For event and leisure



Business plan and cash flow planning continued
The figure you are left with is £655, this is your net profit figure and the amount that you are left with to do as you like. Obviously the amounts will alter depending on the amount of burgers etc you sell, the price you charge and the day to day running expenses you incur to run your mobile catering business.

Now from using that basic equation you should be able to work out (assuming that you can repeat those amount of sales at least once a week or over a week) your annual expected turnover, gross and net profits. £1,350 sales x 52 weeks = £70,200 x 70% = £49,140 gross profit - expenses £15,080 = £34,060 net profit.

Not quite the tens of thousands of pounds per event but still a respectable annual income that with a possible extra 5% gross profit and a small reduction in business expenses could easily raise the figure to around a £40,000 a year.

But why do we need to prepare a business cash flow plan? Two reasons mainly, one is to teach yourself business basics, if you don't understand or grasp the difference between turnover, gross profit and net profit and how to get to those figures then maybe running a mobile catering or any business is not really for you. Secondly if you are trying to raise capital to purchase a catering trailer or equipment perhaps from a bank you need to demonstrate to the bank that you understand your business, how it works and project expected profits to repay any borrowing.



The initial idea
Have you ever considered starting your own mobile catering business?
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What's involved
It looks so easy, but what's it really like running your own business?
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Where to trade
Plan where your customers will be and where you can legally trade.
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Foods to sell
Something unique, different, in tune with food trends and that will attract the buying public.
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Business plan
Financial planning is essential for your new mobile catering business to work.
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Improving your gross profit margin
The less money that it costs you to buy the initial ingredients for the finished product that you are selling the better your gross profit margin percentages will be. Look at ways to reduce the cost of those ingredients perhaps by negotiating and ordering larger quantities, look at portion control, can you guarantee that every same item you sell costs the same to produce. Look at where you buy your ingredients, have you tried catering wholesalers, frozen food distributors and cash and carry outlets. Without compromising the quality of your products it is possible to make savings, 5 pence saved on every burger can make an enormous difference, if you sell 1000 burgers you will make an extra £50.00 profit. If you sell a 1000 burgers a week, that's £2,600 a year and so on.     


Self assessment tax forms

Although many people like to do and submit their own self assessment tax returns according to recent published articles up to 30% of returns are completed incorrectly. Far easier to employ the services of a good accountant who will, over the years save you money in the long run. For those with very small businesses employing an accountant may seem like an unnecessary expense, but as that small business develops into a bigger business with more complex finances your accountant will be able to help and advise on how you can reduce your future tax liabilities and bills. Many accountants base their fees upon how complex your finances are and the amount of time anticipated to complete your accounts, so the more well kept and organised your records and receipts the cheaper your accountants bill will be.

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