Startup Questions

[Karl00]

I’m on the verge of starting a break/fix business, and I’m very serious about it. I have a few years managing other repair stores where we did very high volume repairs in-house on the regular doing computers, mobile devices, game consoles, etc. I know how to repair and make sales pretty well. I was always the one doing the bulk of sales and repairs, a large proportion. I have a good technician that has agreed to work for me if things get setup. I just haven’t handled the business side regarding lease, legal and business stuff, etc. I want a storefront, and I have about $35,000 saved up. I live pretty frugal and don’t have a lot of personal expenses and living cost here isn’t too high. I do not want to do this part-time or at home. How long would it take to setup a business considering I’m still working full-time?

Some questions I have.

1: Store layout--what are your ideas here regarding workspace, shelving, POS area, chairs, tables, etc.? Other places I’ve worked I feel a lot of space was wasted or setup pretty stupidly. I would like to have separate workspace for techs and would like to devote most of the store for workspace. I would like to base it on work efficiency.

2: Renovation--how much would this cost and time spent to do so? What would be ideal for flooring, walls, lightning, desks?

3: What would you consider acceptable regarding square footage? I’m thinking 1,000-2,000 square feet or so. Other places I’ve worked I always felt like I never had enough space for all devices being repaired. Computers take up a lot of space and can be done simultaneously. I feel like $30,000/yr or $2,500/mo would be the most I would want to spend on rent. Keep in mind the stores I managed were making $150,000-180,000/yr in revenue with about 70% gross margin. I always felt there was more room for improvement, but they just stuck to almost exclusively repairs.

4: What are some common mistakes for startup businesses? What is some general advice you could give? I keep reading others saying to get an Accountant.

5: What’s the point of business insurance? I always feel like insurance is a waste of money and just another expense.

6: How to handle payroll and taxes?

7: Finances: should I get a separate bank account, credit card, etc. with my business name?

8: Website design--I don’t know much about website design. I’ll probably start with a website builder and if I have time fiddle with it later.

9: I don't like paperwork. Getting signatures electronically would be nice. Some are doing this. I know some businesses scan their documents and throw away paperwork later.

10: What sequence should I go about in doing all this? Right now I’m just getting ideas and planning.

Thanks in advance for you help.

 

[MotzTech]

Sorry is this comes off as a bit brutal but I have a few major concerns with your plan.


1. I don’t see how you can take $35,000 and not only pay your personal expenses but afford to keep a technician paid along with everything else such as rent, utilities, taxes, professional fees, advertising, etc.

2. Having a storefront means you need to keep someone in the shop during normal hours…all the time, that’s going to cost you, big time.

3. You absolutely cannot look at an established businesses revenue and expect that you will make the same your first few years in business. It takes time to build a good reputation.

4. Business insurance is a no brainer; you can get a decent plan for like $500 a year. That’s peanuts compared to other expenses and can save your butt if you ever need it.

5. You ask if you should get a separate bank account etc, the answer is a most definite YES! I can't even put into words how important this is. Do NOT mix personal and business finances or you are just asking to lose EVERYTHING!

6. Regarding website design…don’t try to do it yourself if you don’t know what you are doing. There are budget options out there for getting a nice site put together. I think I spent $300 to have my first website built. Once we grew I invested in a nicer site. Don’t focus on things you don’t know how to do, that’s a great way to waste time and hence money.

7. Break/Fix is a dying business model; you need to figure out how to make recurring revenue if you are going to survive. Larger businesses have the volume to survive longer in this field, but rest assure, it is dying.



You should find your local score chapter and talk to them. The offer free business consulting from retired business people. They also know a LOT more about your local market conditions and can give advice we really can’t.

https://www.score.org

 

[Krynn72]

I’m on the verge of starting a break/fix business, and I’m very serious about it. I have a few years managing other repair stores where we did very high volume repairs in-house on the regular doing computers, mobile devices, game consoles, etc. I know how to repair and make sales pretty well. I was always the one doing the bulk of sales and repairs, a large proportion. I have a good technician that has agreed to work for me if things get setup. I just haven’t handled the business side regarding lease, legal and business stuff, etc. I want a storefront, and I have about $35,000 saved up. I live pretty frugal and don’t have a lot of personal expenses and living cost here isn’t too high. I do not want to do this part-time or at home. How long would it take to setup a business considering I’m still working full-time?

Some questions I have.

1: Store layout--what are your ideas here regarding workspace, shelving, POS area, chairs, tables, etc.? Other places I’ve worked I feel a lot of space was wasted or setup pretty stupidly. I would like to have separate workspace for techs and would like to devote most of the store for workspace. I would like to base it on work efficiency.

2: Renovation--how much would this cost and time spent to do so? What would be ideal for flooring, walls, lightning, desks?

3: What would you consider acceptable regarding square footage? I’m thinking 1,000-2,000 square feet or so. Other places I’ve worked I always felt like I never had enough space for all devices being repaired. Computers take up a lot of space and can be done simultaneously. I feel like $30,000/yr or $2,500/mo would be the most I would want to spend on rent. Keep in mind the stores I managed were making $150,000-180,000/yr in revenue with about 70% gross margin. I always felt there was more room for improvement, but they just stuck to almost exclusively repairs.

4: What are some common mistakes for startup businesses? What is some general advice you could give? I keep reading others saying to get an Accountant.

5: What’s the point of business insurance? I always feel like insurance is a waste of money and just another expense.

