I said that I was going to stop posting financials, but I slacked off a lot last week, and I don’t have any remarks prepared for today. Besides, it’s logical to literally sum-up the year. My spreadsheet closes the year on Saturday, December 27, so these numbers (through Christmas) are final enough despite having nearly a week left in the calendar.
Do you see a recession hiding in here?
December 2008 vs. December 2007
• Total income: +75.5%
• Total COGS: +66.9%
• Total payroll: +49.6%
• Total expenses: +22.1%
• Net income (profit): +488.2%
2008 vs. 2007
• Total income: +71.7%
• Total COGS: +68.7%
• Total payroll: +79.7%
• Total expenses: +48.4%
• Net income (profit): +220.7%
In 2007, my gross salary plus profit came to $6,600, and I did not take out any of the $1,200 profit. Curio City paid out $5,400.
In 2008, my gross salary plus profit came to $16,400, and I took out $3,800 of the (estimated) $7,400 profit. $2,200 of my $3,800 goes to taxes. I put $1,000 of the remaining $1,600 into my Roth IRA and gave $600 to my wife. Altogether, Curio City put roughly $12,800 in my pocket, or more than double LY. (I took the payout as a stockholder loan repayment rather than a shareholder distribution, btw. The profit is applied to reducing my life-to-date negative retained earnings. Curio City now owes me $24,700 of the $28,500 that I invested.)
In 2009, I’m planning a 50% sales increase over this year – ridiculously ambitious in light of the collapsing economy, but not in light of 2008’s 70% increase. If I can achieve that, my gross salary should reach $13,700 and my profit should top $11,000; I will pocket $18,000-$20,000 of that. For my first act of the new year, I’ll raise my payroll percentage again to shift a little bit of that anticipated profit into my paychecks. And with a couple clicks on my spreadsheet, I am now paying myself 18% of gross, up from 17.75%.
Sales and traffic were both poor last week, but it’s a throwaway week anyway so I don’t read anything into that.
Welcome to Curious Business
Every Friday, I post a small insight into running Curio City and/or Blue Hills Editorial Services. My most recent posts are directly below. You can also start with the first post, or use the subject labels to the right to home in on particular topics. Feel free to comment on anything that interests you.