Make 2015 totally awesome. Take the Dummies challenge and you could win $1,000! Learn how.
Different Types of Mobile Food Vehicles
Parking Options for Your Mobile Food Business
Two Options for Decorating Your Food Truck

Financial Projections for Your Food Truck Business

Your break-even point analysis for your food truck business

If you’ve accurately forecasted your sales and expenses, producing a break-even analysis for your business plan is a simple matter of math. Add your projected monthly expenses to create the Monthly Expenses line in the break-even analysis. Separate the cost of food and beverages (cost of goods sold, or COGS) from your fixed costs.

Separating these items allows you to see how changes in rent or your negotiated food and beverage purchase agreements affect your bottom line. Adding the Monthly Expenses to the Monthly COGS gives you a figure to determine the amount of sales your food truck needs to break even (see the line about required revenue).

Your company will show a break-even point when your total sales are equal to your total expenses. At the break-even point, no profit has been made, nor have any losses been incurred. This calculation is critical because it helps you adjust your sales numbers or expenses as needed.

  • Add a Comment
  • Print
  • Share

Recommends

Promoted Stories From Around The Web

blog comments powered by Disqus
Selling Your Food Truck Business
Your Food Truck's Key Performance Indicators
How to Find a Commercial Kitchen for Your Food Truck
Menu Pricing Methods for Your Food Truck Business
Buy the Insurance You Need for Your Food Truck Business
Advertisement