“How do I successfully run a computer consulting company out of my home?”

It’s actually really easy to do.

First Step – Your Image
First and foremost, you really have to commit yourself to projecting a professional image.  It is really easy to do that. You need to make sure clients see you in a professional way through your marketing, your 1-800 number, your business cards, your website, and other elements like magnetic signs on your car.

When I first started out, and didn’t have any clients, I got polo shirts made that had my logo right on the chest.  So, I had a brand, I had a color scheme, I had a logo, I had a website, and I was running it out of my home.  So, I did all of the work in house, but nobody ever knew that I was running it out of my house. All they saw was a 1-800 number, they saw professional ads, they saw me in a uniform, they saw my logo on my uniform, they saw my business cards, and they saw signs on my car. Each of these things were like little check boxes being checked off in their minds that helped them come to a conclusion that I was a professional company.  So, that’s the first thing. You want to project that professional image, and it’s not expensive or hard to do.

Second Step – Your Business Model
The second thing you need to think about is what your business model is going to be.  You could run this business out of your home for the rest of your life.  You could run a million-dollar consulting firm out of your home if you wanted to.  I have seen it done.  I’m here in Pittsburgh, and I have a client locally who has been doing this for many years. He runs the whole thing out of his home and people love it. His clients even come to his home to drop their computers off and he makes a lot of money.

Sample Business Model #1
The first business model that’s easy to run when starting out is providing all in-home appointments.  In this scenario, anytime someone schedules an appointment, you will go to his or her home or business and work on the machines there.  Now, if you run into a problem on site and you need to spend more time on the computer, then you would tell your client that you have to take the computer back to your shop for an ‘advanced diagnostic’.  With this model you never have them drop their computer off or pick it up at your house.

Sample Business Model #2
Now, the second business model is the pick-up and drop-off model. I am a big fan of this model.  In this scenario, anytime someone schedule’s an appointment with you, you pick up their computer, fix it at your house, then drop it off the next day.  The key is to not make a million trips. You want to create a weekly schedule on certain days such as Monday, Wednesday, and Friday. Pick up all the computers at one time of the day, and drop them off at another time of the day.  You want to build your schedule and organize it so that you are combining trips. The pick-up/ drop-off model is very effective because clients don’t have to wait for you to fix their computer in their house and they don’t have to ‘lug’ their computer across town to get it fixed.  Also, you can take your time repairing the computer, and most importantly, you can fix multiple computers at one time.

If you run a service like the Windows Renew Service, you’ll make between 75 and 100 dollars per hour.  With the pick-up / drop-off model you can service 3 to 4 computers at one time in your home. As a result, you’ll end up averaging upwards to $200 an hour.

Conclusion
If you’re running on a tight budget, than I recommend you strongly consider one of the above two business model’s as the structure for your business.  Once you get started with one of these models, you can either continue to run it out of your home or you can transition into a storefront.  I don’t recommend starting out with a storefront if you are strapped for cash because there are a lot of unnecessary expenses involved.  It’s going to take a while to get your business going. It will take a few months to build your base clientele.  So, their really is no point in having a storefront and paying 3 to 4 months worth of expenses when you are not going to have the clients established yet.  As a smart business owner, you want to do everything you can to give yourself the best opportunity to be successful in your business.

A Proven System To Running A Computer Consulting Business Out Of Your Home
If you are looking for a complete, ‘done for you’, system to starting up, running and growing a profitable computer consulting company without having to spend a fortune to get started, I recommend you consider the Computer Consulting Business-In-A-Box.

Pick Your Legal Structure
One of the first things you must decide is what legal entity you want to establish for your business. It’s important that you pick the right one for your situation because choosing the wrong entity structure could cost you thousands of dollars in over (or under) paid taxes, yearly fees, and liability. There are five distinct business structures available in the USA, including Sole Proprietorship, Partnership, Limited Liability Company (LLC), S Corporation and C Corporation. The three most popular are Sole Proprietorship, LLC, and C Corporation. The cheapest entity to establish is the Sole Proprietorship but also provides the least legal protection. The legal fees involved in setting up any of the other 4 vary from state to state. It’s important that you talk to an accountant in your area to determine which is right for you.

Business Model
There are a few different business models you should consider. I teach them all more indepth in my Computer Repair Business In-A-Box, but here is an overview of each:

1. Part Time Home-Based Business – The ideal situation is to run this business on the side while working another job. You can schedule appointments around your free time. As your business grows you can slowly transition into running it full time. This is the safest route to take and one that will give you the best chance at success.
2. Full Time Home-based business - This is the same as the part time home-business model except you are working full time right away. You can perform all of your work in your client’s homes. You can project a professional image by always going on-site and running your appointments off of a professionally designed website. Clients will never see that you are running everything out of your home and you will save a lot of money in rent and utilities.
   
3. Pick-up/Drop-off – This model is similar to the home-based business model, but instead of performing work in your client’s homes you pick the computer up, take it back to your house, fix it, and drop it back off. If you implement a schedule for picking up and dropping off computers and you group your appointments together, this can be a very profitable business model to establish. Clients won’t have to wait for you to fix their computer in their house. You will also make more money per hour because you will be able to work on multiple computers at one time.
4. Storefront – This model is the most expensive of the 4 and one that I suggest not starting with. There is really no need for a storefront when you first start out, because it is going to take you a good 6 – 12 months to establish your client base. In the beginning you will have an empty store and lots of extra bills to pay. At the same time, if you have the financing and want to focus on selling computers, computer parts, and software, than a storefront is a good idea (especially if you are in a high-traffic location). Look into the costs of running a storefront before you make your decision.

Startup Costs
Write down your startup costs and plot out a way to cover your expenses for at least 3 months. When you begin marketing, keep in mind that it takes about 3 months for your marketing to kick in, and you have to consistently market the entire time to start to produce market awareness and generate interest in your company. That means you may be marketing for 3 months without much of an ROI (Return On Investment). So, plan accordingly in your budget. You will also need to cover utility bills, website hosting, email marketing software, business supplies (e.g. – office supplies, business cards, computer repair toolkit, utility software, external hard drive, business forms, etc.)

Business Insurance
Getting insurance is very important, especially when you first start out. You will likely make more mistakes during your first 12 months so it is important that you protect yourself from liability. There are many factors involved in calculating the cost of insurance. It depends on your area and who your client base is. Typically you can get good tech insurance for around $200-$500 a year. Shop around for your options. One place to start is InsuranceForTechs.com

Legal and Financial Assistance
Right from the beginning you’ll want to establish a relationship with an attorney and accountant in your area whom you feel can provide you with advice without breaking the bank. This will make sure you are making the right decisions and covering your appropriate bases from day one.

For a complete A to Z guide to starting a computer consulting business, consider my Computer Repair Business In-A-Box.