Do you have a great idea for a product, feature, or service, but have no idea how to begin product development? We’ve got you covered! We’ve talked to numerous product creators that have had their products featured on Shark Tank. We’ll share their stories as we discuss the product development roadmap ahead of you. We’ll answer questions like: [su_note note_color="#dbeafc"] IN SUMMARY, here's what you'll discover in this article (Click any of the links below to jump to each section):

1. What is the product development definition?
2. How to create a product?
3. What is the difference between methodology, strategy, and framework?
4. What is the product development process?
5. What are product development cycles?
6. What are the steps in the new product development process?
7. What kind of software is used in product development?

[/su_note] Get ready to learn what product managers know about the complete process to a product life cycle.

What is product development?

Product development is the process of turning an idea into a functional product that people buy. Product development is commonly used in industries like:

• Fashion 
• Software 
• eCommerce
• Pharmaceuticals
• Custom made products

Check out our interview with Ray, the founder of SoapSox. He talks about:

• How he came up with his idea.
• How he used crowdfunding to cover the costs of product development.
• Challenges he faced while developing his products and market strategy.

[su_youtube url="https://youtu.be/xfzppdEsAMM"]

Why is product development important?

Product development is important because it:

1. Pushes the world forward.
2. Provides insights into your customer needs.
3. Establishes potential demand.
4. Increases the quality of your products.
5. Reduces the cost of failed projects.

Before we proceed, I think it makes sense to discuss some definitions that you’ll need to understand the rest of the blog.

Some terminology help

Concepts in this blog might be easily confused; many of the best product management techniques are derived from the fields of project management and software development. There are a few terms that are heavily interrelated, but important ones to understand include:

• Methodologies
• Frameworks
• Strategies

We’ll describe each of these in the following sections.

Product Development Methodologies

Methodologies are the most prescriptive and narrow range of rules to follow. Many of them involve certifications and professional experience to truly master. For instance, a pharmaceutical company won’t be able to sell a drug without going through the FDA drug trials. Methodologies have a dual meaning though. Product management and project management will often use terms like “agile” methodology or Lean methodology to refer to a set of tools and procedures when there is plenty of room to expand, remove or alter the product development process. In fact, there are more than 42 agile methodologies.  There are also “methodologies” that don’t use an agile approach like the waterfall product development process where each step is separate from the others and there are no iterations. A car company or a construction company would normally use these processes because you can’t build a house without first clearing and flattening the space to lay a foundation (unless you are Boxabl… PS: If anyone at Boxabl reads this, we want to talk to you). Want to know a bit more about the three product development processes mentioned above? We’ve got you covered.

Agile product development

This approach to the product development process is commonly used by software developers because it helps bring product launches to life quicker because they can add features as they go. They build a minimum viable product and then upgrade it. The approach will normally work like this for each feature: 

1. Gather information
2. Design
3. Build
4. Test
5. Review
6. Launch

Check out ProductPlan’s article on agile product management.

Lean product development

You might also consider lean product development, which is focused on the end product over features. It also takes into consideration the lifetime cost of use when developing the product.  Check out John Drogosz’s comparison of these strategies. It’s a free mini course on the product development process in agile and lean methodologies. It also discusses the waterfall method which we’ll discuss next.

Waterfall product development

If your business is focused on non-technology products and services, this method of product development will be used for many products created. It will normally follow some or all of these steps:

1. Idea generation: In this phase the product development team is looking for product ideas that will fulfill customer needs. If you don’t have a team, you can throw around product ideas with your friends, mentor, or hire advisors.
2. Idea screening: This part of the product development process refers to eliminating ideas that your company cannot reasonably implement. For instance, if you need a billion dollars, you probably need to nix the idea. Lack of skills or the time to market might be other reasons to abandon a project, especially when 41% of projects fail to meet their deadlines. User feedback and market research surveys are ways to find out if potential customers would buy the product concept. This is the point when it is least costly to eliminate product ideas.
3. Concept development: This is the latest you want to get the customer involved. You’ll want to pursue user feedback, market research surveys, or other means of establishing whether potential customers would buy the product concept. This is the point when it is least costly to eliminate product ideas. This can be as inexpensive as printing a t-shirt and wearing it.
4. Market strategy: You’ll want to identify the product marketing strategy during this product development phase. You’ll want to consider the four P’s of marketing: product, price, promotion and place.
5. Business case analysis: In earlier stages of new product development, you were focused on if they would buy the idea. Now you are trying to figure out whether the idea is worth the cost of business resources and time that will be expended.
6. Technical design: This part of the product development cycle is focused on turning the prototype into a functioning sellable product.
7. Product roadmap: I would typically want a product roadmap created much earlier because getting operations, marketing, finance, and production involved this late in the game will hinder the ability of other departments to really impact the concept development.
8. Test marketing: You’ll want to do more market research to validate the entire product, including the packaging, advertising, and distribution. You’ll perform test marketing by presenting the final product to the target market and gathering input. Given the cost of market release, you want to make sure the product and its packaging are acceptable before you start paying for mass production, a marketing campaign, and shipping.
9. Product launch: This is the market introduction to the product. You’ll be making the target market aware of your offering and start to develop market share based on how well you meet the market needs. 

As you can imagine, this process has the ability to lead to major losses if the target market rejects the product. That’s why most major companies begin market testing very early in the process and have started agile approaches.

You don’t have to follow a development process to be successful

Shed Defender is a product that Casey Walter created because: [su_quote]I got tired of my friends complaining about my Saint Bernard shedding. People used to laugh at me when I created a onesie for a dog, but it didn’t stop me.[/su_quote] The first product was sewn by his mom. Then he paid a seamstress to hand sew a few a week. Then he had a viral video that required buying fabric and sourcing, which required a $30,000 loan. So he had virtually no money invested through the prototyping phase. Now he makes millions a year. [su_youtube url="https://youtu.be/XTiks_VFTMo"]

Product Development Frameworks 

These are the systems and concepts that are in place to meet the goals. These may be dictated or controlled by senior management, governmental organizations, or organizational bodies. The International Organization of Standards (ISO) provides a variety of frameworks that are internationally accepted as best practices including:

• Quality Control: ISO 9000 
• Cybersecurity: ISO/IEC 27001
• Occupational Health and Safety: ISO 45000

I’d suggest familiarizing yourself with them or looking for contractors who specifically have product management experience utilizing these codes. They also specify the standards for how time and date are displayed. You’d be surprised how detailed some of the requirements are. 

What Is Product Development Strategy?

