**Five Month Update**
Work is a little slow this week, so I wanted to come here and provide an update for those who have been following. Next month will technically be six months, but I'm slammed in November, so I wanted to come here and give a five month update.
Amount Invoiced:
-May: $7,765.50
-June: $7,422.50
-July: $5,195.74
-August: $3,742.50
-September: $7,329.66
TOTAL: $31,455.90
Monthly Average: $6,291.18
Notes: August really slowed down because I got very, very involved in two contingency matters (employment law). One case is on the verge of settling (probably in the range of $20-25k, so $4-5k for me), and the other is likely in the six figure range.
Amount Collected:
-May: $7,765.50 (100%)
-June: $3,732.50 (50.29%)
-July: $4,691.74 (90.30%)
-August: $3,742.50 (100%)
-September: $0.00 (Just mailed)
TOTAL: $19,931.74
Monthly Average: $4,982.94 (excluding September since those just went out)
Notes: One client is responsible for the non-100% months (the same one that didn't pay before). Their trial is set for this January. They have always paid, even though it takes some time.
Furthermore, I'm hoping for a big boost when these employment matters settle.
Another Note: I also have about $2,500 sitting in IOLTA. These are active matters that I'm billing regularly.
Appearance Fee Work:
-May: $500.00
-June: $1,450.00
-July: $1,460.74
-August: $2,112.50
-September: $1,537.15
TOTAL: $7,060.40
Monthly Average: $1,412.08
Notes: This is just for appearing at hearings. I basically do not turn these down under any circumstance. It's leading to judges knowing me on a first name basis, which can't be a bad thing.
Monthly Business Expenses:
I can't seem to get a monthly breakdown at the current moment, but I've spent $7,862 so far this year. The breakdown is as follows:
-Rent: $2,400 ($400/month)
-Materials and Supplies: $1,300
-Insurance: $1,200
-Taxes: $1,000
-Everything Else: $1,900
Notes: Most of my expenses were startup. I'm averaging about $650/month since June. The "everything else" includes a lot of meals and entertainment that I would otherwise do anyway, but include in my business.
Other Notables:
Criminal Appointments: Per the suggestions here, I am on the criminal appointment list. This is leading to a decent stream of work. I've made about $1,300 thus far because I am only doing the area courts (misdemeanors).
Office Situation: I mostly like my office situation -- good location, good conference rooms, and a quiet place to work for the most part. However, with things getting consistent and a little busier, I'm a little cramped in my 9x9 space. I think I want to get consistently to about $8,000/month before upgrading. I'm hoping to stay at the same location, but I'm keeping expenses low and playing this by ear.
Contemplating Home Office: Even with the above, I'm contemplating an entire home office setup and renting a space for conference rooms only. This is something I'm kicking around in case I can't upgrade my office at my current location.
Taxes: As you might expect for someone on this forum, I'm very on top of taxes and making sure I get every deduction I can. Because we can live on my wife's income alone, I'm transferring all my profit to an HSA and Solo 401(k). My tax liability should be very, very low this year.
Paid Myself!: As referenced earlier, I paid myself $10,000 the other day. That's enough to max our HSA and cover any slight overages we have on the household front.
Could Be Doing More?: I have this aching feeling that my numbers could be even higher. I've had trouble focusing recently, so I'm hoping to get back into the groove. Any productivity recommendations would be great.
I Should Have Done This Sooner: I want to end on some high notes -- this has been great. If you're thinking about doing this and have the finances to ride things out for a bit, do it. I am an average joe schmuck and I'm doing just fine. The autonomy cannot be beaten.
Personal News: Since going out on my own, I've lost 12 pounds and my cholesterol has lowered 16 points. I'm exercising every day, and I never, ever, ever did that when I was in a 9-5 job. The autonomy has relieved stress, had me eat a better diet, and allowed me to exercise more.
Even Bigger Personal News: My wife is pregnant! We find out the gender on 10/17/2018. We are having the OBGYN put the news in an envelope, and then we are driving to Portland, Maine (where we went on our honeymoon). We are going to go out to eat and learn the gender over a nice dinner. We are very, very, very excited to be parents.
Year End Goals:
#1 - Have $50,000 in receipts by the end of the year (would mean I was on pace to average a $75,000 profit in year one)
#2 - Settle my employment law claim, which will go a long way in helping out the above
#3 - Continue building networks for referrals
#4 - Continue making myself available for court appointments and appearance work. This is easy money.
Lastly, and I say this with almost all of my posts in this thread -- thanks to all of you for encouraging me to take the plunge and for giving me constant advice. Aside from marrying my wife, this is the best decision I ever made.