I want financial freedom by the time I'm 21
- Thread starter longwood
- Start date
NO, NO that's not true! Gates got lucky! Just ask pimpfromdayone!
Ever heard the story of how they took some cheap, pre-existing knives and slapped the name "Ginsu" on them, made them look like the greatest invention since sliced bread and sold the sh!t out of them? Why spent the time and money to invent something when you can make WAY more repackaging and marketing someone elses product?
backbreaker
Master Don Juan
THank you, someone actually is listening to me.
BTW, I never said I was smart for working my ass off... I didn't have a choice... There was X amount of work that had to be done, and only 2 people.
I was so happy when we got a staff and I could have a resembance of a life, I wanted to Live!
When we did get a staff, I would work from 7:30am to around 4:30pm, no lunch break, monday though thursday, and on fridays I would get off around 1:30. I worked from 9 to about 11:30am on Sundays as well. A far cry from the first 2 years.
And what I said is a fact... 99% of the people out there don't know how much dedication, sacrifice or will power it takes to do something along thoose lines.
That's not arrogance... that's real life experience.
And yes I did learn alot about the business in the 4 years, but most of the extra time I was working was stuff I had to hire people for... updating databases, building PC's, shipping PC's, customer service, etc... stuff that couldn't be concilidated, no matter how hard I tried.
as a matter of fact, I couldn't do anything to really push the company forward, like get cheaper prices on parts, get a more efficent merchant, until I was able to focus on it after we got the building.
lol, we had a line of credit with our vendor, one of the smart things we did when we started our company, so actually none of the money was for parts, we had 60 days to pay off any parts we got from our vendor.
The money was for the website, and the patten that accouted for at the time half of our projected sales (turned out to be more than that)
And $5,000 was cheaping it... if i had to do it again, it would have been closer to $30,000, because the database had a serious flaw in it, our webhosts were cheap and at times unrealiable and we didn't really have any money for marketing. AT the time we had to save another $2,000 to get a decent marketing online campaign going.
business licensing and crap is basically free.
Please, I am not flaming you, but don't talk about something you know nothign about.
In the end, our business lisense was around $3,000, because we had a license in Antiqua, so we can have an offshore merchant account (something I hit upon in another post last night)
then you have the paying for the merchant account (you would think that you do'nt have to pay for a merchant account).. The merchant we started off with, charged us $299 plus $50 for the software, when we got our offshore merchant account it was another $900
Then you had marketing.... which I hated more than anything, espically Cnet (computer shopper mag).. They charged us $39,000, for a 3 month ad, that from what I recall, sold like 4 computers! Every morning I got to work, I had a message from the sales rep at Cnet. He would send us "free" crap, like tee shirts and mags, like we were special, and I didn't want to sign the 3 month contract, but my business partner wanted to get some offline marketing going... I did too, but not them, but I decided what the hell, and thoose were the most expsnsive computers we ever sold.
Oh, and then I haven't even touched on VEnture Capital, something else we ventured into... no pun intended. It actually COSTS money to GET money from an Venture Capialist... tell me how messed up that is! The sad thing about it is, eventually one company wanted to invest some money in us, around $500,000, but wanted 70% of the company, and wanted to use their own executives... we said no thanks (this was in first two years)
Eventually the same company came back, once we got our own building with a lot better offer, but we didn't need it by then.
Anyway, we had a Venture Capitalist broker, or something like that, that we paid $400 per month.. sounds like a lot but when you are talking about getting triple digits, it's well worth it.
Like I said, when we started the company, $5,000 seemed like alot of money to start the company ... I mean, all you have to do is build a website right? If only it were that easy, I might have had an IPO by now.
BTW, I never said I was smart for working my ass off... I didn't have a choice... There was X amount of work that had to be done, and only 2 people.
I was so happy when we got a staff and I could have a resembance of a life, I wanted to Live!
When we did get a staff, I would work from 7:30am to around 4:30pm, no lunch break, monday though thursday, and on fridays I would get off around 1:30. I worked from 9 to about 11:30am on Sundays as well. A far cry from the first 2 years.
