INCOMING QUESTION

Hello Ryan,

I have taken the time to review your info.  I’m not totally new to the
computer repair business.  I started back when the first IBM clones came to
market.  At that time I built PC computers from components and installed the
operating system software and menus.  I got out in the late 90′s partially
from being burned out and partially from the increased difficulty of trying
to keep up to date.

Lately I have been searching for other business ideas and came across your
ad on the Business Opportunity web site.  Everything you talked about in the
ad I new to be true.  I was more interested in the technical aspect of
renewing the operating system.  Most of what I found on your web site
information only discusses the marketing aspect of the business.  One of the
reasons I got out of the business at the time was because it took hours and
hours of time to restore someone’s operating system and it was not an easy
task when you consider saving all of their data. Also end user’s are not
very good at saving their backups and original install disks so you had to
put a bootleg copy on their machine.

I need more info on the technical side of it. Specifically how do you
restore the operating system and at the same time save the customer’s data?
Even when they show up with nothing but a bummed out computer.

Thanks
Steve M.

MY RESPONSE

Hi Steve,

Thank you for your inquiry. The reason that the majority of our package focuses
on the business and marketing aspects of running a computer repair business
is because this is precisely where the majority of computer technicians fall short
when attempting to start their own business and establish an advantage in the marketplace.

On the technical side, our service utilizes a mix of software tools and step-by-step
tasks to perform the perfect re-install. You are right that some consumers do not
keep backups of their computer or the original install disks to their machines.
This presents a challenge and an opportunity to establish a service that accounts
for both problems in a way that the service can be performed faster than the majority
of your competitors are capable of doing. Over the years we’ve experimented with
many solutions (e.g. ghosting, auto-reinstalls, etc.); however, in the end, found that
a traditional re-install is still the most effective method of repairing seriously damaged
operating systems. We then set out to find the right combination of software tools and
step-by-step tasks, and then optimize the order in which we perform each step to minimize
the time it takes to perform the installs.

If you become a partner with us you will not receive a miracle solution for repairing
computers. What you will receive is a fast, optimized method for performing a re-install,
backed by a large collection of marketing and business material that will effectively help
you brand and grow your business.

3 Key Elements Every Marketing Message Must Have:

1. Element #1 – You need a specific target market
   
   It’s important to identify specifically who your ideal client is. Determine the demographics and psychographics of your client-base so you know who you will be targeting your marketing message to.
   
   
2. Element #2 – Identify your target market’s problems and emotions
   
   You can uncover this information by talking to potential clients on the phone and subscribing to the same publications. In doing this, you are going to discover what problems your target market is dealing with, what emotions they experience (e.g. – are they frustrated with slow computers), whether or not they know how to make smart technology decisions, and what problems they have with their business that technology can help them solve.

3. Element #3 – Explain the benefits of your serviceA big mistake that I see IT business owners make all the time in their marketing is they list out what their service IS but they don’t list out what their service DOES.The reality is, people don’t care what your service IS – they hire you for what it DOES. They hire you because they have a problem and they want it fixed, but they don’t care what you do to fix it.The easiest way to determine what the benefits are of your service is to first list out all of the FEATURES that your service provides and then list the BENEFITS of each feature.  For example, if you are marketing a virus removal service, example features might be the amount of time it takes you to do the work, a special technique you use to perform the work, steps you take to remove the virus, and your response time to emergency calls. For each one of these features, you would then list out the benefits they provide your client.  Example benefits might be an end to your client’s frustration or the productivity that your client gains due to their computer running faster and more efficient. Once you discover the benefits of your service, list them in bullet point form in your marketing. Use the benefits of your service as the centerpiece for your marketing, because they will generate the largest emotional response from potential clients.

KEY TIP  - Whenever possible…market to PROBLEMS! Marketing to problems is powerful, especially in the IT industry, because problems are “hot – buttons” that motivate buying behavior.  This is due to the fact that we all endure problems and we are “wired” to want to solve them.  When you talk to someone about problems in your marketing, 2 things happen:

First, you grab their attention by talking about something they truly care about. Second, just the fact that you can identify the problem they are experiencing makes you more credible because they will assume that if you know what their problems are then most likely you know how to FIX their problems.  This will make them much more inclined to hire you.

For a complete “paint by numbers” system to starting up, growing, and running a profitable computer consulting business, consider investing in my 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.