[REQUEST] Looking for Advice as I start

[ynotech]

Greetings Nibblers,



My name is Tony and this will serve as a more in depth introduction to the forums and my current business plans. I submit these to you for critique and suggestions.



First, I want to state that I'm currently working full time in a factory (although only working 3 days a week) and hoping to grow my business on the side until it gets to the profit volume that allows me to quit my factory job. I'm also trying not to go into any debt getting off the ground. I am trying to only use money I make from the business to re-invest in the business. So far this has worked OK, but it makes marketing hard to do. Additionally, I have not got a business license or anything else of the sort. This is limiting me a bit because I'm unclear on what I can and can't do for advertising without it. I'd like to canvas door-to-door but I'm not sure if that could land me in hot water. I have been advertising on Kijiji (my area's Craigslist) and have gotten a few clients this way. I want to really ramp up moving forward and get this thing off the ground.



Almost all of the responses to my Kijiji post have been for tutoring/lesson type work. No one that has been interested in repairs have converted, but I've had two clients work with me for a year doing tutor-like things. Not really even tutoring, but just helping them do random things on a computer - set up a 50th High School Reunion, work on and market a get-rich-quick scheme… As long as they are paying I don't mind. I'm thinking that the tutoring side of things might be the way to get into the market here. It appears no one is doing it, while everyone has a guy for repairs (and let's face it, people aren't doing much repairs anymore). I hope to win over the clients with my tutoring and advice so they will come to trust me with repairs and MSP. MSP especially. I want this to be my bread and butter. With the low initial cost, I plan to start with Kabuto, unbranded so that there is literally no investment needed, and I can add that later on. I'm not sure about other components - backups? Remote Desktop? I've started using Mikogo (since it can be used commercially for free and all others cost more than I have atm), but I'm not super happy with it. You can see my current MSP offerings here, although I think I plan to up the prices a bit before i get clients on them.



I used to like the idea of opening a shop somewhere and working out of it, but more and more I don't feel that's the way to go. Working out of an office at home seems like a nicer solution. Less overhead, less stress, and more family time. I've got a nice Desk, but not much room for client machines, probably could only work on up to 2 at a time. I'm currently using Repair Shopr for tickets and invoices and Square for Credit Card payments.



Ultimately I have no idea what I'm doing on the actual running the business side legally. As I stated I don't have a business license. I don't have a GST Number, I haven't registered a business name. I've done nothing legit really. I'd like to, but I don't have the funds atm. Without going into debt, and I don't want to risk that in case it all blows up. I'm making a decent living at the factory and don't want to jeopardize it until I know I can do this long term. Starting a computer business is something I've wanted to do for a long time. Right out of High School I worked at Staples in the computer department, ended up running the Computer department and then being the in house technician. After 6 years I had to quit to find a job with more income to support my growing family. I should have started a business then, but I was scared and went for the factory job and it's relative security. Now I want out! I want to follow my dreams and feel fulfilled.



OK, please give me your thoughts and advice. Also, if there are any Albertans out there that could speak to the legal requirements I should be following that would be awesome!



-Tony ynottechservices.com

 

[GTP]

You can see my current MSP offerings here,

Sorry to be pedantic, but you need to tidy up the wording on the website. RE: "I will be offer 25% discounts" "and monitoring of your PC and Anti-Malware software built in." Doesn't make sense?
As for working from a home office, it's what I've done for almost 20 years. It's relaxed, I can offer my better clients a coffee when they call, small (business) overhead and the best thing is it's not far to go to work!

 

[ynotech]

Sorry to be pedantic

No need to apologize! That's why I posted. I've cleaned those up, thanks. Now, to find a way to proof read the rest of it. I'm really not good at that. Maybe it's time to recruit my wife!

 

[dgoglio]

I see you are in Canada. I don't know anything about doing business in Canada so I can't give you much advise about that other than to say do your research on how to start a business legally and get the PROPER INSURANCE. In the US we have tons of online resources from the States and the Federal Government on what you need to do to start a business legally.

The biggest part I noticed was your first paragraph. You are not going to get anywhere unless you invest some kind of money in your business for advertising. It is going to be like treading water. My saying is you have to spend money to make money. (Actually I am pretty sure there are a lot of people that say the but you can give me credit!) I started my business 11 years ago. I had a full-time job that paid ok. My boss was an a-hole and I finally had it. I had just had my first kid and was having family problems. My boss wasn't understanding and was giving me a hard time about not being able to work late, etc. At that time I was a single dad raising my daughter by myself. I cussed him out and walked out the door after filing a complaint with the HR dept. I used $5,000 I had in savings and dumped it into advertising. Eight months later I was making well into six figures. I have had my ups and downs since but if you are smart you figure it out. Sorry for the long story but I wanted you to see that I did it myself and am not just telling you to take the leap. If I were you I would figure out how to run a business, learn about bookkeeping or know someone who does. Save some money and then jump. You are not going to be able to grow that business by treading water.

Now to your MSP offerings. You pricing is too low. I am assuming that you are catering to residential clients and not businesses but it is too low. You give a 10% discount on your free tier, not a good idea. You should at least charge $5 per PC and then on your other packages add about $10-15 per PC to your current price. Unless you have hundreds and hundreds of clients you are never going to make money. Also, if you have an MSP offering you need to be available during normal business hours. Clients do not want to have to wait until you are off or two days after they put in your request.