And what I said is a fact... 99% of the people out there don't know how much dedication, sacrifice or will power it takes to do something along thoose lines.
That's not arrogance... that's real life experience.
And yes I did learn alot about the business in the 4 years, but most of the extra time I was working was stuff I had to hire people for... updating databases, building PC's, shipping PC's, customer service, etc... stuff that couldn't be concilidated, no matter how hard I tried.
as a matter of fact, I couldn't do anything to really push the company forward, like get cheaper prices on parts, get a more efficent merchant, until I was able to focus on it after we got the building.
lol, we had a line of credit with our vendor, one of the smart things we did when we started our company, so actually none of the money was for parts, we had 60 days to pay off any parts we got from our vendor.
The money was for the website, and the patten that accouted for at the time half of our projected sales (turned out to be more than that)
And $5,000 was cheaping it... if i had to do it again, it would have been closer to $30,000, because the database had a serious flaw in it, our webhosts were cheap and at times unrealiable and we didn't really have any money for marketing. AT the time we had to save another $2,000 to get a decent marketing online campaign going.
business licensing and crap is basically free.
Please, I am not flaming you, but don't talk about something you know nothign about.
In the end, our business lisense was around $3,000, because we had a license in Antiqua, so we can have an offshore merchant account (something I hit upon in another post last night)
then you have the paying for the merchant account (you would think that you do'nt have to pay for a merchant account).. The merchant we started off with, charged us $299 plus $50 for the software, when we got our offshore merchant account it was another $900
Then you had marketing.... which I hated more than anything, espically Cnet (computer shopper mag).. They charged us $39,000, for a 3 month ad, that from what I recall, sold like 4 computers! Every morning I got to work, I had a message from the sales rep at Cnet. He would send us "free" crap, like tee shirts and mags, like we were special, and I didn't want to sign the 3 month contract, but my business partner wanted to get some offline marketing going... I did too, but not them, but I decided what the hell, and thoose were the most expsnsive computers we ever sold.
Oh, and then I haven't even touched on VEnture Capital, something else we ventured into... no pun intended. It actually COSTS money to GET money from an Venture Capialist... tell me how messed up that is! The sad thing about it is, eventually one company wanted to invest some money in us, around $500,000, but wanted 70% of the company, and wanted to use their own executives... we said no thanks (this was in first two years)
Eventually the same company came back, once we got our own building with a lot better offer, but we didn't need it by then.
Anyway, we had a Venture Capitalist broker, or something like that, that we paid $400 per month.. sounds like a lot but when you are talking about getting triple digits, it's well worth it.
Like I said, when we started the company, $5,000 seemed like alot of money to start the company ... I mean, all you have to do is build a website right? If only it were that easy, I might have had an IPO by now.
backbreaker
Master Don Juan
Don't buy a PC from Dell.
Dell charges you soo much extra for crap it should be illegal.
You will never get that $499 PC they advertise on TV *(at least you couldn't when I was working), wait, yes you could, by getting a CC though them (though IMG) wtih an APR of like 25%
HONESTLY though, it really does show how much you know about the industry.
The average PC sale is around $700 dollars, at least ours was. It costs us around $640 to build the PC. That's an average of 60 per pc. Not a hell of a lot. Some other compaines were worse.
Falcon NW, and Alienware are the only real PC compaines that make a hell of alot on their PC's and they aren't making $2,000 on thoose $5,000 gaming PC's you see, more like $500-$600, but they don't sell as many pc's as an HP will sale, everyone isn't going out looking for a PC that costs half as much as a new car
The money isn't made off of the hardware, but the warranties and the software packages.
our flagship warranty was $179. We sold one on average of 1 out of 3 pcs.
We sell 20 PC's a day, we profit $1074, plus the profit from the actually PC's which is $1,200, plus any software upgrades we did.
backbreaker
Master Don Juan
On Gates... if i am not mistaken, Windows is something he "borrowed" from Macintosh, I know for a fact, MS-DoS, which is more important than Windows because windows wouldn't exist without it, he bought from a guy in PHoneix for like $1,000.
