2003: Starting with Foreign Trade

Chapter 33 Company Daily
Li Yanning entered society at the age of 18 and developed a certain ability to judge people within six years.

The smiling Mr. Tan in front of me looks more mature than Mr. Zhang no matter how you look at it.

In terms of ability, Boss Tan is stronger; otherwise, it wouldn't be Boss Zhang guarding the rear while Boss Tan goes on business trips to take orders.

"Sister Li, you can continue working. Don't worry about us."

After saying this, Tan Jincheng led Zhang Xupeng into the inner office room. Zhang Xupeng had already introduced him to Jinyi Trading's first employee last night.

Although we are from northern Anhui and have completely different eating styles, we are still fellow townsmen, which is one of the reasons why Zhang Xupeng hired her.

When people first enter society and go to an unfamiliar city, they always have a special feeling for fellow villagers, as if there is a sense of kinship.

Tan Jincheng went through the same thing. In his previous life, he had joined some hometown groups and attended hometown gatherings, but now he naturally had no interest in them.

The job definition of a foreign trade merchandiser is that, in import and export business, after the trade contract is signed, the foreign trade personnel who track and operate some or all of the processes such as goods processing, shipment, insurance, inspection, customs declaration, and foreign exchange settlement based on the contract and relevant documents, and assist in fulfilling the trade contract.

These procedures can be separate or completed independently by a single sales clerk.

Large companies naturally separate tasks, but small companies like Jinpeng Trading naturally have to do everything, and employees are responsible for everything they can do.

If the employees don't know how, the boss will take responsibility.

Small companies shouldn't expect much from their employees; everything depends on the boss. If you manage to find a reasonably reliable employee, you're lucky.

However, these days, employees are still relatively pure; they can accept PUA tactics and empty promises, and they work quite hard.

What stands out most is that employees these days have an unwavering belief that they can learn something at work, and they'll be willing to do so even if the salary is low, as long as they're told they can learn something.

In the small office cubicle, besides a filing cabinet, there were only two sets of computer desks and chairs, each with a computer on it, clearly prepared by Zhang Xupeng for himself and others.

Have you paid us both?

As soon as he entered, Tan Jincheng asked Zhang Xupeng.

"What? We need to be paid salaries? Aren't we the bosses?" Zhang Xupeng asked, bewildered.

Sure enough, this guy wasn't prepared: "If we don't pay salaries, what will we spend our money on?"

"Isn't all the company's money ours? After we discussed it, we can spend it however we want, right?"

“Go and study company law properly. Who told you that we two can decide the money? For example, we can’t spend the 17 yuan that the company has now.”

"Isn't there dividend payout to shareholders?"

"Shareholder dividends can't come all the time, at most twice a year. Don't you spend money normally?"

"That's true. So what should we do? Pay ourselves a salary too?"

"Of course, you need to coordinate with the finance department to ensure that not only are our salaries paid, but social security contributions are also made properly. These are essential."

"Oh, so how much should I drive?"

Tan Jincheng thought for a while. At that time, the threshold for personal income tax was relatively low. He couldn't remember the exact amount, but the standard of an annual income of 50 should be similar to that of later generations.

There are many ways for a boss to legally extract profits from the company, such as paying himself a high salary or selling his car to the company.

In later generations, there were also some bosses who not only paid themselves high salaries, but also fired themselves once a year and received a sum of money in the form of severance pay.

Severance pay may be tax-exempt if it is less than three times the local average wage. However, if this is not recognized by the tax authorities, or if it is considered legal in form but illegal in substance, it could even be considered malicious tax evasion.

However, there is no problem with paying yourself a salary, as long as it is not excessively extravagant. Legal tax avoidance is also a form of recognition.

“Let’s both of us earn 2.9 yuan a month. If we get a lot of orders and the business is very profitable, we’ll give ourselves an extra 14 yuan as a year-end bonus. That way, our total annual income will be kept under 50 yuan.”

"Opening so many? And what's the explanation for the 50?"

"There are two aspects. First, we have money to spend. Second, it's a way to legally avoid taxes. You can talk to the finance department about it, and they will understand."

"Okay, I didn't realize there were so many tricks to starting a company. But what if the company runs out of money and can't pay salaries?"

"Who says wages have to be paid monthly? Can't they be paid quarterly or annually? Are you stupid?"

"Hehe, so that means I'll get 2.9 next month? It feels like I've earned so much without doing anything."

"Yes, we'll get the money next month, but we won't be giving out bonuses this year. We'll just get two months' salary to go home for the Chinese New Year."

"That's good. We'll get 50,000 to 60,000 by the New Year, which is already pretty good. We can talk about dividends next year."

Zhang Xupeng naturally knew that the company was currently in a development phase, and it was not the right time to distribute dividends. Xiao Tan's way of paying him a salary was quite good.

It wouldn't affect the company's expansion, could solve the couple's expenses, and could also, as he said, legally avoid taxes.

Looks like I'll have to learn some company law when I have time.

"Wait a minute, when did he learn about this stuff?"

Tan Jincheng ignored him at this moment, and instead picked up the backpack he had brought over that morning and began to organize the business cards and samples he had brought back from the Canton Fair.

With a merchandiser, the work plan can be adjusted, and some tasks can be delegated.

"Has Lao Zhang finished processing all those thousands of pieces of clothing?"

While tidying up, Tan Jincheng asked Zhang Xupeng a question.

"It's done, and I've paid him the final payment. I'm currently processing the next two batches of orders."

"Old Zhang's production capacity is a bit tight. If you have time, you can also go and take a look at some other factories in Xiaxi Village. Now you don't have to worry about being kicked out."

“We need to keep an eye on the factory. If we get a lot of orders in the future and Old Zhang blocks them, we're doomed,” Zhang Xupeng nodded in agreement.

It's not surprising that Zhang Xupeng was aware of this problem, given that the cooperation between the two parties was far from reaching a level of trust.

What if Zhang Haiping demands a price increase one day because of a large order?
Finding a contract manufacturer at the last minute won't be so easy.

The best approach is to invest in a factory, which eliminates the need to manage it while ensuring the integrity of the supply chain.

Many manufacturers in later generations did the same thing.

Unfortunately, we don't have that capability right now, so we can only dream about it.

"Oh, by the way; is the Taobao shop I asked you to open before I went to Guangzhou ready?"

(End of this chapter)