Starting a computer repair business can be very profitable. With proper planning, execution and hard work, you can enjoy great success. Below you will learn the keys to launching a successful computer repair business.
Importantly, a critical step in starting a computer repair business is to complete your business plan. To help you out, you should download Growthink’s Ultimate Business Plan Template here.
14 Steps To Start a Computer Repair Business:
- Choose the Name for Your Computer Repair Business
- Develop Your Computer Repair Business Plan
- Choose the Legal Structure for Your Computer Repair Business
- Secure Startup Funding for Your Computer Repair Business (If Needed)
- Secure a Location for Your Business
- Register Your Computer Repair Business with the IRS
- Open a Business Bank Account
- Get a Business Credit Card
- Get the Required Business Licenses and Permits
- Get Business Insurance for Your Computer Repair Business
- Buy or Lease the Right Computer Repair Business Equipment
- Develop Your Computer Repair Business Marketing Materials
- Purchase and Setup the Software Needed to Run Your Computer Repair Business
- Open for Business
1. Choose the Name for Your Computer Repair Business
The first step to starting a computer repair business is to choose your business’ name.
This is a very important choice since your company name is your brand and will last for the lifetime of your business. Ideally you choose a name that is meaningful and memorable. Here are some tips for choosing a name for your own computer repair business:
- Make sure the name is available. Check your desired name against trademark databases and your state’s list of registered business names to see if it’s available. Also check to see if a suitable domain name is available.
- Keep it simple. The best names are usually ones that are easy to remember, pronounce and spell.
- Think about marketing. Come up with a name that reflects the desired brand and/or focus of your computer repair business.
2. Develop Your Computer Repair Business Plan
One of the most important steps in starting a computer repair business is to develop your business plan. The process of creating your plan ensures that you fully understand your market and your business model. The plan also provides you with a roadmap to follow and if needed, to present to funding sources to raise capital for your business.
Your business plan should include the following sections:
- Executive Summary – this section should summarize your entire business plan so readers can quickly understand the key details of your new computer repair business.
- Company Overview – this section tells the reader about the history of your computer repair business and what type of computer repair business you operate. For example, are you a PC, Mac, mobile phone, or a tablet repair shop?
- Industry Analysis – here you will document key information about the computer repair industry. Conduct market research and document how big the industry is and what trends are affecting it.
- Customer Analysis – in this section, you will document who your ideal or target customers are and their demographics. For example, how old are they? Where do they live? What do they find important when purchasing products or services like the ones you will offer?
- Competitive Analysis – here you will document the key direct and indirect competitors you will face and how you will build competitive advantage.
- Marketing Plan – your marketing plan should address the 4Ps: Product, Price, Promotions and Place.
- Product: Determine and document what products/services you will offer
- Prices: Document the prices of your products/services
- Place: Where will your business be located and how will that location help you increase sales?
- Promotions: What promotional methods will you use to attract customers to your computer repair business? For example, you might decide to use pay-per-click advertising, public relations, search engine optimization and/or social media marketing.
- Operations Plan – here you will determine the key processes you will need to run your day-to-day operations. You will also determine your staffing needs. Finally, in this section of your plan, you will create a projected growth timeline showing the milestones you hope to achieve in the coming years.
- Management Team – this section details the background of your company’s management team.
- Financial Plan – finally, the financial plan answers questions including the following:
- What startup costs will you incur?
- How will your computer repair business make money?
- What are your projected sales and expenses for the next five years?
- Do you need to raise funding to launch your business?
3. Choose the Legal Structure for Your Computer Repair Business
Next you need to choose a legal structure for your computer repair business and register it and your business name with the Secretary of State in each state where you operate your business.
Below are the five most common legal structures:
1) Sole proprietorship
A sole proprietorship is a business entity in which the owner of the computer repair business and the business are the same legal person. The owner of a sole proprietorship is responsible for all debts and obligations of the business. There are no formalities required to establish a sole proprietorship, and it is easy to set up and operate. The main advantage of a sole proprietorship is that it is simple and inexpensive to establish. The main disadvantage is that the owner is liable for all debts and obligations of the business.
A partnership is a legal structure that is popular among small businesses. It is an agreement between two or more people who want to start a computer repair business together. The partners share in the profits and losses of the business.
The advantages of a partnership are that it is easy to set up, and the partners share in the profits and losses of the business. The disadvantages of a partnership are that the partners are jointly liable for the debts of the business, and disagreements between partners can be difficult to resolve.
