How to Open a Computer Business

Wednesday, March 13, 2013

How to Open a Computer Business

Many people who encounter problems with their computer hardware, software or network don't know how to solve them. Starting your own computer support or repair business in an area with a high concentration of computer users can be very lucrative.

Instructions

1.Decide what specific computer services your business will offer. Consider if you will only offer particular options or if you will go for the entire range of services, such as building computers to a client's specifications, upgrading existing computers with new components, providing computer support and troubleshooting (which would include virus removal or finding) and repairing faulty parts, installing updates, setting up e-mail spam filters and offering networking assistance.

2.Purchase equipment for troubleshooting computer problems, including extra monitors, keyboards, power cords and routers. Buy several of each as your customers probably will bring in their personal computers without any peripherals or cables. Order multiple copies of virus and spyware removal software, such as Norton Antivirus or Spybot Search and Destroy, so that you can handle virus issues. Buy an electronic millimeter to check for electrical problems within computer components, and purchase supplies for cutting and repairing Cat-5 Ethernet cables if you will be offering network help.

3.Contact a representative with a wholesale computer supply company such as "CPU4U" (see Resources below) or an established computer company such as Dell that sells wholesale to smaller retailers to order large quantities of computer components if you plan to build computers. Purchase enough basic parts for a large supply of cases, processors, motherboards, power supplies, and popular extra peripherals, such as external USB hard drives. Order multiple copies of the latest Windows operating system directly from Microsoft or a certified retailer to get a bulk discount.

4.Check with online discount retailers, such as Newegg (see Resources below) or Tiger Direct.com, for specialty parts that customers will want in higher end computer builds, such as expensive graphic cards or large speaker systems.

5.Stay updated on the latest operating systems and hardware to remain competitive. Read computer and networking periodicals, such as "Computer Power User," "Smart Computing," or "Network Computing."

6.Contact other computer-related businesses in the area and ask if they would be interested in joining forces to offer a wider range of services. Approach software retailers, network support specialists or office supply companies about combining business ideas.

7.Contact a technical college or online institute that offers classes involving computer or networking support. Earn at least one certification, such as the "Comp TIA A+" certificate (see Resources below) or something equivalent, to get a solid grasp of how computer systems are designed, built and repaired. Get additional certifications such as a Cisco CCNA (visit Cisco.com) if you are planning on offering network support .

8.Create a strong marketing strategy before you officially open your business. Consider television, Internet, newspaper, billboard and word-of-mouth advertising.

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Easy Tips and Ideas to Start Business

Although anyone can start a business, many people fail because of a bad product or improper research. If you want to start your own business, you can improve your chances for success before you even begin. In order to make your business successful, start strong and make sure that your idea will hold out for the long haul.

Have a Good Product

Ensure that you plan to sell something useful. Although you may think that your product is important or special, that doesn't mean the general public will agree. Ask friends, family and strangers what they think of your product. If they don't seem that interested, ask them why. With their suggestions, you can either improve the product or scrap the idea completely. According to Brad Sugars of Entrepreneur magazine, most small businesses fail because they sold a product that didn't have an adequate market. This also applies to small businesses that provide a service. A lawn-care business might be useful for part of the year in a northern state, but it is in-demand year-round in the south. Consider whether people will actually want to use your service and get constructive advice from those not afraid to give their opinion.

Research Local Businesses

Research local companies before starting up your own business. This will not only give you an idea of the amount of competition you will have, but it will also help you price your product or service. If you're looking to start a wedding photography business, you may find during your research that the market is over-saturated in your area. If not over-saturated, you should contact each business and ask them for a price list. Alter your prices so you can stay competitive with the competition in town. Researching similar local businesses will also help you decide where to locate your business location. Try not to start up a store or office close to another business of your type. If your small business is located away from similar business types, this will cause locals to choose you over businesses that are farther away from where they live.

Get Professional Advice

You may know someone who has started their own successful business. Ask him for advice and listen to his stories of how he started his company. You may gain useful advice on the good and bad ways to start a business. Local entrepreneurs can also introduce you to local product providers or advertisers that you may not have met without their help. Accept any advice with open arms, especially if the advice is coming from someone successful in the area.

How to Calculate Business Start Up Costs

Starting a business in no easy endeavor. It takes a great deal of research, perseverance and hard work. While sweat equity will make your small business more successful, you will most likely need real capital to get the business started. Before you start raising capital and/or investing your own funds, the first thing you need to do is determine the total start-up costs.

Step 1

Determine your costs of sales. For most small businesses this means inventory, the cost of raw materials, manufacturing equipment, shipping, packaging, and warehousing. However, not all businesses sell products. In this case, the cost of sales is primarily the direct labor involved in making the sale. For example, to open a small shoe business entails purchasing enough inventory ($10,000) to stock the store.

Step 2

Determine professional fees. Planning your business structure, i.e., limited liability corporation or general partnership, means hiring an attorney. There may also be the need to pay an attorney for help with establishing trademarks, copyrights, and patents. In this scenario, that puts total professional fees at an estimated $20,000.

Step 3

Determine technology costs. Technology can greatly reduce the cost of labor for small business if used effectively. Most small businesses require computers, printers, cell phones, website development, Internet access, software applications, information security, data storage, and outsourced information technology (IT) consulting. If the cost of technology is $10,000 to start, add an additional $5,000 a year for maintenance (hint: maintenance is not included in start-up costs).

Step 4

Determine administrative costs. This varies with business types and may include items such as business insurance, office supplies, product packaging, parking, rent, express shipping, desks, chairs, fax machines, phones, or anything else necessary to operate the business daily. A good estimate for start-up administrative costs would be $5,000 for the first six months.

Step 5

Determine initial sales and marketing costs. Now that you have your product, you need to let folks know about it. Sales and marketing costs generally include marketing materials for presentations, printing stationery, business cards, advertising, trade show events, and public relations. These initial sales and marketing costs can add up to $3,000.

Step 6

Determine the wages and benefits needed to secure a staff. This includes employee salaries, benefits, workers compensation, and payroll taxes. Let's put the cost of wages and benefits estimated at $20,000 for the first three months of business.

Step 7

Add all costs associated with starting the business for a total. Be sure to only include business start-up costs that will be incurred in the first three to six months of operations. For this example, the calculation is: $10,000 + $20,000 + $10,000 + $5,000 + $3,000 + $20,000 = $68,000.

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Wednesday, March 13, 2013