Financial Models

Starting a food truck requires financial modeling so a prospective operator can get a sense of the expected startup costs as well as the operating cash flow based on certain assumptions. This is important for many reasons. It is good to know what the burn may be as sales are still growing in the early years as well as what kind of assumptions must be true for profit to take place and how much it may be.

This 10-year model will allow the user to define assumptions about initial sales and growth of sales as well as cost of goods sold and operating expenses over the forecasting period. This will show minimum equity required to survive as well as a DCF Analysis and visualizations that display financial performance given the assumptions. There is logic if some of the startup costs (a defined percentage) to be financed through traditional debt. It is important to see and ensure expected operating cash flow is enough to pay this off if selected. The final return summary shows IRR and ROI as well as the NPV of the project non-leveraged.