October 2024 - Peachy Party Business Update

October brought us new challenges, a few big wins, and some valuable lessons learned. Here’s what went down this month as Peachy Party ATL continues on its path to growth.

Business Update: Revenue Discrepancies and Accounting Adjustments
Revenue for October has been a tale of two numbers—QuickBooks recorded $18,700.94 while Goodshuffle logged $24,512.57. To address this gap, we’re investing in syncing Goodshuffle with QuickBooks to keep everything in line and ensure accuracy.

October Financials via QuickBooks:

• Revenue: $18,700.94

• Gross Profit: $14,746.56

• Operating Expenses: $9,951.67

• Vehicle Expenses: $1,529.31

• Net Income: $3,266.19 (approx. 17.5% profit margin)

Our profit margin could be higher, and we’ll work on that as we streamline our expenses.

Milestone: $100K in Year-to-Date Revenue!
This month, we passed the six-figure mark in annual revenue, bringing us to $108,000 year-to-date—a solid indicator that we’re gaining traction in the event rental market.

New Client Category: First Festival Setup at One Music Fest
This month marked our first foray into the festival scene with a setup for a photobooth at One Music Fest. While I’ve typically shied away from these gigs, I decided to take this one, which led to some valuable insights. We were up against well-equipped competitors with heavy machinery, while we had to handle concrete weights manually.

For this event, I sourced a 10x10 tent from three different suppliers: a top from Tent and Table, a frame from Fred’s, and fittings from Celina. The outcome was solid, though pieced together, and the festival setup process turned out to be surprisingly efficient. Going forward, we may need to find a dedicated tent supplier specifically for the 10x10 market to streamline our offerings and maintain profitability.

Building Recurring Revenue with Repeat Clients
October brought us four events from repeat clients, a great sign that we’re building relationships and establishing recurring revenue—a key to long-term stability and growth. Continuing to cultivate these client connections will be essential for Peachy Party ATL’s sustainability.

New Inventory: Outdoor Flooring from Ikadan
We invested in outdoor flooring from Ikadan and had two successful installations this month: one at the One Music Fest setup and another at a private client’s event. There’s a learning curve, but the investment is already showing promise. We’re currently charging $1.25 per square foot (including installation), though this rate was set without much data. Our all-in cost, including delivery, came to about $6.5 per square foot, so there’s room to adjust pricing once we gather more information.

Expanding Our Space: Negotiated Step-Up Lease
We’ve committed to additional warehouse space and secured a step-up lease that starts with an additional $100/month until March 2025, then moves to $400/month until it reaches $4,000 in August 2025. This will allow us to expand our inventory and handle larger-scale operations, but it also raises the stakes. By the time we’re paying the full rate, we’ll need to have scaled to a $500,000 business to make it sustainable.

Looking Ahead
October’s wins, new investments, and lessons have set us up for some exciting possibilities. The expansion in warehouse space will open doors for new inventory and bigger projects. As we close in on the end of the year, the focus will be on building our client base, refining our pricing, and tightening up the books. Here’s to the next chapter!