Hello Everyone, the month of July is already half gone, and that means I am a bit overdue in sharing my financial results for June. June was a roller coaster ride of a month for my business with my account being suspended, and some of my best sales days of the year. We’ll get into the details shortly, if you missed any of my past financial results posts, you can find them HERE.
We’ll get started with how my time was spent during June. I only worked on weekdays on this business for the most part. I took 2 working days completely off during June, and worked the remainder of the days. In total, I would say I averaged 40 hours per week on the business during June. There was a little over a day of sales lost due to the suspension, and there was a majority of a day spent working on getting my account reinstated as well. So not all time spent was immediately revenue generating.
Before we get to the numbers, there is one more topic to discuss. My goal with sharing my financial results is to show what can be done, and is not meant to be seen as bragging or anything of the sort. I want to show that working hard and sticking with your plan can pay off. If the results turn out to be poor at any time I will share that too.
With that said, let’s get into the numbers for June. I want to provide as much clarity as possible into what I am doing on a month to month basis (if you have suggestions for additions to these posts, please let me know!). The format will be the same as last month and I will be sharing numbers exported directly from my InventoryLab account. The numbers below will NOT be the exact numbers that go on my tax returns as there will be additional deductions not included here (cell phone, health insurance, etc.). It’s also possible that I missed a receipt or 2 and the spending numbers may be updated slightly. Also for clarity, this does not include any income from any other sources, it is simply my income from amazon and eBay.
The first screenshot will be of the revenues. To get a better look, click on this image (or any others in the post) to enlarge.
Now, the expenses for June:
These are screenshots of excel files exported directly from my InventoryLab account, which is the main accounting tool that I am using. A couple of notes are that certain items will only show up in one of the time periods even though they occurred over the course of the month, in these instances look at the total number for the month.
Net profit for June was just shy of $24K for the month which was an increase of about $8K over May. The largest driver of this was increased volume of sales. Gross sales were up about $35K compared to May, and this was the main reason for the increase in profits this month.
Expenses were on the high side this month. A couple noteworthy items, $1300 of the office expense amount relates to obtaining liability insurance for my private label product. Commissions/wages was up about $2300 over the prior month, and this was due mainly to the amount of product sourcing that other members of my team are doing for the business. For all of the details on how I outsource retail/online arbitrage checkout my ebook Outsourcing Sourcing.
Returns were a big number again this month, although as a percentage basis they were better than last month. As with last month this is primarily due to the experimenting I am doing in the clothing and shoe categories on amazon. Other than the aforementioned few expenses I have called out specifically, expenses were generally as I expected them to be. If you have questions on other line items, let me know in the comments below.
If you want to see any of the subscription services that I use that makes up the amount above, as well as the main products I buy for shipping supplies, my resources page, has a complete list.
Now, let’s take a look at cash flow for the month:
Cash flow for June was significantly negative. This negative cash flow was by design, as during the month of June I closed on a line of credit for my business. I had known early in June that I was approved, and actually closed on the line of credit on the day before my amazon account was suspended. In light of the suspension, and some risk analysis, I don’t plan to use the line of credit as much as initially planned for my business. As a result, I will be doing less spending on inventory during July.
The majority of the negative cash flow relates to spending on inventory. The office expense was up a good amount due to the private label insurance, as well as a closing fee on the line of credit. My goal for July is to spend around $75K on inventory with total cash outflows of around $90K. My plan is to maintain that pace for a couple of months and have a couple months of positive cash flow in August and September.
Now I will share some screenshots to provide some support for the above numbers I am sharing. Please note that the amazon sales number will not be exactly the same as what is shown above, as the screenshot below shows all orders that have been placed (but not necessarily shipped), while the above numbers are only for items that actually shipped during the month. Due to this the variance is to be expected:
Now, here’s a screenshot of my eBay sales:
Overall, this month was a roller coaster ride. It was my highest month of sales and profit outside of Q4, which was awesome, but it also included having my seller account suspended. I am very grateful that I was able to get that resolved and be up and running with relatively little down time. During the month I also had my first sales of my private label products. My launch was a bit derailed with the suspension, but I have been working on that more this month, and have been seeing some sales start to trickle in. I will plan on sharing more of that journey in future posts.
Last item for today, is that I will be starting a very exclusive coaching program that will be launching soon. The coaching program will be extremely hands on working with me and my team. You will be provided an all access pass to my business, including products I sell, sourcing methods, weekly recommended sourcing schedules, regular coaching calls, and on demand access to me. Essentially I will hold nothing back, and will do everything possible to make your business succeed. In order for this to be a fit, potential candidates should be looking to grow their businesses to making a minimum of $10,000 in profit per month, and have access to spend a minimum of $10,000 per month in total on inventory and business expenses. Only candidates who fit these criteria will be considered. In addition, it will be geographically limited, and will be limited to 10 participants nationwide. The coaching program will use similar to a franchise model, and the fee will be based on results to ensure incentives are completely aligned. If you are interested in learning more, you can get a PDF emailed to you with more details as well as how to apply by clicking HERE.
That’s all I have for today, if you have any questions or comments, please let me know below!