Few Questions on Starting up a Business (Opinions welcomed)

Owain_Moneysaver

neo1607 wrote: »

i do get a lot of business already (currently do it for free most of the time if it's just little odd jobs)

You will if you do it for free.

Start charging and see how many of those 'friends' turn into 'customers'.

As for lessons, you will probably be competing with your local library or community centre which offers them free, and has the imprimatur of respectability of the local council, and most people who want to learn computers now are elderly, who will want to do so in a group during the day as they don't like going out at night in case they get mugged or miss Emmerdale.

martindow

I still don't understand why you want a loan or credit card debt when you already have everything you need. Start the business up from home and see how it goes. If you start making some money then, if you wish, buy your new chair and shiny computer, but your businesses is most likely to be successful if you maximise income and minimise expenses.

paddyrg

Small business loans - fundingcircle seems to be oversubscribed at the moment, and even pretty shonky businesses getting good rates. But don't do it, there its some Sterling advice above.

motorguy

neo1607 wrote: »

So i've been thinking this over for a while but I don't really know where to start.

Basically the plan of the business would be a PC / Phone Repair shop as well as selling PC / Phone accessories etc...

On top of this I also had the idea to offer a PC Training course for people unfamiliar with computers (I know a few different software suites that handle this sort of thing)

I Live in a small town and I am very well known for doing the odd jobs on the side just now for PC and Phone repairs anyway so customers wouldn't be a problem as word of mouth is already widely spread

Basically what I would like to know is:

1) Best Place to get a small loan for starting up a business (i've been informed that business gateway can also offer another £1000 free startup grant)

2) Best bank for around 12 - 18 months free banking

3) How to go about actually registering the business and sorting stuff with HMRC (Currently I am already employed as well as self employed with my own shop)

4) Am i better speaking to a Solicitor/Accountant first to help me sort all this out so I don't trip myself up?

I would be planning to keep my current job and running this side venture in my evenings and weekends (which from opinions i've been getting this could benefit people since most people work during the day)

Also my credit rating is average/good so I don't know if I would struggle with a loan for starting up?

Thanks to anyone that can help

This is a bad bad bad idea.

The reason there are so few computer / repair shops is that they arent profitable.

I could write a book on this subject as i've been down this exact route about 6 years ago when it was bad, as opposed to exceptionally bad now.

People buy PC's and laptops and tablets from wherever they 'think' is the cheapest. They may think this is Tescos, or PC world or online, etc, etc. Whilst you *might* be able to compete on price with them, you wont be able to compete with the power of their advertising.

People have no shame. They will come to you for 'free' advice, then walk down the road and buy the item for a pound cheaper in Tescos.

People have no concept of the need to support local businesses. They go to the cheapest. They dont see the 'value add' of buying a laptop off people who are experienced and offer them 'advice'. They're quite happy getting from Tescos from some 16yo YTP checkout girl.

There is not enough profit in PC's and Laptops and they depreciate in value very quickly. ie, say you buy 10 laptops at the start of the month for £300 to sell at £349 and you sell three a month, by the start of the second month the retail price of them could be £299. People are very sensitive to these price moves.

There is no profit worth talking about in printers or peripherals and they are easier and cheaper bought at argos or tescos.

Printer papers etc can be bought from Tescos for £1.99 and they will get bits like that with their groceries rather than come to you.

There is no profit in tablets and its a cut throat market.

RE: repairs, people always know someone who 'fiddles' at computers for free. Say you have 100 people who know you and you help fix their computers. Once you start charging £30 an hour, they'll just find someone else to do it for free rather than pay you.

PC repairs arent seen as 'skill' by people. They'll happily pay £100 to get their washing machine repaired, but they will begrudge you £30 to look at their laptop. Also, they by default will expect a lifetime onsite warranty on their laptop just because you installed antivirus for them - you get calls like "4 months ago you installed antivirus and now today Word isnt working - its your fault".

Even a small retail unit will cost you £700-£1000 a month to keep open. Say £400 for rent, £100 rates, £100 electric, £100 phone bill and broadband, etc, etc and on top of that you'll need to pay yourself so say £1,000 net, which means £1400 gross. So theres £2K needed. If you're working to a 20% net margin, then thats £10,000 of revenue you'll need each month just to break even.

If you really must do this, then i would strongly recommend you work from home. Getting yourself a one pager website set up with a catchy name, get 1000 business cards from Vistaprint for a tenner, advertise on gumtree, local shops, local papers, library, etc. Charge £30 callout no fix / no fee, and £20 per hour thereafter. Offer free pickup and return. Offer tuition in peoples homes on a 1 to 1 basis. Work from your garage or a spare room. See how it goes for a year.

motorguy

Also have a read at this

https://forums.moneysavingexpert.com/discussion/701077

motorguy

Relative to the phone repair side of things, if you really know your stuff and can do repairs to tablets too on this side of things then you might stand a chance, but i would be extremely careful - opening a retail unit is a great way to make a small fortune - out of a large one.

neo1607

motorguy cheers for the long detailed reply

A few of those pointers you gave me wouldn't really apply, i wouldn't be buying stocks of PC's / Laptops / Tablets to sell i would be more just a repair side of things.

If i was selling PC's (i have got opinions from a few people about this) then i would do "made to order" PC's where someone gives me a budget and what they need the PC to do and i would try my best to get into this budget.

Like i said i am in a fairly small town and the closest place to offer any kind of repairs for PC's / Tablets is about 20 miles away and i know most people would prefer to stay local if i can be competitive (and with PC world that isn't hard).

As for the phone repairs i already have an established name for doing repairs on the side and word is spreading quickly which is why i want to start this sort of business so i can straighten my tax out

I would be working from home and it would be flexible hours (which suits a lot of people) so there wouldn't really be any overheads apart from probably paying my mum a small cut for letting me use a spare room in the house for this kind of thing

neo1607

Just a quick update: I have just got in touch with my accountant and he is going to get back to me with regards to this.

Advice still welcome as a few of you have been helpful already