cash flow

thanks for the response, but no one has said how much gross they do average a day for example; does a small cart do 2,3,4,5,6,7,8 hundred dollars a day? My cart will be 18 ft long with a 48 in grill for the dogs and three 40 lbs deep fryers and a really cool fancy diner car with neon signs and a good spot with super quality snappy dogs

That's almost impossible to tell.
Way too many variables to consider. You must know what your bottom line is to stay in business.
I don't think size of cart or equipment is a factor in what your looking for. Chow Jim

Cash flow is different from gross sales. For example, let's say that you have made 600.00 in gross, of which 450.00 is after-all-expenses-are-paid profit. You decide that at the moment, you want to stock up on supplies because beanie-weenies are on sale and they are a great seller for your cart. Since you only need 50.00 for immediate living expenses until your next close of business, you decide to take advantage of the beanie-weenie sale and spend 400.00 on beanie-weenies. You love a good deal.

The next morning you find that your deep fryers are on the blink and you call in the deep fryer repair guy. He wants $75.00, COD, for just showing up. At that point, all you have is the 50.00. Unless the deep fryer repair guy is willing to take some beanie-weenies as part of his payment, you've got a cash-flow shortage.

Google "Managing Cash Flow" and you will get all kinds of info on the subject. Use your Bank or a CPA as a resource. They have all kinds of info on the subject. Davebugg's post is a very valid one. From DAY ONE, you need to take a percentage of your NET Profits and create a cash reserve for unexpected expenses. You need to manage your cash outflow by planning at mininum, 3 months out. Longer is even better. Account and adjust for seasonal ups & downs in your gross business revenue.

Also check out:
www.score.org The Service Corps of Retired Executives. They have all kinds of stuff on managing cash flow as well as www.sba.gov Small Business Administration. All the info is FREE and FREE is really good for your cash flow!

quote:

Originally posted by Foodbme

..... All the info is FREE and FREE is really good for your cash flow!

ROTFLOL!!!

find a book titled "Complete idiots guide to running a restaurant" It explains all of this and taxes and everything else in real easy language and has lots of charts and forms you can use. Ive been in restaurant business over 30 years and this book helped me to get my ducks in a row.