Product strategy planning is similar to creating a business plan, but the product strategy accounts for changes better. A product development strategy provides a plan or framework about:

• How to find opportunities to build your product line.
• How to decide which opportunities are good ideas.
• How to build upon the opportunities.
• How to spread word about the new products.
• How to monetize the new products.

Check out the Craft.io product strategy template to build a better product development strategy.

Product Portfolio Strategies

Companies may use a combination of proactive and reactive strategies to build a product portfolio development. You might want to consider some of the following strategies and make a plan for how to decide which works best in different scenarios.

How to create products

Many business owners may not want to go through the new product development process, at least not as it is formally performed. They’ll often use a crowdfunding platform like Indiegogo or Kickstarter to get initial feedback, concept testing, and funding before the final product is even created (sometimes before it’s even started). Using these platforms is a great way to:

• Gauge interest
• Connect with prospective customers
• Perform feasibility analysis 

In fact, we interviewed Jason who is a product development engineer that started Pooch Selfie with less than $8,000 of his own money. He told us: [su_quote]I created a prototype and put it on Kickstarter. I got crickets for about a week. Then Buzzfeed put a story out there and my Kickstarter just exploded. Three days later, I had raised $40,000 on Kickstarter.[/su_quote] Check out our interview with him below: [su_youtube url="https://youtu.be/j7UzP5dVOqA"] We also feature him in our manufacturing blog.

What is the product development process?

While there are numerous methodologies that the product development process may include, they all have the same basic steps:

1. Brainstorm ideas.
2. Evaluate the feasibility of the product idea.
3. Turn the idea into a set of specifications.
4. Create a minimum viable product.
5. Gather input.
6. Bring the product to market.

What is the first step in the new product development process?

The product development process starts with idea generation. This is simply looking for new ways to serve your customers better. Idea generation can come from sources like:

• Customer feedback
• Sales team observations
• Marketing team suggestions
• Design team limitations
• Proposed business model
• Distribution strategy
• Feature requests
• Competitor advancements in the field
• Other industries that have advancements
• New technology that allows you to create lighter more efficient products
• Science fiction movies (I’m still waiting on a replicator from Star Trek. I hope it works better than the one below, though.)

[su_youtube url="https://youtu.be/zjVKosnKJVg"]

In product development, what are the specifications?

Specifications are the requirements that a product development team needs to meet for the product to be considered a success. These are normally communicated in a product specification sheet. Depending on the industry standards, these may take on a variety of forms, but they will normally answer the following questions:

1. What problem are you trying to solve with the project concept?
2. Who will be using the product?
3. What are the high-level processes the product development team needs to follow?
4. What features does the product development need to include?
5. What limitations should the product team take into consideration? Finances? Brand guidelines? The margin of error? Pricing points? Timeline? 
6. How will it work within existing product lines? Does it need to integrate with existing products? Does it need new equipment to create?
7. Do you have the supply chain to create the finished product?

Let’s look at some of the common specifications used by different industries in the product development process.

What is product development in fashion?

The product development process in the fashion industry will normally follow a process similar to the one below:

1. Draw, design on a computer, or find photos that show the inspiration for what you want the product to look like.
2. Find materials you want to use. 
3. Find a seamstress to help you create a prototype.
4. Adjust the prototype to fit properly based on your target customer.
5. Create cut sheets and tech packs. 
6. Source and manufacture in bulk.

Tech packs include a front and back picture of the item, color specifications, special design considerations, zipper standards, embroidery or print standards, measurements for each size, and how to use the measurements. 

Software Specifications

Software specifications have a very different set of requirements than fashion and physical products. With software you have two major aspects that need to be specified: user experience (UX) and workflows (what goes on behind the scenes). The product development process for these will normally follow a process that look similar to this:

1. Requirements analysis: What are the end user goals? How will they use the software? Does the software need to work offline on mobile devices? How fast does it need to be (200 ms is considered perfect from a speed standpoint).
2. Create specifications for a minimum viable product.
3. Create wireframes or a prototype to show what the user will experience once the software is complete. These are just graphical representations. They aren’t fully functional. 
4. Upon approval of the prototype, start building the backend and optimizing the software for performance.
5. Deploy to beta testers.
6. Fix major defects.
7. Release to target market.
8. Provide technical support.
9. Add new features and improvements.

If this process sounds familiar, it’s used with every major tech company you interact with. There may be some variations, but the process is basically the same. The most important thing to understand about the software product development process is that it consistently uses scrum, lean, or agile methodologies where the end users are actively involved in the entire process. Smartsheet offers a good free product software development spec sheet.

How can a company's salespeople help with product development?

Your salespeople, customer service representatives, and marketing team should be an instrumental part of the product development process because: [su_note note_color="#dbeafc"]

• The sales team is customer-facing, while you might be more focused on the management of the company, employees, and financials. 
• Good employees are a great source of idea generation because they know what the customers ask them. 
• They know what challenges they currently have supporting existing products.
• Salespeople can help find external beta testers.
• They’ll spread the word as the product development project approaches a finished product.
• Sales team involvement will create a better overall product launch because the marketing strategy, sales strategy, and pricing are discussed earlier.
• Your team will be able to make a better business case to your target audience.
• They can warn you when you are about to invest thousands or millions in a product that won’t meet users needs.

[/su_note]

What is the product development life cycle?

The product development lifecycle is a representation of the phases that a product goes through from development to retirement. Every product will undergo six phases:

1. Product development
2. Product launch
3. Increased adoption
4. Peak market share
5. Declining demand
6. Retirement

During each of these phases, each part of your business will need different strategies. The timeline for each product will be different, but the product life cycle will require actions similar to the table below. [su_table responsive="yes" alternate="no" fixed="yes"]

