Professional Documents
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Opening a computer shop is a challenging venture. Big-box retailers and thousands of online retailers
have entered the computer trade, so competition is fierce. A computer shop can be lucrative if you
find the right location, plan your financing and marketing carefully, and focus the business on key,
local niches where you can add value.
Difficulty: Challenging
Instructions
things you'll need:
Articles of incorporation
Leased or owned store space
Hardware and software training (PC and Mac)
Startup capital
Inventory (computers and accessories)
1. Preparing for Success
o Define your value proposition. Every major retailer and online storefront
sells computers and accessories, so it is important that you determine what will be
unique about your business. You may offer training with your computer sales or in-
home service. Service is likely going to be part of your value proposition, because it
is the one area where larger retailers are not well-positioned to compete.
o Secure financing. You may be able to finance your business through personal funds,
credit cards, loans from friends or relatives, or traditional lending. The Small
Business Administration offers loans designed to help entrepreneurs start new
businesses. You'll want to show any potential investor or lendor a detailed business
plan, particularly for a market as competitive as computer sales and service. Be sure
you have enough capital to survive those slow, early months.
o Lease or buy a building. Good visibility on a busy street is ideal, but these locations
are often costly. If you plan to service computers for local businesses, as opposed to
the retail market, a high-traffic location may be less important. If you aim to service
the retail market, look for places, such as a strip mall, that's already be attracting
your core, computer-buying demographic (middle income and higher).
o Find vendors. You'll want to carry major PC brands and Macintosh models, and any
related accessories and peripheral devices (printers, scanners, etc.). Look for
manufacturers and distributors who may be able to provide you with marketing and
technical support. The more successful you are, the more money they make, too.
Because service will be important, look for products that carry strong warranties. If
you sell a computer that stops working in a few months, it will reflect on you as much
as the manufacturer.
o Plan your marketing. How will you spread the word about your business? Decide
where you will advertise and whether there are certain noncompeting local
businesses you can partner with. For example, you could establish a deal with a local
restaurant where patrons receive a coupon for 10 percent off a purchase at your
store. Such deals benefit both partners. It is important to allocate enough marketing
resources for your launch, and to build a referral program into your marketing. Find a
way to reward customers who send business your way, perhaps with discounts on
their purchases.
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You can start your own business by putting together your own computer shop. Before opening your computer
shop small business, you have to take into consideration several factors. These factors will determine the
success of your business. First, are you ready to start your own company? Taking online business classes can
help you prepare; just click here, and you can find out how to enroll in a great, affordable online university.
You can ask for help from people that you know so that it will be easier for you to establish your business.
Most importantly, you have to love what you do so that your business will be successful.
Here are some tips on how to start your own computer shop:
1. What kind of computer shop. Before starting, you must ask yourself what kind of computer
shop you are planning to start. Your computer shop may sell brand new computers or notebooks,
sell refurbished computers, or be a hardware shop, a wholesale computer shop or even an
Internet shop. There are many possibilities. Your shop can also sell other computer accessories
so that customers will be more inclined to visit your store.
2. Set your budget. When you have established your goal for your computer shop, you must set a
budget that you will spend for your business. You don't always have to spend in every aspect of
your business. If you are going to sell refurbished computers, you can ask your friends or
relatives to donate old computers or parts. You can just work on these so that you can add them
to your store. Still, you have to set a budget so that you won't overspend for your business.
Choose a location. Choose the site of your business. For this, you have to consider your
competitors. Check to see if there are other computer shops in the area that have the same products
and services as you do. It is best to set up a business in a location where you have no competition.
3. Get necessary permits. There are different licenses and permits that you have to get in order to
start your business. These are required in order for you to operate legally. Get the necessary
papers that you need before opening your business. Choose a name for your shop that will stick
in the minds of customers. Select from a number of names to be sure that you are the only one
who has that name.
4. Market your shop. Tell your friends and family about your computer shop so that they can
spread the news to other people. You can also advertise in local newspapers or bulletin boards, or
even post or give out flyers on the street.
5. Increase your sales. When you are already in business, it is also good to add more products to
your shop. You can add a game section and useful software. You can even add a section where
your customers can go online. Another idea is to have discount computers to attract more
customers.
These are the basic steps that you will have to go through in setting up a computer shop. It is best to do your
research first before starting any type of business. By doing this, and by staying informed by taking online
business courses from time to time, you can ensure that your business will be successful.
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NO INVENTORY
All products are drop-shipped from genuine computer
product wholesale distributors directly to your
customers' location with your business name on the
box.
Internet storefront businesses have become one of the best choices for home-based,
internet business opportunities.
QUICK START-UP
Start, build and set up your new computer reseller business in less than 2 weeks. You'll
learn how to quickly create, design and promote a profitable online store which takes
orders 24 hours a day 7 days per week.
You take the orders, the distributors build and then ship the computer systems directly to
your customers. There are many ways to profit from the computer reseller multi-billion-
dollar industry which makes this the perfect Internet business opportunity.
COMPLETE CONTROL
Work online from your home or small office. Be in control at all times. You make the
decisions. It’s your internet business, your company, your online store, your merchant
account, your customers, your sales, your profits.
This is not an affiliate program. There are no middle men. This is your computer reseller
business. You set your prices. You choose which computer products you want to sell.
You keep all the profits, all the time. This is a genuine internet business opportunity for
people who want to sell brand new computer hardware and software products online.
ANYONE CAN DO THIS
Anyone can become a successful computer reseller. You can even download
professional storefront templates available from TemplateMonster.com. Your e-store
will have the image of a professional computer reseller business.
Your Internet storefront will do all of the selling for you by providing complete product
feature and specification charts to help your customers make that buying decision on
their first visit to your site.
Even if you're already a computer reseller, joining the Inet Start team will be the best
investment you'll ever make. You'll discover why so many new and existing resellers
turn to Inet Start to increase sales and maximize profits.
According to the Forrester Online Retail Index, "Computer hardware and software
products continue the best selling products on the Internet with sales surpassing the
billions last year alone and expected to triple over the next couple of years". Forrester
Online Retail Index.
