Your Opinions Do Matter!

[Spawn]

I am a tech that is looking into opening a local office.

I have all the necessary training and education concerning local Network Administration, Computer Training, and System Administration concerned with a Computer Service business.


I may not have the funds at this very moment, but I do have interested clients willing to invest up to $250k of funding for their share of the profits. This is quite ou***anding to me personally, but at this very moment, I only have myself to run such an office.

I will be researching the debt involved with opening such an office this week, but I suspect around $2k will be sufficient to start such an endeavor.

The good things are:· One local competitor and very little non-local competition

· I have a niche that even involves eBay sales. Absolutely no competition at all, and I, among others, believe this idea will sell like hotcakes across the nation (US)

· I’m a very capable network technician; however, I do not have any certifications or a degree. Even though I’m five classes from obtaining three separate degrees, and my education consist of 450+ semester hours of education and training. Adding that I was also a HP Partner and a HP Technician, and can be again if I desire to do so
All I lack is the personal capital, but it is attainable right now within my own family. I do not want to include others in my endeavor, but I will if I must.

What are your thoughts and opinions concerning this endeavor? Should I open such an office? :shocked:

[mylanta]

Spawn,
I know we have a bunch of techs here who probably have shops, but I work out of my home with simple ads in a local Merchandiser (Pennysaver) in the classified section...nothing fancy and I started doing it while I owned and managed another business. For all the ads I have tried nothing is more effective then satisfying a client...when I take a pc out, I leave them 5 business cards which is something I started doing a few years ago because I felt I should leave something since I take something...I always tell them their job is to give out the 4 before I come back in 2-3 days and they always do. I have thus networked many calls from within the same group.
I use an eBay approach to replacing their machines which is also unique and I will not disclose on a public forum but would trade ideas galdly through PM or email with any of you here.
Opening a business and I have owned many, in this category I would have starved to death even though I doubt I have any competition left. I believe the few have recently all gone out of business so my website has finally started to pull folks in. Yellow pages are expensive and in our area we have 3...there is almost no one doing all 3 and I decided to do none and put faith in website. Am I "screamingly" successful, no, but this is my 2nd year and first where I am nearly full time. My overhead is a few hard drives,ethernet cards, modems and various hardware, and some software.
I built my credit as a sub account of old unrelated business so I have both LC and a wholesale distributor with somewhat unlimited credit.
If I were you, I would find a way to start while doing something else so you don't have the pressure of time. My background is really no IT, limited pc courses which were of no help and I am totally self taught. I once knew some really talented and innovative techs is about as close as I come....

[Dan18960]

Spawn,

One of the first questions I ask a tech is "Do you have a network in your home?". A "no" answer ends the interview! Why? Because I want someone who is in LOVE with computers, networking, and innovation. Someone who went to classes, got some certs, and has A computer - is looking for the money tree.

This business has NO money tree. It has opportunity, it has potential, and it has rewards! Unfortunately, the reward is NOT wealth! It is self satisfaction.

One mistake I made in my first company was thinking I could do it all. Accounting, purchasing, insurances, sells, service, and training! Well, when "we" started our current company in '98, I "hired" the boss. I don't have any of the owner liabilities - my name is on the employee list ONLY. The "rewards" I have - knowing I will get a paycheck every payday, getting to have exposure to the latest and greatest technology, and working 24 hours a day!

You state that you have investment capital of $250k, we started out with ONLY $25k. We passed the dreaded 5 year limit and have continued to advance, acquire new clients, and retain residual income with existing clients.

The only thing I can say is Good Fortunate on your endeavors.

[Guest117]

Once you get into the business, how to stay in the business.
Computer Repair (http://www.jrwhipple.com/repairs.html)
Take heed to the advice in this link.
Be fair. Be honest. Be nice. Be willing to go a little extra.
There are many crooks in any specialized field:
Auto Mechanics
Computer Repair
Used/New Car Dealers
Lawyers
Oh, I could go on and on but you get the picture.
Good Reputation is invaluable.
I had to eat my profits at times because my inability to fix a problem
in the most timely manner is not my customers fault.
It's not a piece of cake.
Like auto mechanics, you work on the front end and the back end falls out.
Of course you are blamed for this mishap.
Stocking levels are critical. With things changing every day, it's hard to keep up.
Here is the best, and funniest, labor chart I have ever run across:
Labor......................$45/hr
If you watch............$75/hr
If you help...............$100/hr
If you laugh.............$125/hr

Good luck.:cool:

[PeteF]

I am a tech that is looking into opening a local office.

I have all the necessary training and education concerning local Network Administration, Computer Training, and System Administration concerned with a Computer Service business.


