This is the second open financial report of my business as an independent creator and consultant.
Let’s start with the summary first and do a break-down further down this post. If all you care about is “how much money is Mattias making”, you can probably stop looking after the first table.
|Total revenue||Total costs||Net profit||Delta|
These numbers don’t mean much in and of themselves, so let’s dive in.
Last month had pretty high accounting costs for the start of the business. Things have cooled down a lot now.
Overall, most money was spent on:
- Social security, healthcare & pension plan
- Digital Ocean server equipment
- Internet, cell phone subscription, electricity & gas for my home office
This was a quiet period with little to no special costs: €1,493.00.
Oh Dear! is the monitoring SaaS that Freek & I are building. We employ a 30/35/35 rule for our revenue: 30% of our revenue gets re-invested in the company (advertising, art designs, external freelancers, …), 35% goes to Freek, 35% goes to me.
|Total revenue (VAT excluded)||€5,536.88||+6,5%|
|30% to marketing/investment||€1,510,08||+7,2%|
|35% to Freek/Me||€1,762.91||+7,2%|
Note 1: costs are averaged and rounded to the upside, to keep budget available for sudden spikes in activity (aka: more server capacity needed).
DNS Spy is a much simpler product than Oh Dear. It has less features and only focusses on DNS, a much more narrow use case. As a result, its proceeds are also lower.
DNS Spy is owned and operated by me, so all profits flow to me directly.
|Total revenue (VAT excluded)||€1,526.34||+36%|
I had a killer month for DNS Spy. I’ve been able to capitalize on a popular Hacker News article that Cloudflare deleted DNS records. I promoted DNS Spy in that thread and it got several new signups because of that.
Lesson learned: always be selling!
The weekly newsletter is accepting sponsorships, and it’s already booked until the end of April. Some of those sponsorships are paid in advance, but I want to show them as monthly income here (so I’ll count the weeks that the sponsored content has appeared in the newsletter).
In February, there was a single issue of the newsletter with sponsored content. Next few months are fully booked, so this revenue is guaranteed to rise in the upcoming months.
|Total revenue (VAT excluded)||€275.00||-|
Costs are pretty fixed for the newsletter, so profit will increase greatly over the next few months.
To summarize, here’s the revenue and costs per income stream.
|Business costs||-€1,493.00||- €1,493.00|
Gross revenue of €3,564.25, which adds €1,905.25 net profit to the bank.
I paid myself the same net salary of €1,000.00 as January. Things are looking better, financially, but I want to keep a buffer in the bank for unexpected expenses.
Extra note: because I now own a business, I get to (partially) pay things like my home office internet, electricity, heating, … with pre-tax revenue. This allows me to receive a lower-than-before salary while keeping the same standard of living.
Hours worked vs Money made
I received an interesting question on Twitter as feedback of last months’ report: how much time did I spend working to get that revenue?
This leads me to an interesting statistic I want to keep track of: what am I worth per hour?
For February, it comes down to:
- Hours worked per week: 30h (= 120h in the month)
- Total revenue: €3,564.25
- Hourly revenue: €29.70
It’ll be exciting to see how that hourly revenue evolves!