15 Apr WHY BUSINESS MUST BE ON THE MOVE IN 2020
2020. Year of the mobile business boom, life with COVID-19.
The costs associated with setting up a bricks and mortar base for entrepreneurs can be quite daunting, especially in today’s real-estate and market down turn and the financial uncertainty that COVID-19 has brought before us. And whilst it may seem like the logical step for established business owners, it is fast becoming a common trend to take your business on the road, mobile, free (sort of) and to the people.
So the Question is why move to a mobile business model? What could possibly be better than a shop or permanent facility? Let’s take a look at the factor’s influencing Entrepreneur’s and Business owners alike.
First and Foremost, money is what makes the world go round. The driving force behind a move to Mobile business is the mild financial and attractive entry cost it offers, especially to new business start ups. Let’s take Food Trucks as a case study.
Your typical Costs in Perth to buy a decent size shop to start trading your restaurant easily would eclipse north of $400k, when factoring in lease, fit out, advertising/media, equipment, staff, utilities, stock, licencing fees etc.
A typical Start up Cost on a standard sized 3.6M Food trailer fully fitted out with your kitchen, branding, all necessary equipment to get you ready to begin operating can be achieved for around approximately $60k. The Best food truck builds in Perth can be found at Elross Caravans.
Check out their info page here We offer complete design, construction, fit out, branding to get your Mobile Food trailer or truck ready for trade in complete turn key.
We are all time poor these days. Fact. Mobile businesses offer flexibility to not only the business owner/s but also flexibility to the customers. Being Mobile Gives both parties Freedom.
Trade when you want, where ever you want (to a degree with appropriate permits). No scheduled hours on the clock waiting for the customers to come to you. The customer knows where you will be with your savvy social media skills, making more profitability possible in a smaller, more efficient time frame. Since businesses can’t open for people to sit right now with the restrictions, operating mobile has attractively opened the door for mobile vendors to have a shot at fair trade with restaurants on a levelish playing field.
Uber Eats, Deliveroo and menu log are all hit takeaway apps that make having a food truck and getting your food to the people even easier than before.
Sign a long lease and be locked in to one location for years, not knowing if the traffic will create enough profit can be daunting, and kill a new business off before they’ve even got going, especially right now with COVID-19, it makes no financial sense what so ever to be navigating down this path right now, not at least for the next 6 months. With a mobile business simply pack up and move to a new location, and keep trying until you find what works. Change is as good as a holiday they say!
It’s no surprise that big business is getting on board with the mobile Business Culture, not necessarily to create additional profits, but to increase brand awareness. If the big boys like Muzz Buzz and Zambrero have built with us at Elross to get involved into the Mobile food culture, surely you must be on the right track!?
Well yes of course… But You still have to do your homework, do your research and market yourself correctly to make your statement in the growing field. 70% of Mobile food businesses do not see more than two years of trade before, selling up or closing down. Strategy, and market placement are key factors on the success of your business. A key element to this is making sure your Business layout suits what you are trying to achieve. A good Example of one Food vendor who built with Elross that had a clear vision, business model and market difference was – THE ACAI CORNER. www.theacaicorner.com.au , Andrew and Madeline came to us with a clear vision of their business model, they had done the research and knew how to market themselves. They were bringing a food choice that had a market difference that no one was doing, and it was in the Health Food sector which is at the forefront of lifestyle choice and Council influence, which is also key to being successful.
Let’s face it, its all well and good to have the best intentions that “its not about the money” but we all know it makes that cake all that little bit sweeter! Mobile Business can create an amazing amount of wealth for your new found venture, as one of recent Builds found out very quickly! The Fat Buddha was shipped up to Karratha, Western Australia, for its new food trailer owner last month. In the coming weeks the Fat Buddha traded for 3 weeks straight, with its WORST taking for a night @ $3000.00 before expenses! The trading has already nearly paid for the cost to start the business. How many Bricks and mortar businesses could say something similar?
love & passion
If your soul purpose is to attain profit, you are doing it for the wrong reasons. Profits come from passion and love. We see all sorts of weird, wacky and wonderful ideas through the doors at Elross, some fantastic, some just fantasy. What we do recognize is when someone has the Passion, enthusiam and drive. You have to be doing it for the right reasons, putting the love into the product, the time and the effort. We often find the people who are modest, have realistic goals, have purpose, dedication to the journey are the ones who benefit the most and reap the rewards.
so what lies before the mobile business future?
GROWTH. Being on the front line in the changing evolution of buisness, it is exciting to see the transformation or addition to many businesses going down the pathway of a mobile unit. The game is changing and we only see this trend increasing over the next 3-5 years. Elross is seeing an increase in interest over the last month from the recent revelations of the Closing of bars, pubs, restaurants and cafes because of COVID-19 and savvy Business owners are adapting and consolidating to this new world we live in.