Business Number Two :: The Computer Repair Shop

This is another easy business to put up and manage, but only if you have enough capital, the right location, sufficient manpower, and steady customers.

I plan to put this business beside our computer supplier’s store because of the long payment term agreement I have with them. I do not need to stock up on parts therefore I will not need a huge revolving fund. The only problem is that his shop is inside a mall.

A mall based location is capital intensive because of the following:

1) High down payment for lease

2) High monthly rentals and percentage sales

3) Higher utility bills because of the commercial area

4) Taxes and permits

5) High construction costs because you need to put up a really nice place

The only advantages I can see are heavy foot traffic, being close to my computer supplier, and maybe the good ambiance of the mall. Other than that, all I can see is money going down the drain.

Still, this is doable if you will have the following:

1) Companies availing of maintenance contracts for their computers

2) Steady mall clients

3) Extra income from snacks you will place in the store

4) Online transactions

With this business you will need the following:

1) Small warehouse

2) Delivery van for deliveries and pick-ups

3) Driver

4) Four to eight technicians

5) Receptionist / agent

6) Freelance accountant to manage your books

7) A computer and a program for sales and inventories

8) Telephone line and internet connection

9) Website for inquiries and tech support

This business is already a far cry compared to the LAN shop business because of so many aspects. It also has a lot of potential to earn. Plus, it is also an essential part of the whole business model, therefore there is no other choice but to put this up or else the chain will break.

So if a mall based location is not a practical option, then I just have to look for a good location within the vicinity of the mall.

#SmallBusinessIdeas #BusinessManagement #LocationStrategy #CapitalIntensive #MallBasedBusiness #Entrepreneurship