Fresh Startup

[sykotik]

Im in the process of creating a discussion forum very much like this one and have just started experementing with the creation of an Ecomm store essentially what i want is to get the forum live and start generating interest and a good solid community obviously the content will solely based on the product and industry which i am attempting to tap into, then at a later stage i would like to incorporate that forum into a fully functional ecommerce store. I have absolutely no experience with this im creating both the forum and the store using open source php software and have come quite a long way id like to think.
What id like to know from you guys, the experts, is do you think this idea is a bit too over ambitious? If i might add i work full time and this will operate as a side project, my earnings by no means could cover a substantial stock file so i intend to operate on a kind of dropship prinicipal and slowly build a stock profile. Ive gathered that my site will be the turnkey and traffric generation is paramount for success and so recently oblivious ive come across terms such as adwords, adsense, wordpress, affiliates, SEO, meta tags etc etc and feeling a little overwhelmed.
Look forward to your input guys!!!

[Bizfact]

My two cents

Well, for starters I don't think you can be over-ambitious. You just have to support your ambitions with practical thinking and action.
I wish you all the best.

[Dave A]

My first question would be which is your priority goal - building a community website or building an eCommerce website?

[sykotik]

My first question would be which is your priority goal - building a community website or building an eCommerce website?

My first priority right now is the forum, which is almost complete, i just need a name... Will use that to get familliar and 100% comfortable with the administartion of my own site, get to know my host and its capabilities or lack of and most importantly build a loyal community.

[Dave A]

In that case I'd suggest if you want to get going with eCommerce any time soon, you do it as a completely different project on a different website. There are some niches where I've seen it work, but mostly I've seen perfectly healthy communities die with the introduction of a shop.

...and most importantly build a loyal community.

That's the toughest challenge in the whole process of establishing a community website, really. If I can give one tip, you stand a far better chance of succeeding if you're doing it for the love of it rather than thinking it's going to make you money.

[sykotik]

In that case I'd suggest if you want to get going with eCommerce any time soon, you do it as a completely different project on a different website. There are some niches where I've seen it work, but mostly I've seen perfectly healthy communities die with the introduction of a shop.



That's the toughest challenge in the whole process of establishing a community website, really. If I can give one tip, you stand a far better chance of succeeding if you're doing it for the love of it rather than thinking it's going to make you money.

Thats an interesting direction to consider, i did want them to both compliment eachother as one entity, but now that i think of it... It would make sense. Unless both are introduced simultaneously??

The community was an idea with no profitable business in mind, and was simply for the love of it, The business idea developed later on...

[Dave A]

i did want them to both compliment eachother as one entity...
Unless both are introduced simultaneously??

If your primary goal was the eCommerce store, that would probably be OK, although I'd suggest start off with a blog first. If you get great engagement in the blog, to the point where people are communicating with each other via it (rather than just with you), only then would I consider introducing forum functionality.

As much as you might hope the traffic in the forum will generate interest and new buyers in the shop, the reality is it will be the other way around. You will find the mere presence of the shop is such a strong influence it will be the primary driver that shapes the development of the community, whether you like it or not.

[sykotik]

If your primary goal was the eCommerce store, that would probably be OK, although I'd suggest start off with a blog first. If you get great engagement in the blog, to the point where people are communicating with each other via it (rather than just with you), only then would I consider introducing forum functionality.

As much as you might hope the traffic in the forum will generate interest and new buyers in the shop, the reality is it will be the other way around. You will find the mere presence of the shop is such a strong influence it will be the primary driver that shapes the development of the community, whether you like it or not.

Thanks for the advice Dave, I really appreciate it!! I could switch the main focus to the Ecom store, at the end of the day i only really want to register one domain. I was thinking maybe a wordpress stlye blog site with seperate page links to the store and forum it seems to be the standard in my experience browsing through many websites. Im not sure, Yes ultimately i do want to turn a profit. The hosting and domain registration etc does cost money and i would like to get it right from the get go.

[Dave A]

i would like to get it right from the get go.

No battle plan survives first contact with the enemy

Good luck!

[sykotik]

No battle plan survives first contact with the enemy

Good luck!

No worries then!! because i love the thrill of the battle

Ive managed to intergrate my forum with the ecom store so when someone visits my URL they will be taken directly to the store where there is a link to the community forums. logins for the store and forum are seperate so should someone wish to partake in the community then great they can follow the link and register! I dont know about the blog site just yet... This is a side project to my full time job... so trying to maintain three site elements may be too much... Now i just need to find an avaialble good domain name!

One other thing, I will be trading as a SP what are my tax obligations? and do i need to register for VAT from what ive heard VAT registration is optional and compulsory when income exceeds a certain barcket?? Enlighten me please??

[Dave A]

On VAT - whether to register or not really depends on quite a lot of different factors. This was one of the earlier discussion on whether to register for VAT, but there have been quite a few others since.

[sykotik]

Read a couple of the VAT registration related threads, what ive gathered is avoid VAT registration, unless my turnover exceeds 1 mil p.a i can do without the formality right now....

Also what about tax? ive never registered with SARS... sadly ive never been in the bracket for PAYE until recently ive noticed PAYE on my payslip? What are my tax obligations on a personal capacity and when operating a business as a sole prop?

[Mark Atkinson]

Read a couple of the VAT registration related threads, what ive gathered is avoid VAT registration, unless my turnover exceeds 1 mil p.a i can do without the formality right now....

Also what about tax? ive never registered with SARS... sadly ive never been in the bracket for PAYE until recently ive noticed PAYE on my payslip? What are my tax obligations on a personal capacity and when operating a business as a sole prop?

I'd say that's about right for VAT.

Regarding income tax as a sole proprietor. Long story short: You will need to add all your income earned from the site to your taxable income and you will be able to deduct the expenses you incurred in producing that income. It's obviously a lot more complex than that, but that's the just of it.

At the end of the year you will submit a tax return to SARS detailing the income you've earned (from your job as well as your website) and calculate your tax payable. (You will be able to deduct all the PAYE payments paid by your employer and pay in the net tax payable.)

Make sure you keep comprehensive records.

Does that make sense?

[Dave A]

Just to add to Mark's observations -

Also what about tax? ive never registered with SARS... sadly ive never been in the bracket for PAYE until recently ive noticed PAYE on my payslip?

Given the new requirements of employers from SARS, your employer would probably have registered you for income tax if you weren't previously registered. Wouldn't hurt for you to ask your employer though just to double check.

[sykotik]

I'd say that's about right for VAT.

Regarding income tax as a sole proprietor. Long story short: You will need to add all your income earned from the site to your taxable income and you will be able to deduct the expenses you incurred in producing that income. It's obviously a lot more complex than that, but that's the just of it.

At the end of the year you will submit a tax return to SARS detailing the income you've earned (from your job as well as your website) and calculate your tax payable. (You will be able to deduct all the PAYE payments paid by your employer and pay in the net tax payable.)

Make sure you keep comprehensive records.

Does that make sense?

Definately, Ill follow up with my employer too see if i have been registered income tax. Thanks guys!!

On another subject, just to be clear there is no formal registration for a sole prop? in terms of banking do i operate with my personal account? or do i need to open an alternate seperate account? Not sure how to go about it with regards to the business name etc??