Perform measurements
and calculations
and calculations
This article will explore how phenomena, failure and
imagination, can be crucial to success in computer repair business. While failure can help you understand
where your true passion lies, and where you should focus your energy and skill moving
forward, imagination is what will allow you to empathize with other people on
your journey to success so you can use your influence to do good.
The prices that are quoted here is in Jamaican currency ($JMD).
The prices that are quoted here is in Jamaican currency ($JMD).
Are you the person everyone
calls when they have a computer problem? Have you considered getting paid for
fixing near-fatal errors and turning your PC prowess into a business?
Almost all small
businesses and home offices use computers and depend on them to be working
properly, "They
don't have the skills, the time or the desire to do their own computer service,
repair and upgrades, and that puts us right in the middle of one of the
fastest-growing industries in the world."
But if your only business
experience is selling your mom's friend her first computer, how do you get
prepared for the future customers whom you have never see down the street? Besides coming up with a business name, getting a business license and
obtaining general liability business insurance (which ranges from $45,000 to $100,000 JMDs annually and is obtainable through your local Tax Registration office), there are a number of
things you need to do to get started on the right foot. Here are some tips that
will help you successfully launch and run your new endeavor.
·
Know your street (and hourly/difficulty) value in
Jamaica. In the early 1990’s - 2000's,
running a PC repair business centered around selling parts and products, with
service on the side. Today, it's about selling your skill by the hour. "You're
making money by selling management services [of computers, networks and
servers]," It used to be that you made your money when
a virus needed cleaning up or parts broke. Now we're helping our customers
prevent problems before they start by using management technology.
To determine
what your time is worth, investigate what is the national average and what your local competition is charging.
While the national average is $4,000 per hour/issue for computer service billing,
it's much higher in certain regions--$6,000 an hour/issue in Manchester, for
instance. When you must order new parts, such as modems or motherboards, for a
job, you'll need to make the purchase worth yours and your client's time, especially
if he/she has pre-paid you. So remember to factor in shipping, handling and
insurance costs, as well as an "opportunity" cost for ordering parts
from lower-priced international vendor’s vs, a local suppliers.
·
Determine who your ideal customer is. If you're looking to sell and service computers
within your local community and remain a one-person operation, residential
clients may suit you best. They're generally more responsive to advertising and
marketing than small-business owners are. Plus,
residential work is less demanding and the market is huge, although the
competition is fierce--think Best Buy's "Geek Squad" and Circuit
City's Firedog services, both of which make house calls to perform installations
and upgrades and to troubleshoot. Another downside to residential customers is
that your clients will tend to be more budget-conscious than if you target the
business owners.
If you
decide to target the non-residential market, think small. "Niching is one
way to go. Look at your existing contacts. Perhaps you
know the principal at a school, a banker or the owner of a real estate firm.
These folks may lead you in to an area of specialization since the software
systems tend to be similar."
·
Realize that financial stability doesn't happen
overnight. It's tough to juggle a day
job with a side gig, especially if you're honing in on small-business clients.
But if you're not running your business full time, you run the risk of losing
clients, especially if you're targeting the business market. "If you're
not around to field tech support calls from nine to five, they'll quickly pick
up the Yellow Pages and move on to the next guy," says Reaves.
·
Know your
strengths and weaknesses. If
your background is strictly technical and you aren't very business savvy, hire
bookkeeping or accounting experts to handle the busywork and keep you at your
most productive so you can steadily increase your billable hours. You can also
invest in software products to handle administrative tasks. A few of the top
software sellers, which can help you manage people, projects and processes more
efficiently, include AutoTask, ConnectWise and Results.
·
Market your
business every day. While you
don't have to walk around wearing a sandwich board when you're out on the
street, the phone on your desk isn't going to ring until people know you exist.
And you can't rest on your past successes either. Whether you choose direct
mail, pamphlet drops, telemarketing or web marketing, you need to come up with
a marketing mix that works for you. For instance, advertising in your local
community coupon book may prove to be a waste of money, while networking at
business trade organizations and chamber of commerce meetings may pay off big.
