Great business plan - when location means everything!

Great article from the Wall Street Journal that was fun to read because my wife and my MIT Sloan friends often frequent the Clover Food Truck in Cambridge.  The Rosemary Fries described in the slideshow are a bit hit!  Not exactly what you first think of with a lunch truck:

Lunch trucks once represented the nadir of culinary achievement, conjuring up images of withered hot dogs and hygienically-challenged kebabs. Today, even some chefs from Michelin-starred eateries are migrating into a sector of the food business that seems particularly well suited for a financial downturn. For would-be restaurateurs, launching a culinary truck requires far less start-up capital than a brick-and-mortar restaurant. At a time when consumers are cutting back on restaurant spending, a food truck serving inexpensive lunches and snacks can be an easier sell to diners.

They always say that location is everything with small businesses, particularly restaurants.  These businesses are not only able to capitalize on that, but also connect with their customers via regular Tweets on where the truck is located, specials of the day, and updates on what food is avaiable (or has been sold out).  Another great way to use older techniques with modern tools to keep customers engaged.

Big House Awakening?

After spending the weekend in Michigan and getting a long-delayed view of the Big House renovations (I am still, on the record, against the renovations), my thoughts turned to September 5th.  With the Wolverines Basketball Team finally returning to national relevance with a Tournament invite and victory this year not to mention early ranking for next season, the football program cannot be far behind, right?  RichRod has a history of a second-year bounce, quoting from his Wikipedia page:

On November 26, 2000, WVU's athletic department announced that Rodriguez would again return to West Virginia, this time as head coach to replace the retiring legend Don Nehlen. Rodriguez's first season at West Virginia, 2001, was a disappointing 3-8 season. However, Rodriguez's turn-around of the 2002 team is the greatest turn-around in Big East history with a 9-4 record,^{[citation needed]} Big East runner-up finish, back-to-back road wins against ranked Virginia Tech and Pitt, and a Continental Tire Bowl berth. The Mountaineers finished second in the nation rushing with 283 yards per game and fourth in turnover margin. In 2003, the Mountaineers started the season 1-4, and after losing to #2 Miami 22-20, the Mountaineers posted a 6-1 Big East record and tied for the Big East championship with Miami, earning a Gator Bowl berth. That season, the Mountaineers replaced 22 seniors, eleven of which were starters. In 2004, the Mountaineers posted a 8-4 record with a talented team of seniors and juniors, but were ranked as high as sixth during the regular season.

If RichRod's traditional second year bump is not just a myth, and if Tate Forcier continues to put moves on defenses (I know it is the second-string, stay with me), Michigan's 2008 season may fade as quickly as we all want it to.  We will know in just 101 days.

To incorporate or fly solo...

I was asked by a sole proprietor if he really needs to set up a new entity for his business. As the operator of a service business for quite a while, he said that he uses very few assets in his business and that incorporating was too expensive. While there are filing fees and other costs associated with setting up a legal entity, he almost cannot afford not to. One of the key elements of establishing a legal entity is liability protection: in the event of a lawsuit or other unforseen liability a sole proprietor's personal assets (house, cars, etc.) are at risk to pay the costs. A legal entity such as a corporation or an LLC limits your personal liability and protects your personal assets.

Many startup business owners who have always gotten by with relying on bootstrapping with limited funds decide that they would rather take the risk of a lawsuit and not spend precious dollars on filing fees. But what does it actually cost? In Massachusetts, for example, the filing fee for a corporation is as low as $275 for most companies. You can file via the Massachusetts Secretary of State's Web site and be up and running within a day. However, you should consult a lawyer before doing so, and legal fees vary widely. Our firm charges a reasonable flat fee for most corporations; others may charge hourly rates.

You should also consult a tax advisor because there are tax ramifications of acquiring stock in a corporation, but some will actually provide a benefit to you.

There may be other start up costs depending on your situation, and you will have to invest a bit of time with recordkeeping.  Though, either way, a small investment of time and money up front will give you piece of mind with your personal assets so you can focus on building your business.