Currently, I'm an independent contractor and I work for companies like IBM, HP, ZIP Installs, etc. etc. doing install jobs as well as part swaps and repairs on computers and many other such devices.
Although I'm paid $30-$55 per hour, there's expenses involved. For one, most of the places I go to are 30-60 miles or more from my home. Although my car does get about 34 miles per gallon, with gas, insurance, and wear and tear on my vehicle... not to mention my time on the road, I'm not getting paid as well as I could be. But still... after taxes and other such expenses, I figure I'm being paid about $24 per hour but that doesn't include my time on the road. Although things are looking better for these jobs... I'm improving my skill, taking on new work... which will, in turn... make more money, I'm sure.
I had this idea though, because it would almost be impossible for me to do these on-site jobs full time (there just isn't enough work), I could open up my own computer shop and do work for other people, on the bench basically while I still have my on site jobs.
In this computer shop, I would:
1. Sell a small amount of new computers as well as used computers, by appointment only or on my website (I do NOT want to babysit a store. Been there, done that.) I'd like to hit online sales big. I would especially want to buy used computers like from colleges, and resell them.
2. Give the customer an option of me driving to their home to fix a computer, them dropping it off when I'm home, or I'd have a drop off box for when I'm not home. They'd just fill out a form, open a door in the wall... put the computer in the cavity, lock the door and shut it.
But I see a few problems with this and it sort of makes me want to proceed with caution.
First, it is worth noting that residential jobs are not that great. People expect you to somehow come and fix their computer in minimal time and with minimal parts and that'd you like charge them $20 or something. It doesn't work like that. Plus, when I'm contracted out to say... replace a hard drive, I can be sure that the part is either shipped to me directly, or that it'd be on site when I get there. When I have to go on site to diagnose a computer problem, I most likely will not have the part with me and often times the End User expects that you're just going to pull it out of your hat and get the computer fixed. So, I have to order the part, bill the EU for it... and come back at a later date to install it.
Secondly, its hard to compete with companies like Best Buy. Fortunately for us, best buy is about 50 miles from here, we live on a main high way, 5.7 miles from the nearest town and the town is small enough that word gets out fast. Plus there isn't much for computer shops around here. I feel like if I put one in, it would greatly benefit the community. Also, I feel like if I can offer better services than best buy and radio shack can... then I'll be known for my services, and I'll be known for how I stand behind the products that I sell... and I think that will generate sales.
Thirdly, I don't want to grow so fast that I can't keep up with it... and I'd have to hire a bunch of geeks to work for me, or go out of business.
But the fact remains, whether I have a store or not, I'm going to need a office and a storage room to store my gear... at bare minimum. I'll need an office large enough to hold all my filing cabinets, my desk, my copier, fax machine, my servers, my computers, etc. etc.
As far as location goes... I'm at an advantage. My dad is buying a large home on 3.1 acres. The place used to be a cabinet making company. They were HUGE back in the day. There's three big outbuildings. I would need to remodel one of the outbuildings for use with my business... again, whether I had a computer store, or not. And with that, I'd need to pay for electricity and heat most likely not to mention rent (Taxes go up to $7000/year if we have a business here) and again, thats whether I have a computer store... or not. In addition to all those expenses, we are in an area where we can't get a good internet connection unless we pay an arm and a leg for it. T1 is $695 and for a satellite connection that will suite our needs, it looks like it's gonna cost $399/month. I don't like satellite but I have experience setting up home made routers and configuring squid... that makes it a lot better. Plus, I don't have to pay the whole amount... it will be split among those using it here.
So, basically... most of my expenses are the same whether I have a store or not. And I'll still pay for internet, and for a phone line, whether I use it for online sales and to push my website... or not. And, the reality of the matter is that either I've got to make a ton of money... or this isn't going to work out very well. True, my pay is still better than I'd make at the farm during the summer ($8.50/hour).
Your thoughts would be appreciated.
Although I'm paid $30-$55 per hour, there's expenses involved. For one, most of the places I go to are 30-60 miles or more from my home. Although my car does get about 34 miles per gallon, with gas, insurance, and wear and tear on my vehicle... not to mention my time on the road, I'm not getting paid as well as I could be. But still... after taxes and other such expenses, I figure I'm being paid about $24 per hour but that doesn't include my time on the road. Although things are looking better for these jobs... I'm improving my skill, taking on new work... which will, in turn... make more money, I'm sure.
I had this idea though, because it would almost be impossible for me to do these on-site jobs full time (there just isn't enough work), I could open up my own computer shop and do work for other people, on the bench basically while I still have my on site jobs.
In this computer shop, I would:
1. Sell a small amount of new computers as well as used computers, by appointment only or on my website (I do NOT want to babysit a store. Been there, done that.) I'd like to hit online sales big. I would especially want to buy used computers like from colleges, and resell them.
2. Give the customer an option of me driving to their home to fix a computer, them dropping it off when I'm home, or I'd have a drop off box for when I'm not home. They'd just fill out a form, open a door in the wall... put the computer in the cavity, lock the door and shut it.
But I see a few problems with this and it sort of makes me want to proceed with caution.
First, it is worth noting that residential jobs are not that great. People expect you to somehow come and fix their computer in minimal time and with minimal parts and that'd you like charge them $20 or something. It doesn't work like that. Plus, when I'm contracted out to say... replace a hard drive, I can be sure that the part is either shipped to me directly, or that it'd be on site when I get there. When I have to go on site to diagnose a computer problem, I most likely will not have the part with me and often times the End User expects that you're just going to pull it out of your hat and get the computer fixed. So, I have to order the part, bill the EU for it... and come back at a later date to install it.
Secondly, its hard to compete with companies like Best Buy. Fortunately for us, best buy is about 50 miles from here, we live on a main high way, 5.7 miles from the nearest town and the town is small enough that word gets out fast. Plus there isn't much for computer shops around here. I feel like if I put one in, it would greatly benefit the community. Also, I feel like if I can offer better services than best buy and radio shack can... then I'll be known for my services, and I'll be known for how I stand behind the products that I sell... and I think that will generate sales.
Thirdly, I don't want to grow so fast that I can't keep up with it... and I'd have to hire a bunch of geeks to work for me, or go out of business.
But the fact remains, whether I have a store or not, I'm going to need a office and a storage room to store my gear... at bare minimum. I'll need an office large enough to hold all my filing cabinets, my desk, my copier, fax machine, my servers, my computers, etc. etc.
As far as location goes... I'm at an advantage. My dad is buying a large home on 3.1 acres. The place used to be a cabinet making company. They were HUGE back in the day. There's three big outbuildings. I would need to remodel one of the outbuildings for use with my business... again, whether I had a computer store, or not. And with that, I'd need to pay for electricity and heat most likely not to mention rent (Taxes go up to $7000/year if we have a business here) and again, thats whether I have a computer store... or not. In addition to all those expenses, we are in an area where we can't get a good internet connection unless we pay an arm and a leg for it. T1 is $695 and for a satellite connection that will suite our needs, it looks like it's gonna cost $399/month. I don't like satellite but I have experience setting up home made routers and configuring squid... that makes it a lot better. Plus, I don't have to pay the whole amount... it will be split among those using it here.
So, basically... most of my expenses are the same whether I have a store or not. And I'll still pay for internet, and for a phone line, whether I use it for online sales and to push my website... or not. And, the reality of the matter is that either I've got to make a ton of money... or this isn't going to work out very well. True, my pay is still better than I'd make at the farm during the summer ($8.50/hour).
Your thoughts would be appreciated.
