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Old 04-10-2010, 08:41 AM   #1
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Default Opening a PC Shop

So i'm considering opening my own PC Shop in a year (When im 18). I Was hoping to get some opinions from you guys to decide wether or not this would be a good idea.

To start up im thinking a 50k Loan (Over a 5 year period),the average commercial space around here goes for about 30,000 P.A. That'd leave me with 20k for Renovation/Furnishing/Stock.

I've worked out that per month it'd lay out like this;

$1000 - Loan of 50k over 5 Years
$400 - Electricity
$100 - Water...
$100 - Phone And Internet
--
$1600

Then i need money to live on.

This also isnt including Business Insurance as i cant find an average price.

Has anybody here done this? Failed or succesfull?
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Old 04-10-2010, 09:44 AM   #2
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Default Re: Opening a PC Shop

Who is going to lend an 18 year old with no job 50 grand? If you are really serious about it I would advise you to go to University and get a business degree or some business study a tafe first.
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Old 04-10-2010, 10:08 AM   #3
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Default Re: Opening a PC Shop

you dont need a business degree to be successful :/ anyone can open a shop and be successfull/ failure.

I think it would be strongly advised you started online first before a physical shop, plus if you have like a year or so of running a shop online the lenders might be more likely to give a big loan of 50k. also I think you shoudl only have a loan for one year to see how things go, because if it really fails in first year youve got 5 years worth of loan just sititng there

but if you did open a shop hpe it goes well
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Old 04-10-2010, 11:32 AM   #4
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Default Re: Opening a PC Shop

Quote:
Originally Posted by Lowndsey View Post
Who is going to lend an 18 year old with no job 50 grand? If you are really serious about it I would advise you to go to University and get a business degree or some business study a tafe first.
Either that or get some experience somewhere in the field for a few years.

I plan on test-driving computer repair where I live this summer.(get a 2 month break with my job, I've got 3 1/2 years experience repairing desktops/laptops) It will be an in-home computer repair service though. I will not need 50k to start doing this.

My tools:

Google
Flash Drive(Virus removal tools)
External hard drive for backing up
Screw driver
Brain
A Liability Form.

Cost: $100
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Old 04-10-2010, 11:44 AM   #5
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Default Re: Opening a PC Shop

Quote:
Originally Posted by CBrooks View Post
Either that or get some experience somewhere in the field for a few years.

I plan on test-driving computer repair where I live this summer.(get a 2 month break with my job, I've got 3 1/2 years experience repairing desktops/laptops) It will be an in-home computer repair service though. I will not need 50k to start doing this.

My tools:

Google
Flash Drive(Virus removal tools)
External hard drive for backing up
Screw driver
Brain
A Liability Form.

Cost: $100
ditch the brain, takes up too much space :P

but yeh this sounds good to me
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Old 04-10-2010, 11:56 AM   #6
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Default Re: Opening a PC Shop

Quote:
Originally Posted by Lowndsey View Post
Who is going to lend an 18 year old with no job 50 grand? If you are really serious about it I would advise you to go to University and get a business degree or some business study a tafe first.
This.
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Old 04-10-2010, 12:48 PM   #7
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Default Re: Opening a PC Shop

Quote:
Originally Posted by Lowndsey View Post
Who is going to lend an 18 year old with no job 50 grand? If you are really serious about it I would advise you to go to University and get a business degree or some business study a tafe first.
This was my first thought as well

Quote:
Originally Posted by madanchi View Post
you dont need a business degree to be successful :/ anyone can open a shop and be successfull/ failure.

I think it would be strongly advised you started online first before a physical shop, plus if you have like a year or so of running a shop online the lenders might be more likely to give a big loan of 50k. also I think you shoudl only have a loan for one year to see how things go, because if it really fails in first year youve got 5 years worth of loan just sititng there

but if you did open a shop hpe it goes well
The whole loan for a year won't make sense for a 50k loan
If you take a loan out for a year for 50k depending on the interest rate on the loan that makes the payments around $4200 a month. That is just unreasonable. Even if he does fail with a year loan or a 5 year loan and he defaults either way he is screwed credit wise.

@OP My questions are:

how much clientele do you have now if any?
I know in the US we have the SBA (small business association) do you guys have anything like that in Australia?
What type of competition do you have around you?
Are you investing anything upfront or is this loan covering everything?
Do you have a business plan?
How do you plan on keeping your books?
Are you going to have parts on hand (inventory) or is there going to be a wait period for every customer who needs repair?
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Old 04-10-2010, 05:36 PM   #8
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Default Re: Opening a PC Shop

Quote:
Originally Posted by madanchi View Post
you dont need a business degree to be successful :/ anyone can open a shop and be successfull/ failure.

I think it would be strongly advised you started online first before a physical shop, plus if you have like a year or so of running a shop online the lenders might be more likely to give a big loan of 50k. also I think you shoudl only have a loan for one year to see how things go, because if it really fails in first year youve got 5 years worth of loan just sititng there

but if you did open a shop hpe it goes well
The trouble online is there is so much competition, people like the convenience of a store and the piece of mind they can come back if they have any questions etc
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Old 04-10-2010, 11:02 PM   #9
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Default Re: Opening a PC Shop

Quote:
Originally Posted by Lowndsey View Post
Who is going to lend an 18 year old with no job 50 grand? If you are really serious about it I would advise you to go to University and get a business degree or some business study a tafe first.
This is assuming by the time im 18 i'd have a fair amount as a deposit,my HSC and CompTIA A+ and an OK Job.


