Financial Assumptions
Summary Financial Plan
Monthly Financial Summary:
Turnover: R250,000
Cost of Sales: R87,500
Gross Profit: R162,500
Fixed Overheads: R20,000
Operating Income: R142,500
Annual Financial Summary:
Turnover: R3,000,000
Cost of Sales: R1,050,000
Gross Profit: R1,950,000
Fixed Overheads: R240,000
Operating Income: R1,710,000
Key Points to Consider
Sustainability: Ensure the food truck can maintain these turnover levels consistently.
Scalability: Assess opportunities to increase turnover or reduce costs to improve margins further.
Risk Management: Plan for potential fluctuations in sales, cost of goods, and overheads.
Return on Investment
This is based on a turnover of the following:
Month 1 - R50 000
Month 2 - R100 000
Month 3 - R150 000
Month 4 - R200 000
Month 5 onwards- R250 000
Return on Investment Summary
Return on Investment (ROI): 215.58% Interpretation:
This ROI indicates that for every rand invested in purchasing the food truck, you can expect to earn R2.16 in profit annually, or a 215.58% return. This suggests a highly profitable venture, assuming consistent turnover and cost management as outlined in the plan. Investment Recovery: The initial investment of R650,000 would be recouped in approximately 5.6 months (650,000/116,770.83 ), where R116,770.83 is the average monthly operating income after the initial ramp-up period. This detailed financial plan and ROI calculation highlight the potential profitability and return from the food truck business under the provided turnover and cost structure assumptions
Total Selling Price
R650 000 inclusive of VAT