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8 Month Business Online Going In Right Direction

Discussion in 'Business & Tax Advice' started by Fendilover, Oct 18, 2016.

  1. Fendilover

    Fendilover Newbie

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    Hello guys and gals,

    I been into IM for the past 5 plus years on and off. I was on the warrior forum for those years. I had successful websites I flipped for some profit, did some offline seo for clients and then I stopped with IM because of having an anxiety disorder that just made me not want to do anything. Anyways, I got a nonsense retail job bringing home 42K a year as a manager of a store... can't stand it! My real passion is IM!

    For the last 12 months I started up a store and spent tons of money on PPC. I gross about 5K a month (past 8 months) on my store which I think I can take it to 10K a month by the end of the year. I spend about 1K a month only on PPC. I'm starting to get organic traffic with my store.

    My question is am I heading in the right direction to quit my lousy retail job I dread everyday?

    I don't have an accountant because I been really trying to get quickbooks self employed working and just send it to turbo tax every quarter.

    What types of things should I be writing off for taxes?
    What are the benefits of being self employed?
    If I can get my store in the 8K-10K monthly is that really good for me to quit my job?

    I do have a family and a hubby who makes OK with health insurance so that is a plus. I just have an anxiety disorder that I get when I'm mostly at work... I think it's deteriorating my health.

    Sorry for the questions and hopefully people are honest about this if they want to answer.

    - God Bless
     
  2. Prowhistle

    Prowhistle Junior Member

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    Depends on the profit margins and what you net per month. I also have a family and had to make a similar decision before going full time IM.

    I would also try to put profits back in to the business and maybe some diversity while you still have a safety net. I was relying too much on one site and when revenue dropped, it hit me pretty hard.
     
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  3. PHPInjected

    PHPInjected Elite Member

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    For taxes, you can write in your home as your business location, so whatever rent you pay. Any equipment for what you d can also be written off (internet, Pc/Laptop etc). Promotional expenses like your bank fees. I don't think the PPC budget counts, I've never used it in mine.

    The benefits of being self employed? The greatest gem to have: Being your own boss while making your own schedule, doing something you love, and getting paid for it.

    Well, let's do the math. Let's say you take home 40k in the retail job post-taxes. Making 5k per month minus your 1k PPC budget, you're already right on track. If the site was making 8k+, I'd say definitely.

    Side note: Always try to have a back up income source in case your main source tanks. Meaning, make another site or 2.
     
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  4. Fendilover

    Fendilover Newbie

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    Thank you! I spend about 1K a month on PPC, product cost and website hosting. Profit is about 3-3.5K a month.. Anything could happen but I make my own products, send them out myself and I'm in the evergreen niche which isn't going anywhere I hope. I have 9 products in my store and I will just grow it out further. I just get nervous because I get a weekly paycheck from my lousy retail job. I'm lucky I have a passion for this niche and looking to really grow it.
     
  5. Fendilover

    Fendilover Newbie

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    Thank you for the great breakdown! We pay $1400 for rent... can't I split that as office space. Also, with PPC I been put that as advertising in quickbooks self employed. It's going to be difficult to make another website because I don't drop ship I send everything out from my house.
     
  6. PHPInjected

    PHPInjected Elite Member

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    Yes you can split it as office space, if not all of it. You do your own taxes? You should probably consult with someone more experienced, I really only know the basics of what my guy has told me. There's probably a lot of stuff I left out. The website doesn't have to be a duplicate or even the same kind of website. It's just always good to have multiple sources of income. Plus, you could probably make more if you weren't going to your retail job.
     
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  7. Fendilover

    Fendilover Newbie

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    For the past couple month I have. I setup quickbooks self employed. I'm still learning how to use it. I called an accountant and I guess I couldn't explain myself the best. I told him I was an IMer and was making profits selling stuff on my website... he just sounded confused when I told him what I make (I'm sure that isn't much as some big IMers) He said what do you sell and how? I just felt uncomfortable after that and I knew someone on the warrior forum who was making 5 figures a month doing his taxes with quickbooks.
     
  8. PHPInjected

    PHPInjected Elite Member

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    My only advice is that I thought about doing my own, I ended up going to a friend who I knew was good at it. He helped me write off $1k more in expenses and that's just what he told me I completely missed, not even what I off shot. I'm just saying, there are experts with self employment taxes that you should search out.
     
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  9. Fendilover

    Fendilover Newbie

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    Thanks! I wouldn't want to get audited!!
     
  10. Prowhistle

    Prowhistle Junior Member

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    A game plan on scaling and growth once you are full time with it would help too. Instead of diversity you could expand the business to other avenues such as offline and also possibly training someone to make the products so you can focus on growth.
     
