Fashion Truck Business

A fashion truck business is a business that sells clothes and different fashion accessories from a truck. An ideal fashion truck has a fitting room and some are even equipped with air conditioning. A normal boutique can use a fashion truck to reinvigorate flagging sales.

One good thing about the fashion truck business is that fashion trucks can travel from one location to another, opening their business on wheels and selling to customers along their routes or in a location they choose to park for some time before moving on.

Available data shows that there are about 500 fashion trucks in the US, and the industry is still growing. The global fast fashion market reached a value of nearly $68,634.9 million in 2020, having decreased at a compound annual growth rate of -3.0 percent since 2015. The market is expected to grow from $68,634.9 million in 2020 to $163,468.5 million in 2025 at a rate of 19.0 percent.

Steps on How to Start a Fashion Truck Business

  1. Conduct Market Research

If you are considering starting a fashion truck business, you would need reliable market research to be able to maximize profits from the business. The first step in the market research process for your fashion truck business should be to develop market-based research questions in line with your overall business goal and objective.

In this regard, you should source information that will help you maximize your business, information that will give you reliable data and clue of what your potential market will be looking out for from a fashion truck business and also help you operate your fashion truck business with less stress and of course, build the business to profitability.

a. Who is the Target Market for Fashion Truck Business?
  • Facility managers
  • Event Planners
  • Tourists
  • Everyone who resides in the location where you intend to sell your clothes and fashion accessories.
b. Is Fashion Truck Business a Profitable Business?

Yes, the fashion truck business is quite profitable. According to Fashion United, the industry has a labor force of 3,384.1 million. Its value is equivalent to 3 trillion dollars. That means, it corresponds to 2% of the world’s Gross Domestic Product (GDP).

c. Are There Existing Niches in the Industry?

No, there are no existing niches when it comes to fashion truck companies, but a fashion truck company may decide to specialize in the sale of different types and styles of clothes and other fashion accessories.

d. Who are the Major Competitors?
  • The Fashion Truck – Boston
  • The Fashion Mobile – Minnesota
  • Nomad, New York
  • Runaway Runway
  • JD Luxe
  • Shop Truck LA
  • Selvedge Dry Goods
  • Moda Fashion Truck
  • Vancouver Fashion Truck
  • Biggest Little Fashion Truck
  • Rolling Racks
  • Le Fashion Truck – Los Angeles
  • Street Boutique
  • TopShelf – San Francisco
  • Therapie Boutique – San Diego
  • Lodekka – Portland
  • The Vintage Mobile – Dallas
  • Bootleg Austin
  • The Trunk – Nashville
  • StyleLiner – New York City
e. Are There County or State Regulations or Zoning Laws for Fashion Truck Business?

Yes, there are county or state regulations or zoning laws for the fashion truck business. Towns, cities, and counties have zoning restrictions, designating commercial and noncommercial zones. While you may be mobile, you can’t park just anywhere.

Most areas limit fashion trucks, trailers, buses, and carts to specific locations. A list of where you can and can’t park should be available from the county clerk. You may also have to adhere to two-hour parking restrictions and pay for parking meters.

Please note that trucks are required to stop at motor carrier safety and weight inspection stations when signs direct them to do so. Driving large trucks and buses requires a commercial driver’s license (CDL). Drivers must be at least 21 years old to drive on the interstates, with efforts being made to reduce the age to 18.

f. Is There a Franchise for a Fashion Truck Business?

No, there are no franchise opportunities for the fashion truck business.

g. What Do You Need to Start a Fashion Truck Business?
  • A Feasibility Report
  • Business and Marketing Plans
  • Business Licenses and Permits
  • Fashion trucks
  • Commercial Driver’s License (CDL) (at least a Class B CDL)
  • Insurance
  • EIN (Employer Identification Number)/Federal Tax ID Number.
  • A Corporate Bank Account
  • IRP Plates
  • Employees
  • Supplies of a wide range of authentic clothing, footwear, fashion accessories et al from different manufacturers (brands).
  1. Choose a Memorable Business Name

When looking to start a business, before you can begin to file the necessary documents with the constituted authorities or start your website, it is necessary that you come up with a name that you will be recognized with. It is essential that the name you come up with can easily be pronounced, is unique and easily memorable.