Quote:
I think it would be strongly advised you started online first before a physical shop, plus if you have like a year or so of running a shop online the lenders might be more likely to give a big loan of 50k. also I think you shoudl only have a loan for one year to see how things go, because if it really fails in first year youve got 5 years worth of loan just sititng there
I've run my Repair business for about 3 years and so far everythings been ok except the lack of business. Though hopefully i'll have my license by next week so theres a good oppurtunity to do some advertising and expand my customer base.

Quote:
how much clientele do you have now if any?
I know in the US we have the SBA (small business association) do you guys have anything like that in Australia?
What type of competition do you have around you?
Are you investing anything upfront or is this loan covering everything?
Do you have a business plan?
How do you plan on keeping your books?
Are you going to have parts on hand (inventory) or is there going to be a wait period for every customer who needs repair?
1. About 10 Regular Customers,the rest just come and go.

2. Unsure.

3. Plenty Unfourtunetly

4. Unsure are this stage

5. Halfway there

6. I Have some accountant friends who said they'd swap there services for mine

7. Yes i'd have stock on hand as i'd like to also sell computer parts because there are NO PC Stores within a half an hour of here that do,that migt give me an 'edge' so to speak.
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Old 04-12-2010, 11:13 AM   #10
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Default Re: Opening a PC Shop

1, 10? not really enough to start a business on, but probably at least a good amount for your bread and butter business...

2, find out, if you can get a 50k loan from a business alliance, or a startup fund from the government the repayments will be considerably lower, and you'll find that they'll offer advice as well.

3, that's a trouble then, no offence but when a lot of people open the door to find an 18 year old sitting there, they may just walk back out again.

4, you'll really need to get a bit of a concrete idea on this, and when you are buying stock, try to buy as little volatile stock as possible.

for example, when you build a PC, buy the cases, monitors/keyboards etc, (things that don't really go out of date), then you can sell people on how their system will look, when they've placed and order and left their deposit buy the components so that you don't have expensive stock depreciating in your back rooms until it's just too old to be bothering about.

5, cool, keep going, be as pessimistic as possible, -it'd be better to plan for the worst and be pleasantly surprised. than it would to convince yourself you'll definitely get ten customers a day, who'll definitely buy stuff, and you'd definitely have enough time to still do house calls bringing even more money.

6, bad idea, learn how to do it yourself, don't trade services, certainly not as a long term basis.

you'll be getting his services what once a year when it come around to fill in a tax return, he'll be asking for your help every time he's visited some spy-ware infected virus riddled porn site on his ageing business machine that he bought cheap ten years ago and really honestly should have replaced five years ago, that he's trying to run a pirated copy of XP on, that he got from limewire or something... even if the guy isn't a fool PCs break more than once a year, so the deal isn't fair on you.
just learn how to do the taxes, all the information you'll need is published on line and you can make a decent spreadsheet to do it all for you.
you won't need an accountant, unless you;re trying to get everything past the tax man that you possibly can. and whilst this is tempting, it's probably going to be more hassle than it's worth.

7, there is a reason that the other stores don't sell stock. it's cheaper online,
find the cheapest store that you can. buy some RAM.
now you can't let that RAM out the door without putting a markup on it, because you've had to pay for your time taken to order it, and the shipping costs. so unless you want to loose either your time, your money or your costs related to time money and storage space... you'll always be more expensive than the on line suppliers.

on top of that, you'll be buying components that depreciate...

if you manage to order the exact right stuff at the exact right time and get stock out the door within a week then cool...
if you've got stock sitting on a shelf for half a year, you might have paif $1000 for it, and it might only be worth $800 now. you'll be spending money to store stuff, because your premises will need to be big enough to have a store room. your insurance will be higher as you have to insure all the stuff too... on top of that, everyday that passes that you don't sell the parts, they decrease in value until you end up paying a waste contractor to take away a load of PC boards that you can't even ut in a bin because their full of heavy metals.


I looked, (quite a few years ago) into going into business with a friend and buying an established PC business.
when we crunched the numbers we figured that the only way it'd work is if we offered added value services, that's to say if we were THE computer centre to go to.
if we could fix machines the fastest, resell software on almost every sale, (virus scanners etc). and have a guarentted few customers through the door every day then we might make enough to pay for the premesis.

if we offered an internet cafe service, so people could come in off the street and pay to use the internet, whilst having a coffee. (so we'd be getting money for that too). -then we might make enough to pay the utility bills as well.
if we could work with other people to attract business in, (so people could establish a relationship with us by getting their websites made there), if we offered business support like taking care of their servers on their sites.

then we might be able to pay ourselves too!

most of that stuff was reliant on us being able to make links with businesses, something we weren't sure that we could do. or offering so much in the way of service we'd have needed to start being employers straight off the bat whilst still trying to pay back start up loans..


not that I'm trying to put you off the idea of opening a shop, but you could try working from home as a mobile repair person first, try to form some business links and get a good contract.

if you can go to a few local small business and offer them a support contract, where you'll come and fix their machines at a reduced rate for time and materials assuming that they pay a small monthly service charge...


really, I guess what I'm saying is that the thing to do, before you get into a 50k hole is to try to raise the money yourself!

see if you can work from home as a 'mobile PC mechanic' for a year, if you can't make 10k in that year then you wouldn't have made the 30k that you'd need to keep a shop, and pay yourself (before buying any stock!).
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