In this episode Wilson will be sharing his 400k core story and why you should start a company with an LLC or Inc.:
Time-Stamped Show Notes:
• 01:38 – What happened when CRA contacted Wilson?
• 13:35 – Lessons learned and why setting up a business everything right from the start is a must.
• 14:14 – Why is it important to understand the language of bookkeeping.
• 19:37 – Having a super clean book and accounting can put you in a position to sell your business if you’re trying to exit.
• 25:21 – The main benefits of having a corporation as opposed to just doing it on your own personal bank accounts.
• 27:11 – Wilson;s Angry Birds story..
• 31:43 – Action steps for the audience.
Resources from This Interview:
Leave Some Feedback:
• What should I talk about next? Who should I interview? Please let me know on Facebook or in the comments below.
• Did you enjoy this episode? If so, leave a short review here.
• Subscribe to Actualize Freedom on iTunes
Disclaimer: As with any digital marketing campaign, your individual results may vary.
Full Transcript of The Episode
Episode 13 Complete.mp3
Intro: [00:00:00] Are you looking to optimize your mindset and lifestyle for success in today’s business world? You’re in the right place. This is where you get to build your freedom through promoting through Facebook and selling on Amazon. Welcome to Actualize Freedom with your hosts Wilson and Danny.
Danny: [00:00:23] This is Actualize Freedom. The no-bullshit podcast for hacking your freedom from selling on Amazon and lifestyle optimization. My name is Danny Carlson.
Wilson: [00:00:32] And my name is Wilson Lee. Today actually I’m going to be sharing with you about my 400K core story that made my life a living hell for almost a year. So I mean a little reminder that photos can be found at ActualizeFreedom.com/13 and that is where you can grab all the resources and everything that we’ve been talking about.
Danny: [00:00:56] Awesome. So we’re going to be diving into a really common question from Amazon sellers here just beginning. And that is should they start with an LLC or an INC basically a corporation or you know do they even need a business whether they should invest proper bookkeeping and everything like that. Very complex to most people have never started a business before. Even to most people who have started a business and then Wilson has a really good story to illustrate there. So first let’s dive into two years ago. What happened two years ago when the CRA, the Canada Revenue Agency is just like the IRS of Canada contact you Wilson? What happened there?
Wilson: [00:01:38] It was really crazy because I mean I hear a lot of horror stories about you know like the government coming after the money that you’ve made and so and so forth. So for me to get the letter from the IRS every time I get a letter that says Canada Revenue Agency, I skip a beat because I’m always worried. I’ve been running business for the last 10 years in brick and mortar and different fields and it never really occurred to me that they would contact me and while I was reading the letter, I still remember having lunch in the office. And as I was skimming through what it was saying, It says Thank you Wilson for your corporation. We evaluated your annual income. And right now we’ve readjusted your annual income to be more than four hundred thousand dollars. In addition what you have reported. OK. And I’m like Oh my goodness. What is going on? What does it mean. I quickly got my accountant and I’m like Yo what does this mean like? What does it mean? He was telling me that and sure you basically owe them a hundred and twenty thousand dollars in taxes plus compound interest for two years.
Danny: [00:02:55] Oh my goodness. That is not a small amount of money to just build to come out of nowhere.
Wilson: [00:03:00] Not at all right. And I’m like Are you kidding me? If I’ve made more than 400 thousand dollars more than what I’ve reported. I would have bought a house. I would have wanted a vacation for my family to the Maui or like I could have just retired for a year. Like are you freaking kidding me like why am i still hustling so hard if I had more than 400000 dollars in that year? It just doesn’t make sense at all and I actually have no clue how they came up with that number and why they’re accusing me of this number and so on so forth like it was just crazy.
Danny: [00:03:38] OK. So just to get some context here. This is you were not doing your own bookkeeping.You are hiring out your books. And so maybe there might have been some doubt. Maybe your bookkeeper had been messing something up at the point where you’re thinking hey maybe my bookkeeper is like actually doing something illegal or like is incompetent or something. Did that go through your mind?