I'm not exactly sure what kind of business you are talking about
but you have to consider where your customers will come from and
if opening a "storefront" is really required. I work out of my home
and started small. Most of my jobs are onsite so very few customers
come to my place. I mostly pickup and deliver. Do you require people
to come to your place of business? Can you work from your home?
What it the zoning of your residence?

You said "Computer Service business" above so I'll assume you want
to repair and service computers. Knowing the technical aspects is
only half of what's required if you start small and do most of business
related tasks yourself. Answering phones, taking orders, creating
your business accounting systems, bookkeping, etc, etc.

My advice is to start small and build from there. At first you will
wear all hats and you will need to do lots of reading & research
about how to operate a business. As you get more sucessful you
can hire others and begin to delegate some of the work.

If you plan to start big and hire people to do things like answer
phones, bookkeeping, etc, etc, then you are going to require
a lot more money to begin and the risk becomes much greater.
You better know what you are doing as far as operating a
business when you take this approach. Also, have one year's
worth of funds saved up to pay all your personal bills because
the business profits will NOT likely be sufficient the first year or
so. Starting big is so much more risky than starting small and
knowing the technical aspects is only half (or less) of what's
required at the beginning. After a business is all setup and
running smoothly, then the technical know comes more to
the forefront.

---pete---

[Spawn]

Thank You for your responses! I do appreciate them all.

To clarify, I've been in business for years now mainly fixing home computers. I've had contracts for rollouts, IP implementations, and domain changes over a range of network configurations (LAN/WAN/VPN/NAT/Token Ring). Integrating workstations, laptops, servers, POS terminals, network printers, scales, scanners, and card readers. These networks comprised of 5 - 2000+ users ranging from health services providers, to paper mills.

I have a very good reputation, and people tend to consider me very knowledgeable concerning computer repair and network administration.

The issue: I was working out of a friend's convenience store, and that store was sold recently. Now I'm working out of my home, and local businesses frown on a professional technician working from home. They insist I need to have an office. As far as Home users are concerned, they don’t mind that I work from home, but I have lost a few since the sale. I do the occasional pick-up, but mainly on-site work.

Adding, this area is very "clannish." Not meaning KKK or anything of that nature... LoL Please believe me when I say I’ve tried landing local contracts from home. No one takes my gestures seriously without having an office; furthermore, I have all the necessary marketing content.

At this point, I guess there’s only one true question remaining. What the hell am I waiting for? LoL

To answer that, this is one very difficult endeavor for a single person. To be capable of staying on top of technology, accounting, and marketing is difficult enough, much less to run a solitary office.

I thought a partner, which is much more business management savvy than me, would be joining in this endeavor. He has backed out; thus, I’m on my own once again.

I’m seeking neither riches, nor personal gratification. All I seek is the ability to pay the bills, have a decent place to live, a decent automobile, and some type of retirement package. On the other hand, I Am Not A Good Employee! I despise the limitations of employment, especially in an At Will Employment state.

Other than those issues, I’m confident in my aptitude and ability. I also have the motivation to succeed, and I will be researching the overall expense of opening an office this week.

I believe it’s time for me to take that next step. Success will never happen if I wait for it! I believe one must exert great effort to be successful!

Questions or Comments are welcomed as always!

[mylanta]

I’m seeking neither riches, nor personal gratification. All I seek is the ability to pay the bills, have a decent place to live, a decent automobile, and some type of retirement package. On the other hand, I Am Not A Good Employee! I despise the limitations of employment, especially in an At Will Employment state.


Ok I see where you are coming from, but I have a problem believeing that any account worth having seems to need you to have business overhead and expense, to either hire you or stay with you. That would be really foolish because if you are the business, they expect you to have an overhead few have, and then they will balk at the prices you have to charge to support such a thing, never mind employees to hire, taxes to pay...if your above statement is true, why add in all those expenses to most likely break even and have no different income because of it. That to me is "classic wheel spinning", and is why most businesses fail. The beauty of pc repair business is low overhead and you want to change all that?

[Spawn]

That to me is "classic wheel spinning", and is why most businesses fail. The beauty of pc repair business is low overhead and you want to change all that?
What exactly are you inferring from my post?

I simply want people's opinion on whether or not I should open an Office! This has nothing to do with changing anything other than my location of operations.

In order for me to land contracts such as the Sheriff Department, the court house, and other local government accounts, I'm basically required to open an office DOWNTOWN... That does not included several private businesses that have rejected my offers simply because I don't have an office downtown! It seems a HOME office is not sufficient for these people.

I basically stated this, but didn't come right out and say it! These people are strange!

[mylanta]

In order for me to land contracts such as the Sheriff Department, the court house, and other local government accounts, I'm basically required to open an office DOWNTOWN... That does not included several private businesses that have rejected my offers simply because I don't have an office downtown! It seems a HOME office is not sufficient for these people.

