Well, this one is good news in the end, but it’s tempered a bit by reality of how 2017 went of course.
I had two MAJOR contributors to my business financial situation in 2017. One was being effectively shut-down for a full quarter. Yep, for 25% of the year I had only the slightest dribble of business income due to the in-process move. To be honest, it did hurt, I won’t lie. It definitely cut into my overall sales. The other was MAJOR capital expenses this year in the form of equipment, software, and other various tools. Big expenses are money going out, not coming in, and that has an effect on net profit. Long term planning here, folks, for long term benefit. I’m in this game to stay.
So, the big deal is, how much did this affect me and where did I end up? I ended 2017 with gross sales about $100 less than 2016. Hey, not bad for being shut down for 3 months. Before the big move was even on my radar, I had a growth number that I was shooting for. Had I been open all year I’m confident I would have made it. So there is nothing to complain about there. It means the 20% or so annual growth I’ve seen up till now is probably still sustainable if I continue to innovate, push new product, and go into new markets. Maybe even more. The business is healthy.
Now, the bigger thing to look into, is NET sales and NET profit. This is where things start to really shine, and the work is starting to pay off. Even after ALL those capital expenses, my NET income actually doubled from 2016. Yep, total sales stagnated because I was shut down, but I actually made more money. All the work at improving profit margins is paying off. Then factor this in, I put all that capital expense in at the END of the year. Take those extra expenses out and I would have seen nearly a 750% improvement in NET dollars.
Pardon me while I spit out my coffee on that one.
I’m really looking forward to 2018’s rundown.