	Product Development	Product Launch	Increased Adoption	Peak Market Share	Declining Demand	Retirement
Product Development	Creating product	Improving product	Improving product	Maintaining product and starting new product design	Maintaining product	Discontinue service
Sales	Giving input, learning about features, and which are most important	Educating customers, focusing on early adopters	Answering customers' questions, providing more in-depth detail for more hesitant customers, implementing best practices from prior sales	People ask for the product by name, upselling more	People still ask for the product by name, upselling more, less frequent purchases, higher discounts	Do not actively sell; if asked for, let people know that support is discontinued, suggest alternatives
Marketing	Giving input, market research, designing launch campaign	Educating customers, focusing on early adopters, monitoring results	Campaigns focused on customer results, continue monitoring results, optimizing	Keep the product fresh in people's minds, monitor for signs of declining demand	Campaigns for sales and upgraded models, lower product marketing budget, focus on newer products	No marketing budget
Finance	Controlling Budget and Payments	Comparing revenue and expenses, increasing budget to marketing as performance Increases	Continue monitoring and increasing investment based on performance	Continue monitoring and increasing investment based on performance, decrease marketing budget	Try to keep margins similar with decreased volume, adjust product budget routinely	Summarize the lifetime return on the product for future reference
Inventory	Providing input, receiving original stock	Delivering product, reordering inventory	Delivering product, reordering inventory more frequently	Delivering products, monitor shifts in demand carefully to adjust orders	Reduce size and frequency of orders	No more orders, sell remaining at deep discount
Customer Service	Providing input	Providing customer support	Provide customer support, should have more detailed FAQ and scripts	Everything should be standard operating procedures by now	Continue supporting the product, when you know the discontinuation date make sure to remind people and suggest upgrades	Continue providing the FAQs under discontinued products, but no manpower behind it

[/su_table]

What are the 5 stages of product development?

The five stages of product development are:

1. Idea generation
2. Product idea screening
3. Concept development
4. Product development
5. Monetization

We should go over some variations that development teams might consider during different development processes.

What are the steps of internal product development?

Internal product development is focused on creating a product for your team to use. Normally, this is software or products that will help you do your job easier. The second and third steps of product development are most important to focus on:

1. Idea generation: Start by defining the problem(s) you are trying to solve. You’ll want input from all employees who will be impacted.
2. Product idea screening: Does the idea solve the problem? What new problems could it create? Is it cost-effective? Which appears to be the best solution?
3. Concept development: Here you’ll want to focus on evaluating the best ideas further and answer the following questions: Do you have the ability to implement the idea in-house or will you need to hire subcontractors? Is the current work creating the expected results? Should alterations be made?
4. Product development: Does the solution work effectively? How are you going to train the team on the product? What bugs need to be fixed?

There should be considerable focus on the idea screening and product concept in the early stages. The product manager should perform a business analysis to verify that this product strategy will work within the organization. The product team might lack necessary skills that would hinder the success of the product’s entire journey. This can lead to costly hiring and delay the product vision in competitive markets.

What are the steps of external product development?

External product development is focused on finding a proposed solution for customers. The phases here are similar to internal product development, but have some key differences: [su_note note_color="#dbeafc"]

1. Idea generation: Use customer feedback, surveys, and analytics to find ideas. 
2. Product idea screening: Establish whether the idea makes sense by presenting it to customers before spending a lot of money.
3. Concept development: Improve the idea using customer feedback.
4. Product development: Build the product and gather information on whether it solves the customers' problem.
5. Monetize: Marketing should kick into high gear. Start monitoring customer feedback as more people buy the product.

[/su_note]

What are the steps of concurrent product development?

Concurrent product development is simply another strategy like lean, agile, or scrum. Product managers will conduct a team that includes design, developers, accountants, marketers, and manufacturing from the start. The process will look something like below: [su_note note_color="#dbeafc"]

• Business owner has an initial concept to serve a target audience.
• Employees from all departments ask questions to evaluate the product concept.
• Each department works on their pieces in parallel and shares with others frequently.
• By the time the new product is ready for manufacturing, the team is ready to launch.

[/su_note] This process can potentially reduce the time and money spent during each stage of new product development dramatically, but it is more complicated for the product manager because there are more moving parts in the process.

An engineer who needs to manage new product development might use what type of software?

The Product Manager, a site that produces blogs and podcasts about product management, ranks the 10 best product management tools as:

1. Planview: This software is supposedly phenomenal for enterprise-level organizations. (I have not tested it, though.)
2. Monday.com: UpFlip and Monday.com have a partnership, and we consider Monday the best overall CRM and project management tool. You will definitely want to work with their support because many of their features are complex. 
3. Craft.io: This program has two 5-star reviews on Trustpilot, and they say it is easier to use than Aha or ProductPlan. Check out the Craft.io site for more information. This software is particularly good when you need help prioritizing features.
4. Walling: This software for product development is most helpful for visualization with mood boards and easily viewing inspirational ideas to understand better what people are thinking. It has a 4.5 to 5-star rating on different review sites. People seem to like it, but we haven’t tested it.
5. ProductPlan: This software was built by a long-time product manager who found existing product development software lacking. It’s built with successful products in mind, but the only Trustpilot review says that half of the software is intuitive and the other half overcomplicated.
6. ProductBoard: This software is built for customers to be highly involved in the process. It seems to do well and has 4.3 to 4.7- star reviews on different sites. I might test ProductBoard because there’s a software product I want to create.
7. ProdPad: If you want software with AI for business analysis built-in, this is probably the product life cycle software for you. It helps identify easy wins and resource-wasting ideas to make your development team more efficient.
8. Dragonboat: This product development software is focused on making it easier to manage your organizational performance regarding objectives and key results (OKRs). Dragonboat makes it easy for you to see where you are in the product roadmap and how it connects to the OKRs.
9. ClickUp: We use ClickUp at UpFlip to manage our content. It has a product management template that I set up to check out. It’s fairly basic but covers everything you need from an operational aspect during the design process. Check out more useful ClickUp templates.
10. Airfocus: The Airfocus platform is a newcomer that seems to be receiving a lot of recognition for how it functions. It has four 5-star reviews on Trustpilot and focuses on product roadmap prioritization and presentation.

Other useful software you might want

Small business owners might also want to use software like:

• Canva: Easy software for graphic design and social media marketing. I spent 66 hours using Canva for 180 designs in one year. It works for business cards and t-shirts, too.
• Autodesk Software: Autodesk is a leader in engineering software. You can use their inventor suite to design products, but it’s pricey.
• Google Forms: Use these to gather initial feedback and responses as you test marketing. They have just enough functionality for the product manager to evaluate the results quickly and are included if you use a Google business email. 
• Upwork or Fiverr: Both Upwork and Fiverr are great places to hire freelancers to help accomplish your goals without hiring product development companies. You can hire a top rated product development manager or hire a freelancer for just one aspect of the process. 

What is your experience with product development?

We’ve provided you with product development examples, development framework resources, different approaches to product development management, and software you can use during the phases of product development. The new product development stages are a complex mix of a lot of skills. You should consider hiring people with product design and development experience to help you succeed faster.  Have you created a product before? What challenges did you face? What would you do differently now?

