At what point does a person need to start a company? Currently, three stores can bring in a million yuan a year. Is it necessary to start a small company to expand the team?

Anonymous user

"Wonderful Reply"

Get up, bricks!

Based on my own experience of building a team from scratch to run Amazon, if you have limited funds and cannot take out too much money, and you need to make a profit quickly to get a loan, then I suggest that if possible, you should find a company to work for first, and learn from the company and the team to understand the entire process of Amazon operations.

When can I work alone?

1. Clearly understand each link of Amazon, what kind of resources are needed, the key points of each link of operation, how to grasp and control it?

2. Either you are familiar with the product, know how to choose hot products, follow the market trend, and find hot products that can bring their own traffic.

3. Or in the product field, you already have a field that you are willing to dig deeper into vertically. For example, if you have been making socks, you can develop from sports socks to winter cotton socks. You can provide socks that meet the needs of buyers.

4. You said that your current photo editing skills are third-rate. Why not outsource the image art design and leave professional matters to professionals? Think for yourself about where your advantages lie in the entire cross-border e-commerce Amazon project?

5. In fact, Amazon is not friendly to newcomers at present. The costs of taxation and product compliance are getting higher and higher, and the requirements are becoming more and more stringent. If you are starting a business, it is better to choose some other platforms that are in the initial development stage and have lower barriers to entry.

6. Regarding the cost issue for a team of 2-3 people.

The fees mainly include the following parts:

1) Office space cost: Renting a small office in Shenzhen that can accommodate 3 people costs 5,000 yuan. That’s 60,000 yuan for 12 months.

2) Network hardware cost, 3 computers + network hardware equipment, etc., 15,000

3.) If the art design is outsourced, one person is responsible for product selection and supply chain management, and two people are responsible for operations. The base salary is at least 6K according to Shenzhen standards, 18,000 per month, 12 months, that is 216,000 base salary, plus various team building, social security, personnel-related expenses, 250,000 a year is not too much

4) Product cost and logistics cost of selected products. Assuming that the cost of selling is 50 RMB, the first-leg freight is 16, and the product cost accounts for 30%, then the selling price must be 166 RMB. Calculated based on 10% net profit (after deducting all operating and office expenses), you can make 16 yuan from selling one product. If the gross profit is 35%, then you can make 58 yuan from selling one product.

The fixed cost calculated above is 6W+1.5W+25W=27.5W

If you want to make money, then it means that the gross profit of the product must be greater than the annual operating cost, which is 275,000/58=4741 products. The minimum stocking cost calculated here is 237,000. To make money, you need to prepare more money.

As start-up capital, you need to prepare at least the money for the first batch of goods and the money for fixed expenses in the first few months. In this way, you can clearly know how much the initial start-up cost is for a team of 2-3 people.

Sellers wear sea

Agree with: Get up Banzhuanla, JIUyyiiz, Amazon Operations Jo, Sister Chuanhai, JACKLEO more »

If you can earn a million yuan a year working alone, that means an average of 80,000 to 90,000 yuan a month. As an individual seller, this is indeed very impressive.

If you want to start a company for further development, I advise you to wait a little longer. Judging from the general environment in recent years, it is better to keep the money in your own pocket and play it safe.

There are a lot of things required to start a company, and you also have to hire people to manage it and teach them. Can you guarantee that you can take care of it?
Opening a company looks more formal and legitimate. You don't have to deal with customers or suppliers in your own name. Regardless of the size of the company or the amount of registered capital, most market players prefer to deal with companies rather than individuals or self-employed businesses.

Public payments are more standardized. Public-to-public payments are more compliant than public-to-private payments.
To expand a business or cause, it is more appropriate to use a company as a carrier. Individuals, self-employed businesses or sole proprietorships are not legal persons and are unlikely to become a carrier for expanding a cause.

But there are also bad things.
You need to rent a house to open a company. According to your calculation, the office space is NT$3,000 per month, but you also need to have the corresponding office conditions, and renting or buying equipment is also a sum of money.

