Topic: Thinking about starting my own computer repair business- need advice

[JAG]

Like the subject suggests, I am thinking about starting my own business,

I have been in and around computer since the Commodore 64 era, and haven't stopped since. I believe I have a firm grasp on everything from hardware, software, networking, etc..

I have tried many different career opportunities only to be pretty disappointed and unhappy, and I really want to try and find something that I enjoy doing, and wouldn't mind doing for the rest of my life, and well, this idea dawned on me. I have been doing computer repairs for people for years, always had positive results, and never once got paid for it. Why not do something that is easy for me, and get a little money while I'm at it.

From my research I have discovered that start up cost is minimal; Business Cards, Website, some business attire, and gasoline for the car. Thats pretty much all I need to go door to door and achieve clients. I want to go for small business clients. Such as Real Estate agencies, Law firms, etc. I believe that more money is possible this route than it would going for residential. However I wouldnt turn away any residential clients. I will also be running the business out of my house.

I have been collaborating a CD together of every known (Good) software- Virus, spyware, malware, bootable, data, everything.

If the client doesn't have internet access for some reason, I have the ability to bring my laptop, and use my cell phone as a mobile network, to help diagnose problems.

I will get insurance for myself and the company, to offset any damages that may occur. Also looking for some contractual type paperwork for clients to sign to hopefully help me out in any legal matter, and help to receive payment, and also the look of legitimacy and professionalism.

From what I understand people that do this for a living 9 times out of 10 arent even certified, however if you go work for someone thats usually the first thing they would want to see. Now I know that if I wanted to achieve a contract from a fairly large company and they were getting quotes from prospective computer repair companys they may choose the guys that were certified over me, but I believe in the long run it always come down to money. And with that I will definitely be able to out bid just about anyone.


I live outside of Nashville Tennessee, and it seems to be a big market around here, so I don't know how much luck I will have getting my foot in the door, since there are so many computer repair companies out there already.

That's all that I can think of at this time.. So for any business owners out there- Do you have any advice, or anything else I need to look into to help legitimize my business and/or help me set myself apart from the rest??

I am also still trying to come up with a good name and catchy slogan.

Thanks for your help and time.

Jonathan

[sangyo soichiro]

My suggestions:

• Try not to go into debt to do this.  It will add a lot more stress when times are slow.
  
• Dress like a professional.
  
• When trying to get your foot in the door, offer to do some work for free (free labor, that is) in exchange for word-of-mouth advertising.
  
• Ask your satisfied customers if you may use them as references.
  
• Work weekends and be on call 24/7.
  
• Maybe do a little website design too.
  
• When possible, get paid at least half the cost up front - especially on big jobs.
  

[JAG]

My suggestions:

• Try not to go into debt to do this.  It will add a lot more stress when times are slow.

I was thinking for right now my only overhead will be Gasoline.

• Dress like a professional.

Clean Shaven and button down collar shirts and slacks, copy..

• When trying to get your foot in the door, offer to do some work for free (free labor, that is) in exchange for word-of-mouth advertising.

That's an excellent idea!

• Ask your satisfied customers if you may use them as references.
• Work weekends and be on call 24/7.

On call all the time is great too.

• Maybe do a little website design too.

I was thinking of when I created the Website, making it an Advertisement for Web Design too..

• When possible, get paid at least half the cost up front - especially on big jobs.

Always gotta get paid not a bad idea.

[/list]

Those are great points. Thanks for the input Soichiro

[333]

First, you should already know that business cards and magnetic signs for your car are as easy as going to Staples or Office Depot and getting the stock, and with Word, crank out your own.

And then, when you settle on a name and a logo(an original, not cut and paste.  copyright laws are costly when violated), you could get collared golf shirts embroidered fairly cheap.  Here where I live, I can get that done at several malls. (I've been to Nashville twice, but when I was at Opryland Mall, my nose was pressed up against the Gibson shop most of the time. I don't remember if there was one of those there.)

And finally, what about getting some certs?  I am not in this field, but I would think that some are available without taking a class, in other words- test only.

[flybox1]

Find out who your competition is and learn how they operate.
Charge similar rates, but be better in everything else....
timeliness, cleanliness, integrity, and all the other customer service aspects.
Be careful on who, and how much work you give away.  
customers might come to expect it down the road.
If you do chose to, cool, but make it known(fliers or on web) that is a 'monthly special' or something.
just so they dont take advantage of ya later on.  

[KeithTurk]

Here are some random thoughts....
  

Go to work doing this for someone else first....

Basically they will define the rules of the road... and provide assistance in developing a business model with which you can write a business plan from...  

I agree on the Money part of this..  DEBT is the scourge of the earth  .... Stay out of it.  

