I too have a small business geared to small business, but find that the majority of my work comes from home users. Mostly repairs, upgrades, virus removals and networking setups. Since I already have most of the tools I need, start up costs were low and I keep no inventory. I do have reseller agreements in place with both hardware and software vendors which allows me to make some margin on sales; right around 3% for a new PC and up to 20% on software. The real money is in services, since anyone can buy a PC at Wal-Mart, the other big box retailers or direct from the mfg. As far as support, I couldn't agree more about the big box stores. They are purely revenue and quota-driven and quality of service loses out. That is the nature of retail. And, their services are way overpriced; understandably considering all the overhead costs associated with operating a storefront in a mall.

Bottom line, if you can deliver quality work at a reasonable price and establish good relationships with your customers, they will refer you to their friends and your business will grow.