3) Limited Liability Company (LLC)
A limited liability company, or LLC, is a type of business entity that provides limited liability to its owners. This means that the owners of an LLC are not personally responsible for the debts and liabilities of the business. The advantages of an LLC for a computer repair business include flexibility in management, pass-through taxation (avoids double taxation as explained below), and limited personal liability. The disadvantages of an LLC include lack of availability in some states and self-employment taxes.
4) C Corporation
A C Corporation is a business entity that is separate from its owners. It has its own tax ID and can have shareholders. The main advantage of a C Corporation for a computer repair business is that it offers limited liability to its owners. This means that the owners are not personally responsible for the debts and liabilities of the business. The disadvantage is that C Corporations are subject to double taxation. This means that the corporation pays taxes on its profits, and the shareholders also pay taxes on their dividends.
5) S Corporation
An S Corporation is a type of corporation that provides its owners with limited liability protection and allows them to pass their business income through to their personal income tax returns, thus avoiding double taxation. There are several limitations on S Corporations including the number of shareholders they can have among others.
Once you register your computer repair business, your state will send you your official “Articles of Incorporation.” You will need this among other documentation when establishing your banking account (see below). We recommend that you consult an attorney in determining which legal structure is best suited for your company.
4. Secure Startup Funding for Your Computer Repair Business (If Needed)
In developing your computer repair business plan, you might have determined that you need to raise funding to launch your business.
If so, the main sources of funding for a computer repair business to consider are personal savings, family and friends, credit card financing, bank loans, crowdfunding and angel investors. Angel investors are individuals who provide capital to early-stage businesses. Angel investors typically will invest in a computer repair business that they believe has high potential for growth.
5. Secure a Location for Your Business
When starting a computer repair business, or a commercial computer repair business, the first step is to find a business location. The best place for a computer repair business is in an area with many companies and people. A busy area will bring in more customers. It would help if you also looked for a location that is easy to get to and has plenty of parking. You can rent a space or buy a property. If you purchase a property, make sure it is zoned for commercial use.
6. Register Your Computer Repair Business with the IRS
Next, you need to register your business with the Internal Revenue Service (IRS) which will result in the IRS issuing you an Employer Identification Number (EIN).
Most banks will require you to have an EIN in order to open up an account. In addition, in order to hire employees, you will need an EIN since that is how the IRS tracks your payroll tax payments.
Note that if you are a sole proprietor without employees, you generally do not need to get an EIN. Rather, you would use your social security number (instead of your EIN) as your taxpayer identification number.
7. Open a Business Bank Account
It is important to establish a bank account in your computer repair business’ name. This process is fairly simple and involves the following steps:
- Identify and contact the bank you want to use
- Gather and present the required documents (generally include your company’s Articles of Incorporation, driver’s license or passport, and proof of address)
- Complete the bank’s application form and provide all relevant information
- Meet with a banker to discuss your business needs and establish a relationship with them
8. Get a Business Credit Card
You should get a business credit card for your computer repair business to help you separate personal and business expenses.
You can either apply for a business credit card through your bank or apply for one through a credit card company.
When you’re applying for a business credit card, you’ll need to provide some information about your business. This includes the name of your business, the address of your business, and the type of business you’re running. You’ll also need to provide some information about yourself, including your name, Social Security number, and date of birth.
Once you’ve been approved for a business credit card, you’ll be able to use it to make purchases for your business. You can also use it to build your credit history which could be very important in securing loans and getting credit lines for your business in the future.
9. Get the Required Business Licenses and Permits
Licensing and permitting requirements may vary by location. Some licenses and permits you may need to start a computer repair business, or a commercial computer repair business include a business license, a vendor’s license, a seller’s permit, and a contractor’s license. Reach out to your local licensing office to determine which licenses and permits are required for your business.
10. Get Business Insurance for Your Computer Repair Business
The type of insurance you need to operate a computer repair business may vary depending on the scope of your operation. For instance, if you offer mobile computer repair services, you will need auto insurance for your business’s vehicle.
Some business insurance policies you should consider for your computer repair business include:
- General liability insurance: This covers accidents and injuries that occur on your property. It also covers damages caused by your employees or products.
- Auto insurance: If a vehicle is used in your business, this type of insurance will cover if a vehicle is damaged or stolen.
- Workers’ compensation insurance: If you have employees, this type of policy works with your general liability policy to protect against workplace injuries and accidents. It also covers medical expenses and lost wages.
- Commercial property insurance: This covers damage to your property caused by fire, theft, or vandalism.
- Business interruption insurance: This covers lost income and expenses if your business is forced to close due to a covered event.
