Beyond Food Carts: Building A Mobile Business

Susan Solovic explains what you need to know.
5:26 | 07/26/12

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Transcript for Beyond Food Carts: Building A Mobile Business
Looking to move full speed ahead with a small business you might want to think about opening it on four wheels. These days mobile businesses go far beyond food carts. Here to tell us how to fast track your own mobile business as ABC news small business contributor seasons all of that she's also the co-founder of -- -- -- dot com. -- season high -- entry to be here today great to see Allah except tell us the season we're seen as expansion of mobile businesses and things like nail salons and even lofty times what is the advantage here vs the storefront. Well really. It's quite simple one of the things -- money we -- not for Norris for the last two decades start businesses in their homes because it was less expensive than going outside of their home to get started. So but that doesn't work for every business if you're the nature of a business that -- clients are a lot of foot traffic coming into your business. Your home probably isn't going to be a good choice. So on foreigners now are taking a cue from these mobile food trucks and saying -- now it's a lot less expensive to do this. And by that I mean if you have to go running get a commercial storefront. You're gonna be locked into a commercial lease which can be very expensive usually it's going to be five to ten years. And the landlord is gonna want a personal guarantee the -- and that means that if you go out of business you're still going to be responsible for those lease payments. The other thing though is in the addition to the money is location. We now that for a lot of business location is critical. So what happens if you get in -- locked into one of these expensive. Long commercial releases and then you realize wow this was really a bad choice. With a mobile business gets why you picked up and go to another location. I love it -- try another corner there -- all right what about the downside is it harder to. For people to find you if you're constantly on the -- You know it depends on your strategy so if you think about it any business that opens you've got to challenge to let people know where you are and what it is you offer. So it's not and like any other business but a lot of small businesses that are starting mobile companies. They're using really innovative ways to reach their marketplace -- with Twitter with FaceBook. They're offering special discounts on FaceBook or sort of like being in the know follow us on Twitter. So there -- a lot of exciting ways that you can engage your customer base and and really create some brand best all right let's -- some of those -- this. These are things that people need to know if they really wanna go ahead with a mobile business so first -- you say that. It -- to -- the right fit for your business cracked right absolutely not every business is going to be conducive to a mobile business think gonna make sure can I. Fit this mobile vehicle to fit my business needs. The great thing about the food business there are a lot of RE pre equipped in pre designed -- vehicles that are available. All the way from the Ford cars range to the Cadillac range nice yeah that's not true in some of these -- business that we may see it down the route so for example let's say that you want to open a clothing store. Howry in the managed fitting rooms howry could have pulled down your displays and your -- can you carry enough inventory. To make it worth -- while also got a really consider those things and make sure it's a good fit for your business I'm still amazed at at the law firm I love the -- -- on -- -- -- immediately think that was correct fit but -- it it seems to be working there. You have to think about and the price how much is all of this cost. All right if you've got to make sure that what ever your selling whenever your business concept is -- obviously you're gonna be it -- charge a price that the market will bear and that you can make money. So -- -- -- best way to explain this is to use an example. There is a mobile -- rumor that confidence in my neighborhood on a regular basis and I thought wow this is a great idea you know I -- has -- the -- down the street in -- driving them further you know biweekly grooming session. Well I checked into the prices and the prices were twice as high as my normal dog rumor was -- -- charging. Because you know what you can't do a lot of volume you're -- one dog at a time when you're doing that business. Sakai in for me to drive five minutes and dropped the pops off at the normal dog rumor it. That was at the savings was worth it to me -- the convenience. -- need to do some research and make sure you can charge what the market will bear right threat factor that an end and -- think about the right place that is not the right place specifically about what. With bloc but is as -- town that well that will produce a customer -- -- businesses it's so spread out that it's going to be hard for anyone to rally. You know I -- Right well the great thing about the mobile business -- you can actually go to -- -- customers aren't so you want to pick a location where you know that wow there's going to be a lot of people who would want my product or service right here. But the second thing is you know you can't just assume that you can park your mobile business there. Every municipality has regulations and ordinances. Covering mobile businesses so you want to make sure can I actually park -- what are the licenses and permits then I'm going to need. If you want to park on up for up private property can you do that so let's say that you're doing something that would be like find trendy clothing for college student. Well obviously a place to park would be right on a college campus right yeah but maybe there that college campus would not permit that and maybe you can't even get close to that campus. You don't want to find that out after already started your business that's -- all of this goes into your pre business research. -- -- -- -- thank you so much for joining us today it's my pleasure.

This transcript has been automatically generated and may not be 100% accurate.

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