June Report and July Goals
I have to admit I have felt pretty discouraged these last few weeks. It is a result of a culmination of issues going on. I’m beginning to understand what they mean when they say startups are like staring into the abyss.
The fact of the matter is I am stretched so thin it is starting to enter my psyche. A realistic objective look at my situation says my business cannot survive to the end of this year. Not without an infusion of cash.
That’s a dreary outlook, and instead of encouraging me to hustle, it has been discouraging me and sending me into an emotional tailspin. I keep wanting to tell myself, don’t worry, it’ll work itself out. But I know it won’t. Not without serious effort from me. Shit doesn’t just fall in your lap. You have to go get it.
That’s why I’m adding a goals section to these monthly reports. The purpose of this blog has always been to hold myself accountable and I want to have a more concrete way of doing it.
No major milestones were hit in June. The next major milestone is to sign a lease to a physical location and begin renovations to make it operational. This is also my #1 priority in July. I should have accomplished this goal, or at least made significant progress.
To my surprise, sales actually increased from May to June.
You know the most important thing I’m learning about being in business? All you have to do is make sure your revenue outruns your expenses. That’s it. If that happens your business is profitable. It may not be scalable, but it is profitable!
I’m not bitching about the growth in my revenue, but right now the growth in my expenses is going up faster.
The solution is sales. Sales cures all. And I can say it a million times but until I do something about it, until I get my ass out there and sell, it means nothing.
The solution to my problem is very simple, execute the same successful formula I used at the Mosaic to make similar partnerships with other luxury apartments here in Dallas.
I’m going to advertise more on Instagram in July to supplement the Google ads. I also have 2 marketing plans. By the end of the month I want to design and create a decal for the back window of my car. I also want to send out an email offer to current customers.
Overall I’m happy with my marketing and branding efforts. I believe there is a market for laundry service in this area and I believe that I can create a sustainable long term business within this market.
I’ve been fighting hard, keeping a super close eye on my expenses trying to keep my cash on hand north of $3,000. Unfortunately I couldn’t keep it going and already in the first week of July I’ve had a couple of major hits: a personal expense that I had to take money out for, and sales tax for all of Q2.
I do have a check from my brother for the amount of $10,000 that I will deposit this week. This would be a 6-month extension of my runway. But that is not the purpose of this money. The purpose of this money is to open a retail shop. We’ve discussed it extensively and we both believe by having a brick and mortar shop people can come drop off and pick up their clothes will bring in much more revenue.
Obviously, I’m leaning heavily on my brother to get this thing off the ground. But that’s the reality of my situation. I have no other recourse. And you can bet that acts as motivation to keep pushing forward despite the emotional roller coaster this thing has become.
Profit and Loss
Here is the year-to-date total:
We actually dug out of the hole a little bit from last month, but that is meaningless when I am pulling out large chunks of cash to pay for my living expenses. It is imperative for sales to continue to grow and eventually catch up to the expenses. The expenses have a ceiling, the sales don’t.
I have 3 major goals for July
- Sign a lease on the retail location and begin renovations.
- Send out a special offer via email to all current customers.
- Design and create a back window decal for the delivery car.
Bonus: Make a partnership deal with at least 1 apartment complex.
This story is part of a series documenting the journey of a 2016 Dallas startup called Feather. For your reference here is the Table of Contents for the series.
My friend thinks my business plan sucks. The plan is a path to profitability that includes taking on debt to secure a…medium.com