In July, I published an article called Top 5 Reasons Why I’m Starting A Computer Support Business. Being the kind of person that likes to see things from all angles, I decided to take the opposite view and look at some reasons why starting a computer business may not be such a good idea for me. This exercise was difficult, since obviously I DO want to start a business, but I feel it’s good to weigh the pros and cons of any major decision in life. Starting a business is not going to be all roses and cupcakes, so this list may be a good slap in the face to anyone, including me, who thinks they’ll be able to breeze through a life as a computer consultant. Here’s my list of the top 5 reasons why I probably shouldn’t start a computer business:
The Competition is Fierce
Of all the businesses one could start, computer repair is one of the simplest. Also, according to a report by the US Census Bureau, in 2003, 69 million people had computers in their household. I’m sure that number has skyrocketed since then. That means the demand for computer technicians is greater than ever before and it’s sure to rise. As a result, computer repair businesses are popping up like weeds all over the place. I picked up a recent copy of my local phone book to see what kind of computer repair businesses were out there. Just in my county alone, there are over 150 choices for computer repair! That means that when a person’s computer breaks and they want help, they have 150 choices other than me. 150 people who potentially have more experience, money, time, and skill than I do. There’s no denying that this is a hot industry and the supply might end up outweighing the demand.
It’s a Money Pit
Althought there is potential to make big bucks in computer consulting, that money usually comes from contracts with small businesses and corporations. It takes time to build a network of customers. At first I’m going to be putting more money into tools, marketing, and driving from customer to customer than I will get back from them, especially starting out with residential clients. It’s a tightrope walk balancing income and spending and repeat customers are never a sure thing.
Free Time Gone
I like spending time chilling with friends, catching the latest flick at the theatre, snowboarding, running, and playing music. By choosing to start a computer consulting business, I will surely loose alot of the precious free time I have taken for granted by working a 9-5 job. Not only will it take time to plan, grow, and advertise my business, but I’ll also be driving from place to place to service computers. At first, I’m going to want to service any customer that will hire me, no matter how far apart they live, so alot of my initial time will be spent on the road. Factor in time to keep up to date on the latest technology and free time is going to turn out to be a mythical beast that I only catch a glimps of around Thanksgiving and Christmas.
Skills Need To Be Constantly Updated
Technology is the most dynamic industry in the world, and things change on a daily basis. What was once the best anti-virus program yesterday may be obsolete tomorrow. I’ve got to make sure I keep up with the latest trends and technologies to make sure I’m not blind-sided by something new when I show up to someone’s house. Not to mention, if I want to score the big contracts, I’ll need to keep my industry standard certificaitons up-to-date, like CompTIA A+ or MCSE, which take time and money to study for and pass.
Problem Customers
As if all that isn’t enough to worry about, the one primary, solitary, most important thing I’ll always need to keep in mind is making my customers happy…customers that will yell at me, blame me for breaking things that I didn’t touch, and refuse to pay me. I’ll need to perform service with a smile every time, be a great communicator, and (hopefully) fix problems quickly. I’ll also need to spend time trying to keep customers by sending out newsletters and repeat customer coupons. It will be a while before I’ll have the luxury of picking and choosing my customers, so until then, I’ll have to make due with whoever wants to hire me, no matter how poorly they may treat me.
As you can see, the list makes my prospects very daunting. It’s going to be hard work and VERY challenging to start and run a successful computer consulting business. But, with time, research, drive, passion, and continued support from all of you, I’m confident I’ll be able to face and conquer the things in this list.
What other reasons can you think of?
“If I had only known, I would have been a locksmith.” – Albert Einstein
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Well, to take things point by point… I think you answered your own question about competition with the number of computers out there. You need only a very tiny slice of a huge pie to be comfortable – a fraction of a fraction of a percent. There’s plenty to go around. That said, it can be hard to stand out from the crowd.
I don’t know how much there is to spend unless you have millions to blow on advertising. Otherwise it’s really just luck and word of mouth for the most part. That’s my least favorite part of the biz, and what I’m least good at though.
Free time and being able to do what *I* want is why I’m still here 10 years later. It’s not for everyone, but I can make more money in less time than I would if I were working for someone else. I’m busy when I need to be. On the other hand yesterday I rode my motorcycle to the airport and flew my plane all afternoon, because I could. No one else to answer to and I wouldn’t have it any other way – I could never imagine going back to work at a “regular” job. That said, it IS a “lifestyle business” – you’re always on call and the “office” always beckons. During commercials I’ll often get up and check my email, but I don’t mind it given all the freedoms I have.
You do need to stay on top of technology, but if that’s a chore then you’re not in the right business. I don’t believe in industry certifications though – no one has ever asked for that and I’ve never needed anything like that.
Customers are the reason we’re in business of course, and they really can be a huge PITA sometimes! Can’t argue that point.
