Category Archives: Maintenance & Repairs

Starting Computer Repair Business Mistakes!

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Starting computer repair business mistakes are not unlike any other business start up mistakes. Under capitalization, not planning for cash flow and operating costs, unrealistic sales and revenue projections, and no marketing plan, are all common mistakes.

Lets take a look at these mistakes as they apply to the computer repair business in particular. Computer repair businesses fall under the services category, even though many might sell some equipment both for replacement parts and new models.

Since start up and operating costs are the first areas most new owners try to address, that’s a good area to discuss first. It’s easy to overlook some of these start up costs until you actually start working in your business. That’s the number one mistake.

Start up costs can be very reasonable for a non-retail computer repair business. If you plan on going retail, you will need a pretty good chunk of money for the initial lease, build out, and signage. But we’ll save that scenario for a different article.

Since the owner/operator will be going to the client (instead of the client coming to a retail location), a reliable vehicle is a must. And with gas and vehicle prices being what they are, transportation costs should include fuel and maintenance in addition to the purchase or ongoing payment cost.

A good transportable tool kit, maybe some common repair parts, and other basic accessories are also necessary. You might even consider a smock of some type to protect clothing (I can’t tell you how many shirts I’ve lost to toner, dirt from shop areas, and other unknown threats).

Administrative costs should include items like cell phone, invoices, business cards, insurance (both health, auto, and liability), accounting advice and software, any local licenses, and reference materials (manuals, etc.).

We’ll break out any advertising or marketing costs due to the fact that they will be ongoing and not just start up requirements. Depending on the market area, and what methods are planned, advertising and marketing costs can be considerable.

The next biggest mistake falls under both the sales and revenue projections and operating expense and cash flow. These two areas go hand in hand due to the relationship. You cannot bill 100% of your time, end of story.

If you bill 60% of hours, you are doing well above the national average of owner/operator type businesses. There are several reasons, but the biggest is that you get to change roles many times during working hours. So figure on 35-40% billable hours. You can obviously work 60 hours (and I often do) so that 35-40% can represent more hours.

Along with the number of hours, due to the nature of the business, you really don’t know how many service call requests will come in during any period. After doing this for 30 years, I still don’t know. Of course the more long-term clients you acquire, the more ongoing activity you will have.

Cash flow can always be an issue. The more ongoing clients you get, the more you will carry receivables. Short quick service calls (under $200) should be invoiced and collected on the spot. Larger and ongoing projects should be billed upon collection and if you offer terms, make sure you can live with them.

It’s very easy to get to a point where you get to spend office time chasing receivables. It’s not fun, and takes away from billable hours. You can also get burned from time to time. I offer terms, but only after a client has paid for the first time and established that the amount of work and billable hours will be worth the headaches.

And the third, and probably the most important to keep your business providing revenue, is a realistic marketing plan. You will need new clients every week, and should implement methods that are ongoing. The accordion effect is difficult to avoid in any small business.

That’s where you get too busy doing service calls and let your marketing efforts slip. When you get over the busy period, you sit there since you quit marketing and there’s a time lag to get new business. So no matter how busy you get, save some time for your ongoing marketing.

One way I’ve figured out to help overcome this situation is to have some flyers printed up that I send out everyday. When I go to a new service call, I jot down 10-15 businesses name and addresses near the new client. When I get home or before I leave for work the next day I grab the flyers and put the past days addresses and drop them in the mail.

And if you want to get a little more cost effective, you can wait a day or two until you have enough ready that you can use the lower bulk mail rate. Either way, you can’t go wrong if you adhere to this system.

Starting any small business is a challenge. The Computer Repair Business is no different. But it is one of the few service type businesses that you can start with a very small investment. The key to success is not making the common mistakes above.

Pay attention to details, be aware of the pitfalls, and try to compensate for the known problems. Having your own Computer Repair Business can be quite profitable if you can overcome these common mistakes.

John Dow has been in the Computer Repair Business for over 30 years. You can learn more about starting your own computer repair business here: Starting Computer Repair Business.

Are The Yellow Pages Still Useful In This Internet Age?

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I grew up before microwave ovens, fax machines, cell phones and personal computers. I finally got a Mac in 1984. Ten years later, a cell phone. I started working a sales consultant for the Yellow Pages in 1980 and figured that they would be around forever. But look at us now. We are hooked on Google searches and Blackberries as our PDA’s. What a difference a generation has made. So, do I or anyone else I know, still use the old printed directory?

Let’s step back a moment in time. I always considered the Yellow Page book the bible for the consumer searching for a local business, especially during an emergency. Suppose you go to the garage and the car won’t start. Where do you turn? You can call your car dealer and discover they can’t get you any help unless you can tow it in. So you grab the YP book and find a mobile repair service that can come to you. Fast forward to today. Sure, you can sit in front of the computer and try a local Google search, but there are a few issues; Internet issues.

