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Transitioning my online business to an offline one with employees in 2018. Advice?

Discussion in 'BlackHat Lounge' started by ABCman, Jan 19, 2017.

  1. ABCman

    ABCman Registered Member

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    Instead of going to college next year when I finish high school, I am planning on transitioning my online business to an offline one with employees. I am making a decent amount of money per month (REMOVED). However, I am finding it very hard to keep on top of it without working 14 hour days.

    My plan is to hire a lawyer when I turn 18 this year and create a business entity rather than working as a sole proprietorship. I am then going to rent some office space and hire someone to help with the grunt work.

    Does anyone here know of any good resources about dealing with employees?
     
    Last edited: Jan 19, 2017
  2. Jason Bradbury

    Jason Bradbury Power Member

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    Hire employees but DONT GIVE ONE EMPLOYEE ALL THE POWER. SPLIT IT UP SO YOU DONT HAVE ONE EMPLOYEE DOING EVERYTHING.

    the caps are there for a reason
     
  3. Phenomix

    Phenomix Regular Member

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    @ABCman

    How big can you scale up if you hire staff?

    From what I can gather, you're Australian. Right now you are enjoying the benefits of being a sole trader and keeping the majority of your income. Unless you go the route of hiring independent contractors, you will be subject to pay the company tax rate on your earnings, have to decide an amount to pay yourself, and file two separate tax returns. I will presume with your current income that you have already registered for the GST.

    Independent contractors can save you a lot of money but it can also get you in a lot of shit if you do it wrong, lawyer up if you're looking at that option. There aren't many people who are going to listen to an 18/19 year old kid tell them what to do, regardless if he is paying their wages, so you can imagine the type of staff you're going to end up with.

    If you can manage this business by yourself, move overseas to a country where your income can't be double-taxed. SEA is the perfect place for this and you will no longer be an Australian resident for tax purposes. This means you will only have to pay income tax on Australian sourced income and even then, the minimum tax threshold is currently $18,200. I believe the tax rate is automatically around 35% though for this.
     
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    Last edited: Jan 19, 2017
  4. Sherbert Hoover

    Sherbert Hoover Jr. Executive VIP Jr. VIP

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    Not attending college is a stupid fucking idea, especially when you have money to burn. Invest in yourself, your education, and building your network.

    Another stupid fucking idea. Judging by your posts, you seem immature and would likely be a shitty leader/manager. Again, just assuming here based on you having zero management experience and zero real world experience as well.

    But is it sustainable? If it's blackhat, you'll end up fucking yourself sideways when your "methods" dry up and you don't have multiple eggs in multiple baskets.

    If you want to make it big, you have to put in the time for a while at the start.

    You may want to read more into this. You don't need a lawyer. https://www.legalzoom.com/country/au

    Why not hire a few remote workers and save yourself the money and hassle of renting and furnishing office space, as well as the time and effort involved in forms and such?

    Absolutely. College. A Bachelor's degree in business management.
     
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  5. Typlo

    Typlo Jr. VIP Jr. VIP Premium Member

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    I agree with Sherbert.

    Jumping to employees and office space, is a bad idea. That's a large amount of costs to add. Start with remote workers / VA's to help with some tasks. And do invest in your education. Do that for at least a few years, then you may find yourself in a place you can manage a team better, and afford the office space.
     
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  6. Asif WILSON Khan

    Asif WILSON Khan Executive VIP Jr. VIP

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    Why?

    Don't think you will be working any less. With your new overheads, it will possibly require more work.
     
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  7. Mr Cracker

    Mr Cracker Power Member

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    Its all fun and games until you wake up and start having to pay taxes and more, don't give up on an education it will be a stupid move.

    As the saying goes... "Never hold all your eggs in one basket" - think about it because what you decide could make or break you. I'm not suggesting you will fail but having an education is a good backup in the case this flops.
     
  8. reydj24

    reydj24 Junior Member

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    It's funny how people here keep telling him that what he is doing is bad and he should go to college (which IMO isn't necessary if you want to become an entrepreneur).

    To OP, you should do it if you want to learn how to operate a physical business. But I suggest you to either go intern/learn from someone for a few months.

    College IMO is good only for some kind of networking (don't expect to find the next Zuck, but maybe there are a few good guys) and girls.

    PS. I saw you on another thread bragging again about how much money you made, don't do that.
     
  9. Jiung

    Jiung Jr. VIP Jr. VIP

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    Just summed up everything. Great job!
     
  10. ABCman

    ABCman Registered Member

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    Edit: Looking back at your post with a clear head. I would like to thank you for the advice you gave me.

    It may not be the advice I want to hear but I believe that it has great value.

    Thanks
     
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    Last edited: Jan 20, 2017
  11. gtull2

    gtull2 Power Member

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    @Sherbert Hoover you da man!!

    @ABCman you have no idea how useful and helpful Sherbert's reply to you was. Tough love is real love. Suck it up cupcake and listen to what the man told you.
     
  12. Sam Green

    Sam Green Junior Member

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    Why? thats creating a fuck ton of overhead.

    I dont nessessarily agree with what the others have said about you needing to go to college. If you feel you can make a decent living with the skills you currenlty have then I'd say go for it.

    Im assuming whatever you're doing is entirely only based if that's the case go find yourself some good virtual assistants and form whatever the Australian version of a LLC is.

    If you fail then you can go to college then.
     
  13. MarvinMartian

    MarvinMartian Registered Member

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    I agree with you on this one. I don't understand this whole idea of creating more issues with more overhead and hiring employees. That just sounds like a headache and at 18 you will have issues with managing that as others have said. You should outsource all that shit.

    But as far as college, that's an individual basis. I have never talked to a business owner about web services who said "where did you go to college" it's always about what I can do to obtain results.
     
  14. IGKing

    IGKing Jr. VIP Jr. VIP

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    Just glanced over your recent posts.

    Go to college.

    Or just keep doing what you're doing now online; and when that dries up, then go to college.

    There's a certain level of maturity you need before starting a business. I'm not one to talk (I'm in college), but I understand the importance that it plays. I've matured a lot since high school. I'm sure college will do the same for you, hopefully.