If you don't know, MS-Dos is what runs Windows
If you don't know, MS-Dos is what runs Windows
backbreaker
Master Don Juan
to answer your sarcastic question, neither. The profit isn't in the computer itself... why most computer compaines fail in the first place. Customers aren't as stupid as you might think. But a customer WILL pay you another $200 to make sure he doesn't have to spend another $1,000 in the next 4-5 years
backbreaker
Master Don Juan
and he is right about windows not changing crap... they patch it up, might change the it to look more slick, but Linux is far more reliable then Windows will ever be. i haven't used Windows since I was 18. It's pathetic. Security gaps and all, system crashes, none of that with Linux (I use redhat and Suse)
Microsoft is so bad, that they leave holes in windows for you to get viruses, and then have the nerve to create an antivirus program, when I am already paying $200 or so for Windows.
The ONLY thing I like about windows is the plug and play capability, and that wasn't really there until Windows ME.
Biggest company in the word, you mean it took them 18 years to say "hey, lets store the drivers on the operating system instead of making the customer search all of the internet for it!"
oh and xbox is pretty cool I guess, but it's easier to hack then windows 95
Microsoft is so bad, that they leave holes in windows for you to get viruses, and then have the nerve to create an antivirus program, when I am already paying $200 or so for Windows.
The ONLY thing I like about windows is the plug and play capability, and that wasn't really there until Windows ME.
Biggest company in the word, you mean it took them 18 years to say "hey, lets store the drivers on the operating system instead of making the customer search all of the internet for it!"
oh and xbox is pretty cool I guess, but it's easier to hack then windows 95
pimpfromdayone
Master Don Juan
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I don't understand why you all are being such smartasses, because I was completely serious. STR8UP, you're just a dumbass. Here is your dictionary definition of reiterate since you didn't seem to grasp the meaning back in my post:
reiterate
v : to say, state, or perform again
There, now don't you feel like a dumbass.
And Backbreaker, Mr. Hardworking Wonderman that knows harder work than anyone, I wasn't being sarcastic in my post, I was actually trying to have an mature, intelligent conversation, but apparently nobody on here is capable of such a thing. You really shouldn't treat people like they are stupid, especially when they were asking you questions to learn.
I know nothing of what it takes to get a business? Did I not just get done telling everyone I HAVE a business? I just have to say, I got all licenses, registrations, business bank account, everything done for under $50 (small fees added up) because I took the time to learn and set it all up myself, and if you add in a merchant account, it would STILL be a far cry from $3000. You may have had some special licensing or something, but I am just telling you this is what MINE cost, so don't tell me I know nothing about it. The merchant account and website are the expensive parts, but for a monthly fee and a startup fee, it doesn't take that much money. You say:
"In the end, our business lisense was around $3,000, because we had a license in Antiqua, so we can have an offshore merchant account (something I hit upon in another post last night)"
I admit my ignorance in this matter, as I don't understand what you mean by Antiqua and WHY you had to have an offshore merchant account, but personally I would never pay $3,000 to get licensed, unless I had no other options.
Every single thread in this place ends up as a pis-sing contest, so please just try to be mature when you post and from now on try not to show your ignorance more than the guy you're attacking.
reiterate
v : to say, state, or perform again
There, now don't you feel like a dumbass.
And Backbreaker, Mr. Hardworking Wonderman that knows harder work than anyone, I wasn't being sarcastic in my post, I was actually trying to have an mature, intelligent conversation, but apparently nobody on here is capable of such a thing. You really shouldn't treat people like they are stupid, especially when they were asking you questions to learn.
I know nothing of what it takes to get a business? Did I not just get done telling everyone I HAVE a business? I just have to say, I got all licenses, registrations, business bank account, everything done for under $50 (small fees added up) because I took the time to learn and set it all up myself, and if you add in a merchant account, it would STILL be a far cry from $3000. You may have had some special licensing or something, but I am just telling you this is what MINE cost, so don't tell me I know nothing about it. The merchant account and website are the expensive parts, but for a monthly fee and a startup fee, it doesn't take that much money. You say:
"In the end, our business lisense was around $3,000, because we had a license in Antiqua, so we can have an offshore merchant account (something I hit upon in another post last night)"
I admit my ignorance in this matter, as I don't understand what you mean by Antiqua and WHY you had to have an offshore merchant account, but personally I would never pay $3,000 to get licensed, unless I had no other options.
