The first 12 months - where I got it wrong

16k_zx81

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Update: Time to present - things I think I got right [Posted May 2011]

1. PCRT

Best investment I have ever made for the business, bar none. It may be the case that I am so pleased with it because I am, by nature, woefully and chronically disorganised! :).

The thing its done for me is to help keep things on track. I can better map what stage various jobs are it, it keeps my financial records straight, and provides a pretty workable database of client info and repair records. A win for me and a win for customers. Very fond of this software!

2. Mobile card processing

Bryce did an article awhile back - around about the time I was thinking of doing this. It sorta spurred me on to get motivated and set up some way of processing EFT and Credit on the move and in the Workshop at home. Anyhoo, I made a lot of phone calls, and my own bank actually made me the best offer for a system (which was convenient). Customers love it onsite when I pull out the reader, and they can pay by credit card or whatever. (Wish I had done this sooner!)

3. Automated N&P's

The thing of working 12-15 hours a day was getting pretty tired, and I started looking at ways of speeding up the systems I use to repair machines. I chanced upon Paragon, which has a method for making universal images in conjunction with Sysprep. I incorporated the Driverpacks installer with the images, and the base software I put on all fresh installations. Now I just whack in a bootCD, an ext HDD with all the images, and hit 'go'. This is saving me a lot of time!

4. Taking breaks.

- Which might sound like a "duh" moment, and for most people it probably is :) What I was finding was that I was waking up, with some regularity, not looking forward to the day. This is unusual for me, as I do love this job. The villain here was over-work.

The thing is, though, I hate leaving things unfinished, so, for my own sanity, I am having to learn to do that. Dan Hand talks about this in his book on Computer Repair Business, and says something along the lines of "Sometimes doing nothing is actually more productive than working" - the idea being that when you come back refreshed to a job, you do it more enthusiasticually then when you have worked yourself down to the ground. This made an impact when I read it, and Ive started to apply the idea.

The part I still find hardest about this is saying "No". When a customer wants their machine done TODAY! and I know its going to lead to me being overworked, its still a challenge to just stand my ground on the timeframe I know I will require to get it done. I think Im making progress though! :) (the Wife and kids are happier, which is also a big plus)

5. Outsourcing.

Those "billable hours" were getting hard to accrue, especially being a sole-operator, trying to do everything myself. Overwork was taking time and energy away from the customer-service and speed-of-service aspects that are so important to return business and WOM. So, I decided to take tasks off my own shoulders and hired people to do some stuff for me.

I have a guy doing laptop repairs, a guy doing backlinking, a woman doing some graphic design projects (something I like to do myself but they take too much time as Im not skilled enough with the various software required to do it well), and a guy writing a Malware Removal script (something I probably couldn't have learned how to do with a gun to my head - I suck at scripting) :)

And its actually working out really well! I have more time to focus on those billable hours, and I can relax and know that the other stuff is being done my people who are good at it - rather than me, bumbling my way through, and taking far too long in the process. More time for other things! (Yay!)

6. Automated malware removal.

I heard about this from my laptops subcontractor, who said he knew of a local shop owner who had a machine set up so that he put the disk in infected, and pulled it out clean. This appealed to me, again, because of the time/overwork thing. I outsourced someone to write a script for me that does two outside-of-OS scans, resets dns, proxies, etc, does a number of tune-up tasks. The idea is that the actual hands on time with the machine should be reduced to about 15 mins. The script is just about ready for testing, and should be ready for runs in customer machines in about 2 weeks. If it does what its intended to there should be many hours saved each week to focus on more important things (like having a life outside of work!).

So, yeah, things are going well. The income I would like to make is still not quite there yet, but its definitely building. I have more regulars, and WOM is good. Things seem to be ticking along; an improvement on the first 12 months, at least :)

Cross your fingers for me?



Original Post - Where I got it Wrong [30-09-2010]

Its now been 12 months since I first started taking paid work. I thought it might be useful to make a list for the consideration of others starting out. Basically things are going very well, but could have gone a lot better if I had known about some of the things below before I took the plunge to self-employment as a repair tech.

