261 - November Profit Report

On today’s episode of the podcast I’m breaking down my November profit report and introducing my limited time offer to join Profit Rx.

But first, some quick takeaways from my time at Wedding MBA. These may be helpful to you too if you attend live events.

• I need to bring more books. We brought 118 books, 15 of which went to Conference Confident attendee gift bags, and then remaining 103 were sold at my booth. This was pretty spot on because we sold out about an hour or two before booth time closed for the conference. Next year I will probably take more but I have to budget for that since they need to be paid for upfront.
• People really want physical stuff. I was surprised by this because I do not want physical stuff and don’t like taking things home but I think Wedding MBA may be different because a lot of booths are selling software and memberships and things that are not tangible. When you don’t have physical things to look at there seems to be less urgency. Because of this, next year everything I plan to sell will also have a physical component. For example, I sold less Contract Templates and Bookkeeping templates than I expected to. Next year, when I sell the template I may include a printed copy of my tax deduction guide from within Profit Rx so there’s a physical takeaway to go with the template. Same with the Vault, I could put contracts in a book or notes on the different types of contracts and some Client Cure tips in there as well that people will get if they buy the Vault.

Now, onto November’s Profit Recap.

November Revenue Projections and Actuals

1. Profit Rx: $5,000 → $7,800
2. Vault: $6,000 (200 sales at Wedding MBA) → $6,000 (Actually $5,970) – surprisingly only about 50 sales at Wedding MBA and then a lot of affiliate sales from a new affiliate with 74 sales
3. Bookkeeping Template: $500 (50 sales) → $550
4. Book: $2,250 (75 sales) - $3,300 (we sold all our copies and had some post-Wedding MBA sales)
5. 1-on-1: $0 → $400 (I didn’t plan to do any 1:1work but I had a request for a one-hour consultation)
6. Bookkeeping: $1,200 (bring on 1 new client) → $1,200 (I did not bring on the new client this month but next month it might be you.

= $14,950 → But, we also had $2,500 in other income → Mostly from my "Braden Bucks" promotion in November which I may not do again and also annual renewals for Profit Rx from last year’s sign-up

In total, we brought in (almost) $22,000 in November and was the largest month of the year by far. Yay!

November Expenses

In November, I had $8,600 in expenses. This was 39% of my revenue which is much higher than I like, I want it to be under 30% to help get me closer to the year end profit percentage goal.

1. Affiliate payouts - $17.40 This was due to payment scheduling and I paid twice in October and then November’s was paid December 1st
2. Monthly tools - $285 This includes softwares like Zoom, Kajabi, Canva, etc. I slashed a few accounts this month I no longer need but this will increase in the coming months due to having more employees and needing additional accounts)
3. Team - $4,266 This was about 20% of revenue for the month. I usually try to keep this to 15% of the month but a lot of this went to Emily for working the Wedding MBA booth with me and to Connie who did a large project in November.
4. Contractors - $0 I don’t include my regular ongoing contractors in this line, I separate them for tax purposes but include them in team for my P&L. I include one-off project-based contractors in this line.
5. Marketing - $364 I pay for a lot of domains and they renew annually so they need to stay out of monthly tools but my monthly G Suite payments should go under Monthly Tools
6. Other expenses - $3700 In my expense tab in my spreadsheet I go down to November which includes a lot of meals and Ubers from Wedding MBA, a lot of Cost of Goods for books and then one refund I issued.

=60.47% Profit Margin for November

November Breakdown

Revenue: ~$22,000
Cost of Goods: $500
Expenses: $8,600

Owner Profit: $12,600 (Revenue – Cost of Goods – Expenses)
Personal Salary: $5,200 from the business and that includes taxes paid so that’s not what hit my personal bank account
Business Profit: $7,487 (this is not subject to self-employment tax in my S Corp)

Year to Date

I encourage my students to make a profit pie which is a pie graph with your expenses, salary and profit percentages on it.

Expenses: My YTD expenses are 43.3% which is much higher than my desired 35% for the year. I did the math and without all of the Drag Tax start-up expenses we’d be at about 35% so I can’t claim that to be a success, but it tells me the recurring expenses for the business are not out of whack so I don’t need to fire anyone or cut any major recurring expenses.

Salary: My payroll is 33.2% of revenue. That’s just my personal salary because employee salary is counted under expenses.

Profit: 23.5% which is close to my goal of 25%

View my Profit Pie here.

My goal for next year is to spend a little less on expenses. In reality, we’ll be spending a little more but also increasing revenue starting in December with the big launch currently going on.

On my webinar this week I shared my biggest launch of the year to help you get your bookkeeping wrapped up for the year, form your LLC or S Corp in January, get yourself on payroll and pay yourself appropriately, and other business tasks. My monthly membership, Profit Rx, is your prescription to building a healthy and wealthy business through tax, finance and legal trainings, live bookkeeping support, and support on managing difficult clients and sticky situations. If you join the program now, your first step will be to set up a meeting with our Client Success Coordinator to help you craft your success plan and what you need to complete in your business surrounding taxes, profit, business entity formation, bookkeeping, etc.

Learn more and join at TheProfitRx.com. The doors close on December 21st and the bonuses disappear so if you’re looking for bonus bookkeeping help and the option to hire us for tax prep come tax season you need to get in before December 21st.

December Projections

1. Profit Rx: $24,500
2. 15 new members on our annual plan - $15,000
3. 35 new members on our monthly plan - $3,500
4. Vault: $2,250 – I’m really hoping to get to 1,000 sales for the calendar year (we’re about 40 away)
5. Bookkeeping Template: $100 (10 sales)
6. Book: $300
7. 1-on-1: $5,000 This is pretty tentative. Based on how the launch closes will determine how many clients I can support 1:1 for LLC ($1,000) and S Corp ($1,500) formations. You can join our membership for the entire year for the same price and do it on your own with all the resources in Profit Rx plus the launch includes one-on-one support.
8. Bookkeeping: $1,200

= $33,350 in revenue. This is probably a stretch goal, but $25,000 would be fabulous.

To join Profit Rx click here.

Have questions about Profit Rx? Send me a DM on Instagram @bradenadamdrake