This is going to be a long and ultimately cliché thread unfortunately. Just trying to gather what useful information I can in the next several months before applying for an SBA loan.
First off, some background info on myself! I'm 26 years old and live in Perkasie, PA. For the majority of my life I've worked in retail, at places like Grocery Stores. About two years ago I began working at Staples as an EasyTech Associate. That lasted about 4-5 months before I realized I wasn't going to gain anymore knowledge on repair than I already possessed(realized this sooner than 4 months, however I needed a job of course). I then left staples and began working at a Local PC Repair shop about a 25min driving distance from where I live. I've been here for about 14 months now. I more or less manage the shop for the owner. Everything finance related he does of course, but as far as duties stand this is my list.
- Open the shop 10am
- Deal with clients in person and make calls as needed in regards to jobs
- Return Voice Mails
- Keep inventory
- Perform full virus removals
- Perform data recovery/backup
- Full disassembly and repair of desktop/laptops
- Full hardware/software diagnostics on each job that enters the shop
- Up sell each job. Typically SSD and memory upgrades, but often system image backups to new external HDD's
- Setup client Office, email, quickbooks etc if we're reinstalling the operating system or simply setting up a new PC for a client
- When a client wants a custom computer I do all the research required to meet their specific needs, then deal with them via email of phone
- Close the shop at 6pm
The list could include several more things, but you get the picture I'm sure. All this in mind, I make $10/hr. When initially hired I was more or less desperate to make it into a repair shop simply to gain experience. And don't misunderstand my feelings, I landed a gold mine of a boss in terms of raw knowledge and ambition. He was a business major in college and honestly cares little for computer related things. The way he put his life to me, "I planned to run my own business no matter what. It just happened to be computers." Due to my relative desperation for a position and my lack of an applicable degree, certification or experience, $10/hr was the offered wage. Since then we've moved locations and now have double the overhead. There's scarcely been a moment that felt right in terms of approaching him for a raise. Regardless, I have a burning ambition all my own to open shop, with my logo.
In this past year I've learned so much and gained a large some of confidence in regards to trouble shooting any issue a client may have, as well as speaking to clients about complicated things in a reassuring way. I've also been around the pack up, and moving process with a business. I have a strong working knowledge of things I'd need to start out. I've learned a great many things from him in passing conversation to the tune of LLC, business accounts with newegg, assets, price scheme and workable profit margins. Even company policies & procedures. I do however work six days a week and have signed a non-compete disclosure. Meaning I have little in the way of means to start a business out of home at first. Not to mention my home town of Perkasie already has a very well established repair shop.
My plan. Fifteen minutes from where I live is a very nice town. Not too rich, but not exactly a poor town either. It has everything you could imagine. It does however lack a PC Repair shop. This is my target town for a shop front. Trying to keep the number of super paragraphs to a minimum, here's what I've done and plan to do to make this happen, thus far.
- Compile a spreadsheet of overall cost in terms of material, location & advertising.
- Formulated a rough idea of yearly income based on a largely dialed back version of what the shop I currently work in makes. It's not unusual for us to swipe several $200+ jobs a day. Very rarely does a day pass by without a sale of some sort.
-Brainstormed various advertising ploys. Mostly dealing with, Local Newspapers/flyers, Local Community Events, Local Organizations such as lodges & VFW's, strong word of mouth with friends and neighbors of the community, make myself known to neighboring businesses, appropriate signage within compliance of property owner and township, Facebook & Craigslist.
- Read various articles and threads detailing things needed to form a business as well as how to proceed with getting an SBA approved loan.
I suppose my questions here today would be something along the following:
1.) To anyone currently in the shoes I wish to wear in regards to owning a repair business. What worked for you?
2.) What common mistakes do you think people make in the early stages of starting their repair business?
3.) I understand it's probably different for everyone, but how large of a loan do you think is applicable to starting out with a modest shop front in the realm of $800-1200/month not including utilities?
4.) Do you wish you went into business for yourself sooner? Or are you glad you waited as long as you did?
