Looking for some advice and getting started

[KingTomato]

I filed for an LLC back in January while still working for another company and have been putting off focusing just on it but have decided to take the plunge. So I came here looking for some advice about marketing, negotiating prices and contracts, etc. First off I'm starting an IT service company and hoping to offer 24x7 Remote Help Desk Support for residential and commercial clients. Now the most research I've done so far is calling up the local shops, seeing how much the charge, etc. The things is all that is on site support, they offer limited remote support and even that is only during business hours. Next week once my new business cards are in I'm actually hoping to walk around the town I'll be in, shake some hands with local businesses, hand out some cards and let them know I'm here. Now one niche I've found is Point-Of-Sale support. None of the shops around here offer POS support and I have 3 years experience with it so that will help hopefully for some businesses.

Basically I'm just looking for advice on getting my name out there, first in the town I'm located in and then expanding outwards. I'm setting up a website but not done yet and currently talking with a PC shop in Ohio that interested in providing my number to customers and any clients that I get from him he gets a percentage of whatever they spend. I'm also talking with another company about providing website testing and liaison support between his clients and his design/development teams. Does anyone have any advice on how to go about pricing something like that? I dont want to undersell myself but would like to make a nice profit without the buyer thinking it's to much.

Thank you for reading this, sorry it was so long.

[BeTheBest]

Hi KingTomato!

Well, all of this pricing issue may come down to perception. You know that there isn't any reality. It's all about perception.

I would think that you need to compare on site service prices with remote, and explain what can or can not be handled by your remote services. Although I have not required it myself, I know of one person who did a lot of work that way (remote). Once you start to talk to people, you will get an idea. I would test a couple of price points and see what the reaction is. If you're standing in front of the person, their face will tell all.

With respect to getting your name out there, you really have to test the waters the same way. I would simply try asking some of the shops. What would they expect? If you're going to offer something... then you better have a slick, no nonsense method of tracking and reporting. If it starts to work, you will find that nobody will refuse your commission check, I promise.

Hope this helps! Good luck!

[scottish]

there's no easy way to get the right price. trial and error is usually what I've done. and that means sometimes you're working for low wages. when you do get the correct price it'll probably stay that way for a long time.

[vangogh]

So far Seth you seem to be off to a good start. I think you're being smart in looking for where the market is underserved (remote support and POS support) and targeting that for your business. Both your own site and talking to people will help get the word out. Tell everyone you know. My early clients were often friends of friends so tell everyone what you do even if they aren't likely to become a client.

With the people and businesses you think are potential clients figure out where they spend their time. Do they read the same magazine? Visit the same websites? Meetup in a local coffee shop every month? Wherever they spend time is a place you can reach them. It makes sense to have some kind of presence in those places. Advertise in the magazines, write guest articles on the sites they visit, have coffee where they meet.

Don't get discouraged if you don't get clients right away. Hopefully you will, but it could take awhile. What's important is to keep at it and keep trying new ways to reach people if what you've tried hasn't worked.

Pricing can be a bit of trial and error. Base it on the value you bring to your clients. I think new businesses have a tendency to underprice themselves more than the reverse. Find out what others in your area charge and try to be in a similar range at first. The more experience you have the better you'll know what you should be charging.

[KristineS]

POS Support is a good idea. I know when we started out with our POS, which we use for trade shows, it was a big job getting it set up and learning to use it. Support for that would have been useful.

As for getting known, one of the best ways to do that would be to join your local Chamber of Commerce. That's a great way to connect with local brick and mortar businesses.

[KingTomato]

Thank you for the replies everyone. I am working on joining the Chamber of Commerce and I just found out yesterday that my town has a business expo every year and it's in October. So it looks like I got started just at the right time and have purchased some booth space to setup and let them know I'm here.

[KristineS]

A business expo can be a great tool. Make sure you have lots of business cards, and at least a one sheet that describes the services you offer. You also might want to looking into starting a Twitter account or a Facebook page for your business. A lot of people are using Twitter and Facebook to publicize their businesses locally, and if you're strategic about who you follow, it could be a useful relationship building tool.

[vangogh]

The Chamber can be good, though the business you get from it will mostly depend on how well you can network at the different events. Once your website is up and running make sure to have your page on the Chamber's site link to it. A Chamber of Commerce link can be a pretty good link.

[nealrm]

I hope your comment of "taking the plunge" doesn't imply you are quitting your day job. You still have a great deal of ground work before you are at that stage. If I am wrong about your comment, the following advise is still good. First, have you done a budget for your business. You need to know how much everything will cost in order to determine if you want in a specific market segment. Notice, I did not state the you need to know cost to set a price. Price is determined by the market, you then determine if you want to get into that market based on your costs.

Next, how are you going to live while your business gets going? If you are going to keep the day job, then that is taken care of. Otherwise you will need 12 months of living and business expenses in the bank.

There is a book called "Quitters" that talks about how to move from your day job to your dream job. It has a good check list of what you will need to make the move. It also covers the difference between being self employed and have a job where you happen to own the business.

I wish you luck and look forward to seeing you more here.

[KingTomato]

Actually I did quit my day job. I have no debt, own my car, no student debt, got it all through scholarships and have enough saved up to last about 2 years or so on everything, insurance, rent, food, insurance, etc and also calculated about 15% of what I needed to live to take care of anything that came up. So yea I kind of did take a plunge and maybe you'll think it's a bad idea but I'd rather spend a year and half trying to make something work and fail then do something I'm not happy with 40 hours a week.

[nealrm]

No - if you have no debt and 2 years of expenses then it's OK to leave the say job and try something else. Looks like you have thought it through more than most. Too many people see the goal of being self employed and miss what it takes to get there.

[KingTomato]

Yea, owning a small business is something I've wanted since high school so I was saving everything starting with my fast food job my sophomore year so that combined with the money I was making in IT has me well off to just completely focus on this. Also this week Im meeting with a couple lawyers to be sure I have everything in line and my aunt is an accountant so she has offered to help me with all the finances in return for free computer support. Right now all my business expenses will mount to about $300-$400 including Internet, Virtual PBX System, Helpdesk software, electric and since I work from home I dont have to pay rent on an office or anything, just the rent for the house.

Right now the business I'm talking with about taking over their Client Support I've proposed a flat fee of $600 a month for up to 100 projects and support incidents. So that will take care of most of the bills and with the local business that I hope will come as well as doing online support through places like Elance and SupportSpace I definitely think I can make it work if I'm just smart about it.

[vangogh]

Too many people see the goal of being self employed and miss what it takes to get there.

Very true. People have a tendency to see all the potential good while ignoring the struggle.

@KingTomato - If it means anything I wasn't in the best financial position when I started working for myself. The smart thing would have been to get a job and start the business part time. I knew I would never do that though. It was taking all my energy to get through the 40 hour week that nothing would have been left to start on the business.

Instead I got a little creative in figuring out how to pay the bills and I put all my effort into the business. I was confident I could make it work before I would absolutely need to find a job. 8 or so years later and I'm still working for myself.