6: How to handle payroll and taxes?

7: Finances: should I get a separate bank account, credit card, etc. with my business name?

8: Website design--I don’t know much about website design. I’ll probably start with a website builder and if I have time fiddle with it later.

9: I don't like paperwork. Getting signatures electronically would be nice. Some are doing this. I know some businesses scan their documents and throw away paperwork later.

10: What sequence should I go about in doing all this? Right now I’m just getting ideas and planning.

Thanks in advance for you help.

I'm just starting out too, and working from home, but I've looked into this a lot and have read a lot of advice here on the TN forums as well, and can relay some of the info I learned.

1. This should be something you improve over time. Its not something you can afford to think about right now. You may want to set a financial "alert" that once you hit a certain amount of revenue you rethink this. Right now I'd say make a small customer reception area and put up a wall to hide the rest of the shop. Make the front nice looking, let the back be barebones with just workbenches and shelves to hold stuff. You'll know what you want after the business has been established and you find yourself saying "man I wish we had a display case over here" and stuff like that.

2. I never got this far into it. Couldn't help you with this.

3. I think you're about right. I was looking at spaces and about 1,000-2,500 sq ft seemed right. The bigger ones I figured I'd grow into as I moved into the later stages of my business plan.

4. Getting an accountant may be a good idea if you're going to hit the ground running. But you may be able to get away without for awhile, but I'd consult with a prospective accountant on how to do it yourself so you can set it up using industry standard procedures. That way when you do hire one, they can jump right in and make sense of it all. I have an uncle who has been an accountant for 40 years and he helped me start tracking things properly.

5. I would absolutely not jump into a full on shop without insurance. You lose someone's data through a mistake or negligence and they could sue you into oblivion. Likewise, you should become LLC before opening your doors. If you or your tech screw up hard, you don't want creditors coming after your personal money and assets.

6. Ask your accountant

7. Yes. Since you're going to be an LLC you probably have to anyways.

8. To start, I think its totally fine to DIY. Lots of us have. TechSiteBuilder is a popular one here, and lots of wordpress themes out there are pretty plug and play.

9. Look into Repairshopr, or PCRT (PC Repair Tracker). They're full CRM services and can take electronic signatures (at least I think PCRT can, I only know for sure that Repairshopr can though)

10. Talk to an accountant and a Lawyer first to iron out the legal status of it so the government can tax you properly and you can protect yourself. Then I guess find a location and set it up as best you can on a small budget. Advertise, take some customers, buy tools as you need them. You'll need to spend money to get started, and it will take awhile before the business pays for itself. But that $35k will go fast so use it as sparingly as possible.

I wouldn't even hire anybody until you can't handle how much work you're doing. It should be you and you alone in the shop from before opening until after closing until you've got literally more customers than you can serve.

 

[GTP]

What are some common mistakes for startup businesses? What is some general advice you could give?

Your biggest mistake is thinking that $35,000 will set you up. It takes years to build up your reputation and trusted clientèle. Forget making "$150,000-180,000/yr in revenue with about 70% gross margin." that's not going to happen for a long time.
Start out small, there's no shame in working from a home office. I've been doing it for twenty years.
I've seen many "computer repair/sales" shops in my area that open with balloons and sausage sizzles and are gone 6 months later with the place in bankruptcy. High flyers always crash land!
Do your homework for your demographic, talk to business owners in your area, take on board any and all suggestions.
Sorry to sound a bit "defeatist" but you really should be aware of the many pitfalls.
I do wish you luck and hope it all goes well for you!

 

[Markverhyden]

In addition to the great information above.

Your question number 10 should be your first question. Have you put together a business plan? People do not plan to fail, they fail to plan. This does not need to be an incredibly complicated document. But it is a living document. As an example just like OS versions. @Your PCMD put together a great template to start with.

When evaluating things like store fronts, etc it is imperative to put together pro-forma financial statements. Key to this is making several scenarios. Typical is 3, best case, middle of the road, and, most importantly, worst case which includes failure. Be brutally realistic with yourself.

Your list is comprehensive but, to be honest, most can only be answered by you. We can only give you ideas of various options.

Almost forgot to mention. There are many resources available to help you via the SBA and SCORE in the USA. I'm sure there are similar organizations in other countries.

 

[glennd]

What are some common mistakes for startup businesses?

Thinking they'll start turning a healthy profit right away. Most businesses fail in the first 5 years. The usual reason being insufficient funds to keep them afloat while the business grows. If you take into account everything you spend setting up the business and then the daily expenses you will most likely run at a loss for the first three years or so. Do you have enough cash put away to support you during that time?

 

[Karl00]

3. You absolutely cannot look at an established businesses revenue and expect that you will make the same your first few years in business. It takes time to build a good reputation.

I do not think profit will be a problem. That's the least of my worries. I replaced a manager at one store and tripled the store's revenue almost immediately. At another, I was making $11,000 the first full month for a startup company and then maintained an average $14,000-15,000/mo. These figures far exceeded labor, lease, and parts costs. With far more experience I have now than before, I'm not worried. If anything, I would expect more money than I made for other stores I managed.

7. Break/Fix is a dying business model; you need to figure out how to make recurring revenue if you are going to survive. Larger businesses have the volume to survive longer in this field, but rest assure, it is dying.