"Computer retail web sites are among the most popular online destinations," said
Anne Rickert, measurement analyst, Media Metrix.
Inet Start goes beyond the basics with a powerful Internet business solution that enables
you to join in and profit from one of the most fastest growing industries in the world.
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+Starting a Computer Shop
Today, businesses and schools are the only places where you will find powerful computers,
the PC has become a perinant fixture in many homes and some even have more than one.
In this article we will talk about setting up a computer repair store.
The Workplace
Your computer store can be in any number of locations. If you don’t have much capital to
start up the business or you are just a hobbyist, your workplace is most likely to be a spare
bedroom or garage set aside in your home. For this article we will be focusing on setting up
a workshop for a PC Repair business. However, much of the information in this article also
applies to other types of PC related businesses.
The Location
There are quite a few considerations you should look at for selecting a location for your PC
shop. First the area should be well lit, clean and dry. It should be located in an area so that
it easy to transport whole computers and components in and out of the area. For example,
an office space on the 4th floor of a building with no elevator would not be suitable.
Your work area should contain enough space for at least a workbench; a cabinet for spare
parts; shelving for catalogs; books and other reference materials; space for test equipment
and tools. You will also need to determine the amount of space you will need depending on
the amount of spare parts you will keep in stock and the amount of computers you expect
to be repairing at once; estimate for more than you currently need as the space required
will most likely grow as you get more work.
When you are determining the location of your workspace you should also consider the
concerns with electrical power. Your workspace should have enough power outlets and be
located conveniently near your workbench and the power should be clean meaning that
other appliances such as air conditioners, freezers, fridges etc.. should not be on the same
electrical circuit you intend to do repair work on. The type of devices can cause electrical
spikes which play havoc on computer equipment.
Organization
Always keep your workbench clean, it is annoying when you bring a computer to your
workbench only to find there is nowhere to put it down. The best way to avoid unwanted
workbench clutter is to avoid the temptation of putting tools down on the bench when you
are not using the, even for a few minutes. A good tool caddy where you can easily drop
tools in and take tools out will well with this.
To organize the computers you are working on such as who owns them, what the computer
is and what is wrong with it, a whiteboard with a layout similar to the example below is a
great asset.
Setting Up
You will need to determine the type of work area you need based on how much you want to
get into PC repair. For example, if you are a hobbyist you may want to set up a room in
your house permanently with minimal equipment and stock-on-hand and pay for stock as
you need it. If you intend to start your own business then you should set up a permanent
work area with a complete set of tools, equipment and stock which contains a bit of
everything.
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How I financed it
I had family that would sometimes loan me money. I had always made it a point to pay them back
even if I had to go hungry to do so. But I had never borrowed more than a hundred dollars and
nobody in my family could afford much more than that except one person. That was my younger
sister who was living in another country. She had started an import business and I heard she was
doing quite well with it. I decided to take a risk and ask her for a sizable sum of money. I wrote a half
page business plan and emailed it to her. I asked her for $3000. I honestly expected her to come up
with an excuse and say no. Asking for that kind of money, just wasn't done in my family. I felt totally
embarrassed for asking. I was in shock when she wrote me back and agreed. I received the loan via
check two weeks later.
Getting Started
I started in early July of 2007 by giving the owner around $1000 which paid the rent till the end of
August. I wanted to be ahead on the rent in case things started out slowly (which they did). I drew up
some plans for some furnishings, calculated the amount of lumber needed, then went to the
hardware store. I bought the lumber and wood screws I needed, rented a truck and brought the stuff
to the store. I borrowed some power tools and began putting it all together. I arranged to get a
phone, internet service, and power (in my name, it was already on). There was an eight by ten foot
storage room in the back where I set up a foam mattress to sleep on at night. There was also a
bathroom where I could easily give myself a sponge bath. I was fairly optimistic now but also scared.
I had never tried anything like this before. What if nobody came? I forced myself to work as hard as I
could and I was ready to open with three days.
Pictures taken shortly after I opened. Note the sparse surroundings and just a few computers. My life as an entrepreneur
was beginning.
Opening Day
I had bought four computers and refurbished them. I bought a cheap $15 digital camera for my ads
on craigslist. Finally I was ready. I opened the doors. I hadn't planned for a sign, so I bought a dry
erase board, wrote on it,and stuck it on a chair. I was already making mistakes. Would I succeed or
go down in flames? The first day went by with no sales...then a second and third day. I was starting
to worry. Finally a phone call and my first customer showed up. He looked at the computer, we
talked for a while, and I made my first sale. I used that money to buy another computer to fix up for
the next sale.
Eventually some unexpected help came my way. A friend of mine was going through dumpsters
looking for aluminum cans when he came across a place that had gone out of business. In a huge
industrial dumpster in the back were about 50 old monitors, half a dozen computers, tons of printers,
and all sorts of useful stuff that had been cleaned out of an old telemarketing place. He told me
about it and I made about a dozen trips collecting stuff. A lot of it I returned, but much of it was
useful. Other people started bringing in stuff that they found that they thought I could use. There
were a lot of people that wanted me to succeed. I was separated from my wife and when I showed
her what I was doing, she wanted to help out. She started coming around and making the place look
a lot nicer, plus I discovered that she was great with the customers. A couple of guys stopped by my
store and said that they were in the recycling business, selling a lot of their computer stuff for scrap
metal. I was able to start buying a lot of my stuff from them, allowing me to let go of the recycling
center. A few people started donating old computers that had quit working or were old. I was able to
fix them or strip them for parts.
Things started to come together. I slowly started getting repairs. A couple of laptops needing power
plug repairs was extremely labor intensive, but I charged a hundred dollars each. The money was
desperately needed. My customers were surprised when I would have their computers fixed in just a
day or two, apparently my competition would take weeks for that kind of work. Computers with
malware or corrupted hard drives would start showing up. I started a $100 flat refurbishment service
where I would wipe the hard drive, reinstall XP, download the drivers and install them. Their
computer would often run better than when it was new (new computers are often loaded with adware
which slows them down, a clean install doesn't have that problem). I also started a free diagnostic
service and wouldn't charge anyone for little things (like the guy who somehow moved his power
supply switch to 220 volts instead of 110 volts) that only took me a couple of minutes to diagnose
and fix. People started coming in from referrals from other people.
