Sept Financial Update
September 2024 books have come to a close. With our third month in operation completed, we have a good view of how the business is operating, what is and isn’t working, and what we need to do next to continue improving.
Revenue and Sales Performance
Product revenue was at a complete halt. Pushing friends and family can only get you so far. Product revenues totaled $0 this month. Without broadcasting Koffiyeh constantly, sales will just not occur. On the other hand, we gained $200.35 in donation revenue since we introduced a donation section on the homepage. It’s clear that Koffiyeh needs to connect with audience in a way that helps them make an impact.
Breakdown of Expenses
Running an online store comes with its set of operational costs. Here’s how our expenses were allocated in September:
Transaction Fees: $8.53 went towards taxes and fees as it relates to paying out our payment processors.
We had low expenses this month because we did not pay anything to our designers, cut out costs related to 3rd party connections, and did not pay for any marketing. We do expect to see higher expenses for October as we launched a new product and had design expenses related to the launch.
Profits and Donations
Koffiyeh generated $191.82 in profit in September. A 672% increase compared to prior month! This was done by allowing customers to donate cash instead of buying coffee to support our efforts. The current profit margin this month is skewed close to 100% as the only expenses were the transactions fees associated with collecting the donations.
Profit amount will be rounded up to $200 and donated to UMR under the Palestine Emergency effort. Koffiyeh also paid for the transaction fee so that usage of profits are maximized.
Looking Ahead
The month of September was great in terms of donations, but product sales were non-existent, but the month was very productive in terms of building relationships that should help generate more revenue in the future. Here’s what we are working on in the coming months:
Building partnerships with well established non-profits and content creators to help propel visibility of Koffiyeh.
Working with Muslim Student Associations within Texas to help grow our social media presence.
Developing new coffee blend to launch a second product by end of October or early November.
Creating a membership program to donors, so that they can have more say in the direction of Koffiyeh.
Partnering with event based coffee brands to have a greater reach to potential coffee lovers.
Continue on exploring options to wholesale Koffiyeh to physical locations.