I basically stated this, but didn't come right out and say it! These people are strange


Ok if there is a written requirement to have an office by a goverment division , then you have no choice. Do you mean to tell me though if you had an office in your home with a private entrance, this would be no good either? An other business saying that to me would be highly suspect of a "cop out" though frankly.

My other point was if you are certain you will make enough money to support all this overhead, then go for it. Personally i would not be interested in any contract that would want my services, but force a change of my business plan thaT has been successful.

[PeteF]

My other point was if you are certain you will make enough money to support all this overhead, then go for it.

I agree, it's a matter of estimating the increased business and comparing
the projected profits against the additional overhead. Another thing to
consider is if the location of the office will bring in new customers off
the street. That would go towards increased profits to justify the
additional overhead.

Then if you have a "storefront" will all your business be by appointment
only or will you be open for business during certain hours? If open for
certain hours, you may need to hire someone to keep the doors open
while you are out on service calls.

---pete---

[mylanta]

Another thing to consider is if the location of the office will bring in new customers off the street.

And again the better the location or should I say the more highly visible and accessible the location, the higher the cost. Of course this works to decrease advertising costs as well.







Then if you have a "storefront" will all your business be by appointment
only or will you be open for business during certain hours? If open for
certain hours, you may need to hire someone to keep the doors open
while you are out on service calls.


This is the killer...salaries, payroll, payroll taxes of 15%, unemployment is as high as 10% in some states now for beginning rate....better off renting in a building that offers secretarial services and/or community reception because the first part of this paragraph, is where the costs make most businesses fail and why you need a minimum 6 month capital to pay every bill to survive. And that doesn't mention costs of advertising and the like to hire the help that polishes their nails when you aren't around....
Years ago I ended a business consulting business because of all the above. The business was great but the office was an enigma. I never lost a single client by closing the office and substituting an answering machine for 3 office workers and an office and the truth is I was hoping I would lose some.
When you sell a client, you sell them you, not an office. If they have their doubts let them check your credit or give them other business references to check. If they don't want to do that, they aren't worth having and you will probably wait to be paid for 90 days as it takes 6 signatures to sign a check for those people, and there is one guy always on vacation. oh and government is the worst payer to and would be my last choice for clients.
They will agree to any price for your services because by the time they pay you, you won't remember they owe you anyway.
When I had my clothing store, I had to stop taking all forms of government clothing vouchers because I couldn't collect the money!
but if I was one day late on sales tax, $145 fine + fees in Pennsylvania.

I guess my main point to was if you are happy with how you are doing and are not in it for the money, then why jump in and muddy the water!

[kern]

I've been in business for years now mainly fixing home computers....I have a very good reputation, and people tend to consider me very knowledgeable concerning computer repair and network administration.

The issue: I was working out of a friend's convenience store, and that store was sold recently. Now I'm working out of my home, and local businesses frown on a professional technician working from home.
As far as Home users are concerned, they don’t mind that I work from home, but I have lost a few since the sale. I do the occasional pick-up, but mainly on-site work.
...I’ve tried landing local contracts from home. No one takes my gestures seriously without having an office; furthermore, I have all the necessary marketing content.
...this is one very difficult endeavor for a single person. To be capable of staying on top of technology, accounting, and marketing is difficult enough, much less to run a solitary office...I thought a partner, which is much more business management savvy than me, would be joining in this endeavor. He has backed out...

your setup sounds fairly successful as is. unless you are willing to delegate responsibility, keep your one man operation and continue to work from home. oh and I would pass on potential "clients" who dont take me seriously.

my 2 cents...

[Spawn]

Well everyone, here I am in the new downtown office. I got this office cheap as F**K. No expenses except Rent/Cell Phone/SkypeIn, and that's cheap as it can possibly be.

Now it's time to update my business cards and marketing docs...

I sure am glad this worked out... :D

Thanks to everyone for their feedback!!!

Vince

[mylanta]

Well everyone, here I am in the new downtown office. I got this office cheap as F**K. No expenses except Rent/Cell Phone/SkypeIn, and that's cheap as it can possibly be.

Now it's time to update my business cards and marketing docs...

I sure am glad this worked out... :D

Thanks to everyone for their feedback!!!

Vince

Well good luck and please let us know how many new accounts come from the office...I have to see this!

[Spawn]

Ok...
Week One is finally over, and I can report some progress.

I landed the local museum account after setting up a wireless network for the museum and Chamber of Commerce.

I trolled around town passing out business info to businesses and organizations. I ran out of material, but I'll print more this weekend...

Other than that, I've had no business calls. That's frustrating, but I will continue my efforts. Hopefully things will change once my ad starts running in the paper. :D

I'll keep you updated!!!

[mylanta]

That's great don't worry about 1 week...it will take months to establish what you want...