Every single thread in this place ends up as a pis-sing contest, so please just try to be mature when you post and from now on try not to show your ignorance more than the guy you're attacking.
backbreaker
Master Don Juan
First of all, you have a business, I had a company. There's a big difference.
Y our post was trying to be sarcastic.. I mean, why are you even ****ting me because I put forth the time and dedication to do something I wanted to accomplish? And as far as me being nice, I am one of the nicest guys you will ever meet on this forum. I get PM's everyday, and I always take the time to answer them as thorougly as possible. I even walked a guy though how to setup an offshore merchant account.
Now, it's great that you have your own business. But if you don't know what you are going to do yet, how did you incorporate the company? Did you incorporate it under General Merchandise? And that is a serious question, because it can have a drastic effect when it comes to the IRS.
I admit my ignorance in this matter, as I don't understand what you mean by Antiqua and WHY you had to have an offshore merchant account, but personally I would never pay $3,000 to get licensed, unless I had no other options.
Like I said, you have no idea.
Every single thread in this place ends up as a pis-sing contest, so please just try to be mature when you post and from now on try not to show your ignorance more than the guy you're attacking.
You made it one. You don't attack people, and then get offended when they defend themsleves. If you ddin't like what i had to say in my origional post, why say anything at all? Or anything with a negative connotation? YOu know how many threads I read on a daily basis that I want to respond and to tell everyone what I really think, but i know that is a waste of my time and you don't get anywhere by attacking people.
but with that said, I don't get into pissing contests, I have better things to do (or better yet women to do) with my spare time, then to come on this board and try to argue with a guy about a company I ran for almost 4 years.
The orignial post said you want to be financially free by the time youa re 21... don't let anyone tell you it's NOT possible because anythings possible if you put your mind to it. there is money in EVERTHING... just find something you love and stick with it.
pimpfromdayone
Master Don Juan
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It's amazing, you're still arguing after I tried to end it, what a man of character you are. The fact that you were successful does not affect me at all, even if you wanted it to. If I had made it in the business world like you claim to have made it, I would not be on this message board right now, I would be spending my money and working. Instead of continuing to act like a smartass, you could have addressed my questions in a mature manner like you claim to have addressed many others. You could have told me (in a very abbreviated manner) why you had to pay $3000 for an "antiqua" business license and why you had to have an offshore merchant account, but instead you would rather say:
"Like I said, you have no idea."
Yeah, you're really a nice, modest person. Someone admits their ignorance to you and you just continue to treat them like they are idiots who aren't worth your time. Anyone on these boards could go through these posts and see who the real problem is here.
Now I would be happy to answer your questions:
I didn't incorporate it in the beginning, because there was no need to. You don't incorporate a business that hasn't even seen a dime yet, there is no need to. I simply formed a partnership (with my business partner) and registered federally, under general merchandise/retail. The taxes pass straight through to the members (income taxes), and the business isn't taxed separately as in corporations. I didn't need the extra structure and support of a full corporation because once again, you can incorporate later and I don't see a need for it right now. My Federal EIN was obtained. Think what you want, but I just needed to do this so I was legal when I sold my merchandise and so I could get all the other things needed to be a business, particularly a sales tax id so I can charge state sales tax, a business bank account, and a merchant account for the website I planned to build, selling apparel and anything else I could find at wholesale prices. There is a site that sells WEDDING FAVORS that nets over $100,000 in profit a year now, just one site, one type of item. I eventually wanted to have multiple sites, each netting a decent amount of money, so I would have multiple money streams that made up a BIG income. Many have done just that. I know my plan is very loose, but you have to just get out there and try things sometimes. I don't really believe in following a certain rigid plan because things change constantly and you have to be flexible with your business. Currently I am just selling the last of my RL shirts on Ebay to get some money so I can explore other options. I am also going to college for the next four years, and possibly med. school after that. My "business" is basically sitting there doing nothing right now. Anything else you want to know? I have nothing to hide, unlike some of the people here, because I don't care what others think.... I'll tell you how much money I have, how much I have 10 years from now, how I spend my money, you name it. I still think it was a mistake for you to sell your company. I wouldn't feel comfortable retiring from my big money making scheme until I was like 35 at least.
