323 - January Profit Report
On today's episode of the podcast I'm diving into my January 2024 profit report.
If you're new to the podcast, I do these profit reports for a few reasons. 1) It's good accountability for me to keep up with my bookkeeping every month. 2) It helps me do my projections for the next month. 3) It provides a good example of what is possible when you regularly do your bookkeeping, do projections and really look at the numbers. 4) It's one of my core beliefs that money is more taboo of a topic than it should be and if we talked about it more we'd have more realistic expectations of what it costs to run a business.
Our Tax Season Workshop is back. During the workshop we will get you ready to file your taxes by wrapping up your 2023 bookkeeping, making sure the proper documents are collected and organized and getting prepped with video lessons from me and live Q&A sessions. At the end of the workshop you're ready to file on your own, hand your neatly buttoned-up package off to your tax preparer, or have us file. If you are looking for us to file, we are only filing this year for our students, members or anyone who goes through the workshop. Sign up at www.notavglaw.com/taxworkshop
Diving into 2024, let's take a look at the goals we have for the year. We set good, better, best goals of $300k, $400k and $500k for the year. It's a big range but we've seen big jumps in the past. We're aiming for 60% profit margin not including my owner salary. Other goals are to book four stage speaking gigs in 2025, have consistent $25,000 revenue months, and end the year with monthly recurring revenue at at least $15,000.
There wasn't a lot happening in January as we were heads down working with the 19 Unf*ck Your Biz clients we signed in December. We also resurrected Legally Launched from what it was a few years ago and brought it back as a $200 program that launched in January. If you purchased the $10 offer, this is different that that, we just really liked the name stole the name to use for this new offer. We didn't promote the launch much due to some family health issues and time I'll be taking off so I'll be doing 1:1 calls with the two people who joined instead of a group cohort as planned. That program is now evergreen that you buy at any time. We also launched our Contract Bot which will auto-generate your contracts and is an upsell to the Contract Club which you can get at notavglaw.com/club.
Let's review our projected vs. actual revenue amounts.
Projections vs Actuals
1. UYB - 14,000 → $14,400
2. Club - 1,000 → $1,140
3. Legally Launched - 3,000 → $500 (off-the mark but that's okay because didn't promote it as planned)
4. Monthly - 5,700 → $8,500 (includes monthly legal clients, monthly bookkeeping clients and monthly membership clients because we're restructuring our monthly offers for a clearer marketing message)
5. Tax - 5,000 → 0 (mostly because the clients we signed for this will role into February when I sent contracts and they're ready)
6. TM - 1,250 → 0 (Had someone sign up but that revenue won't hit the bank until February)
7. Other - 1,000 → $1,178
8. Low Ticket - 0 → $190 ($10 offers and my book, I projected $0 because honestly I forgot to make a projection)
Total - 31,000 - $26,000
Expenses
Team: $5,200 (about $1,500 more than I typically average which is because we're working with all our Unf*ck Your Biz Clients. This will be about double in February because our bookkeeping team is logging like 5x as many hours because we are doing full 2023 bookkeeping clean-ups for all our UYB clients and our attorney is logging a lot more hours working on contracts for clients).
Non-team contractors: $1,200 (folks I hire for one-off projects)
My wages: $5,600
Affiliates: $500
Worker's Comp Insurance: $45
Marketing: $905 (more than normal, included annual Squarespace renewal)
Client fees: $250 (the fee way pay to file a trademark on behalf of the client)
Other: $1,500 (I bought a new rug for my office and a few other things)
Definitely did not hit 60% profit this month because our expenses were more than 50%
Profit
Revenue: $26,000
Expenses: ~$16,000 (pretty high, will be higher next month)
Owner Profit (profit before Braden's salary): ~$10,000
Braden's Salary: $5,600 (about half goes to taxes)
Total business profit: ~$4,000
February Projections
1. Unf*ck Your Biz - 14,000
2. Club - 1,000
3. Legally Launched - 1,000
4. Monthly services - 8,700
5. Tax - 15,000 (this number will make or break the revenue for the month)
6. TM - 2,500
7. Other - 1,000
Total - 47,700 (That's wild to type and say. It'd be a record month for sure. Even if we only hit $35,000.)
What's coming up in February:
- The Tax Challenge
- Profit Rx onboarding
- Wrapping up UYB client work and rolling these students into Profit Rx
- Starting new UYB cohort in March (I won't be promoting this, we'll hopefully be filling all our spots from the waitlist so if you're interested, head to notavglaw.com/uyb to get on the list. The price will be increasing and we will be taking a smaller cohort.)
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