A few more computers than in the early pictures
Took a chance and started building gaming computers using new parts.
Me at work on a laptop
Strong Growth
For the next several months or so I was fairly busy running ads on craigslist. I also built a web site
that I put all my service rates and current computers for sale. I often linked to the site from craigslist
and slowly I seemed to be spending much less time trying to make sales. The number of repairs
seemed to double about every two months. I was originally open 12 hours a day from 9 AM to 9 PM
every day of the week, but I eventually changed my hours on Sunday to 1 PM - 9 PM. I continued to
live in the back of the store the next year, mainly to save money, but also to guard against burglary. I
paid my sister back her money before the year was up and I expanded inventory. I even started
building high end gaming computers and pre-installing a few games for customer testing (I ran
internet to all my computer stations). I started getting a lot of World of Warcraft people that liked the
fact that they could play test the computer before buying it.
Around the end of the first year, I broke a hundred repairs in a single month. I was still charging $100
each, with an additional $50 for data recovery where I had worked out a system that would only take
me about another hour even if the hard drive was corrupt (I removed it and hooked it up as a slave).
I had so much business, that I started paying another homeless guy $10 an hour cash to help me
out. I discovered he had a degree in computer science and actually knew a lot more about
computers than I did. Unfortunately, he suffered from severe schizophrenia and couldn't hold a
normal job. I was use to dealing with people like that from being homeless myself and I understood
that he had both strengths and weaknesses. Near the end I was pulling in over $10,000 on repairs
and earning another $1000 profit on sales. My overhead was about $1000, labor cost about $500,
and I spent about $1000 for decent fast food to keep everyone happy. I figured I earned around
$9000 the last full month we were open, although I spent a lot of that on increasing inventory.
Conclusion
I hope that this hub is of help to anyone out there who is planning to open a computer store. I have
included both my mistakes and successes. Obviously, if you want to open your own store, you have
to be very good with computers. You not only should be good with computers, but you need to love
working with them too, because you will soon be sick of them. The next thing is dedication and a lot
of hard work. I started out at 84 hours a week, maybe even more since I often worked late to get a
troublesome computer working. The other thing though is knowing that it takes about a full year to
ramp up to decent revenue. You should have plans to survive till that point is reached. If I decide to
start up another store, I plan to save up enough money to cover the rent for the first six months. This
experience has changed my perception about a lot of things. It was a tremendous learning
experience and I feel much more confident in trying new things. Last of all, if you do decide to do
something like this, I can tell you that the price for success is definitely worth it.
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Computer has become a household item in most Indian cities. Its utility to the masses not only lies in
research and communication but also in the field of entertainment. Needless to say, services in the
field of computers have opened up in a big way. With increased usage of computers prospects in this
field look very bright. So, if you have a penchant for dabbling with software or hardware, a computer
business may be the most appropriate field for you.
You need to be a computer literate person to start a computer business. Business minded people who
have space in their house are setting up computer rental shops with Internet access. They get a
steady flow of customers who help them earn good profits.
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Starting a PC Repair Business
10 smart tips that will help you start and grow your computer repair service
Are you the person everyone calls when they have a computer problem? Have you considered
getting paid for fixing near-fatal errors and turning your PC prowess into a business? According a
recent report, sales of computer services are expected to exceed $47 billion this year in the U.S.
alone, with PC repair leading the way.
"Almost all small businesses and home offices use computers and depend on them to be working
properly," says Chip Reaves, CEO of Computer Troubleshooters, a franchise network of computer
professionals. "They don't have the skills, the time or the desire to do their own computer service,
repair and upgrades, and that puts us right in the middle of one of the fastest-growing industries in
the world."
But if your only business experience is selling your mom's friend her first computer, how do you get
started? Besides coming up with a business name, getting a business license and obtaining general
liability business insurance (which ranges from $300 to $1500 annually and is obtainable through
your local city hall), there are a number of things you need to do to get started on the right foot. Here
are 10 tips that will help you successfully launch and run your new endeavor.
1. Know your street (and hourly) value. In the early 90's, running a PC repair business centered
around selling parts and products, with service on the side. Today, it's about selling hours. "You're
making money by selling management services [of computers, networks and servers]," says
Reaves. "It used to be that you made your money when a virus needed cleaning up or parts broke.
Now we're helping our customers prevent problems before they start by using management
technology."
To determine what your time is worth, investigate what your local competition is charging. While the
national average is $100 per hour for computer service billing, it's much higher in certain regions--
$160 an hour in Manhattan, for instance. When you must order new parts, such as modems or
motherboards, for a job, you'll need to make the purchase worth yours and your client's time,
especially if he/she has pre-paid you. So remember to factor in shipping, handling and insurance
costs, as well as an "opportunity" cost for ordering parts from lower-priced national vendors vs. a
local supplier.
2. Determine who your ideal customer is. If you're looking to sell and service computers within
your local community and remain a one-person operation, residential clients may suit you best.
They're generally more responsive to advertising and marketing than small-business owners are,
according to Reaves. Plus, residential work is less demanding and the market is huge, although the
competition is fierce--think Best Buy's "Geek Squad" and Circuit City's Firedog services, both of
which make house calls to perform installations and upgrades and to troubleshoot. Another
downside to residential customers is that your clients will tend to be more budget-conscious than if
you target the business owner.
If you decide to target the non-residential market, think small. "Niching is one way to go," says
Reaves. "Look at your existing contacts. Perhaps you know the principal at a school, a banker or the
owner of a real estate firm. These folks may lead you in to an area of specialization since the
software systems tend to be similar."
