July 2017 Income Report

07 Aug 2017

This is part 31 in my series of blog posts documenting my attempt to take BugMuncher from Side Project to Profitable Startup. If you've not yet read the previous parts, you should definitely start from part 1.

To borrow a phrase from Patrick McKenzie (or patio11 as you may know him), this month I put BugMuncher in to maintenance mode. This basically means I didn’t put much time in, and when I did it was only for customer support and bug fixes.

I know from experience that when I don’t put time into BugMuncher sign ups drop, threatening to take MRR down with them, in fact the aforementioned Patrick McKenzie found the same thing when he put his site Bingo Card Creator into maintenance mode, but I have good reasons for my lack of time investment this month.

Firstly, I’ve started working on that new project that I mentioned last time. I’m going to be building it as a minimum viable product, like I did with BugMuncher, unfortunately this new project is orders of magnitude more complex, so even just an MVP is taking a while to build.

I’ve made a successful proof of concept, and had some positive feedback, and I’m hoping to launch the MVP to the public in August. I’m also planning to write about the whole process of launching a Software as a Service business, so keep an eye out for that.

The other reason BugMuncher is taking a bit of a back seat is I’m getting married in the beginning of September, so wedding planning has been steadily increasing its claim on my cognitive resources. I’m really looking forward to the wedding and being married, but the whole organisation process has made both my fiancée and I understand why people elope 😊

The Figures

  This Month (July 2017) Last Month Change
Monthly Recurring Revenue $4,521 $4,420 2.51%
Income £2,967.70 £4,368.56 32.1%
Expenses £2,400.87 £2,341.81 2.5%
Average Month on Month Growth 9.0% 9.3% 3.2%
Paying customers 64 65 15.4%
- Personal Plan 20 21 4.8%
- Startup Plan 33 34 2.9%
- Corporate Plan 11 10 10.0%
Unique users on landing page 1,717 1,794 4.3%
New Free Trial sign ups 28 27 3.7%
Free Trial sign up rate 1.6% 1.5% 6.7%
New Paying customers 3 2 50.0%
Lost Paying Customers 4 2 100.0%
Free Trial to Paying conversion 10.7% 7.4% 44.6%
Profit £566.83 £2,026.75 72.0%

July was quite similar to June, a lot of red figures, but mostly green where it really counts. Income and expenses are back to normality, and I’m still making a healthy profit, so that’s awesome.

I’d estimate I spent 5 hours on BugMuncher this month, so that works out at about £405 / hour in profit revenue, not bad if I do say so myself.

Expenses

Supplier Expense Amount USD
Total £2,400.87
Me Salary £1,942.93 -
Me Home office allowance £57.07 -
Linode Hosting £39.68 $50
Digital Ocean Hosting £7.93 $10.00
SauceLabs Selenium Servers £54.76 $69.00
Pingdom Uptime monitoring £9.95 -
Barnstaple Work Hubs Co-working Space £180 -
Talktalk Internet £37.95 -
O2 Mobile Phone £13.00 -
Accountants Quarterly RTI Return £57.60 -

Nothing special in expenses this month, no sandwiches and no MacBooks.

Revenue

I’ll be honest here, I’ve stopped caring about that 10% MoM growth target, I only keep it on the graph for consistency. I’m not looking to conquer the world or make a billion dollar exit, as long as BugMuncher keeps paying the bills I’m a happy man 😊

Plans for August

BugMuncher will stay in maintenance mode for August, instead I’ll be focusing on my new project, as well as the wedding preparations.

Thanks for reading

- Matt

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Continue to Part 32 - August 2017 Income Report

Well shit. I mean, it was bound to happen eventually, and considering that over the last two months BugMuncher hasn’t received a great deal of attention from me, I really shouldn’t be surprised. But happen it did. BugMuncher entered recession, I finished the month with a loss in Monthly Recurring Revenue for the first time since I started working on it full time:

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