Wilson: [00:03:58] Well to be quite honest with you I cannot see that the blame was on my bookkeeper. I mean it most likely is because of my poor bookkeeping structure that I had in place. And also like not starting my LLC and my INC right from the beginning. We are making quite a bit of revenue. It’s a seven figure revenue that we make every year. And I kind of muddle it between my personal expense and mine and my business expense in the first year because I was trying to save some money. And that really burned me because of the fact that all my bookkeeping everything’s just kind of mumbled together with my you know my car, my mortgage and personal expenses, personal development stuff and like the numbers were just not as clear as it should be. And yes, that definitely warrants CRA to be on my ass to tell me about Hey, you know what. Let’s get your shit together. But it definitely does not warrant the point. OK. How did they come up with the 400k? So I quickly called them and I’m like you know why is it that you think that my revenue was more than 400k than I reported? And They were telling me that oh I was at your event and I was having clickers count and how many people were coming to your events. How many people were playing games. How many people give out. And I’m like How long were you there for? He’s like I was there for three days for one hour each day. So I’m like wow no kidding the numbers don’t make sense because you know we run an event for a whole five months and the traffic for each week is completely different. There are raining days, there are sunny days, there are like random days that people don’t show up. There are a lot of variables and factors that determine the sales. So you cannot base my income based upon three hours of your calculation and just times up by how many hours and how many days we operate and discount it and so on so forth. So I mean it took me two years of fighting back and forth with them. It’s like literally a battle to find proof because in their eyes I’m guilty. Otherwise proven. And you know it’s such a bad idea to just mix business with personal.
Danny: [00:06:22] That’s insane. So they literally based this entire thing off of someone from the CRA showing up and just, for three days, sitting there and trying to calculate how much money your business is making and they based this entire two-year battle off of just one three-day window?
Wilson: [00:06:40] That’s exactly what it is. I mean it’s my job to prove to them that they’re wrong and that my sales were not this that my expenses were credible and that my payroll was this and so on and so forth. And because at that time I was paying some of my payroll through cash because you know I didn’t know any better. I didn’t have a bookkeeper. I was just like you know I’m gonna cheap out. I went through everything my way or the way that Internet teaches me. And it was definitely a hellhole because it’s not only like taking the time out to figure out all your expenses and figuring out all your paperwork and backtracking. You know what. Four or five years ago, it’s hell. You know like if I’m telling you to even figure out your own personal expenses and ask you Hey, why did you have five thousand dollars deposited in your bank just from like two years ago? You’re going to be like Oh my god I totally forgot. Right. And if you can’t prove where the 5000 dollar came from, it becomes your revenue.
Danny: [00:07:42] Totally. Yeah that’s a very scary reminder for all of us here. That’s one of the biggest questions that Wilson and I get all the time from new sellers. How should I set up my business? Should I set up this way? Can I do it off my own personal account? Do I actually really need like QuickBooks or some kind of accounting software? Can I do it myself? Very complex. But Wilson’s story just shreds really good light on why you should actually be doing it properly in the first place. So maybe we’ll sneak a share with the audience a little bit about how you did have a set up. Was it all on your own personal personal bank accounts or personal credit cards or did you have a sole proprietorship solid business set up instead of a corporation? What was the situation?
Wilson: [00:08:24] So when I first set up this business, it was all under my personal name and personal account because I wanted the points because I’m like oh you know what I want to acquire as much points as possible and over the years you know like I have acquired more than two million points. OK so you can you really imagine how much..
Danny: [00:08:41] Card points for travel and stuff?
Wilson: [00:08:43] Exactly. So right now I have been traveling for free like for years now because of all these points. So because of that mentality and I think a lot of people which are in the e-commerce field they have the same mentality because you know running ads you’re going to be able to make your travel like paid off for by running ads because like you know you run 30 paying ads that’s already like a roundtrip ticket with hotels and everything paid for. And that was my mentality. And so I ran everything through my credit card and I thought that I could keep good tabs on Hey, you know what, this is personal and this is business. Yet it’s very very difficult for you to keep track of if you don’t do it right away. If you don’t do it on a month to month basis. And if you don’t have a proper structure in place, it would be very very difficult. And your bookkeeper would hate you for doing that because he like the numbers clean. They like to reconcile. They don’t like having two or three different books on the same account because it just confuses everything.
