Work Breakdown Structure (WBS) for Starting a Food Truck Business

Food Truck Business

Food trucks have become quite a rage lately in the evolving restaurant space. The advantage of
mobility in the food truck format gives owners access to multiple locations at an initial capital that is
lower than that needed in opening a restaurant of any other format. Thus, it is no wonder that small
restaurant owners are looking to invest in a food truck instead of an individual stationary restaurant.
WBS
WBS is a hierarchical and incremental decomposition of the project into deliverables (from major
ones such as phases to the smallest ones, sometimes known as work packages). It is a tree structure,
which shows a subdivision of effort required to achieve an objective, for example, a program, project,
and contract.[6] In a project or contract, the WBS is developed by starting with the end objective and
successively subdividing it into manageable components in terms of size, duration, and responsibility
(e.g., systems, subsystems, components, tasks, subtasks, and work packages) which include all steps
necessary to achieve the objective.

The work breakdown structure provides a common framework for the natural development of the
overall planning and control of a contract and is the basis for dividing work into definable increments
from which the statement of work can be developed and technical, schedule, cost, and labor hour
reporting can be established.[6]

A work breakdown structure permits the summing of subordinate costs for tasks, materials, etc., into
their successively higher level "parent" tasks, materials, etc. For each element of the work
breakdown structure, a description of the task to be performed is generated.[7] This technique
(sometimes called a system breakdown structure[8]) is used to define and organize the total scope of
a project.

Importance-

1. Creating Measurable and Independent Tasks

The main purpose of a WBS is to reduce complicated activities to a collection of tasks. This is
important for the project manager because she can oversee the tasks more effectively than the
complex activities. Tasks must be measurable and independent, with clearly defined limits. All the
project work must be included in one of the tasks and the tasks must not include any non-project
work.

Assigning Costs to Each Task

Because the WBS tasks are measurable, the project management can assign specific costs to each
task. The WBS lets project managers distribute the project budget into defined packages linked to
the tasks and check to make sure that the task costs in total don't exceed the total project cost.

Track Progress in a Schedule

The WBS is important for tracking progress in the project schedule. Because the WBS tasks have
clearly defined limits, the project management can determine how advanced the project is by
checking which of the tasks are finished. Even within each task, the project management can check
for percent completion because each task is measurable.
Define the Scope of the Project

One of the key functions of the project management is to define the scope of the project. The
challenge is to make sure that everything within the project scope is completed without carrying out
any extra work. The WBS helps define scope by listing individual tasks that make up the project. The
project team completes all the listed tasks but no additional work.

Fulfill Intended Purposes

A major criterion for project success is that it fulfills its intended purpose. The tasks of the WBS each
implement a part of the overall function. A task is only complete when it fulfills its partial function.
When all tasks are finished, all the partial functions add up to a fully functional project.

Assign Responsibility for the Tasks

An important part of project management is to assign responsibility for the work. With a WBS, the
project management assigns responsibility for each of the tasks. The task manager is responsible for
completing the full scope of the project on time, within the budget and with all of its planned
functionality intact.
Work Breakdown Structure (WBS) for Starting a Food Truck Business

1. Project Initiation:
 Define the objectives and constraints of the project.
 Conduct market research to identify opportunities and challenges.
 Develop a comprehensive business plan outlining the business model, target
market, menu offerings, financial projections, and marketing strategies.
 Secure funding through investment, loans, or other financing options.
2. Legal and Administrative Setup:
 Register the business name and obtain necessary permits and licenses for food
service and operation.
 Register for tax identification numbers and comply with local tax regulations.
 Set up a business banking account and financial management system.
 Purchase appropriate insurance coverage for liability, vehicle, and business
operations.
3. Food Truck Design and Construction:
 Define the requirements and specifications for the food truck layout and
equipment.
 Design the interior layout and exterior branding of the food truck.
 Obtain necessary permits and approvals for construction and operation.
 Build or retrofit the food truck according to health and safety regulations.
 Install cooking appliances, refrigeration, storage, and serving areas.
4. Menu Development:
 Conduct market research to identify popular food trends and preferences.
 Develop a diverse and appealing menu that reflects the brand identity and target
market.
 Source high-quality ingredients and establish relationships with suppliers.
 Determine pricing strategies to ensure profitability while remaining competitive in
the market.
5. Branding and Marketing:
 Create a distinctive brand identity, including a logo, color scheme, and brand
messaging.
 Design eye-catching graphics and signage for the food truck.
 Develop marketing materials such as flyers, business cards, and promotional
items.
 Build a strong online presence through social media platforms, website
development, and online advertising.
 Plan and execute a grand opening event to generate buzz and attract customers.
6. Staffing and Training:
 Recruit and hire qualified staff members, including cooks, servers, and cashiers.
 Provide comprehensive training on food preparation, safety, and customer
service.
 Establish clear roles and responsibilities for each staff member and ensure
compliance with labor regulations.
7. Supply Chain Management:
 Identify and establish relationships with reliable suppliers for ingredients,
packaging, and other supplies.
 Implement inventory management systems to track stock levels and reorder
supplies as needed.
 Develop procedures for receiving, storing, and managing inventory to minimize
waste and spoilage.
8. Operational Setup:
 Develop standard operating procedures for opening and closing the food truck,
food preparation, and customer service.
 Install and configure a point-of-sale (POS) system for processing orders and
payments.
 Arrange for waste management services and recycling programs to maintain
cleanliness and environmental sustainability.
 Secure suitable parking and locations for operating the food truck, considering
factors such as foot traffic, competition, and local regulations.
9. Soft Opening and Testing:
 Conduct soft opening events to test operations, menu items, and customer
reactions.
 Gather feedback from customers and make necessary adjustments to improve
service and offerings.
 Evaluate the performance of staff, equipment, and processes to identify areas for
improvement before the grand opening.
10. Grand Opening and Launch:
 Plan and execute a successful grand opening event to generate excitement and
attract customers.
 Implement marketing campaigns to promote the grand opening and drive foot
traffic to the food truck.
 Monitor performance metrics such as sales, customer feedback, and social media
engagement to gauge the effectiveness of launch strategies.
11. Ongoing Operations:
 Manage day-to-day operations, including food preparation, customer service, and
financial transactions.
 Monitor and manage finances, including budgeting, accounting, and cash flow
management.
 Continuously evaluate and improve the menu offerings, pricing strategies, and
operational processes based on customer feedback and market trends.
 Build and maintain relationships with customers through excellent service and
engagement initiatives.
 Conduct regular maintenance and repairs on the food truck and equipment to
ensure safety and efficiency.
12. Growth and Expansion:
 Analyze business performance and identify opportunities for growth and
expansion.
 Explore potential expansion strategies, such as opening additional food truck
locations, catering services, or brick-and-mortar restaurants.
 Develop plans and allocate resources for scaling operations while maintaining
quality and customer satisfaction.
  Continuously innovate and adapt to changing market conditions and consumer
preferences to sustain long-term success.
Source Funding For Your Business

With a business plan in place, it is now time for you to zero in on the sources that you can tap into for
the funding of your food truck business. There are multiple avenues to choose from:

Personal savings – Over 50% of food trucks are financed from personal funds because of low capital
requirements.

Borrowings from family and friends.

Community Sponsors.

Microfinance Institutions/Banks that provide business loans.

Pre-approved Credit Cards that can be used for meeting working capital requirements.

Crowdfunding platforms, such as Kickstarter, GoFundMe, and Indiegogo.

Business partner/Co-founder who can bring in additional financing.

Financing from a Venture Capital Fund if funding from loans falls short of the requirement