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    estieg
    Former Employee

    GoDaddy (GoAcademy) looking for your feedback and suggestions

    Hi all,

     

    We are currently working on an education pilot program called GoAcademy and we’d love to have your feedback. We know that entrepreneurs come to GoDaddy with ideas of starting a side business or full time venture. In addition to the community and mentoring programs we offer, we want to provide educational videos and inspiration on how to start and run an online venture.

     

    We are looking for your feedback and suggestions on these three particular lesson plans that are part of a pilot course called “Are You Ready to Make Your Own Way.” These three lessons are about:

    ·        Vetting Your Idea

    ·        Start Up Costs and Budgeting

    ·        Finding Funding/Financial Considerations

     

    Our instructional designer has provided bulleted lists of things that we want to include in these videos, but would appreciate any suggestions you have to improve them.  Don’t feel as if you need to comment on each of these. Just pick the ones that you feel comfortable reviewing.

     

    1)      Does this lesson have the components that you would expect for this topic?

    2)      Are we missing important ideas or considerations in this lesson?

    3)      Are there things that you would recommend we change or omit from this lesson?

     

    #1:

    Title: Identifying Startup Costs | GoDaddy

    Description: Identifying the two types start up costs likely when launching new venture; provide advice on how to get to number crunching activity, and an estimated total investment.

    Sources:
    https://www.godaddy.com/garage/what-you-need-to-know-about-deducting-startup-costs/

    https://www.godaddy.com/garage/how-to-start-a-business-the-checklist/

    https://www.mbda.gov/news/blog/2011/11/how-estimate-cost-starting-business-scratch

    https://www.sba.gov/blogs/how-estimate-cost-starting-business-scratch

    https://www.irs.gov/businesses/small-businesses-self-employed/recommended-reading-for-small-business...

    NOTE: Most content is from: Caron Beesley is a small business owner, a writer, and marketing communications consultant. Caron works with the SBA.gov team to promote essential government resources that help entrepreneurs and small business owners start-up, grow and succeed.

    Primary Talking Points

    • Launching a small business costs an estimated $3,000 - $30,000 RESOURCE:gov
    • Can vary dramatically though, and may be even less; e.g., consider difference between online sole proprietorship ($) vs. terrestrial (actual building) franchise ($$$)
    • No one can tell you exactly, always the unexpected; instead, video will define the two types of startup most ventures have and share a process that will help you estimate yours.
    • There are two types of start up costs: Business Expenses and Capital Expenditures
    1. Business Expenses are:
    • Costs you incur when preparing to launch your venture. Examples: filing fees, professional services’ fees, say for an accountant or an attorney, advertising, and marketing collateral.
    • Often, BUT NOT ALWAYS, tax deductible
    • Subject to rules for being tax deductible:
      • You can deduct up to $5,000 first year of doing business
      • After that $5k, or beyond first year of biz, MIGHT still be deductible, but they are subject to AMORITIZATION
      • We’re not tax professionals, so consult a tax professional to better understand the concept of AMORITIZATION and how it might be applied to your startup costs.
    1. Capital Expenditures are:
    • Typically one-time costs during start-up phase. Examples: purchasing assets, making security deposits, buying property.
    • In general DO NOT QUALIFY AS TAX DEDUCTIONS, but CAN BE WRITTEN OFF using DEPRECIATION.
    • We’re not tax professionals, so consult a tax professional to better understand the concept of DEPRECIATION and how it might be applied to your startup costs.
    • Reiterate once more: We are not tax professionals; consult with a tax professional to understand how these might apply to your personal situation
    • To read more about these concepts, visit SBA’s Small Business Expenses and Tax Deduction Guide AND visit a tax professional…
    • Now you have two types of Startup Costs, create two lists:
      1. List of all the business expenses you think you’ll incur in the next year
      2. List of all capital expenditures you think you’ll in incur in the next year
    • For each list, identify the item as “ESSENTIAL” or “OPTIONAL”
    • Your business, your call; rule of thumb: if it doesn’t directly influence the ability to operate or generate income…. Probably OPTIONAL.
    • For each item you’ve identified as ‘ESSENTIAL’, assign a cost.
    • When estimating:
      1. Don’t guess, do research
      2. Be realistic, and err on the conservative side
      3. Tap into your resources: local SBDC, Women, Minority Owned or Veteran’s business centers, or SCORE
      4. Talk to current business owners in your industry; VISIT GODADDY’S GOGETTER community and ask REAL people about their startup costs
    • BOTTOM LINE: Some sort of financial investment will be made
    • Don’t be discouraged, estimating startup costs is a critical step and just one more way you making your dream a reality.

     

     

    If I answered your question, please mark it as the solution or give it a "Kudo"
    3 REPLIES 3
    Highlighted
    estieg
    Former Employee

    Re: GoDaddy (GoAcademy) looking for your feedback and suggestions

    #2:

     

    Title: Vet your online venture | GoDaddy

    Description: Using their own idea or walking another agent (or anyone) through their idea, Q&A that evaluates if their idea has chops, or needs some work.  

