Budding restauranteurs are turning to taco stands as a lower-cost way to get into the food business. Selling these staples of Mexican cuisine to a hungry American public out of diminutive spaces takes planning, management skills, and, of course, cooking skills. Learn how to open a taqueria business to start building your restaurant dreams.

Start With the Food

You could lose a lot of time and money planning to open your taco business if you haven’t tested your tacos on friends and family first. Your tacos must be so good that they stand apart from the competition. What kind of tacos will you make? Will you have any unique and different items on your menu? Determine what will distinguish your taqueria from the others on the block. Also, check your speed—customers who buy carry-out from a taqueria want great food, but they also want it fast.

Planning, Budgeting, Licensing, and Permits

Once you know your cooking is great enough to sell, make a business plan. Your plan should specify your estimated startup costs. Include everything from your location to equipment, supplies, licenses, permits, legal fees, and insurance.

You’ll need to map out estimated operating costs such as wages, utilities, marketing, maintenance, and food. Take care of the legal aspects by forming a business entity like an LLC, and apply for an employer identification number. Open a business bank account, and get a business credit card. You can usually do these things yourself, but if you’re not sure what the implications are in choosing your business structure, get advice from a lawyer with experience working with small businesses.

Choose Location and Equipment Carefully

Hole-in-the-wall taquerias and moveable taco stands survive on foot traffic and take-out. Select your location carefully based on your target market and the amount of foot traffic you can reasonably expect. Don’t choose a spot where several other food businesses have failed in the past.

Taquerias that make their own tortillas have a chance to rise above others that use mass-produced tortillas. You’ll need a tortilla press that can flatten and heat dough or a tabletop machine like the Tortilla Masters that can roll and cut flour and corn tortillas.

The equipment you choose will depend on how much space you have. If you are prepping elsewhere and rolling out a corner taco stand, you won’t have room for a large tortilla press. But, if you’re renting brick and mortar space for your taqueria, think about making room for quality equipment that can help you create handmade tacos that stand out for flavor and freshness.

Market Wisely

Many food trucks and tiny taquerias build loyal clientele through word of mouth. That kind of exposure usually starts on social media, so make sure your online presence is well-designed and carefully managed. Post updates about new menu items, and be sure to thank your loyal customers for their support.

Opening a taqueria business can be a relatively inexpensive way to enter the food business and indulge your passion for delicious preparations.