How To Start a Mobile Refreshment Stand Business

To determine your start-up costs, you need to make your business plan. Remember, In the mobile food and beverage industry, there is room for both simplicity and creativity.

• Menu items. Decide if you will offer one specific drink or other variations of that drink. For instance, you could sell traditional hot chocolate, or you could also sell mint hot chocolate, raspberry hot chocolate, and caramel hot chocolate. You also need to decide if you will offer other types of food or snacks with your beverages. Whichever direction you choose, make sure you have a stockpile of supplies.
• Equipment. Equipment for your stand can be as simple or extravagant as you want. You can start with just a table and save your earnings until you have enough capital to upgrade. Whenever you're ready, there is a world of tents and blow-up concession stands for you to explore. Consider buying a used mobile concession stand on eBay or Facebook Marketplace. You can redecorate the stand to make your own. You'll likely need a refrigeration system for your ingredients. Make beverage and food safety your top priority.
• Décor. Whether your stand consists of one table or a full tent, make sure it's well decorated. Décor is how you set yourself apart from the kid down the street having a lemonade stand on Saturday afternoon. Figure out your brand, theme, and vibe, and embrace it fully in your decorations. You may want to display your contact information near your POS (point of sale) so that happy customers can reach out to you for catering gigs. Impress your customers with an ambiance that will make them forget about vending machines.
• Uniform. What will you wear while working your stand? You could have shirts, baseball caps, or winter hats made with your business name or logo on them. Select a uniform that fits your price range and matches your business's aesthetic.

Select your business's name carefully. You want a unique name to set yourself apart from all the world's mobile food vendors and food truck businesses. A good place for you to start is the business entity search tool on your secretary of state's website. This will help you eliminate names that are already in use.

If you are starting your own business, even a small business, consider setting it up as a sole proprietorship, corporation, or limited liability company (LLC).

Under a sole proprietorship, as the owner, you report the business's profits and losses on your personal income tax return. However, a sole proprietorship offers no protection from personal liability.

Forming a corporation separates your business liability as the corporation's owner from your personal liability, provided that you adhere to corporate formalities.

In a limited liability company (LLC), you, as the owner, are not personally liable for the conduct of your business, provided that you adhere to corporate formalities. The risk of “double taxation" is eliminated through an LLC's status as a “pass-through entity."

You can form your mobile concession stand business easily with our online business formation service.

If you've set up your business to be its own entity, then you should separate your finances from those of the business. Start by opening a bank account for the business so you have somewhere to deposit the business's income. Corporations and limited liability companies both protect you from being personally liable for the conduct of your business. However, this protection can be negated by your failure to treat your business as a separate entity. If you allow business assets and debts to mingle with personal ones, the two are not separated. Utilize different bank accounts to emphasize that your business is an entity distinct and separate from yourself. Also apply for an employer identification number (EIN) to show your business is distinct from yourself. An EIN is an identification number for your business tax reporting and filing.

Location, location, location! Where you place your stand, concession trailer, or food cart is an important choice. Consider the beverage you're selling and where people might be most apt to purchase it. Lemonade might do well near a beach; hot chocolate could be in high demand near a skating rink or sledding hill. Consider bringing your stand to farmer's markets, stadiums, and sporting events. Keep in mind that you can't just go set up shop anywhere. If you want to place your stand on a property that isn't yours, you will need to receive permission from the owner of the property. You should also review your city's zoning ordinances to help narrow down your list of potential locations.

Whether your business requires a license depends on the location of your business and what kind of business you will be running. Your state likely has a website that lists the types of businesses requiring licensing in your state. If you're having trouble finding this website for your state, check out FindLaw's page on state's laws, select your state, then under the category for your state's business laws, select your state's LLC formation page. Here, you'll find state-specific links for licensing requirements in your area. You should also contact your local health department to ensure you follow their regulations.

Check to see if operating a mobile refreshment stand requires you to get other permits or licenses, such as a food vendor license, if you offer food items. Running a food establishment or mobile food business may add additional requirements such as training in food handling, etc.

Operating a mobile refreshment stand is a wonderful way to spread cheer and make people happy. However, make sure you know the legal requirements of operating a business open to the public.

You should also look into what business insurance you need to protect your operation. In addition to insurance for your food truck, you may want to have a general liability policy to handle personal or bodily injury claims as well as property damage or theft.

Entrepreneurs of every kind are using social media as a tool for success. Beverage and food vendors are creating content for TikTok, YouTube, and Instagram to expand brand awareness and let their followers know where they're located each day. You can download the main social apps now and start posting. Viewers may enjoy following along as you get your business up and running.