How to Start a Street Cart Vendor Business

Street cart vendors have been around for decades. Many residents and tourists in major cities, such as Philadelphia, New York City and Chicago, depend on street cart vendors to provide their morning coffee, afternoon lunch and trinkets to take back home. Even vendors in smaller areas can make a good living and become an important part of their local economies. If you're thinking of becoming a street cart vendor, there are many regulations you'll have to follow, but it can be an enjoyable, lucrative business to be in.

Step 1

Assess the feasibility of a street cart in your area --- the number of people walking by your cart each day will be key to whether you can become profitable. Street vendors tend to do well in large cities and major metropolitan areas simply because there are more potential customers and areas with substantial foot traffic. A medium-sized town could work for a street cart vendor as long as you can place your cart downtown or in an area with heavy foot traffic.

Step 2

Pick a type of item to sell. Street cart vendors can sell a wide variety of items, from hot dogs and coffee to t-shirts and handbags, but it's best to cater to the area you live in before choosing a niche. For instance, if you live in a tourist town, sell souvenirs such as shirts, hats and key chains from your street cart. If your downtown area has no food vendors to feed the workers there, serving lunch from your food cart may prove to be very profitable.

Step 3

Contact your local small business development center to find out what county and state laws apply to street carts. You may be surprised to find out that your business will have many restrictions, especially if you live in a large metropolitan area. Many localities stipulate how close to buildings a street cart can be, have advertising guidelines, rules about the size of street carts and restrict how many vendors can be in any one area at a time.

Step 4

Obtain the necessary permits for your type of street cart --- failing to operate legitimately can result in massive fines, which is the downfall of many street cart vendors. Depending on where you live, you may need a vending license, resale permit, sales tax permit or assumed name certificate. Vendors selling food items will need additional business documentation and health permits. Contact your state's department of public health to find out the regulations in your area if you plan to sell food.

Step 5

Buy or lease a mobile unit from a supplier, such as Creative Mobile Systems, AIE Company, Inc., or Apex Vending Carts, to run your business from. Keep in mind what you need for the specific items you're selling. For example, if you will sell newspapers and magazines, it would be necessary for your cart to have built-in display racks. A taco cart vendor would need refrigeration as well as a unit to heat the food they serve.

Step 6

Get a storage area for your inventory and your cart. Many localities do not allow street cart vendors to leave their mobile units on public streets or sidewalks when they're not in use. If you don't have a parking space, consider renting one from a local business office, commercial parking garage or storage facility. Even if you're allowed to keep your cart in your space overnight, it would not be logical to store your inventory there too --- odds are you will come back to work to find that everything has been taken. You may be able to store your inventory at home in a clean, dry area that is free of pets or in a commercial storage facility. If you're selling food items, ensure you follow state rules regarding where you're allowed to store ingredients; you may need to rent a food locker or space in a commercial kitchen.

Step 7

Purchase wholesale merchandise from brands, distributors and manufacturers in your niche. Conduct an Internet search for wholesale distributors if there aren't enough suppliers in your area. If your street cart will sell food, try to buy as many local ingredients as possible to save money on shipping costs.

Step 8

Organize your merchandise logically, while making the items appear as attractive as possible. Most people who buy from you will do so on impulse, not because they planned to go to your street cart. If the items you sell are arranged sloppily, it is less likely that people walking by will stop to look at anything, much less make a purchase.

Step 9

Promote your street cart vendor business. You can make use of traditional media, such as newspaper and radio ads, but people generally don't go looking for street vendors to shop. However, some people will become regular customers of yours. To stay connected with them, use social media and social networks to let them know about new products and offerings, and what days and hours you're open for business. You can build loyalty with regulars by offering special discounts to them via social networks.

Things Needed

• Permits
• Food cart
• Ingredients

References (4)

• Illinois Department of Commerce and Community Affairs; Street Vendor Business and Industry Profile; June 2004
• "New York"; How Clean Are Those Things? Where Does the Meat Come From?; Michael Idov; Jun. 18, 2007
• SBA.gov; Becoming a Street Vendor... Where do I start?; CharlotteW; Jun. 13, 2011
• How to Start a Street Cart Vendor Business - Street Food Cart Business Ideas

Photo Credits(2)

• How to Start a Street Cart Vendor Business - Street Food Cart Business Ideas

• How to Start a Street Cart Vendor Business - Street Food Cart Business Ideas