Going full time!
As of November, I'm going to be building poker tables and games related furniture/items full time. Any advice for a newcomer into the big world of business?
I'm likely going to register my business in the coming weeks in preparation. I just need to figure out the changes I need to make to home insurance and such with a business going on in the garage, and proper tax forms I'd need to get and probably accounting software. I'm familiar with quickbooks, I just figure I should be using something better than an excel spreadsheet to track my finances.
I'm likely going to register my business in the coming weeks in preparation. I just need to figure out the changes I need to make to home insurance and such with a business going on in the garage, and proper tax forms I'd need to get and probably accounting software. I'm familiar with quickbooks, I just figure I should be using something better than an excel spreadsheet to track my finances.
Comments
PS -- could you make a table with walnut for the wood portions? How dirty would white get as the rail?
I've built 2 tables with white rails so far. I sold one of them early on (my first personal table) which didn't show any wear after about a year. I saw the other one recently online and it still looked brand new after 3 years.
And walnut is no problem, just costs a little extra
However, like everything else there are downsides. You have to do all your own accounting unless you hire someone to do it for you. I'm terrible at this part. I plan and plan to have all my shit together by the time tax time comes, then in a hurried frenzy I do it all at the last minute and I'm a miserable prick for a few days while this happens. Find a system for maintaining organization that works for you and schedule time weekly to address it. It's your job. Otherwise you become a shoebox type organizer where everything gets jammed somewhere and you don't see it so you don't do anything about it.
Plan for swings. Some times you're going to be so busy you'll be going seven days a week with long hours making boatloads of money. All of a sudden you'll hit a wall and have no sales for a while. Don't panic like I do and totally stress out over it. Enjoy the time off and also use it to organize and do the things you can't do in your business when you're busy. LIKE PAPERWORK.
Try to imagine planning as if you are going to get audited tomorrow. When the government sends you the letter, they're going to send a team of people and you'll wish you were dead if you're not organized or can't back up every claim you make.
There are so many advantages to being self employed it's incredible. I started working in unions when I was 14yrs old. Lived that life for 20 years until I became self employed. I can't imagine ever going back to that life ever again.
i've dreamed of becoming self employed (mostly so i don't have to deal with people/bosses on a daily basis). problem was though, i have nothing to offer people
Being self employed doesn't necessarily mean you don't have to deal with people or bosses. Each customer becomes your boss to an extent as they are the ones paying you. I was trained early on by the first actual painter I worked for that you have to learn to subtly control your customers and not let them control you. It's a complicated process but incredibly important. The more they value what you explain to them, the easier/less messy/less expensive/better job they get. This is why in general I tend to dislike people more and more over the years.
Grow some self esteem young man! Everyone has something to offer! You just need to market it properly!
I realize that corporate taxes are a different beast, but from what I understand it's better to be a corporation than just registering a business. I need to complete my research on this though to make sure I'm making the right decision.
Thanks for the tip about the small business services. I'll see what I can find in my area.
And the wife. She's the biggest boss of them all.
Best of luck with the venture. From the photos I've seen you do great work.
No, Tapatalk says this can't be changed.
Quick question, the table you have on your webpage made to look like a hockey rink looks amazing. I was wondering though, and I'm no attorney, but is it kosher for you to feature that table on your website when it prominently features the logos of so many companies, which I assume you're not associated with? Companies with trademarks and what have you?
At any rate, best of luck with everything. If you happen to be the host of, or a participant in any home games that need players, please get in touch.
I can relate to not having enough space for a poker table as I also live in a small apartment and don't have a space for a table myself. I built just a topper which can be put on top of my dining table, but storing it when not in use is a bit of a hassle. I've found that any of my customers who live in cramped quarters buy the poker tables with wood dining covers so that they can use it as a regular dining table.
Regarding the logos, I've dealt with the issue. It's all good.
I am planning to host a charity even sometime in the future, if things go according to plan then probably in the winter. I'll be sure to send you an invite when it comes around.
How much are you charging on average per table? what is the average profit margin per table? How many tables do you have to sell per month to make a decent living? how long does it take you to make one table? didn't realize that there was that much demand for poker tables.
You don't need to incorporate to run the business. If you anticipate losses in the first year, it might be easier just to run it as a sole proprietorship and that way you can offset the losses against other sources of income (salary from other jobs for the first part of 2013, etc.). Even if you are profitable from the start, running the business may be easier if you want to have a home office and deduct a portion of your mortgage interest, utilities, etc., which I don't think is possible if you are incorporated. There is no real need to incorporate for this type of business. Find someone you know that has a good tax background and they can give you some advice on the best form of business for your needs. Incorporating will cost you $1k plus for legal fees and there are many annual filing requirements that just add more unnecessary costs to running the business.
http://sbinfocanada.about.com/od/startup/f/registerGST.htm
Average charge, $1,500/table. Average profit margin I'd rather not disclose, but not hard to imagine the ballpark range. I've determined I need to build at least 4 tables / month to keep up my standard of living. Takes me between 6-30 hours to build a table depending on the design. I also did not think there would be enough demand for custom tables, but I have been proven wrong from my experience since starting.
I understand that incorporating isn't necessary, but I think there are some advantages that I can utilize. I though incorporation fee was $200-250 plus the cost to namesearch... From people I've talked to so far, in my position they've recommended to incorporate, mainly for my protection as an individual. If anything where to go south, then the corp goes down and not me.
Also, I'm not running my shop out of my house, it's at a family member's house who is letting me use their space. So I don't get any tax breaks for using part of my house as the shop or office anyways.
Thanks a ton for the link about not having to charge tax for under $30k in sales. Will come in handy for the first little while I'm sure.
I would really think about the incorporating option and speak to someone knowledgeable. Its not really the cost of incorporating, its having the option of deducting some personal expenses to reduce your overall tax bill. Which may not be an option if you are incorporating. You don't really have any liability issues when you are building poker tables that would justify the need for a corporation. Not unless you want to split income with other family members and make them shareholders in the corporation?
Hopefully the demand is there for this price point for a poker table.
Get a gst# and work as self employed. Keep all of your receipts for everything (food, gas, car repair, etc.) and then find a decent accountant.
You're right about the home office part though, I'll still be on my computer at home so that means it's partially my office. I'll be sure to write that off.
I'm not doing anything like hiring family. I've learned not to mix family with business. I haven't been keeping my receipts properly so far, but I started to recently.
not sure of the exact numbers but Corps pay roughly 21% tax and you can keep your income low for the first few years there is a define tax break. When you do take the money our take it as a dividend and this will also be and additional 20%. BTW this adds up to the larger 40-42% tax bracket.
I have been self employed for 19 years this September. I have an accountant do both personal and corporate...and there are 3 different levels of accounting for the feds. You would be the lowest / cheapest form as you really don't need to report to anyone else...(investors/bonding companies). BTW if you get an accountant to do the closing of the YE and note that on the paperwork submitted, audit will not be a problem unless you deal in cash, then expect the audit regularly.
There are accountants on here who can give you some quick advice. Where are you Corky or Tom?
No, Tapatalk says this can't be changed.
Corky or Tom??
2 accountants that I know of on the forum
No, Tapatalk says this can't be changed.
And confirm with your business advisor that incorporating is not worth it with < $100K in sales.