You
should put in Five to 10 hours a-week in your own business. "This doesn't
mean just sitting at a desk, punching out press releases. You've got to get
your face out there, go door to door if you have to, to let people know you
exist. If you're bashful--not comfortable putting yourself out there or
handling rejection--you might find this business isn't for you."
·
Keep your skills
current. Techies can easily fall
into the trap of believing they can pick up new skills on the fly or after
quickly reading a manual. But if you fail to partake in continued education and
training, your knowledge base may become obsolete. "It's the nature of the
business. You have to find time to see what's
new." Make time to visit such websites as CNET and ZDNet to update
yourself on new software applications and to find out about technology webinars
being offered.
Reach out
if you need assistance. "Coming
from a 100-person IT department in a large setting where you have colleagues to
help you and collaborate with, it can be pretty daunting and isolating if you
do run into an issue or problem while out on your own," says Kaufman.
Fortunately, there's great camaraderie in the tech community. There are fantastic
web sites out there where you can bounce a question off an "expert"
and get a response within a few hours (Microsoft's Experts Exchange charges $99
per year for this service). Learn what you can and cannot do well, and ask for
help when you need it.
·
Customize your
workspace. Adjusting from an
office cubicle to a home office environment takes a commitment to organization.
You'll need a clean, dedicated workspace (not the desk that the family PC rests
on)
with room for a repair bench area for your tools and
easily accessible storage shelves and bins. The area doesn't have to be too big
to start out with, but it should be able to accommodate at least two tower PCs
and monitors. A direct entrance to the area is nice, especially if you expect
drop-offs or are employing interns or other tech people to work with you. A
converted garage is a favorite area of a lot of techies.
·
Don't sign on
the rental line just yet. If
your ultimate business goal is to open up a PC service center, realize that
this type of venture takes more planning and management than you may expect.
Service centers must operate regular business hours, so sufficient staffing is
essential. Capital requirements are also significantly higher than for a
work-from-home business, so a comprehensive business plan is essential. Prepare
for the worst-case scenario, insofar as cash flow is concerned and make sure
you have enough money or access to it, such as through a line of credit, to
carry you through the lean times.
Before
committing to a lengthy, expensive storefront lease, you might opt to set a
more realistic goal of bringing on technicians within a year and opening up a
space where customers can drop off their computers up the road. "The added
expense of overhead can be dangerous and backfire, unless you already have
steady clientele."
·
Hire smartly. Your first hire is going to make the main impression about your company with
your customers, so be sure to screen candidates on more than just their tech
skills and certifications. Your first employee should be driven and well-versed
in both technical expertise and interpersonal skills. Before hiring anyone, get
three relevant, work-related references and written consent that you may
perform a background check before hiring. "If you're uncomfortable conducting
an interview on your own, ask a friend or mentor with more experience to join
you in the process.
The first
step in the hiring process is to get a TRN (Taxpayer Registration Number) by
filing out the Form #2 with the tax office. This nine-digit number is for you to use
on tax forms specifically where it's asked for by name--it's not a substitute
for your personal TRN number. You can get a TRN immediately by applying to
the tax office within the hours of 8:30am to 3:30pm Mondays to Fridays not
including public holydays. For more information on TRN for your business, you
can visit these sites:
https://www.jamaicatax.gov.jm/trn1/#RequirementsforoverseascompaniesEstablishedInJamaica
https://www.jamaicatax.gov.jm/trn1/#RequirementsforoverseascompaniesEstablishedInJamaica
Every small firm has to work to a deadline at some
point, whether it's delivering a product by a set date, filing tax returns
promptly or hitting a sales or service target. But they shouldn't be something you dread.
Find out how effective project management can help you hit deadlines without
the panic.
Here are some points to
remember:
v Remember that deadlines can help you. Deadlines
require you to plan your workload, ensuring you get all your tasks done by the
requisite date. Regularly working to a deadline will improve your time
management and organizational skills. It will also help you to learn to focus,
not panic, when working under pressure.
v Ensure your deadlines are realistic. There is no point
in agreeing to a deadline if you are never going to hit it. While it may be
tempting to please a customer by telling them their product will be ready in a
couple of days, they won't thank you if you fail to deliver. Be realistic at
the outset about the time that the process will take.
v Allow margin for error. Inevitably things go wrong? For
example, your employees fall sick, deliveries are delayed or your computer
systems go down? So give yourself some leeway where possible.