Did you know Airbnb has a gross booking value of nearly $70 billion per year, and it’s growing at nearly 20% annually? If that doesn’t make you wonder how to start an Airbnb business, I’m not sure what will.  Sid and Eva started Nicasa in 2009, and today their 22 vacation rental properties make nearly $3 million annually. They shared their strategies for providing short-term rentals to business travelers and people on vacation. We’ll show you how these vacation rental owners make people feel like they have come to their second home.  [su_note note_color="#dbeafc"] You’ll learn:

• What is Airbnb?
• What is an Airbnb Host?
• How to Start an Airbnb Business
• Airbnb How to Host FAQ
• Which Approach Will You Take to Airbnb For Business?

Click any of the links above to jump ahead.[/su_note] (Wondering where we got the stats from the intro? Check out Airbnb Financials.)

What is Airbnb?

Airbnb is a short-term vacation rental platform that makes money by helping homeowners rent their properties. Airbnb takes a percentage for acting as the intermediary between the Airbnb host and the short-term renters.

What is an Airbnb Host?

An Airbnb host is someone who lists their home, rental property, or Airbnb experience on Airbnb. Airbnb hosting can be a great way to make extra income or start an Airbnb host business in your area.  We’ll answer some questions about successful Airbnb hosting next.

How Much Does An Airbnb Host Make?

Airbnb owners have an average Airbnb income of approximately $20,400. We calculated this number based on the Gross Booking Volume in Airbnb’s quarterly reports and the reported four million hosts. This number includes people who rent rooms and in other countries.  All of the Airbnb owners we have talked to at UpFlip report much higher revenue because they typically:

1. Own more than one rental property.
2. Aim for 70 to 85% occupancy.
3. Optimize their rates based on demand.

Sid and Eva told us: [su_quote]Each property makes $10,000 to $30,000 per month, and we take 25% management fees. Cost of goods sold is 35%, and SG&A is 35%.[/su_quote] Find out more about how to start an Airbnb business from Sid and Eva. [su_youtube url="https://www.youtube.com/watch?v=6m-MosXlpOE"]

How Much Does It Cost To Start An Airbnb Business?

The average price to start an Airbnb business is commonly $3,000 to $6,000 dollars to cover the cost of the following:

1. A down payment
2. Furniture
3. Licensing

The costs can be higher or lower depending on the value of the house, the number of rooms, and your location.

How to Become an Airbnb Host

Airbnb recommends the following process for people wondering how to be an Airbnb host:

1. Assess and prepare your property
2. Create an Airbnb listing
3. Adjust your Airbnb listing setting and rules
4. Input your pricing and Airbnb payout method

Read more about how to become a host for Airbnb. We’ll provide a ton of Airbnb Host tips, but find out Airbnb hosting fees first.

How Much Does Airbnb Take?

Most Airbnb host fees are 3%. The Airbnb fees for host businesses are charged on: There are some exceptions, though.

How much does Airbnb charge hosts that are exceptions to the 3% fee?

Airbnb hosts may have scenarios where they are charged more than 3%. If Airbnb hosts operate in any of the following conditions, you will have additional fees:

• Hotels
• Airbnbs in Italy
• Apartments with service staff
• Hosts through external software providers
• Strict cancellation policies

In most scenarios, you’ll pay the guest fee of 14 to 16%. 

Do You Have Any Airbnb Hosting Tips?

First, review the Airbnb Hosting Guide to get Airbnb tips for hosts.  Sid and Eva explained there are three main skills you need to develop to become a successful Airbnb business:

1. Sales Skills: Learn to talk to high-value customers and investors. Giving How to Win Friends and Influence People a read is a good start.
2. Business Skills: Learn how to measure and manage margins and customer acquisition costs. For tips, read Zero to One by Peter Thiel.
3. Managing People: Sid told us this one is normally the hardest. It is constantly evolving.

Here are links to Sid and Eva’s book recommendations:

• Zero to One by Peter Thiel
• How to Win Friends and Influence People by Dale Carnegie

How to Start an Airbnb Business

There is plenty to do when you start an Airbnb business. Here’s an overview:

1. Research Vacation Rental Laws
2. Choose How To Make Money With Airbnb
3. Find Airbnb Property
4. Form An Airbnb Business Entity
5. Register Your Airbnb Business
6. Open a Business Bank Account
7. Set up Airbnb Accounting Systems
8. Get Airbnb Business Permits and Inspections
9. Insure Your Airbnbs
10. Learn How to List on Airbnb
11. Set Airbnb Price for Vacation Rentals
12. Market Your Airbnb Property Management Company
13. Provide Stellar Customer Service

We’ll go through the list step by step. Get ready to learn how to start an Airbnb business.

Step 1. Research The Vacation Rental Market

Every location has different vacation rental laws, sales tax requirements, and business licensing requirements. You’ll want to understand the area’s Airbnb rental rules.  Airbnb businesses are often subject to zoning ordinances, homeowners association rules, and other laws. Some of the most common laws include:

• Airbnb properties must be inspected by the fire department.
• Small business owner must live in the residence.
• Airbnb businesses must carry business insurance and get a business license.
• No short term rentals in HOAs.
• Must have an in-town 24/7 support person.

It can be quite costly if you try to skirt these rules. Make sure you understand the local laws.  You’ll also want to do market research on the business opportunity.

Research the Airbnb Market in Your Area

A successful business needs Airbnb guests. You’ll want to know: Eva gave us an example of seasonality in Seattle: [su_quote]In Seattle, it rains most of the year. During the summer when there is more sun, there’s more demand, and prices can be twice as high.[/su_quote] Next, let’s discuss how to make money on Airbnb.

Step 2. Choose How To Make Money With Airbnb

There are a lot of ways to make money on Airbnb. You might consider:

1. Owning an Airbnb
2. Renting a room on Airbnb
3. Becoming an Airbnb co-host
4. Creating an Airbnb Host Experience
5. Rental arbitrage
6. Providing services to Airbnb owners

Curious to learn more about alternatives to owning a property for Airbnb? Check out our FAQs at the end of this article. For now, we’ll stick to the first option in the list. Let’s keep looking at the process for owning an Airbnb.

Step 3. Find Airbnb Property

You’ll want to consider the following characteristics when you choose an Airbnb site.

• Location: You need an area with tourism, away from noisy areas like airports, and outside of HOAs. Keep your properties close together if you own multiple Airbnbs. Sid also warned that the risk is lower with Airbnb properties near you because you don’t need a property manager.
• Profitability: Airbnb rentals will have expenses. You’ll need to establish whether is Airbnb profitable at the property. If it’s not three times as much as the mortgage payment, it probably won’t be. Sid told us that you should furnish all your houses with the same products so they are all interchangeable.
• Desirable Qualities: Your Airbnb venture will be more successful if it has good qualities for your demographic. This may be a pool, a movie theater, lots of restaurants nearby, daily cleaning services, or other benefits.