3. Realize that financial stability doesn't happen overnight. It's tough to juggle a day job with a
side gig, especially if you're honing in on small-business clients. But if you're not running your
business full time, you run the risk of losing clients, especially if you're targeting the business market.
"If you're not around to field tech support calls from nine to five, they'll quickly pick up the Yellow
Pages and move on to the next guy," says Reaves.
You'll need to build up a financial cushion--six to nine months salary is advisable--for when you
ultimately do turn in your pink slip and become fully self-employed. "People make better decisions
when they're not worried about their money running out," Reaves says. "And while it's hard to
relinquish the safety net of a paycheck and downgrade your lifestyle, you have to reach the point
where you treat it like a business instead of a hobby."
4. Know your strengths and weaknesses. If your background is strictly technical and you aren't
very business savvy, hire bookkeeping or accounting experts to handle the busywork and keep you
at your most productive so you can steadily increase your billable hours. You can also invest in
software products to handle administrative tasks. A few of the top software sellers, which can help
you manage people, projects and processes more efficiently,
include AutoTask, ConnectWise and Results.
5. Market your business every day. While you don't have to walk around wearing a sandwich
board when you're out on the street, the phone on your desk isn't going to ring until people know you
exist. And you can't rest on your past successes either. Whether you choose direct mail, pamphlet
drops, telemarketing or web marketing, you need to come up with a marketing mix that works for
you. For instance, advertising in your local community coupon book may prove to be a waste of
money, while networking at business trade organizations and chamber of commerce meetings may
pay off big.
"I easily put in five to 10 hours a week of promotion," says Jason Kaufman, owner of Computer
Troubleshooters of Mamaroneck, New York. "This doesn't mean just sitting at a desk, punching out
press releases. You've got to get your face out there, go door to door if you have to, to let people
know you exist. If you're bashful--not comfortable putting yourself out there or handling rejection--you
might find this business isn't for you."
6. Keep your skills current. Techies can easily fall into the trap of believing they can pick up new
skills on the fly or after quickly reading a manual. But if you fail to partake in continued education and
training, your knowledge base may become obsolete. "It's the nature of the business," Kaufman
says. "You have to find time to see what's new." Make time to visit such websites as CNET and
ZDNet to update yourself on new software applications and to find out about technology webinars
being offered.
7. Reach out if you need assistance. "Coming from a 100-person IT department in a large setting
where you have colleagues to help you and collaborate with, it can be pretty daunting and isolating if
you do run into an issue or problem while out on your own," says Kaufman. Fortunately, there's great
camaraderie in the tech community. There are fantastic web sites out there where you can bounce a
question off an "expert" and get a response within a few hours (Microsoft's Experts Exchange
charges $99 per year for this service). Learn what you can and cannot do well, and ask for help
when you need it.
8. Customize your workspace. Adjusting from an office cubicle to a home office environment takes
a commitment to organization. You'll need a clean, dedicated workspace (not the desk that the
family PC rests on) with room for a repair bench area for your tools and easily accessible storage
shelves and bins. The area doesn't have to be too big to start out with, but it should be able to
accommodate at least two tower PCs and monitors. A direct entrance to the area is nice, especially
if you expect drop-offs or are employing interns or other tech people to work with you. A converted
garage is a favorite area of a lot of techies.
9. Don't sign on the rental line just yet. If your ultimate business goal is to open up a PC service
center, realize that this type of venture takes more planning and management than you may expect.
Service centers must operate regular business hours, so sufficient staffing is essential. Capital
requirements are also significantly higher than for a work-from-home business, so a comprehensive
business plan is essential. Prepare for the worst-case scenario, insofar as cash flow is concerned
and make sure you have enough money or access to it, such as through a line of credit, to carry you
through the lean times.
Before committing to a lengthy, expensive storefront lease, you might opt to set a more realistic goal
of bringing on technicians within a year and opening up a space where customers can drop off their
computers up the road. "The added expense of overhead can be dangerous and backfire, unless
you already have steady clientele," says Jim Greenfield, owner of Computer Troubleshooters' New
York Midtown South franchise location.
10. Hire smart. Your first hire is going to make the main impression about your company with your
customers, so be sure to screen candidates on more than just their tech skills and certifications.
Your first employee should be driven and well-versed in both technical expertise and interpersonal
skills. Before hiring anyone, get three relevant, work-related references and written consent that you
may perform a background check before hiring. "If you're uncomfortable conducting an interview on
your own, ask a friend or mentor with more experience to join you in the process," advises
Greenfield.
The first step in the hiring process is to get an EIN (Employer Identification Number) by filing Form
SS-4 with the IRS. This nine-digit number is for you to use on tax forms specifically where it's asked
for by name--it's not a substitute for your Social Security number. You can get an EIN immediately
by applying to the IRS over the phone at (800) 829-4933.
Erika Welz Prafder is a New York-based freelance writer and the author ofKeep Your Paycheck, Live
Your Passion: How to Fulfill Your Dream Without Having to Quit Your Day Job (Adams
Media).Regarded as an expert on career and small business topics, she is a popular talk-show
guest on such TV and radio programs as Fortune Small Business, The Dolans and Fox & Friends.
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To B, or not to B
Many people who start a computer repair business first became involved with computers as a hobby.
Perhaps you were the only person in your office or classroom who could get the network printer to work,
or you discovered the joys of hardware repair through cleaning the lint off some mouse rollers. Maybe
you arrived here through the software side, helping friends and family get online with e-mail and web
surfing. The one thing you can be sure of is that there's a big difference between having a hobby and
running a business as a self employed entrepreneur. For the purpose of this book, we'll differentiate
between a business and a hobby as follows: A business makes money, a hobby costs money. For those
folks out there who are making money at what they call their "hobby," I have good news, you're already
running a successful business. If any of you are currently losing money in what you intended to be a
business, I hope that at least you're getting some entertainment value for your dollar. In this chapter we
will survey some of the decisions you need to make before you start a business and the factors that play
into them. All of the subjects touched on here will be treated in more detail in later.
