Starting out from home - How did you do it?

[Tech in SC]

Agreed, that was an excellent post. Thanks for sharing!

And Tech in SC... holy $#!t!!! Triplets? I have an 11 y/o stepson I failed to mention, but that's the only ace up my sleeve. You win. I can't even imagine dealing with that childarent ratio, especially that close toegether.

Your thoughts on CPAs and bartering have helped me decide to ping a few contacts and see what kind of rate can be negotiated, if not outright trade of services. Quickbooks is attractive, but your perspective made me realize that freeing up the time involved with maintaining my books is worth more to me than what a CPA may charge.

I'll probably end up getting insurance before I open shop. Starting out, I'm looking forward to the tax deductions more than any actual profit anyway, and I'm assuming that insurance would be a deductible expense.... hmm... assuming. Yet another reason to go with a CPA.

I also really like your idea about having drop off / pickup locations with other businesses. How has that been working out for you? I want to maintain my family's privacy (had a few encounters with the crazies myself), but at the same time I would have some concerns about the liability of having a 3rd party receive and handle the customer's equipment.

Thanks for the kind words (both of you).

I do still use QB for invoicing & estimates. I know it does way more than that but I simply don't need it. I believe heavily in the K.I.S.S. principle! There are probably better options out there for invoicing and estimates but I already have QB, I'm familiar with it, I like the reports & graphs I can generate from it and if I ever need to do more with it then its there. I don't have to go buy and learn something new. But if you want to keep costs down, there are certainly FREE software options for this (and about any other thing you'll need).

As for deductions... that stuff changes so fast that even CPAs can hardly keep up. There is just no way possible that I can or will know enough about the tax code to make sure I'm keeping as much of MY money as possible. That's my CPAs job... and his services ARE tax deductible

Insurance again is one of those things that is a gamble. I've ran with and without insurance for years at a time. I have never once used it or needed it. But I'm sure if I ever do... my rate will go through the roof or they will cancel my policy (legal ripoffs). Imagine if we sold extended warranties then told our clients that we will void the remainder of their warranty if they ever use it... no different IMO.

Lastly, using other businesses for drop off points is not something I've actively started yet. I got side tracked on another project recently so I had to shelf that until I get this new service off the ground. I have already approached 2 businesses and both are very interested. In fact, one of them has already started taking computers for me and I haven't even asked them to start yet. Someone else may have already tried this and have it all ironed out but I personally haven't seen or heard of any others doing this... especially in my area. My competition has 1 store front so if I can get several strategically located store fronts that sign onto this program it will really increase my visibility and profits. Keep in touch if you run with this idea... maybe we can brainstorm together and figure it out. Another thing to consider is giving your store fronts exclusivity or territory rights. You don't need 2 store fronts within 2 blocks. Also, if you have 20 places around a small town then you may be making good $$$ but chances are your locations aren't doing much individually so the benefit to them isn't that great. If there is little benefit to them, they will lose interest and stop providing their valuable real estate store space for your business. I also believe new businesses are easier to target because they want more foot traffic and its a draw for them plus it gives them a revenue stream at no "perceived" cost to them. A great location would be an office supply store or copier store or mailing center.

Ok... I'm rambling now... lol

 

[Encrypted Existence]

A great location would be an office supply store or copier store or mailing center.

My FTJ is at a shipping/mailing/copy center. My boss lets me take drop offs and advertise (sign on front door and hand out business cards) for no charge at all. I am the manager and have been with the store ever since he (my boss) bought the place. I am the only FT employee at the moment and I take care of all of the store's IT needs. We sure do get plenty of traffic through our store so I can attest that what you said above is indeed correct.

 

[MyTG]

I just started up by buying all the tools and hardware and software that I thought I might need. Just curious if there are problems with customers dropping off computers at locations other than your own business? For example the customer says the computer was damaged or missing parts after they dropped it off at the drop off location?

 

[Tech in SC]

I just started up by buying all the tools and hardware and software that I thought I might need. Just curious if there are problems with customers dropping off computers at locations other than your own business? For example the customer says the computer was damaged or missing parts after they dropped it off at the drop off location?

So far... no. But as I've posted... I've not really officially launched this idea or ironed out all the details to protect and profit everyone involved.

