Start up costs/advice ????

Ashlinggnilsia

Hi All,

Myself and two others are looking into setting up a business depending on the cost of start up. Apart from what is listed below can anybody think of stuff we are missing....which im sure is pleny. We are basing it on a three month period initially.

1. Rent
2. ESB, Heating, Phone, Internet
3. Insurance
4. Marketing/Design
5. Accountants fees

Mind is gone blank now, but on top of that we are also trying to figure out everything we need to do from the legal side. The business would be a PC/Laptop repair/upgrade shop. Could we initially work from an office where they drop off we fix and they collect? I know we need to register the business and set up a business bank account and have insurance but is there anything else we need to do? Must we register for VAT straight away or what way does that work? We would not be selling any parts or accessories to begin with.

PCPhoto

Ashlinggnilsia wrote: »

Hi All,

Myself and two others are looking into setting up a business depending on the cost of start up. Apart from what is listed below can anybody think of stuff we are missing....which im sure is pleny. We are basing it on a three month period initially.

1. Rent
2. ESB, Heating, Phone, Internet
3. Insurance
4. Marketing/Design
5. Accountants fees

Mind is gone blank now, but on top of that we are also trying to figure out everything we need to do from the legal side. The business would be a PC/Laptop repair/upgrade shop. Could we initially work from an office where they drop off we fix and they collect? I know we need to register the business and set up a business bank account and have insurance but is there anything else we need to do? Must we register for VAT straight away or what way does that work? We would not be selling any parts or accessories to begin with.

thats where you will get most of your profit.

initial plan for 3 months ???? you need to have a serious business plan with projections for year 1, 2, 3 ... at least and hopefully years 4+ ...year one is basically about surviving - earn enough to pay bills - get the name out there and keep most profits to invest in advertising for the following year.....lets face it - a lot of business is by word of mouth - so let your friends know you exist and let their friends know....tell everyone to give you a buzz.

Have you done any market research as to if you have a viable business model - any competition in the area ? have you all been doing the same (PC/Laptop repair etc) ... if you are serious about this business - consider a pick up and drop off service.

People like convenience ... so its inconvienient for them to goto you - why dont you offer to pick it up and return it ....this would be an added bonus for potential customers..... cheap, affordable and quality work.

oh...say goodbye to time to yourself ..... if you want the business to succeed - be prepared to work evenings, saturdays, sundays, bank holidays (and dont expect extra money for it)..... when starting a business its important to create something that people will recommend to their friends....its important that unsatisfied customers are satisfied....your customer service skills will be tested.

EDIT: I like the username - but you should have a capital "A" at the end too

Ashlinggnilsia

ha ha yeah no we were planning on doing the drop off and collect and even if things got bigger we could collect and return after a while, i have no problem with giving it all of my time as i will unemployed shortly. The other two have been repairing laptops for people they know for the past few years in the evenings after work and get a bit for it for friends, family, friends of friends etc and we just feel that obviously if we set it up we would get much more people through the doors. We can also build pcs from scratch if desired, give us the budget we will get you the best you can get for your money, give you options, give quotes on costs of repairs before to see if your happy with it etc.

The location we want to set up the business has next to no competition what so ever, the majority of people i know would not know where to bring a laptop/pc to to be fixed and, pay well over the odds for new computers and laptops and i think that we could easily turn a profit with the right marketing, advertising and professionalism.

The three month this is basically us giving ourselves that time to suss everything out, if we are making a loss for three moths running clearly its not going to work out because none of us expect to take any wages, i can design all promotioal material, they can repair and upgrade, overheads are really our only cost so if we are making a loss and not even paying for promotional material, and the cost of labor, clearly it isn't going to work yano. but we are just trying to get a rough price together of what it will cost for things like insurance, etc that will show us how much we need to have to get the doors open to cover anything that is essential such as rent, insurance, business registration fees etc. just trying to figure out if there is anything we need to take into account that we have not in trying to get that estimate.

ir555

If you are going to give it a go for 3 months - would it be possible to run it from your home or something that eliminates that big cost of rent/ fit out etc.. No premises = no public liability insurance.

If you work hard on the advertising side of things and do a pick up and return from the start - is there really a need to get involved in renting etc.. until you are sure it is going to work.

Just thinking myself and if you had a good website, well signed van and the name was well know I don't really need to see a premises to get a computer fixed/ built.

Also free pick up/ return will be a major selling point - go with this for the start..

Put a van on the road and spend money on some good sign writing. Excelelnt way to advertise.

If you are keen on getting a premises contact your local county enterprise board and see have they any start up units in the area. They are well worth a visit and try and get in on some of their marketing courses etc..

Hope the above is of some help..
D

Ashlinggnilsia

Well you see i think it is important to have a premises because there is the whole thing of professionalism. You don't know who you are giving your computer to? if your ever going to see them again etc. Where as if they have a contact point for you they can drop and collect their computers laptops and know it will be safe, you don't exactly want people rumbling up to your house at all hours of the day now do you? also there is one or two places in town that you can rent out as part of an office share for like €50 a week which is fairly reasonable in my opinion and with that you get a desk, chair, you can jump in on the esb, heating and internet with the others again saving you money.

ir555

True 50 euros a week is not a major cost. If you feel this is important to your plan - then go for it!

"you don't exactly want people rumbling up to your house at all hours of the day now do you" - this woudl nto happen as you woudl have agreed a pick up/ drop off time with the client. Its only a suggestion so keep an open mind... Think of the people working 9-5.. Typical Irish problem as with the banks - they open when most of their customers are stuck at work!

Would definately offer the free pick up/ return service to home or work from the outset. This could be one of your main USPs (Unique Selling Point).

Also if someone drops in a machine to be fixed you should think of offering a rapid email with an upfront estimate/ quote outlining the solution to avoid the "shock" that most people experience when they go back to collect a PC following repair. May save some hassle with getting payments too.

Another few things that come to mind:

Simple PC setup service...
Live chat option on website for enquiries..
Paypal payment option.. (stay away from merchant accounts for the start up period).
Hit all the small local businesses for small maintenance contracts - 1-5 pc offices - solicitors, accountants, schools, etc...

Be sure to contact your local county enterprise board. you would be suprised at what support they will give including metoring and grants towards setup costs

Wish you the best of luck with it.
D

Ashlinggnilsia

Yup oh not definitly going to do a quote system - investigate tell em what the problem is and how much it will cost and only go aheady with it if they say because there is no way i would just fix em and expect payment. Good idea about the small businesses. Went into the insurance company today and they will have a quote for tomorrow! fingers crossed. I know the whole collecting the pc would be good but won't do it straight away simply because we would need a company van for that and commercial car insurance another cost. maybe after the three months if it worked we could do that once we have a bit of money going. But i do think its a really good idea and hopefully we will be able to do it sooner rather than later.

Ashlinggnilsia

Oh I have another question now if anybody can help.

Went into the insurance company today for an aul quote which ill get later on in the week cos they are a broker has anybody any idea what insurance ranges from like i really have no idea how much insurance costs, she said i would need employers, public, professional and office insurance anybody had to get all of these before and know what is a good price?

byrne0f56789

€500 - €700 for insurance I think.

Keeps costs to an absolute minimum. Think about cash flow at the start.

Ashlinggnilsia

Got a quote today

Office Insurance - Public Liability, Employers Liability, Contents etc €618 but

they said i would need Professional Indemnity too and that would be in or around €500 extra. Maybe less as they asked for our qualifications and that was only one quote they are waiting to get a few more back and then I will go in and discuss but.... its lookin possible now. fingers crossed. Just need to free up a bita mulah.....somehow