setting up HR & Sales with company

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Face
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setting up HR & Sales with company

Post by Face » Sat Aug 27, 2011 7:58 am

Hello friends,

I am going to start a new topic with business related.Hope you guys got some ideas about it.going to describe my requirements now.


there is a company doing there business with web site making.there are getting contracts from the company who need web site & this company make those webs with using freelancers or local coders.Company owner is a coder & he has minimal knowledge about

marketing,
tax preparation,
accounting,
project management,
human resources

wanna know how to mange the thing with less time & good effective way.managing contractors, payroll, finances are the problems.I wanna know how to start this company organized.can get the assistance to each section.For an example can hire a person to book keeping & accounts.
other thing is he is running the company with his own ideas.He is using freelancing site to do all the thing.Those thing have made him busy & hard.Because of that his company in not growing well.Hope you guys got the idea about what I am telling.summery is we wanna make start the new company well organized.

He is using Elance for freelancers.
using myclientspot.com to manage clients.

he thinks that this methods are not good enough to increase growing.

First please tell me your ideas about this project.

PS_I am going to help him on this.I love to work in marketing.I am going to make business plans & system to his company to make a great profit to the company.that is my new hobby to assist him (He is one of my friend) :)
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Re: setting up HR & Sales with company

Post by Face » Sat Aug 27, 2011 8:06 am

If you can give me a good e-book to follow about this company organization it is great help for me.Other important thing is he is running his business in virtual.I wanna get understand that how a company runs. :)
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Re: setting up HR & Sales with company

Post by Neo » Sat Aug 27, 2011 4:12 pm

It is very common to run an offshore company over the internet. This is very easy for both ends and managing such a company is very easy. No taxes, no EPF/ETF... simply nothing unless you form a company. Until then you are called self-employed. That's the easiest way to run such a company. As long as you don't develop products to local market, you can run this tax free. Have a look at Myhome_myoffice.com. Lots of money is waiting online. Only thing is you need to have the required talent.

As I said before, if you form a company, then you'll have to follow the conventional procedures of the government. You need to start from company registration in Company House (Registrar of Companies) (Costs nearly LKR 40,000). Then you have about 2 years to ruin your company without registering under income tax. Later on you will have to submit all your annual returns to both Company House and Income Tax. My question is why are you going to pay those things when you don't earn from local clients. Check with Income Tax on this.

I'm not discouraging you on this. But just list down all the pros and cons in forming up a company. If your clients are happy to work with you directly (mostly the case in freelance projects), I don't see any requirement in added complications.

May be I'm not clear on the vision of your business. But according to my knowledge, if you guys are directly dealing with foreign clients, it is less complicated to handle.
marketing,
Do you need a marketing team to spend time of grabbing freelance business from internet instead of you? How if they learn the subject and taken the contracts away form you guys. In Sri Lanka, this is very common. Marketing guys are non professional trained for this purpose. It is very rare to find good guys for this.
tax preparation,
As long as you have only overseas cleints on freelance basis, this is not required (according to my knowledge). If you register a company, yes, you will have to follow the government procedures.
accounting,
This is also not required if you don't form a company. I'm not sure you will have to think about complicated accounting as long as you don't have to submit annual tax returns.
project management,
This is a huge subject. If you are getting large scale projects which require 10 or more developers, then you will have to plan it from design to delivery. Missing one step might affect your reputation. However, if it is small scale projects which needs one or two developers, it's easy to handle. Software development techniques like water fall model, DFDs, Flow Charts, Use Cases can be used to help the design phase.

Since you are working with a client who knows what he needs, requirement analysis which is one of the most problematic parts in software development isn't required.
human resources
For 2, not needed. For 5+, this must be taken in to consideration. If you are going to pay salaries, then you can consider a company registration under provincial counsel (LKR 500) and register the employees for EPF and ETF. If you are getting the service from them on contract basis (they can leave you at any time) you can avoid this as well.

So in conclusion, if you go for a registration, you will have to start paying taxes and follow other government procedures. After some time, if you find a good client who needs to form a company in Sri Lanka under BIO (Board of Investment), you have to go for a company registration. Until then, it is advisable to run your business as now.

If you have any question, please ask ;)
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Re: setting up HR & Sales with company

Post by Face » Sat Aug 27, 2011 9:52 pm

Thanks for the reply NEO !! I got some ideas from you to make a plan.This is not for me.I am just helping him to make his company organized & planed with more efficient :) He is a coder.Doing php coding.making webs.He is hiring freelancers to do the projects.Now He is going to improve it as a company.
he got a few freelancers with him (Honestly I don't know the amount of the workers.)He is managing the workers by using my cliecntspot and elance.that is ordinary & he is fed up with it.Need good ideas to overcome the stage he is in present :) I am using this to make my marketing ideas on his business.Not to get a profit share :P But to practice my ideas on business.I love to do marketing in practice! :)

I will ask some few questions about some sections.I am making the company plan now a days.small company plan.how to manage the workers pay roll system.I have some places to get helped from professionals.

again thanks for the help & the article

I also feel I can start a virtual company some day :P :P
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Re: setting up HR & Sales with company

Post by Neo » Sun Aug 28, 2011 1:44 am

Oaky. I only now understood that he takes business and outsource to few other people. Are those guys are his permanent employees with a fixed monthly salary or he gives them on contract basis? If it is employment on a fixed salary, he should register a company and register all employees under him for EPF and ETF. Otherwise the employees can take legal action against him in labour courts at any time. If it is contract basis without written agreements, then he can run without a registration (according to my knowledge). If he is going to have written agreements under his name, then of cause he will have to register a company since he is earning a profit by outsourcing.

When considering all that, I also feel he should have a proper business plan to manage his clients and employees. It is not a good idea to set up a company by depending on freelance business. Once you form a company there is noway out. So ask your friend to try to find a good client who will give him constant business. I have some knowledge and expereince on the procedures so I would like to provide assistance to you free of charge on this. So if there is anything, ask me ;)
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Re: setting up HR & Sales with company

Post by Face » Sun Aug 28, 2011 7:41 am

neo thanks for your help.I understand the thing.He is working with contract basis some are paid for monthly.some are hourly.some are paid for the task. :) this is a nice way to run a company :P I like that way.But I also understad that it is now a good way to run it long time.We can earn money from this way.I will learn one thing (Such like make theams,graifcs,or any)& start such a company to make complete webs :P when I am going to start that I will ask you for some help.

I made a company frame design for him.He is happy with it.thanks guys
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Re: setting up HR & Sales with company

Post by Neo » Sun Aug 28, 2011 12:12 pm

Excellent. I still don't know your other talents very much. But when it comes to graphic designing, you are a master :)
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Re: setting up HR & Sales with company

Post by Face » Mon Aug 29, 2011 9:26 pm

Ahhh thanks !

But I am not a master.But I love to learn.I like web designing very much.First I am learing designing PSD s from webs.then I will try with HTML :D
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