    Sources:
    https://www.godaddy.com/garage/5-tools-for-product-market-testing-on-a-budget/

    Primary Talking Points

    • You think it’s great, but is it. Prove it – to yourself and others!
    • See if the concept or idea already exists? Google it. Seriously.
      • Search on a term or phrase that describes your product or service
      • Search on a term or phrase that describes the problem your product or service will solve
    • If it already exists
      • Learn all you can about competitors
      • Start thinking about all the ways you’ll do it better, or different.
    • Articulating your idea; type it up or write it out, so you can easily share with others
      • Describe the problem/need your product or service is going to address
      • Identify, as specifically as possible, who will use your product or service
      • Describe how your product or service will solve the identified problem/need for your target audience
    • Take it to the people – share your idea with friends and family
      • Ask specific questions about your business idea:
        • Problem: Is the problem statement clear/understandable? Do they believe this is a problem/need that should be addressed? If not, explain why not or provide examples of how problem/need has already been addressed.
        • Who: (target audience) Is it accurate? Ask if they can suggest other folks who might be interested in your product/service? Be sure they provide an explanation of why.
        • Solution: Is the solution statement clear/understandable? Do they believe the solution you describe is a good one? How much (if anything) would they be willing to pay for your product/service?
      • Review responses to:
        • Assess viability – this is your call, but keep it real
        • At a minimum, identify where your product/service story needs strengthening
      • BONUS: Use this work as the Executive Summary for your business plan.
      • Call to Action: If it’s not a clear winner, don’t get discouraged. Refine and revisit.

     

     

    If I answered your question, please mark it as the solution or give it a "Kudo"
    estieg
    Former Employee

    Re: GoDaddy (GoAcademy) looking for your feedback and suggestions

    #3:

     

    Title: Find Funding for Your Venture| GoDaddy

    Description: Discusses a bunch of places you can find funding to launch a biz in the first year.

    Sources:
    https://www.godaddy.com/garage/5-questions-entrepreneurs-need-to-ask-when-searching-for-small-busine...

    https://www.godaddy.com/garage/small-business-need-funding/

    https://www.godaddy.com/garage/7-fundraising-tips-for-female-entrepreneurs-sourcing-capital/

    https://www.godaddy.com/garage/3-types-of-short-term-loans-that-can-help-boost-your-business/

    https://www.godaddy.com/garage/small-business-funding-options-angel-investing-equity-fundraising-cro...

    https://www.godaddy.com/garage/startup-funding-look-beyond-traditional-financing-options/

     

    Primary Talking Points

    Most folks will need some kind of financial assistance to get going, this video will provide ideas for where you might funding for a startup in first year.

    • Traditional resources; most folks think of these…
      • Personal savings or leveraging equity from currently owned assets
        • Not common
      • Government Grants or Small Business Loans –
        • Government grants are typically reserved for NON-PROFITS, CANNOT be used for day-to-day expenses or LAUNCHING a business
        • Still it’s FREE MONEY so look anyways and remember to look again when you’re looking for growth $$, visit GRANTS.gov
        • BOTH Grants AND Small business loans require folks be in biz for at least 1-2 years, and some longer; so both are only actually good for growing a small biz, but NOT LAUNCHING
        • These folks are looking for businesses with a track record to assess risk
      • Alternative ideas for funding
        • Ask for donations
          • Set up a separate bank account, pitch your plea for dollars to family, friends, anyone
          • Interest free funding!
          • Remember to tell them their donation is not tax-deductible
        • Personal loan from family or friend
          • Create a written legal agreement documenting how much you need, what you need it for, and how you’ll repay it.
          • If the loan isn't documented, you and/or your borrower may find yourself with no legal recourse.
          • Consult with an accountant to learn the best way to structure a personal loan
        • Equity Fundraising
          • Sell shares or ownership in your company
          • Even though private, if selling as shares, you are subject to SEC regulations and filing requirements - investors must be accredited
            • Currently, persons whose income is more than $200,000 (or $300,000 with a spouse) or has a net worth more than $1 million (excluding the value of the person’s primary residence.
          • Consult with an attorney to make sure you’re following state and federal regulations
        • Personal loan from a bank
          • Can borrow anywhere between $2,000 and $35,000
          • Need to have a good credit score
          • Repay within three to five years with fixed monthly payments
          • Come with closing costs and interest on the original principal amount
        • Crowdfunding
          • Sites like Kickstarter and Indiegogo allow you to launch a campaign explaining what you need the money for
          • Still interest free like donations, but now you’re putting your idea in front of a larger audience
          • Talk about how your business idea is unique
          • The more people who see your campaign the better it will be for you
          • Consider creating rewards for backers
          • Be sure to interact with your supporters regularly to keep them motivated
        • Microlenders
          • Small loans that are issued by a single individual or aggregated across a number of individuals who each contribute a portion of the total amount, in lieu of a bank or credit union
          • Originally for humanitarian purposes, think Kiva, to help the poor in Third World countries start small businesses
          • lend to individuals in developed countries who may have bad credit and cannot obtain credit from banks, or who seek to borrow small amounts of money that are below the amounts required by a bank.
          • Check out companies like Lending Club and Prosper that facilitate peer-to-peer microlending for these purposes
          • The above content should not be construed as legal or tax advice. Always consult an attorney or tax professional regarding your specific legal or tax situation
    If I answered your question, please mark it as the solution or give it a "Kudo"
    Rockstar I Rockstar I
    Rockstar I

    Re: GoDaddy (GoAcademy) looking for your feedback and suggestions

    Hi Eric, 

     

    Back out on this side of the community today!  I'll review all three.  On the funding,  may I suggest the Dave Ramsey approach as well.  I'll grab a link to share, but the idea of not going into debt first is a key component for some.  

     

    Talk to you soon,

    James

    Not Just Pretty Sites, Pretty Doggone Smart Sites