How I Funded My First Coffee Truck

If you have ever wondered how people come up with the money to start a coffee business, here is my story.

It is probably not the path I would recommend, but it is the path that got me here.

The Beginning

We have to go back to the early 2010s.

The economy was still recovering from the housing crisis. I was in my twenties, living in Hawaii, and trying to figure out what I wanted my life to look like.

I had been laid off from Nordstrom, spent some time at Starbucks because I wanted to learn everything I could about coffee, and was working at T-Mobile.

Looking back, I realize I had developed a constant fear of losing my job. Once you have been laid off, it changes the way you think. Even though my performance was strong, I always felt like I was one bad month away from being unemployed again.

At the same time, I could not stop thinking about opening a coffee business.

The early 2010s were also an interesting time for food businesses. Food trucks were exploding in popularity, Food Network's The Great Food Truck Race had just launched, and gourmet cupcakes were everywhere.

There was this new idea that you did not need a traditional brick and mortar location to build a successful food business. You could start smaller, create something unique, and build a following.

That idea really resonated with me.

I started looking at coffee differently. I did not just see it as a beverage. I saw an opportunity to create a better coffee experience and bring it to places that did not have access to it.

I was convinced there was a gap in the market that was not being filled, and I believed I had a concept people would love.

I was all in.

Why I Did Not Borrow Money

One thing about me has always been true.

I do not like debt.

I did not want a monthly loan payment hanging over my head while trying to build a business. I did not want investors. I did not want to borrow money from friends or family.

If this was going to work or fail, I wanted it to be because of my decisions.

So I decided to fund it myself.

Cashing Out Everything

I liquidated my 401(k).

I sold every stock I owned.

To be honest, I was not some investing expert. I was a gamer who bought stock in companies whose products I actually used.

Intel. AMD. NVIDIA. HP. Western Digital.

AT&T because they were my cell phone carrier. Bank of America because that was where I banked.

That was my investment strategy.

My goal was to pull together around $100,000 to fund the truck.

What I did not fully understand at the time was how expensive it is to cash out retirement accounts early. Between the 10 percent early withdrawal penalty and taxes, that $100,000 quickly turned into somewhere around $70,000 to $80,000 in cash.

Back then, information was not nearly as easy to find. There were not endless YouTube videos, podcasts, and online communities explaining every financial decision. I learned that lesson the expensive way.

Betting on Myself

I believed that money would be enough to finish the truck, cover my startup costs, and give me enough runway while I built a customer base.

The original plan was to keep working until the truck was complete and then make the leap into business ownership.

That is not what happened.

Trying to balance a full time job while building a coffee truck during nights and weekends eventually burned me out. I convinced myself that if I quit my job, I would finish the truck much faster because it would finally have my full attention.

So I quit before the truck was finished.

At the time, it felt like the right decision.

Looking back, it was one of the biggest risks I took.

The Cost of That Decision

Here is the hard part.

If I had simply left that money invested, I would probably be worth several million dollars today.

Many of those companies went on incredible runs over the next decade.

Financially, it was almost certainly the wrong decision.

But life is not lived with hindsight.

At the time, I genuinely believed I could create a better return by building a successful coffee business than by leaving my money in the market.

That was the bet I made.

Do I Regret It?

Yes.

And no.

I regret what that money could have become.

I do not regret the person the experience helped me become.

Building that coffee truck taught me lessons about operations, permitting, equipment, customer service, marketing, and entrepreneurship that I still use today.

If you asked me whether I would do it again knowing everything I know today, I probably would.

Not because it made me richer.

Because it changed the direction of my life.

My Advice

If you were sitting across the table from me asking how to fund your first coffee shop, my advice would be different.

Find another way.

Save longer.

Keep your day job a little longer.

Look into SBA financing or other small business loans.

Bootstrap your business in phases if you have to.

Whatever you do, try to leave your retirement accounts alone.

Your future self will thank you.

Believe in yourself. Bet on yourself.

Just do not bet your retirement if you do not have to.