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The 2014 Financial Year in Review

on Tue, 09/01/2015 - 16:21

In 2014 we sold 104 bikes for $5005 and Scrapped 23,. People donated 70 Adult and 55 Kids bikes ie 127 bikes went out, 125 came in
We declined approx 60 donations due to lack of space (a problem since solved).

Our financials:
      Donations                 11.00       
      Interest Income           0.52       
      Other Income            19.50       
                Bicycles     5,005.00              
                DIY               266.95              
                Parts            793.00              
Total Revenue          6,095.97
      Operating Expenses                     
            Insurance                       1,500.12              
            Internet                               28.19              
            Office Supplies                      0.00              
            Professional Fees            1,140.00              
            Rent                               6,908.40              
            Tools and Supplies             353.70   
Total Expenses                          9,930.41

Net loss for Period                     3,834.44

Obviously a loss of almost $4000 is NOT good, but:

  • with our current reserves we could run that deficit for 3.5 yrs and still not be in the hole;
  • the problem in 2014 was that we did not have many bikes ready for sale for the peak season (Apr-Jul). Many times we turned away potential clients because we simply didn’t have the bikes to sell them;
  • we are well on track to be financially stable in 2015;
  • 125 donated bikes is sufficient to break even, and we actually turned away about 60 bikes due to lack of space. Of course we still have a backlog of 125 bikes in the shop, and 60-80 in storage, so we’re not going to run out any time soon. The challenge at this time  is to fix them up faster than they come in;
  • Both donations and sales were achieved without any particular effort at outreach or advertising;
  • Our #1 obstacle is lack of volunteers, particularly for fixing up bikes. With more people volunteering we could clean up our back log and begin doing outreach for both sales and donations.