Budget Nerd’s April 2015 Income Report
Nothing sparks useful dialogue like real numbers. The table below lays out my revenue and expenses for the month of April.
A little context:
Consulting includes hourly consulting and my bookkeeping/CFO services.
Budget Nerdvana is a $30 home study course that helps you embrace your inner budget nerd — as opposed to your outer Budget Nerd, which is me. I’m definitely up for hugs, though.
Check out the table; then review the notes at the end. Your questions are welcome: I look at these numbers every day, so I don’t know which, if any, deserve discussion.
|Personal Meals & Expenses||-$25.00|
|Emily (Data Entry)||$0.00|
|Hosting & Domains||-$20.00|
|Computers & Equipment||-$17.75|
|Education & Training||-$184.95|
|Meals & Entertainment||-$47.19|
I expect to pay myself $6,000 per month in Owner Distributions, which means I came up $1,675 short in April. I’ll make it up in May, as I actually had the money earmarked for “Owner Distributions” and just didn’t make the transfer to my personal checking account.
My Business Loan payment is $829.42. The lender didn’t cash my check in April, so the May expense will be $1,658.84. I’ve already budgeted for both payments, so he can cash it in six months if he wants.
I’ve started training my sister, Emily, to handle day-to-day data entry in my clients’ budgets. (If you’re a client, we’ll be chatting about this on our next call.) The first outflow in this category will happen in May.
Brad is the designer who did the Budget Nerd logo. I’d like to hire him to work steadily on the brand, so I’ve added him to my budget and I’ll be funding that category for a while to see how the business handles it.
I have close to $10,000 set aside for Federal/State Taxes, just waiting to hear from my tax guy what I owe, if anything, for 2014.
My primary goal (other than paying myself $6,000 per month) is to build a reserve of $12,000. It doesn’t show up in my expenses, but my reserve balance currently sits at $2,500.
Goals and ‘Leading Indicators’
My goal for 2015 is to reach $15,000 in stable monthly revenue with $10,000 in pre-tax profit. I’d love to see Budget Nerdvana account for $3,000 of the revenue, which would mean 100 sales per month.
Other metrics I watch carefully include:
Email subscribers: currently sitting at 230, 55 of you having subscribed in April (thanks!).
Open rates: I run a 7-email welcome sequence to all new subscribers which is currently averaging a 62.9% open rate across 1,330 ‘sends.’ My weekly newsletter averages around 50% open rate.
Books gifted: In my sixth email to new subscribers I offer to buy them a copy of my favorite personal finance book. I do this because the book changed my life and because it helps me gauge whether I’m connecting through my writing. In April I gave away four copies of the book.
That’s the April report; I hope it’s of some use to see actual numbers in a consulting and digital products business. Questions and comments are welcome!