So, we decided to start an IT business for no particular reason. Any tips?

[HWT]

So here's the scene:

We can do computer Stuff. You know the deal - building PCs, removing virusses, upgrading, installing software, telling little old ladies how to buy doilies on eBay, building basic brochure style websites. This is not rocket science and if you live in Sydney every man and his dog can do this kind of stuff, the competition is intense and the margins are slim.

We don't live in Sydney. We live semi-rural, in the dark ages, where computers and the Internet are a deep, scarey, mystical voodoo that only the rare and initiated understand (ok, I'm exaggerating). There's a few people with flyers up that can remove virusses etc, and apparently someone sells computers out of a barn or something but with crappy service so people are willing to travel 60-200km to go to a larger store. There used to be a local shopfront but it closed down about 3 months ago.

We thought it might be a nice idea to start up a mobile service based from our home, with a callout fee + fairly low service charges for the area within about a 50-70km radius of us. We are at the have new business name + cards printed + discussed reselling but don't have an agreement yet stage.

Any tips before we start throwing ourselves into this?

[Brendan]

Hey HWT,

Doesn't sound like too bad an idea.. first thing you should try and find out is why the other shop front closed? Maybe you are missing something.. maybe no one has a computer, hence doesn't need any support? Or maybe the internet is so shotty out there that people have a computer but hardly use it?

If you find that isn't the case, then I suggest a flyer drop to advertise your services - or if it is a friendly country town, maybe even door knocking as you seem like a friendly sort of character.. and word of mouth would be integral in that type of area, posters up in shop fronts, and maybe even set up a referral scheme.

I think the mobile service is a great idea since it sounds like you live in a reasonably un-populated area and people would be more willing to have someone come to them, just keep an eye on the cost of fuel and make sure that accounted for in your service charge.

I think its a good idea and probably something you could do part time without too much capital invested, test the water and see what comes of it.

What is your background in IT, have you just taught yourself?

[HWT]

Apparently the guy running it got sick or something along those lines, the shop was never particularly good though ... lousy decor, usually had a 'back in 10' sign out the front. The shop that has been taking up a lot of the business is a long way away, we went there to buy something and had a chat to the owner about reselling through him instead of from a wholesaler, he said something about a lot of the wholesalers having a high minimum buy that could cause problems for a small seller, and he's right, and of course he gets a bit of profit too

Posters in shop windows was going to be our major advertising tack, its free and extremely high visibility. Also the local paper, which a surprising number of people read (we had our photo in it earlier this year for something unrelated and we got stopped in the street a LOT by people who saw us). We've also decided that country tv advertising must be pretty cheap if people can afford longwinded advertisements for lost rabbits. The next yellow pages comes out in about 10 months so no use bothering with that just now.

I have an IT degree but most of my experience is in kernel programming and creating 3d graphics (polar opposites), the other half is the self-taught techie. I'm the outgoing one so answering the phone and marketing is going to fall to me.

Hardly going to make us rich but its virtually $0 startup cost too, barring petrol. But its something to tide us over for a bit, and this forum could do with a few more posts!

[Slade]

Sounds like a great idea, like you said with zero startup costs, you really have nothing to lose.

I would focus also on word of mouth advertising as I am sure you would know that in those types of communities word of mouth can make or break you, I am assumings it is an 'everybody knows everybody' type area?

Yep the forum can be a bit quiet some times, thats because its fairly new, only about 6 months old, so feel free to post up a storm, there are some very smart people here!

[J_D]

Thanks slade i wouldn't go so far as to say "VERY" smart.. but yeah, i'm pretty smart. hehehe

Sounds good... if there isn't much competition and you can save people having to travel up to 300km's away... then there is certainly an opportunity.

I grew up in a semi-rural town and have a friend who runs an IT solutions group... they do fairly well as they have been able to establish them selves as the towns computer guys.

JD

[HWT]

We found the ultimate place to advertise - the local community calendar. It has EVERYONE on it. Won't be there until next year of course.

I'm still half of the mind that a shopfront would be better than trying to work from our house 40km away from all the people with money, but there isn't anything to rent in that town. We also have motivational issues with Plan A and after all this renovating we're doing (which is putting off the Grand Launch of ... well, everything) I think we might work better if we have to actually get up and go somewhere to do work, without all the distractions at home. But with the rental market being so tight it is actually negative I think having a shopfront or studio for the business may be a real pipe dream.

Has anyone tried to talk another business into sub-letting some of their floorspace so you can use it? I'm sure *someone* would have an attic, a closet, a storeroom or even a large box we could rent off them. All it needs is a phone jack and a power point and enough room for two desks and some junk. We have an IP and land in the town but quite far from the main street down a quiet suburban back road so it is totally unsuitable for a business.

[HWT]

Found out who does the calendar - seems all the spots are booked unless someone withdraws, which sounds like the same way you rent a shop.

But the yellow pages just opened for ads!

We're seeing the yellow pages sales guy later this week. He is just passing through on his way from Pt Lincoln to Adelaide, which if anyone knows the geography of SA is not a small distance. Its going to be funny if he can find us, he's visiting other clients that are only 150km as well. I was giving him directions that went something like "turn right at Port Augusta, go through the Flinders Ranges and keep going for 180km, then turn right and go 200km and you get to Adelaide!"

[jacylnong]

So here's the scene:
telling little old ladies how to buy doilies on eBay

To be really honest, i would want to learn how to use EBay too :P haha.. so i think that would be a good idea!

[jacylnong]

So here's the scene:

We thought it might be a nice idea to start up a mobile service based from our home, with a callout fee + fairly low service charges for the area within about a 50-70km radius of us. We are at the have new business name + cards printed + discussed reselling but don't have an agreement yet stage.

Any tips before we start throwing ourselves into this?

What are you planning to resell? I researched about reselling in the entire Australia and what I realize on a standard perception that when you go for a reseller, just make sure you make it attractive enough for them to actually be your resellers.

Like I said, they're resellers, they might sell like TONS of your competitor products and services and so they need to push those too.. so u give them a very 'attractive' prize for them to make them motivated to sell your product first

Anyway, i bet my 'secret' product might interest u.. haha.. or so i think so...

[HWT]

Reselling computers and computer parts, nothing fancy. We won't move enough stock to get a base account ourselves so reselling from an established shop seemed like a good way around the problem.

We have our yellow pages ad all booked now, surprisingly cheap too.