350 - July Profit Report

On today's episode of the podcast I'm reviewing my July profit report and sharing my August projections. 

To kick this recap off, I've been out of the office for a few weeks spending time with my husband's family on vacation in Florida and then to Indiana with my sisters to see my grandma and clean out my mom's house to get ready to sell. I'm back home just in time as August tends to be when things pick up and get busier so we're using this month to ramp up for that.

I also want to share a mistake I discovered in my bookkeeping. Where I found the formula issue was on my summary page which won't effect my taxes because I use my 1099 from Stripe and my expenses log that I keep for my tax return.

Basically I have one tab in my spreadsheet for misc. other income that includes old offers in evergreen, one-on-one offers we offer occasionally, etc. and I forgot to add these in which means I was underestimating my income about $1,000/month. I also had an issue where I was overstayting my expenses, my salary was double counting, and what that amounted to was that instead of operating at about a thousand dollars profit for the year like I thought, it's closer to $40,000. The good news is the business is more profitable than I thought. The bad news is that means I owe about another $5-10,000 in quarterly taxes I haven't paid. I share all this to stress the importance of looking at your numbers every week because sometimes it's going to take you awhile to catch mistakes and make sure you're on the right path.

2024 Adjusted Goals Recap

- Annual revenue: $300k is now our main goal as opposed to it originally being my low-end goal and I hope this will set us up for a big jump in 2025 because this year has been a lot more about refining systems than I thought it would be.

- Profit:  I started the year with a goal of 50% but now that I've found this bookkeeping issue I need to revisit this one and will circle back on it next month.

July Projections vs. Actuals

• UYB - $6,000 → $4,000 (I had a couple of folks on payment plans that finished in June) 
• Contract Club - $2,000 → $ 1,100
• Legally Launched - $250 → $250
• Profit Rx - $500 → $0
• Monthly Clients - $8,000 → $9,500
• Tax Services - $3,750 → $1,250 (I anticipated three trademark clients and we only ended up with one).
• Other - $2,000→ $4,300

Total: $22,500 → $21,000 (I'm not too bothered by this because this is what happens when I'm on vacation/in maintenance mood).

Expenses

Total team expenses: $7,000 (a little high but fine)
Monthly tools: $360 (I'm trying to get rid of a couple before next month)
Affiliate payouts: $76
Marketing: $1,100 (about 50% Meta ads, 50% web domains)
Other: $2,000
Total: ~$11,000

Profit

Revenue: $21,000
Expenses: $11,000
Owner profit: $10,000 (profit before my personal salary)
Business profit: $4,500

Year-to-Date (YTD)

This is something I recommend you all do even if you use Quickbooks. You always want to compare your revenue to that same time last year. It's not fair to compare your July revenue to February, it makes sense to compare it to last year's July and see what's changed.

This year we did $21k in July,  last year it was $17k, the year before that it was $12k.

YTD we are $11,800 ahead of where we were at this time last year which of pretty good. We need to finish the year $25k year ahead to hit our $300k goal for the year. With five months left to the year, we want to hit $5,000 more a month each month compared to last year.

Key Performance Indicators (KPIs)

• Audience growth: 10 new followers on Instagram, 12 new Facebook group members, 6 new TikTok followers, 70 new Threads followers (this is where I've been most active)
• Web traffic: 6,600 (lowest since March. I expect to go up in August)
• Podcast downloads: back to tracking this metric, had a small increase this month
• Email list subscribers: Slow growth 

What's Coming Up in August

• Summit coming soon!
• Working on determining profit margins by client/offer with the goal of doing more dynamic pricing
• Continuing to work on streamlining offers

August Projections

• UYB - $4,000
• Contract Club - $2,000
• Legally Launched - $250
• Profit Rx - $500
• Monthly Clients - $9,000
• 1:1 Services/trademarks - $1,250
• Other: $2,000

Total revenue: $19,000

Normally August would have higher projections, but we're starting and closing a launch/promotion in early September this year instead.

If you're looking for help with the legal and tax side of your business, head to notavglaw.com/quiz to learn more about the ways we can help you.