Danny: [00:09:46] Yeah no kidding. That’s definitely a scary situation there. Out of this situation obviously it was it was very difficult lesson for you to learn and you learned the hard way. What were some of the takeaways that you got out of this crazy experience that you went through?
Wilson: [00:10:02] Yes. So like before I dive into the takeaway, there’s actually something that I want to add in there because you know diving through expenses and trying to figure out where you put your money is and where the money comes from and so on so forth. Like from two years ago that’s one thing. That’s hell itself. But it’s another thing to always have this in the back of your mind but there are uncertainties and I know what’s going to happen to me. Like after I find these expenses and am I going to be in hole for 120k? Is it going to work is it not going to work? I mean it’s the mentality and the fear of the unknown that really handicaps you. That really keeps you up at night. That’s the feeling that makes you feel so terrible and that for me quite frankly is what really handicapped me from trying to grow for the past year since they have contacted me. And it’s very very difficult because of this haunting uncertainty that’s always hanging there that’s occupying a bunch of bandwidth in my mind until at this point I’m just numb to it and it’s like you know what like two years later I’m like OK it’s good but at that time during that year, it was complete hell for me because of an underlying haunting fear of unknown.
Danny: [00:11:30] Oh yeah. I mean I’ve gotten myself in some scary situations where I didn’t know it was going to happen financially and otherwise. But I mean that’s a huge 120000 dollar bill you might be liable for. There’s also the worry of like tax fraud and get you thrown in jail. You know if they find some way to potentially do that. That must have been something that was scary to think about as well. Like stab the dagger in you right now here.
Wilson: [00:11:58] Tell me about it. Like one point in time because like oh there’s one point in time I’m just like you know what maybe I should actually move away and just forget about this thing. I’m not even kidding you.
Danny: [00:12:09] Travel to Chiang Mai and just start a new life there with some new friends or everything.
Wilson: [00:12:14] On that point, I was not exaggerating like I’m not even exaggerating at all. That’s exactly what was going through my mind like just moving to another city, you know wipe it clean and start fresh like I’m not kidding. It’s that bad.
Danny: [00:12:27] Yeah. And that just brings us such a good point here. So the answer to this question that everyone keeps talking about Should I start a corporation instead of my business right from the beginning? Well let’s make a little risk calculation here. So in Canada it costs 350 dollars to register your corporation. You can do it online in like five or ten minutes if you’re only one shareholder. And that cost I think 40 dollars for a name requests to get the name for your company approved. So what is that? That’s 400 Canadian dollars which is like 300 American dollars. And that’s it. Then you pay ten dollars a month or whatever for your basic QuickBooks and on the flip side here you have that 120000 dollar wage holding over your head and a two-year battle with the government thinking you might go to jail. To me, I’d pay 400 dollars to just get rid of that whole mess and not even have to worry about that. Four hundred dollars it might seem like a lot when you try to start a business and be really tight with your money and smart about it. But I mean you know after a conversation here you can really see the smart thing is to just do it right from the beginning and just bite the bullet on that four hundred dollars.
Wilson: [00:13:35] 100 percent. And you were just speaking about the biggest lessons learnt. Now if I would be wanting and inspired to grow and operate on a level of a 7-8 figure entrepreneur, then I need to start paying attention to my books and set up everything right straight from the get go you know. Number one thing that we all need to understand is that bookkeepers and accountants. They suck. I’m not even kidding you. No offense to them. Hey you know what. There are the good ones out there but majority of them they suck.
Danny: [00:14:08] I’m sorry if any of you guys are bookkeepers or accountants. You guys are cool because you’re getting into Amazon.
Wilson: [00:14:14] Yeah totally. Quite frankly they don’t care. They’re just robots right. They are trained with a very specific skill set which is to make sure that your books balance. That doesn’t mean that we always have your best interests in their mind right. They don’t understand and they don’t need to understand how your business operates. They just need to make sure that your box would balance because each business is very very different. For them they’re just like OK you know what my job is to make sure that it’s balanced. I make sure that everyone’s paid. I make sure that everyone with the government is paid, taxes is done, GST, HST, whatever the case may be and that’s their job. They’re not advisers they’re not going to tell you that Hey Wilson, you should lower your cost of goods sold. Hey, you what if you increase your labor by another headcount, you’re going to be able to increase the revenue that they bring in and in turn you’re going to be able to make more profits. They’re not trained to do that. At least majority of them they’re not. And so I know is for you to make sure that you go take a course yourself. And I’m not telling you to freaking do all the numbers yourself. I’m telling you to actually understand the language, understand the principle of how it works right. So in that way, you can know your numbers. Understand why having 50 percent cost of goods sold is no good right. Understand what are the main factors that would contribute to your profits and understand the levers that you can have and that you can maneuver to make your business thrive you Know.