1. Keeping proper client records.
- address/phone/email/nature of repair
- amount originally quoted / amount charged
- while working on machines: Parts ordered, orders pending

- Bits and pieces
I didnt keep records of the parts I picked up from customers. I had a "where is my mouse?" conversation with a particular laptop owner who was adamant he left it with me (he didnt and subsequently found it in the back of his car). Now I give an equipment receipt to each customer, and only take away the bare essentials of what I will need for the job. This has saved my butt on a couple of subsequent occasions. I should have been doing this from the outset.
2. Not keeping accounts:
- Expenses.
I had no idea for the first 6 months how much I was spending on keeping the business running, which meant that the profits I thought I was making werent actually profits. It may sound obvious, but not knowing all of the costs involved in running the business really shot me in the foot. Car, Phone, Internet, postage, tools, software, equipment, taxes, accountants fees, subcontractor fees, advertising, bank charges and rent (I work from home but this is also an expense). Not being aware of what the business was costing me to run meant I was not able to set my rates high enough at the outset. It turns out I should have been charging 3 times as much as I thought I should charge. If Id known what my costs actually were I could have got this right much sooner.

- Accounts software
The thing that set me on track was getting a proper accounts software package and using it. The package cost $170 and the accountant's fee was $110 to show me how it worked (It should be abundantly clear at this point that I am not a whiz with finances :)). One of the best things I have paid for so far. It allowed me to understand the money side of things and get my fees right. I wish I had done this earlier.
3. Underestimating time frames
I messed up big time initially, by making time estimates too short. It seemed like everyone wanted their PC done 'now' and so I thought I had to do it in the timeframe they stipulated.This was a big mistake. My workload got congested, which resulted in delays for all my customers. Now I usually state a week for any repair I am unsure of. If I do it in 1-2 days, then in the customer's eyes Im golden. If it actually takes a week, then there's no disappointment to have to placate. Managing workload is definitely a fine art, and one Im continuing to learn.
4. Messing up Google Adwords
I did not appreciate just how tricky and expensive google adwords can be to set up. By not using proper regionalisation and placement ('display network') for my ads, I spent horrible amounts of money with low conversion rates (when you get a calls from the clicks you paid for) I literally spent well over $1000 excess in the space of several months over what I should have, by getting this aspect wrong. A very costly mistake.
Having said that, I get all of my work from google and WOM. When it was tuned properly it turned out to be a great investment.
5. Doing my website on the cheap
I used the Techbuilder package. I wouldnt knock Steve's (Podnutz) work for an instant, and he has been a HUGE help in setting up my business. This is not a slam about anyone who uses it (as I know a lot of people do). Speaking personally, I found that although the infrastructure was ideal, my conversion rate improved when I got my website set up more 'professionally'. I ended up doing it myself but it took a hell load of time to get right. In retrospect, I wish I had either had the skills at the outset to do it right myself or just paid someone to do it. It does make a difference to my conversions.
6. Putting my price on business cards
This was a huge strategic error. After about 6 months I thought I had figured out my rates, and so got 1000 business cards and 1000 Postcards printed up with them on. These were distributed to a number of local businesses and given to every customer to distribute. I got a lot of work from those cards, and continue to do so. The thing is, my prices have actually doubled since then. You can imagine how many tricky conversations I have had to have with customers about the increase in price. I hate having these conversations! Probably the biggest mistake I have made.
7. Taking too long to find a decent, reliable parts provider
I had some really bad experiences having to tell customers "this job will take another week" because a supplier either sent the wrong part, or didnt send the part at all. Im lucky enough to have some really decent providers now, and I guess this sort of thing is just trial and error, but unreliable parts suppliers have cost me a lot of money in losing return custom and bad WOM. I found that sometimes its worth paying more for a provider that I can depend on. Now Im not always looking for the best deal, just paying market price in the knowledge that the job will be done in the right timeframe. At the end of the day Im better off, because the jobs get done on time and my customers are happy.

8. Not being adequately aware of my technical weaknesses
I have two archilles heels in computer repair. One is networking (although I am getting better at it), the other is board-level Laptop repairs. The first weakness caused several bumps in the road because I wasnt adequately aware of what I didnt know when I started doing paid work. Since identifying this, I have been doing the A+ course and am improving, learning everything I can whenever I have a spare moment. I could have saved myself a lot of heartache by taking an honest inventory of my skills at the start and having better personal awareness that this would be an issue. I guess we all have our weaker spots. Knowing what they are is the tricky part.