Sid and Eva showed us a movie theater in one of their short-term rental properties. They told us: [su_quote]This property is so popular that locals rent it for the Super Bowl.[/su_quote]

Step 4. Form An Airbnb Business Entity

You’ll want to create a separate legal business entity to protect your personal assets from potential lawsuits. A legal entity is a business structure like an LLC or Corporation that will provide financial protection.  Unless you hire a lawyer to assist you, this step should be less than $1,000. Learn more about creating an LLC through the Secretary of State. 

Step 5. Register Your Airbnb Business

You’ll need to collect sales tax and comply with local laws like business licensing. Airbnb will collect sales tax in most locations, but there are some places that doesn’t work. You can find more information here.  Each state is different, but you can find out the proper licensing and tax permits from the local SBA office.

Step 6. Open a Business Bank Account

You’ll need a business bank account when you have a small business registered as an LLC or a corporation. This will help you save money and manage your recurring costs better. You’ll also want to have all your Airbnb earnings go into this account and then pay yourself a salary. You can consider any startup costs that come out of personal funds as business loans so that you can have them returned tax-free, unless you charge the business interest. Just make sure you consult a tax attorney to structure these correctly. It’s normally best to get a bank account with a local bank or credit union because they typically have higher approvals on business loans. That will come in handy when you’re ready to start managing multiple Airbnb properties. Check out our blog about business bank accounts. Keep reading for information on accounting for your own Airbnb business.

Step 7. Set up Airbnb Accounting Systems

You’ll want to have an accounting system that you use to track all your income and expenses, including:

• Airbnb revenue
• Property repairs
• Cleaning costs 
• Mortgage interest and payments
• Other ongoing expenses

You’ll need to deduct expenses from your short-term rental income to calculate your profit and cash flow to pay your federal income tax.  Sid told us that a property owner renting their primary residence will normally cover the costs of the home and might have additional positive cash flow. Meanwhile, here’s what he had to say about managing multiple properties: [su_quote]We normally make about 30% profit margin on short-term rental. Your new business should break even at around 50% occupancy.[/su_quote] Sid recommended Hospitable software for managing your Airbnb bookkeeping. You can connect Hospitable to Zapier to automate other functions like uploading to Quickbooks.  These programs will help you keep up with your cash flow, listing price, occupancy, check-in process, and customer satisfaction as well. At the end of the year, you’ll need to file your federal tax return, so it’s better to estimate these figures before you take a down payment or security deposit for your rental space.

Step 8. Get Airbnb Business Permits and Inspections

You should have already done the research on how to start an Airbnb in your location. Now you’ll need to comply with all the Airbnb rules for hosting.  Many cities have special business permits that an Airbnb owner is required to have.  Some of them may be fairly complex. For instance, If you were wondering how to start an Airbnb in Las Vegas, you would need to: In addition, you’ll need to pay the following for each property:  Next we’ll provide the information on starting an Airbnb in specific states.

How To Start An Airbnb In Texas

Starting an Airbnb in Texas is pretty easy. Texas has no restrictions on Airbnb and prohibits cities from making laws preventing short-term rental properties. Despite that, you need to:

1. Register with the Texas Comptroller.
2. Pay local lodging tax and hotel occupancy tax.
3. Comply with local requirements, especially if you live in Austin, Fort Worth, Galveston, Houston, and San Antonio.

Read more about Texas Airbnb requirements.

How To Start An Airbnb In Florida

Starting an Airbnb in Florida requires:

1. Registering with Florida DBPR.
2. Paying state taxes. Learn more from Airbnb’s site.
3. Complying with local regulations.

Now you know how to start an Airbnb business in Florida.  Next, let’s look at Georgia laws about Airbnb.

How To Start An Airbnb In Georgia

Georgia does not have Airbnb rental laws in place at the state level, but some cities including Atlanta do.

How To Start An Airbnb In California

The State of California expects you to register and pay for the Transient Occupancy Tax (TOT) and comply with normal business laws, but each city has its own requirements.  You can apply for your LLC and the TOT on Bizfile. It will also direct you to the other appropriate websites to complete your registration process.

Step 9. Insure Your Airbnbs

When considering how to start a Airbnb business, you might not think about insurance requirements.  Fortunately, AirCare for Hosts provides insurance, but if you have Airbnb sales, you may want your own insurance as well.  Simply Business offers insurance for property management companies which you might want to consider if you manage the properties or co-host Airbnb units.

Step 10. Set Up Property for Vacation Rentals

This is probably the most crucial part of how to start Airbnb business operations. Sid told us you’ll want to:

1. Purchase nice but cost-effective decor.
2. Get blackout blinds.
3. Buy intuitive bathroom fixtures.
4. Install a security system.
5. Take high-quality photos.

Christopher Mondragon is an Airbnb co-hosting cleaner, and we worked together to create this checklist for an Airbnb co-host. It will help you with most of what you need for preparing an Airbnb.  Check out our interview with Chris below to learn how to start an Airbnb cleaning business. [su_youtube url="https://www.youtube.com/watch?v=YcYIYdqegGA"]

Step 11. How to List on Airbnb

You’ll need to go to the Airbnb sign-in page to list a property on Airbnb. Once you sign in, you’ll go to a page that looks like the one below if you’re a first-time Airbnb host.  Then, you’ll answer their questions about the location, amenities, and add some pictures. The more pictures the better.  The sign-up is pretty simple to follow, so I’m not going to go into detail on each step.

Step 12. Market Your Airbnb Property Management Company

Marketing is another critical piece of how to start an Airbnb LLC. Sid told us you’ll want to:

1. Create a business website.
2. Create custom Google Maps and embed the locations on your website.
3. Create Yelp business pages.
4. Focus on Search Engine Optimization.
5. Share on social media platforms.

Sid also explained: [su_quote]Google search is by far the biggest market share, so focus on it, but don’t ignore Bing. Some keywords that do well for me include “Seattle Airbnb Management” and “Seattle Vacation Rental Management Company."[/su_quote] (Make sure to replace Seattle with your location.)

Step 13. Provide Stellar Customer Service

A successful Airbnb business host should always remember they are in hospitality. Sid told us: [su_quote]You’re not a rental company; you’re a customer service company.[/su_quote] Great customer service covers numerous aspects. From the first time they contact you to when the customer leaves, every experience will impact their view of your Airbnb listing.  Sid provided the following advice for those who want to start an Airbnb business. 