Eat First....  stick with the job you have ... Use it to gain the leverage ( money put back to fund your lifestyle ) until your ready...   But do your own thing at night.... SAVE....

READ everything you can about being in business...

Matter of fact read these two books....  

"Cash Flow Quadrant"  by Rich Kyosaki  ( great book on money )
"Good to Great"  by  Jim Collins  ( Great book on building and growing a business )


Understand a business is about making Money.... so if you start out as a computer guy and end up cleaning copiers cause that's where the money is.... Be that flexible.... it's important to watch the waves...

I really like the Web design comment as well.... My Wife and Son are both looking for web designers right now...

K

[sangyo soichiro]

Look up someone that is doing exactly what you want to do, except maybe a few counties away (so that you guys are not direct competition).  Call them up and tell them you are wanting to do what they do, and would like to know if you could take them to lunch and pick their brains.  (In the initial phone conversation, make sure you point out that you are too far away to be direct competition.)  Hopefully, someone will take you up on the offer and you might learn some valuable tips for the small price of a meal.  Make sure you have good questions to ask - especially about the business side of the job.

[KeithTurk]

Look up someone that is doing exactly what you want to do, except maybe a few counties away (so that you guys are not direct competition).  Call them up and tell them you are wanting to do what they do, and would like to know if you could take them to lunch and pick their brains.  (In the initial phone conversation, make sure you point out that you are too far away to be direct competition.)  Hopefully, someone will take you up on the offer and you might learn some valuable tips for the small price of a meal.  Make sure you have good questions to ask - especially about the business side of the job.

Great advice.... Most people who are "successful" want to share that with others...

I really like using your last name in a title to a company... it's Your name on the line then....  Folks understand that!

[JAG]

This is all Very Good advice..

For the past week I have been rolling this over in my head. Doing Research. Calling competitors, pretending I'm a potential client. I even called Best Buy's Geek Squad..

It's all very intimidating. I know someone's first thought with going into this venture shouldn't be "Failure", but it looks like it is pretty dang competitive.

I worked for a guy almost ten years ago, doing this same thing, who ran it out of his basement. He had incredible skills and good customer sense.
http://clutecomputers.com/index.php

Recently I met a guy doing the same thing, and I offered to work for him. His response was that he was slow at this current juncture, and maybe later on down the road, and it got my wheels spinning. Why work for someone else, when he claims to make on average 60K a year, when he is only going to pay me $15/hr.??.. So why not do it myself?

I can get the ball rolling, I can get all necessary items to get the business going with little cost. It's just the initial going out and selling the service that worries me. I gotta come up with a plan to make clients/future customers feel completely at ease with me and my services.

It would be nice to go work for someone maybe part time doing this sort of work just to get my feet wet again, (dealing with customers,  onsite repairs, etc etc..) But I think I should just keep moving and not wait around.

[Duke McDukiedook]

Get licenced in your city and get bonded- insurance.

And have or find a good business accountant to help you with write-offs, end of business year taxes and other tax questions you will surely have down the line.
 

[JAG]

Get licenced in your city and get bonded- insurance.

And have or find a good business accountant to help you with write-offs, end of business year taxes and other tax questions you will surely have down the line.
 

Im def getting licensed and insured. Its very inexpensive..  Taxes was another concern I need to address. When billing customers do I need to add the tax to the hourly rate, or work the tax in the hourly rate. For instance tell them 70/hr, 1 hour minimum. Work 2 hours for $140 bucks, and work out the tax later during tax time, or $140 PLUS tax on the bill.. All those things are new to me for sure..

Good advice guys
Thank you.

[MrGrey]

Keep in mind that taxes suck. As a day job I am a Network/Systems Administrator. I have done quite a bit of sidework and typically charge $150-200/hr. This might sound extreme, but take a look at what the taxes are going to run you when you start to figure out your hourly rate and think about what you time is really worth. Anymore I'm happy to trade work for work since it's easier than paying the man.

[JAG]

I have been researching everyone's (locally) hourly rate and I have seen hourly rates from $89 and up to the $200 mark.

My mark was going to be something like $60-$70/hr.. I was going to charge like a simple diagnostic fee to troubleshoot the problem. If the problem cannot be fixed simply not charge them. If it can, I'll probably, somehow, just add it into the hourly rate and start working on the problem at hand..

When doing this in the past all the way to present times, 90% of problems and issues for clients/customer complaints is slow start up and internet browsing, which is a breeze to fix.

With that stated I would try and implement a monthly maintenance term with said client, to come once a month and do the usual clean up and spyware/malware removal.. If I get enough of these that should get me well paid for the month, and use the rest of the month for building a bigger client base (going door to door) doing hardware repairs, networking issues, setting up computers, websites, etc..