I am working learning board-level repair. But in the interim, I have found a guy who is very skilled who I use as a subcontractor. This means I can take on these repairs (which are a significant proportion of the laptop work I get) and have them done right, while I learn more about how to do them myself. I have a hot air station and a stack of old boards I am working on but wont be doing any work for at least 12 months until I start to have some of the proper skills. The subbie has an IR station and 20 years experience so for now they go to him.

9. not adequately appreciating the adage 'time is money'
I was listening to a podcast recently, and the guest speaker said to try to make at least 32 hours of each week 'billable' - ie; doing things that actually make money. It made me reflect on the time I have been taking to do repairs, travel to/from jobs, do all the other things related to running the business and the idea has stuck with me. Right now, my goal is to make as many hours each week as possible time that I can be paid for. That means doing jobs more quickly while still retaining a quality standard. It seems this will be the biggest challenge over the next 12 months; making the business more efficient, and therefore (hopefully), profitable.

So this clearly isnt 'how to run a computer business'. There are a lot of people on here far more qualified than I am to do that. Its just a list of mistakes I have made, in the hope that it might help others starting out.

This business is probably the most personally rewarding and enjoyable job Ive ever had. Im still working on developing, but the process has been really fun. Ive met some great people and love being my own boss. Hopefully it will soon evolve into a full income. Wish me luck :)

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Good summary and thanks for posting.

Less experienced and more experienced biz owners, I think, benefit from posts like this.

Being able to see the business from different angles makes us better.

I am currently using Google Adwords and have been monitoring it like a hawk to see whether I am doing it well. It is currently pretty localized to about 15 miles radius from where I live...it is under testing.
 
Excellent summary, thank you so much for posting! :)

Does that board-level subcontractor guy do chip replacement or just jack solders for you?
 
Excellent summary, thank you so much for posting! :)

Does that board-level subcontractor guy do chip replacement or just jack solders for you?

He does chip replacement. He also has an IR station so in the instance where reflow is req'd - (I dont know anyone local that can reball) he has the gear to do it 'properly'. He has a huge amount of parts, so if someone comes in needing, say, a lid or hinges or a backplate or whatever, for a particular laptop, usually he has stock that will fit. Its been a very profitable and useful relationship for both of us.
 
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Cracking post matey.

Took me a good 12 months to fix some of my problems. One of the things I go regret is turning down so many broken screens on laptops. Everytime I tried to replace one I would break the plastic casing around it and so I decided it wasn't worth doing them. After about 6 months of saying no, I got my hands on a few cheap laptops and took my time dismantling them and putting them back together. Never looked back since.
 
Join the club!

Welcome to the group of people who are now wiser...
I don't know exactly how much wiser I am myself, but I made every mistake you talked about and more. :)
 
Welcome to the group of people who are now wiser...
I don't know exactly how much wiser I am myself, but I made every mistake you talked about and more. :)

Sigh.... Raises hand to join group that has made every mistake. :)

Good post.

Rick
 
Brilliant post! I just joined up last night and pretty much all of that information is like Gold for a new comer to the business.

I've already gained quite allot of very useful information in regards to the accounting side of things and considering using MHelpdesk and Quickbooks to streamline my accounts and customer database from the get go. Money management has never been my strong point and hopefully this well change all of that and help me keep a proper grip of the business finances.

In regards to using sub-contractors, I'll need to speak to a few of the local IT places close to me and see if they can recommend anyone for the more technical aspects of repairing laptops that I'll probably never get round to learning. There's enough on my plate as it is without having too learn the intricacies of re-flowing and IR benches and the like, probably best leaving that up to professionals who have been doing it for years.

Thanks for this post, very helpful and informative, will definitely take some very useful knowledge away from it!

G
 
this is a great post maybe we should have a sticky for "pitfalls to avoid" if you are serious about doing this for a living.
 