Do you have fast broadband and an always-on connection? When the merchant’s ad comes up on the computer screen, does it show only the name, address, and phone number like with lots of Internet listings?  At www.104Inc.com, the large ads are filled with tons of information from your logo, maps, coupons, pictures and much more. Also, where do you write the relevant info you need? On the screen? At 104inc.com you can save it right to your favorites or even email it to yourself.  Also, how many listings can you see at one time on the web? When you visit 104inc.com you will see only 10 listings at a time with very user friendly search functions. That way, you can see all the choices. Sometimes I even print out the ad to take it with me.

You see, the net has many advantages to the yellowpages. The book is always slower to access and probably has outdated information. You can even access 104inc.com from your cell phone. That way I can find a towing service if I break down on the road. Try that on your Blackberry or iPhone. I still get the printed newspaper and some magazines. Yet I do massive amounts of research on the Internet. They are both useful tools for the consumer.

And if you are a business-person reading this article, I imagine you are wondering if your YP dollars should be going to the printed page or the net. I would have both. Refer you to the www.104inc.com website. The whole world is Internet savvy and has quick Internet speed. If you still need to reduce your Yellow pages costs, let 104inc design an effective ad for less.  You can save 50-75% off your advertising budget and the best part is, you can use the 45 day free trial and never spend a single cent.  That’s over a $150 value! All this information could be found on their website, so don’t forget to visit them today.

Our story at 104Inc is simple: We like to help others. Imagine a team that consists of family and friends who all have the same passion in life. Imagine a group of individuals who sacrifice so much everyday in-order to attain their goal and one day live their dream. Now, imagine the amount of effort, motivation and discipline it takes for ordinary people like us having a burning desire to accomplish something extraordinary. Here at http://www.104Inc.com, we have the opportunity to do all of that. We have, the aspiration, the zeal and the motivation to help others in areas where they are less fortunate, including our own family and friends. It’s Simple. It’s 104Inc Approved.

Credit Cards – Can you Really Live Without Them?

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Credit Cards – Can You Really Live Without Them?

In 2007, having a credit card is no longer a luxury or even a convenience – it’s a necessity. You can’t rent a car, check into a motel, or order online without a credit card. If you want a cell phone, you’ll probably have to purchase prepaid minutes – at a premium – unless you have some plastic with your name on it. And without a credit card, you either have to carry around a lot of cash, make frequent trips to the bank, or hope that the stores you patronize will accept your personal checks.

Credit Cards Can Be Lifesavers in the Case of an Emergency

Worst of all, people who lack sufficient access to credit are the most likely to use payday loan services. Later in this series we will explore this subject in depth, but for now, just consider this: If a single mother is hit with a sudden, unexpected expense – say a car repair for $600 – what can she do if she doesn’t have the money? She needs the car to get to work, and she doesn’t know anyone who can afford to lend her the money out of friendship. So she decides to use the local payday loan shop and ends up paying a 530 percent APR (annual percentage rate) interest. If, instead, she had a credit card with at least $600 of available credit, she wouldn’t have had to use the payday charlatans, and would have paid a much, much lower interest rate. Many people who use payday loan services, even once, fall into an inescapable spiral of debt, where they work all week to pay back their payday loans, and then have to take out new payday loans to meet their weekly expenses. People who use their credit cards responsibly never fall victim to this scenario.

Credit Cards Can Help With Budgeting

Credit cards help spendthrifts easily track their expenditures. One simple technique is to use one credit card to automatically pay your recurring monthly expenses (phone, cable, utilities, etc.), another to buy your groceries and gas, and a third for all other expenses (entertainment, eating out, etc.). When you get your bills each month you can compare how much you spent on your wants versus your needs and make adjustments as necessary.

Protections Offered by Credit Cards

Although the media likes to focus on the “epidemic” of identity theft, the truth is that using a credit card is much safer than using cash, a check, or virtually any other means of exchange. If you’re carrying cash and your wallet is stolen, you’ll never see a dime of your money. If a merchant cashes your check and refuses to grant you a refund, chances are, you’re out of luck. But in either scenario, using a credit card would have offered you protection.

If, for example, your wallet full of credit cards is stolen, you will not be liable for any more than $50 of fraudulent charges, per card. This is the legal limit, but in reality, most card issuers don’t even hold you liable for the first $50 – they just stick the merchants with the bill. And if a merchant refuses to give you a refund that you deserve, you can file a “chargeback,” in which the credit card company will side with you 99 percent of the time. Paying in cash or with a check offers no such protections.

Your Credit Card – Don’t Leave Home Without It

Credit cards are ideal for traveling abroad because they automatically convert to the local currency. This means you won’t have to waste time with the money changer or carry around several foreign currencies, and of course, not carrying cash makes you much less susceptible to pick-pocketing.

This concludes the two-part introductory series to the course. In the weeks to come, we will examine the consequences of bad credit and how to repair it; learn about credit agencies and credit reports; examine the various types of credit cards and credit card alternatives, and we’ll take a deeper look at some other consumer finance topics. The main thing to understand is that credit cards can be wonderful tools that greatly enhance our lives. All that we need to do is be informed, active, and responsible users of these powerful little pieces of plastic.

Stay safe.

Sincerely,

James

http://www.CC-Yes.com