I foresee it dying for most businesses, because they can't adapt. Unfortunately, there's a lot of crap-shoot mobile repair shops out there. Bear in mind I've repaired thousands of phones and thousands of computers. I can do many repairs competitors can not do. When nobody in the area can solder phone/tablet charging ports, HDMI ports, remove glass without cracking it, etc. then I foresee even more and more money coming my way even more so when things become more difficult. I plan on expanding my skills, and I feel if I owned my own business then I would feel more motivated to do so.

Your biggest mistake is thinking that $35,000 will set you up. It takes years to build up your reputation and trusted clientèle. Forget making "$150,000-180,000/yr in revenue with about 70% gross margin." that's not going to happen for a long time.

That happened the very first year of me managing another startup business with less experience than I have now. I did that from scratch and under less than optimal conditions.

Have you put together a business plan? People do not plan to fail, they fail to plan.

I have not made a business plan, but I have certainly put a lot of thought into some of those points already considering I've managed a few stores. My questions would be the following:

Other than a business license, would any others be needed?
Which exit strategies exist? Before even starting one, I was considering the possibility of potentially selling the business. Whoever would buy it if they lack the skills, they wouldn't be as successful though. Question would be is to how to value a business for sale.

Thinking they'll start turning a healthy profit right away. Most businesses fail in the first 5 years. The usual reason being insufficient funds to keep them afloat while the business grows. If you take into account everything you spend setting up the business and then the daily expenses you will most likely run at a loss for the first three years or so. Do you have enough cash put away to support you during that time?

I was aware most business fail, and I can completely understand why after managing some. It's my opinion most fail due to bad management and staff. Considering past experiences, I have a hard time imagining losses would happen. At the same time, revenue should be flowing in. Realistically how high could expenses be: rent, insurance, marketing, labor, parts, tools, etc.? Is $35k not enough? It's my impression getting up to speed would be far more important than what one has initially saved. The one person I'm going to hire is considering possibly moving out of state. Paying them $2,000-2,500/mo doesn't seem like a lot. If that person leaves, then labor cost would then be zero.

 

[Computer Bloke]

What are some common mistakes for startup businesses?

Thinking they'll start turning a healthy profit right away.

I do not think profit will be a problem.

Oh, OK then. You have nothing to worry about. But please remember that if you can't keep your store open with the lights on and all bills paid while still housing and feeding yourself and your family even if you don't get a single customer for six months then you're probably undercapitalized. $35,000 seems awfully light.

I don't like paperwork.

That's going to be a problem. It's really not optional.

It's my opinion most fail due to bad management and staff.

Not overconfidence, lack of planning, poor cashflow and insufficient reserves? Or frivolous spending on things that don't bring in any return?

Or arguing with people who know what they're talking about and are genuinely trying to help?

I’m on the verge of starting a break/fix business, and I’m very serious about it.

I'm sorry, but I don't think you are being very serious about it. Please re-read some of the extremely good advice given by others above and see if it might possibly apply to you. I'm pretty sure it does.

And please remember that there's a huge difference between owning a business and managing one for somebody else, and an even bigger difference in the kinds of people who are good in each role. Anyone who's seen a multi-millionaire business owner coming in out of hours to clean the office windows will tell you that.

 

[Kitten Kong]

I do not think profit will be a problem. That's the least of my worries. I replaced a manager at one store and tripled the store's revenue almost immediately. At another, I was making $11,000 the first full month for a startup company and then maintained an average $14,000-15,000/mo. These figures far exceeded labor, lease, and parts costs. With far more experience I have now than before, I'm not worried. If anything, I would expect more money than I made for others.

I would say as well as the excellent advice given by members above, read, read, and read the forums.

I'm not wanting to drown your ideas here, but if you seriously think you will be making $10k plus in the first year or pr month, when you have only just opened up, you could seriously be delusional. It takes time to get clients, yet alone keeping your clients.

What will be your usp? Don't even think of it being lowest price around.

Read the story's of some members here. @NYJimbo is one which immediately springs to mind.

Jim had a store in New York. A well respected member here. Had his store for many a year, it was extremely profitable for him. He then closed it last year, as he could see the writing on the wall.

Read the articles. Digest them, and ask questions. Lots of questions.

Take the advice you are given. We have all been there from the start, so are aware of many of the pitfalls.

Your $35k, could be gone before you have even opened your doors, with rent, deposit, normal overheads, staff, tools, stock, advertising etc.

I do seriously wish you all the best.

 

[fencepost]

And by the way, "usp" is "Unique Selling Point" (or variations on that). Another option is "Unique value proposition." Basically, why should they come to you and not the other shmoe down the street who also has a new computer shop?

I also think you're looking at some of this from the wrong side - you're saying "how much space do I need?" when that's not an answerable question.

Key things that should be in your business plan before you sign for anything or even start looking for space:

• How many systems per day can I expect to get in to work on?
• How many systems will I be working at one time?
• How much space per system do I need?
• How much am I going to charge?
• How many "average" customers per day do I need to break even? Buy ramen?

The "vibe" I've gotten from your comments feels to me like a "startup" attitude more than a "lifestyle business" approach, and if I'm right on that then break/fix computer shops are not the place to be doing a startup. Even as a lifestyle business it's going to be hard unless you're catering to a specific market such as PC gamers or small businesses, and if you're doing that then you should consider your space appropriately for those. In fact, I'd recommend searching specifically for startup "lifestyle business" "ramen profitable" and do a little reading.

