Startup Expenses — Am I missing anything?
Mar 02, 2017
By
Phil Hobrla
I'm finally starting up my own elearning/IDT business and was wondering if anything is 'missing' from my list of expected startup and operations expenses:
- Articulate Storyline 2;
- 3-year ATD membership;
- VideoScribe [whiteboard animation software];
- SquareSpace [website];
- Canon Rebel T6 DSLR with starter kit;
- Buffer [social media scheduling app];
- Adobe Captivate 9;
- Google Apps [for 1];
- Business License;
- Business checking account;
- Blue Yeti Pro Voiceover microphone w/ Studio software, Pop filter, and Radius II stabilizer addons;
- Audio-Technica ATH-M50x [studio earphones];
- Camtasia 9 [Snagit included];
- Logo;
- Office 365 University;
- Rode VMGO Camera Microphone [for DSLR];
- Google Domain for 8 years;
- RODE PSA1 Microphone Boom;
- Pelican 1500 Hard Body Case [for DLSR];
- STUDIOSAFE Microphone Carrying Case; and a
- Slappa Full Sized HardBody PRO Headphone Case.
11 Replies
Matthew, thank you for responding!
I'm actually part of Virginia's Individual Development Account program, where I get an 8:1 match, so I'm only paying $500 for all of this. The operations cost after 2017 is about $100/month. I'm also part of my town's local business classes/competition, "The Gauntlet," and so I'm getting some pretty serious business plan coaching, along with more gig opportunities than I would have expected (3!). :-)
How often does Storyline release a new major version? It's about every 4 years, correct?
Can I get away with only using Storyline/Captivate/Camtasia? Lectora is frightfully expensive and a lot of Adobe's eLearning suite seems made redundant by Storyline.
Again, thanks!
I don't have all that media equipment personally, but I would probably go ahead and buy it given your situation. I have an old version of the Adobe suite, which is sufficient for my PDF and Photoshop needs, plus a current subscription to Captivate.
A few other considerations:
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An LLC may be sufficient for your own purposes, but eventually you'll have to get insurance. I've had multiple clients over the years require I had it. If none of your current clients require it and you don't anticipate getting other new clients during this period, maybe you can skip it.
If agree in that liability insurance is a question of "when," and not "if."
I would agree with Christy about liability insurance, I have both Public and Professional (with Hiscox. Really important not just if a client requests, but gives piece of mind.
Otherwise you have lot of kit on your list but if you can get it do. I think you are missing a development Machine, laptop for client visits and tablets/phones for testing
I did end up getting a better quote from Hiscox but my dad is pretty adamant about my not needing liability insurance at this stage—I'll hold him to that. I noticed that the Hiscox quote form had some pretty good suggestions for what types of legal formwork I should be using, so I can have my dad modify his boilerplate for my use and make sure my project sign off sheet has my work being accepted "As is."
I have an Amazon Fire tablet and a Galaxy S5. Probably won't be getting an iPad just now as I can use an emulator.
My PC is a Dell Inspirion 13 2-in-1 with an i5 processor.
I don't know anyone who has actually had to use their liability insurance as an elearning freelancer (although maybe people are and just aren't talking about it). It's not that you'll need it. The LLC plus separating business and personal finances with separate checking accounts does give you a fair amount of protection.
However, having insurance shows companies you're a serious business, not just someone who's playing around with software. It also gives you more opportunities. Some companies won't work with you without proof of insurance.
If you're not getting it now, at least keep that expense in mind when you're bidding projects in the future. The original quote you got from Hiscox sounds right to me; I actually paid over twice that for a few years with another provider.
Good luck on the new venture!
You may want to think about any marketing and business development related costs such as business cards, ad posting, attending networking events, travel costs to visit clients, etc.
Also some folks will tell you to include the cost for your own time starting up. There is an opportunity cost for the time you spend on the business that you could spend elsewhere on a second job for example. It's up to you but if you aren't at least tracking hours even at this stage then it's going to be hard to calculate true ROI.
Finally, more of the gear type stuff I think you were asking about might eventually include some studio equipment such as porta-booth, green screen, lighting, etc and also access to media libraries for images, sound clips, and videos.
As others have said, you don't necessarily need all of these things right away to get started, but if you are making a comprehensive plan than they are worth keeping on the radar at least.
Hope this helps and good luck!
A few more things but, most are mentioned in the earlier comments.
I cover a few more items here >> http://bit.ly/2naFroK that are both free and/or subscription-based if you're interested.
Also, don't forget to think about your marketing as someone mentioned earlier and what you should tracking for your business (Revenue, Expenses, Cash Flow), your short-term/long-term goals and core values. All of this plays into building a solid foundation for your new business!
Best wishes for a successful launch.
yes I read the article above in which you mentioned the issue that you are facing I think yes you are missing something because I was also faced the similar issue and in the end I got that I was doing it wrongly like you can see here for more detailed guidance.
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