Originally Posted by aussie_dave_:
“However whats laughable is that you state how Susan Ma's business could branch out ...... well hold on, we are dealing with the hear and now. How many staff does Susan have working for her? None. In other words she is in EXACTLY the same boat as me as a one man band.”
Firstly, I'm not sure where you get the idea that Susan's company is a one woman band. She speaks of working with others,
Irrespective of whether or not they are actually employees it's quite clear that she has had to do an enormous amount to set up her business.
You, on the other hand have had to gain the expertise that is necessary to make you employable as a contractor. That may even have taken
more time and experience than Susan took to start her business but the things are not equivalent from the perspective of 'running a business'.
Your business is merely a convenience for the purposes of taxation. Hers is a fully functioning development and sales organisation.
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“I could hire other people, take on more contracts so I have the exact possibility as Susan. However at this point in time, both myself and Susan are in the same boat.”
But then you would be doing something quite different from what you are doing now. Susan would be doing the same thing only more of it.
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“So lets not talk hypotheticals, because if we do, then hypothetically I could take on 100 other IT workers, farm them out to different contracts and take my cut”
Again, you could but then you would be in a completely different line of business to that you are now. It would be like a GP setting up and running a locum service. Whereas if Susan takes on more staff she is expanding
the exact same business.
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“Susan's business struggles in a highly competitive market. So why is that scenario not allowed, yet we all just assume Susan will make a go of a business that requires millions in marketing?”
Susan has started off down a road that could, by simple expansion, become a million pound business.
If you wanted to become a million pound business you would have to completely change tack and stop being an IT consultant and start being an entrepreneur, salesman and manager.