Help with possible computer business.

[mosdef]

I am planning to start a small local computer specialist business for the summer. I will be dealing in both hardware (helping choose and save on new computers, helping with hardware failures, etc.) and software (applications, possibly expand to some programming and web page design). My problem is that I'm not sure exactly what I'll be getting myself into. I take class and work during the day, so I don't exactly have the energy to run around from house to house helping people with their problems all night. However, I feel like I am wasting a possibly very nice form of revenue, but I might be overwhelmed. I have helped people with their problems in the past, and I feel like I am good people-person. Does anyone have any experiences with this?

Also here are some questions I have...

1. How can I grab someone's attention when I advertise? In other words, what are computer users looking for when they look for customer support? I plan to first put up fliers with my phone number and e-mail address and see what kind of response I get from that. I will consider other options later, but what could these options be? I was thinking of giving users business cards to give to their friends and telling them I'd give a certain amount of money off their next appointment, but is that too aggressive?

2. I will be a college sophmore. Given my age, what would you suggest as a rate, or should I base my rate on different services? I was thinking $20-$25/hour, does that sound right? If that's too low or high please let me know.

3. Any suggestions for a name or ideas on what would be catchy?

4. A motto?

5. Any other things I must consider?

Thanks!

-mosdef

 

[Wedesdo]

not to pour water on your idea, but it's really tough to get a business like yours going...

normal computer users (ie the ones who can't do their own tech support) worry most about TRUSTWORTHYNESS. therefore, they're MUCH more likly to call the pc manufacture or software provider to solve their problems rather than take it to a one-man shop with no prior history.

sorry to say this, but it's probably the truth... if you really want to do tech support, try getting a job at bestbuy or compusa... the employee discounts are pretty good, and you're not personally responsible for any mistakes that happen...

 

[mosdef]

Wedesdo - BestBuy isn't an option because I already work a 9-5 (well I don't actually work til 5 but you get the point). Anyway, I have no interest in working for someone else when I can be earning far more by working independently. I don't plan to make a living off this, just make some extra cash. I was thinking I'd get at least some calls, and then branch off from there if I made a good impression on my customers.

-mosdef

 

[ilkhan_v4]

Well, I have limited experience here, but I can help you out from what I have learned. $25 an hour is less than most people would charge, so that's a good price. Don't worry about advertising or getting a name just yet. Just do one or two PC's or upgrades for someone and do a REALLY good job. Go that extra mile and do some stuff for free. If they really like your work, the word of mouth will be better than any advertising you can do. I did some wireless networking installs, and something like that was easy to sell people on, so that got my foot in the door to do more, like upgrading their PC's or setting them up with one (one guy offered to pay me just to help him buy a PC). So, if you really know what you're doing, hopefully it'll show and people will appreciate your work. Like I said, go the extra mile and people will remember it.

 

[vi edit]

What's the Computer tech market like in your area? Are there many similar services already offered? What are the rates the the repair shops are charging?




<< My problem is that I'm not sure exactly what I'll be getting myself into. I take class and work during the day, so I don't exactly have the energy to run around from house to house helping people with their problems all night >>



That can be a problem. If you do go forward with this, you WILL have people trying to reach you at any given time of the day, and they will want their problems fixed 5 minutes ago. You will have to put up with this and will have to find a way to juggle all of your commitments without slacking in any of them.

As far as what to aim yourself at - networking small offices and setting up networks in homes seems to be a growing market. With the increased availablity of broadband, small businesses are learning the benefits of using the internet and want to have their internet connections shared out to multiple computers. Same goes for home users.

You will really want to consider making it official and setting up a tax id. I would also suggest setting up a &quot;business only&quot; cell phone that you give out to customers and make it very clear that the hours of service are only between XX:XX and XX:XX.

This is just a few minor suggestions, there are many more experienced people doing just what you want to do that can give far better advice than I.

 

[mosdef]

Thanks for the tips guys! To anyone who cares, VistaPrint.com seems to be giving out free business cards so I'll be jumping on that I think. I have set up networks at home, and networking in general seems like a high-impact, low-difficulty task, so I could make a nice profit for not a lot of work. How do I go about setting up a Tax ID? Also a name?

-mosdef

 

[vi edit]

Drop $20 on this book. It will cover just about any and all questions you will have.

 

[AccruedExpenditure]

Why Don't You Just Stick to Rapping

 

[mosdef]

<< Why Don't You Just Stick to Rapping >>



lol

-mosdef

 

[Russ]

mosdef,

Screw repairs/upgrades and system building. In your situation, learn networking.