The Booking Process

Sid told us during booking you need to make it attractive for customers. That means:

Manage Property or Airbnb Co-Hosting?

The ongoing maintenance of Airbnbs is a part of the business many hosts don’t think about until it’s too late. Managing an Airbnb can be a full-time job, especially if you run more than one Airbnb. The alternative is to work with a co-host or an Airbnb management company.  Here are some of the tips Sid shared from his experience:

1. Provide every cleaner with a cleaning checklist that lists commonly missed tasks.
2. Perform monthly, quarterly, and annual maintenance.

Managing the Team

You’ll need employees and subcontractors if you want to know how to start an Airbnb management company.  Sid has 25-30 employees and subcontractors working in cleaning and property management. He had some suggestions about managing the business structure. He told us: [su_quote]I think what really makes me different is that the thing I spend the most time doing is training people.[/su_quote] He offered the following pointers:

1. Host a Friday lunch and coaching meetings for all staff and subcontractors. Include investors if they desire.
2. Pay above-market rates.
3. Provide bonuses for 5-star reviews.
4. Most Importantly: Help employees grow in their careers or personally. Loyalty makes better employees. He’s even helped with the down payment on a house to help an employee have a more stable cost of living. 

Sid also told us he finds reliable cleaners on Turno (formerly Turnover BNB), Craigslist, and Indeed.

Airbnb How to Host FAQ

Now we'll answer some of the most frequently asked questions about Airbnb hosting.

How To Start An Airbnb Without Owning Property

There are multiple ways to start an Airbnb business with no property. Some of the best ways are:

1. Start an Airbnb cleaning business.
2. Perform rental arbitrage, which is renting a space and then renting it as an Airbnb and making a profit on the difference.
3. Become an Airbnb Experiences host and take people sightseeing or teach them new skills.
4. Start an Airbnb property management company and co-host for other Airbnb owners.

Now that you know how to start an Airbnb business without owning a house, let’s look at how to start an Airbnb with no money.

How To Start An Airbnb Business With No Money

There are a few ways that you can start an Airbnb without money. You can:

1. Rent rooms in your home. 
2. Become an Experience host. 
3. Save some money first.
4. Attempt to get hard money loans.
5. Look for houses where you can claim squatter’s rights.

How Does Airbnb Make Money?

How Airbnbs make money is by charging between 14% to 16% on top of the Airbnb host pricing. The guests pay most of this, but the Airbnb hosts pay 3% normally.

How Old Do You Have To Be To Get An Airbnb?

Airbnb requires both hosts and guests that create a member account to be over the age of 18.  Make sure to follow all housing laws and be disclosive when you create your listing. If there are things in your home that could hurt an infant, warn people. If the neighborhood is really quiet, let people know. You can use warnings like this to discourage tenants who wouldn’t be a good fit.  Make sure to read the Airbnb “Become a Host” guide here. We’ve tried to include as much of the information as possible, but there’s a whole lot more to learn. 

Can I Airbnb My Apartment?

Probably not. Most apartments have rules against subletting. Some locations don’t allow people to use apartments as short-term rentals, plus apartments are notorious for having policies that could earn bad ratings for your Airbnb.  If you really want to try this, research the laws and the consequences for violations, then do so at your own risk.

Which Approach Will You Take to Airbnb For Business?

Now you’ve got a better understanding of how to get started with an Airbnb business.  There are a ton of options to make a living from Airbnb. It’s up to you to choose which Airbnb business strategy is best for you.  Which Airbnb business will you pursue?

Have you ever bought a sandwich or a taco from a food truck and thought, “I wish I could quit my job and start a food truck for a living!” Then you've come to the right place! We interviewed food truck owners Nic and Jada Jones to learn how they run Hen House, a food truck modeled after the farm-to-table style. Jada and Nic started Hen House in Nashville, Tennessee, and shared insights on how to make $300K in your first year as a food truck business. [su_note note_color="#dbeafc"] We’ll share the lessons learned from these food truck owners to guide you through how to start a food truck business. Click on any step below to learn more about food truck operations.

• How to Start a Food Truck Business
  • Step #1. Learn about the food truck industry
  • Step #2. Generate food truck ideas
  • Step #3. How much does it cost to start a food truck business?
  • Step #4. Figure business operating costs
  • Step #5. Write a food truck business plan
  • Step #6. Determine financing options
  • Step #7. Obtain licenses and permits
  • Step #8. Buy your truck
  • Step #9. Secure your suppliers
  • Step #10. Streamline the process
  • Step #11: Build your food truck business/brand
• Are you ready to start a food truck business?

[/su_note]

How to Start a Food Truck Business

Starting a food truck business is as simple as following these eleven steps: 

1. Learn About the Food Truck Industry
2. Choose Your Food Truck Concept
3. Estimate Food Truck Startup Costs
4. Plan for Business Operating Costs
5. Write a Food Truck Business Plan
6. Get Food Truck Financing
7. Obtain Licenses and Permits
8. Buy Your Truck
9. Purchase a POS System
10. Streamline the Process
11. Build Your Food Truck Business/Brand

Nic had been a cook his whole life before moving to Nashville with Jada and starting their food trucking business. They knew they wanted to start a food truck business and decided to seek a unique food truck concept while they were moving. They told us: [su_quote]One of our goals when we started a food truck business was to help local businesses.[/su_quote] Hear about how to start a food truck business directly from Nic and Jada below. [su_youtube url="https://www.youtube.com/watch?v=2gKgHdQ4_aM"] If you are ready to learn how to start a food truck business, keep reading! You’ll get your food truck business up-and-running, feeding people and bringing in a profit in a fairly short amount of time.

Step #1. Learn about the food truck industry

According to IBIS World, the food truck industry makes $1.5 billion per year with a median profit of 6.4%. Food trucks are expected to see industry revenue growth of 1.2% per year between now and 2028.  There’s a lot of competition, though. There are over 36,000 food truck businesses and 2,000 new people are starting a food truck business every year.

How much do food trucks make a year?

Over the past decade, food trucks have become a viable, reputable business option far beyond the tired pretzel or questionable hot dog vendor. The average food truck makes $41,295.  Don’t assume you can’t make more. We’ve interviewed five food truck owners, and each business owner makes more than $300K per year.  Check out our interview with the most successful food truck owner, Carlo Chalisea, who built his food truck business from a taco truck to a brick-and-mortar location and multiple local food trucks. [su_youtube url="https://www.youtube.com/watch?v=8MPTE67PYcY"] Next, find out if starting a food truck business is profitable.