You should also be doing some business research on other computer businesses that are or have been in your area - if they're still there, can you get a feel for what kind of traffic they're getting? If they're gone, why? Don't automatically assume that you're smarter than whoever was running Computers XYZ that went under last year - if there's really enough unmet need in the area and has been for a while, why isn't it being met?

You should also look up posts by
@Mr. Ingram's Computer Repair & Shoppe because I think he's got a very similar setup to what you're looking at, but has been at it for a couple of years.

 

[tucsonpc]

I do not think profit will be a problem. That's the least of my worries. I replaced a manager at one store and tripled the store's revenue almost immediately. At another, I was making $11,000 the first full month for a startup company and then maintained an average $14,000-15,000/mo. These figures far exceeded labor, lease, and parts costs. With far more experience I have now than before, I'm not worried. If anything, I would expect more money than I made for other stores I managed.

With all due respect, fixing up a failing business is a WHOLE different game to starting one from scratch. The fact that they existed means they already had *some* name recognition which is hard to build from nothing.

I foresee it dying for most businesses, because they can't adapt. Unfortunately, there's a lot of crap-shoot mobile repair shops out there. Bear in mind I've repaired thousands of phones and thousands of computers. I can do many repairs competitors can not do. When nobody in the area can solder phone/tablet charging ports, HDMI ports, remove glass without cracking it, etc. then I foresee even more and more money coming my way even more so when things become more difficult. I plan on expanding my skills, and I feel if I owned my own business then I would feel more motivated to do so.

A niche skillset is a legup (your port soldering etc), but unless you plan on that being your focus market, I don't think you'll see much income from it. These days, most people seem to prefer to buy a whole new setup instead of paying to fix the old stuff. Break/fix is a dying market, largely due to this attitude I believe. And because break/fix is dying is the reason many techs are branching out (or switching completely) to managed services.

I have not made a business plan, but I have certainly put a lot of thought into some of those points already considering I've managed a few stores.

Do the plan. Put in writing. Have friends/peers read it. Just like writing that exam paper for college, you will focus on certain points and the mistakes (and there are mistakes) will be too blurry to see. Or additional things to consider that you didn't think of.

Other than a business license, would any others be needed?

Not all licences but: State/City licensure, an EIN, trademarks

It's my opinion most fail due to bad management and staff.

Nope. It contributes, but I'd group bad staff with the real killer: poor planning. https://www.caycon.com/what-kills-startups.php

Considering past experiences, I have a hard time imagining losses would happen. At the same time, revenue should be flowing in.

It's your duty as the business owner to imagine this. What if **** hits the fan and, a month or two after you open, your neighbor has a fire that spreads to your shop and now literally all of your equipment, files, etc are destroyed. Sure, it should be covered by insurance, but how are you going to continue bringing in revenue? And placate the inevitable ****** off client threatening to sue YOU because their machine is gone?

The one person I'm going to hire is considering possibly moving out of state. Paying them $2,000-2,500/mo doesn't seem like a lot. If that person leaves, then labor cost would then be zero.

If that person leaves, can you handle their workload? On top of your own? Without sacrificing quality? Or extending turnaround times?

 

[Mr. Ingram's Computer Repair & Shoppe]

1: Store layout--what are your ideas here regarding workspace, shelving, POS area, chairs, tables, etc.? Other places I’ve worked I feel a lot of space was wasted or setup pretty stupidly. I would like to have separate workspace for techs and would like to devote most of the store for workspace. I would like to base it on work efficiency.

Only spend your pretty pennies on things your customer can see:

• Front counter
• Display shelves/casing
• Lighting <- buy NICE lighting. (not bright, nice. (There is a difference))
• small soft fans/make air move. no one likes "dead" rooms
• You may also have to paint the walls/ hang photos/posters/TV screens with info.
• May also look at a thin carpet for the front, keeps everything from looking "hard".

In my back room I either got everything free from CraigsList. Or spent the LITTLEST possible

for shelving I bought the 4'x8' plywood sheets for like $10 and cut it into 4x 1'x8' shelves and just bought a few 2x2" and cut to height shelves. Yes. It looks like cheap garbage, but only I see it, and it works.

For my workbenches I did the same thing but with 2x4" legs.

Got all my chairs off craigslist for free.

For storage bins/part holders. Amazon/shipping boxes (you'll collect these fast as you buy parts). Just fold the flaps in to double thick the walls and they work GREAT for sorting cables to put on your cheapo shelves.

I penny pinch the (insert adult word here) out of the back room. because who cares what it looks like. as long as it works.

2: Renovation--how much would this cost and time spent to do so? What would be ideal for flooring, walls, lightning, desks?

I'm just answering as I read. Spend as little as possible for things the customer will never see.

3: What would you consider acceptable regarding square footage? I’m thinking 1,000-2,000 square feet or so. Other places I’ve worked I always felt like I never had enough space for all devices being repaired. Computers take up a lot of space and can be done simultaneously. I feel like $30,000/yr or $2,500/mo would be the most I would want to spend on rent. Keep in mind the stores I managed were making $150,000-180,000/yr in revenue with about 70% gross margin. I always felt there was more room for improvement, but they just stuck to almost exclusively repairs.

I have had 3 different locations:

first: 1,200 sq. ft.
Second: 240 sq. ft. (tried two stores)
Third: 600 sq. ft. (moved my first store)

One repair shouldn't need more than 4ft of table space. So if you have 3x 8' tables, you should be able to have 6 computers "on the workbench"

I actually have a shelf over my workbench about head height that I put all my laptops that are tuneups/virus removals. So I can stand up and see all my laptops are running, then sit back down and work on desktop/laptop hardware repair

To me $2,500 a month on rent would be bankruptcy in a matter of months.

