Rock your resolutions. Take the Dummies challenge and you could WIN $1,000! Get Started.
Different Types of Mobile Food Vehicles
Determine Your Food Truck's Proper Inventory Level
How to Calculate Foot Traffic to Position 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
blog comments powered by Disqus
Twitter and Your Food Truck Business
Your Food Truck Menu Board's Colors, Fonts, Layouts, and Descriptions
Communicate Your Food Truck's Marketing Message with Public Relations
Listen to the Feedback of Your Food Truck Employees
How to Find Potential Suppliers for Your Food Truck
Advertisement

Inside Dummies.com