Question for those who have a computer business

[burn1337]

David - If you are not very intelligent with it, do not expect to make much... Also if you are not able to completely devote yourself to it, you won't go far... For instance, me and my business partner have not actually considered our business open yet... Though there are many reasons as to why, yet both of us have made good side money from our skills... He is working with Disney making a good amount of money. He only does graphic design... In 7 months without trying to do anything more then find an actual job, I have made $600 dollars, plus still have $300 coming to me, not to mention another client coming to me from the one I have been working with...

If I where to actually try, with as many people as I know... I would have made a hell of a lot more then that so far...

So if your in it in hopes of making good money; great people skills is a must, and a love for a challenge is too... Otherwise, getting certifications and degrees and just finding a job, is much easier...

 

[PokerDegenerate]

well David the members who have posted don't have actual computer "business'" and don't rely on it to make a living. They know what they are doing and have clients but don't have storefronts or file taxes as a business. It is hard to really say how much you will make and what would be good advertising for your area because we don't really know where you are. The biggest issue with opening a storefront computer business with no customer base at all. If you honestly think you are going to even make a profit in the first month you are most likely in for a rude awakening. Most small businesses don't post profits till around the 6 month or a year mark. If ever. and with no customer base beginning you are shooting yourself in the foot by opening a storefront shop. You have to factor in rent, bills, insurance, and other costs such as inventory as well.

Another thing you need to factor in is your potential competition. Places such as best buy, geek squad, and other potential computer repair shops who are already established in your area. People are creatures of habit and if someone has already fixed their computer once and it worked how they want they will most likely go back to them. Average users are scared of computers and feel they have no clue how they work and don't trust strangers with them either because they feel they are too complex and not just anyone can work on them D)

You also have to list what services you plan to offer and get a list of services offered by your competition and see if you can compete price wise with them and what services they don't offer that you can.

As with any business you need to get started somewhat before you even think of opening up a storefront because of all the expenses you will come into and not having enough capital in the beginning to be able to afford the start up costs and potential losses is what makes many small business' fail within the first year. People think that if they open up a business that customers will just come in and make purchases but it doesn't always work that way and with the overhead of a storefront bills pile up quickly.

I'm not saying it cant be done but a lot of research and funding has to be done before you jump into it. With any business you will get out of it what you put into it time wise. The more you can compete with other companies plays a HUGE roll as well because at the end of the day if someone offers the same thing for cheaper it is REALLY hard to compete especially in this economy.

 

[david90]

Thanks for the input poker.

Another question for people with a HOME computer business. What is your business's monthly expense?

I'm currently doing a "12 month profit and loss projection" and I guesstimated that my monthly expense will be about $2500. I came up with this number by listing and adding all the expenses that I could think of. Is $2500 too much?

 

[setishock]

You want to keep your on hand inventory small. Minimize your tools but have a good selection.
You'll want to have a good workbench you can walk completely around. And daylight type overhead lighting. Your diag software along with scopes and meters will be a bit pricey.
Those can be written off as capitol expenses and normally are one shot items.
On-going expenses will be inventory bought on a credit account and a slight increase in your utilities. Another pocket killing expense is a second phone line and ads in the yellow pages.
If you're doing a P&L you'll have to add yourself on an an employee at a set pay scale. You can't just stick your hand in the till and take out what you want. The IRS does not go for that. If you file a return quarterly or semi annually or yearly for the business they will be looking for just that. If you don't have yourself on there the return will get audited.
INCORPORATE the business. This insulates your personal assets such as your home from any one that tries to sue you over something. If you don't they can nab your bank accounts, your home, your car, and anything you and your family has of any value. Incorporating is not expensive but it does have to done by a lawyer that is certified to do that and registered at the courthouse.
If you don't incorporate, you could wind up naked and homeless over some of the most trivial bullshit.
Make sure the lawyer knows you're working out of your home so that can be included in the documents.

So if I haven't made you change your mind this part just might. Your primary capitol outlay will be somewhere in the hood of 5 to 10K US dollars. On-going expenses you can look at around a minimum of 2500 a month.
Good luck...

 

[david90]

So my guess about monthly expense is right on...wow i'm good . I won't have any inventory because I will sell services (ie. network setup, POS etc). Bad idea to go up against dell.

P&L?

 

[david90]

Any other helpful tips?