So how dose starting a business work?
How would I go about this?
Realize that this will take up +60 hours of your life a week and you will have to sacrifice for a long time, without the guarantee of success. This means less time for friends, family, hobbies... your life will become your enterprise.
Forget the Asian approach haha, learn how to be a good salesman. I'd suggest a book on this subject (my favorite and the most effective one I've found) aswell as another one on the inner workings of your average proletariat consumer, but unfortunately for you I'm selfish and sickly paranoid. But trust me, the difference between sink and swim for a business is usually based on the founder's (or his team) ability to convince people to buy.
OP I am one of the few posters so far that might be able to help you.
I am in the process of starting a trade company in Australia.I work full time and plan to quit and focus on the business.
Expecting to start accepting sales in roughly 6 months once I have a solid business plan, logistics set up and my small office.. ect..
I am going to be selling circular formwork and composite wood decking.
I have access to these at factory prices due to fiancée's family owning 50% of the factory in China. She has more product connections but these are the big 2 which they sell and make $10-20 million in profits each month USD.
I have spoken to an accountant, lawyer and soon to be meeting with customs brokers and logistic companies next week during my free time.
What do you want to know specificity? I can tell you have I have learnt on my way.
I have a background as a construction manager for the last 2 years.
Yes what you will need is immediate financialisation of all assets in a way that complies with the legal framework of the relevant regulatory body. You will need to hire a chartered accountant with 2 asset re-financialisation auditors and a competent attorny who will guide you through the legal quagmire. Then ypu must apply for all the nescessary licenses and exemptions to your local authority who will then inspect your business premises and issue a 'permit to begin'. If you fail this arduous procedure you must contact by mail your local tax beureau not after january 21st and file all relevant tax forms in triplicate. Business rates, business insurance, employee accounts, business bank statements must all be paid for.
I have actually sold a small containers worth of the wood decking (Pic related but not exact brand) to a contractor in Perth (I live in Sydney).
My fiancee's brother works in sales for the company and has set me up an Alibaba account.
I am their official distributor for Australia and I come up when anyone looks at their page on Alibaba which is their only form of advertising.
I did this just as a test to see if I can even manage one single order.
It was a big jumbled up mess as I had no idea how to get the container out of customs, onto the logistics truck and to the customer correctly.
But in the end sold 500m2 to the guy at $24 USD per m2. +Shipping
I get it for $20 which is the absolute cheapest price and cheaper the China factory Alibaba sales page.
So decent little profit.
You need to know how to SELL, if not you're dead in the water.
Why should people work for you if you can't sell
No matter the business, at the end of the day it's all about selling, protive don't be a salesman, be a business owner that SELLS.
Also you need administration skills and to be a good speaker. Also learn that you can't do everything and you will need to hire people to do things that you will never be able to do, but in order to have them not scam you, you need to be well versed in the subject. Being a business owner is a bitch, but oh so worth it.
OP, go start slinging your shit, worry about none of this. If you don't crash and burn in a year, then start worrying about backpaying licenses and taxes and shit. It's autists like this who make business sound so hard.
I got to $200k revenue over three years before they noticed and sent me letters. Paid an accy around $1k to get the numbers down, revenue agency assessed a 5% penalty (on profit, mind you), city didn't give a shit about old licenses just insisted I get them in the future.
Don't bother with a broker. Customs is easy if you're willing to spend a few hours on forms and have an IQ over 50. Also you'd need to keep your own records for 6 years afaik, but it's really not worth paying for a broker.
Rent a u-haul and a off-the-books driver from craigslist.
Seriously OP, you're going to fail if you try to do things "the proper way". Once you start seeing six figure profit you'll want to run your shit properly, but right now, go guerrilla-mode and don't worry too much. There's very little they can actually do to you if you're under an LLC, and there's a 95% chance you're going to fail anyway.