Dont forget your other bills:
rent ($415)
water ($15)
sewage (free)
electricity ($74 this month)
gas (maybe)
phone/internet (don't you dare pay for tv, this is work, its a job, not a vacation.) ($140+tax for me)
insurance (sure its once a year, but you still have to have it.) ($500 a year for mine)
LLC/corp docs (it costs me like $200 a year to stay an LLC)
and if you have employees dont forget about all that crap. (I don't take money from my business)

4: What are some common mistakes for startup businesses? What is some general advice you could give? I keep reading others saying to get an Accountant.

My biggest mistake was spending to much money in the beginning. Make sure to leave yourself enough in the bank that you can survive an entire year without a single person walking into the door. (this allows you to buy things you would never imagine you'd need)

I had about 6 months of rent saved up when I opened. 1.5 years into it and I am finally not having to worry about money every day.

5: What’s the point of business insurance? I always feel like insurance is a waste of money and just another expense.

I have yet to use mine. $500 a year. Put $1,500 into it so far and have yet to use it. waste of money as of right now. YES. When an electrical fire starts and I burn 8 customer computers, I'll love it.

Also, I legally have to have business insurance... So there's that.

6: How to handle payroll and taxes?

Get an accountant. or find a business owner who does their own (and you can trust) and pay them $200 to let you sit and watch them one day and teach you the process.

But really. get an accountant.

7: Finances: should I get a separate bank account, credit card, etc. with my business name?

Yes. I got a business checking account with a card. makes life easy(ish) anything for the business goes on the business card. anything personal goes on my personal card.

I HIGHLY recommend getting a business account.

8: Website design--I don’t know much about website design. I’ll probably start with a website builder and if I have time fiddle with it later.

Make sure your business website matches your business cards, Facebook, Yelp, Google maps/search, flyers, in-store promo. Everything needs to go together. Do NOT expect your customers to put 2 and 2 together.

Just sit down one day and do it all yourself, shouldn't be more than $25 for the website builder/domain/hosting for a year. save yourself from those stupid $125 a month web advertisers that take care of all the social media sites and website hosting.

9: I don't like paperwork. Getting signatures electronically would be nice. Some are doing this. I know some businesses scan their documents and throw away paperwork later.

Who in the (insert adult word here) likes paperwork?
I keep physical copies in two different geo-locations in fireproof/floodproof safes. then I keep digital copies easier to access for use.
Honestly. keep those physical copies. It's not hard.

10: What sequence should I go about in doing all this? Right now I’m just getting ideas and planning.

