How to Start a Computer Repair Business

Sunday, October 26, 2014

How to Start a Computer Repair Business

Want to know how to start a computer repair business? All small businesses use computers and depend on them to work consistently, predictably and dependably. However, it is not cost effective for most small businesses to have their own in-house IT department. Still, they need someone like a computer repair business to help keep their IT assets up and running, so they can stay competitive in the marketplace.

No matter what your business experience or level of technological expertise, you can start your own computer repair business. Those that love computers, technology and working with people find that running their own business is incredibly fulfilling and can bring them substantial revenue. All it takes is following some logical, plotted steps and planning very carefully how to start a computer repair business.

Personal and business computers have become commonplace. Knowledge of how to repair computers when things go wrong with them, however, is not as widespread. Starting a computer repair business allows you to make a living while providing a valuable service to businesses and private clients who cannot repair their PC problems on their own. Certification is not explicitly required to start a computer repair business, but it grants you credibility that can be difficult to attain otherwise.

The following 13 tips can help you figure out how to start a computer repair business:

Step 1

Determine the Characteristics of Your Ideal Clients. Before you start your own computer repair business, you need to figure out who you want to serve. Know who your ideal clients are and which characteristics they share. How large are their businesses? Which major business problems do they face? As you start to fine-tune your idea of the ideal computer repair business client also think about whether you are serving a niche and what your specialty is. Are your clients all in a specific industry or do they naturally all use the same specific software or hardware? Having a niche and a specialty can really help you with marketing and sales. You will position yourself to offer solutions that no other technology professionals in your area are offering and thus be even more indispensable to your clients.

Step 2

Know Your Strengths and Weaknesses. As you figure out how to start a computer repair business, you need to know your own strengths and weaknesses. You might have a very strong technical background but are not very business savvy. In order to succeed, you need to have a good balance of business, technical and also strong social skills, so you can best respond to the needs of your clients and build long-term relationships with them. Make sure you take the time to go outside your comfort zone and work on honing skills that come less readily to you than others.

Step 3

Set Your Rates Right from the Beginning. When you run your own computer repair business, time is money. You cant afford to set your rates too low in the beginning. Not only will you have to work incredibly hard just to make ends meet, but you will also have a hard time raising rates substantially once you've already started your business, without losing clients and compromising relationships and your reputation. To make sure you start your business using competitive rates, identify your local competitors and research what they are charging their clients and how their services compare to yours.

Step 4

Be Patient and Let Your Business Evolve Over Time. You cant expect to instantly get a full roster of clients and steady revenue for your business. When you are starting your computer repair business, you should expect it to take a while to get off the ground sometimes as much as 6 months or even a year. Why? A successful computer repair business is built on strong client relationships and relationships take time to evolve. You need to get prospects for your business that know, like and trust you in order for them to turn into steady, high-paying, long-term clients. Be patient and follow clear steps when qualifying clients and forging connections through marketing and networking events. And take each client carefully through the sales cycle. If you are diligent with your efforts, they will pay off in time.

Step 5

Remember that Marketing is Key. When you are just figuring out how to start a computer repair business, you're going to be wearing a lot of different hats. You will probably have to do the marketing, sales, administrative and all other tasks by yourself in the beginning. Establishing a well-crafted, diversified marketing plan that incorporates a lot of different targeted activities is the only way to build your business and make sure your sales funnel is fed. So this way, you can attract new clients on a regular basis and still have time to manage other elements of your business.

Step 6

Consider the repair services that you plan to provide. Decide whether you will offer general hardware repair and upgrade services, virus removal, data recovery, and other services. You should also consider the operating systems that you will be working with, as there are considerable differences between repairs on a computer running Windows XP or Windows 7 and computers running a Linux distribution or a version of Mac OS X.

Step 7

Take classes or other courses to prepare for certification tests in the areas you will specialize in. Examples of these certifications include the CompTIA A+ certification for computer hardware, Microsoft Certified Professional certification for working with Microsoft operating systems and programs and Certified Data Recovery Professional certification for data recovery work.

Step 8

Choose the type of customers that you would prefer to work with. Some computer repair businesses focus on helping business clients to manage their computers, while others are more focused on residential customers. Knowing your target customers beforehand will help you to target your advertising toward those customers.

Step 9

Research your competition to see how many other computer repair businesses target the same customer base in your area. Find out their rates, the services that they provide and the certifications that their technicians hold. Determine the rate that you will work for, making sure that it is competitive and reasonable for someone with your skill level and certifications.

Step 10

Apply for a business license and file a fictitious name or doing business as registration to allow you to work under the name of your business instead of your own name. Purchase a liability insurance policy to protect yourself from lawsuits in case a customer's computer is damaged while in your care.

Step 11

Advertise your business. Create a website with information on your services, rates, and certifications. Create fliers and take out ads in local newspapers and magazines. Offer discounts for first visits to encourage potential customers to come to you with their computer problems instead of your competition.

Step 12

Create a spreadsheet or database with customer information so that you can easily reference the past computer problems of repeat customers to try to find an underlying cause. Make notes about your customers so that you can more easily remember them if they return.

Step 13

Keep track of all of your income and expenses for tax purposes. File tax payments monthly or quarterly to avoid Internal Revenue Service fines for underpayment.

Things You Need:

Rent and Utilities
Stock Tools
Business Cards
Office Items
Web Hosting
Business Forms
Reserve Funds

Tip

Computer owners may worry about turning over their computers to individuals that they may not know given the personal information that is often stored on computers. Creating a privacy policy and informing customers of it may help to put their minds at ease.

Reference

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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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Sunday, October 26, 2014