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  11. Vapys

    Vapys Regular Member

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    You are definitely on the right track and you're asking all the right questions.
    1. Absolutely consult with a tax attorney about your fillings.
    2. PPC can be deducted as a business maintenance and upkeep.
    3. You need to register your home business with the local zone department to begin receiving those tax deductions (their are plenty)

    Questions....
    Do you have backlinks?
    Have you built a social presence?
    Will you be willing to joint venture?
     
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  12. Fendilover

    Fendilover Newbie

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    Thanks! My Main focus is building the website out since it's a evergreen niche. I know I should diversify. However, I'm sure some make a living online with 1 website and have really no risk. I'm not relying on seo for this website, no adsense... just PPC which is costly but the market will never die. Ad spend might go up might be the only problem I can see.
     
  13. seoheroo

    seoheroo Junior Member

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    Maybe use this method when you get some anxiety in the future ... just close your eyes and relax your mind, and your body, and picture in your mind what your future you want. See it and feel it. I assure you, your anxiety will disappear in a minute flat. All you are doing is resetting your body and mind to remove your anxiety. Thats the key. Once you've fixed that, your limit is the sun.

    Regarding taxes: Accountant is good if you want advice. Setting up under a company can protect you personally from your business. Everything thats an expense and is business related you can claim.

    Good luck to you.
     
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  14. Fendilover

    Fendilover Newbie

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    I'm not relying on no seo. Maybe I will build a blog on the website. Just paid traffic and a lot of FB fans and IG followers. I think it would be hard to find a JV how I'm passionate about this niche. I had a JV in the past when we did a lot of niche websites and it's hard to trust some today.
     
  15. TheNumbersGuy

    TheNumbersGuy Jr. VIP Jr. VIP

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    What types of things should I be writing off for taxes?

    You can essentially expense anything that is related to the operation of your business - such as a home office - utilities, rent, Mortgage Interest, internet, etc. (these would be prorated on the portion of your home which is for business use based on sq feet.) your PPC ads, employment income you pay yourself...

    Additionally any furniture, computers and hardware could be depreciated.

    If I can get my store in the 8K-10K monthly is that really good for me to quit my job?

    Depends on your profit & what you would be comfortable living with. I would also suggest looking at your companies financial statements and seeing what your profit/loss is month to month & see if your increasing your profits in relation to your sales.
     
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  16. Charly The Rabbit

    Charly The Rabbit Jr. VIP Jr. VIP

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    If I were you I would move to a third world country and live as a king :D. If you are single without kids shouldn't be difficult . I'm amazed you haven't had quit your job, yet.
     
  17. Charly The Rabbit

    Charly The Rabbit Jr. VIP Jr. VIP

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    Excuse me, can you explain us a little bit more about your "anxiety disorder", was it related with IM? why did you decided to stop IM if is you passion?
     
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  18. Sherbert Hoover

    Sherbert Hoover Jr. Executive VIP Jr. VIP

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    @PHPInjected did a pretty good job of explaining things, but I'd suggest not writing off half of your rent as a business expense. It's by square footage, so if you have a 2,000 square foot dwelling and one room that is a home office that is 20x10, that would be 10% of your living space dedicated to the business. I sometimes work from my kitchen countertop as well, so I write off about 25% of my rent cost.

    Same type of thing goes for Internet connection, phone bill, etc. Be careful with that kind of thing. That's what can end up biting back.
     
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  19. Fendilover

    Fendilover Newbie

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    Yes I agree! I pay $1400 a month for rent. I been deducting:

    $400 a month for rent for business,
    internet - 100% Business expense
    advertising - 100% Business expense
    postage - 100% Business expense
    hosting - 100% Business expense
    product cost - 100% Business expense
    Car mileage - 25% Business

    So far quick books has been good (still learning). When I first launched this website I took a loss with trial and error like products not working, tons of advertising etc. In the last 8 months the business been growing in profit and I think I will get it to a 6 figure website gross. I don't think this year I will be wacked with many taxes because of the loss. If anybody makes 6 figures a year on there website is it still possible to break even with taxes cliaming your business expenses? (I know I should ask accountant)

    Thanks Guys!
     
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  20. Fendilover

    Fendilover Newbie

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    What comes with anxiety sometimes you get depressed. I couldn't work online anymore... I found it to be depressing to be by myself while my kids are in school and husband is working. I finally realized that my passion is IM and I don't want to work a lousy retail job. I think I can alleviate some of this anxiety focusing on 1 job which will be IM. I'm under control with my anxiety disorder right now because of medication.

    God bless