The main paradox of being in business is that when you sell something, you own it forever. If you're a
tough guy, forever only lasts until the warranty expires, but saying "no" can require some real guts.
Whether you are selling hardware, software or services, you are always accepting some degree of
responsibility where before you had none. If nothing else, you should keep it in mind when you're setting
your prices. You'll find the experience to be similar to religious laws governing ritual impurity. The only
way to get clean involves taking a bath. Anything you touch will be forever after linked to your face and
phone number, and the best you can hope for is that the time will be billable.
Another common scenario for launching people into business is a windfall, such as severance pay, an
inheritance, or a lump sum distribution from a savings plan. I've never known anybody who had any luck
starting a business just because they got a financial head start. As important as the money is, it's your
professional and business skills that will make the difference between success and failure. The amount of
money you start with mainly impacts the amount of money you can lose if it doesn't work out. It can even
be a negative, because sometimes banks or vendors will grant you credit based on your cash value,
allowing you to lose even more than you started with. The only instance where I've seen free money help
out is in the case of unemployment benefits, which are distributed slowly, and can help a person keep
their head above water while having the opportunity to work full time at starting something new.
The worst financial mistake you can make is underestimating the amount of money you need to keep up
with the lifestyle to which you're accustomed. The broader philosophical question of how much money do
you need to be happy, or at least not to become desperate, is worth spending a few words on. Some
people are very good at living on pennies, and may actually enjoy it. Others will never buy something in
one store if they can pay more across the street. In my personal experience, there is very little mobility
between these two groups, and the habits are probably formed in childhood. If you consider eating out a
couple times a week a necessity rather than a lark, you aren't cut out for living on a shoestring. That
doesn't mean you can't make it in the computer business, it's just to warn you to add a couple points to
your selling margins. If you consider takeout and a video on Friday evening a cheap night, you probably
fall in the middle of the curve, but you'll be competing with some people who work every Friday night
and don't own a VCR.
Just a few months before I started writing this book, I got stuck redoing 20 hours of software development
for a customer whose hard drive failed when their air conditioning went down, and whose last good
backup was a month old. It took around ten hours just to get to the point where that old backup tape
would restore, and believe me, I was sweating bullets worrying I'd have to go all the way back to the last
CD backup I'd made with my own equipment the previous summer. In this case, the customer offered to
pay for time for both the repairs and the rework, but because I had set up the original tape backup system
and had failed to make sure that the incremental backups were still working each week, I took it as my
responsibility. Pride has its costs. I did try sending out the hard drive to a data recovery outfit, since my
memory isn't what it once was and I really wasn't enthusiastic rewriting the code from scratch, but it was
a head crash and nothing could be salvaged.
Managing Money
A final question to ask yourself before you set out on the path to self-employment in a computer career is,
"Do you balance your checkbook?" Anybody who can do addition and subtraction has the ability to
balance a checkbook, but some people prefer to live in ignorance. Maybe if you're selling illegal drugs or
pumping oil out of the ground, you can watch the thousands and let the smaller amounts take care of
themselves. In the computer business, the small amounts spent on shipping can make all the difference
between success and failure, and indeed many mail order businesses count on their shipping and handling
mark-up for a large proportion of their profits. If you want to be a self employed success, you need to
handle money for yourself. You can outsource tax preparation and bookkeeping, but you can't outsource
decision making and budgeting, which is what balancing your checkbook is all about. We mentioned
earlier that you're now the end of the line when you're out doing a service call. It's equally important to
realize that you're now the end of the line on purchasing decisions. Bad purchasing will put you out of
business even faster than bad service. As long as we're on the subject of money, I would discourage you
from starting a business if you are in the habit of carrying a balance on your credit card. The ability to
manage scarce financial resources is an absolute requirement in small business, and if you are already
dipping into credit card financing just to manage your personal expenses, you don't stand much of a
chance.
All of these questions and answers should be used to formulate a business plan. We aren't talking about a
business plan to bring to a bank. They aren't going to give you any money anyway. The important thing is
to get the basic facts down on paper so you don't end up pulling the wool over your own eyes. Start with
all of your current, pre-business expenses, none of which will go away just because you start working for
yourself. This dollar figure needs to be included in the plan as your salary, which you need to pay
yourself whether you're making a profit or not. If you can live on air, you're that much ahead of the game,
but be realistic. Identify your target markets (everyone doesn't count) and do a little market research. Go
ask your potential customers where they are currently buying their computers and services, and why they
chose these vendors. Estimate how many hours of service you'll be able to sell and divide by two, or by
four if you're an optimist. Rough out the expenses of a retail location and stock if that's your goal. Put
down every last expense you can think of, and be sure that you're still missing plenty. The point of this
business plan is to open your eyes and help you differentiate between the probable and the merely
possible. The Service Corps Of Retired Executives (SCORE) offers free counseling to budding
entrepreneurs across the country (toll free 1-800-634-0245 or www.score.org. SCORE is a non-profit
group with ties to the SmallBusiness Administration (SBA), and they are particularly good at helping
with business plans and early stage strategizing.
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Many that are trying to learn how to start a computer repair shop wonder, "How can I do
this when the economy has been so tough?"
Even before the recent economic downturn, the rules of computer repair and technology
businesses have changed dramatically. It's not enough to be a highly-talented repair
person or technology expert anymore. You have to be on the lookout for new client
business opportunities all the time.
Those starting computer repair shops face not only a tough economic client, but also a
highly-challenging business environment. If you are trying to figure out how to start a
computer repair shop, you do need to know that it's going to be tougher for you to find new
clients, but certainly not impossible. The flip side, the economic turmoil has also created a
lot of new opportunities that didn't exist as recently as 12 months ago.
Finding new customers needs to be one of your top priorities, so you can not only survive,
but thrive. You will need to stand apart from your local competition and constantly plant
the seeds for future business development activities.
To help you organize your lead generation activities, use the following 5 field-tested, proven
low-cost, high-impact tactics for starting your shop.
