Let's debunk the whole rent to own theory -
Before I get to the rent to own concept,
Most food truck manufacturers are going to sell you the dream of owning your own food truck and being your own boss, working on your own time, making a bunch of money, etc etc. Aren't you tired of hearing all of that fluff? What they don't tell you is this is one of the hardest industries to make it in. It's also backbreaking work that often times goes unnoticed. Or better yet the events that don't go as planned, or an employee that calls out on you last minute, or the generator that decides it doesn't feel like working today. I won't even mention pricing - God Forbid you ask a manufacturer the price of one. You'll sit down with them for close to an hour before you can even get an estimated total, then when you do they'll give you a hefty $100,000 price tag.
Alright, now that I've set expectations straight, lets talk about the positives.
On the upside, owning a truck gives you the freedom to create and serve your customers exactly how you envisioned it.
But I want to be honest with you - which is truly the reason I created this sector of the company - Owning a Food Truck is just like owning a house. Things break unexpectedly, the cost of admission is sky high, and to make matters worse a truck depreciates in value overtime (no matter what equipment you have in it) Nine times out of ten you're never going to get the same amount of money you put into it. So if your business tanks - there's a good chance you won't be able to recoup all of the money you spent.
In my personal experience from being a food vendor to selling food trucks, here's my take if I was a beginner OR testing out a new area:
- Rent out a truck for about 3 months, That'll give you a taste of what the nature of the business is and you can make an educated decision on what your next step is. Your next step could be shutting the business down because you don't like this business anymore, or it could be hiring more staff so you're not so into the daily operations, or it could be to change locations. The three month window gives you a bit more clarity on the lay of the land.
- Keep it simple. There's no need to get so caught up on the design, logo, lighting, cameras, POS system, etc. Simplicity is key.
So rent to own you ask?
So, to sum this up: As entrepreneurs we strive to find the best deals possible. That's what makes us entrepreneurs! But, we still have to be realistic, as I said in the first paragraph a food truck can cost nearly $100,000 and to solely charge you rent while the vehicle is depreciating would more than likely not be in the owner's interest. The owner would need to charge you a interest fee if that was the case to be profitable and scalable. Which would pretty much mean you're looking for a bank. Renting to own is like telling your landlord, "Hey I've been paying you rent for the past 5 years, I think I should be on the deed to the house". If renting to own is something you're seeking you need speak to a bank that can provide you financing.