After registering the company, you need to make a company seal. Generally, there are at least 4 seals, including the company seal, the financial seal, the invoice seal, and the legal representative's name seal. These four seals cost more than 100 yuan or nearly 1,000 yuan depending on the material.

You need to open a bank account. To open a bank account, the bank needs to take photos on site. After taking the photos, the legal representative also needs to take photos on site. After opening the account, small banks generally do not charge any fees. Medium and large banks charge bank account management fees of several hundred yuan or nearly a thousand yuan per year. You also need to purchase UK, etc.

You need to report to the tax bureau. Although there is no specific time requirement for reporting to the tax bureau after registering a company, you only need to report to the tax bureau and determine the tax type before the tax obligation is generated. Now you can do it online. It will take more than an hour to fill in the information online. If you don't have business, you don't need to buy invoices. If you need to buy invoices, the anti-counterfeiting tax control fee is about 200 to 300 yuan a year.

After opening a company, you have to set up accounts and file taxes. It is required to complete the account setting within 30 days after registering the company. If you don’t know how, you will have to pay at least 200 yuan per month to find someone to set up accounts, do accounting, and file personal income tax, value-added tax, corporate income tax, etc.

After opening a company, you must submit an annual industrial and commercial report every year. The annual industrial and commercial report is submitted from January to June every year. If there is no annual industrial and commercial report or you cannot contact the person by phone or visit the company, it may be an abnormal operation. Once the operation is abnormal, many things such as opening a company account, changing the business scope, changing equity, relocation, etc. cannot be done. If necessary, eliminate these abnormalities. If you are not in a hurry, you can handle it according to the process. If you are in a hurry, you need to find someone, and it costs money to find someone.

Once you have opened a bank account, make transactions at least once every six months. If there are no transactions for more than six months, the bank account will become a long-term dormant account and cannot be used. If it is used normally, you have to contact the bank, which is troublesome and difficult to open a new account.

Once you start a company, your phone number will be made public. The second you set up your company, your personal information will be leaked or made public. You will receive calls from bookkeeping agents, advertising agents, information promoters... As long as you turn on your phone, you will keep receiving such calls.

After opening a company, you should always pay attention to the return calls. Most of these calls are from grassroots government departments, some asking if you have enjoyed the preferential policies, some asking about the work style of the competent department, some asking about integrity...

The registered capital subscription must be completed. You must pay your registered capital in full within the time stipulated in the articles of association.

Just like what others in the forum said, you can outsource the work you are not good at, such as art design. We have always advocated small sales, and Amazon must be invincible. A monthly income of 40,000 to 50,000 is appropriate. This income range can not only allow you to eat and drink without worries, but also avoid the trouble of work, and have more time to enjoy life.

Now you can earn a million yuan a year, which is very good for other sellers. Starting a company may double your income, but the risks will also double. In addition, you have no management experience, so running a company will probably be more difficult.

lucky2024 - 6 years of Amazon operation, keep learning

Agree with: Faiyer2, November Rain 11, zedccc, Mitchell233, I love potatoes the most

It depends on your personal goal: if you still want to make more money and are willing to spend a certain amount of time, it is recommended to hire someone

1. You can recruit freshly graduated college students who are smart and willing to learn. Although experienced operators may get started faster, there are often big differences in the operation level due to different previous experiences, different categories and methods of operation (based on the original poster's mention that he still wants to continue to delve into vertical categories).

If new employees are smart and quick-witted, they can get started quickly. You should have your own set of SOPs after working alone for so long. But this is premised on the fact that your supply chain is not so easy to copy. Otherwise, you may train your employees well and then copy your own products to become your competitors. As for worrying about employees running away after being trained, this is entirely a management issue. Who will run away from a company with a lot of money and little work? Companies with few people should not hold meetings and write daily and weekly reports all day long. They should do their own work well, give reasonable commissions, ensure that employees continue to receive positive feedback, and have no meaningless overtime and two days off a week. This is good enough.

