Business History Books » Small Business Consulting » New PC Repair Business – Need Advice
New PC Repair Business – Need Advice
Question:
Oh, and on the subject of working for lawyers… don’t bother. I happened to have a friend who’s a lawyer who hired me to maintain his network, but typically getting an attorney to part with his money is easier than pulling your own tooth. I get 3% response on direct mail to businesses, but when I mailed every attorney in the area a similar letter I got ZERO response.
Response:
> When I met with a counselor at the State’s Small Business help > organization – she spent the half hour trying to talk me out of it – > saying they are getting streams of laid off workers coming in and > wanting to start their own PC Repair business. According to her – > almost all fail.
I’m sure she’s right. But then again most all new businesses fail within the first 2 years. > So I bought 2 books (the only 2 that are listed) on this from Amazon.
Well, I’m not quite sure what you mean by PC Repair business. If you plan to do in-home repair, you probably will experience exactly what these books say. I personally ONLY do in-home repair for existing business clients, and generally only if they are influential in town. Book recommendations, in order of importance: Getting Business To Come To You (I have the tapes for use in car) Get Clients NOW! By C.J. Hayden (Highly recommended for new consultants) High Income Consulting by Tom Lambert (Not PC specific, but a good read) Sales Prospecting for Dummies Guerrilla Marketing (duh!) I think I read the same two PC consultants books you did, and wish I’d never wasted the money on them. Computer consulting isn’t that different from other consulting – you are just providing a differently named service. I think these books were written by consultants to try to keep others out of their market. > Both of them spend half the time trying to tell you how little you > will make after expenses and taxes are paid,
Well, This might just be true… until you get established anyway. Self-employment taxes means you will be paying almost double in taxes than you are used to. Fortunately car mileage is deductible, computer upgrades for the home office are deductible, etc. Contact a tax advisor. Better yet, do what I did and work out a barter deal with a CPA to do his computer work in exchange for tax advice. Don’t forget to pay your taxes quarterly. > Basically, all feedback I have received is incredibly negative, and I am > beginning to believe it.
Then you may not be cut out to be an entrepreneur. The rest of us hear all the negative but never process it… You MUST believe you can do this, and when things don’t go your way, you MUST not believe it’s because you are failing. It’s important that when something doesn’t work you stop and objectively find another solution. Over and over and over… > My "Grand Opening" started yesterday, with my ads running in a couple of > local newspapers. It’s too early to tell, but no calls came in.
Yeah, Newspaper ads work after they’ve run about 6 months, and only when coupled with other marketing efforts. Don’t waste your money. Every professional consulting book I’ve read basically states that professionals providing services will waste their money in ANY sort of "normal" advertising. Your best and sometimes ONLY source of leads is referrals. The first thing I did was e-mail everyone I knew and told them what I was doing and asked if they could provide me with a list of 4 of 5 friends in the business world that I might contact. Out of that I generated almost and instant $2000 worth of business, plus found an accountant willing to work on barter. > daughter, and to be honest – this whole thing is scary. But I have > spent too much now to quit.
I’ve been doing exactly this for the past 5 months now – for exactly the same reason. I was laid off. My employer gave me a small severance package that was enough for about 3 months of expenses when coupled with my savings account. Now I’m bringing in a consistant $3000 a month in revenues, spiking to $4200 this month. Yes, I only have 5 months of experience at this, but I also have long term contracts with some companies that ensure I will have cash flow in the near future. > It seems the only way to make a living is to have service calls lined > up, one after the other, for at least 6 hours per day – and it does not > seem possible. My mother-in-law said I shoudl start hoofing it . . . . > handing out cards and knocking on Doctors and Layer’s office doors. Hmmm > . . . not really my style.
But unfortunately she’s probably right, but do it on a referral basis. Ever had a vaccum cleaner salesperson at your door? I guarantee he had a referral to see you, and if so then you let him in. Don’t forget you can do website development, custom programming and other things after hours. I quote flat rates for some projects like web development that turns out to really bill around $180 per hour, and I get to do them at 1 AM if I want. As for rates, I charge $75 per hour, but for 6 month or longer agreements I have a discount structure based upon monthly usage. I based it not on competitors (mostly in the $40 range in my town for individuals, and $120 for big consulting firms) but because of the market I was attacking. Small businesses freak if told they will spend $90 per hour, and individuals won’t spend more than about $50 per hour, here at least. I want the small businesses. They have the greatest need and highest ability to pay my bill. I help small businesses maintain and secure their computer networks. What do you do? Can you state it in one simple sentance like that? My startup costs were: Business cards $35 Letterhead $20 (self printing on linen paper) License $108 (DONT forget this one or end up in trouble) The only advertising I’ve done is to send out a personalized letter to certain categories of businesses in my town such as Dentists and Accountants. I’ve had about a 3% response rate on those personalized letters and each new account has generated about $600 instantly, plus repeat business and more referrals. For instance, the wife of an attorney I do work for runs a local TV station who just happens to need a new website… I also was lucky enough to have a golden umbrella. I had one client right off the start who generated over $2500 per month of work for the first few months. I did a high profile website for him, installed Gigabit ethernet in his office, reformatted computers, etc. It gave me the time to find other clients. Good luck in your endeavors. If you plan to do this, throw out everything you think you know about marketing and sales. You MUST be a salesman, but not in the typical knocking on doors sense. You MUST market, but don’t do newspaper and yellow pages.