Some of the catchy business name ideas suitable for a fashion truck business are;

Creative Fashion Truck Business Name ideas
  • We Move© Fashion Truck, Inc.
  • Danny Beck® Fashion Truck, LLC
  • Opera Clothes© Fashion Truck, Inc.
  • Fashion Solutions® Fashion Truck Company, Inc.
  • Jordan King™ Fashion Truck Company, Inc.
  • Green Line™ Fashion Truck Company, LLC.
  • Merry Clothing© Fashion Truck Company, LLC
  • Ally Molly® Fashion Truck Company, Inc.
  • Stanley Beckley© Fashion Truck Company, Inc.
  • Fashion Life© Fashion Truck Company, Inc.
  • Lilly Green® Fashion truck Company, LLC
  • Inner Way® Fashion Truck Company, LLC
  • Jay Martins™ Fashion Truck Company, LLC
  • Calton Jones© Fashion Truck Company, Inc.
  • Sun Rise® Fashion Truck Company, Inc.
  • John Button™ Fashion Truck Company, Inc.
  • Fashion Depot™ Fashion Truck Company, Inc.
  • Lauren King© Fashion Fashion truck Company, Inc.
  • Rite Clothes® Fashion Truck Company, LLC
  • Red Truck™ Fashion Truck Company, Inc.
  1. Register Your Business

a. What Type of Business Structure is Best for Fashion Truck Business?

When it comes to the business structure of a fashion truck business, the one that most players in this line of business consider is an LLC. It is common to consider an LLC because providers want to protect themselves from lawsuits. Please note that an LLC will need an EIN if it has employees or if it will be required to file any of the excise tax forms listed below.

b. Steps to Form an LLC
  • Choose a Name for Your LLC.
  • File Articles of Organization.
  • Choose a registered agent.
  • Decide on member vs. manager management.
  • Create an LLC operating agreement.
  • Comply with other tax and regulatory requirements.
  • File annual reports.
c. What Type of License is Needed to Open a Fashion Truck Business?
  • General Business License
  • Commercial Driver’s License (CDL) (at least a Class B CDL)
  • Zonal Permits
  • Signage Permit
  • Proof of ownership, proper identification, and vehicle license
  • Depot, commissary, or service support facility
  • Copy of license for the service support facility and/or a recent inspection report.
d. What Type of Certification is Needed to Start a Fashion Truck Business?

You don’t need any certifications to start a fashion truck business.

e. What Documents are Needed to Open a Fashion Truck Business?
  • DBA
  • EIN
  • Business and liability insurance
  • Federal Tax Payer’s ID
  • State Permit and Building Approval (For your parking)
  • Certificate of Incorporation
  • Commercial Driver’s License (CDL) (at least a Class B CDL)
  • Business License
  • Business Plan
  • Employment Agreement (offer letters)
  • Operating Agreement for LLCs
  • Insurance Policy
  • Online Terms of Use
  • Online Privacy Policy Document
  • Contract Document
  • Company Bylaws
  • Memorandum of Understanding (MoU)
f. Do You Need a Trademark, Copyright, or Patent?

If you are considering starting a fashion truck business, usually you may not have any need to file for intellectual property protection or trademark. This is because the nature of the business makes it possible for you to successfully run it without having any cause to challenge anybody in court for illegally making use of your company’s intellectual properties.

  1. Cost Analysis and Budgeting

a. How Much Does It Cost to Start a Fashion Truck Business?

The startup cost for a fashion truck business is not uniform, some factors can influence the cost. But basically, a fashion truck business will cost from $50,000 – $600,000 to start and that can easily go higher depending on your overall business goals and objectives.

For example, the price of trucks vary by size. Light-duty class 2 and 3 trucks run from $25,000 to $45,000. Medium duty class 4 trucks run from $35,000 to $50,000. Medium duty class 5 trucks run from $45,000 to $70,000.

b. What are the Costs Involved in Starting a Fashion Truck Business
  • The total fee for registering the Business in the United States of America – $750.
  • Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines, and other software) – $1,300.
  • Marketing promotion expenses for the grand opening for $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of – $3,580.
  • The cost for hiring a business consultant including writing a business plan – $2,500.
  • Insurance coverage – $2,400.
  • Other start-up expenses include stationery ($500) and phone and utility deposits ($2,500).
  • Operational cost for the first 3 months (salaries of employees, fueling of the fashion trucks, purchase of gas, payments of bills et al) – $40,000
  • The cost for start-up inventory – $35,000
  • The cost of storage hardware (bins, rack, shelves, shoe case) – $3,720
  • The cost for counter area equipment – $3,500
  • The cost for store equipment (cash register, security, ventilation, signage) – $3,750
  • The cost of purchase of a well–equipped mobile fashion truck – $30,000
  • The cost for the purchase of furniture and gadgets (Computers, Sound systems, tables and chairs et al) – $10,000.
  • The cost of launching a website – $600
  • The cost for the opening party – $5,000
  • Miscellaneous – $5,000
c. What Factors Determine the Cost of Opening a Fashion Truck Business?
  • The size of the fashion truck business (number of fashion trucks you intend to start the business with)
  • The choice of location
  • The required licenses and permits
  • The cost for branding, promotion, and marketing of the fashion truck business
  • The cost of furnishing and equipping the fashion truck business
  • The cost of the insurance policy covers
  • The cost of registering the business
  • Cost of recruiting and training your staff
  • The cost for the purchase and customizing of uniforms
  • The cost of the grand opening of the fashion truck business
d. Do You Need to Build a Facility? If YES, How Much Will It Cost?