2. Outsourced artists are basically executive artists. As for the problem of design inspiration exhaustion you mentioned, outsourcing artists may not be able to solve it. I think imitation is the most cost-effective way to create design. The post-00s are very good at creativity. Let them find reference pictures and outsource them to artists. If there is a large demand for later drawings, you can hire an executive artist, which will also make communication more convenient.

3. Regarding the store issue, if you are really considering hiring people, you can ask core employees (who don’t want to take the risk of starting a business) to help you register a store, and bind them together to give a certain amount of dividends. This will be more stable.

4. Small companies do not need to recruit personnel separately. It is recommended that you have basic knowledge of finance. Finance is still relatively important. It is recommended to recruit people who can complement you, produce company reports and give you suggestions.

ymyy123456 -Guess

Agree with: Open Society, Faiyer2, Worry about Raw Fish, Green Rice Fields, Xiao Wang Doesn’t Stay Up Late More »

It depends on your personal needs. If you want to expand, make more money, and are willing to manage and can withstand pressure, you can definitely recruit people now.

1. In terms of products, you can copy your current products and differentiate them. If your previous products were successful, the chances of your products being successful are also high.

2. In terms of resources, it is difficult to recruit mature operators in third-tier cities. For newcomers, if they are smart and can get started quickly, we have had newcomers who have done well. It is not a problem for them to independently make links after two or three months of training. Things like pictures can be completely outsourced. If you are talking about provincial capital cities, first, are you willing to leave your familiar environment and work hard in an unfamiliar place? Secondly, if you are a mature operator, a salary of 5,000 may not be enough. In addition, there may be some additional expenses that you did not expect.

3. There is also the issue of funds. If you want to expand, you will definitely need more investment. How much investment is needed in the early stage of a store and how long it will take to generate profits, you have to calculate these yourself and make a good plan, otherwise it will be very troublesome if the funds are cut off.

An annual income of one million is already more than a large number of people. If you are satisfied with your current status, you can actually spend a small amount of energy maintaining old links, adding 1-3 new links every year, keeping learning, and taking more time to enjoy life is also a good choice.

Anonymous user

Agree with: rhxq world peace, Li Mosquito Repellent, forzaforza, longing for faith

When I saw the post, I remembered that I have been working alone for 5 years.
I was lucky enough to make a million dollars in my first year, but the growth was slow afterwards, so I have always made a million dollars a year.
I have been living alone all these years, and all the profits have been used in the following aspects: stockpiling goods (about one million) + buying houses (more than one million) + buying cars (two cars for a total of 600,000) + initial accumulation (six million in cash).

Because we have accumulated a certain amount of cash, we hired an employee this year to focus on product selection and increase the frequency of new product launches.

For now, 90% of new products are profitable. We will see if there is a big boom next summer. As for when to start hiring, I think different people will have different time points. If you are an adventurous person, with a monthly profit of tens of thousands and hundreds of thousands in savings, you may want to expand rapidly. If you are a steady person, you may be like me, with a monthly profit of hundreds of thousands, and accumulated millions of cash, and you are too busy to handle it, then you will think about gradual expansion.

Of course, if the expansion direction is correct, people with adventurous personalities may make money faster. Although people with stable personalities expand slowly, their entire company's ability to resist risks will be relatively strong.
Overall, it depends on your own preferences and direction to decide when to hire.

Fighting Buddha

You need to change your mindset and maximize your own advantages.
At the beginning, have the mentality that all assistants are there to help you do chores (pay them to do some non-core work), and don't expect anything else.

Grasp the core and continue to expand it! Then observe whether there are potentials at this stage, focus on training, and recruit two people for the race in the early stage. Those who perform poorly will be eliminated, which is good for everyone!

Find employees who are aggressive (passionate and motivated), smart, studious, responsible, and honest, train them well, and then expand.

