Moving away from residential business to small businesses

By justinsm99 ·
Hello, I'm looking for advice on transiting my computer repair business from residential to more small businesses. How much insurance will be needed? Is their a particular market to focus on for start up businesses?

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Start with a Business Plan

by oldbaritone In reply to Moving away from resident ...

Start by developing a business plan. You can get help from many agencies, free. SCORE is one, Small Business Council is another. In developing your business plan, you'll start figuring these things out. You're probably going to be surprised, and be prepared for some "sticker shock." Being in business isn't cheap.

One of the first things you'll need to do is develop business relationships with a good attorney, a good accountant, and a banker. Every entrepreneur needs those people on their team.

Remember that fixed overhead can kill your business very quickly. If you make a 10% profit on what you do, you need to make 10x that much gross revenue to cover it - for example, if your rent for your office/storefront is $1000/mo, you'll need to be able to grow your current business $10,000/mo or $120,000/yr just to cover the rent. And that may or may not pay for the heat/AC and lights, nor the insurance, nor the phone bill ... and the list is endless.

When you hear "making over $200,000 a year" you probably think that's a lot of money, if this is your first business. You'll find out quickly that it's peanuts in the business world. There's a HUGE difference between "gross" and "net."

And we haven't even begun the discussion of business licenses and taxes, regulations and withholding, worker's compensation, SE tax, and dozens of other things that employees don't realize their employers must pay.

You can make an excellent income as a small businessperson, but you can also go broke pretty fast if you're not careful.

And I'm sure other TR self-employed will chuckle:

Being in business for yourself means you can work half-days every day!
(And you even get to choose which 12 hours a day, 7 days a week that will be!)

Good luck!

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