July is the seventh month of the year.
That means this is my seventh income report of 2018.
Most headlines... I try to get creative with a theme that happened in the month.
This time? I'm going with the straight-up revenue number in the headline.
What do we think about this new format? 😬
Lazy on my part? Perhaps. Getting right to the point? Perhaps that too.
If you've read my income reports before, you'll know that to me, the total revenue number actually ISN'T the point.
The revenue number is the sexy, flashy number that most online marketers use to sell their goods.
But me? I'm interested in what's left AFTER you've spent $12,000 on Facebook ads.
(More on that below.)
And I'm also interested in how much you're PAYING yourself.
You'd be surprised at how many businesses and entrepreneurs are operating at a zero profit level or worse, in the red.
But I digress...
Here's how my July went –– what happened to bring in $25K to the business and where it all went.
The month started off in a warm, tropical island... ARUBA.
I was there for a friend's wedding, but my boyfriend and I decided to make it a 6-day trip. We certainly enjoyed the amenities of the hotel, the casino and the restaurants.
In Aruba, I'd work a few hours each morning but this week was more of a vacay for me.
The following week, I was off to my hometown – Vancouver.
Another wedding was attended there on the beautiful Sunshine Coast of British Columbia... and then I was off to Alberta. Waterton Lakes National Park, to be exact.
This was a chill week spent with family and friends. I took a few calls here and there, but was mostly relaxing with the people I don't see very often since I live on the other side of the country.
Then I was back to Toronto for the third week of July and decided to kick things into high gear.
I could see that my ad spend was not generating the results I needed to sustain my business at its current level so I put together a special offer for those who were on the fence about joining my course InstaGrowth Boss.
This promo did boost my sales to a healthy place by the end of the month... but you won't see those sales reflected here.
Well it's kind of complicated to explain. But here's the short of it:
My payment processor is Stripe and as a Canadian business, Stripe does not deposit money into the business bank account until 7 days after the sale. My accounting software, Xero, does not put the sale into the books until the money reaches the business bank account. In my income reports here, I follow what Xero says – not what Stripe says. So everything is technically a week off, but as long as I'm being consistent with my reporting, that's what's important, right?
Anyway, less accounting talk and more numbers talk.
Here's how July played out for me.
July 2018 Revenue
Product sales (courses): $18,086.90
TOTAL REVENUE BEFORE TAX: $25,292.10
July 2018 Expenses
Advertising and promotion: $12,281.96
Paypal, Stripe and bank fees: $228.32
Teachable*: $0 (annual fee paid already)
Deadline Funnel: $90.14
Google Apps: $10.00
Amazon web services: $20.40
Independent contractors: $4,165.44
Accounting services: $325.00
Meals and entertainment: $388.67
Phone and Internet: $180.95
Training, education and events: $1,522.11
Flights, accommodations and Uber: $1,191.29
TOTAL EXPENSES: $21,361.04
Net profit: $3,931.06
Salary to Elise: $3,500
* = affiliate link
The profit margin for July lands at 16% which is not bad, but not great.
(Am I concerned about this? Read last month's report to see how I feel.)
As you can see from the above numbers, half of the month's revenue went to ads and then the bulk of it went to training, travel and contractors.
Is there room to trim the fat? Maaaaybeeee. We'll see how this month fares. 😁
After last month's report, I received a question about the tools I use in my business.
Could I cut some of the tools out to cut down on my expenses?
While the software I use to run my business isn't a huge expense in relation to my profit margin (it's about $1,000 for the month of July), I'd like to share with you which software I see as a NECESSITY and which are just for fun, an experiment or not necessary to the growth of my business.
100% NEED THIS SOFTWARE TO KEEP MY BIZ RUNNING AS IS:
This software is what my landing pages, sales pages and checkout pages are built on. Without this software, I wouldn't be able to generate sales for the products of my business.
This is where all my email subscribers live. Without this software, I wouldn't have any way of getting in touch with people who signed up for my freebies or who were interested in purchasing a product.
This software keeps my online school and courses running for me and my ~500 students.
Need to book a call or paid coaching session with me? This is the software that does this for me. Without it, I'd be missing out on connecting with new people and generating sales.
Yeah... I have a lot of files to store. Most live on my external hard drive. But I like keep duplicate backups.
This tool is very handy if you run evergreen funnels in your business. Without going deep into what a sales funnel is, this software allows me to share a one-time offer... that's *actually* a one-time offer. Once the countdown expires, the offer is literally gone.
This is where my inbox, calendar and drive come from. Very necessary.
JUST A NICE-TO-HAVE TOOL IN MY BIZ:
I do use this tool almost everyday in my business. But if I didn't have it, it wouldn't be the end of my business operation. I still have Illustrator and Photoshop as tools to accomplish the same job.
This tool helps me communicate with people over Facebook Messenger. While it's handy, it's not yet been integrated into my biz where I 100% absolutely need it to keep things running.
This is a newer tool for me. It's been helping me boost the organic traffic to my business through Pinterest. Handy? Yes. Necessary? No.
This tool provides social proof or testimonials on a sales page. I've yet to fully A/B test a sales page to see if it boosts conversions or not.
I use this tool to schedule posts for clients. It's very useful to keep client work moving, but not a 100% necessity.
Another scheduling tool that's handy but not keeping the business afloat.
I've been toying with the idea of running a free "tools training" week where I show you exactly *how* I use the top tools in my business to keep things running.
Would you be interested in something like that?
At this point, this is just an idea. But if it sounds relevant to you, let me know by popping your name over into this form.
I'll be sure to let you know the details!