Financial Analysis

Sales Forecast

One thing is certain when it comes to vegan food truck business, if your vegan foods are well-prepared, packaged and branded and if your vegan food truck is easily accessible, you will always attract customers sales and that will sure translate to increase in revenue for the business.

We are well positioned to take on the available market in San Francisco – California and every city where our vegan food will be sold and we are quite optimistic that we will meet our set target of generating enough income/profits from the first six months of operation and grow the business and our clientele base.

We have been able to examine the food truck industry, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. Below is the sales projection for ABC Vegan Food Truck, it is based on the location of our business and other factors as it relates to small scale and medium scale vegan food truck startups in the United States;

·   First Fiscal Year (FY1): $240,000

·   Second Fiscal Year (FY2): $350,000

·   Third Fiscal Year (FY3): $550,000

This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same products as we do within same location where our vegan food trucks will transverse. Please note that the above projection might be lower and at the same time it might be higher.

Startup Expenditure (Budget)

When it comes to starting a standard vegan food truck business, one is expected to spend the bulk of the startup capital on is the purchase of standard and well – equipped food truck. Please note that an average food truck will cost a minimum of $10,000, but fancier models can run to twice that cost.

The truck must be insured, which can cost between $800 to $1500 every year. Aside from that, you are expected to purchase ingredients, maintain and fuel your truck and of course pay of your employees and utility bills. These are the key areas where we will spend our start-up capital on;

The total fee for registering the Business in the United States of America – $750.

Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $1,300.

Marketing promotion expenses for the grand opening of ABC Vegan Food Truck in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of – $3,580.

The cost for hiring business consultant including writing a business plan – $2,500.

Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.

Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500).

Operational cost for the first 3 months (salaries of employees, fueling of the food trucks, purchase of gas, payments of bills et al) – $60,000

The cost for start-up inventory (vegan food ingredients, flours, coffee and other drinks and packaging materials et al) – $5,000

The cost of storage hardware (bins, rack, shelves, food case) – $3,720

The cost for counter area equipment (counter top, sink, ice machine, etc.) – $5,500

The cost for store equipment (cash register, security, ventilation, signage) – $3,750

The cost of purchase of a well – equipped mobile food trucks – $20,000

The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al) – $10,000.

The cost of launching a website – $600

The cost for our opening party – $5,000

Miscellaneous – $5,000

We would need an estimate of one hundred and thirty – five thousand dollars $135,000 to successfully set up our mobile vegan food truck business in San Francisco – California.

Generating Funds/Startup Capital for ABC Vegan Food Truck

ABC Vegan Food Truck is owned and financed by Mr. Jeff Lorenzo and his immediate family members. They do not intend to welcome any external business partners which is why he has decided to restrict the sourcing of the startup capital to 3 major sources.

These are the areas we intend generating our startup capital;

·   Generate part of the startup capital from personal savings and sell of stocks

·   Source for soft loans from family members and friends

·   Apply for loan from my Bank

We have been able to generate about $50,000 (Personal savings $40,000 and soft loan from family members $10,000) and we are at the final stages of obtaining a loan facility of $85,000 from our bank. All the papers and documents have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.