Organizations are persevering through the pandemic as many begin to get vaccinated and operate in safer environments. As a result, they are investing in their Wi-Fi and network infrastructure.
I continue to create these income reports as a view into how I run a side business while working full-time. Occasionally, I will share my experience, trials, and challenges we run into. And maybe you’re starting your own business but need some guidance or view into how others do it. When I started Packet6, I did not see much content on how I should approach certain business decisions. Be sure to view my previous Income Reports and business topics for further insight.
Revenue declined 63.3% compared to the previous quarter. The first quarter of 2021 brought in $53,477 in total revenue. The business is fueled by the Professional Services offered at Packet6. Lower revenue isn’t a result of the pandemic.
Professional Services declined 34.75% and remains to be the primary focus and expertise of Packet6.
A large amount of work arrives as referrals but this year we have implemented a sales process.
Reselling activities accounted for 32.5% of revenue. Leveraging our partnerships we sold Meraki and Fortinet firewalls along with Mist access points.
Expenses increased by 54.7%, totaling $65,765. This includes the equipment purchased and resold to clients. Much of the income earned doesn’t get realized until 30 days later (Net 30 terms). Doing Net 30 terms still have to get used to as a business owner. What it essentially means is I have to wait about 30 days until a client pays for the equipment. Equipment sold accounted for 31% of expenses.
Included in the expenses is salary as well. There are a total of two employees at Packet6. The salaries account for 37% of expenses. My number one advice: Pay yourself first.
This quarter, we invested in Sales and CRM software to jump start our sales process. We don’t expect to see an ROI this year as we get familiar with sales but we do anticipate progress on the sales front. There’s an indirect cost as well, which is time. The process includes searching for ideal clients and prospecting. I’ve talked about my thoughts on the sales process on my YouTube channel.
First quarter went by quickly. I realized that we need to reflect on what is working and what isn’t on a more frequent interval. Leaving these tasks to quarterly or not at all doesn’t provide any mechanism to adjust fast enough. We now have a meeting to discuss all activities every other week.
In the previous quarter, I made comments about hardware and software sales being a weak area of the business. I’ve invested time and money into developing a sales process that fits with my workflow.
Packet6 still remains to be a side business. Conducting sales is not an activity I can perform throughout the day. My goal is to create a process that increases my efficiency in the sales cycle. Largely, this occurs early in the morning and is tied back to a CRM for tracking. We will see how this performs over the course of 2021 and what adjustments I’ll make.
Running a side business can be very stressful and exhausting. Look for signs of burnout. Get adequate amount of sleep, exercise as much as possible for a clear mind, and eat healthy. I’ve had my moments of having a super full day. Starting early morning with sales, then jumping into my full-time job responsibilities, and handling side business activities in the afternoon.
Packet6 specializes in reliable, simple, and seamless enterprise Wi-Fi. It’s a side business operated by two people. Packet6 is also a Cisco/Meraki, Juniper/Mist, RUCKUS, and Palo Alto Networks partner.