Response:
Branch out. Sell Software Install small networks Install Wireless Networks – piece of cake if you have done it once or twice – at least for small businesses Do training on Windows, WEB, Email, MS OFFICE and other Products Network – Partner with companies that you can synergistically use to help propel each other In other words it is a saturated market – the work will not – again let me state – THE WORK WILL NOT COME TO YOU – for computer repair unless you can offer more services. But if you can add say an additional Partner every few weeks (Software, Hardware, Training, Business Supplies whatever – think of partnering in ways that it behooves your partners to get you into their clients) add a new service every few weeks – as your mother in law said ‘Hoof it’ a little – IE join the Chamber of Commerce (I would have done this before spending bucks on the yellow pages) — Bruce J Hafner http://www.siliconmindset.com Flow charting, Process Maps for Business – Hide quoted text — Show quoted text – > I used to do this part time, alongside my regular job, so the success > of it did not matter. Now after 6 months of unemployment, I have > restarted this full-time. > When I met with a counselor at the State’s Small Business help > organization – she spent the half hour trying to talk me out of it – > saying they are getting streams of laid off workers coming in and > wanting to start their own PC Repair business. According to her – > almost all fail. > So I bought 2 books (the only 2 that are listed) on this from Amazon. > Both of them spend half the time trying to tell you how little you > will make after expenses and taxes are paid, how frustrating it is > with all the callbacks, the hassles of returns & RMA numbers, dealing > with multitudes of people vs just a few as in a regular job, driving > in traffic every day – all day, going to dirty, smelly houses with > sick people, etc. – and how if you are not this type of guy, or that > type of guy, etc – then this job is not cut out for you !!! The "help > guides" are nothing more than depressing essays on how you will fail. > Basically, all feedback I have received is incredibly negative, and I > am beginning to believe it. > My "Grand Opening" started yesterday, with my ads running in a couple > of local newspapers. It’s too early to tell, but no calls came in. > If on the "bright side" during the next week or two I get several > calls, and that mode continues – then it will take me a year to simply > make back the dough I spent on startup parts ($1400) and Advertising > in Newspapers ($380 per month) and Yellow Pages ( $1007 per year to > run a tiny 1-inch text only ad . . . not in the big book . . . in two > of the small local books) !!!!! > Just running 3 ads in small newspapers and Yellow pages, and gas, I > estimated it out at 9 grand per year. Wow. How do the Geeks on Call > guys make it? I went to their website and their Franchise fee is > about 50 grand just to start it up (they can finance it for you at 15% > down). Out ads here have Geeks on Call, and Nerds on Call. Well, I’m > not a Geek and I’m not a Nerd - just a guy trying to feed my wide > and daughter, and to be honest – this whole thing is scary. But I > have spent too much now to quit. > It seems the only way to make a living is to have service calls lined > up, one after the other, for at least 6 hours per day – and it does > not seem possible. My mother-in-law said I shoudl start hoofing it . > . . . handing out cards and knocking on Doctors and Layer’s office > doors. Hmmm . . . not really my style. > By the way – I set my rates halfway between the most expensive, Geeks > on Call ($65 show-up and $80 per hour) and the cheapest competitor I > found ($25 show-up and $50 per hour). So I am charging $40 show-up > and $60 per hour. When I did this part time I only charged $50 per > hour with no show-up fee, and I prorated it, so a 15 minute fix was > only $12 !!! That’s a good way to starve. > Any tips ?? Any of you been able to make it in this business??
Response:
I used to do this part time, alongside my regular job, so the success of it did not matter. Now after 6 months of unemployment, I have restarted this full-time. When I met with a counselor at the State’s Small Business help organization – she spent the half hour trying to talk me out of it – saying they are getting streams of laid off workers coming in and wanting to start their own PC Repair business. According to her – almost all fail. So I bought 2 books (the only 2 that are listed) on this from Amazon. Both of them spend half the time trying to tell you how little you will make after expenses and taxes are paid, how frustrating it is with all the callbacks, the hassles of returns & RMA numbers, dealing with multitudes of people vs just a few as in a regular job, driving in traffic every day – all day, going to dirty, smelly houses with sick people, etc. – and how if you are not this type of guy, or that type of guy, etc – then this job is not cut out for you !!! The "help guides" are nothing more than depressing essays on how you will fail. Basically, all feedback I have received is incredibly negative, and I am beginning to believe it. My "Grand Opening" started yesterday, with my ads running in a couple of local newspapers. It’s too early to tell, but no calls came in. If on the "bright side" during the next week or two I get several calls, and that mode continues – then it will take me a year to simply make back the dough I spent on startup parts ($1400) and Advertising in Newspapers ($380 per month) and Yellow Pages ( $1007 per year to run a tiny 1-inch text only ad . . . not in the big book . . . in two of the small local books) !!!!! Just running 3 ads in small newspapers and Yellow pages, and gas, I estimated it out at 9 grand per year. Wow. How do the Geeks on Call guys make it? I went to their website and their Franchise fee is about 50 grand just to start it up (they can finance it for you at 15% down). Out ads here have Geeks on Call, and Nerds on Call. Well, I’m not a Geek and I’m not a Nerd - just a guy trying to feed my wide and daughter, and to be honest – this whole thing is scary. But I have spent too much now to quit. It seems the only way to make a living is to have service calls lined up, one after the other, for at least 6 hours per day – and it does not seem possible. My mother-in-law said I shoudl start hoofing it . . . . handing out cards and knocking on Doctors and Layer’s office doors. Hmmm . . . not really my style. By the way – I set my rates halfway between the most expensive, Geeks on Call ($65 show-up and $80 per hour) and the cheapest competitor I found ($25 show-up and $50 per hour). So I am charging $40 show-up and $60 per hour. When I did this part time I only charged $50 per hour with no show-up fee, and I prorated it, so a 15 minute fix was only $12 !!! That’s a good way to starve. Any tips ?? Any of you been able to make it in this business??