If you are fascinated by technology, skilled at troubleshooting and fixing technical problems, then you should consider starting a computer repair business. Industries today are dependent upon the use of computers and the market for computer repair businesses has great potential.
A computer repair business fixes and maintains computer-related problems, but that’s not all. Your services can extend to setting up computers, soft wares, networks, updating systems and security, offering on-site services, and selling computers and computer-related accessories.
While most computer repair businesses you see focus solely on PC repair, considering current market demands you can add commercial services to yours as well. Not only will it make your business more interesting, but it’s also going to attract a lot more potential customers.
Launching yourself into a business will require you to do proper research. Spend time on creating, planning, marketing and most importantly financing your capital. The more prepared you are, the higher are the chances of running a successful computer repair business.
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Industry Trends
A study conducted in 2019 suggests that due to the increasing affordability of electronics, people are now deciding to replace their computers when they break rather than replace the component or part of the computer.
While at first glance this may be discouraging, knowing your customer and customer needs will help you go a long way in any type of business you decide to pursue.
To know your industry, you should also know the other industry that may be directly or indirectly, but more surely are affected by the computer industry.
These include the cell phone industry, appliance industry, and graphic design industry. When making decisions about the future of your business and pricing your services and products right, you can take a hint on which way the computer industry is headed by looking at these e.g. growth in graphic design probably means people are going to start using their computers more for designing.
Another example is the growing cellphone industry. Because the mechanics of a smartphone are becoming more and more similar to that of computers, computer repair businesses also work on smartphones now. Not to mention, there is a higher chance that your customer would like to repair their $1000 phone rather than a $600 computer.
Another fact is that you or your technicians need to stay up-to-date with all the latest technology. Because computers are evolving so quickly and people always like to buy the latest technology, you need to learn how to fix it when its system goes down.
Due to little to no understanding of its mechanics by local technicians, customers usually prefer taking their product back to the original manufacturers e.g. Apple Care for Apple products.
How Much Can You Potentially Make in a Computer Repair Business?
According to glassdoor.com, you can potentially make anything between $22,000 to $62,000 a year. Commonly, the more you invest in marketing, advertising, and expertise, the higher will be the return. Of course, other factors such as the location of your store, services, and products that you offer, and the salaries of your employees also come into play.
How you charge your customers also matters. Most businesses have a flat rate for their services, while other businesses may charge at an hourly rate e.g. if your business has a large cliental for setting up network or systems of computers.
The smarter move would be to start your computer repair business as a part-time job. Not only will this give you an idea of where your business is headed, but it will also cost you fewer expenses to bear in terms of employees’ salaries, utilities, inventory will run for longer.
Skills Required
Most entrepreneurs do not have a business degree that backs their successfully launched business (or businesses). This is why these are the following skills you will need to run a computer repair business:
- Relevant Technical Skills. You don’t have to be a computer major to understand what’s wrong with your computer and how you can fix it. But you should have the right computer repair experience. Usually, customers would expect you to have extensive experience in the profession however there are many courses available online which can get you started on your way.
- Management Skills- A good understanding of how to keep your business and electronic spare parts in order would require you to have some organizational skills. It is also very important that you’ve provided your services and products on time to the customer.
- Customer Service Skills. Customers usually walk into the store already frustrated with their computer or electronic gadget. You must know how to speak and treat them to have them visiting back again for any future queries.
- Problem-Solving Approach. Technicians are faced with unique technical problems every day. So it’s essential to have problem-solving skills to identify and solve the computer’s problem.
Costs to Start a Computer Repair Business
A home-based computer repair business can cost you around $2500 while a store-front business can cost you at least $10,000. If you’re interested in launching a home-based start-up first, then we suggest you initially provide your services on an individual basis.
By that, we mean freelancing your skills. This can help you create a steady clientele and reputation while simultaneously funding your future start-up. This will also help you gain some professional experience in case you’re a first-timer in the field.
Since the costs for starting a computer repair business is lower compared to most other businesses, you should also consider building up your saving. Your business might not initially generate the kind of profits you forecasted.
This is why, you must have a financial cushion to support you when your returns can not pay your rent, utilities, and employees’ wages or salaries. Ideally, you should also consider not quitting a job if you already have one. This will help you pay any bills due without them needing to worry about loans or credits.
Here are some common costs you may incur when launching your computer repair business start-up:
- Technical equipment e.g. laptop or desktop, USB drive, and tools for repair
- Inventory of spare parts.
- Workspace. (Furniture for support).
- Enough savings or capital to provide you with a 6 months’ financial cushion.
Steps
1. Create a Business Plan
Odds are that your start-up will successfully kick off if you have created a business plan. Not only will it make your business’s objectives clear, but it’s also going to save you a lot of time when taking the next big step for your business. Moreover, this will help you choose a suitable name for your business and define it more clearly.
Here are some questions you can ask yourself when creating your business plan:
- What products and services are you planning to offer?
- Who is your target market/ Who are your potential customers? Individuals, firms, or both?7
- Where do you plan to operate your business? At home, at a store, or provide on-site services?
- How do you plan on financing your business? Through a bank or start-up funds?
- What kind of competitors do you have? How hard will your business need to work to stand out? (What is your marketing strategy)
- What is your projection for budget and income for the first five years of your business?
