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Sliders Mobile Food Truck: Financial Plan

A business plan and marketing plan are tools used for financing the company by clearly explaining the sources of funding. Both the business plan and commercialization plan give a sense of direction of the enterprise. A marketing plan is very particular as it concerns the general organization’s efforts about marketing and marketing mix. The methods are very useful in that without these the overall strategies and goals would not be achieved timely and accurately. The objective of this work is to prepare the financial plan based on information from the business plan, marketing plan and the financial plan for Sliders Mobile Food Truck. The qualitative factors affecting the company are disclosed in the enterprise plan however, this is not sufficient to matters concerning disclosure and relevant accounting standards that recommend the preparation of the books of accounts based on a given format. The preparation of proper books of account is of significance to the relevant parties that have interests in the growth and continuity of the business. The parties involved include; the government, creditors, suppliers and other parties. A financial plan gives an overview of the resources required to execute a given project.

A feasible business will attract different stake holders as above-mentioned. For example;

  1. Customers-the customers are interested on whether the business will provide goods for a longer period.
  2. Employees- the employees are concerned about the ability of the company to offer better remuneration. It is illustrated by the financial statement. For this case, a poor performing company will discourage workers, and the effects may be adverse.
  3. The government- the government is interested in generating revenue in terms of taxation.
  4. Suppliers- willingness to continue supplying goods to the company is determined by the performance of the firm in the financial sphere.

The Financial Plan: Financial Statement

Assets

Non- Current Assets: Aed

Machinery………………………………………………………….. 40000

Other fixed assets …………………………………………………300000

Three trucks…………………………………………………………100000

Computers……………………………………………………………2000

Furniture and fitting…………………………………………………8000

Total………………………………………………………………..450000

Current Assets

Cash & cash equivalent…………………………………………..30000

Bank ……………………………………………………………….20000

Account receivables……………………………………………….50000

Notes receivable……………………………………………………20000

Inventory…………………………………………………………….30000

TOTAL CURRENT ASSET……………………………………….150000

e) Total assets (fixed plus current)………………………………600000

Liabilities

Keyviws suppliers………………………………………………….30000

Loans…………………………………………………………………20000

Accrued salaries………………………………………………………….50000

Total liabilities…………………………………………………………..100000

Net assets………………………………………………………………….500000

Financed by:

Capital…………………………………………………………………….430000

Additional investments…………………………………………………..70000

Totals……………………………………………………………………..500000

The annual income:

Sales of food products………………………………………………….200000

Rental income……………………………………………………………50000

Income from JK (debtor)………………………………………………..40000

Other incomes……………………………………………………………50000

Totals…………………………………………………………………….340000

Payments/Expenditures

Payment to suppliers……………………………………………………20000

Wages and salaries……………………………………………………..50000

Advertising expense……………………………………………………..2000

Tax expense/liability……………………………………………………..8000

Loan payment……………………………………………………………50000

Electricity expense………………………………………………………50000

Interest on loan…………………………………………………………..20000

Totals……………………………………………………………………200000

Annual Income Statement:

Details………………………………………………………………………………..AED

Sales…………………………………………………………………200000

Add opening stock…………50000

Purchases…………………..20000

Less return outwards……… (1000)

Cost of goods available for sale…………………….69000

Less closing inventory………………………………. (30000)

Cost of sales………………………………………………………………39000

Gross profit………………………………………………………………..161000

ADD. Rental income………………………………………………………50000

Other incomes……………………………………………………………..40000

Total income ………………………………………………………………251000

Less total operating expenses :……………………………………….( 200000)

Net profit…………………………………………………………………51000

The following summarizes how the financial plan that will match the business plan, market plan for Sliders Mobile Food Truck.

First, the company has current and fixed assets. The current assets include cash, bank, account receivables and notes receivables respectively. The non-current assets include machinery, furniture and fittings, three trucks and computers totaling to AED 600000.The working capital is given by current assets less current liabilities. The statement consolidating the information of assets, liabilities and the owners’ equity is known as balance sheet. The information relating to sales, purchases, expenses and revenues are captured by the income statement. The latter provides an effective way to calculate different ratios such as profitability and operating ration respectively.

The annual net profit for the company is 51000, which is depicted by the income statement for the entire annual period. The monthly sales have to be increased through massive advertising campaigns and advertisements. The profitability ratio, which reflects the net profit margin for the company is 25.5%. The resources can offset the available liabilities. The business plan takes precedence and provides a suitable avenue for the provision of finance to improve the business by consolidating the parameters in the business plan. The financial plan, market plan and business plan are highlights of the various components that could be important to the company’s growth and strategy.

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