- Professional liability insurance: This protects your business against claims of professional negligence.
Find an insurance agent, tell them about your business and its needs, and they will recommend policies that fit those needs.
11. Buy or Lease the Right Computer Repair Business Equipment
To run a computer repair business, you will need some basic office equipment including a computer, phone, and internet connection.
12. Develop Your Computer Repair Business Marketing Materials
Marketing materials will be required to attract and retain customers to your computer repair business.
The key marketing materials you will need are as follows:
- Logo: Spend some time developing a good logo for your computer repair business. Your logo will be printed on company stationery, business cards, marketing materials and so forth. The right logo can increase customer trust and awareness of your brand.
- Website: Likewise, a professional computer repair business website provides potential customers with information about the products and/or services you offer, your company’s history, and contact information. Importantly, remember that the look and feel of your website will affect how customers perceive you..
- Social Media Accounts: establish social media accounts in your company’s name. Accounts on Facebook, Twitter, LinkedIn and/or other social media networks will help customers and others find and interact with your computer repair business.
13. Purchase and Setup the Software Needed to Run Your Computer Repair Business
To start a computer repair business, you’ll need some essential business software. First, you’ll need business software such as QuickBooks to manage your finances. You may also want to invest in an inventory management system to track the parts and tools you need for repairs. Finally, a customer relationship management (CRM) system will be helpful for managing your customer information, and a website will be useful for promoting your business.
14. Open for Business
You are now ready to open your computer repair business. If you followed the steps above, you should be in a great position to build a successful business. Below are answers to frequently asked questions that might further help you.
How to Finish Your Ultimate Business Plan in 1 Day!
Don’t you wish there was a faster, easier way to finish your computer repair business plan?
With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!
Click here to finish your computer repair business plan today.
How to Start a Computer Repair Business FAQs
Is it hard to start a computer repair business?
There is no one-size-fits-all answer to this question, as the difficulty of starting a computer repair business will vary depending on the specific niche, the amount of competition in your area, and your level of experience. However, if you have the skills and knowledge required to start a successful computer repair business and you can market your computer repair service effectively, you are off to a good start. Additionally, it is helpful to have a solid business plan before starting any business to ensure that all of your bases are covered and that you have a clear road map for success.
How can I start a computer repair business with no experience?
There are a few ways to start a computer repair business with no experience. You can start by doing research on the internet, attending computer repair classes, or reading books about computer repair. Additionally, you can network with other computer repair shops and learn from their experiences. Finally, you can offer free services to friends and family to get some experience before starting your own business.
What type of computer repair business is most profitable?
The profitability of computer repair businesses can vary depending on many factors. However, some of the most profitable computer repair businesses are those that offer services in high demand, such as data recovery or virus removal. Furthermore, businesses that offer a variety of services, as well as those that have a strong online presence, are likely to be more profitable than those that do not.
How much does it cost to start a computer repair business?
It costs about $1,000 to start a computer repair business. This includes setting up a small workshop, purchasing necessary tools and equipment, and advertising your new business. If you lease or purchase a space, the startup costs will be higher.
What are the ongoing expenses for a computer repair business?
There are a few ongoing expenses for a computer repair business. One is the cost of advertising and marketing. This cost may include flyers, online ads, and mailing lists. Another expense is the cost of parts and tools. A computer repair business may need to invest in new tools and parts as technology changes. Finally, there is the cost of insurance. This is important to protect the business and its employees in case of accidents or damage to equipment.
How does a computer repair business make money?
One way a computer repair business makes money is by charging a fee for each service provided. Many computer repair businesses also offer hardware and software sales, which can provide additional revenue. Finally, a computer repair business can make money by providing consulting services to businesses or individuals.
Is owning a computer repair business profitable?
There are several reasons owning a computer repair business can be profitable. One reason is that the demand for computer repair services is high. Many people rely on their computers every day to conduct business and stay connected with friends and family. Additionally, many companies outsource their computer repair needs, giving computer repair businesses great opportunities to generate revenue. Finally, computer repair is a relatively low-cost business to start, making it an attractive option for entrepreneurs.
Why do computer repair businesses fail?
There are many reasons computer repair businesses can fail. One of the most common reasons is a lack of understanding of the market. Companies need to understand what their target customers are looking for to succeed. Another reason is a lack of very strong technical background. A business needs to understand the products they're repairing and the technology behind them to be successful. Finally, a lack of customer service can be a death knell for a computer repair business. If customers don't feel like they're getting the help they need, they'll take their business elsewhere.