Each month, I (Ryan) will publish an income report from my various businesses and income sources. As you know, I generate cash from online businesses, and then I invest the profits into both other businesses and more traditional “investments”, and these reports will record the results of my income sources and the investments.
Why share numbers and specifics?
In my years of teaching and practicing entrepreneurship, the most educational pieces have always been examples and follow along reports. Sharing the details of business seems to transfers theory into reality, and it is my hope that this will inspire you and educate you to be more free and more fulfilled.
There are a few things that you should know while reading these income reports:
1) I am terrified of details. Numbers are not my strength – creating new things is. Reporting every dollar and expense would drive me crazy, so I often round or provide estimates; this is not to mislead or stretch the truth, it is because my brain is trained to get an overall picture, and then measure progress. The exact numbers often escape me, and I do not care to get them exactly right every time.
2) Only a portion of this revenue goes into my pocket. These reports are not intended to show you how much money I am personally making, they are to report on growth, challenges, and the things that affect both. I have business expenses, a handful of great employees, and wonderful partners who share in the workload and in the profits. If these reports were an attempt to brag about how much *I* make, I would have absolutely zero interest in doing them. Truth be told, I live on a very modest salary and invest the rest.
3) Both the highs and the challenges are shared. Wealth and freedom is not a straight line up – you will have bumps and setbacks along the way. If ever there is a reduction in the results that are being realized, it does not mean that something “does not work” or has failed, it is simply a reflection of the current marketplace. I will do my best to report on why certain numbers are up or down in a given month.
Why not share all of your business names and websites?
Sometimes, I will share the specifics of the businesses that I own, along with the products and services that they offer, but this (for now) will be the exception, rather than the rule. While I would happily share the details of everything that I do, I often protect certain details out of respect for my partners and for the protection of certain creative endeavors.
How are all of your businesses structured?
God bless my accountant, because it is a mess! My central business is called Ryan Moran Inc, and it is an S-Corporation incorporated in Ohio (my birth state – I now live in Texas). That S-Corp owns several other businesses, which are usually LLCs. My Men’s Health and Fitness company runs through my personal name, but I honestly don’t remember why we structured it that way (I’m not a detail guy). All of my consulting revenue comes through my S-Corp.
It looks something like this:
Now, let’s get to the breakdown for March, 2014:
Men’s Health And Fitness Company – $84,000
The men’s health and fitness company provides products to men who actively develop and maintain peak performance, and it currently serves as my primary work project. Most of our sales are generated from Amazon.com right now.
March was a combination of wins and challenges for the men’s fitness company. One of our products ran out of inventory right while it was setting daily sales records. Running out of inventory was inevitable because of a situation with our supplier, but it took some wind out of our sales. Recovery usually takes about two weeks after losing that much steam. Thankfully, the other product is still the #1 in its category and generates about half of our revenue, and it held strong.
On a more positive note, our daily sales numbers before the inventory loss were the best that they ever been, and they were well paced to produce over a million dollars in sales for the year, and this company is still just getting started.
Next move: there are four major points of growth that are in process. First, our next product is in production, and we are well positioned to make a nice splash into that market. Second, we are rolling out some new strategies to increase the overall customer value that I think will double our profitability very quickly. Third, we are developing our own sales channel apart from Amazon in order to have more control over the sales process. And finally, we are in the early stages of creating an information product to reach our target market and create a completely new revenue stream.
Zen Active Sports – $10,000
Zen Active Sports (www.ZenActiveSports.com) is a sports products business that currently specializes in yoga products. I am the investor and the advisor, while my partner runs the operations.
March saw Zen Active, my yoga products company finally begin to (slowly) get back on track. Because our yoga mats are oversized, there is a limit on how many we can keep in Amazon’s warehouse, so we ran out months ago. It was only this month that we were able to sell again, and we’re back to building, albeit slowly. These numbers reflect a few weeks of steady but slow sales.
Next move: while my partner (Sean) focuses on getting things back to normal, I’ve decided to infuse the company with $20,000 in personal cash to roll out our next line of products.
Supplement and Nutrition Company – $13,000
My supplement and nutrition company is a small venture with a friend of mine that provides high quality supplements in mainstream markets, and sells on Amazon. I am the investor and the advisor, while my partner runs the operations. How do I make money with Amazon? This blog post will explain it all.
In March, this company started to finally show some real life – up until then, it had been very stubborn. Out of all of my ventures, this one makes me scratch my head the most, because it hasn’t taken off as quickly as expected. We are competing with some major brands, but our slow growth has been a mystery to me.
This month, it finally started to show some life, having days with about thirty sales, which is where the sales need to be on a consistent basis in order to be really worthwhile.
Next move: my partner, Paul, thinks he may have identified a major point of growth, and we are experimenting with it next month. We both think it has turned a corner, and could grow by 20% or more next month. In the meantime, I have injected $10k of additional cash into the business to roll out a second product.
Consulting and Coaching – $44,000
Although not my primary business, I do keep two regular consulting clients for whom I write some copy and provide marketing strategy, and this is the income that I usually live off of, while I invest the money from other ventures. The majority of the income ($36,000) this month, however, were from a payment that came from a profit share from a previous client. I partner with well-qualified clients on a project basis to increase their business and generate new cash. The results are almost always extraordinary, and I take a small portion of the profits.
Next move: I had a very solid project-based client lined up, but he had a major health scare this month, which set the project back. I’m hungry for more project based clients, because I’m using the money from clients to fund my documentary, “Losing My Religion.”
Stock Portfolio Value: $19,500
I got crushed in the stock market this month, losing about 5%. Half of my portfolio is reserved for trading, while the other half is reserved for long-term investments. I add $500 per month to the long term investments.
I thought about investing a lot more into stocks recently, but I am very leery of the stock market right now, so I have kept most of my cash on the sidelines, while continuing my long term plan of steady investing into dividend and growth stocks.
Real Estate Income:
I sold most of my investments in the last couple of years, and I currently own just one single family house, while actively looking for more. This month, a renter moved into my house and signed a one year lease. I can’t decide if I should report on the equity in the home or the rent, so I guess I’ll do both:
House Equity: $81,000 (according to Zillow)
Monthly Rent: $950.00 + $1,200 in security deposits from the move-in (to be returned to the renter upon exit)
Until last year, most of my income came from my personal brand and the products that I sold under that umbrella. I was not happy with the direction that that was heading, so I completely shut it down. However, some income still finds its way to me through old affiliate sites or old autoresponders. The amount of income is not significant enough for me to report or worry about losing. Instead, my focus is on building Freedom Fast Lane in a way that truly represents my core values and makes the world a better place.
Total March Revenue: $152,000 (ish)
My time is currently spent on my three primary projects: my men’s health and fitness company, my personal brand (this blog), and Losing My Religion (my passion project).
My taxes got done this month, and I saved a lot of money last year. I contemplated where to invest that money, and I finally decided to invest it back into my businesses (hence the mentions of cash infusions above), as well as look for additional real estate. I’m currently working with two savvy realtors who are scoping out potential deals for me.
Finally, I desire more project based clients. The results that I’ve been able to generate for them is almost always extraordinary, and it’s very financially rewarding for both of us. I’ve tried a few methods to attract my ideal clients, but I haven’t found my sweet spot there just yet. We’ll find it, because this documentary is happening come hell or high water!
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