v Identify potential stumbling blocks. Consider the
risks you may face? Such as unexpected costs or technical issues. Do what you
can to minimize their likelihood before they happen.
v Break the project into manageable chunks. Decide
precisely what needs to be done, by whom and with what resources. Identify the
tasks which need to be completed before the others can start and those which
can be undertaken in parallel.
v Allocate adequate resources. It is vital that you
ensure you have enough people with the right skills to get the job done, as
well as any equipment or raw materials needed. Speak to any suppliers you are
relying on to ensure there won't be any delays.
v Set intermediary objectives. Draw up performance
indicators or set up regular "milestones" along the way to help you
evaluate progress and alert you to any problems.
v Don't panic. Some people find working to a deadline
very stressful, particularly if it is given at short notice and they have not
had time to schedule the work involved properly. If a deadline takes you by
surprise, jot down what you have to do and how long you have to do it in. Get
started as soon as possible, but take regular scheduled breaks so that you
don't get too tired or lose focus on the objectives.
v Enforce deadlines. Don't allow a work culture to creep
in where deadlines are seen as flexible. Brief staff thoroughly beforehand and
make it clear that missing deadlines is not acceptable. Consider offering
incentives to staff to meet certain deadlines such as sales targets.
If your computer isn’t functioning properly, hiring a professional technician will cost you an average price of $6,000 to have it fixed. However, this rate can still go for as low as $4,000 if you only have a minor computer issue or as high as $22,000 and up for a more complex problem that needs a major repair.
Computer
servicing and repair prices can be in the range of the following:
Job details:
Western Digital external hard drive does not show up on My Computer
Other details: When connected to another computer, the external hard drive is
detected and works normally. TOTAL COST: $3,500.
Job details:
Full checking and cleaning of Acer Tower
TOTAL COST: $6,000 to $7,500
Job details:
Replacing faulty Toshiba Mk6465gsx 640 HDD with a new one (different brand)
TOTAL COST: $14,000 to $14,500
Job details: Installing updates as computer’s OS was recently changed to
Windows 7; won’t update automatically
TOTAL COST: $5,000 to $7,000
Job details: Installing and configuring a network that includes 4 work
stations, 3 printers, and 1 multi-function printer
Other details: Majority of the hardware needed are provided.
TOTAL COST: $44,000
Job details: Saving data and important files from the hard drive of an
old Toshiba laptop
TOTAL COST: $20,070
Job details: Checking of computer for virus; virus removal possibly
needed
TOTAL COST: $12,000
Accidents
Computer Repairs Price Lists
Job
|
Details
|
Prices
are quoted in $JMD
|
Time
to complete job
|
Good
to know
|
Laptop -
liquid
damage/drink spillage
|
Quote for
drying out various parts. Assuming that nothing needs replacing.
|
$4,500
to
$6,000
|
24 hours+
|
Parts will need to dry out for at least
24 hours. It’s likely that some parts might need replacing after an accident
like this, particularly the keyboard or mainboard. So be prepared to pay more.
|
Laptop -
supply and replace broken laptop screen
|
Supply and
replace a 15.6 inch screen.
|
$17,000
to $20000 |
1–2 hours
|
These prices include the parts needed
but this might vary depending on the make and model of your laptop. Although
the actual job should only take an hour or two, if the part is not in stock
you might have to wait several days for it to be ordered.
|
Hardware Failure
Job
|
Details
|
Price
|
Time to complete job
|
Good to know
|
Laptop computer - supply and replace power socket
|
n/a
|
$11,000
|
1-2 hours
|
n/a
|
Desktop - power supply failure – supply and
replace power supply unit
|
Supply and replace ATX power supply unit of
500-600 watts
|
$6,500
|
0.5–1 hour
|
n/a
|
Desktop - replace hard drive
|
Hard drive failure. Supply and replace 500Gb hard
drive. Reinstall software. Transfer data from old hard drive to new.
|
$13,500
|
2–4 hours
|
If data needs recovering (ie it’s not as simple
as a straight transfer) then expect this to take longer.