1. Think about Word-of-Mouth Referrals. In order to help you as you learn how to
start a computer repair shop, you need to know how to get more word-of-mouth
referrals. Think about how you will stay in touch with your existing contacts and get
back in touch with those that have lapsed over months and even years. For a retail
store-front repair shop, this almost screams for the idea of planning a super-cool,
high-excitement launch reception or open-house event.
2. Uncover All Service Revenue Opportunities. Chances to grow service revenue
for your shop surround you every day. You have to learn to look for networking
opportunities and methods to help you provide better and better solutions to your
valued clients everywhere you go. You should always be on the lookout for new
clients and partners, and be proactive about building relationships... especially with
those small businesses that need IT service on a regular, scheduled basis.
3. Make Your Marketing Materials More Response-Driven. As you're figuring out
how to start a computer repair shop in difficult economic times, you need to prepare
marketing materials that can dramatically boost the number of prospects you
convert into lucrative clients. Focus on low-cost opportunities to attract ideal clients
that will build long-term relationships with your firm. Work on creating a very strong
brand and logo that communicates your unique solutions and for whom you provide
these solutions. Then put together a Web site and business card that supports your
overall business plan. Remember it's the problem-solving that clients pay the big
bucks for, not the break-fix repairs, technical features, or IT buzzwords.
4. Learn How to Make Great Sales Calls. You need to make sure you avoid making
common mistakes in sales calls as you think about how to start a computer repair
shop. Avoid dwelling on the price of your services when you are talking about your
solutions to clients and always outline the unique benefits you provide. This will put
you on the right path to presenting yourself professionally and truly communicating
the strength of your complete business solutions.
5. Always Remember Customer Service. You can really leave your competitors in
the dust if you are mindful of providing great customer service. When you really
show you care about your clients and helping them grow their businesses, you will
gain their trust and loyalty and build the lifetime relationships that will bring you
steady, on-going revenue for your new repair shop.
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The truth is the type of software you use is not as important as the plan you implement for organizing
your time spent with clients. A big way to organize your time and prioritize clients is to establish a
very clear service contract plan and get every long-term client on that plan. If you don't set clear
boundaries for what you will and will not do or how you will work with clients, no software can help
you organize your business. You need to have a way to clearly decide who will get services now...
and who will have to wait until later.
In other words, if your business plan is either weak or non-existent, no amount of money that you
spend on software will be worthwhile.
With that in mind, let's look at 4 ways to better organize and prioritize your day-to-day business
activities, so you can deliver the best services no matter which type of computer repair service
software you use.
Difficulty:
Moderately Easy
Instructions
1. Don't Promise More Than You Can Deliver
2. Manage Client Expectations
3. Tier Your Response Time
4. Partner with Other Local Computer Repair Specialists
Tips & Warnings
Don't Promise More Than You Can Deliver. Many small computer repair companies make the mistake of
trying to deliver on promises like unreasonably quick response time with very sophisticated services, often
without a real service agreement plan in place. One of the major reasons why this major business-planning
mistake is made is a failure to identify real competitors in the marketplace. The truth is, if you run a one or
two, or even five-person shop, a Fortune 1000 company is not your direct competitor. As a result, you need
to focus on building long-term relationships with clients that will pay you high rates for specialized,
personalized work. In other words, you need to fill in gaps in the marketplace that are being overlooked by
bloated Fortune 1000 bureaucracies. This type of mindset combined with your computer repair service
software will help you deliver high-quality solutions to the types of clients that will pay you for on-going
work through long-term service agreements. In other words, focus on the relationship, not just the initial sale.
Remember, your business needs to be profitable and sustainable, not just busy.
Manage Client Expectations. Most clients want instant results; however, their IT budgets can rarely afford
this kind of service. To realistically accommodate this type of client and even exceed his/her expectations,
make sure your service agreements for computer repair are lucrative. In other words, you need to set rates
high enough so you can afford to provide this high level of prioritized service to your most valuable clients.
You will also need to make sure you are appropriately staffed to handle the number of clients you take on, so
you can really be on call to respond rapidly during service hours and make use of your preferred computer
repair service software.
Tier Your Response Time. Tiering your response time with different modes of response as part of your
service contract plan can help you handle response time issues. For example, during normal business hours,
you might offer callback for emergency phone support within 30 minutes, remote troubleshooting within two
hours and on-site response within four hours or the next business day. When you can really micro-manage
who gets prioritized response as part of your service contract plan, you will help make more efficient use of
the time you have available, regardless of whether or not you choose to use specialized software.
Partner with Other Local Computer Repair Specialists. When 90% of your clients all have network
emergencies on the same day, even the most sophisticated computer repair service software won't save you.
You need to prepare yourself for this inevitability by partnering with other non-competing computer repair
specialists in your area so you are fully supported and can continue to deliver on promises to your clients
when everything hits the fan at once. If you don't think this could ever happen, think about earthquakes,
tornadoes, hurricanes, flash floods, and other natural disasters that can hit thousands of small businesses
simultaneously.
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The truth is, customers aren't going to come chasing you down. And while ideally you want to get
long-term clients right away that will be with you for many years to come, the chances of these types
of small business clients coming your way immediately on day 1 are slim. You have to start
somewhere, so you can build your credibility, prove your expertise and create a solid network
of relationships that will attract ideal clients.
The following 4 tips can help you get great clients as you are starting a computer repair shop.
Difficulty: Moderately Easy
Instructions
1. Don't Overlook the Value of Stepping Stone Customers.
2. Know When to Get Selective
3. Know the Work You Will Be Doing When You First Start
4. Focus on Your Personal and Business Networks
Tips & Warnings
Don't Overlook the Value of Stepping Stone Customers. It's OK if you don't get everything perfect on day 1
as you are starting a computer repair shop. But you still have to get paying customers... any paying
customers. These customers you get in the beginning are sometimes called stepping-stone customers and will
bring you early revenue. Stepping-stone customers will also help you start acquiring positive business
testimonials that enhance your marketing efforts.
