FRIDAY FRANKS WITH FRANK PRESENTS HOW TO START YOUR OWN HOT DOG BUSINESS WE CAN DISCUSS THIS TODAY AT HISTORIC PIKE PLACE MARKET THE WALKING TOUR WILL BEGIN AROUND 11:00 PLEASE MEET AT THE COPY MACHINE AND WEAR YOUR BRIGHT GREEN CAPS SO WE CAN ALL STICK TOGETHER

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Have you ever wondered what people who succeed in business have in common. There are people who started with nothing and became rich, and there are people who were handed everything and lost it all. Fat people have succeeded in business while thin people have too. There seems to be no social model for a successful businessman or woman. So what is the common thread that makes someone successful. It is the ability to get things done, the ability to overcome obstacles and above all the determination to succeed. Why do we tell you this. Very simply, running any business is not easy, however the hot Dog business is easier than most. Once you get started, let's face it, it is not too much of a challenge to throw a Hot Dog on a bun, grab the correct type of soda the customer requested, take their money and give them their change. That is the good news. The bad news is that getting a Hot Dog business started can take a lot of time and can certainly try your patience. There are licensees, inspections and permits to deal with. There is finding a location, financing the start up costs etc. The Licensing phase can be relatively simple or very difficult, a lot of it depends on how decent the people in local government wish to be with you. An understanding and cooperative health Inspector can make all the difference in the world, unfortunately a difficult one can make your life a living hell. The point of all this is that getting started is the toughest part. The person who can overcome the initial obstacles and get started is the person that will win. We guarantee you, no matter how much of a hassle it was to get going, the day you sell that first Hot Dog and put that green cash in your pocket, all the aggravation will be forgotten. You will then be doing something most people only dream about, running your OWN business. This will occur because you had the determination to overcome the initial obstacles.

This document was written to first identify the obstacles and then assist you in overcoming them. If you make up your mind to proceed with this venture, we are sure you will never regret it.

Step 1

Develop a Selling Strategy

The first thing you need to do is to determine where you want to sell Hot Dogs.

You basically have 2 choices. You can find a permanent spot or you can work events such as fairs, carnivals, parades etc. There are advantages and disadvantages to both choices. Working events gives you the ability to make lots of money in a relatively short period of time. This is an ideal approach for someone interested in doing this part time. The disadvantage is that events can be few and far between, so your income may not be too steady. If you decide to strictly work events, be sure that there are enough of them available to meet your income goals.

If you opt for selecting a permanent location, there is nothing magic to picking out a good spot. You are seeking an area with either high foot traffic or a large volume of Automobile traffic passing by. If you decide to sell at the roadside, be sure you select a spot where there is room for your customers to safely park. Many vendors have found ideal spots only to be run off by the police because their location either created traffic jams or were causing people to park unsafely. You should also look to an area where there are no other Food Serving establishments nearby. There are exceptions to this rule. For example in a busy downtown area you could have Hot Dog vendors on every corner and they could all still be making a nice living.

Some vendors opt to locate on private property. The parking lots of large malls or stores where there is little or no food being served can be quite lucrative. College Campuses, businesses without a cafeteria etc. can also be gold mines. If you decide to do this, there will likely be a lease expense to the owner of the building for the right to locate on their property.

The major down side to working a permanent location is that you lose a lot of flexibility. You pretty much have to establish regular hours of presence or it just won't work for you.

Step 2

Select your vending Cart

When selecting your vending cart, you should look for the following features.


1) Mobility
2) Functionality
3) Ability to handle large volume
4) Cost


We will address each of these issues

Mobility

Functionality

Ability to handle large volume

Cost

Step 3

Calculate your Start Up Budget

Your biggest expense to get started will of course be the cart itself, however there are a few more smaller expenses to consider also.