It is not compulsory to build a new facility for your fashion truck business. This is because the nature of the business makes it possible for you to get everything done on the go.

e. What are the Ongoing Expenses of a Fashion Truck Business?
  • Supplies of a wide range of clothing, footwear, and fashion accessories et al from different manufacturers (brands
  • Gas
  • Utility bills (internet subscriptions, phone bills, signage, and software renewal fees et al)
  • Salaries of employees
  • Trucks maintenance
  • Insurance
  • Marketing costs
f. What is the Average Salary of your Staff?
  • Chief Operating Officer (Owner) – $38,000 Per Year
  • Manager – $30,000 Per Year
  • Fashion Truck Drivers – $26,800 Per Year
  • Sales Attendants – $26,100 Per Year
g. How Do You Get Funding to Start a Fashion Truck Business?
  • Raising money from personal savings and sale of personal stocks and properties
  • Raising money from investors and business partners
  • Sell shares to interested investors
  • Applying for a loan from your bank/banks
  • Source for soft loans from your family members and friends.
  1. Write a Business Plan

a. Executive Summary

John Button® Fashion Truck, Inc. is a registered and licensed fashion truck company that will be based in Dallas, Texas.  John Button® Fashion Truck, Inc. will be at the forefront in selling a wide variety of clothes and fashion accessories all across major cities in the United States.

John Button® Fashion Truck, Inc. has been able to secure all relevant licenses and permits to operate throughout the United States and Canada. We will ensure that we abide by the rules and regulations guiding the industry.

b. Products and Service
  • Sale of a wide range of authentic women’s clothing, men’s clothing, children’s clothing, footwear, and fashion accessories from different manufacturers (brands) from the United States of America and all across the globe.
c. Mission Statement

Our mission is to build a fashion truck business that will meet the needs of our customers in the regions/cities where our fashion trucks will cover and to sell franchises all across the United States of America and Canada.

Vision Statement

Our vision is to become one of the preferred choices of fashion trucks in Dallas, Texas.

d. Goals and Objectives

The goals and objectives of a fashion truck business are to service areas where it might be difficult to construct the convention boutiques; areas such as carnival sites, construction sites, sporting event centers, campgrounds, beaches et al. Fashion trucks are also suitable for places like campuses, office complexes, military bases, mechanical village, industrial parks, farmer’s markets, cinemas, and religious centers.

e. Organizational Structure
  • Chief Operating Officer (Owner)
  • Manager
  • Fashion Truck Drivers
  • Sales Attendants.

Marketing Plan

a. SWOT Analysis
  • Excellent operational history
  • Access to global fashion brands and labels
  • Experience and trained professionals.
  • Well-equipped fashion truck.
  • Excellent customer testimonials.
  • Reliable and efficient fashion trucks and service.
  • The owner is new to large-scale marketing
  • We will need a loan to purchase the latest fashion trucks and start-up inventory
  • The owner is currently running the business solo
  • Lack of economies of scale.
  • Growing outdoor activities
  • Build upon existing clientele
  • Online market, new services, new technology, and of course the opening of new markets.
  • An increase in the number of families who would want to patronize fashion trucks.
  • Loans diminish profitability until they are paid off
  • The first year will be financially tight while we gain customers and pay off loans
  • Competition in the area could increase
  • Management of employees requires time, money, and efforts
  • The regulatory department could change its regulatory status and decide to enforce strict regulations that can hinder new businesses.
b. How Do Fashion Truck Businesses Make Money?