If this process is not going smoothly, you need to stop and adjust the process of how to train people and the employees you really need to match you.

The commission for the initial money is higher, and the basic salary is enough to cover local living expenses, so that truly capable employees can achieve results through their continuous desire to make money!

You can refer to it and adjust it flexibly! Controlling human nature is a basic skill for good management.

Albert666   - Post-90s

Agree with: Alphagou, Langliheitiao, CharleneL, Xiaomai777, Boiled Chicken is Delicious More »

You should have opened a company and expanded your staff. First, earning a million yuan a year means that you can earn 80,000-90,000 yuan a month on average. You have calculated the initial expenses yourself, 20,000 yuan, no pressure at all. Secondly, a person's energy is limited. If you open a company, you can hand over the chores to your subordinates, and you can make better plans for your time and maximize your work efficiency.

1. Every profession has its own specialty. If you are not an artist, you should outsource your art work.

2. Small companies cannot avoid the problem of staff turnover. If you can lead your employees to improve their abilities and make money, staff turnover will decrease. From another perspective, training new people is also a way to improve your management ability, which is the only way for your company to grow and develop.

Holding an umbrella on a sunny day to avoid the sun • Guangzhou • 2024-09-17 18:05

I think this is the key point! "Leading employees to improve their abilities and make money will reduce staff turnover"

Wearing two necklaces • Dongguan • 4 days ago

@晴天打UM因避太阳: Leading employees to improve their abilities and make money will reduce staff turnover. It depends on the people. Assuming the boss is not at fault, the operations manager may have quit or gone on his own.

The sun is rising • Shenzhen • 4 days ago

@链戴两条: Job hopping is because of low pay and high workload, and because you can't learn anything. The first point depends on whether the boss's salary is reasonable, and the second point depends on whether the management and training ability is strong. Only fools will quit if both of these points are met. As for the problem of working alone, this problem exists in all companies of all sizes, regardless of whether the company is a startup.

Volcano - A 90s seller, working alone, LOL diamond, TAL 8

Agree from: z83832186, Outlier, CQYAu3, Blue Ocean Fishing Expert, 123 Volume 123

My situation is similar to yours. I am in my fourth year of earning a million dollars a year and I operate three stores and three brands. I am currently in charge of product selection and operation, my wife is in charge of art design, and my cousin is in charge of shelf stocking, replenishment, customer service and other miscellaneous tasks (salary 13,000+)
In many vertical categories, we can achieve our current scale. If we want to make more profits, we need to enter larger categories, which requires huge financial support.

In general, it is feasible to pocket as much profit as possible while achieving steady growth. It is not recommended to invest too much resources and energy in training new people, or invest too much money in trying new categories. The market is always changing dynamically, so try to keep as many bullets as possible in your hand. Store up food and you will be king slowly.

CQYAu3 • Shenzhen • 5 days ago

Your configuration is fine, hahaha. The family can handle the basic work, but does your cousin have any complaints about the 20 jobs she gets a year? Hahaha

Sarah22   • Taiyuan • 4 days ago

We have made a profit of two to three million for two consecutive years. But now one of the operations staff has resigned, and the artist resigned due to pregnancy. Currently, there are only my husband and I, one in charge of packaging and the other in charge of operations. But this year has been very difficult. New products cannot be promoted, and the sales and profits of old products have declined. Now we can’t even choose the right products. I feel like I have nothing to do every day, and everyone is very idle. I kind of want to dissolve the company and continue to run a husband-and-wife store. I don’t know what will happen. Because I was the only one doing it at the beginning, and then my husband joined and recruited people. But these two years have been very tiring, and I’m in a bad mood and feel very upset now.

Faiyer2   • Zhejiang • 1 day ago

@Sarah22 : Just start over the same way you did before. At least you have the experience of success. Allow everything to happen. It won't be too difficult to start over again. But since you have already developed, why not stick to it? The loss of talent is inevitable, so continue to recruit talents and cultivate talents.