306 - September Profit Report
On today's episode of the podcast I share my September 2023 profit report and goals for October.
I do these every month to show an example of how you can go about budgeting and understanding your numbers while also giving a real life example of how much it costs to run a business. It is important to note that my business is not indicative of every kind of business. Whether you do or don't have a team and depending on how much you do or do not work, how many ads you run, if you have a product or service based business, those are all factors that impact how much it costs to run your business.
Big goals for 2023
1. Consistent $20,000 months by Q3. Missed it this month. First half of the year was strong and we're 6/9 now, which I still counting as a W. This has taught me that I see high spikes in income in the beginning of the year but just because I see it then doesn't mean it will last all year.
2. Get MRR to $20,000 by end of year. We're pivoting that to a 2024 goal. It's probably more of a 2-3 year goal so more like we will focus on starting to build to it.
3. Get expenses under 35%. → Changing to 40%. Year-to-date we're at 43%
What Happened in September
- Not much really, no big promotions
- Was really just a month of working with current students and clients, running the business, and planning ahead.
September Projections vs. Actual
Low Ticket: $1,500 → $1,800 (awesome! Of this $1,290 was Contract Club)
UYB: $1,400 → $1,200 (This payment may have processed at the end of the month which was on a weekend and we may see next month)
PRx: $4,000 → $4,000
Legal: $8,600 (6 trademarks) →. $6,100 (this was really the only difference and we will probably get better at these projections)
Total: $18,500 → $16,600
Let's go through the expenses and talk profit...
This month was not as high as I expected because I paid for a lot of expensive stuff at the end of August and the beginning of October for a couple big projects and Wedding MBA.
Team (employees and contractors)- $2,200 (Payments to employees, does not include my pay)
Monthly tools - $400
Marketing expenses - $460
Meals - $100
Online programs - $300
Client fees - $500 (fees we spend to file the application with the trademark office when you hire us to do your trademark)
Other expense - $500
Affiliate payouts - $550
Cost of Goods -$2,400 (This is unusual for us because typically our only CoGs is the cost of printing our books but this month I ordered 150 books to take to Wedding MBA)
Expenses - $5,000
Owner profit - $9,000
Salary - $5,300
Business profit - $3,700
COGS - 2.3%
Expenses - 40.9%
Salary - 21.5%
Profit - 35%
I need to increase my salary, expenses need to come down 5%, really what I need to do is take 3 of that 5% to salary and the other 2 into business profit. I have this visualized in my profit pie.
Doing a big affiliate push in October (To become an affiliate, go to notavg.com/affiliate)
A potential exciting update with the Contract Club to make it even better, which also means a big expense
Working on Profit Rx
Low Ticket: $3,000 (big goal, closer to $1,500 to $2,000 if people don't get in on the affiliate push)
Legal: $8,000 (3ish trademarks and a couple LLCs)
Tax Filing: $2,500