You should also invest in a better website and make sure it looks good and makes sense.

 

[Markverhyden]

No need to apologize! That's why I posted. I've cleaned those up, thanks. Now, to find a way to proof read the rest of it. I'm really not good at that. Maybe it's time to recruit my wife!

Tony, never be afraid to recruit local talent!!!!

Your website, while giving many details, does not focus on a market. As in consumer vs business. So you might want to segment the site to address those different markets.

 

[ynotech]

The biggest part I noticed was your first paragraph.

I, too, am a strong believer in the quote, that I believe someone called dgoglio coined, "It takes money to make money." And it's not that I'm NOT spending money on this venture, it's just that we don't have money to invest. I don't have savings, so I'm trying to build this up as a way to make extra cash, eventually put some aside in savings and then drop the factory gig and go full time with this. I only work the factory Friday, Saturday and Sunday so I do have some time off during most business hours. As far as investing in the business, with the few clients I had last year, I did a little over $1k is sales and invested all but $50 back into the business. That's pretty much what I'll continue doing until I get a more steady revenue stream from it. I hope that makes sense. And believe me, I'd love to grab a business loan and just go for it all in, but I'm also a chicken and don't want to ruin my wife financially since she depends on me.

Now to your MSP offerings. You pricing is too low. I am assuming that you are catering to residential clients and not businesses but it is too low.

It is catered to residential. I know they are low. I was hoping that starting low would help build a client base and then I could slowly increase the rates. Do you think there is merit in that, or should I just up the prices from the get go?

You should also invest in a better website and make sure it looks good and makes sense.

Noted. And added to my future expense note (it's a large note)

 

[Archon Prime]

So, being in Canada, though I'm in Ontario, I can help you out with some of this stuff since I know how starting up is tricky and it's a lot of work.

First, stick with Kijiji for a bit. The problem with Kijiji is your going to get the real cheap customers. Some sketchy ones sometimes. However, I built up a lot of referrals just from Kijiji with 2-3 really good clients from there. I don't advertise anymore there because I know that most people on their are pizza techs and I don't want to be associated with them. I haven't had to go that route in over 7 years though now that I have my name out there.

Facebook. If you don't have a facebook page. Get one. Get a real website. Not to sound mean, but the current one makes babies cry. Merge them together with links to both. Setup a "Advertise your business" within your local area to get your name out. Spend maybe 20.00 on it over a course of 14 days. You might not get any bites, but some people still bookmark that stuff and you might hear from them later. Invite friends and have them share it with theirs. You'd be surprised how well this works.

Nobody likes door-to-door salesman. Trust me. I don't like being bothered when I'm sitting down to eat, and a lot of the time you will just get a bad rep from those who are annoyed with the attempt.

For the tutoring, stick with it. Make sure to give them some business cards and even showcase other things you offer as well. That way they know you have a broader range of services.

As for the shop, don't stress. Sure it's advantageous to have a store front, but then you have the overhead. I have a fully functional service centre in my basement, a desk, a bench with everything I need and I'm not worrying about additional rent/heat/hydro to pay for.

I understand the fear in starting a business from scratch with nothing else. I still work full time for a company and my business is a side thing but I do a lot for it. It works out in the end.

A Link I found for starting up in Alberta:

https://www.thebalance.com/business-registration-in-alberta-2947254

 

[ynotech]

First, stick with Kijiji for a bit.

It's pretty easy to re-run my ad, so I've been doing that. Not many bites to be honest, but it's free so I go for it.

Facebook. If you don't have a facebook page. Get one.

I've got a facebook, I'm working on growing and adding value to. You can check it out if you want at facebook.com/ynottechservices Let me know what you think. I've most of what you suggested for promoting with getting friends to like and share it. Up to 50 page likes so far, wait 51 just now. I'll be doing the local promotion either this week or next.

Nobody likes door-to-door salesman. Trust me.

We seem to have a lot of businesses that just drop off one page flyers in our mail box here. I thought about doing that, but since I just toss all of them, I thought a personal touch of actually chatting with the home owner would be better, but I get what you mean about hating when people show up. I generally don't like it either.

A Link I found for starting up in Alberta:

I will check this out, thanks.

 

[ynotech]

A Link I found for starting up in Alberta:

https://www.thebalance.com/business-registration-in-alberta-2947254

This is almost exactly the type of resource I've been looking for. I'll be checking out the rest of the site too, as it seems like a good one. Thanks!

 

[Archon Prime]

No problem. I've done the door-to-door thing when I was starting out. Some people are dicks, most don't care, most are nice about it but never goes anywhere. The pamphlet gets put in the garbage or lost. I did over 200 houses - 0 calls. out 20.00 for the prints. But it's good to try nonetheless.

 

[GTP]

When I moved from one state to another, I spent almost $5000 on flyers, glossy pamphlets, fridge magnets etc.
I spent two months trudging around the neighbourhood and surrounding suburbs doing a letterbox drop, knocking on doors, chatting to businesses etc.
I think I got 1 customer from the whole exercise!
Since then I have grown my business on honesty, trust and WORD OF MOUTH from satisfied customers!

 

[NJW]

Since then I have grown my business on honesty, trust and WORD OF MOUTH from satisfied customers!

This was key for me when I started. As you reach a tipping point of satisfied clients, it almost becomes self-sustaining.

Use the training stuff as your advertising as you appear to be able to do it (not everyone can). That could well be your best route to getting that essential core clientele.