Know When to Get Selective. Six months after starting a computer repair shop, you need to get more
selective when choosing your small business clients. For the first six months of your business, your accounts
will most likely be smaller than you would like. But if you are confident as you begin that your smaller
clients will eventually be replaced by more ideal, steady, long-term, high-paying clients, your business will
be able to grow.
Know the Work You Will Be Doing When You First Start. The following is a list of some of the more
commonly-requested services by non-technical small business owners and managers: network audits;
training; upgrades; PC tune-ups; light Web site design; optimization and troubleshooting. Make sure you are
prepared to handle at least most of these tasks and go into new customer relationships with confidence and
expertise.
Focus on Your Personal and Business Networks. When you are starting a computer repair shop, your
personal and business networks are critical to your success. These valuable contacts will be the ones that
refer you to new clients. As you complete new projects, word will spread about your services. And shortly,
more referral business will start flowing in as a result of the relationships you foster with those in your
networks. You can't afford to ignore any business. You also can't get discouraged. Starting a computer repair
shop is an exercise in patience and diligence. You never know where one of your small customers might lead
you.
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Yes, you will need to have computer skills and basic certifications that allow you to work well with
your clients' systems. But what else will you need to build a computer repair shop that will attract
steady, high-paying clients and last far into the future?
Difficulty:
Moderately Easy
Instructions
1. Write Down Your Business Plan. Write down a clear business plan that takes into account
your goals for your computer repair shop.
2. Think about Marketing and How You Will Get Clients. What are the common characteristics
and problems of your target prospects, customers and clients?
3. Don't Forget About Your People Skills.
Tips & Warnings
Write Down Your Business Plan. Write down a clear business plan that takes into account your goals for
your computer repair shop. You also need to decide which problems you will solve and how you will handle
day-to-day operations. You need to make important decisions such as whether or not you will sell parts, or
just do the repair work. What will your hourly rate be? Will you offer on-going service agreements? You
need to set clear parameters for your computer repair shop before a client even enters it. This way, you can
stay consistent, be professional and achieve your revenue goals.
Think about Marketing and How You Will Get Clients. What are the common characteristics and problems
of your target prospects, customers and clients? Once you know this, you can easily develop a marketing
plan that will speak to these potential clients and their points of pain. Think about which strategies you will
use and what your main marketing message will be. You need to diversify and track several strategies at
once to find the ones that generate the best results. If you have a specialty or work with a specific industry,
you can use this to design a very personalized marketing campaign that will help your computer repair shop
stand out from the crowd.
Don't Forget About Your People Skills. Even though running a computer repair shop involves a lot of
technical work and skills, you need to think about how you can build and add value to relationships. Most
successful computer repair shops have very strong technical skills. But what will set you apart is if you can
be phenomenal on the repair side, and the sales and relationship-management side. The best technicians have
good people skills that really help get through major projects and retain clients for many years. In a situation
where you are installing a network or doing very complex projects, you will need to coordinate with many
vendors and subcontractors. A lot can go wrong if you are not good at account management and
communicating with others to get the job done.
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In order to provide the best computer repair services to your clients, you need to encourage your
technical staff to learn about high-end networking solutions. Not only will these solutions will be
worth more per hour, but they will also lead to higher-margin projects that have real long-term
potential for your staff and your business.
Consider the following 3 guiding points to push your technical staff beyond basic troubleshooting and
break/fix work, so you can start booking up their time to provide more professionally-gratifying, high-
margin computer repair services.
Difficulty: Moderately Easy
Instructions
1. Personal Gratification Keeps Your Technical Staff Happy.
2. When You Challenge Your Computer Repair Services Technicians, You Retain Them.
3. Complex Networking Projects Mean Long-Term ClientRelationships.
Tips & Warnings
Personal Gratification Keeps Your Technical Staff Happy. When you challenge your staff to work on
advanced networking projects, you pave the way towards professional gratification. In computer repair
services, you find a lot of "techies" that love to work on projects that tax their knowledge. Your employees
will be incredibly frustrated if they develop very high-end skills and then are forced to do simple fixes or
spending all day long giving basic advice about rebooting.
When You Challenge Your Computer Repair Services Technicians, You Retain Them. When your
technical staff members get to work at their true technical peak and are exposed to increasingly rewarding
challenges, they will experience great professional gratification. So, advanced training can be a great
retention tool. On the flip side, if your employees feel they constantly have to deliver computer repair
services that are beneath them, they will be more likely to seek out your competitors for better job
opportunities.
Complex Networking Projects Mean Long-Term Client Relationships. When your technical staff members
develop long-term client relationships, they get greater satisfaction than when they just work on very basic
computer fixes. They get to work with clients over an extended period of time and really get to know them
well. They get to build relationships they care about and get really attached to people and projects, which
means they remain very loyal to your firm over time. Plus, when your staff is helping you achieve your goal
of building strong relationships with your clients, you will see more on-going revenue for your business.
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o 1
Subscribe to the top trade journals in your field. Because technology advances so quickly, you need
to be fully aware of the latest developments in the computer world, release dates ofcomputer
software your clients may want to purchase, and the pros and cons of every operating system your
potential customers may ask about. Periodicals can be found on your local newsstand and
subscribed to online, to help you stay abreast of tech trends.
o 2
Decide on the services you will offer your customers. To find out what other computer repair stores
in your area are charging, call them and ask for their website address. Once you have their site, look
for the types of services they provide and the charges. You can also ask the stores what they would
charge for such services as spyware removal, putting in a new operating system and the installation
of a new hard drive.
o 3
Be creative when you look for new customers. Think about where they may spend their time. You
can leave fliers with your company information at places that have a free wireless connection, movie
theaters and places of higher learning, where the students may be looking for economically priced
computer repair services.
o 4
Offer a free computer diagnosis. If you offer to diagnose what is wrong at no charge, you will
probably drive a great deal of customer traffic to your store. Computer owners will want to know
exactly what is causing their computer to malfunction, the price it will cost to fix it and how long the
repair will take. Offering people a free repair estimate will draw more customers, as long as you offer
fair prices for your services.