Thank you to anyone who took the time to read this, and especially to those that have some thoughts to share!
First off, some background info on myself! I'm 26 years old and live in Perkasie, PA. For the majority of my life I've worked in retail, at places like Grocery Stores. About two years ago I began working at Staples as an EasyTech Associate. That lasted about 4-5 months before I realized I wasn't going to gain anymore knowledge on repair than I already possessed(realized this sooner than 4 months, however I needed a job of course). I then left staples and began working at a Local PC Repair shop about a 25min driving distance from where I live. I've been here for about 14 months now. I more or less manage the shop for the owner. Everything finance related he does of course, but as far as duties stand this is my list.
- Open the shop 10am
- Deal with clients in person and make calls as needed in regards to jobs
- Return Voice Mails
- Keep inventory
- Perform full virus removals
- Perform data recovery/backup
- Full disassembly and repair of desktop/laptops
- Full hardware/software diagnostics on each job that enters the shop
- Up sell each job. Typically SSD and memory upgrades, but often system image backups to new external HDD's
- Setup client Office, email, quickbooks etc if we're reinstalling the operating system or simply setting up a new PC for a client
- When a client wants a custom computer I do all the research required to meet their specific needs, then deal with them via email of phone
- Close the shop at 6pm
The list could include several more things, but you get the picture I'm sure. All this in mind, I make $10/hr. When initially hired I was more or less desperate to make it into a repair shop simply to gain experience. And don't misunderstand my feelings, I landed a gold mine of a boss in terms of raw knowledge and ambition. He was a business major in college and honestly cares little for computer related things. The way he put his life to me, "I planned to run my own business no matter what. It just happened to be computers." Due to my relative desperation for a position and my lack of an applicable degree, certification or experience, $10/hr was the offered wage. Since then we've moved locations and now have double the overhead. There's scarcely been a moment that felt right in terms of approaching him for a raise. Regardless, I have a burning ambition all my own to open shop, with my logo.
In this past year I've learned so much and gained a large some of confidence in regards to trouble shooting any issue a client may have, as well as speaking to clients about complicated things in a reassuring way. I've also been around the pack up, and moving process with a business. I have a strong working knowledge of things I'd need to start out. I've learned a great many things from him in passing conversation to the tune of LLC, business accounts with newegg, assets, price scheme and workable profit margins. Even company policies & procedures. I do however work six days a week and have signed a non-compete disclosure. Meaning I have little in the way of means to start a business out of home at first. Not to mention my home town of Perkasie already has a very well established repair shop.
My plan. Fifteen minutes from where I live is a very nice town. Not too rich, but not exactly a poor town either. It has everything you could imagine. It does however lack a PC Repair shop. This is my target town for a shop front. Trying to keep the number of super paragraphs to a minimum, here's what I've done and plan to do to make this happen, thus far.
- Compile a spreadsheet of overall cost in terms of material, location & advertising.
- Formulated a rough idea of yearly income based on a largely dialed back version of what the shop I currently work in makes. It's not unusual for us to swipe several $200+ jobs a day. Very rarely does a day pass by without a sale of some sort.
-Brainstormed various advertising ploys. Mostly dealing with, Local Newspapers/flyers, Local Community Events, Local Organizations such as lodges & VFW's, strong word of mouth with friends and neighbors of the community, make myself known to neighboring businesses, appropriate signage within compliance of property owner and township, Facebook & Craigslist.
- Read various articles and threads detailing things needed to form a business as well as how to proceed with getting an SBA approved loan.
I suppose my questions here today would be something along the following:
1.) To anyone currently in the shoes I wish to wear in regards to owning a repair business. What worked for you?
2.) What common mistakes do you think people make in the early stages of starting their repair business?
3.) I understand it's probably different for everyone, but how large of a loan do you think is applicable to starting out with a modest shop front in the realm of $800-1200/month not including utilities?
4.) Do you wish you went into business for yourself sooner? Or are you glad you waited as long as you did?
Thank you to anyone who took the time to read this, and especially to those that have some thoughts to share!
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