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.