get an accountant.
Form the LLC
Get the bank account. and put all the money you want the business to have in there.
get a physical location.
make sure to fill out any town forms you may need for the business/signage.
get insurance for that location.
build it out. (I 3D modeled the store first, so that everything fits PERFECTLY. I probably modeled my store over 30 hours.)
buy signs/business cards/flyers/newspaper ads/car stickers/shirts/advertise the (insert adult word here) out of your business.
open your doors for business.
???
Profit

~~~
Phew. That was a bit wordy... Sorry about that...

 

[GTP]

What’s the point of business insurance? I always feel like insurance is a waste of money and just another expense.

You wont think it's a waste when you accidentally leave that "HP Envy" on the roof of your car, or trip on a step while carrying that "Surface Pro" that your customer recently paid over $4000 dollars for!
Trust me! Been there done that!

 

[Briggsy]

Without sounding rude, you're sounding too overconfident - and also dismissive of the advice that you asked for. Those are two problems that are going to cause you issues from the beginning. You need to learn to walk before you try to run.

In addition, your simplistic response to the dying break/fix model has completely missed the point. The break/fix model isn't dying for any of the reasons you mentioned - it's dying because of people's needs changing as technology changes. 10 years ago, desktop computer repair work was becoming less and less as laptops became more popular with domestic customers due to their portability and size. Now, people are ditching those laptops in favour of tablets and mobile phones. 10 years ago, people needed a computer to browse the Internet, order online and send emails. Now, they can do all of that on their phone.

People that once had computers no.longer need / want them. You could be the best salesman in the world - but you can't get more computer work from being a great salesman if the work isn't out there because it's been replaced by a tablet.

Also, you may well have helped improve figures in the shops you managed - but that was in ano established shop that had already made a name for itself.

If it really was that easy, superbly performing ex managers of Walmart / Asda would be able to open a huge supermarket themselves and instantly have it competing with Walmart/Asda - but that's not going to happen though because an ex manager simply can't just start something like that overnight because he has no established name or reputation. He'd need to start small and build up.

Also, with no disrespect, I'm amazed that for someone so confident of starting a successful business, you've dismissed business insurance so easily.

Business insurance is a MUST if you want to take your business seriously. Accidents happen. Things that are beyond our control happen. Insurance is a necessity - unless you have a lot of money tucked away that you don't need should you want to pay up directly should someone sue you.

What if a faulty laptop charger electrocutes someone? That won't happen I hear you say. How do you know? Even brand new items can have manufacturing defects - but if you sold it, you're the one liable. **** happens - and you need to cover your ass for when it does.

 

[Karl00]

Oh, OK then. You have nothing to worry about. But please remember that if you can't keep your store open with the lights on and all bills paid while still housing and feeding yourself and your family even if you don't get a single customer for six months then you're probably undercapitalized. $35,000 seems awfully light.

I do not have family nor a significant other. Bringing up the possibility of zero customers within a six month time-frame is the most brain-dead thing mentioned in this entire thread of discussion considering I’ve managed three very successful stores in my time and currently managing two successful stores at present.

That's going to be a problem. It's really not optional.

Some businesses use eSignatures, not a problem. Anything to better organize and save time should be preferred.

Not overconfidence, lack of planning, poor cashflow and insufficient reserves? Or frivolous spending on things that don't bring in any return?

Or arguing with people who know what they're talking about and are genuinely trying to help?

Red herring galore... I bring up staff being one of the most important aspects of a business and you bring up that? There is planning. If $35,000 is not sufficient capital, then what is? How do you come to the conclusion of frivolous spending? Do you have a problem? Again you’ve made the most pointless posts and accusations here.

And please remember that there's a huge difference between owning a business and managing one for somebody else, and an even bigger difference in the kinds of people who are good in each role.

Why don’t you explain how there’s such a “huge” difference?

I'm not wanting to drown your ideas here, but if you seriously think you will be making $10k plus in the first year or pr month, when you have only just opened up, you could seriously be delusional. It takes time to get clients, yet alone keeping your clients.

I have already made $11k at a startup shop first full month when I had far less experience than I now do. I still remember the shop being butt naked: not a single device, chair, trashcan, or anything. I got it from butt naked to $11k under non ideal conditions. I never mentioned $10k was surely going to happen, so why are you saying that? Approaching or exceedingly that figure is certainly doable. This is far from delusional as it has already been done. Owner was shocked. I now manage two successful stores now, two not one. Now imagine the time devoted to one I own, and it’s not delusional.

What will be your usp? Don't even think of it being lowest price around.

My prices are in the middle-range, certainly not the lowest nor highest. Why do you bring up possibility or assume lowest price? Repair stores in my area are really garbage, and most are franchises. Not everybody goes by price. I’ve interacted with many customers that decided to get their repair by me despite higher price, because they got a much better impression. There are numerous services and repairs I can do that they cannot. I know this by interacting with customers and overhearing other stores' messups or inability of repairing something. Many of them only focus on phones or simple devices. I on the other hand offer a larger scope of repairs across many devices. I can microsolder while none of them can--there is a ton of profit to made soldering ports on phones as they very commonly go bad. Only one competitor I feel is of significance, but they do predominately computers and a private business that’s been around for 10+ years. They don’t do mobile repairs, and they don’t like doing them.

Key things that should be in your business plan before you sign for anything or even start looking for space:

• How many systems per day can I expect to get in to work on?
• How many systems will I be working at one time?
• How much space per system do I need?
• How much am I going to charge?
• How many "average" customers per day do I need to break even? Buy ramen?

• I could estimate these based at the stores I manage now. On average, we get about 5-7 devices daily. Devices to be worked on at one time varies a bit. Sometimes we’ll have a few such as three to up to 20 or so needing repaired--this excludes devices awaiting parts or devices pending approval from customers. Sometimes I can repair five a day or 10 a day or more. With a decent tech hired, certainly more can be done. It really depends on what comes in... some stuff is very simple and straightforward and some stuff can be a pain. I can’t imagine how busy it can potentially become. I’d say if there’s enough space for 20 computers, that should be okay. I already have all prices in mind. Breaking even would be rent+insurance+labor+parts+personal expenses+utilities+miscellaneous bills+some buffer, etc. I don’t eat ramen. I don’t eat garbage, but let's assume assume you do. I spend a lot on food and little on everything else. I tend to spend little on advertising/marketing. I always ask customers how they found out about us, and almost every time, it’s by friend/relative/other customer/drive-by anyway.

