Who owns their own business?

So I am just wondering who runs a successful IT business and what did you guys do to succeed and any tips. I am thinking about starting one some time next year after I finish WGU this year and have another year of experience under my belt since I currently work at a hospital?

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NovaHax

What type of company are you looking to start? "IT company" is pretty vague.

pixa241

REMOVED UNNECESSARY QUOTED REPLY FROM PREVIOUS POST

Well that is the part I am not sure. I live in small towns. My town has 50,000 population with the next town next being 112000 population and just small rural towns all around ranging from 1000 to 20000 population. I guess maybe one that will work with small business and their IT needs.

Plantwiz

Take a survey, do some market research, find out what businesses 'need' that is not being given to them. Do they need website support? Do they need backup support? Do they need a project manager to role out upgrades and integrate new software? Do they simply need a guy/gal to show up with in a short while from a phone call to change a mouse, monitor, PC, etc... simply because they don't wish to crawl around under the desk to do the work?

You can get as sophisticated as network designing, to as mundane (yet important) as cleaning off virus', keeping a backup machine running to swap out in an instant, and running backups. However, you will likely want to 'network' with people first, find a business group in the community that meets weekly or bi-weekly and needs an IT person in their mix. And/or simply find out what folks need help with, work out and hourly rate (consider being bonded for protection and our determine your insurance risk, in the event your are touching their equipment and it dies...you need to cover yourself).

Most difficult part is getting stated, but follow the basics of a business plan, set objectives, make contacts, and get to it. However, if you are fresh out of school with little to no experience, you may find it is easier to work for someone for a bit first...even disclosing that you want to contract work for them just to 'see' how things go.

pixa241

REMOVED UNNECESSARY QUOTED REPLY FROM PREVIOUS POST

Well I have about 3 years of experience but I will barely finish WGU this year, but I want to continue working here for at least another year to get a lot more hands on experience. But I want to prepare myself to see if that would even be an ideal situation here. So I will probably do what you said and scope out my areas IT needs.

Plantwiz

I would certainly start out as a 'second' job. Pickup volunteer gigs on weekends, or find someone who will take you on (provided that you are not in a 'conflict of interest' situation) and offer some second shift or 'off-hours' on-call type support. You'll build your confidence, but doing some market research will show you were the gaps are in the community. This will limit you getting 'stuck' picking up the workload that others don't want (not bad if you don't mind doing it, but after a while, many shy away from virus cleanup because there are more challenging things to maintain and virus' cleanup is sort of a rookie service (although an important service).

Do look for BNI or some sort of local business group to meet up with if possible.

omi2123

heck, i tell u what, I own a stupid gas station & that's what drives me to get my butt educated, certified so i can get out of this hell hole & get into the IT world.....i'd rather work for a company than owning my own business......I DO NOT cherish that "business-owner" title & status......rather have paycheck issued to me than me issuing it......

Xyro

I am glad someone asked this question because the replies contain some information I had not considered. My question had more to do with how much (ballpark figure) it would take to get a business off the ground. This is just one of the ideas I am currently throwing around to be able to eat. The block has been in knowing what niche would be best to serve.

Plantwiz

Not certain that owning a gas station is comparable to being a consultant. The business-owner aspect, I will agree with you, is not always a piece of cake. The aspects of the job that one desires falls to the bottom because as a business owner one is responsible for EVERYTHING related to the business.

The risk, however, as a business owner is more or less in your own hands. While as an employee, one is at the whims of the higher-ups, and not usually consulted in decisions that may send the entire business into a tailspin...being a business owner, one has a say in the success and failure equally.

@Xyro,
How much or little depends on the type of services (and or goods) you wish to offer. You can start out for very little if you are strictly consulting. You can consult and offer goods, by using someone like CDW or Ingram to ship direct to your client rather than stocking items. Over time, you may stock some items, but there are some things to be careful of here. So, aside from some nice clothing, a few books (or online subscriptions to keep your training/reference material fresh) your knowledge can carry you a while.

This leads into networking with other consultants were you'll toss each other leads to compliment the others' strengths...though this always seems to work better in theory than practice, but if you can hook up with a couple others who are honorable, you won't be treading on each other's clients, but instead offering the client's the best of all you have....sort of specializing.

Plus a vehicle that can get you to the locations on time...or a bus pass. So under $5K (which you will want to set up a separate checking account and your business ID and file with your State and such).

Xyro

Interesting Plantwiz, I would have never expected one could begin with such a small amount. I have so much to learn though. Like I said this is just an idea I am throwing around because I want to eat. There are other issues also, such as I feel that I do better (much better, unfortunately) as a leader than a follower. I do not like to walk into anything "blind" though, so this entails a lot of research obviously.

Who am I? That is, what is my label if I "contract out" the work of others? Would this be an IT Contractor? or?

I wish this is clear. As I said, all new to me. My idea is though to provide technical support to individuals/companies/etc. by utilizing (contract?) the skills of others.

Plantwiz

Not to high jack pixa's thread here, but your comments seem to blend in with the OP...

One can start a business for next to nothing. Use the tools you have, save up, invest in the business and keep moving along and up. Once you have to buy your own equipment, you will see little difference between small things like 2GB RAM vs 4GB RAM and old HDD vs solid state HDD. Unless those few extra dollars generate you more income, there is little benefit.

Yes, one can get fancy and need to get an office, a 'new' computer, new software, accounting software, etc... OR, one can use their current laptop, a good backup practice, open office, and either spring for QuickBooks, or keep good files and make an accounting package a priority soon...only because something like QB allows for Contact management, quote, invoicing, PO creating, inventory, receivables and payables. Though, this can all be down with excel or similar.