Are food trucks profitable?

Many food truck owners are making peanuts, but a great food truck idea can make great money. Nic told us: [su_quote]Our food truck makes $20K-30K per month depending on the catering and seasonal fluctuations. The expenses break down to: 

• Food: 30%
• Labor: 25%
• Overhead: 25%
• Profit: 20%[/su_quote]

That means they make about $60K profit after deducting all the business expenses. Given the business owners are working in their business, they pay themselves an undisclosed wage, too. Assuming they pay themselves the average for a food service worker, that means they are making about $30K each, according to the Bureau of Labor Statistics. Think working with your spouse and making a combined $120K sounds good? Keep reading to learn more about becoming a food truck owner.

Step #2. Generate food truck ideas

You might wonder, “What is the best food to serve in a food truck?” You should look for the intersection between what you’re good at cooking and what the area needs. According to other food truck operators, those choosing which food to serve for their food truck should heed this advice: do one thing and do it well. Make it a quality product and keep it very, very simple.

How do I price my food truck menu?

One of the key things to research about how to start a food truck is the menu pricing. Pricing menu items can be tricky. Charging too little causes losses, while charging too much means no one will buy from you. Food costs should stay under 35% of the revenue for successful food trucks. The most commonly used pricing method for food trucks is based on the food cost percentage formula.  The formula can be worked in two ways:

1. Actual Food Cost / Food Cost Percentage=Customer Price
2. (Choose a Value between 3.33 and 5) x Actual Food Costs=Customer Price

Nic told us: [su_quote]I prefer to stay under 30%.[/su_quote]

Step #3. How much does it cost to start a food truck business?

Expect to spend between $15K and $250K to purchase a food truck and start the business. Nic told us starting a food truck business required spending: The good news is that buying a food truck normally requires less than 20% down. That means starting a food truck company can get started for $57K instead of $250K+. You can also rent a food truck, which we’ll discuss in a separate blog. Food trucks have some additional costs, which we’ll discuss next.

Other startup costs

Other startup costs for a food truck may include: Kyle, the owner of Vet Chef, bought a food trailer and custom designed his kitchen, which required adding in $8000 for equipment,  another $7000 for truck permits/inventory, and various other costs. All in all, it came to just over $40K. Check out our interview with him below. [su_youtube url="https://www.youtube.com/watch?v=YCnE13BaQlk"]

Step #4. Figure business operating costs

To figure out if this will work for you and exactly how to start a food truck, it's vital to understand what your business will cost so that you know what kind of profit you can expect to make. As with any restaurant, expect your largest costs to be food, supplies, and labor. Other food truck financial projections for regular costs may include: Should I hire employees for my food truck business? While it's advisable to keep the staff small, it won't be long until you'll need another person or two on your team. If you have a business partner, this might be delayed since you can both commit your time to working in the food truck. Customers do expect fast delivery times from a food truck, so having staff will help you get those orders out efficiently and keep the wait times down. (Of course, you can only fit a limited number of employees in a truck at one time.) Keeping labor costs as low as possible is vital to profitability, but you can't do everything alone. Kyle notes that: [su_quote]You have to have employees, or you'll drive yourself into the ground. We hired my cousin, who was a high schooler then. We gave her a few hours, and we were able to only pay her for the time we were open. I cleaned and sent the employees home.[/su_quote] According to Kyle, it's best to hire part-time staff that are willing to work very short shifts on an ad-hoc basis at the food truck. High-school students, family members, and others who need just a few hours are often a great way to begin. Kyle also advises that, at least for the first year, it is important to make sure that you minimize what you need to pay employees for. Do all of the prep work and cleaning yourself until the business becomes more viable.

How much do food trucks make a year?

Over the past decade or more, food trucks have become a viable, reputable business option that has gone far beyond the tired pretzel or questionable hot dog vendor of long ago. In fact, food trucks have now become a $1.2 billion industry annually. Local profit figures vary greatly based on location, products offered, and other factors. However, according to IBISWorld, profit for a food truck may be around 7.7% of your entire revenue, after accounting for overhead costs and wages. That means a food truck making $400,000 in sales each year would pull in just over $30,000 in profit. So, you aren't necessarily going to get rich quick as a food truck entrepreneur. But with determination (and some hard work) you can make a decent living and own your own profitable business! Of course, all of this is after you break even in your business, which is when your business finally stops costing you money and becomes profitable. The Vet Chef reached this at around the one-year mark, which is fairly typical. You may need to plan for longer if your starting costs are high.

Step #5. Write a food truck business plan

One of the most important steps in how to start a food truck is a solid business plan. According to Business News Daily, two important purposes of a business plan are to establish focus and secure funding. Writing a business plan is a fairly detailed, time-consuming process, and you may want to access online business plan resources to help you with a template. A general run-down of what you'll need in your food truck business plan includes: After you’ve written a business plan, you’ll want to consider how to buy a food truck.

Step #6. Determine financing options

If you're one of those lucky people with tens of thousands of extra dollars lying around to start a business, that's great! But otherwise, you may need to figure out how to finance your food truck business until it provides more cash flow.

How to start a food truck business with no money

While it's great if you have some money upfront, it is possible to get business credit. Many food trucks start by using: The Small Business Association (SBA) Microloan Program makes available small loans of up to $50,000 (although the average loan is $13,000). Entrepreneurs may use this for supplies, startup costs, equipment, etc.  Instead of applying directly through the SBA, you'll need to find a non-profit intermediary to get you started with your food truck.

Step #7. Obtain licenses and permits

As with any business, you will need to make sure your food truck complies with all of the local government standards regarding permits and licenses. This is a very important step when you learn how to start a food truck. These may range from permission to run a business to food-handling certifications and will change based on state and local regulations. Similar to the advice of other food truck owners, Kyle's advice is that potential owners of food trucks should contact their local health department right away, and they'll know how to proceed from there. He says to expect approximately 6 months from the time you make your first contact until you can get up and running. Entrepreneur.com parallels Kyle's advice, noting that your local department of health should be first on your list of contacts and then go from there. Below is a general idea of what you might need, but, of course, it is necessary to find out exactly what is needed for starting a food truck in your particular location.

What licenses are needed to start a food truck?