"Like I said, you have no idea."
Yeah, you're really a nice, modest person. Someone admits their ignorance to you and you just continue to treat them like they are idiots who aren't worth your time. Anyone on these boards could go through these posts and see who the real problem is here.
Now I would be happy to answer your questions:
I didn't incorporate it in the beginning, because there was no need to. You don't incorporate a business that hasn't even seen a dime yet, there is no need to. I simply formed a partnership (with my business partner) and registered federally, under general merchandise/retail. The taxes pass straight through to the members (income taxes), and the business isn't taxed separately as in corporations. I didn't need the extra structure and support of a full corporation because once again, you can incorporate later and I don't see a need for it right now. My Federal EIN was obtained. Think what you want, but I just needed to do this so I was legal when I sold my merchandise and so I could get all the other things needed to be a business, particularly a sales tax id so I can charge state sales tax, a business bank account, and a merchant account for the website I planned to build, selling apparel and anything else I could find at wholesale prices. There is a site that sells WEDDING FAVORS that nets over $100,000 in profit a year now, just one site, one type of item. I eventually wanted to have multiple sites, each netting a decent amount of money, so I would have multiple money streams that made up a BIG income. Many have done just that. I know my plan is very loose, but you have to just get out there and try things sometimes. I don't really believe in following a certain rigid plan because things change constantly and you have to be flexible with your business. Currently I am just selling the last of my RL shirts on Ebay to get some money so I can explore other options. I am also going to college for the next four years, and possibly med. school after that. My "business" is basically sitting there doing nothing right now. Anything else you want to know? I have nothing to hide, unlike some of the people here, because I don't care what others think.... I'll tell you how much money I have, how much I have 10 years from now, how I spend my money, you name it. I still think it was a mistake for you to sell your company. I wouldn't feel comfortable retiring from my big money making scheme until I was like 35 at least.
pimpfromdayone
Master Don Juan
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Oh, I'm just putting ass-holes in their place I guess. Sifer, I just got done telling you there is no right or wrong, but evidently my post didn't get through to you. As far as my "diatribe", I am speaking as neutrally as possible, not attacking anyone, while others here are busy trying to tell me how stupid I am. You're right though, this whole conversation is pointless. To the guy who posted: you're not going to get any help on this site. You're only going to see posts from people who apparently get off on telling us all how successful and powerful they are.
See, the thing is you insist others to see things your way.
You told me that we have different goals, great with me. However nowhere did I see you say "there is no right or wrong".
Then you continue to say "you're right" "you're wrong", you put yourself in a position in which is hard to understand.
And when you attack others ("ass-holes"; etcetc), you expect others not to defend themselves when you get sarcastic ("There, now don't you feel like a dumbass."; etcetc).
Question for you; if you can't handle a few argument here and there in a forum where you can't see other members, where there is a barrier, how do you handle real life?
pimpfromdayone
Master Don Juan
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Real life is nothing like this. In real life, people have nothing to hide behind, and people don't dare fu-ck with each other this much.... it is a complete mind game. If they did, it would be no big deal, because in real life, MOST people know how to not take everything so seriously. Those who don't know how to do this are social outcasts. I have been trying to end this "argument" for the last 5 posts now but someone always has to continue with it. I have admitted my ignorance in certain matters, but people here apparently like to argue more than I thought I did.
If I somehow offended anyone here, I don't know how I did, but my apologies. I am man enough to stand up for myself, but I am also mature enough to admit my faults and weaknesses. I don't expect to see you come off your thrones and try to meet me halfway here, with at least a little understanding like I have shown you, so don't feel obligated to do the same that I have done..... we wouldn't want you to lose any of your authority and important image that you have on these message boards.
