Medgar Evers College BUS 311: Financial Analysis Report - Food Truck

This report presents a financial analysis for a food truck startup, Brooklyn Soul on-the-Go, detailing the initial investment of $10,000 needed for setup, employee costs, and raw materials. The business aims to break even quickly and achieve a 10-20% quarterly revenue growth, driven by customer acquisition. The analysis focuses on cost reduction, efficient resource procurement, and strategic advertising to enhance profitability, aligning with the growing food truck industry. The report emphasizes the importance of stakeholder returns and sets benchmarks for future growth, including a detailed five-year financial projection outlining revenue, cost, and profit figures. The document also highlights the significance of risk management, better management practices, and the overall positive growth projections of the company. References include works on the Socratic method, accounting, and financial markets. The report is part of a broader business plan developed by students at Medgar Evers College for the BUS 311 Small Business Management course.

Administrator
ACCOUNTING
ASSIGNMENT

Name of the Student:
Date: 30th November, 2018
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Table of Contents
Financial Analysis............................................................................................................ 3
References................................................................................................................. 5
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Financial Analysis
The company is starting in the food truck industry and the minimum investment that
would be needed would be around $10000 initially, as the company is starting on a small scale.
The investment would be needed to get the required set up for the truck, to pay of the employees
and to procure the raw materials. The initial aim of the company would be to break even in the
least amount of time possible and in future then aim to increase the profits with procuring more
investment by expanding the business into different level (Boghossian, 2017). The aim would be
clock in a calculated growth of 10-20% in terms of revenue every quarter once the company
breaks even. This would also be directly proportional to the number of customers that the
company is generating with increase in the revenue. The aim should be decrease the total cost
and improve the profit marginally. Once the company has achieved the stability, the company
can expand to different methods. Given that there is huge increase in the food truck business
from 7.9 percent over past five years and there is huge scope with respect to the Brooklyn
Solutions, also the company is aiming for healthy food options so that would help the company
in definite ways.
Now the aim of the company would be to reduce the cost projections as much as possible. For
this the company should try to procure resources from such end in which the cost is as least as
possible. The company should also try to opt for ways of advertisement by which the overall cost
would be less, aiming for ways by which the cost is minimum so that would be the aim of the
company in different ways possible, and this should help the company to grow and generate
more revenue. The company will also get registered, so the aim should be to give the best returns
to the stakeholders of the company, as they should be given best returns for the investment that
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they are doing (Coate & Mitschow, 2017). So, the future growth projections should also be to
increase the return on investment and that would be possible with increase in the total revenue
and investing in different areas so that more revenue is generated from different areas. So overall
it can be said that the future growth projections of the company seem to be positive enough so
that the overall return is more. The company should also set benchmarks with respect with what
we see in the future five years in the coming time and compare the same with the actual results
which would help the company in knowing the loopholes that are there are they can take the
important steps to overcome that. Overall the company should also aim for better management in
the future as that would help in more growth and better decision making. The one thing that
needs to be understood is that risk and return goes hand in hand and that should be the aim
(Kusolpalalert, 2018).
Years Revenue Cost Profit
1 20,000 10,000 10,000
2 23600 10500 13,100
3 27848 11025 16,823
4 32860.64 11576.25 21,284
5 38775.56 12155.06 26,620
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References
Boghossian, P., 2017. The Socratic method, defeasibility, and doxastic
responsibility. Educational Philosophy and Theory, 50(3), pp. 244-253.
Coate, C. & Mitschow, M., 2017. Luca Pacioli and the Role of Accounting and
Business: Early Lessons in Social Responsibility. s.l.:s.n.
Kusolpalalert, A., 2018. The relationships of financial assets in financial markets
during recovery period and financial crisis. AU Journal of Management, 11(1).
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