Last month's report included a whopping headline, record-breaking numbers and a whole lotta money paid to Facebook Ads. 💸
This month can be summarized as more of a... transitional reality check.
Transitional = I added two new people to my team (service providers).
Reality check = $50K months are not the norm around here... YET.
We still have a few more bumps to overcome.
So what happened in May?
In the first two weeks of the month, my focus was on hiring a Marketing + Tech Manager for my EliseDarma.com business.
That person joined my team by mid-May and then my next focus was to get them up to speed with my business as quickly as possible.
I shared my systems and processes and tools that I use to run my business everyday, and what areas needed their expert attention first.
That same week while on-boarding my new team member, I decided to host a live masterclass. 😀
In the past, hosting a live class would have stressed me out for weeks leading up to it. But this time, I intentionally chose the "cool and calm" route.
I had new materials to share about Instagram marketing with online business owners, and I wanted to see what their reaction would be like – live.
(P.S. if you ever have a new idea in your business that you want to test out, running a live class is the BEST and fastest way to gain valuable feedback from your audience. Hands down.)
So I held the class live on a Thursday night and soon after, I was off to New York City for 8 days of working remotely.
While the original intent for going to NYC was to attend a wedding and be with family, I decided to hang there for a whole week so that I could spend some more time in the Big Apple and meet with some business connections too.
Teachable is the platform where I host my online courses.
And in New York, I met the Teachable team at their office.
They were so kind that they let me work from their office the next day AND host an impromptu meet-up with some of my Instagram followers.
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I was shocked to see people stop by the office for a casual hangout. It was cool to meet some followers face-to-face and also get to know people who had gone through my course InstaGrowth Boss.
While New York was filled with fun and hangouts, my business continued to run along.
I had hired an ads manager last month so with their expertise in place, I was spending less on Facebook ads and therefore was generating less sales to the business than last month.
But this wasn't necessarily a bad thing!
The money that WAS going towards Facebook ads was getting a better return than the money I had put towards them last month.
So towards the end of the month, I was sitting at about a 50% profit margin.
If you've read my other income reports, you'd know this was an awesome margin to be at! 🏆
It's working! It's all working!
But, right at the end of the month, reality hit.
My reality check came in the form of more bills than usual since I had hired two new people to my team (duh, should have seen that coming), plus – I had a large payment due for the retreat that's happening next month in Portugal. #literallycantwait
While I had an extra pep in my step all month from my healthy profit margins, reality hit by the end of the month. 😀
Let's break down the final numbers for the month of May.
May 2018 Income
Affiliate income: $0
TOTAL INCOME BEFORE TAX: $32,994.67
May 2018 Expenses
Advertising and promotion: $7,903.42
Paypal, Stripe and bank fees: $162.89
(YES - this software is worth paying this much for each month 😛)
(Same with this one)
(And this one. Even if the annual fee came this month!)
Deadline Funnel: $49.21
Google Apps: $10
Amazon web services: $19.83
iTunes storage: $3.99
Independent contractors: $8,942.57
Accounting services: $325.00
Meals and entertainment: $829.20
Phone and Internet: $145.83
Training, education and events: $1,386.26
Flights, accommodations and Uber: $1,775.43
TOTAL EXPENSES: $26,093.96
Net profit: $6,900.71
Salary to Elise: $3,000
* = affiliate link
The profit that's left over after all the expenses is sitting at about 21% which is just about the same as last month.
To be honest, even with two new people working on my team, I had budgeted and expected this percentage to be higher.
But, there were some major expenses that renewed this month that I totally didn't plan for.
Initially, I was disappointed.
Disappointed that I didn't plan properly and that I let myself get caught up in expectations.
But at the same time, I was super proud of myself.
Proud of expanding my team and learning yet another business lesson in planning. (Do they every stop? 😂)
Plus, I know it's been a transitional month (there's that word again!) with large expenses that won't be repeated in June. Hallelujah!
And lastly, I know that I've now had a good few weeks with both of my new team members and I'm confident we'll be working faster and more efficiently together this month and going forward.
Perhaps even resulting in – dare I say – better profit margins for June? 😬
Takeaways for you based on my income report:
Plan, plan, plan.
Need I say more? I will. Because I need to hear it too. Plan by writing out those hard, irrefutable numbers. Put reminders of expenses and bills to come in your calendar. When looking to take on a new, large expense, ensure that you have the cash flow in place to sustain yourself through the initial transition until you can see the return in your business from that investment.
Don't be so hard on yourself.
It's too easy to be your own worst critic. At times where you feel like you want to beat yourself up, lean into your support network. Connect with others who get it. I published a whole blog post on this topic which you can see here.
Remember to have fun.
As entrepreneurs, we can be hell-bent on reaching our goals and then become grumps for those around us. In New York, I took it easy during the week and made time to hang out with my mom, my boyfriend, my group of friends in NYC and new friends during my meet-up at Teachable. Those experiences = priceless. My profit margins? Hey, they could be worse. 😉