One idea that pops into mind is making sure the paperwork the customer fills out has a place to describe the computer they are dropping off... have them, as well as the business contact, sign it & date it. Then when you get back to your office with the computer, call the customer (which you should do anyway) and verify what you have as well as verify that you understand what the problem with the PC is and the cost. Customers often tell me " the computer won't do anything ", which to me means it won't even power on. However, to a customer it means... it won't do what I want it to do. Rarely do they describe the problem well enough for me to know what they mean. So, after you're done with the repair, call the customer again letting them know it is repaired, the cost, when & where they can pick up their computer and AGAIN verify what you're dropping off. When you drop it off to the business have them sign off again that you are leaving what the paperwork states you're leaving. When the customer comes to pick it up they sign again showing they picked up what they dropped off.

It may sound like a lot but it is simply a paper trail of protection for everyone involved (especially you). In law enforcement they call this a "chain of custody" and that is exactly what you want! So if a customer calls with a problem, you have proof. I will say this... regardless of how well you protect yourself someone will try to get you. And regardless of how much you think someone is full of crap, try to help them resolve their problem. It will help you tremendously should it go to small claims court or they report you to the BBB, etc. Plus, IMO its just the professional thing to do.

 

[Mr.Mike]

@ Tech in SC: You might like to have a look at this thread regarding drop-off points.

 

[callthatgirl]

Looks like you got a lot of comments here, so I will just add on one last thing I learned early on.

Manage your expectations before they are burdens on yourself.

If you want a larger business, hire on as soon as you are feeling overworked. Even if you don't think you can afford it, you will make it.

If you want a smaller business, once you get your clientele to a level you can manage, figure out how to keep it that way, slow down your marketing, etc. My biggest failure in the past 5 years was not hiring someone in my 3rd year. I worked nights and weekends, about killed myself.

 

[dominexsus]

Plan your business start-up to fit your financing and skills. Don't spend all of your savings and mortgage your house in order to start on a grand scale. If you can't make it on a small scale first, committing tens of thousands of bugs to a fancy storefront or the best equipped training center in town isn't likely to help.

The infrastructure required to start a computer business is truly minimal. All of the industrial racking, test benches and office furniture you might see in an established competitor is a convenience, not a necessity.

 

[techpitt]

Manage your expectations before they are burdens on yourself.

Thanks for the advice, CTG. I've officially picked up my business license, and while I've not gone live yet, I already have an employee or two in mind in the event that business grows to exceed what I can handle alone. I'll definitely be thinking forward to that time and try to get a plan in place for when/if it comes.

I've read a few of your posts and really like your business model. I'm hoping to emulate aspects of it, particularly remote support. You'll know when things start picking up for me because you'll see my purchase of your e-books come through.

 

[techpitt]

Plan your business start-up to fit your financing and skills. Don't spend all of your savings and mortgage your house in order to start on a grand scale. If you can't make it on a small scale first, committing tens of thousands of bugs to a fancy storefront or the best equipped training center in town isn't likely to help.

The infrastructure required to start a computer business is truly minimal. All of the industrial racking, test benches and office furniture you might see in an established competitor is a convenience, not a necessity.

Good advice. Though I don't have any concerns about my skill, due to budget limitations I've tried to temper my expectations and start off on a small scale. So far I have resisted the temptation to throw money at the project where hard work, research, and simply making due would suffice. The work area I'm setting up in a spare room is starting off as two 6-ft folding tables, some shelving for storage, and the tools I already have (which is almost everything a tech could need with a few minor omissions I plan on rectifying as necessity demands). If profit ensues, I will reinvest and upgrade my facilities.

 

[RegEdit]

Yikes, yeah, I read that post the other day and it actually made me decide against hanging a business sign from my mailbox and inviting customers to drop off their PC's to avoid a travel/pickup fee.

Oh I NEVER allowed people to come to my home without an appointment set up in advance over the phone. So those 1 in 20 bad apples were pre-screened! I would NEVER advise having people come to your home without them calling first.

Aside from paranoid schizophrenic customers you're likely to encounter just plain neurotic people who you may want to yell at when they get out of line. I had a woman demand a refund after her PIRATED software wouldn't update on a brand new installation of Windows. Fortunately this argument took place over the phone. But deal with people in this business and you will eventually butt heads with someone.