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The barriers to entry are very low for this business, and your ability to differentiate is limited. You could hope to compete on price, but then profit margins are squeezed. A tough market to be sure, I think there’s easier money to be made in other markets.
Matt
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@Bill – Thank you for the wonderful response.
Yes, the competition is immense, but as I look at most of my local competition….their websites, the way they answer the phone, I’m finding some gaping holes in their service and I’m hoping to be able to fill those holes.
As far as money, I was mostly thinking about the time it will take to build up enough of a customer base to be able to make a living, pay bills, etc. It’s not gonna happen over night.
Sounds like you’re living the life! And that’s what I hope to have the freedom to do as well. I’m a part-time singer/songwriter and I’d love to have the option of playing a late gig or going on a mini-tour without having to clear it with the “boss” first.
I definitely don’t mind staying on top of tech trends, but at times it can seem daunting and overwhelming!
@Entrepreneur – Luckily I’m not getting into this to make “easier money”. I’m doing this because I love helping people figure out their computer problems and I want to work for myself doing something I love. I’m looking forward to the challenge of making myself stick out of the crowd!
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Not to make this into a discussion forum, but…
That’s exactly it – freedom to do what YOU want when YOU want. And it hurts much less to be working on a problem for YOUR client off hours than it does to be working for your boss off hours. It’s a different feeling when it is YOUR CLIENT.
I had forgotten to mention backup – you need to find some local techie buddies who can back you up (and vice versa) when you’re on vacation or busy otherwise you really do get too tied down and can never go anywhere. It’s not really a cutthroat business. Sure, we’re all in competition, but we cover for each other and help each other out all the time. Like I said, there’s plenty of business to go around. Don’t be stingy and try to hold back “secrets” and compete with everyone – you need them too.
Setting expectations is important. No, you’re not available within 5 minutes 24/7. And that’s ok. Also you do not have to compete on price – that’s what the other guys are doing. I think you DO need to compete on service though. My clients love me and it’s all due to communication. I may not be the brightest techiest person out there, but I always solve the problem and my clients always know what is going on and I always explain as much as they want/need. I’m more expensive and I’m worth it (repeat that to yourself too!) Last year I noticed that my website looks like everyone elses – sure, I do tech support, security, wireless, yada yada. But I couldn’t figure out what some of my competition really did, who they really work for, etc, so neither could my potential clients. That’s when I overhauled my website (a never-ending project) to try to focus on WHO I’m helping and HOW, rather than what I do.
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@Bill – Discuss away! Good point about having people to back you up. I’ll definitely have to look into that when I finally take this thing full-time.
I can’t wait to get out there and see how I’m able to relate to clients. I’ve been good at it so far in my various career positions and the occasional odd job I do on the side, but it’ll be interesting to see if I can sustain that customer service when I’m doing it day-in and day-out for myself.
I checked out your website and it really is nice…a very different approach to what I’ve seen. I’m thinking about having a section on this site dedicated to great “computer guy” websites, and yours will definitely be included.
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One other thing you could implement before you’re full time is something like my Good Service Plan. That will help with cash flow, help people out, get you established, and won’t impact your day job – everybody wins. You will have to get up early for the quarterly checkups though! I tend to bunch them up and do as many as I can at one time.
What I didn’t mention above is something I’ve known for a long time. I can keep a boss happy. I can keep clients happy. But I can’t do both at the same time. Now I don’t have to.
Thanks for your comments on my website – now I just need everyone in my area to agree!
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After establishing my computer repair shop and being successful for 10 years with 2 employees, i decided to close my shop and become a corporate employee.
My Friends, Customers, people taught i was crazy i was making good money, had a good reputation and well known. But the biggest problem with small computer shops is you aren’t learning or advancing in your career. The cons:
You still repair standalone home or office computers
)
Same problems over and over again
You’re not working with large networks (The biggest was 25 worksation machines with one server…
Not implementing turnkey business solutions
After working in a large corporation and getting the experience required i fill now is the time to re-start on a different business getting sub-contracting deals for big corporations.
Don’t get me wrong i loved my computer repair shop days, but working in only that field will limit the oppurtinities available out there.
Cheers
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Jack – Thanks for sharing your insights.
That’s very true, the computer repair field is very limited in the home/home office/small business world. I’ve spent the last 5 years in the corporate field, so I’m kind of looking to go the opposite direction of what you did.
Hopefully I’ll be able to use the experience I’ve gained from the corporate world in my business…and I’ll always seek to expand and diversify my offerings.
This is one of those things that I want to do before I die. Who knows, it may not work out, but I want to give it shot while I’m still young! Then I’ll always have the option of returning to the corporate world if I so desire.
Thanks again for stopping by and I hope you visit often to share more of your wisdom.
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