When one sells their brainpower, you need few tools, other than the know how. Why pay for office space when you will be on site? Down the road, sure, rent a little something, maybe even a corner of one of your client's buildings and give them 'exclusive' support...this can fail, but short-term, is a decent way to go if you need a place to call an 'office'. If you do not plan on doing repairs offsite, training offsite, bringing clients to your office space, go meet them at theirs or take them to lunch and pay the 'table rent' (order lunch, maybe request a back corner or small room) and talk business with your client.

It is difficult to say exactly what one should do, but once you know what you are good at and how you wish to sell your service, you will have a better idea if you need more or less than $5K to get going.

Ideally, keep a main job at first, work yourself into a frenzy, once your business grows, drop your hours at the main job, or finally severe ties and jump in with both feet into your business...constantly evaluate what makes sense.

As far as sharing contacts with another party, well, this to is tricky. An immediate example I can think of is, say you are a network guy/gal, but your client wants to go VOIP. You 'could' do it, but since you have not installed a full VOIP, you kick the lead to your 'friend' who can either train you up, or 'promise' to kick you leads of his clients when they have network or backup questions he cannot handle easily. These relationships do not ya come easily, but they exist...just an example.

As the business grows, there may be time to hire someone to help. Or consider an answering service to handle the calls, so you can remain with a client, but know new client problems are being prioritized for you.

If you get super sophisticated, you can start out with a ticketing portal and have your clients type in their problems, and you simply stop in and take care of them. Send the invoice, and keep going.

New businesses are challenging, but rewarding. You will be doing a TON of work, and a lot of business related work that does not make you money, but is that support work for you to make money (such as invoicing). Which is why if QB has a mobile app, you could enter the billing info on site, email the invoice moments after leaving the building with all the support data fresh in your mind. The faster you invoice, the quicker the client can pay, or dispute issues if there was an error and you have a chance to resolve the problem before the information becomes too old to remember clearly what happened and three new problems have since surfaced.

Keep it simple, stupid (student). There is very little margin in hard goods (for IT) except with cables...decent margin in cables. So, you'll pay a high square footage percentage to make very little off the hard goods end. Mostly, I would recommend that you simply offer a pass-through on the hardware, you may even buy it locally for the client (saving them the drive to the store) but you simply do not stock anything and bill them exactly for the sticker price of the item...no markup, because you are in he the business of service and making your client happy. Besides, you will make money on the install of the item.

HTH

NetworkingStudent

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Xyro

Plantwiz,
Thank you for taking the time and effort to write all of that out. It is highly appreciated.

This portion:

Plantwiz wrote: »

Mostly, I would recommend that you simply offer a pass-through on the hardware, you may even buy it locally for the client (saving them the drive to the store) but you simply do not stock anything and bill them exactly for the sticker price of the item...no markup, because you are in he the business of service and making your client happy. Besides, you will make money on the install of the item.

Precisely what I was thinking. Anything else would seem unethical and greedy. I am glad I am at least along the lines on one part. There is still a lot of research to get done though and many items to consider until I could see if the profit potential outweighs the risks.

Thanks also again to the OP for creating this superb thread.

pixa241

Xyro wrote: »

Plantwiz,
Thank you for taking the time and effort to write all of that out. It is highly appreciated.

This portion:

Precisely what I was thinking. Anything else would seem unethical and greedy. I am glad I am at least along the lines on one part. There is still a lot of research to get done though and many items to consider until I could see if the profit potential outweighs the risks.

Thanks also again to the OP for creating this superb thread.

No problem and thanks to everyone. What would you guys recommend the easiest way to assess my area and their needs. Just walking into business and asking?

Plantwiz

@pixa241,

Yes, the easiest (low cost) method is pound the payment and press flesh. Get in there face-to-face if you can...six minutes max initially, ask if they like their current support? In house support or someone/company on demand? You'd like to leave your card as you specialize in 'x', and if they'd ever like to give you a try, to call. Make a point to speak with the person who makes the IT decisions and if not acquire their name for a call back in a few weeks. Touch base, periodically, don't be pushy, but be persistent. You will know (and maybe will make a few mistakes) with those who you should not call back, and those who won't mind if you call them.

You call back could be a tip for a new 'x' and that you simply appreciated their time 'last week (or whenever)' and wanted to ensure they were aware of the 'x'. No pressure, just keeping your name out front.

Yep, a lot of 'freebie' stuff initially, but if you can send a simple/professional newsletter every month or two, or a link to a blog you maintain (key is maintaining it), then you are subtly advertising your services and they are growing familiar with you.

You could do a mailing, but mailed surveys generally result in 1-2% returned responses. It will be a start, from there you grow.

Xyro

I started reading this book yesterday:
Amazon.com: Start Your Own Computer Business: Building a Successful PC Repair and Service Business by Supporting Customers and Managing Money eBook: Morris Rosenthal: Kindle Store

It looks juvenile but thus far it seems to have a lot of interesting information.

White Wizard

I ran an IT business for over 5 years.

Unless you have substantial capital or are well known in the community, initially business will be extremely slow unless you will be pursuing contracts. This really depends on what kind of IT business you are referring too.

Keep in mind startup costs related to marketing, creating an LLC or DBA, insurance, supplies to provide support, building expenses etc.

If your going to do it, do not KINDA do it on the side or when time permits, pursue it 110% and give it everything.

When you run a business, you stay as long as you have too to get things done, you don't get off at 5 everyday.

shodown

I started with very little money. I did setup a LLC and took a job corp to corp, to start brining money into my company and paying myself. I also starting gathering people with the other skills I didn't have and ask who was open to side work at the time. Once I had a database of established people I started looking into how to grow and find more business. I worked with cold callers, and other types of business development people to win business. Its a long road, but well worth it.