Small Business Idea

Small Business Idea (Computer Repair)

I want to build computers and sell them to customers (Each order made to fit each customer's exact needs).

Goals:
Build a reliable computer cheaper than that of a computer of equivalent value sold by big-time manufacturers (Dell, HP etc.)
Make a small profit from each build, while still maintaining above goal (Somewhere between $15-$50)?
If successful, I might want to expand my business to troubleshooting and basic IT as well.


Questions:
Is this a business worth trying? There is minimal start-up money needed (I can start by spreading the business by word-of-mouth and on Facebook to my friends).
Could I potentially profit from each individual sale as stated above?
Legality: Is selling a custom built computer legal? Can I buy Windows 7 and Office and install both pieces of software on the computer before selling it?

Any tips and advice will be greatly appreciative. I am changing my major to CIT effective next fall, so this could potentially be a great venture.

It is a great idea to do this type of business, you can start of with assembling PCs and selling them and slowly you start a small retail and online Business like newegg, sell the hardware/software separately too when your business grows.

Also make you business a products a brand step by step, I would suggest you provide good service too, that is why Dell is successful in India. It is a good idea go on with it.

About legality, I am not sure, but I think you can start off without any licence at the start, then you will have to get one.

It's a nice idea... I have thought about doing the same in the future once I obtain my degree. Best of luck to you buddy.

Thanks for the replies!

I'm not sure I just want to sell individual pieces of hardware or software and become a large distributor like Newegg. I am more interested in building custom PCs and eventually expanding into a small IT business where I will repair computers for clients. What kind of brand products are you thinking? That could be interesting further down the road if I come up with any good ideas, but I don't think I can make a brand out of my custom computer builds, since the parts within it are made by different manufacturers that I have no right to.

I know a few of you on the forum are running this type of business. How would you recommend starting one? Is there decent money in it long term? What would you recommend expanding into?

I talked to a intel rep and only builds Intel. Warranty is longer. If i buy it its, two yrs. His his 5 yrs with Intel. Been slow for him but runs a shop out of the garage. And its not a garage. He knows quite a bit. Runs a server for the police and fire department for a couple local city's. Pays bills though.

Considering the customer is paying for the parts (essentially) they are paying for the Windows license, so, it'd be in their name. There is no harm in that.

That is very true! I figured it wouldn't be illegal, but I figured it was worth checking. Thanks.

Hey OP. I know nothing about computers or companies. But I have managed to build a computer myself.

But I will show you this. A college student taking a loan to build a 5000 dollar computer. It has 4 SLI GTX 590 e tc. The reason he did this is to show what he can do so people will pay him to build computers for them. So that he can pay for college.

Real reason? He is probably addicted to computer games and uses starting a company as an excuse.

[UT]2jv5XE9GJrA[/UT]
http://www.youtube.com/watch?v=2jv5XE9GJrA

My advice? A guarantee. If the computer breaks down, and the seal is still on you will fix it. That reason is enouch for me, that have built computers before to pay you.

Haha, that's ridiculous and I don't think a small business like this starting out will pay the college bills. So I agree, he probably just wanted an excuse to build that.

Ill throw in my two cents. This is based on experience, I have been doing builds since 95, I have started, ran and sold two computer businesses (J & J Computers in Killeen, TX and J & M Computers in Hattiesburg, MS).

First, there is no "real" money in it anymore. Here's why.

1. Computers today are so easy to build and configure anyone can do it, and many novices do.

2. Almost everyone knows a self proclaimed "geek", who will usually do their upgrades or builds for little to nothing.

3. The knowledge to do a build is available all over the Web, with specific instructions on how and who to buy from. Companies like Newegg and Tiger Direct (Which now also runs the CompUSA and several other name brand websites) are no longer the hidden entities they once were, everyone knows about them and can do their research to see what the parts cost and what your markup is, so profits are very limited. As well, any computer part can be found on Amazon as well as Ebay and too many other sites to list.

Ten years ago, the money was there. Not anymore. It is one of the reasons you see so few small computer businesses anymore unless they are doing Business Networking or something like that. Usually, those small businesses who 10 years ago and back would have also supplied parts, are no longer in the parts business, because again, their is no money in it.

Ill tell you the two places where the money is in Computers these days. Subcontracting Warranty work. ( I did this for Dell, Laptops and Desktops) and Computer Training.

If you want to make money, forget about doing builds, I suggest doing this:

Put together a list of what you are really good at as far as Computers go. For example, Building Websites (Even if its only experience with WYSIWYG Software), Databases, MS Office Suites, How to effectively use Email, Web Surfing, Facebook, anything at all you can think of.

Print out materials and build a training outline for each area.

Make sure you understand your own training outlines front to back.

Run ads on local sites and sites like CL and free advertising sites. If you are in local forums, ask the Admins if you can advertise your skills.

You can then charge by the hour or by the class. With so many people just coming online, especially the older crowd, there is a need there.

When you are building a business, even a small home based business, you need to have some sort of business plan and model to be successful. The second thing (After deciding what you want to do) that you have to do is ask yourself "Is this a product or service that is needed in my community"? In the case of building Computers, the answer these days is usually no.

Sadly I think Tanker is right, I've looked into this several times wishing it to work...but the maths never really added up

With regards to parts selling, you could try and convince wholesalers to sell you parts really cheaply. I've managed to do it before a couple of times but I ran out of money and time to make it really worthwhile. Best of luck though, no harm in doing some cheap/free advertising. You never know

Depends on the demand in your area, too. I have a craigslist ad saying I'll build any computer for people for free, and I have yet to do one.

Well, I have two friends who have decided to tag along in this venture and we are branching off into computer repairs as well. Is there still no market for computer repairs?

I wasn't trying to sell individual parts, but rather, I want to build computers for people. I do understand most people can easily teach themselves how to do such a thing. However, most people I have ever talked to about it think building a computer is too complicated and some don't even understand what I mean by building one. To me, those are the people we could profit from.

I am not looking to make significant profits with this, especially at first, but if we stick to it I hope we can turn this thing into a computer consultant company for small businesses around Indianapolis. Would this be a realistic goal in today's world?

I appreciate the criticism and feedback guys!

Does anyone know how in demand a local computer repair business is compared to a simple custom build business?

Actually you will find out there is more of a call for computer repair then to actually just build systems. I build anywhere from 3-5 systems a year compared to repairing at least 3-5 a month or more, sometimes 3-5 a week depending.

Most computer repair shops also custom build computers, like Computer Renaissance.

Part of the problem is just getting your name out there for people to see, and for some reason most people seem set on getting a dell or hp, just look at ebay, a dell with the same specs as a custom built will be bidded way higher. I've been trying to get building with craig's and over the past month have gotten 1 serious offer which might go through in 2 weeks when he has the money, and i might be building one over the next week, it's real slow and not much profit per build

My goal is to start up a hobby of repairing computers and building PCs for clients and then move it into a small business with eventual hopes of becoming a computer consulting company for other small businesses around the city.

Well a hobby is a hobby, just do it in your spare time and try to get your name out and some good customers, but keep a normal job like you currently have if you have one, then if it begins to become profitable and a steady job, then move to a true small business.