May-June Corporation reporting

The first 2 months of my corp have been pretty successful, and I've learnt a lot doing this. I have done tech II production before and I think I made billions over the last couple years, but I never kept track. Certainly I have plenty isk and I can't think where else it came from!

The corp allows me to keep track since its wallet is separate from mine. I've not done this on this scale before - my own POS and a recently "matured" industry alt adding significantly to the size of the operation, so it just seemed appropriate to start a corp.

Below are my key thoughts on my first months and under that are the financial results.

1. There are 2 "employees", currently my main and an industry alt.
2. Primary activity is tech II manufacture.
3. Tax rate is zero, the purpose is to keep track of manufacturing profit/loss only.
4. At the moment between them I can run 19 research jobs and 14 manufacturing jobs simultaneously. What is holding the corp back more than anything right now is the limit on manufacturing jobs, even using POS arrays which reduce manufacturing time. I can invent more than I have the capacity to manufacture. So my alt is training up some skills and I'm going to buy an implant to reduce manufacturing time. I am also considering increasing the number of manufacturing arrays at the POS as currently 40-50% of manufacturing jobs are completed using station facilities which are slower, although see point 6.
5. I have no issues selling what I can manufacture, the markets I'm in can easily support greater volume without affecting my sale price. I thought it would be much harder work selling higher volumes with a lot more "babysitting" of orders, actually although there is some extra effort involved, it's less than I had feared. Logistics were also all set in place while the corp was being set up and while that was a hassle at the time, my risk of "burn out" seems low right now. I feel confident that if I want a little break, I can take a few days off easily while just keeping manufacturing ticking over - in fact I had to take some days off anyway for real-life reasons and it had little impact, it was easy to clear inventory once I got back.
6. The POS is a large expense in terms of fuel and POS structures may decline in price following the introduction of PI, which would have a negative impact on the value of corp assets. In contrast the cost of manufacturing and research fees at local stations is extremely low. At the moment my decision is to keep the POS for 2 key reasons: (1) it provides copy slots which otherwise have a 2-4 week wait time in Empire and (2) the manufacturing arrays give a bonus to manufacturing speed.
7. I am operating in markets I know, selling mainly in one trade hub (80% of sales volume) and one mission hub (17% of sales volume). The corp is attempting to find new sales locations, and some have been scouted for suitability. Entering any new market is a risk but the key objective is to increase profitability (not volume - as previously indicated there is plenty volume at the trade hub).
8. Profit per item ranges from 13% to 95%. 17 different items were manufactured this month - diversity is critical in my opinion. Some additional new BPOs were purchased and further new items are being investgated. Likewise, new items can be a risk, but not exploring new items is also a risk.
9. The worst aspect of this month's results (below) is that only 80m was spent on trading. Most of the items have not yet been sold and some have quadrupled in value - this is good, but I should have trusted my instincts and "gambled" more. Hindsight is a wonderful thing, however, and over 10% of the corp's wallet spent on a risk seemed quite a lot at the time.
10. Lastly, PI production chains have been set up on both characters to supply POS fuel and some tech II components. The corp will purchase these at market prices. These chains lower time spent on logistics, as all POS fuels and required components can be created in the "home" system. This is actually through luck rather than foresight, but every successful business needs a bit of luck!

And now, some hard financial figures:

Profit/loss: +496.3m isk
Revenue: 989.4m isk
Spend: 493.1m isk
Assets: 709.2m 
Debt: 1417.0m

Note: There are only 20 days of actual sales, the corp was set up in May but setting up took some time, along with an invention/manufacturing lead time, so sales did not commence until June 10. The progress of the corporation wallet can be seen in this earlier post.

I'm not going to give a breakdown of revenues right now as I don't wish to disclose what I am manufacturing, although in future posts I may give some detail. Mostly (not entirely) it's tech II. My spend is detailed below, with some notes. Note that materials spend includes datacores, minerals and construction components - nothing is "free" to the corp, it pays my characters the market value for datacores and so on. This makes the corp's results a true reflection of the profitability of tech II manufacture.

The "debt" is essentially my initial investment from my main character. I have counted the cash plus the value of all items at the time they were donated (mainly the POS and blueprints). Lastly, the "assets" line is rather simplified and is just the sum of CAPEX in the first 2 months, basically just the POS and blueprints (note: "assets" and "debt" are not included in the profit/loss equation). Assets should really include materials in the corp hangar, unsold inventory etc but I'm going to ignore that mainly as it's a pain to calculate.

Total purchases: 468.9m isk
Breakdown:

• Materials: 320.9m (mostly tech II construction components, also some minerals)
• Trading: 80.9m (speculation mostly on PI products before they were removed from the market)
• POS Fuel: 61.8m
• CAPEX: 5.2m (new BPOs, POS structures etc)

Other spend: 24.2m
Breakdown:

• Broker's Fees: 1.6m
• Transaction Tax: 4.4m
• Manufacturing fees: 0.3m (some manufacturing jobs done in station rather than POS)
• Offices: 17.8m
• Research fees: 0.1m (some research jobs done in station rather than POS)

Total debt: 1417.0m

• 704m CAPEX (BPOs, POS structures etc)
• 25m POS Fuel
• 488m Materials
• 200m Cash