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Starting a business: do's and don'ts

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  • Starting a business: do's and don'ts

    Okay this thread is to continue where we left off on starting a computer repair business on another thread that was closed by the Administrator.

    One thing we don't want to dive into is the promotion of one's business as was done in the other thread or else you will be accused of what Tiny Tadani was trying to do in promoting his show.

    Note to Admin: If one wants to promote his/her business maybe they can do it in the form of banner ads on this website and a badge that says this business is also a poster on this website.

    Okay so starting a business like a computer repair business can be lucrative however it can also be a pain as computers fail and typically late at night when you want some down time and your favorite client calls on your cell phone asking for help (of course for a fee) but is $20 per hour/visit gonna cut the tech work at 2am?

    One thing you're gonna find is: Why computer techies charge a high amount for work you can do for free (once you gain the knowledge) or from somebody for only $20.

    I used to have a marketing business where I charged what I thought I was worth. I found out that I under rated myself and got doors slammed in my face for being small potatoes in this market. Once I changed my business name (tarnished it already) and charged a competitive price I actually got more respect and open doors. It's that saying: You get what you pay for and when you come cheap, well they expect cheap service, hence limited service.

    Charge a lot and expect a lot, so charge competitively and get clients willing to pay for it but expect a lot as well. Charge little and they think they won't get much bang for the buck and will gloss you over like an inside cover of a magazine.

    One big thing I see new businesses fail to account for is personal income tax. Do your accounting by ledger balances not bank account balances. Use budgets not an itemized report from your banker. Pull out forcasted taxes before you complete your budget bottom line and don't spend it on capital or else you will find yourself in tax hell come April 15th.

    Go "Cash" basis instead of "Accrual" when filing your GET taxes. You may lose on accounts receivables after selling the business however those Net 30's out there at the time of sale will make for an incentive for a buyer.

    I had a farm business that I sold off with $15,000 in Accounts receivables. The buyer bought the business for less than the receivables knowing she'd make her investment back within the next 30-days and then some. It was a total no-brainer and if you had the up front capital to purchase the business, you'd come out ahead in one month.
    Life is what you make of it...so please read the instructions carefully.

  • #2
    Re: Starting a business: do's and don'ts

    Charge a lot and expect a lot, so charge competitively and get clients willing to pay for it but expect a lot as well. Charge little and they think they won't get much bang for the buck and will gloss you over like an inside cover of a magazine.
    But in my case, I'm just getting my foot in the door. Heck, I don't think it'll last longer because I'll need to find a real job soon.

    The reason why I charge $20, is because I'm usually working with relatives, and that's what they give me (or slip into my bag or pocket), so I guess it's a good way to start for non-relatives. If I need to stay there for 3+ hours reformatting, rebuilding/cleaning a computer, then I'll charge a few bucks more, but that's usually on a case-by-case basis.

    (and probably its not a good thing to mention that I'd want to open a ringtone/wallpaper side-job, where kids will pay about $0.50 per ringtone or wallpaper for the phone)
    How'd I get so white and nerdy?

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