Home › Forums › Restaurant Professionals Forum › Professional Hot Dog Vendors › Can Anyone be the Voice of Reason on my Projections? – Please!!!! › Re:Can Anyone be the Voice of Reason on my Projections? – Please!!!!
So a business plan for a NEW venture should ONLY detail the minimum required cash flow to service the overhead and stay in business. …. A business plan should also include a site-location study. This study should determine the traffic flow & demographics for users of your products & services and show IF the minimum expectations are obtainable. ….. If there are other food vendors in the area, do a study based on the number of sales they make per hour vs. the amount of foot traffic going by their location. If you did 1/4 of the sales of the other vendors, would your minimum cash flow be met? …. Also, since you are selling “American” type food, how many or what percentage of the traffic is American?
This is the info a good business plan should be telling YOU. … From this you should then know based on your available funds how long you can support yourself while building up the business; when to look for another location if the current location is not working; or find another job. ….. Forget middle & high projections on the business plan. They are irrelevant. …. Anything above minimum cash flow is GREAT!
Great advice – cheers!
There is no other American food anywhere near. I am actually expecting (if my dogs are good enough) for Americans working in the business district to make an effort to come to my cart. The funny thing is that unlike Wall St, vending carts are not allowed in that area at all. I am just a few minutes walk or one tube stop or a 2 minute cab ride away.
I hear you guys re. quality and i intend to offer it for the premium dogs, but I am worried that I won’t get enough basic sales if I don’t offer a more affordable option.
For a location study, do it on any food vendor (or all) available. This will give an idea of percentage of traffic that is willing to buy on the street vs. eating at a sit-down restaurant. …. Most of these people like variety, so it will be up to you make them a regular customer.