Other potential Start Up Expenses

Health Inspection Costs

Permit/License Costs

Comisarry Expense

Registration Expenses

Lease Expense

Initial Inventory

Step 4

Meet with the Health Inspector

At this point you will not have your cart, however you should have sufficient information in hand that shows the design of the cart you are planning to purchase. If you do not, contact the cart vendor to obtain such information. Take this package to the health Inspector and allow him/her to review it. They should be able to give you a good idea whether the cart meets their requirements. Most carts will meet Health requirements, but some jurisdictions do have their own little idiosyncrasies and may have some unique requirements. If the health Inspector informs you the cart looks OK, that is great. If you are informed some modifications are required, contact your vendor and explain the modifications required. Obtain a price quote and filter that into your start up costs. This is a helpful step that will avoid last minute surprises.

Step 5

Put it down on paper

This is where the rubber starts to meet the road. Do some research. Call around to local restaurant supply houses. Find out the best prices for Hot Dogs. Ask for samples. Don't get stuck with a 20# box of Hot Dogs that are not edible. If a restaurant supply house will not give you samples, go to local restaurants, find a Hot Dog you like and ask them who their supplier is. Getting the best price is nice, but we are dealing with pennies a unit. Having a product that is tasty is much more important. Call the local bakeries in your area. Most companies will happily deliver to you directly. This will save you 30-40% over buying your Hot Dog Buns at retail. Also talk to your restaurant supply house about toppings such as Mustard and Relish. Purchasing these in bulk will save you a fortune. When you have it all together you can sit down and calculate your cost for a fully topped hot Dog and a plain Hot Dog. Your average cost will end up right around the middle. This should come out to around $0.35 per dog. Now look into Soda prices. Cans are the easiest to deal with. You now should have a good picture of what your costs will be. Your next step is to look around at other vendors selling in your area. Make a note of their prices. This will give you an idea of what the market will bear. Set your prices based on your cost and what the market will bear. For Hot Dogs, your markup should be at least 400%. If it appears the market will bear more, then go for it. Sodas in the can will not be as profitable. Once again see what other vendors are doing. A 250% to 300% markup will be acceptable for Soda.

if you have done steps 1 Thru 5, the remaining steps should be easy

Step 6

Order your hot Dog Cart

At this point the research has been done, you already have picked out your cart, you have decided how to fund the purchase. If all the ground work has been done properly, this step should merely be reduced to a phone call.

Step 7

Obtain Permits, Licenses & Inspections

Some of the Licenses etc. can be obtained before your cart arrives. Make sure you get them in advance if you can. For those items that must wait to have the cart in your possession, get them done immediately upon receiving the cart. Once again, if you have done your homework as outlined in steps 1-5, this step should proceed smoothly.

Step 8

Sell, Sell, Sell

Well, the day has arrived. get up early, get organized and get to your spot, then Sell, Sell, Sell. Just remember one thing. A little courtesy and kindness goes a long way in this hustle bustle world we live in. If your customers think you are a nice guy or a nice girl they WILL come back. The days of treating customers like garbage and getting away with it are disappearing quickly.

Give it a week or 2. After that period, sit down and decide if you are meeting your income goals. If you are not, do not panic, but be honest with yourself, do you see that you will meet those goals in the near future. If the answer to that is No, go back to step one. You will need to review and likely revise your selling and location strategies. Don't waste your time compounding your mistakes. Move on quickly.

Step 9

Add extra items

For the first week or two, don't fool around. Concentrate on selling your staples, Hot Dogs and Soda. Once you get comfortable with doing that, try a few different items. Don't go out and buy a thousand units of an item, start small and see if it works. If it doesn't, dump it and try something else. You are now in a unique situation. Your Hot Dogs and soda should be paying the freight at this point. You are there anyway, you might as well try to make more money by selling extra items. Keep the winners, dump the losers and keep trying new things.

Step 10

Don't get complacent

Do not treat your customers poorly, always be friendly no matter how bad of a day you are having. Constantly analyze your situation, constantly think about new food items and other items as well. Keep experimenting, keep trying to make more money. After a few months making more money will become more and more challenging since you will be running at full tilt with the basics, but keep trying.

Every situation is different, but here are just a few things that I have seen work.