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How do I set up a computer repair business?

i am 14 and i absolutely love computers, and i'm always fixing a couple, you know, friends, family... doing stuff in school. I know a lot about computers, i've fixed this computer to a "like-new" state after being told it was impossible after being struck by a certain virus. I would love to set up a small business to bring in cash, a teenager my age needs cash! I feel i know enough about computers, to help people and fix them. The question is, what do you think the challenge would be, or how should i charge people?? Also, how could i advertise this and how would i stay organized without having computers piled up. I know, a silly little pointless question but i need cash, and this is the most fun way for me!!

Dave's Answer:

What a great question, actually. When I was a teen, I had a bicycle repair business that I ran out of my garage and I used to solicit the neighbors to wax their cars. Lots of work, not so much reward. Sounds like what you're doing would offer a better payment for less effort, so I surmise right off the bat that you're a better businessperson than I was. :-)

Now, the biggest issue with any sort of service company is to ensure that you set expectations properly regarding what you'll be delivering, and have a reasonable policy for both pricing and refunds. Specifically, what happens if someone entrusts you to get a virus off their computer and you end up trashing their disk and destroying all their data? It might seem like a bit more scary a business when you have some adult yelling at you for losing their wedding pictures or the report they need to give the boss on Monday.

You can mitigate that by having a very clear liability policy, a document that they sign when they agree to have you work on their computer that says, in essence:

By hiring me to fix your computer, you agree that you have already done an adequate backup to retain all of your important data, and that if, in the course of my repairs, there is any sort of data loss you won't hold me liable. In addition, while I will make the best efforts to remove any viruses, spyware, etc., it is possible that some will creep on your computer during my repairs, and you agree not to hold me liable for any infections either.

Print it, make them physically sign and date the paper, then keep it on file.

Pricing-wise, that's a tough one because on the one hand, you can charge whatever the market will bear (a basic economic theory, actually, that the market determines the value of a product or service), but on the other hand, it's pretty tough to justify a $250/hour rate if you're a 14yo working out of your dining room. :-)

I suggest that you call up a couple of the local computer repair facilities and ask them what they charge for basic repairs, hardware and software upgrades, etc., then charge 50%-75% of that rate. If they charge, for example, $75 to install new RAM in a computer, you could charge $49 and get a good amount of business. Charge $25 and you'll get even more, actually, and as you know, that's the kind of task that's pretty easy if you're comfortable with gear and terrifying if you aren't.

On the other hand, you don't want to charge too little, because then you're undervaluing your skills and won't have any credibility as a PC tech, 14 or otherwise. If you charged $5 to install RAM, for example, people probably wouldn't ask you for help because they wouldn't perceive you as a "real business".

And in that light, I strongly suggest that you make up some business cards and even perhaps pull together a one page Web site for your business. By having the elements of a professional, you'll more quickly convey the impression of professionalism, which helps you gain business and charge more. You can get business cards for free from somewhere like VistaPrint.com, and with a bit of fiddling, they'll look great! Now you can go into the local computer stores and ask if you can stick a pile of your business cards on their bulletin board or otherwise ask a friendly employee to help you get some business.

Finally, remember that people are entrusting you with more than just a piece of gear. Modern computers have lots of memories, lots of important files and even legal documents on them. Make sure you treat their gear with maturity and professionalism and that you demonstrate they haven't misplaced their trust in you when they give you a computer, laptop or other equipment to fix or upgrade.

Good luck and I hope you can come back in a few months and let us know how things are going!

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Comments

Hey, one of the things you will need is a bookkeeping program, email me and I'll hook you up. lumencreativegroup@gmail.com

Luis

Posted by: Luis at February 11, 2007 2:59 PM

Thanks, Luis. It's worth noting that you can always just go to somewhere like download.com or versiontracker.com (I prefer the former for PC software, the latter for Mac software) and find a wealth of great software you can download as freeware, shareware, or trial versions of commercial software, including bookkeeping applications.

Posted by: Dave Taylor at February 12, 2007 8:46 PM

Hi I was building and fixing computers at 12 years old and still do at 23, just because you have fixed a couple of your own and your mate's doesn't mean you are ready for this there are many reasons a computer could be having problems and untill you get to the stage where you know whats wrong just looking at it maybe you should wait, What is your OS knowledge e.g. can u use most Linux Distros and install hardware, drivers and software with ease and of course the mac OS which if you know linux you shouldn't really have a problem with dont just think you can do it because you have fixed a couple its a hole new ball game when the PC is not yours

dont want to put you off but make sure your ready

Posted by: Treggs at February 13, 2007 10:20 AM

Ive never found a virus that will stop you sorting a computer out normally a hard drive wipe is the most needed otherwise replace hard drive,

I havent yet seen one which throws high frequencies through the pc blowing chips.