The most important question that you should be asking yourself is: What kind of entity will your business have? Define your business structure and how you plan on operating it.
Decide whether you want to be the sole owner (sole proprietorship), venture with a friend or two (partnership), or register it as a company (LLC). Each entity has its pros and cons. A business plan can help you stay out of legal trouble.
2. Financing Your Computer Repair Business
To finance your computer repair business, you need to have good credit. A personal investment of 20-30% will allow you easily get a start-up loan. This margin is easier to meet than when investing in other businesses as costs to starting a computer repair business are usually low.
In the US, SBA (Small Business Administration) works with the development sector and institutions to loan money to small business owners. SBA is an independent agency of the federal government. Meaning once your start-up loan is granted by them, it will become easier for your business to avail of loans from a bank as you have already been approved by a government agency.
Another option is looking for angel investors. Several developing countries have started incubations centers where their citizens can apply for operating their businesses.
Annual or semi-annual cohorts are held which allows new businesses to apply for a spot. Incubation centers provide seed funding, office space, workshops and seminars, and mentoring required for you to successfully manage your business.
Loans, grants, and investors require your business to have an official business account. This is why you should have a separate business account. This will also make it easier to track your finances.
3. Where to Start your Computer Repair Business
How and where do you want your customers to get in contact and approach you? Where are you going to work on repairing their computers? Do you plan to have business hours? Your store or business location will help you figure that out.
Home
Having a computer repair business at home eliminates rent costs. And in case you want to make an office, it still significantly lowers your overhead since you will not be paying for that office space. You won’t have to go through the trouble of reaching your workplace on time when it’s next door. So your commuting hours are also eliminated.
On the downside, your privacy might be compromised in terms of balancing your personal and professional life. Your family might compete for attention if you are busy all day dealing with customers. (To combat this problem, you can consider providing pick and drop services for customers’ computers.)
Store
A brick-and-mortar store will not only be suitable for your employees, but a good location will also attract a lot more potential customers. A store provides brand visibility and helps your potential customers to become aware of your business. Cost and expense may increase in the case of utilities, rent, insurance, but it also shows investors and customers that you are serious about your business.
Provide On-Site Services
This method would be very convenient for many customers and also, you. Customers will not need to carry their desktops all the way, while you don’t need to worry about delivering their computer on time.
This also means no more added expenses of a storefront. It provides a more separation of your personal and professional life. This will also allow you to concentrate on one job at a time. This means quick service and customers love quick service.
However, the balance between your personal and professional life will be affected. Clients can be calling you anytime and anywhere. You will need to carefully plan your appointments at certain jobs that may take longer than expected. This also means considering buying a vehicle or bike which will allow you to travel longer distances and reach your customers on time.
4. Marketing and Pricing Your Services
Creating a marketing strategy will be essential for defining your business and what type of customers you want. Nowadays, creating social media platforms allows potential customers to easily get to know about your products and services and contact you in case of queries. Online advertisements also cost much less than physical posters and flyers.
Some marketing strategies for your computer repair business include:
- Attending networking events
- Email, text message, and spreading flyers about your business
- Promoting through social media posts and online advertisements.
Researching about your competitors will help you learn more about how much you should be charging for your products and services. Creating a marketing strategy in line with this will attract a lot more potential customers.
Do not go for providing below-the-market rates, as this will become difficult in the future considering the demand for your services. This will also attract a whole other set of customers who will not be willing to pay for your services once you decide on increasing your rates. Try to create a balance where you can pay your salaries well, as well as pay off expenses e.g. rent, tax, and insurance.
5. Get Certified
Some countries such as America, require a computer repair license. In addition to this, a certification of certain technologies will give you an edge in the market and let your customers know that you have the technical expertise to meet their needs.
You may also check with your competitors and see what kind of certifications they have. Get a certification that sets your repair business apart from others.
Some common certifications for computer repair technicians are:
- CompTIA A+ Technician
- Cisco Certified Network Associate (CCNA)
- Certified Information Systems Security Professional (CISSP)
- Microsoft Certified Systems Engineer (MCSE)
- ACMT (Apple)
- BICSI Technician (BISI)
6. Get Insured
You should also plan on purchasing insurance for your business, this will help you stay out of legal trouble. Some common insurances for a computer repair business include:
- General Liability Insurance. This protects the business in case a customer is harmed while on the business’ property.
- Worker’s Compensation Insurance. This protects the business in case an employee or worker is harmed or injured while on the job
- Commercial Property Insurance. Covers cost of business property or equipment is damaged.
- Fidelity Bond. A voucher that insures you or your employees are not stealing from a customer. If a theft occurs, this bond can help repay for stolen items or funds.
- Professional Liability Insurance. This protects the technician if a customer decides to sue them for committing a mistake while repairing or not providing a service as promised.
- Cyber Liability Insurance. This protects your business when it is accused of causing the client’s computer to be hacked due to a technician’s action or lack of action.
Other insurances you may consider are:
- Commercial Auto Insurance. Covers expense if the vehicle used for delivering products or services to your customer is damaged.
- Business Owner’s Policy. This combines general liability insurance and commercial property insurance. This insurance comes at a lower rate than when you purchase each insurance separately.