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Income Report – May 2014 – $192,000

NOTE: May was a weird month in the sense that I don’t know how to classify certain areas of income. For this reason, the numbers may look a little bit “wonky.” Everything is explained in detail below. I also made some changes to my overall business, which are noted below, and a tweak in my investment strategy. I also update on my passion project, Losing My Religion, and share some notes on why one of my business did *not* grow this month. 

Each month, I (Ryan) = 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 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 my strength. 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:

businessorganization

Now, let’s get to the breakdown for May, 2014:

Men’s Health And Fitness Company – $160,000 

Plus Additional Revenue (Explained Below): $35,000

Total Revenue: $195,000

This one needs a little bit of explaining…

Up until now, my Men’s Health and Fitness Company has had one source of revenue – Amazon, and all of my income reports have included only this revenue stream. In May, this company took in $160,000 in sales from Amazon alone.

That’s a $30,000 increase from the previous month. Wow. Pretty damn awesome.

However, sales from our existing products have mostly plateaued at this level, so we have started releasing TWO new products in order to break through this plateau. It will be interesting to see what happens when these products start getting consistent sales.

Here’s where things get a little… weird: We were contacted this week by a chain of retail stores that told us that customers were asking about our products. WHOA! Due to customers demanding our products in their stores, they immediately ordered $35,000 worth of product to hold on their store shelves. 

WHAT!

Didn’t see that coming, but I sure enjoyed it. 🙂 It could be a sign of things to come and the next steps that we take to grow this company. Right now, we are on pace for about $2 million this year, which would already be my biggest business ever. Add in retail, and this could be a $10 million a year business in the next year or so. That’s freakin’ exciting.

That’s the good news.

The bad news this month was that we ran into some inventory problems because sales increased so much. We THINK that we have them all resolved, but that cost us a few thousand dollars. In addition, we’ve had more trouble getting other channels built – our funnel has been lagging, but that may have turned a corner toward the end of the month.

Our next steps: Very simply, we are rolling out two additional products this month, and working on a third additional product that should be out in July or August. Furthermore, once our funnel gets cracking, it could double our business.

Zen Active Sports – $16,000

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.

Phew!

Things finally got back on track at ZenActiveSports this month. We have FINALLY resolved most of our inventory problems, which have existed since the company started back in November. After this month (June), we should have everything resolved and have growth straight up.

Next move: our second and third product – a yoga towel and a yoga block – are on a boat somewhere in the Pacific right now, due to arrive in Amazon at the end of June. Things will probably be mostly flat in June until these new products arrive.

Supplement and Nutrition Company – $16,000

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.

The supplement company was flat this month – we neither grew nor shrunk. This is disappointing, because we expected to grow this month.

To be honest, my partner and I just lost momentum. We stopped meeting regularly (a mistake on my part – I thought we could get by without them), and neither of us really gave focused energy to the company. As a result, sales were flat.

Next move: we’ve added two new products to our line, but neither of them have sold at all. Our focus this month will be on growing these additional revenue streams.

Consulting and Coaching – $8,000

This month, I decided to stop taking consulting clients. It just hasn’t been the best use of my time except in a few rare cases, and to be honest with you, having consulting clients is hardly a business (the way that I’ve been doing it). That is why this $8,000 is NOT included in the monthly total for this month.

I have ceased all client arrangements except for one, and I will no longer be reporting on this as a category, since my time is better spent on my businesses.

From now on, this category will be classified as “Freedom Fast Lane” income, although there is currently no revenue except for the occasional affiliate promotion. I haven’t quite decided what to do with this category.

Stock Portfolio Value: $21,200

I changed my stock strategy this month. I had been using this area of my portfolio to take more risks, but I decided to stop doing that and instead follow a long-term growth strategy. I sold my short term investments and moved them all into long term.

I am currently invested in the following:
AGNC – my favorite REIT
V (Visa) – probably my #1 stock pick for the next few years
AMZN – they got SMASHED this month, so I bought more
JBLU – my favorite airline, and I bought them because they do a great job. I expect this company to grow for years, similar to the way that Southwest has
WFM (Whole Foods) – they, too, got beat up this month, so I bought 100 shares of WFM. This was a no brainer for me – this is a fantastic company that is well positioned to grow for years, and a customer base as loyal as Apple.

I’m not very happy with my lack of position in dividend stock right now, so I will be pouring A LOT into REITs over the next year. I expect a market correction on the horizon, and at that time I will consider investing a lot more into high dividend yielding stocks.

Real Estate Income:

I currently own just one single family house, while actively looking for more. This month, it needed a new air conditioning and some additional repairs. It’s a beautiful house, but it has been a major money suck.

House Equity: $81,000 (according to Zillow)

Monthly Rent: $950.00

Total May 2014 Revenue: $192,000 (plus some other additional revenue)

What’s next?

Two things are next for me:

1) I am focusing heavily on growing the Freedom Fast Lane podcast. You can help with this by helping me choose the content that I create next. Next month, I will be focusing very hard on jumping the FFL podcast into the top 25 Business podcasts on iTunes. I am 100% determined to make this one of the most downloaded podcasts.

2) My personal passion project, Losing My Religion, had a good first month, receiving about 2,700 downloads. Of course, it received a crap-ton of negative feedback, but it was mostly drowned out by an ocean of support.

If I’m honest, this month I felt a little bit flatlined. I am addicted to big wins, and this month was mostly just steady growth. The driver in me feels the need to constantly be pushing and pushing and pushing, and this month I took more of a back seat role. I have a few things going on in my personal life that I think dragged me down emotionally, but overall they’ve been healthy for me to process.

Here’s how you can help me going forward…

1) Leave a review on iTunes. I covet reviews. I also covet subscribers and shares. The more people that listen, the better I rank on iTunes, and I really appreciate your help.

2) Help me pick the next content for the podcast. I can talk for hours, but sometimes it’s hard to choose what to talk about. You can help by filling out this quick survey.

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