Danny: [00:16:02] Oh yeah. I think that’s such a good point Wilson because like you said these people, the accountants and bookkeepers generally are not very skilled in business and it’s up to you to understand their language just enough so that you can actually make good decisions about your business because they are going to allow you to go ahead and still make all these mistakes like you’re one of their clients as long as everything is good and they’re all bookkeepers eyes like OK all the books balance you know this would technically pass the CRA examination or an IRS examination. That doesn’t mean that they’re going to tell you if you’re making some big business mistake or some other kind of mistake. So learning the bookkeeping and the accounting language enough so that you can understand what they’re saying and then point out any kind of mistakes or any kind of changes that you want to do to how they’re doing things I think is super super important.
Wilson: [00:16:54] A hundred percent.
Danny: [00:16:56] And what are some of the benefits of having systems like this set up when you actually do your books all in good order?
Wilson: [00:17:03] Oh it’s beautiful beautiful I can’t even go into like how good it is like. Just so you know I’m not like a math freak like I don’t like numbers. Honestly I don’t just because I’m Asian doesn’t mean I love numbers. That’s not the reason why I’m ____.
Danny: [00:17:16] OK I’m happy. So you love numbers?
Wilson: [00:17:19] No not at all. The reason why I love business is because I love to have an idea and execute on the idea. And that’s what keeps me up at night. Like I’m so like oh my god what can I do with this and the excitement of doing different things and seeing the action, seeing how everything takes place and being in trenches makes me so excited. And that’s what makes me love business OK. It’s not the dry numbers that Oh my god I’m looking into the spreadsheet looking at my financial statement. OK. This number and this number what does it mean? Like oh ok cool. Now that I have 20 percent cost of goods sold, then what? Like that doesn’t keep me interested in running my business at all Ok. The reason why you need to understand your numbers is because it allows you to make better business decisions. OK. It allows you to know which levers to pull in order for you to be able to profit more, in order for you to be able to let’s say for example if you want to buy a mortgage or buy a house, you need a mortgage and if you don’t know how do you play with the numbers so then that way you get paid out more so then you have credit. So now you can afford a mortgage then it defeats the purpose of running a business. Right. And if you don’t know how to lower your advertising costs and lower your expenses and lower your cost of goods sold, your shipping and defer some of these numbers then you’re not in a position to sell because selling is basically a solid business on how you value the business in short OK I might be wrong. There’s a lot of ways to value the business but in short it’s basically your profit times a multiple Ok. At the end of the day It’s nothing to do with your revenue. You may be making 10 million dollars doesn’t mean your business is worth 10 million dollars. If you’re making 10 million dollars what is your profit if you’re making only 100k a year. That doesn’t mean you have a sick ass business. OK. So anyways at the end of the day, if you making 100 grand times that number by a multiple of two, three, four doesn’t really matter depends on a lot of variables. Sometimes that’s basically the valuation of your company. So worth like a 10 million dollar company in terms of revenue making 100K a year. Your time’s up by 3. That means your business is probably worth 300 K.
Danny: [00:19:37] Totally. Not To mention that no one is going to buy a business that has terrible books that are all over the place and can’t actually very accurately depicts this kind of information. No one’s going to buy a super messy business. There are going to be interested at first and then they’re going to look into it more and they’re going to be like this is a ticking time bomb. This profit is maybe not actually the real profit. Maybe they’re good. This Business is going to be audited really soon and it’s a total mess. It is the total mess we’re going to have to pay someone six thousand dollars to go back through all the books only to find out that this business owes the government’s 250000 dollars or whatever it is. So yeah. You’re not going to be able to sell your business unless your books and accounting is super super clean.
