Transparency Report, Dec. 2015

As part of our ongoing efforts to be transparent with our clients and the world, we decided to publish a monthly transparency report. This information shows the financials of Insanitek. The goal is to be open and honest about the money flow of a bootstrapped science incubator.

We’ll be honest here. We seem to be in a little bit of trouble. Not a drastic problem, but a little bit of a problem.

Financial Transparency

Last month was a really bad month for Insanitek. Despite severe illness, Grace was able to bring in $708.53 through tutoring efforts, but we bought in nothing via other sales. This month is slightly better as Grace wasn’t ill, but the deficit we faced last month was a pit to fill. Between that and the end of the year renewal fees, we are not doing much better in terms of stability.

Revenue wise, we are up $123.86 compared to November to a total of $832.39. That isn’t hard considering Grace taught all days this past month. Still, we did not make any sales and bring in any revenue elsewhere. We have, however, started adding PDFs of our teaching supplies to Teachers Pay Teachers in order to help generate revenue and spread the word of our existence. (We will have the same files up on Knowledge Conduit for people to acquire at Pay What You Want Pricing.)

Expenditure wise, it’s been painful. The end of the year is a classic time for sales, but on top of that, it’s also a classic time to make last minute big purchases so you can take money off on taxes. We use the growth investment fund to buy one thing on our wishlist, whether that is a new machine, software, or something else to increase the viability of Insanitek. We also use the growth investment fund to purchase gifts for our long standing clients and long standing subcontractors.

All of this is on top of the normal expenditures, like subcontractors and putting away money for the recurring software. We had 2 active subcontractors through December. We didn’t need any supplies, so all of that category was diverted into helping pay for the subcontractors while we still tried to make all our wishes come true. Software has recurring fees that never change, thankfully, so they are predictable. We use:

  • Buffer ($50/month) to manage our social media
  • Aweber ($19/month, paid annually*) to reach out via email
  • Instapage ($29/month, paid annually*) to make our landing pages awesome
  • Zapier ($15/month) to help automate things while we all go about our lives
  • Xero ($30/month) to keep the accounts in order and legal
  • PNC bank ($30/month, plus 1.5% fee for every use) to be able to take credit cards online.
  • ActiveInbox ($35/year) allows us to sort our inboxes into projects, clients, and keep things organised.

Grace’s take home is to cover some of the living expenses, such as bills, while her fiancé pays the rent. She takes home only the income she makes from private tutoring, while reinvesting the rest into Insanitek.

What’s left after paying subcontractors, software fees, and some of the bills goes to what we call Growth Investments. These growth investments is the money we use to spend on something in the future that will allow us to grow. You’ll be able to learn more about what we intend to do with this money in the Goal Transparency section below.

The gift Grace bought Insanitek was Six Appeal On Demand by the House of Moxie and Ash Ambirge. (The 2015 version has been taken down and is no longer for sale. However, next year she will have it again.) This on demand course is to help us with our copy writing so we don’t put you — or us — to sleep.

Goal Transparency

Accomplished goals:

We stated that this month we wished to get our income back over $1000 a month. We realised we fell short this month due to the private tutoring students on holiday for two weeks and Grace tutoring less at the homeschool students in order to work more on Insanitek while teaching at Kaplan College this quarter. The problem is that Kaplan hasn’t paid Grace yet for her services.

Future goals:

For the month of December we have set the humble goal of getting our income back up to $1000+ a month. This will be less challenging because Grace works at Kaplan this quarter, so she will use the income from that for her personal bills and divert her private tutoring income into Insanitek. If all goes well, we hope to add another team member to our team who will be a business assistant and help things flow better.

Q4 goals were simple and straightforward: Survive.We have barely managed to accomplish that, but we’re hoping that next year starts off on a better foot and Kaplan College is more reliable in their payments. Holiday times are tricky when it comes to getting paid.

Q1 goals will be to get our shit straightened out and to survive. More on that in January.

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