With all due respect, fixing up a failing business is a WHOLE different game to starting one from scratch. The fact that they existed means they already had *some* name recognition which is hard to build from nothing.

I already did both. It’s my opinion getting a new company running would be more ideal than a tarnished one with some bad reputation, but I guess that’s disputable based on the extent of reputation. Taking over as manager at a poorly managed shop, I saw some people will never come back. The one I did from scratch virtually had no recognition. Nobody ever heard of it at all.

Nope. It contributes, but I'd group bad staff with the real killer: poor planning. https://www.caycon.com/what-kills-startups.php

I cannot agree that planning is more important than staff. I am by no means saying planning is not important.

Let’s imagine two scenarios:

1. An owner coming up with the perfect plan with staff from the streets who are bums who can barely write and are dropouts in middle school.

2. An owner who is a complete imbecile with the perfect staff who can sell well, who are highly intelligent and technical, have a strong work ethic, organized, etc.

Good staff can think on their feet, adapt, and adjust accordingly. I don’t think I need to explain further.

If that person leaves, can you handle their workload? On top of your own? Without sacrificing quality? Or extending turnaround times?

I think I would be fine. If I had to work more to get things accomplished, I would do it. I would work 80 hours per week if needed. With them there at beginning, I could focus on ideas and improvements and other manager/owner duties.

Without sounding rude, you're sounding too overconfident - and also dismissive of the advice that you asked for. Those are two problems that are going to cause you issues from the beginning. You need to learn to walk before you try to run.

I repair phones and tablets. Yes, I am confident because what I’ve accomplished again and again. Too many responses in this thread are from those doubting me despite me managing stores very successfully multiple times. I actually sense bitterness in their posts for unknown reasons perhaps they’re failing or not faring as well I don’t know. I also sense many repair businesses potentially dying, but I see that as potential gain or revenue for me in a way. I’m fully aware screens exist for phones that cost more than the entire device--I’ve seen this many times. Data is very valuable--pictures, contacts, whatever. You can’t replace that with another device. Doing a phone repair in 15-20min and making $50-80 profit is pretty impressive. Soldering a charging port in 30min or less for $70 is pretty impressive. There’s a lot of problems doing mobile repair, and I’m fully aware and more so than most. A lot of times there's higher profit on computers, but they're fewer in numbers.

I welcome advise. I enjoyed Mr. Ingram’s post and found it useful. I’ll have to reread it when having more time. The constant doubting, delusion accusations, red herrings, putting words in my mouth, claims of working at a so-called “established” business makes everything I say or think invalid blah blah are all annoying and do nothing but distract from the real questions. Reread the bullcrap above. This is the same mentality from shitty parents who dis-merit anyone’s opinion/views who don’t own children on how to raise children.

If I was just a tech that departed from a company, that would be one thing. If I lacked experience in sales/repairs, that would be one thing. If I only focused on computer repair which I won’t, that would be one thing. If I had no money, that would be one thing. None of that applies. I didn’t manage one store but three and right now simultaneously two.

Also, you may well have helped improve figures in the shops you managed - but that was in ano established shop that had already made a name for itself.

I wouldn’t call a shop nobody ever heard of and that was brand new in a spot to be deemed established by any means.

If it really was that easy, superbly performing ex managers of Walmart / Asda would be able to open a huge supermarket themselves and instantly have it competing with Walmart/Asda - but that's not going to happen though because an ex manager simply can't just start something like that overnight because he has no established name or reputation. He'd need to start small and build up.

Comparing Walmart managers to a repair store manager doesn't seem reasonable. It’s a completely different animal. It’s a massive corporation. One stinking manager is not going to be getting the same deals as a multi-billion corporation. There are individuals further up the chain doing other things--it’s just too big. On the other hand, a repair shop owner or repair shop manager’s duties are not as different in comparision say compared to some giant corporation. Barely anybody knows of any repair franchises except Geeksquad, and they have a bad reputation anyway. I overheard they outsource virus removal through the Philippines or wherever via remote access just through a few virus scans and charge $200--WTF. Anyway regarding reputation, it has some merit, but I don’t think it’s as important as you make it out to be. Reason being is how the heck could the new store I managed be making so much off the bat--really, can you answer that? How? The reputation was never deemed bad--it was just new and not tarnished. From there, it grew and just plateaued. I’m going to take what I’ve experienced in the real world over some random article on the Internet stating it takes three stinking years to get the ball rolling.

Also, with no disrespect, I'm amazed that for someone so confident of starting a successful business, you've dismissed business insurance so easily.

I’ve always deemed insurance companies as corrupt and dishonest and many are a total waste of money. Business insurance, on the other hand, I will still look into. Many things like data loss could be covered in signed documents. If a tech destroys a customer’s system, would insurance cover something like that?

 

[Computer Bloke]

Well, that's the useful part of the thread over.

Flamewar, anyone? Personally I think I'll skip it.

 

[Karl00]

Well, that's the useful part of the thread over.

Flamewar, anyone? Personally I think I'll skip it.

Deliberate avoidance... deflecting the conversation... makes one wonder about other situations. Good luck with whatever you're doing or hope to try to do.

 

[Kitten Kong]

Well @Karl00 it appears at least to me, that you know everything there is to know about building, running, and profiting from a complete 100% new business from scratch, and making it extremely profitable as soon as you open your doors.

I wish you well. There are members here who have many many years experience and have given you some of the best advice possible here. From the simple 7 p's, to actually running a well-established extremely profitable business.

You seem to know more than they ever will do. Myself included.

So with that, I will bid you good luck.

I'm out of this thread.

 

[GTP]

Well

I do not have family nor a significant other. Bringing up the possibility of zero customers within a six month time-frame is the most brain-dead thing mentioned in this entire thread of discussion considering I’ve managed three very successful stores in my time and currently managing two successful stores at present.



Some businesses use eSignatures, not a problem. Anything to better organize and save time should be preferred.



Red herring galore... I bring up staff being one of the most important aspects of a business and you bring up that? There is planning. If $35,000 is not sufficient capital, then what is? How do you come to the conclusion of frivolous spending? Do you have a problem? Again you’ve made the most pointless posts and accusations here.



