Company Establisment
Autor: Adnan • February 17, 2018 • 1,454 Words (6 Pages) • 611 Views
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Financial plan
initial investment needed by the project
Item
Estimated cost
Food truck+ Equipment
$200,000-$600,000(per truck)
Initial product inventory
$6,000-$12,000
Permits and license
$100 – $500
Website
Free to $ 3,000
Facebook / Weibo
Free
POS
$200-$1000
Uniforms / T-Shirts
$1000
Misc. Expenses (Like a Chalk Menu)
$500-$2,000
Smallwares : Pots, Pans, etc.
$1,000-$2,000
Fire Extinguisher
$100-$300
Total Low End
$208,900
Total High End
$620,800
Profit/loss in the next two years
2015
2016
Revenue
$250,000
350,000
Direct Cost
$59,478
$77,332
Gross Profit
190,522
272,668
Operating Expense
Salary
$30,000
$40,000
Business Licenses and Permits
$500
$500
Supplies
$3,000
$3,000
Equipment
$10,000
$0
Fuel
$15,500
$15,500
Repairs and Maintenance
$1,000
$1,000
Advertising and Promotion
$6,000
$7,500
Depreciation and Amortization
$14,000
$14,000
Utilities
$3,297
$3,297
Total Operating Expenses
$83,297
$84797
Operating Income
$107,225
$187,871
Other Expenses
Loss (or Gain) on Sale of Asset
$0
$0
Interest Expense
$2387
$1567
Total Other Expenses
$2387
$1567
Income Before Income Tax
$104,838
$186,304
Income Taxes
$12,480
$32,468
Net Income
$92,358
$153,836
Evaluation
Initial sales problem
As we sell food from food truck, we have limited space provide to our customer such as chair and desk. They have to buy our food and find a place to eat. It is a big problem for because of convenience. Our dim sum are different to other street snacks, our food hot and fresh. We prefer them taste it as fast as possible. It limited our sales. Also, We have lots of competitors around the street. For example, Bao Dim Sin Seng and Chinese restaurant and Tong Kee Bao Dim are selling same or similar food with us. They may be cheaper and more famous than us.
Solution:
For every day, we can provide an promotion price to visitors. They can get a discount price to buy our food. Through the promotion price, it helps us to attract more people try our food. After that, we also trying to take some photo while they are eating our food.
Indeed, we can also invite some food journal to do an interview about our food. Let more people know more about us.
Food material supply problem
In the food truck, we have limited space to store our food. Especially the food need to freeze. The food type selling volume is unknown at every day. It is difficult to calculate the food material inquiry and the preparation.
Solution:
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