[Duke McDukiedook]

Look into a barter system to get into also, services for goods, vice versa.

I think you can find info on bartering systems online somewhere, keep the man from turning your pockets inside out.

[zerokreativity]

My immediate advice would be to not get into this kind of business.

My $0.02:

There are two kinds of computer owners; those who know computers well and will fix their own problems and those who own a computer but have no idea how it works.  Presumably your target audience would be the latter group.  Nobody (generalizing) keeps a computer for very long.  Once it breaks they go out and replace it (entire computers can be had for a few hundred dollars these days) or call their friend/cousin/boyfriend/whomever to come over and fix it.  Given the option of paying a few hundred dollars to have a computer repaired of spending just a bit more for a completely new computer most will opt for the new computer.

[sangyo soichiro]

My immediate advice would be to not get into this kind of business.

My $0.02:

There are two kinds of computer owners; those who know computers well and will fix their own problems and those who own a computer but have no idea how it works.  Presumably your target audience would be the latter group.  Nobody (generalizing) keeps a computer for very long.  Once it breaks they go out and replace it (entire computers can be had for a few hundred dollars these days) or call their friend/cousin/boyfriend/whomever to come over and fix it.  Given the option of paying a few hundred dollars to have a computer repaired of spending just a bit more for a completely new computer most will opt for the new computer.

There might always be a need for a guy that can recover all the important data though.  Imagine if your computer took a crap and you lost all your family photos.  People might pay big bucks for a guy that can get their stuff back.

[KeithTurk]

There will always be nay sayers.... ( zerokreativity ,no offense intended as your advice might well be on the mark)

The biggest thing you have to have is a Passion for what your doing.... I mean you have to truly Love it totally.... not a little bit... but a ton.... if you do and folks around you get that....  the world will beat a path to your door....

One of the harder parts of a business is a quality plan that establishes both entry and exit strategy's ...   You need to know those two things exactly and not be backing into something your not sure of....   or not getting out of something that is failing....   you have to drive the train....

K

[Duke McDukiedook]

And you have small businesses that have a need to have the computers they have and machines running properly.
They are not big enough to have full or part time IT people in their staff, that is where you would come in.

Small businesses are more what you probably want to work into, not really the private individual. More money and business there.


 

[cookindaddy]

My 0.02 worth: Check out the computer services at the local Staples/Business Depot as possible competitors. In the last few years, this office supplies retailer has been advertising (here in Canada anyway) their computer repair/virus cleaning/data recovery services for fixed prices which I've never quite understood since it take so long to fix some of those problems myself, but then, maybe I am not a "pro".

[tramp]

sit down and look at your finances
with the economy as it is today i would be sure you could still survive even if you business goes down
if not work for someone else in that business until things get better
remember the costumer is always right

[JAG]

My immediate advice would be to not get into this kind of business.

My $0.02:

There are two kinds of computer owners; those who know computers well and will fix their own problems and those who own a computer but have no idea how it works.  Presumably your target audience would be the latter group.  Nobody (generalizing) keeps a computer for very long.  Once it breaks they go out and replace it (entire computers can be had for a few hundred dollars these days) or call their friend/cousin/boyfriend/whomever to come over and fix it.  Given the option of paying a few hundred dollars to have a computer repaired of spending just a bit more for a completely new computer most will opt for the new computer.

I understand where you are coming from, but small business owners usually cant just fork out the cash to buy computers every time one has a problem.. Hence the exact need for this business. There wouldn't be commercials for products like MyCleanPC.com if there wasn't. (Which that company is a total hack anyways) There wouldn't be the GeekSquad or anything like that if there wasnt a market for it. Thanks for your opinion though.

There will always be nay sayers.... ( zerokreativity ,no offense intended as your advice might well be on the mark)

The biggest thing you have to have is a Passion for what your doing.... I mean you have to truly Love it totally.... not a little bit... but a ton.... if you do and folks around you get that....  the world will beat a path to your door....

One of the harder parts of a business is a quality plan that establishes both entry and exit strategy's ...   You need to know those two things exactly and not be backing into something your not sure of....   or not getting out of something that is failing....   you have to drive the train....

K

I definitely have some sort of passion for it, or I wouldn't be so willing to do it. I enjoy the thought of dissecting problems and fixing things. Research is my favorite past time! As well as computers.

But what id like for you to elaborate on is this entrance/exit strategy... Do you mean how you open and close the deals? Or if I am sitting there for 3 hours and can't seem to fix the computer I need to figure out a way to bring it back to my home office and work on it from there?

