| If you're thinking about starting Computer Repair | | | | different scenarios is to also consider whether |
| Business, it's a very good idea to create a | | | | you want to offer onsite service or inside service |
| business plan. The best reason is not what you | | | | (where the customer brings in their equipment). |
| think. I don't know anyone who has ever stuck | | | | Often this is depending on the market area, |
| with his or her original business plan. Why? Well, | | | | target audience, and location. |
| planning and doing is the same as hypothetical and | | | | The key to making that type of decision is to |
| reality. Once you get immersed in your business, | | | | figure out if the retail location can generate |
| you often have to modify your plan to fit real | | | | enough walk in business to compensate for the |
| world situations. | | | | cost. The office building or warehouse location |
| Even the best planners can't see everything that | | | | might be necessary if you will have multiple |
| might crop up, and being flexible is the key with | | | | employees and support staff. But both those |
| any good business plan. The best thing about | | | | choices are expensive both in startup and ongoing |
| doing a business plan is that it makes you think | | | | costs. |
| about the important elements of your proposed | | | | Speaking of staff, unless you start your business |
| business. | | | | with clients, employees can be a tremendous |
| Areas to research and try to layout in your | | | | expense and involve more administrative time. |
| business plan would include market analysis, | | | | Adding employees right from the get go with out |
| startup costs, necessary skills, and initial inventory | | | | having some type of clientele is risky at best. If |
| or equipment. All of these areas are important | | | | you will already have service contracts or written |
| when planning your business. Most business plans | | | | commitments from clients, you might need |
| can be divided into common sections like these: | | | | employees. |
| - Executive Summary | | | | A good alternative to the warehouse or office |
| - Company Description | | | | building options is to go with an executive business |
| - Products and Services | | | | suite. These are companies that will provide very |
| - Marketing Plan | | | | small spaces (like 200 sq ft) and administrative |
| - Operational Plan | | | | services like answering the phone, having a mailing |
| - Management and Organization | | | | address, using a shared conference room for |
| - Personal Financial Statement | | | | meetings, and so forth. These are available on |
| - Startup Expenses and Capitalization | | | | short or long term and can have little startup |
| - Cash Flow Analysis | | | | cost. |
| If financing is a part of the puzzle, even more | | | | If you plan on providing onsite service, then you |
| time should be spent on presentation and | | | | might not need anything but a mail or PO box |
| documentation. You will be judged by the lending | | | | somewhere close to home for parts and receiving |
| institution on the quality and accuracy of your | | | | mail. Especially if your onsite service is to |
| numbers of your business plan. The two most | | | | individuals or the home market rather than |
| common flaws in business plans are under | | | | commercial clients. |
| estimating costs and over estimating revenue. | | | | After determining your startup and operating |
| A good example in the Computer Repair Business | | | | costs, the marketing aspect of your new business |
| is for one to assume that since there are an | | | | is most important. Without sales (and revenue), all |
| average of 171 working hours in any given month, | | | | you have is a hobby according to the IRS. It's |
| that you could bill 171 hours or the total amount. | | | | important to define your target audience and |
| Not going to happen, there is no way to bill 100% | | | | determine how you plan on acquiring customers. |
| of time. Why, because you rarely can bill out | | | | These methods can include classic marketing |
| every hour in the day. There are necessary | | | | techniques such as handing out business cards to |
| activities that take away from billable hours. Now | | | | advertising in your local yellow pages. |
| if you work 80 hours a week, you could bill over | | | | This is where many new Computer Repair |
| 40, but that's not the same thing. | | | | Business owners have the most difficulties. Being |
| And if you are a owner/operator (one man band) | | | | a good technician and knowledgeable repair guy is |
| you will need to do many administrative, | | | | not enough in today's competitive marketplace. |
| marketing, and record keeping tasks that all take | | | | You need to sell yourself and your company. |
| away from billable time. In fact, some of the | | | | Marketing and customer skills are paramount to |
| most effective owner/operators I know in the | | | | finding and keeping customers. |
| computer repair business are ecstatic with a 70% | | | | Although you should do your research and |
| bill ratio. | | | | estimate your costs and revenue, the planning |
| A good example of underestimating costs for the | | | | process should never be about having the perfect |
| Computer Repair business is insurance and | | | | plan. I've seen people spend months (if not years) |
| bonding. If you do business with larger companies, | | | | looking for the perfect plan and never take any |
| they require both and this area is often | | | | action. Use due diligence, go through all the |
| overlooked. Another common area that is missed | | | | necessary steps, but don't get hung up in the |
| is the cost of training and technical resources like | | | | weeds re-writing your plan over and over. |
| manuals and etc. Both can get expensive and | | | | The single most common trait among successful |
| necessary if you want to keep your skills up to | | | | new business owners is they take action. And the |
| date. | | | | Computer Repair Business can be started part |
| One of the biggest decisions in the Computer | | | | time with little risk. In fact, starting out part time |
| Repair Business is whether to go retail location, or | | | | allows you to learn as you go and find out what |
| office building, or warehouse scenario. This can be | | | | works and what doesn't. |
| a huge start up cost and commitment. And there | | | | Hey, this is the first day of the rest of your life. |
| are quite a few associated costs like utilities, | | | | Having a great Computer Repair Business Plan is |
| signage, furniture, and equipment. | | | | good, but starting your business now is what will |
| Part of the decision making process on these | | | | make you successful. |