This was a very useful post, plenty of really good points to think about and will hopefully help myself and many others avoid the same mistakes
 
Thanks for the great post

I just started out and this post has given me some valuable in site. I am looking at adwords and reading a lot of posts on using it. What kind of budget does adwords take to get results?
 
But where do you get your parts from?

You mention, "7. Taking too long to find a decent, reliable parts provider"... and how important it is to have a good parts provider but you don't say who your parts provider is! I have been searching the net for the better part of an hour trying to find a place that will sell me a replacement USB port and haven't found one yet. Who do you buy your parts from exactly?
 
I just started out and this post has given me some valuable in site. I am looking at adwords and reading a lot of posts on using it. What kind of budget does adwords take to get results?

I dont know that its so much about budget as about returns.

Any advertising will cost, and often more expensive forms will yield better traffic to your business. Its an equation of whether the dollar investment will return commensurate profits, and also about whether the flow of work from the advertising will do your business good or cause it problems.

I think the trick is to pick advertising that you can control the workflow from. The thing I like about adwords, is that if I get really busy, I can switch it off for a couple of days while I catch up. I have been offered advertising by a couple of companies recently on 'shop-a-dockets'. My concern was that it was a 12 month contract and they were citing something like 10,000 exposures per week. While the returns may have been good, the service issues that may have arisen from not yet having an infrastructure to take on that amount of traffic would have been problematic for me. I use adwords and do mailbox drops with postcards from vistaprint. When things are quiet, I do mailbox drops to supplement google traffic.

Re Adwords: AFAIK how much you will need to bid will depend on what area you are in and how many other companies are bidding (and how much) for the keywords you plan to use.

I probably spend $200 pm with a budget of $15 per day @ $2.09 per click, but its not a good example as prices will vary depending on other factors.

The thing thats critical as I understand it is conversion rate - that is, whether you get phone calls/emails (and therefore paid work) from the ad. You can spend bazillions of dollars on getting clicks but if your website isnt converting those to customers its all a total waste of money, as is page rank, if you can achieve it.

Ive just redone my site so dont have conversion data accrued yet. But say one in three customers (clicks) is a job, and you're bidding $2 per click, its cost you $6 to get that customer. If your website is not so good and it takes 15 clicks, you just spent $30 to get a customer.

Conversion rate is also a function of the geography you set your ads to display at (mine is about 16km radius from home). If its a broader radius and your customers dont want commute, (or its further than you want to go), its wasted clicks.

Its also a function of the networks you display in. I was displaying in the broader network outside of search results (computer forums, other websites), so the clicks you get from those ads is from casual shoppers - people who have clicked out of curiosity. This is probably not going to be as high in conversions as displaying in search results only, where people have searched intentionally for your specific keywords (definitely wasnt for me - kind of like throwing money into a fire).

When I asked for advice Here on this subject someone said 'adwords is a science'. Even Google recommend you continually revise your settings with them to best optimise cost/performance. I think this science analogy is valuable as Adwords is a complex system with lots of potential for success but also equivalent potential to be a money-pit of not set up correctly.

My suggestion would be to think of the financial outlay as a ratio between investment and return, rather than an outright expense. The 'loss' aspect will depend on how well you implement it.

Im sure there are plenty of people here who can advise you more about the more complex aspects. I really only understand the basics.
 
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Who do you buy your parts from exactly?

I think this sort of thing is geographically based and will differ in cost-effectiveness and delivery time depending on where you are located.

Theres another lengthy thread here that Corbin spent a lot of time putting together which discusses various providers in different parts of the world. Perhaps have a look and enter yourself into the discussion to get ideas about whats working best for people in your country/region?
 
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The only thing I didnt see to much was how much advertisng/marketing you have done besides adwords. Im always curious how it works out for people did you do any Flyers, or things of that sort?

yes Im using these postcards.
 

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I have been searching the net for the better part of an hour trying to find a place that will sell me a replacement USB port and haven't found one yet. Who do you buy your parts from exactly?

Get the USB port from eBay, be sure to select only suppliers in your cuontry if you want to get it within a month.

For everything else, I buy from Newegg and D&H. Newegg is very close to me so shipping is usually fast. D&H is pretty much guaranteed 2 day delivery with how many locations they have.
 
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