Wilson: [00:20:18] Totally and I mean the reason why people want to buy a business is because of the fact that they feel that this business is undervalued at this point. OK. They see all the numbers from your books. They understand what levers to adjust in order for them to be able to make even more. So for example a 10 million dollar revenue business makes 100K, someone offers them 200K and buy the business. The person that was originally operating it might be really shitty at controlling all the numbers. Therefore his profit is really low. Someone offers him a multiple of two, he accepts the deal. So someone just paid 200k. Now the new owner comes in. He knows for a fact that if he cuts down on labor costs by 10 percent, increases his marketing costs by 10 percent, he’s going to be able to make 20 million dollars. Right. Bringing more cash in from there onwards he can lower or continue to adjust some of the levers in order for him to be able to gain much more in profit. So in turn he’s going to be able to make profits of what 20 percent off the revenue which after a year would be 400K. So within a year the new owners are able to tweak the levers and to make more money in the business that people have built. So in a gist that’s exactly what it is. And if you have your books right, you’re going to be able to be in a position where you can sell your business so that you can have an exit. And this has precisely allowed me to sell two of my businesses which I can go over in details if you guys leave a comment below. Leave us a comment. Leave us a review. Let us know if this is something you want us to go into because I’m not sure if this is something that you guys have any interest in.
Danny: [00:22:03] Yeah I know from you know personally I think I’d love to hear Wilson talk about his two businesses that he sold 10 years business experience and two years selling businesses especially with how hot selling Amazon FBA businesses is right now. I have a number of friends who currently have their FBA businesses up for sale and they’ve been operating it for less than a year and are able to get quite a good multiple on that right now just because they’re super hot. So let’s just go back to your story about the appeal. Like the whole 120000 dollar taxing here. What’s currently going on with that case?
Wilson: [00:22:40] Well we’re still fighting back and forth to be honest if you like. One thing that you guys need to understand is that CRA or IRS they don’t care about you. It’s your job to prove them that they suck and it’s your job to prove them that they’re wrong. And that’s reason why for me like initially I was operating from a place of fear. And after being in it for a whole year I’m like you know what I need to stand up for myself. There’s nothing to be scared about. Like I mean if it goes through, it goes through. If it doesn’t go through, it’s my duty to make sure that I fight it off. And since then I fought off more than half the reassessed amount. So right now we’re still fighting. We’re still going at it and I’m still healing. There’s still so much proof I’ve been finding industry experts to show them that hey my cost of goods s old would not allow me to make this much revenue. For example, if I had been making let’s say 100k in sales in selling bubble tea per se, I’ve only been expensing five thousand dollars of cost of goods sold and an industry expert would allow you to tell you that 5000 dollars in cost of goods sold in ingredients would not allow you to create a hundred grand worth of products. It just doesn’t make sense. Does that make any sense to you Danny?
Danny: [00:24:07] Oh absolutely yeah. And that’s a great way to get flagged by the CRA when you’re making claims like that on your tax return.
Wilson: [00:24:16] Totally.
Danny: [00:24:17] It really doesn’t make sense. Yeah.
Wilson: [00:24:18] Totally doesn’t make sense and that’s the reason why I’m going back to CRA and I’m like hey you know what Look at my cost of goods sold. Look at my labor. Look at the hours of operation. There’s no way we can attain this level of success that you claim that we have. And so again. The second takeaway is that you know what the government don’t really care about you. They are being paid in order for them to actually get a fine to it actually satisfies the amount of time they have spent on your case. So at the end of the day, they’re going to have to have something. Give them something. But if it’s outrageous then stand your ground and slight fighting.
Danny: [00:24:56] Oh yeah I think that’s absolutely absolutely super super important. So we’ve touched on this a little bit about why setting up an LLC or a corporation is definitely a good idea. So maybe let’s talk about some of the benefits. Why is it actually, what are some of the main benefits of having a corporation as opposed to just doing it on your own personal bank accounts or in a sole proprietorship style business?
