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.
This month was a really badÂ 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.
The expenditures, on the other hand, have been normal. We had 4Â subcontractors through November, with two very new writers that are starting to publish regularly on INK. We didnât need any supplies, so all of that category was diverted into helping pay for the subcontractors while Grace was too ill to work. Software hasÂ 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)Â to be able to take credit cards online.
Graceâs take home is to cover some of the living expenses, such as bills, while her fiancÃ© pays the rent. She takes home only the income she makes from private tutoring, while reinvesting the rest into Insanitek.
Whatâs 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. Youâll be able to learn more about what we intend to do with this money in the Goal Transparency section below.
Last month we had set the goal to send out Giftly cards, but that didn’t happen. Instead, our growth investments needed to be used to pay the subcontractors. This is the cost of Grace being ill and not enough “passive” income coming in from other sales. We still have high hopes of being able to send out a token to our subcontractors before long though. This, sadly, hinges on more income coming in.
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 are simple and straightforward: Survive.
Yes, that may seem dramatic, but trust us, there are a lot of things going on in the background that means money might be a little tight due to needing supplies and the like. Mostly in the way of marketing. We are stepping up our marketing efforts in order to get our name out there. This means potentially more money spent for graphic designers to make things look awesome, marketing tools like adverts on sites, and other such things. However, if we can keep at least this minimum coming in, it shouldnât be a huge deficit. We will be keeping advertising costs as low as possible by using other avenues that we already have or are free.
One tool we are looking at investing in, though, is Wistia. Itâs a video hosting services for professionals. As in, itâs not laden down with YouTube advertisements, distractions and other things. Also, from a business aspect we can see where people are tuning out of our videos at so we can make them more engaging. Weâve been using the free tier for a while for training videos, but we are thinking it might be time to upgrade and use that more.