in the future.
STEP 5: Establish business accounting
Recording your numerous costs and sources of revenue is crucial to assessing your company’s financial status. Keeping precise and thorough accounting also makes yearly tax filing much easier.
STEP 6: Obtain all required permissions and licences
Failure to get appropriate permissions and licences may result in significant penalties or possibly the closure of your firm.
STEP 7: Obtain commercial insurance.
Insurance, like licences and permits, is required for your company to operate safely and legally. In the case of a covered loss, business insurance protects your company’s financial well-being.
There are several sorts of insurance plans designed for various types of companies with varying risks. If you are unaware about the hazards that your company may encounter, start with General Liability Insurance. This is the most popular coverage required by small companies, so it’s a good place to start for yours.
STEP 8: Establish your brand
Your company’s brand is what it stands for, as well as how the public perceives it. A strong brand will help your company stand out from the crowd.
STEP 9: Create your company’s website.
After you’ve defined your brand and designed your logo, the next step is to build a website for your company.
While developing a website is an important step, some may be concerned that it is out of their grasp due to a lack of website-building skills. While this was a fair concern in 2015, online technology has made significant advances in recent years, making the lives of small company owners considerably easier.
The following are the primary reasons why you should not put off developing your website:
Every genuine company has a website, period. When it comes to bringing your company online, it doesn’t matter what size or sector it is.
Social media accounts, such as Facebook pages or LinkedIn company profiles, are not a substitute for your own business website.
STEP 10: Install your company phone system.
Getting a phone for your company is one of the finest methods to keep your personal and professional lives distinct and private. That isn’t the only advantage; it also helps you automate your company, provides it legitimacy, and makes it simpler for prospective clients to identify and contact you.