My 0.02 worth: Check out the computer services at the local Staples/Business Depot as possible competitors. In the last few years, this office supplies retailer has been advertising (here in Canada anyway) their computer repair/virus cleaning/data recovery services for fixed prices which I've never quite understood since it take so long to fix some of those problems myself, but then, maybe I am not a "pro".

Ive been checking out all commercial competitors, I wanna try and dig more deeply into the little guys like me over the next few days..

sit down and look at your finances
with the economy as it is today i would be sure you could still survive even if you business goes down
if not work for someone else in that business until things get better
remember the costumer is always right

I have $600 dollars to invest in this venture, and I don't plan to spend even half that to get up and running.. I plan on going at this full time until I can see progress or nothing at all.. It's going to probably take 3-5 years before I start seeing any real profit (I think) from this business as far as building clients goes.. It will definitely not be a fly by night, make millions in a matter of months plan..

I just wish I had more positive influences in the matter. My drinking buddies think its an excellent idea ( business owners themselves ), my folks on the other hand have never been directly influential in anything I do.. And I tend to have a bit of a self defeating attitude because of it. I'm definitely going to shake it though. I need this/want this.. I believe I have some good ideas to set myself apart from the masses, and I believe this is possible to make something of myself..

Thanks for all the input guys..

[KeithTurk]

Entry and exit strategy's are about what actual plans you have going into this business,  Then , what are your indicators  going to be on when to Get out of the same business....  


Entry strategy should include a well developed plan which includes a fairly well designed business model and or structure...  Often times this isn't that fancy.... your doing XXX and its your gig... you do it well... but as a goal oriented achiever you decide you want to formalize the effort and call it a business....   Fair enough... you sit down and say ... Okay here's my goals that I want this business to achieve for me and my life...  You have to define HOW your going to make money... who your going to target and how your going to get from Zero to there....

An Exit strategy is having clear markers and definitions of when to quit and go back to work for the Man   OR?....  Basically it's like saying.... Okay I'm going to live on Fish heads and rice for 3 months.... after that if I don't have $200 in billable hours in a weeks time....  then I'm going back to work asking if the customer wants Fries with that Cheeseburger.... the other side of this is when I have 15 employee's I'm going to sell my business to XXX for XXXX dollars and I'm going to go Float on a Boat for the rest of my days....

One of my favorite things to say to folks in tough situations ...  
" I can always go out there to the road out front.... and Pick Left or right as my new direction  and then just walk away "....   Ultimately your exit strategys define these points.

And best of all.... if 199 out of 200 business's fail.. that also means that one in 200 succeed....   up side is you only have 198 more times if this one doesn't work....

( the better you plan for success the more likely it's outcome )

K

[Jinxracing]

I'm a one-man business (graphic design) and have been staying afloat for the past few years. My advice would be:

• Get good-quality business cards. If you can't afford to pay a graphic designer, find a family member or friend who has decent taste to do it for you. Print them on heavy, matte paper stock. Nothing says "fly by night" like a cheap, thin, glossy business card.
• Count on 1 out of 20 clients screwing you out of the money they owe you. It makes it easier to take when someone does refuse to pay. To help keep the damage to a minimum, I invoice at the end of the first job, or after the first four hours of work. If they have a hard time paying the small invoices, they're not likely to pay the big ones.
• Be a little more cocky than you think you should be and charge a little more money than you think you should.
• Try marketing yourself as something a little different. Be memorable. Weird briefcase, funny hat, whatever. It's competitive out there and a little eccentricity is expected from small business owners, especially computer guys...it adds to the mystique. People love to brag about what a weirdo genius their "guy" is.
• Never say "no", even if you're not sure you can fix it. Either you'll figure it out or pay someone else to show you how.
• Once you're irreplaceable, they won't even think about calling anyone else.
• Be careful who you take advice from. None of us really know what we're talking about.  
• Just start doing it and worry about the planning and details later. You'll figure it out as you go.

[JAG]

I've read over all these messages Atleast 5 times now, digesting it all, taking it all in..

I love the entrance/exit philosophy. I will definitely keep that in mind..

I wonder how I can wear a funky bow tie and still seem legitimate and honest. But
 its an incredible idea. It is competitive out there.

Very good ideas Jinx.

I love all the help and support guys. I'm going to continue to post my trials and tribulations here like an open forum bike err business build. Wish me luck guys, even though I don't believe in luck. Wish we umm prosperity. Haha.

[sangyo soichiro]

• Get good-quality business cards. ... Nothing says "fly by night" like a cheap, thin, glossy business card.

+1

In fact, it's just human nature to judge people by what you see (especially when you don't know that person).  People will pay attention to the way you dress, talk, write, the car you drive (doesn't have to be a Jag, but keep it clean), etc.