How to Start a Mobile Coffee Cart

Start a mobile coffee cart by following these 10 steps:

1. Plan your Mobile Coffee Cart
2. Form your Mobile Coffee Cart into a Legal Entity
3. Register your Mobile Coffee Cart for Taxes
4. Open a Business Bank Account & Credit Card
5. Set up Accounting for your Mobile Coffee Cart
6. Get the Necessary Permits & Licenses for your Mobile Coffee Cart
7. Get Mobile Coffee Cart Insurance
8. Define your Mobile Coffee Cart Brand
9. Create your Mobile Coffee Cart Website
10. Set up your Business Phone System

We have put together this simple guide to starting your mobile coffee cart. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Exploring your options? Check out othersmall business ideas．

STEP 1: Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

• What will you name your business?
• What are the startup and ongoing costs?
• How much can you charge customers?

Luckily we have done a lot of this research for you.

What will you name your business?

Choosing the right name is important and challenging. If you don’t already have a name in mind, visit ourHow to Name a Businessguide or get help brainstorming a name with ourMobile Coffee Cart Name Generator

If you operate asole proprietorship, you might want to operate under a business name other than your own name. Visit ourDBAguide to learn more.

Whenregistering a business name, we recommend researching your business name by checking:

• Your state's business records
• Federal and state trademark records
• Social media platforms
• Web domain availability．

It's very important to secure your domain name before someone else does.

What are the costs involved in opening a mobile coffee cart?

启动一个移动咖啡车业务的成本re relatively low — around $16,000 — because, unlike coffee shops, you don’t require a physical space in which to operate. This amount includes licensing for one county, which can vary based on location so check with your local county or city administrative office. To further refine your starting budget, invest in only what you absolutely need. If you plan to serve coffee to go at your first few events, for example, don’t spend money on porcelain cups right away.

Here’s the essential equipment you’ll need to get started:

• Coffee Cart
• A Point-of-Sale (POS) system
• Espresso Machine*
• Drip Coffee Maker and Airpots*
• Serving Items (E.g., Pitchers, Stirrers, Cups, and Lids)
• Steaming Pitchers
• Handwashing Sink
• Water Pump for Your Coffee Maker
• Refillable 5 Gallon Water Jugs
• Coffee
• Milk
• Drink Add-Ons (E.g., Syrups and Sugar)

*Depending on the type of coffee cart you plan to operate. If you only serve espresso, you don’t need a drip coffee maker. Likewise, you won’t need an espresso machine if you only serve drip coffee.

How does a mobile coffee cart make money?

Mobile coffee cart owners can operate their business in several ways: by selling cups of coffee, by renting their cart to clients with an open bar business model, or by offering a combination of both. The first option works well if you plan to operate at a farmers market or other event for which you personally rent a space and then sell coffee to attendees. The second option involves a client hiring your cart at a flat rate to provide an open bar service. The client pays for your time and product instead of individual attendees, and you can charge a set price by the hour. Finally, the third option involves some combination of renting your coffee cart to local companies and selling cups of coffee at farmers markets or other events.

Your sales volume will depend on the season, but this is a year-round gig for the most part. Summer, for example, will likely be your most profitable season because it typically features many weddings, markets, and fairs. Winter may be your next busiest season if you network enough to secure bookings for company parties. The in-between seasons likely will require diligent budgeting as you focus on promoting your business, booking future events, and working existing bookings.

How much can you charge customers?

To calculate what you should charge your clients and individual customers, consider the amount you invested or owe (e.g., if you took a loan to start your business) as well as your monthly expenses. For example, say you plan to pay $1,333 each month in order to repay a $16,000 loan within a year. If you also plan to book four events per month, you’ll need to make at least $333 per event to cover just your start-up costs.

If you plan to charge by the hour, consider setting a minimum time limit to ensure you can make enough money at each event. For events at which you’ll sell coffee by the cup, research the prices your local competitors charge. If the coffee shops in your area typically charge $3 for a shot of espresso, for example, you’ll know that’s a reasonable price point for your customers.

How much profit can a mobile coffee cart make?

After your initial investment, you can expect several ongoing business expenses. These include the cost of your product ingredients (e.g., coffee, milk, and syrups), water jugs (e.g., refillable five-gallon jugs), transportation costs like gas and insurance, and employee wages if you have any staff members.

How can you make your business more profitable?

Your profitability will depend on how many events you can book each month. The more events you book after you cover your monthly expenses, the more profit you can make.

You can boost your profits by booking bigger events, offering more items like food or tea drinks at an additional cost, or stocking in-demand coffees and other products to drive interest. If you only serve espresso drinks or drip coffee, another way to increase your profitability is to sell both to help attract more customers with an expanded set of offerings.

STEP 2: Form a legal entity

The most commonbusiness structuretypes are thesole proprietorship,partnership,118bet金博宝 , andcorporation．

Establishing a legal business entity such as anLLCorcorporationprotects you from being held personally liable if your mobile coffee cart is sued.

You can金宝搏188是什么公司yourself and pay only the minimal stateLLC costsor hire one of the118金宝app for a small, additional fee.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It's really easy and free!

There are specific state taxes that might apply to your business. Learn more aboutstate sales taxand franchise taxes in our state sales tax guides.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to aspiercing your corporate veil．

Open a business bank account

Besides being a requirement when applying for business loans, opening a business bank account:

• Separates your personal assets from your company's assets, which is necessary for personal asset protection.
• Makes accounting and tax filing easier.

Get a business credit card

Getting abusiness credit cardhelps you:

• Separate personal and business expenses by putting your business' expenses all in one place.
• Build your company's credit history, which can be useful to raise money later on.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

Make LLC accounting easy with ourLLC Expenses Cheat Sheet.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

STEP 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully.Business Insuranceprotects your company’s financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face,begin withGeneral Liability Insurance．This is the most common coverage that small businesses need, so it’s a great place to start for your business.

Another notable insurance policy that many businesses need isWorkers’ Compensation Insurance．If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.

Is this Business Right For You?

What happens during a typical day at a mobile coffee cart?

On days when your coffee cart supports an event, you’ll focus on serving your customers. This includes setting up your cart, making coffee, and providing excellent customer service. On the other days, you’ll need to focus on networking and promoting your business in order to find more events to which you can bring your cart.

What are some skills and experiences that will help you build a successful mobile coffee cart?

Running a successful mobile coffee cart requires business owners to excel in four areas:

• Coffee Knowledge:This is the most important skill to have before starting this type of business. You’ll need a strong understanding of how to extract espresso, steam milk, and build drinks as well as the ability to operate other coffee equipment, such as drip coffee makers.
• Adaptability:You’ll also need a high degree of flexibility to operate a business with a schedule that shifts every week and requires you to solve problems as they arise at events. Troubleshooting skills are essential when you’re on the go.
• Customer Service:This will take up the majority of your time and energy while you operate your cart. Whether you’re serving the client who hired you or their guests, you’ll need to provide a consistently outstanding customer experience.
• Networking:This is how you’ll find and book all the events you work. As such, you should feel confident in your ability to network with potential customers.

What is the growth potential for a mobile coffee cart?

The growth of your mobile coffee cart business depends partially on your availability and your networking skills. If you can book events consistently, your business will grow. As your cart’s popularity and brand recognition increase, you may consider turning your business into a brick- and-mortar coffee shop.