When putting together your food truck business plan, the financials section is the most important aspect. After all, the whole point of a business plan is to attain financing. The financials section of the food truck business plan must explain to prospective lenders how much money your food truck will require and how you’re planning on spending it.
Here is an essential list for putting together your financials section, courtesy of One Fat Frog Restaurant Equipment. The section must contain the following critical financial information:
• FORECASTED SALES: this area explains to readers how you predict your sales will increase during the first three years of your food truck business. Because you have no idea how much cash will come in, you may have a tough time determining how much money you can realistically spend.
• FORECASTED EXPENSES: this area shows readers how you’re predicting to spend money on your food truck business. This area displays your food truck’s start-up expenses, along with the daily expenses (think food and fuel cost). It’s also alright to include forecasting for the unexpected expenses, such as truck repairs, to show you have a thorough understanding of various issues you’ll be facing.
• INCOME STATEMENT: this area shows your revenues, expenses, and profit for a particular period of time. Think of it as a portrait of a your business that displays whether your business is profitable at that particular point in time. Here’s an easy way to think of it: Revenue – Expenses = Profit/Loss.
• FORECASTED CASH FLOW: cash flow is the cash that flows through a company during a specific period of time after all expenses have been taken out. Cash flow is the actual amount of dough that your business has left from its operations that can be used for various reasons, like expanding the business of upgrading your food truck equipment.
• BALANCE SHEET: this area presents a picture of your food truck business’ net worth at a specific point in time. It lays out all the financial data about your food truck. This includes all of the financial data about your business, then breaking that data into assets, liabilities, and equity.
• ASSETS are tangible objects with financial value owned by your food truck business. This includes inventory, food truck equipment, cash on hand or in accounts, and the food truck itself.
• LIABILITIES are debt owned to an investor or creditor. For example, salaries, interest you owe, taxes, mortgage, etc.
• EQUITY is the net difference when the liabilities are subtracted from the assets.
When you are done putting together the financials section of your food truck business plan, be sure that the predictions you make match your plan’s funding requests. It’s no good if a prospective backer catches a mistake in your business plan before you do. Add graphs and charts where applicable.
And when you’re primed to purchase affordable food truck equipment, head into One Fat Frog Restaurant Equipment and check out our massive, varying selection of commercial food truck equipment. No matter what kind of food you serve up in the back of your truck, One Fat Frog Foodservice Equipment has got the high quality food truck equipment you need!
One Fat Frog • 2416 Sand Lake Road • Orlando, FL 32809 • 407-480-3409