Financial Projections & Strategy

Comprehensive financial framework for sustainable growth and profitability in food rescue operations

Financial Objectives & Targets

Year 1 targets designed for sustainable growth and market penetration

Revenue Target

$175,000

≈ 25,000 meals × $7 average price

Gross Margin

≥55%

COGS ≤ $3 per meal

Break-Even Point

22,500

meals (fixed costs $90k ÷ contribution $4)

Partner Sites

10-15

strategic partnerships by Month 12

Active Customers

1,000

regular subscribers by Year 1 end

Cash Buffer

≥$40,000

maintained at all times

Funding & Capital Requirements

Strategic funding approach for launch and first-year operations

Total Capital Required

$80,000

Launch + first-year runway

Grant/Equity Funding$50,000
Business Loan (8% p.a.)$30,000

Use of Funds

Van & Fit-out
$25,000
Equipment
$10,000
Wages Runway
$15,000
Marketing
$10,000
Working Capital
$10,000
Contingency
$10,000

Year 1 Financial Projections

Comprehensive P&L and Balance Sheet forecasts

Projected P&L (Year 1)

Revenue$175,000
COGS$75,000
Gross Profit$100,000

Operating Expenses

Wages$60,000
Rent & Utilities$12,000
Marketing$6,000
Insurance & Other$7,000
Technology$5,000
Total OpEx$90,000
EBITDA$10,000
Depreciation$3,000
Interest$2,000
Net Profit$5,000

Projected Balance Sheet (Year 1)

Assets

Cash$55,000
Van/Equipment (net)$30,000
Inventory$2,000
Total Assets$87,000

Liabilities

Loan$28,000
Payables$4,000
Total Liabilities$32,000

Equity

Paid-in Capital$50,000
Retained Earnings$5,000
Total Equity$55,000
Balance Check$87,000 = $87,000 ✓

Assets = Liabilities + Equity

Cash Flow Management

Critical considerations for maintaining healthy cash flow

Monthly Forecasting

12-month detailed cash flow forecast tracking opening cash, inflows, outflows, and closing balance to ensure positive cash position.

Payment Terms

Suppliers paid within 14 days, customer payments processed immediately via app, maintaining optimal working capital cycle.

Seasonality Planning

Account for seasonal variations in food availability and demand patterns, with buffer strategies for peak and low periods.