If I somehow offended anyone here, I don't know how I did, but my apologies. I am man enough to stand up for myself, but I am also mature enough to admit my faults and weaknesses. I don't expect to see you come off your thrones and try to meet me halfway here, with at least a little understanding like I have shown you, so don't feel obligated to do the same that I have done..... we wouldn't want you to lose any of your authority and important image that you have on these message boards.
pimpfromdayone
Master Don Juan
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I guess that's why you are replying to it then right? Well, I'll give you the last word, if it pleases you. Here you go:
Page
Master Don Juan
Enough with the b!tching.... i'd hate to see this great thread get ruined.
Page
Master Don Juan
Okay, I'm going to try and bring this back on topic:
Right about now I'm seriously thinking of incorporating to protect my assets from all the b@stards that will probably try to sue me at some point for whatever bullsh!t reason they can come up with. Face it--- excessive litigation is a big brown sh!t stain on the underwear of our current society, and I'm not going to let some a$$hole steal away my assets without doing all I can to stop it.
Kiyosaki talked about corporations in rich dad Poor Dad, and I completely understand why it is important to have one, but there are still some things i'm not sure about.
1. What kind of corporation is best if all I want is a holding corporation to protect my assets? There are C-corporations, S-corporations, LLCS, etc. I'm leaning towards a C-Corporation, am I wise to do this or is there a better alternative?
2. How do you set up a corporation? Do I need a lawyer or some kind of consultant, or is this something that I can do myself over the phone or web?
3. I've heard that Nevada is a great place to incorporate b/c taxes are minimal. Should I stick with Nevada or is there a better place? I know that could probably incorporate in some small-time carribean island country for next to nothing and pay practically no taxes, but I don't know for sure if that is the best option b/c there may be hidden problems that show up from owning a foreign corporation. Please advise.
Right about now I'm seriously thinking of incorporating to protect my assets from all the b@stards that will probably try to sue me at some point for whatever bullsh!t reason they can come up with. Face it--- excessive litigation is a big brown sh!t stain on the underwear of our current society, and I'm not going to let some a$$hole steal away my assets without doing all I can to stop it.
Kiyosaki talked about corporations in rich dad Poor Dad, and I completely understand why it is important to have one, but there are still some things i'm not sure about.
1. What kind of corporation is best if all I want is a holding corporation to protect my assets? There are C-corporations, S-corporations, LLCS, etc. I'm leaning towards a C-Corporation, am I wise to do this or is there a better alternative?
2. How do you set up a corporation? Do I need a lawyer or some kind of consultant, or is this something that I can do myself over the phone or web?
3. I've heard that Nevada is a great place to incorporate b/c taxes are minimal. Should I stick with Nevada or is there a better place? I know that could probably incorporate in some small-time carribean island country for next to nothing and pay practically no taxes, but I don't know for sure if that is the best option b/c there may be hidden problems that show up from owning a foreign corporation. Please advise.
backbreaker
Master Don Juan
unless you are public, get an S corp. You can always loose the S status anyway. S is more tax friendly to small compaines.
no laywer, go down to the Sec of State's office, or go online, and tell them you want to incorporate a company.
Once that is done, you have to file for S class status with the IRS.. I think it's form 2253, or 1120S, one of the two.
Nevada is a GREAT place to do business (incorporate) because if I am not mistaken, they either have very miniscule state taxes for corporations, or none at all.
Incorporating in the islands, is going to cost you every bit of $500, if not more, but if you have an "office" outside of the states, a bank account outside of the states, there is nothing the US gov can do, rather they like it or not
no laywer, go down to the Sec of State's office, or go online, and tell them you want to incorporate a company.
Once that is done, you have to file for S class status with the IRS.. I think it's form 2253, or 1120S, one of the two.
Nevada is a GREAT place to do business (incorporate) because if I am not mistaken, they either have very miniscule state taxes for corporations, or none at all.
Incorporating in the islands, is going to cost you every bit of $500, if not more, but if you have an "office" outside of the states, a bank account outside of the states, there is nothing the US gov can do, rather they like it or not
