Starting A Computer Repair Business....

[mainetech]

I couldn't find a forum that dealt with this specific question. So my appologies to the moderators if it is not where you want this posted.

I am starting a small computer repair business based out of my home. I will be doing on site tech work as well as bringing machines to my workspace when necessary. Mainly for Small Businesses and Home Users. With Small Businesses being the MAIN focus. My question is mostly about payment for services rendered and I figured with all these seasoned techs on here I would get some first hand answers.

How is it you assure that your going to get paid for services? I know nothing is set in stone, and no matter what your going to run into a problem every now and then. But if you go out to a job, fix their computer and they give you a check and it bounces. How do you recoup that? Or do most of you just not accept checks for that reason?

Also as far as on hand hardware. I know i'm going to want to have at a least a couple of the most used components for testing and replacement, such as hard drives, Vid Cards, Dvd Drives, Etc.. with regular rotation as prices change so often. But how many do most of you keep on hand? Or would you suggest for a small computer repair company? I have a really good online vendor for products which i'll be ordering through. But i don't dare to just order products as needed as the shipping time would cost me customers.

Also any other suggestions and advice would be much appreciated. I've been working on computers for years but this will be my first attempt at making this a business. Thanks to Everyone In Advance!

[jorsoft03]

Well as far as payments anyways, you'll want to at least require a certain retainer upfront to guarantee at least some cash. Make darn sure you've got everything signed and in writing as far as the work you're supposed to be performing. That way there's no argument about what was supposed to be done, where, when, etc. and the final charges. If at all possible, collect your fee upfront. It's easy enough to take credit/debit cards over checks, too, and that's the safest option if you're worried about it.

If a small business does happen to rack up quite a tab that they're not paying you can get in touch with a collections agency. There's probably a fee on your part but they'll be eager to collect the debt for you and it's better than nothing. That's where the contracts/work orders can come in handy as well. If there's a dispute everything is documented and signed, great for court if it goes that far.

[helix2301]

If you are going to run legit you need to accept sales tax and credit cards we live in a credit world some people cannot lay out $200 or $300 dollars for a repair. Even small business if they are having a slow spell they will use there credit card. Just giving you advice from experience. I been running my own computer repair company for years not out of my house but out of a store front and even if I got on site people ask if they can use there credit card. Also have parts on hand businesses cannot wait 4 or 5 days with there pcs down. PCS help them operate. Just some suggestions.

[mainetech]

Thanks Alot!.. Good information and I appreciate you both taking the time. I definitely plan on accepting Credit Cards. I've been looking into setting up an account to accept credit cards. Any suggestions on who's best? I know paypal. But are their any others that are better that you would suggest?

I do plan eventually to get a small storefront. But I want to get a decent client base first. I've heard horror stories about that so i'm covering all my bases.

The retainer is a really good idea. What do you normally charge for a retainer? Like a set fee? Or a percentage of what the total anticipated charges would be? If so what percent do you recommend?

Also I def understand I need parts on hand. As stated in my last post I know it would cost me customer's if i didn't. My main concern is how much do i need on hand? If i have too much I could be stuck with parts that I can't sell as prices change so frequently. I know it will also be based on how much business I have. I'm trying to find a balance. So say i have to work on ten computers per week. Should i have 5 of everything on hand at all times? Hard drives, Ram, DVD drives, etc? Or is their something else you'd recommend?

I truly appreciate your help. I know no matter what I'm going to make mistakes. But i'm just trying to get a pretty good idea of what i'll need so once this launches I won't be up a creek!

[surgeVel]

Well, as far as parts, I would probably just buy about 5 of every little generic thing (generic cd/dvd drives, hard drives, workstation vid cards, cheap ddr and ddr2 memory, etc) and if you ever need more, just go to a local place and charge the customer for the parts as much as they cost you to buy.

Also, when starting a business, you will have to get all the proper licenses. Probably some service provider license as it doesn't sound like you would need a retail merchants certificate. You would also have to file a DBA (doing business as) with your recorders office and then open up a dedicated business bank account. If it's sole proprietorship, the taxes are easy and you just add them on to your taxes when you file your return.

I know all of this because I just spoke with my local SBDC (small business development center) about getting all my licensing and tax information figured out for my computer business.

As far as credit cards, I think they were mostly talking about getting a machine that accepts cards. Something portable that maybe connects wirelessly instead of through a phone jack. I wouldn't know much about that because all my stuff is going to be online, with a rare local sale here and there. Another solid way to receive payment would be to accept money orders as they have small fees for those who use them and are free for you to cash, plus they won't bounce since it is based on the amount of money someone paid to purchase the money order.

[mainetech]

Thanks so much everyone for your input. You've all been Really HELPFUL!.. Feel free to post anymore information, Tips or Suggestions for starting a computer repair business. I've been reading alot about it, but it's great to hear first hand on what works and what doesn't. Thanks Again!

[jorsoft03]

As far as a retainer fee, most places around where I used to live would charge by the hour. So they'd want like 1/2 of an hour's work (1 hour was usually around $80 so the retainer would be like $40) paid upfront.

As far as accepting credit cards, for face-to-face stuff, I know Quickbooks sells some packages that let you do it. I don't know too much about them but you can check them out here: Merchant Services - QuickBooks

Keep in mind such services will charge you a fee, probably a flat monthly fee (like $30 or so) and a percentage of each sale, like 4% or something. So take that into account when you're making up your pricing scheme.

[Formerly the latter]

Also on another note, you need to make sure you have some legal backing. When you touch a users computer, that automatically makes you liable for anything that goes wrong with it.

Let's say in the scenario you fix a guys computer, and all is good. The next day the computer slows down a magnificent amount, and the stupid user got himself reinfected right after cleanup. Then he can either do one of three things. He can either ask you to fix it again, blame you for the mess up, or have you taken to a court of law to be sued.

That's why you have the Contract and Commercial Laws

If you have an MBA I'm sure I am just telling you second information to what you already know.

[mainetech]

Excellent. Yes I know i need a business license, File a DBA and i'll need Liability insurance. Any idea how much insurance costs? Any companies you'd recommend to get insurance through?

Thanks alot for all the great information!.. That Quickbooks merchant services looks promising!

[Formerly the latter]

I'll check with my business adviser, and friend, about your questions when he gets on