Here are some commonly required licenses and permits for a food truck:

• Business License –This depends on the city/county/state where you work and is based on the type of service you provide, whether events, catering, etc. In addition to licensing fees, a percentage of the revenue may also go to the government agency, so be sure to factor this into your budget.
• Employer Identification Number – You need this in order to start legally paying employees, withholding taxes, etc.
• Business Permits – This is usually issued by local municipalities. These can change over time, so be sure to review this annually so you understand what is required in the way of food truck permits.
• Vehicle Licensing – Make sure the person driving the food truck is appropriately licensed and insured for that particular vehicle. Find out if you need a commercial driver's license in order to drive the food truck (this is often related to the size/length/weight of the truck.)
• Food Handler's Permit – This may require you and your employees to take a Food Safety Course. Often done online and fairly inexpensive, it may be necessary for truck owners and all employees to complete this in order to comply with food safety requirements.
• Health Department Permit – This differs between states but is typically similar to what a restaurant requires since, technically, your food truck is a restaurant on wheels.
• Fire Certificate – This requires a local fire department inspection. Your equipment must be safety certified, whether electric, propane, generator, etc. If you purchase your truck new and/or have it retrofitted, the vehicle supplier should already know these requirements and have it ready for this inspection.
• Parking Permits – If your food truck is invited to a festival or a private event, this shouldn't be an issue. But if you plan to simply park your food truck on the side of the road, you'll need to do your homework about local parking ordinances in your area.

Where should I park my food truck?

This is the beauty of a mobile food truck business! You can park it almost anywhere you are invited. Look for opportunities like local festivals, schools, neighborhood events, and more. Festivals can be some of the most profitable (and least profitable!) locations for the mobile food truck business. Kyle mentions that some festivals can be packed with customers, with 200 people standing in line. On the other hand, based on weather or other circumstances, they can also be dead and cause you and your food truck to take a financial loss. [su_quote]One festival, we served 900 people in a day. So we went back the next year and we had all this food ready for long lines of people—but they added 20-30 more food trucks and we were doing nothing.[/su_quote] Along the lines of locations, the Vet Chef truck has recently been invited to park at Boeing during their lunch breaks, which is like striking gold. This came after the business had built a good reputation and won the “Best of Western Washington” Award. But it took some building of the brand before these types of invitations started rolling in for Kyle and his food truck. In the beginning, he says, you just need to go wherever the people are and take the opportunities as they come. Eventually, once you gain a reputation, you can become choosy about which events you'll agree to, based on how profitable they will be for you.

Step #8. Buy your truck

Now comes the exciting (and perhaps a bit scary) part! Buying your truck and outfitting it for your needs is critical to the success of your food truck business.

What types of food trucks are there?

Essentially, you can choose from two styles of food trucks: drivable and pull-able. Drivable Food Trucks are licensed motor vehicles that can be driven from one place to another on their own. These are typically like a standard delivery truck, often retro-fitted to create a kitchen and serving window in the back. Trailers and Carts are other options for mobile food service that must be towed from one place to another by a separate vehicle. These are outfitted with cooking and refrigeration capabilities and everything needed to prepare and serve food. Food carts are smaller, whereas food trailers can be as large as an over-the-road semi.

Step #9. Secure your suppliers

While your food truck is in the midst of being purchased or retro-fitted, you should be making contact with the vendors and suppliers you plan to use to source your food. You may choose these based upon quality, price, and sustainability factors. You may want to start by asking other food trucks and similar concept restaurants who their vendors are. Restaurant industry trade shows may also reveal vendors you didn't know were out there. Of course, a quick online search might reveal dozens of restaurant supply chains, but many small business owners prefer to deal with local suppliers. One thing to think about is that you may want to consider vendors who will allow you to be billed monthly (rather than cash up front). Centralized billing and other contract options may help to streamline the financial processes of running a food truck business.

Step #10. Streamline the process  

One of Kyle's sticking points for his food truck is that he aims to get food to his customers in 30 seconds or under from the time of ordering. It's part of the reason his customers love the Vet Chef food truck. This means you'll need to have your kitchen organized for maximum efficiency. Everything that can be prepared in advance should be. And employees need to be trained to work as quickly and efficiently as possible. The good news? Your food truck is very small, so you should have everything available at your fingertips!

Should my food truck have a POS system?

One important consideration along the lines of efficiency is whether your food truck will offer a Point of Sale system for credit and debit cards. While cash used to be the mainstay for food truck mobile businesses, it's a bit slow and can be complicated when it comes to making change. More and more mobile food truck businesses are taking advantage of Square and other Point of Sale options for accepting credit and/or debit cards. This not only makes it fast and easy for the customer, but it may also allow for an integrated accounting and business tracking system for your food truck business. The startup costs for these can be very low, and the fees are typically minimal. But the convenience could definitely be worth it—and you aren't turning away customers who don't have cash.

Step #11: Build your food truck business/brand

Here is the place where the rubber meets the road (figuratively and literally). Once you're ready to open your food truck, getting your name out there is everything! Throwing a bunch of money at advertising is one option. And social media might be a helpful way to get people to find your food truck—since you're often on the go. On top of that, social media can often be a free option for advertising. A solid Instagram or Facebook social media page may be an effective business tool. But even social media hype can only take your food truck so far. According to Kyle, the best way for food truck owners to become successful is to create a dependable business that offers a quality product people want: [su_quote]We don't spend a lot of time on Facebook. You don't have time to focus on marketing. It wasn't our most important thing. What was the most important thing was putting out the very best food, the top quality that we possibly could.[/su_quote] If you want to jump right in, you may be thinking of buying an already-established food truck business from someone who has done the startup work and created a good reputation for you. Check out this step-by-step guide that will help you understand your options for buying an established business.

Why do food trucks fail?

Kyle told us many food truck businesses fail because their business owners lack dedication. They agree to be at a community event and arrive late, leave early, or maybe even don't show up at all. The Vet Chef says: [su_quote]If you say you're going to be there, be there. I don't care if your tire pops on the side of the road, you better have AAA and make it to where you say you're going to be.[/su_quote] Your successful food truck business needs to have a solid reputation for being reliable so that you'll be the first one who gets an invitation to the next event. If you do this, hopefully you will be one of the people who survives the first five years of business. According to the Bureau of Labor Statistics, only about 55% of all new businesses last through this period.

Are you ready to start a food truck business?

It's possible to open a food truck business with less than $50,000 in startup costs and some hard work. You can start earning $100K gross revenue really quickly by following this guide. Though you'll put in a lot of work to enter the food truck industry, it's worth it for those who wonder how to start a food truck. With dedication, you can be like Kyle and run a successful small food truck business within a year or two. What kind of food would you serve in a food truck?