I guess the PC repair man told you it was unrepairable to try and get some more money

thanks

again

Posted by: Treggs at February 13, 2007 10:25 AM

Do you need reusable windows and fixing cd's or just download of the internet when needed. If do how can I buy them.

Posted by: gerald de camillo at February 13, 2007 8:02 PM

The contract you use needs to be much more complete than the bit of language above. Most importantly, remember that in most common law jurisdictions, infancy (e.g. being below the age of 18) is a bar to contracting other than for necessities.

Trying to enforce the terms of the contract could waive that protection and subject you to liability. You may still be liable for your own negligence, irrespective of your waiver, and in acting as a professional, you will be held to the standard of care of an adult professional (rather than as a fourteen year old).

All of that is just a general sketch of American law, and you should look to a lawyer or the equivalent in your jurisdiction for complete advice on what liabilities you are undertaking.

Posted by: John Jenkins at February 16, 2007 3:14 PM

At 14, I was still taking things apart but unable to put them back together. :-) Seriously, by all means open your computer business right now. You have a passion for fixing computers and a need for money. These are a great combination. I have been repairing computers for roughly 17 years and I started as a teenager. The world is a complicated place and always will be. Don't get "Analysis Paralysis" over lawyers and legal documents. All of this will come as you grow in the business. Business is a risk and for that you get penalty and reward. In my Kansas City computer repair business, I focus on reducing the customers risk by going through a checklist with them and verifying backups have been performed, important documents have been located, etc. If you can afford it now, I would get some business liability insurance to cover mistakes you might make that you can actually put a dollar figure to. Make a list of every calamity that could befall your customer for using your service and keep it with you on every repair visit. Focus on lessening the risk of each customer and you will do well and you will be appreciated by your customers more often that not. I guarantee it! Check out my Computer Repair site at www.obcomputerrepair.com for an idea of the fees you can charge after you've been around awhile. I would follow Dave's advice and start low and as your experience, the demand for services and the credibility of your business increases you can increase your fees. I leave you with this quote from Harvey Mackay to take to heart: "There are many formulas for success, but none of them works unless you do." So get to work!

Posted by: Butler at February 16, 2007 11:39 PM

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www.links4techs.blogspot.com

Posted by: bob at March 26, 2007 1:40 PM

I was once in your same position reading the same very comments you are reading now. I am 27 now and have a Succuesful Home Based Business www.tri-cityonline.com Don't let these guys scare you. Yeah it is possible you could loose data but most customers unless you are dealing with banks or Goverment Agencies don't care about whats on their pc some of the times I have had to Reformat drives and used GetDATABack to get all the files back. The only way you could loose data is if you damaged the disk hardware in which case you would have to be really unlucky or an idiot. By the time they get the computer to you it should already be Damaged or Infected thats why they bring it to you so you can fix it. But not everything is about Fixing there is also install of new hardware, software, and Networks. Good Luck As long as you love the business and have pacients to stick by it, it will grow you wont see it, but it will. It's kinda like looking at a tree.

Posted by: Adrian at May 8, 2007 2:47 PM

This is a very interesting topic. I too want to getinto the repair buisiness. I have lots of friends and co-workers comping up to me asking me to do this or that to thier computers or asking for technical advice on software. I know that for now I want to go into a part time endevor and eventually lead to full time. My questions come into more about the legalities and such. Any Ideas? or thaughts?

Posted by: Michael Rose at December 30, 2007 11:01 PM

No matter how good your skills are, the biggest barriers that you're likely to face are:

1. Getting steady, high-paying clients once you've exhausted referrals from friends and family

This is a problem no matter whether you're 14, 34, 54, etc.

Marketing to the RIGHT prospects is a HUGE part of having a profitable computer repair business. You can find all kinds of proven tips for how to do this right on our Web site at http://www.ComputerConsultingKit.net

If you're serious about the computer repair business, definitely also subscribe to our list at that URL, so you can get invited to one of our upcoming computer repair business Webinars.

2. Your age

Like it or not, most small business owners or managers will have a very hard time forking over $50-$100/hour to a teenager, even if your skills are just as good (if not better) than someone 10-20 years older.

Even when I was in my mid-late 20's, I still had to "maturize" my image to avoid having narrow-minded entrepreneurs think that my skills weren't "worth" $100+/hour.

That said, many will be happy to "exploit" a bargain from you if they perceive that they're getting the skills of a $50-$100/hour computer consultant for $25/hour.

It's all in the marketing and the positioning.

Posted by: Joshua Feinberg at January 21, 2008 6:19 PM

I have a lot to say, but ...

I have a lot to say, and questions of my own for that matter, but most of all I'd like to say thank you for all your efforts on this Web site by buying you a chai!

I do have a comment, now that you mention it!