Russ, NCNE

 

[mosdef]

Russ - If I focus on networking, would I still be catering to the same people? Networking is something I would definately be interested in because in general it is not difficult to set up but carries a lot of hype with it. Of course I would not be able to troubleshoot all problems, so learning more would definitely be a good idea. What do you mean by &quot;in your situation&quot;?

-mosdef

 

[Russ]

<< What do you mean by &quot;in your situation&quot;? >>



Working a job, going to school, and doing the puter biz part time. Upgrades and system builds will bury you in tech support calls. Small office networking jobs, if done correctly, won't suck up nearly as much of your time after the sale.

Russ, NCNE

 

[mosdef]

I see, good point Russ. I think the problem with focusing on network is that entering the market (i.e. finding customers) will be more difficult. How can I convey to an average computer user through a flier that networking will make their lives simpler and more efficient? Or is flier too &quot;low-tech&quot; for this operation, and should I look into different means of advertising and/or different customers (such as a small business)?

Thanks.

-mosdef

 

[mosdef]

Can anyone with personal experiences in this comment?

-mosdef

 

[Night201]

I get business from word of mouth. Family telling friends, who tell friends, etc...

I charge $40/hour for repairs/house calls and usually about $100 to custom build a computer.

 

[bjc112]

night has a great point,

I have no Business by ANY MEANS, but.. i have built one, upgrade plenty, help at my Dads Business,

and are planning on building 2 more in July, word of mouth is a great thing,

start telling people, won't be a TON of business but a great side job!

Bryan

 

[mosdef]

Night201 &amp; bjc112 - YGPM

-mosdef

 

[amdskip]

Hmm, very interesting.

 

[mosdef]

Heh, what's that amdskip? (Btw are you the one who posted those prom pics? I remember everyone tore all your friends up.)

-mosdef

 

Don't open a company.
Get a client base.
Go around and look for the PC repair shops, and see what rates they are charging and where lots of their business is.
Then undercut them by like 50%.
Advertise by word of mouth or flyers.
Just pick up the cash under the table, and be chillin'

 

[urameatball]

the computer industry is known to have the among the lowest profit margin. But it really depends on where you are located. Here in Toronto,Canada, most computer stores that sell computer parts make about 5% profit if lucky. These independent stores mostly survive by either selling a LOT of computers, some stores open from 9am-9pm... OR they jack up their computer prices and hope some really uninformed guy walks in to buy some parts. Both types of stores make most of their profits on upgrades and putting systems together for customers.

anyway, if you're in one of these above mentioned places... then it's gonna be harder because you dam well need to make a pretty good reputation for yourself before anyone starts knocking on your door and paying $25/hr or whatnot. And I guess you being in College, you would probably get a lot of your business from college dorm people. And the problem with that is, there are a LOT of dorm computer geeks that know as much, or more than you know... So if you were to 'upgrade' a dorm customer's computer, you better make sure you do it right and cheap... or else your 'not so great' reputation would fly across the dorms like there's no tomorow.

Anyway, bottom line is, build yourself a reputation and people will come... (so don't screw anything up)... and MAKE SURE you 'sound' very knowledgeable and confident about computers.

 

[mosdef]

I didn't really suggest a full-fledged company, I just think it should be something legitimate and professional. Hehe or we could just keep this little operation between you and me, Uncle Sam doesn't need to know.

-mosdef

 

[mosdef]

I don't intend at all to focus on building computers for people, though I can definitely do that. I was thinking more of my time would be spent on helping users learn applications, troubleshooting problems, etc. I think users would be far more comfortable with a college kid helping them learn how to use their computer than building them one from scratch.

-mosdef

 

[bjc112]

YGPM- Mosdef

Hey guys, i was kinda thinking the same thing, but about the Fliers, and things like that...

if i a not A+ certified or anything, its probably not a good idea to get into toooooo many jobs, that i couldn't back up!?!!

Right?

Bryan

 

[vi edit]

You don't make money selling part. You make money selling your service.

If you go the networking route, you overnight order the parts that you need if you can't pick them up locally so that you don't have inventory on hand, and then you simply charge for the service that you provide(your time).

There is no overhead, and aside from taxes and standard deductions, it is pretty much 100% profit.

You can't say the same for hardware. 10% profit on parts would be a decent profit, and then factor in the support that you have to provide and as well as the stress that you are under if a part dies and it takes a couple weeks to RMA it. You have to keep an inventory on hand that is constantly depreciating, and you have to have a place to hold it that costs money to rent as well.