Why don’t you explain how there’s such a “huge” difference?



I have already made $11k at a startup shop first full month when I had far less experience than I now do. I still remember the shop being butt naked: not a single device, chair, trashcan, or anything. I got it from butt naked to $11k under non ideal conditions. I never mentioned $10k was surely going to happen, so why are you saying that? Approaching or exceedingly that figure is certainly doable. This is far from delusional as it has already been done. Owner was shocked. I now manage two successful stores now, two not one. Now imagine the time devoted to one I own, and it’s not delusional.



My prices are in the middle-range, certainly not the lowest nor highest. Why do you bring up possibility or assume lowest price? Repair stores in my area are really garbage, and most are franchises. Not everybody goes by price. I’ve interacted with many customers that decided to get their repair by me despite higher price, because they got a much better impression. There are numerous services and repairs I can do that they cannot. I know this by interacting with customers and overhearing other stores' messups or inability of repairing something. Many of them only focus on phones or simple devices. I on the other hand offer a larger scope of repairs across many devices. I can microsolder while none of them can--there is a ton of profit to made soldering ports on phones as they very commonly go bad. Only one competitor I feel is of significance, but they do predominately computers and a private business that’s been around for 10+ years. They don’t do mobile repairs, and they don’t like doing them.

• I could estimate these based at the stores I manage now. On average, we get about 5-7 devices daily. Devices to be worked on at one time varies a bit. Sometimes we’ll have a few such as three to up to 20 or so needing repaired--this excludes devices awaiting parts or devices pending approval from customers. Sometimes I can repair five a day or 10 a day or more. With a decent tech hired, certainly more can be done. It really depends on what comes in... some stuff is very simple and straightforward and some stuff can be a pain. I can’t imagine how busy it can potentially become. I’d say if there’s enough space for 20 computers, that should be okay. I already have all prices in mind. Breaking even would be rent+insurance+labor+parts+personal expenses+utilities+miscellaneous bills+some buffer, etc. I don’t eat ramen. I don’t eat garbage, but let's assume assume you do. I spend a lot on food and little on everything else. I tend to spend little on advertising/marketing. I always ask customers how they found out about us, and almost every time, it’s by friend/relative/other customer/drive-by anyway.

I already did both. It’s my opinion getting a new company running would be more ideal than a tarnished one with some bad reputation, but I guess that’s disputable based on the extent of reputation. Taking over as manager at a poorly managed shop, I saw some people will never come back. The one I did from scratch virtually had no recognition. Nobody ever heard of it at all.



I cannot agree that planning is more important than staff. I am by no means saying planning is not important.

Let’s imagine two scenarios:

1. An owner coming up with the perfect plan with staff from the streets who are bums who can barely write and are dropouts in middle school.

2. An owner who is a complete imbecile with the perfect staff who can sell well, who are highly intelligent and technical, have a strong work ethic, organized, etc.

Good staff can think on their feet, adapt, and adjust accordingly. I don’t think I need to explain further.



I think I would be fine. If I had to work more to get things accomplished, I would do it. I would work 80 hours per week if needed. With them there at beginning, I could focus on ideas and improvements and other manager/owner duties.



I repair phones and tablets. Yes, I am confident because what I’ve accomplished again and again. Too many responses in this thread are from those doubting me despite me managing stores very successfully multiple times. I actually sense bitterness in their posts for unknown reasons perhaps they’re failing or not faring as well I don’t know. I also sense many repair businesses potentially dying, but I see that as potential gain or revenue for me in a way. I’m fully aware screens exist for phones that cost more than the entire device--I’ve seen this many times. Data is very valuable--pictures, contacts, whatever. You can’t replace that with another device. Doing a phone repair in 15-20min and making $50-80 profit is pretty impressive. Soldering a charging port in 30min or less for $70 is pretty impressive. There’s a lot of problems doing mobile repair, and I’m fully aware and more so than most. A lot of times there's higher profit on computers, but they're fewer in numbers.

I welcome advise. I enjoyed Mr. Ingram’s post and found it useful. I’ll have to reread it when having more time. The constant doubting, delusion accusations, red herrings, putting words in my mouth, claims of working at a so-called “established” business makes everything I say or think invalid blah blah are all annoying and do nothing but distract from the real questions. Reread the bullcrap above. This is the same mentality from shitty parents who dis-merit anyone’s opinion/views who don’t own children on how to raise children.

If I was just a tech that departed from a company, that would be one thing. If I lacked experience in sales/repairs, that would be one thing. If I only focused on computer repair which I won’t, that would be one thing. If I had no money, that would be one thing. None of that applies. I didn’t manage one store but three and right now simultaneously two.



I wouldn’t call a shop nobody ever heard of and that was brand new in a spot to be deemed established by any means.



Comparing Walmart managers to a repair store manager doesn't seem reasonable. It’s a completely different animal. It’s a massive corporation. One stinking manager is not going to be getting the same deals as a multi-billion corporation. There are individuals further up the chain doing other things--it’s just too big. On the other hand, a repair shop owner or repair shop manager’s duties are not as different in comparision say compared to some giant corporation. Barely anybody knows of any repair franchises except Geeksquad, and they have a bad reputation anyway. I overheard they outsource virus removal through the Philippines or wherever via remote access just through a few virus scans and charge $200--WTF. Anyway regarding reputation, it has some merit, but I don’t think it’s as important as you make it out to be. Reason being is how the heck could the new store I managed be making so much off the bat--really, can you answer that? How? The reputation was never deemed bad--it was just new and not tarnished. From there, it grew and just plateaued. I’m going to take what I’ve experienced in the real world over some random article on the Internet stating it takes three stinking years to get the ball rolling.



I’ve always deemed insurance companies as corrupt and dishonest and many are a total waste of money. Business insurance, on the other hand, I will still look into. Many things like data loss could be covered in signed documents. If a tech destroys a customer’s system, would insurance cover something like that?

Well, you seem to know everything there is to know! What I don't understand is why you bothered to ask our opinions in the first place?
Sounds like your gearing up to take over the world!
Good luck with that!
I'm out too!

 

[Briggsy]

Why bother asking for advice? It sounds like we should be asking you for advice because you've got a solution for everything.

I don't think you actually wanted advice. This thread instead smacks of someone looking to have their ego massaged.