Wilson: [00:25:21] Dude. Aside from the fact that proper bookkeeping is a must and that LLC incorporating allows you to do that, you don’t want your personal assets on the line. You don’t want all your stuff that you’ve been working for years to be on the line when you’re sued. I’ve personally been sued twice OK. I’ve been sued twice of stupid reasons. And I mean I don’t even want to get into that because that’s completely different story. I don’t want to sidetrack too much. I’ve been sued twice for stupid reasons and everything of mine was on the line and I’ve personally sued someone three times Ok. Not for stupid reasons is because one of them is because, one of my employee actually stole all my manuals and stole my business idea and my supplier and manufacturer started her own shop. I’m not even kidding you.
Danny: [00:26:19] Wow.
Wilson: [00:26:21] Wow. Freaking amazing.
Danny: [00:26:23] That’s bold too. And like she was signing a non-compete agreements and stuff when she was your employee, I would imagine?
Wilson: [00:26:29] Everything. So that’s a reason why I had so much ground to sue her. And actually I won and actually got like five-figure compensation from that which was a pretty good sum, but then I mean at the end of the day definitely set up your LLC. You don’t want your personal assets to be on the line.
Danny: [00:26:52] Yeah. No kidding here. Just really quickly I’m sure the audience is curious about the anywhere details you want to share about these lawsuits here just like you know how much money was up for grabs or what they’re trying to do was stupid, how do you defend yourself or what any kind of interesting tidbits about that.
Wilson: [00:27:11] OK so one of the reasons why I was sued is because I was selling knockoff stuff at this local market. Right. You know what I have no shame in it. And it was some knockoff stuff. So usually what happens is that big companies, they hire a lawyer, an overseas lawyer and they would pull in their resources from different brands. Ok. So majority of time it’s not worthwhile for a brand to hire a lawyer from overseas. There’s a bunch of investigations come after you and make you pay them. Majority of time does not go through. So what they do is they hire a lawyer. They talk to all the different industry. They talk to the people within their own industries. So then they’re able to split the cost of that lawyer and the execution team and what the word does. And that team does is they go to different events or different camp businesses. They scout out hey you know what where is it that these people are having copyright issues and they go and submit a cease and desist order. Right. They would also have to hire cops that goes along with them so then they can confiscate the items and everything. And honestly just because they sue you or just because they hand you a letter of a cease and desist doesn’t mean that they’re going to win. It’s going to take them hundreds of thousands of dollars just to bring you to court. Right. So when you have these letters to cease and desist, the only thing you need to do is make sure that you don’t do it again. That’s the only thing you need to do. Just don’t do it again. And they would not come after you. It’s not worth the time. It’s not worth the money. They need to prove the damages that you have caused them. They need to prove how much money that you have made off them. They need to prove everything. And majority of time you’re just a small potato that doesn’t. It’s not worth their time. They just want to scare you. And that’s reason why they’re suing you. They give you a cease and desist. Another time was when Angry Birds sued me because I have right when Angry Birds came out, I thought it was a huge opportunity. It was a great idea. So I contacted the manufacturers in China. I created all these plush dolls of Angry Birds and they didn’t even have it at that time. So it was selling like hot cakes. And I created a game out of the angry birds theme and this was like right when it’s at it’s peak of Angry Birds.
Danny: [00:29:37] So you were the first to market with some Angry Bird plush toys like even there were no official license Angry Birds plush toys out there? You got to create it.
Wilson: [00:29:45] Exactly. That’s exactly what it is. And at the same time, I also like got Cut The Ropes. Have you heard of Cut The Ropes?
Danny: [00:29:51] Oh yeah I know that game. I used to play that.
Wilson: [00:29:54] Yeah I created that one too. And you know what it was good. like I mean we were the only ones that were selling it because even the game themselves they’re so focused on the game that they don’t have the time to deviate to create plush dolls. And at that time when I was in the industry so I’m like you know what let’s do it. So I got a cease and desist letter from them as well and I’m like you know what it’s not worthwhile. I had the first mover and I just stopped from there onwards.
Danny: [00:30:20] Yeah. If you guys live around the Vancouver area and you’re looking for a whole bunch of this knockoff stuff. Richmond Night Market is amazing. Just go walk around there. You can buy any kind of knockoff whatever brand of Pokemon or under armor or whatever the heck you’re looking before.