|
Virus or malware removal
Job
|
Details
|
Price
|
Time to complete job
|
Good to know
|
PC - removal of malware (scamware or spyware)
|
Scan, remove and repair. Assuming a common type
of malware.
|
$4,500 - $9,000
|
1–4 hours
|
Typical price and time depend on the severity of
the problem.
|
PC – removal of virus
|
Scan remove and repair. Assuming most common
virus.
|
$4,500 - $9,000
|
1–4 hours
|
Typical price and time depend on the severity of
the problem.
|
Installation and Upgrades
Job
|
Details
|
Typical price quoted 2017
|
Typical time to complete job
|
Good to know
|
PC - install new operating system
|
Install latest Windows package on a PC
2017 – Windows 10
|
$4,500 for install if Windows 10 is supplied
$14,500 if the repairer supplies
Windows 10
|
1-3 hours
|
Expect to pay at the lower end of the
scale if you provide your own Windows software. Asking the trader to
supply software will increase the price. Most traders can supply software,
but you might be able to buy it more cheaply yourself elsewhere.
|
Visit customer’s home to set up a new desktop
computer
|
Set up home PC with standard monitor, mouse,
keyboard, printer and wi-fi.
|
$6,500
|
1–2 hours
|
This is a basic set up of hardware. Expect to pay
more if you want data transferred from an old computer or any software
installed.
|
Data and Maintenance
Job
|
Details
|
Typical price quoted 2017
|
Typical time to complete job
|
Good to know
|
PC - carry out a general service
|
Machine running slow. Clean up; no
faults or upgrades needed.
|
$6,000
|
1-2 hours
|
n/a
|
Laptop – transfer all data and
reinstall programs from hard drive of old laptop to new laptop
|
Assuming laptop has 320GB hard drive
and is running Windows 10.
|
$5,000
|
1–2 hours
|
Typical price and time to complete
job depend on how much data there is on the hard drive.
Please note you will need to provide
the original installation media i.e. CD / DVD or internet download to
reinstall programs – you cannot take them directly from the old hard drive.
|
It is very important to have the above information on hand for when your customers calls or enters your store, you may be a business owner (store base) or a freelance technician. The workflow mindset in your shop should be to develop a repeatable process so every order that comes through is produced correctly, on time, and with perfect satisfaction for your customers. That doesn’t happen by accident. When you cut corners, don’t have good training, use inferior products or equipment or even accept work you can’t handle, you are putting yourself and your business reputation at risk, brace yourself for some big challenges.
Let’s dive deeper into a few of the most problematic
areas that can affect the success of your business:
Money
It’s the reason we’re all want to go into business,
or we already in business. Who doesn’t want more money $$$?
Here are some questions to ask yourself before
venture into a new business:
v Do you feel you are as
financially prepared for your company’s success as you can be?
v Are your production and
scheduling strategies dialed in?
v Do you know what your
break-even amount is each month?
You would be surprised at the number of people that
don’t have a firm grasp on their company’s basic fundamental financial facts.
Tip: There is no shame in hiring an outside
accountant to help you with your accounting practices.
These days there’s no reason to have to struggle
with any complex business accounting situations. Get the guidance you need to
run routine shop quarterly financial statements with a balance sheet and also
profit/loss reports.
You can also get help calculating your accounts receivable
and accounts payable days and their effect on working capital and cash flow. If
you have a shop that struggles to pay your vendors on time, despite being busy,
you probably need to call in the big dogs to get some accounting coaching.
There
is no shame in raising your hand and asking questions.
Pricing
Problems
Of course, one of the biggest financial challenges
in this industry has always been constructing a pricing strategy that works.
Too many shops just use something they cobbled together based on a spreadsheet
from their competition. “We’ll just do everything 5% less than that guy”, isn’t
a strategy that has any long-term legs. Because it isn’t based on your shop’s
financial reality. Strong businesses connect the dots between their real costs
and their pricing. “Here’s what it costs us to do the work and here’s what we
want to make.” Price-for-profit should be the strategy you are implementing.
Prepare
and Prevent
Build a pricing
schedule based on your actual cost information. Use the 5 Cost Bucket Method to
establish this baseline.
PRESS PLAY
Set your financial goals and work towards them daily. This prevents that feeling at the end of the year when you wonder where all the money went.
References
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