Need all the advice I can get

[JohnScottKy]

So, Ive had this idea for a few years to start my own computer repair/game business. But getting engaged, having a child and starting a new job has put a hold on all those plains. Taking care of a family is expensive and to start a new business, especially one that I see everyone doing (Working out of home, repairing pcs) has me skeptical to getting a business started.

So my plain is, to keep saving up for at least a years worth of rent on a space & in the meantime advertise out of home.

I have a pretty good idea about all my plains, Ive thought things through and at this point I project I would not turn a profit in my area for what Ill be doing for at least 2+ years.

Ive been working with PCs for 8+ years (Im 24) I would be advertising repairing pcs/Phones & tablets & selling used games. The space I am looking to rent is in a good area and is cheap (1k a month). My area there is little to no store operations that do PC repair or used games (other than gamestop) which I can fully compete with on prices.

So now, Im just needing some advice. How to go about doing this, what I would need and why. Also Im thinking of setting up my business as a sole proprietor. From what I understand that is the cheapest way to start one & I would just have to pay out of pocket for everything. That way if it fails within a year or 2 Im not owing $15k to a bank. Correct me if I am wrong though. My brother in-law plains to go in with me on it 50/50 everything for rent and pay. Is it a good idea to start up a business like this in this economic environment? If I left something out (In a hurry as I write this) please ask any questions to better help explain and help you understand that I may have left out. Im not looking to get rich, Im looking to do something I love and at least get by on. Thanks guys.

[vangogh]

Welcome to the forum John. I'll do my best to answer as many of your questions as I can. I understand wanting to make sure you take care of your family. That really is most important. Just know that going into business involves some risk. At some point you have to weigh the pros and cons and make a decision.

A sole proprietor is easy to set up. Register a trade name with the secretary for state for your state and you're a self proprietor. Look for their website and you can likely register through it. When tax time rolls around you file as an individual, except now there will be some different forms to fill out. Instead of a W2 from an employer you fill out a 1040 Schedule C that lists earnings and expenses for the business.

You only owe money to a bank if you borrow it. You can form any kind of business entity and owe or not owe the bank.

Sounds like your planning on starting a partnership with your brother-in-law though so you'd probably wan tot form a partnership. It's almost as easy as becoming a sole proprietor. I think each state is a little different, but it's probably just a form or two. Again check the secretary of state website. If you are forming a partnership then you really want to work out a partnership agreement with your brother-in-law. Don't assume everything will work. It doesn't always. Work out an agreement that covers everything.

Who owns what % of the business?
What happens if one partner leaves the business
What happens if you need to dissolve the partnership
etc.

As far as the storefront is concerned think less about the price or rent/lease and more about the location of the store. Maybe the rent is low, because it's a poor location that doesn't draw much traffic from customers. Great if it doesn't cost much, but it's much more important for the store to be located somewhere that's good for business if that makes it more expensive.


which I can fully compete with on prices

No, no, no, no. It's the instinct of many people to think they can compete on price. Competing on price is the domain or large companies like Walmart. They can afford to sell for less because they're capable of selling in large quantities. You can't sell in large quantities. You want to think about how you can add value allowing you to charge more. People will pay more for good service or a better product. Find another way to compete. Price is often a losing battle. Someone else can always price less than you and if the reason you attracted customers is price then as soon as someone else charges less your customers leave for the cheaper price.

Hope something in there helps.

[huggytree]

id look into a LLC....its pretty much what everyone is doing right now....talk w/ your accountant about it....i am a llc and file as a S Corp...that seems to work out well with small/new businesses

i think it cost me $150 and i did it on line with the State or WI website

i think its a great idea to start out at home....hard to sell video games in person that way though....you could offer PC pickup and delivery...this way customers wont have to come to your house and see its a small time operation.....

good luck

[David Hunter]

I would think long and hard about going into business with anyone... especially family.

There's another person on this forum that had a partnership but it wasn't working out. Make sure everything is spelled out on who does what.

Also, can you start this in your spare time?

[JohnScottKy]

I would think long and hard about going into business with anyone... especially family.

Also, can you start this in your spare time?

Yeah I am doing this out of home at the moment, I have a website & facebook page made for it & advertising it now. To clear up the "brother In-law" thing, hes just going to be helping me out with repairs and stuff & i plain on giving him a % of the commission of the jobs that he takes on.


i think its a great idea to start out at home....hard to sell video games in person that way though....you could offer PC pickup and delivery...this way customers wont have to come to your house and see its a small time operation.....

Thanks for the reply. Yeah I am posting video games & prices on my website & FB page at the moment along with the services I offer. Its still in the early stages but its coming along. I work a full time job as a receiving manager & the times/days I can offer to be here is evening and weekends which isn't so great right now for business but Im working on it.


No, no, no, no. It's the instinct of many people to think they can compete on price. Competing on price is the domain or large companies like Walmart. They can afford to sell for less because they're capable of selling in large quantities. You can't sell in large quantities.

Yeah true, I meant like matching not under cutting but there is a place about 45 miles from me thats sorda doing what I am & they are not only higher than most retailers they are charging 30%+ more than what it even goes for on ebay and amazon. I can at least match those "selling games that is". I buy games from trade sites, flea markets, just anywhere to get a good deal so I can turn profit. As for repair services I think I have a good set up going on right now with my offers and deals. Its just finding time where I can be home & start finding customers. Thanks again for the replys guys & please if you have anything else to offer for advice it would greatly be appreciated.