Wilson: [00:30:35] Just so you know, I don’t sell them anymore. Right. So it’s not me. Don’t send me any letters. Don’t come after me and sue me, please.
Danny: [00:30:42] Wilson has learned his lesson. He doesn’t want to be sued the fourth time.
Wilson: [00:30:47] No no no. I mean at the end of the day it’s operating business is much more at this time in my career. It’s much more about longevity. It’s much more about creating a brand and something that would last. It’s not about making that oh that extra like 20 bucks, 30 bucks or whatever the case may be. It’s not about that anymore.
Danny: [00:31:10] Well I hope you guys are aimed at a higher than an extra 20 or 30 bucks. I just got to say that. But I totally agree with you. The short term mentality a lot of times gets us into these kind of troubles right. Or doing something just like oh I want to make an extra five hundred bucks this month. I want to make an extra thousand dollars or whatever it is just takes you away from something that could actually build your business long term. Like you know you get caught up selling these knockoffs and sure a great money in the short term but then you get cease and desist and t hat whole line of business goes away you know what I mean?
Wilson: [00:31:43] Totally.
Danny: [00:31:43] So Wilson, there you shared a lot of really personal stuff with us this time around. I know the audience really appreciates it. What are your action steps for the audience based off of the story t hat you shared today?
Wilson: [00:31:55] You know what go out and if you haven’t already done so, set up your whole business structure like right from the get go. Don’t cheap out right. I mean all the advantages. It’s so much an advantage of setting it up right. Find yourself a bookkeeper. Understand. If you don’t understand like numbers or understand balance statements or financial statements or profit and loss things, go take a course. I myself have taken two courses on this. I did major in business. I know them points of numbers and that’s the reason why I just took two courses and I know how to meet it. But I’m not good at it. So go learn how to read your financial statements. Set up your LLC or INC. So then you’re protected. And yeah these are my actions. The only reason why I came up with this story. I didn’t come up with story but I decided to share the stories because like you said we’ve been asked so many times from people about hey should I hire a bookkeeper. Hey, you know what should I set up an LLC. Should I do this. Should I do that. You know what. This is an episode created just to share with you my personal experience so then it hopefully would tell you about the importance of doing this.
Danny: [00:33:17] Oh Yeah I mean I already totally agreed with you on all these points. But after hearing this story, I’m even more leaning towards in making my book super super tight because I’ve been through some stuff but I definitely am not looking for 120 thousand dollar bill from CRA to showing up on my desk one day. So thanks for sharing that Wilson. That was freaking awesome. A little reminder. The show notes for this episode can be found at ActualizeFreedom.com/13. Any resource that we mentioned, links and notes you can find there so you don’t have to take note this podcast. And also if you enjoyed this episode, go over to iTunes or Stitcher. Leave us a review over there. Subscribe. We got some really cool interviews with guests coming up real soon. later today actually I’m going to be interviewing Adi Gullia who is a multimillion dollar Amazon seller. He’s got a bunch of employees here locally in Vancouver. It’s going to be really interesting to see how he actually managed to build the company so big in only a couple of years. So thanks for joining us guys and we’ll see you right back here on the next episode.
[00:34:23] This podcast is sponsored by Kenji ROI. Obsessively optimized copywriting, product photography, videos and PPC for a highly cohesive feel and high conversion rate. Avoid expensive miscommunication with freelancers who don’t understand Amazon. Kenji ROI’s team has produced over six hundred Amazon listings responsible for multimillions in annual sales for the clients. Clients know they’re covered with Kenji’s guarantees. After work has been delivered, their experts help you resolve any potential issues or concerns to an extreme level. If you’re still not happy, you’ll get a full refund. What kind of crazy guy makes a guarantee like that? Listeners of the Actualize Freedom podcast get a 10 percent discount for life on all Kenji ROI listing creation services but only for the first 50 claims. Type In go.KenjiROI.com/af. Pause this podcast right now and claim your code. Like I said, once 50 are claimed they’re gone forever. So go now to go.KenjiROI.com/af. That’s go.KenjiROI.com/af to get your code now. Thanks so much for listening to this episode of Actualize Freedom with Wilson and Danny online at ActualizeFreedom.com. If you like today’s episode please review and subscribe and we’ll catch him next time.