Advice for a 20 year old entrepreneur - Catering

[piemuncher]

Hi all,

Just to introduce myself. I am a 20 year old Quantity Surveyor currently working whilst at University one day a week studying for my degree. I have done business in the past on ebay, buying job lots of items and selling them off individually. Though the new ebay fee system has changed and not made it worth my while.

I've had lots of ideas over the years, though never had the finance to carry them out!

I have had the idea of buying a catering van and effectively leasing it out to someone wishing to work for them self. I have thought of 2 options:

1. They pay a weekly fee which includes insurance, the pitch and fees associated, all equipment needed to trade and van.

2. They pay a lower fee which includes the van, equipment and insurance for the van itself. They then have the freedom to find their own pitch.

Now to me, this seems like a win win for both parties. There are many people that'd like to work for themselves in this climate and I'm fortunate to have the money to start this.

Could someone please tear my idea apart and tell me the various reasons that it wont work? I know I have a habit of getting an idea and making it work in my head!

Also, could I get an idea of problems I may encounter along the way? Also, how would I go about setting up this sort of lease? Is it bespoke and therefore need to be put together by a draughtsman?

How would I start going about this in terms of finding a pitch, I have written to the council and to all the local industrial estates, but if someone has experience with this I'd be curious to find out.

My real plan is to create myself a holding company in a couple of years, and expand this sort of idea (if it proves profitable) to hold more vans or to fund a different venture.

Thanks everyone.

Pie

Pie

 

[What If]

I admire your ambition. But I can't see an opportunity in this. Why would someone pay a premium to an intermediary when they could arrange all this themselves (We're not talking a large/complex investment!).

You would probably have to pay for the repairs and maintenance, which would significantly reduce any margins. I can't see any real scope for a return.

 

[piemuncher]

See this is what I mean, bring me back down to earth!

The main selling point as I can see it is that there will be no large initial outlay and there will be a fee free period to start with to establish the business before any money is expended.

I was more interested in renting out a trailer with an established site, which as I see it is most of the ball ache out of the way.

For the business owners, they would effectively have no risk as they would have minimal money invested and the risk would be passed on to me (if they are not at fault).

Thanks for your view.

Pie

 

[oldeagleeye]

I agrre with the other poster but would add.

1) If you have no dosh how would you buy the van. Do you even know the cost ?

2) You have obviously not ven carried out the very minimum of research otherwise you would know that anyone wishing to get into mobile catering can buy a new or even 2nd hand on HP or lease from the companies that make of fit them out.

As Will Try said - Why would any one pay an internediary.

3) Again lack of research. You can't get a pitch ata market anywhere and when the odd licence comes up it is already spoken for. Cost can also be up to £10K

Go visit your local B & Q or any other retail park and you find find that someone got there 5 perhaps 10 years ahead of you.

In fact you would have a real job to get a pitch at a boot fair. The catering concession is the first to go when a new one starts up.

That is not to say there ar not opportunities at boot fairs when it comes to food. If you got green fingers and a big garden or allotment home grown vegs go down a wow but you would have to run the pitch your self.

There really aint any need for intermediaries in the catering game. Forget it.

Rob

 

[piemuncher]

Ok thankyou for your thoughts, will go back to the drawing board and see what other pointless ideas I can come up with!

Thanks everyone

 

[liquidauctions]

Its not a pointless idea. Im sure if you change things around and create a niche for example convert a van into something else like mobile donuts and then let it out.

 

[oldeagleeye]

Your not listening Lquid

Unless you work damned hard and can personally get on with the guy who runs the show there ain't no pitches - donuts or otherwise.

As for converting vans. You can forget that too. You need to be an expert of health & safety will rip you apart and why would you want too.

You can rent lease/buy a fully fitted catering trailer for under £40 quid a week.

Now do you understand why there ain't no need for middlemen.

[URL=http://img709.imageshack.us/i/nakedvuice2314697.jpg/] Uploaded with ImageShack.us[/URL]

 

[oldeagleeye]

WHOOPS. ment to add. Don't take offence at my comments OP but as I would tell my own son if there is one thing almost as bad as losing in money it is losing sleep and wasting your time trying to make an idea work in your mind when it is simply not viable in real life.

Now on this occasion you made a major leap from what you do know about and are learning more surveying all the way over to catering about which you know nothing.

If you want to do some brain storming then look to yourown developing skills and the industry your in.

China has pulled back a bit now but there will still be a 1000 times more QS jobs out there. What about a small web site listing them. Write to the Trade Attache at the Chinese embaasy he or she will be only too pleased to provide you with a list of possible advertisers. In fact you will find that all foreign embassies are very aproachable and a simple phone call will get you an appointmnt with a relatively high official.

Be careful of some of the other Asians ones though. On the way out your'll be mugged by by juinior staff like drivers asking if you can get hold of used Datsons that they can ship home.

Now there is another idea.

Hope the info helps

Rob