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+
Sep 20
How to start a Computer Shop
BusinessAdd comments
computer shop
Computers form an integral part of our lifestyles today. For nearly everything like studying,
business purposes, dating, booking tickets etc we need to have the computer. Thus it
would not be an ignorant decision for setting up a store dealing with the computer and its
components. Once you have decided to set up a computer store you need to analyze a few
things. They have been discussed in the following lines.
There are 2 types of retailing in the computer sector. They are-a) box shifters who operate
on the similar lines like that of an electrical goods shop-meaning they provide a range of
the hardware and software and other computer accessories off the shelf. The customer
base involves basically the private individuals and small or medium sized businesses. b)
Value Added Retailers (VARS) who actually buy independent computer components and
assemble them to form the complete system. They provide a range of services like
providing the hardware, software, accessories and even consultancy services. The customer
base is largely small and medium type organizations and even large businesses.
One might even decide to operate his shop in a particular segment of the market. For
instance, accounting software, computer game software, retailing systems, internet
solutions and so on and so forth. The type of business lines on which you may choose to
operate is directly related to your own skills and experience to a considerable extent.
Setting up a computer store also involves that you have to have a suitable work area
assigned for the repairs of the faulty computers as well. This area in particular has to be
clean, well lit, must have a proper workbench, cabinet for spare parts, shelving for catalogs
etc. The constant supply of electrical power is also an important necessity.
These are some of the things that one should keep in mind about the process of setting up
a computer store.
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When it comes to starting a repair shop, you can’t just go in there with guns blazing on Day 1 of
business and expect to get instant clients just by being aggressive and talking about how great your
services are.
What can you do to build trust among your customers and really get your business started on solid
footing as you open a computer repair shop?
Maybe you feel like you’re doing everything right when it comes to marketing your repair company.
You’ve joined some organizations, gone to some networking meetings, met some non-competing
business owners in the IT field, and have been giving out your business cards everywhere … but
you’re still not getting any response.
What’s the problem? Likely, you haven’t given your efforts enough time to produce results. Merely
joining an organization is not enough to get people through the doors of your shop. However, if you
have been active with your marketing activities for six months and still nothing is happening, you
probably need to try another organization and some other marketing approaches.
As you open a computer repair shop, take everything slowly with new customers and let relationships
evolve naturally. You usually can’t expect to go to one or two meetings and make a $25,000 sale.
And if you do seem to have that beginner's luck, go right out and buy a lottery ticket because the
odds are just about the same. Sometimes an unexpected client project windfall will come up and
literally land in your lap because your timing is perfect, but most of the time you really need to work
on building the essential “know, like and trust” of personal relationships.
If you have a warm personality and are friendly and charismatic, you will be able to build great
personal relationships. Working in computer repair means working with people; you can’t be a loner,
or hide in the back room and expect to do well when you open a computer repair shop.
Also, remember that with personal relationships, first impressions are really important. You need to
build a rapport with the people you meet by dressing professionally and working on building your
business chemistry. Make sure to also send business their way if you find someone that needs their
services.
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Dave's Answer:
What a great question, actually. When I was a teen, I had a bicycle repair
business that I ran out of my garage and I used to solicit the neighbors to
wax their cars. Lots of work, not so much reward. Sounds like what you're
doing would offer a better payment for less effort, so I surmise right off the
bat that you're a better businessperson than I was. :-)
Now, the biggest issue with any sort of service company is to ensure that
you set expectations properly regarding what you'll be delivering, and have
a reasonable policy for both pricing and refunds. Specifically, what happens
if someone entrusts you to get a virus off their computer and you end up
trashing their disk and destroying all their data? It might seem like a bit
more scary a business when you have some adult yelling at you for losing
their wedding pictures or the report they need to give the boss on Monday.
You can mitigate that by having a very clear liability policy, a document that
they sign when they agree to have you work on their computer that says, in
essence:
By hiring me to fix your computer, you agree that you have already done an adequate
backup to retain all of your important data, and that if, in the course of my repairs,
there is any sort of data loss you won't hold me liable. In addition, while I will make the
best efforts to remove any viruses, spyware, etc., it is possible that some will creep on
your computer during my repairs, and you agree not to hold me liable for any infections
either.
Print it, make them physically sign and date the paper, then keep it on file.
Pricing-wise, that's a tough one because on the one hand, you can charge
whatever the market will bear (a basic economic theory, actually, that the
market determines the value of a product or service), but on the other hand,
it's pretty tough to justify a $250/hour rate if you're a 14yo working out of
your dining room. :-)
I suggest that you call up a couple of the local computer repair facilities and
ask them what they charge for basic repairs, hardware and software
upgrades, etc., then charge 50%-75% of that rate. If they charge, for
example, $75 to install new RAM in a computer, you could charge $49 and
get a good amount of business. Charge $25 and you'll get even more,
actually, and as you know, that's the kind of task that's pretty easy if you're
comfortable with gear and terrifying if you aren't.
On the other hand, you don't want to charge too little, because then you're
undervaluing your skills and won't have any credibility as a PC tech, 14 or
otherwise. If you charged $5 to install RAM, for example, people probably
wouldn't ask you for help because they wouldn't perceive you as a "real
business".
And in that light, I strongly suggest that you make up some business cards
and even perhaps pull together a one page Web site for your business. By
having the elements of a professional, you'll more quickly convey the
impression of professionalism, which helps you gain business and charge
more. You can get business cards for free from somewhere
like VistaPrint.com, and with a bit of fiddling, they'll look great! Now you can
go into the local computer stores and ask if you can stick a pile of your
business cards on their bulletin board or otherwise ask a friendly employee
to help you get some business.
Finally, remember that people are entrusting you with more than just a
piece of gear. Modern computers have lots of memories, lots of important
files and even legal documents on them. Make sure you treat their gear with
maturity and professionalism and that you demonstrate they haven't
misplaced their trust in you when they give you a computer, laptop or other
equipment to fix or upgrade.
Good luck and I hope you can come back in a few months and let us know
how things are going!