Fashion truck businesses make money by selling a wide range of authentic women’s clothing, men’s clothing, children’s clothing, footwear, fashion accessories et al from different manufacturers (brands) from the United States of America and across the globe.

c. Payment Options
  • Payment via bank transfer
  • Payment with cash
  • Payment via credit cards
  • Payment via online bank transfer
  • Payment via check
  • Payment via mobile money transfer
d. Sales & Advertising Strategies
  • Introduce your fashion truck brand by sending introductory letters to residents, park managers, and other stakeholders in and around the city you intend to cover.
  • Open your fashion truck company with a party to capture the attention of residents who are your first targets
  • Engage in roadshows in targeted communities from time to time to sell your clothes and other fashion accessories
  • List our business and products on yellow pages ads (local directories)
  • Leverage the internet and mobile apps to promote your fashion truck brand
  • Engage in direct marketing and sales
  • Deliberately brand your fashion truck
  • Encourage the use of word-of-mouth marketing (referrals)

Financial Projection

a. How Much Should You Charge for your Product/Service?

Most fashion truck businesses charge based on the quantity and brand of clothes and other fashion accessories sold.

b. How Much Profit Do Fashion Truck Business Owners Make a Year?

It depends, but available reports show that on average, a fashion truck business should net more than $260,000 per year assuming they have a steady clientele.

c. What Factors Determine the Amount of Profit to Be Made?
  • The capacity of the fashion truck business (number of fashion trucks owned)
  • The location the fashion truck business is covering
  • The management style of the fashion truck business
  • The business approach of the fashion truck business
  • The advertising and marketing strategies adopted by the fashion truck business.
  • The number of years the fashion truck is in business
d. What is the Profit Margin of a Fashion Truck Business?

The profit margin of a fashion truck business is not fixed. Typical markup on designer fashions ranges from 55 to 62 percent. If the wholesale price of a silk dress is $50, the retail price might range from around $110 to $130.

e. What is the Sales Forecast?

Below is the sales forecast for a fashion truck business. It is based on the location of the business and other factors as it relates to such startups in the United States;

  • First Fiscal Year: $320,000
  • Second Fiscal Year: $480,000
  • Third Fiscal Year: $550,000
  1. Set Up your Shop 

a. How Do You Choose a Perfect Location for Fashion Truck Business?
  • The demography of the location
  • The demand for clothes and other fashion accessories in the location
  • The purchasing power of businesses and residents of the location
  • Accessibility of the location
  • The number of fashion truck businesses, and boutiques in the location
  • The local laws and regulations in the community/state
  • Traffic, parking and security et al
b. What State and City are Best to Open a Fashion Truck Business?
  • San Antonio, Texas
  • Cambridge, Massachusetts
  • Chattanooga, Tennessee
  • Lewiston, Maine
  • Grand Rapids, Michigan
  • Chandler, Arizona
  • Colorado Springs, Colorado
  • Philadelphia, Pennsylvania
  • Warwick, Rhode Island
  • Mount Pleasant, South Carolina
  • Los Angeles, California
c. What Equipment is Needed to Operate a Fashion Truck Business?
  • Receipt issuing machine
  • Point of Sale Machine (POS)
  • Laptop
  1. Hire Employees

When it comes to hiring employees for a standard fashion truck business, you should make plans to hire a competent chief executive officer (you can occupy this position), manager, sales attendant, and truck driver.

  1. Launch the Business Proper

In recent times, no fashion truck business opens its door for business without first organizing an opening party to officially launch the business. You can choose to do a soft opening party if you are operating on a low budget or you can go for a grand opening party.

With a proper launching of the fashion truck business, you will officially inform people in your city that your fashion truck is open for business.

a. What Makes a Fashion Truck Business Successful?
  • Choose a good location, good fashion brands and labels, and reliable fashion trucks to launch the business
  • Hire only competent, hardworking, and trustworthy staff
  • Throw a party before officially opening the fashion truck business
  • Be deliberate with your marketing sales approach
  • Encourage the use of word of mouth to promote your fashion truck business
  • Leverage all available online and offline platforms to promote your fashion truck business
b. What Happens During a Typical Day at a Fashion Truck Business?
  • The business is open for the day’s work
  • The vans and trucks are washed, cleaned, and stocked with a wide range of fashion brands
  • The fashion truck moves from one location to another
  • Customers’ requests are taken and they are attended to
  • Schedule maintenance of trucks and vans is carried out
  • Re-stocking is done
  • Marketing/website upkeep
  • Administrative duties
  • The truck returns to base
  • The business is closed for the day.
c. What Skills and Experience Do You Need to Build a Fashion Truck Business?
  • Good driving skills
  • Customer services skills
  • Interpersonal skill
  • Business management skills
  • Work experience in a fashion truck industry
  • Experience in managing people
  • Experience in business administration
  • Experience in handling relevant software.