Putting together financial projections for your food truck business is a crucial science. It’s also a difficult task, seeing as how investors are going to want to see hard numbers reflecting several years down the road. Projections are absolutely essential for your business plan, especially if you are seeking out a bank loan. In this article, One Fat Frog Restaurant Equipment will look at some of the details of the financial information you should include in your business plan.
Remember, most folks going into the food truck industry do not have a background in finance. Don’t get frustrated if all of these numbers make your head spin! Reach out to any friends or family who may have experience. You can also consider hiring an professional accountant to help you put together financial projections.
• Begin with spreadsheet software to help make things smoother. Spreadsheets provide flexibility and give you the options to change your predictions or examine alternate scenarios. The most commonly used spreadsheet software is Microsoft Excel. Microsoft provides support for its users, so this software comes highly recommended.
• Don’t expect to get things right the first time. This is pretty much impossible. You have to try out different scenarios when you’re getting started. Play around with different factors – like purchasing used food truck equipment instead of new (which you should b doing anyway!). What about raising or lowering your menu prices? Explore these different scenarios so you can determine what it’s going to take to keep your business profitable.
• Break your financial forecast down into components in order to have an easier go at it. For instance, consider a forecast that simply predicts $10K in food sales for the month, compared to one that predicts 1,000 meals at $10 each. In the second case, when you adjust your meal prices it will be much easier to forecast prices times number of meals served.
• Do the financial research on your own, but consider getting help in the assembly of your financials. All of the numbers, predictions, and assumptions you put together in your business plan should be yours, not another food truck owner’s. In the end, you’re always responsible for achieving your objectives, not somebody else. With that being said, you may want to consider having a more seasoned, successful food truck operator go over your financials with you and see if they notice any glaring problems.
• ABC = Always Be Consistent. Ensure that your financial plan is consistent with the rest of your business plan. If an investor discovers that some sections don’t carry over properly, this inconsistency will raise some unwanted eyebrows
One Fat Frog • 2416 Sand Lake Road • Orlando, FL 32809 • 407-480-3409