Small Business Experience

jp58 · #1 05-23-2011, 09:42 PM

Does anyone have any experience running or starting up a small business?

I'm thinking of starting one around my campus, and I'm not sure of any of the processes or where to start. I'm a bit overwhelmed.

tastybasslines · #2 05-23-2011, 09:43 PM

What is the business?

jp58 · #3 05-23-2011, 09:51 PM

Around my campus, the only computer repair is done by either Apple in the mall or the Best Buy Geek Squad bit. It seems like a fairly obvious void. I've done a bit of feeling around, and I feel like a profit could be turned at around the 2nd-3rd pc repaired per week, and I've had 10 or so calls since I put my feeler flyers out. So far no money has exchanged hands, as I know I need a proper license and the tax bit.

**jmattbassplaya** · #4 05-23-2011, 09:57 PM

Right, so you've been repairing computers and making money under the table? It's cool. Why not operate like that? I doubt you'll be able to compete as you are until you've established an enterprise that is strong enough to stand against the geek squad and genius lab anyways.

jp58 · #5 05-23-2011, 09:59 PM

Well so far its been pro-bono or something like that. Does getting laid count as getting paid?

bassrique · #6 05-23-2011, 10:00 PM

Structure is important:

Home

Not only is your particular expertise important, but the entity that you will operate w/in is also worth researching. Of course you could be a sole proprietor, but that's not ideal. The proper entity will help shield you from lawsuits and also provide tax advantages.

**jmattbassplaya** · #7 05-23-2011, 10:03 PM

Quote:

Originally Posted by jp58

Well so far its been pro-bono or something like that. Does getting laid count as getting paid?

I think that more than counts lol.

jp58 · #8 05-23-2011, 10:05 PM

Quote:

Originally Posted by bassrique

Structure is important:

Home

Not only is your particular expertise important, but the entity that you will operate w/in is also worth researching. Of course you could be a sole proprietor, but that's not ideal. The proper entity will help shield you from lawsuits and also provide tax advantages.

I'm 100% certain I can do most if not all of the work, and because I can screen before I take on a job, that helps me as well.

I know that there is some legal stuff to take out of the way, with me having to report anything illegal I find on the pc's.

Thanks for the link man!

**Staccato** · #9 05-23-2011, 10:06 PM

Flat fee (labor) repair was popular with the shop around the corner. I suspect that the $50 minimum labor charge was running too many people away. Their location was 1/2 block from a city college.

If you not paying rent at first, that might help. A county business license is probably necessary in your area, and possibly sales tax on parts or certain items that you may run through a small inventory. If sales tax is necessary, you'll find that the state wants those forms filed on time, and if there's no taxable sales, filed with zeros on the form and file them on time!

Biggest advice I could offer on the operations side in the beginning...Try to handle any work within a few days to a week. Would a cash business work in the beginning? (no checks or credit cards).

People may put pressure on you by trying to get immediate turnarounds. If they are testy, let them know your time guesstimate, and tell them you have other people ahead of them! Don't let wiseacres push you around to satisfy their personal agenda of having the work done yesterday. It's not reasonable, or fair. Some customers are trouble from the start...

**jmattbassplaya** · #10 05-23-2011, 10:07 PM

Quote:

Originally Posted by bassrique

Structure is important:

Home

Not only is your particular expertise important, but the entity that you will operate w/in is also worth researching. Of course you could be a sole proprietor, but that's not ideal. The proper entity will help shield you from lawsuits and also provide tax advantages.

Eh, yes and no. There's advantages to each level. I prefer limit liability, myself.

bassrique · #11 05-23-2011, 10:08 PM

Quote:

Originally Posted by jmattbassplaya

Eh, yes and no. There's advantages to each level. I prefer limit liability, myself.

What's the advantage of a sole proprietorship?

fdeck · #12 05-23-2011, 10:08 PM

AFAIK, there's a book like this for every state:

Amazon.com: Starting and Operating a Business in Wisconsin: A Step-By-Step Guide (Smartstart Your Business in) (9781555712990): Michael D. Jenkins: Books

If you've got business in your blood, why not see if your college offers a course in small business management.

fdeck · #13 05-23-2011, 10:10 PM

Quote:

Originally Posted by bassrique

What's the advantage of a sole proprietorship?

AFAIK the only advantage is that it's the simplest possible entity.

Right now every state has its own regs for LLC's. You have to find out how LLC's work in your state.

jp58 · #14 05-23-2011, 10:11 PM

I'm planning on running it strictly cash because checks and cards will only complicate things. As far as labor is concerned, I don't think that would be taxed, although if I install any products, I will have to charge the state sales tax.

The good thing about computers is that work can be done on more than one at a time. A Defrag only requires a button push and monitoring a pc occasionally for an hour or so.

I will be rent free as well. I have a good friend who is willing to let me work on his commercial property so long as I buy him a beer on Fridays and the like. We both benefit from it, he gets extra people in his door, and I get a place to operate for the time being.

**jmattbassplaya** · #15 05-23-2011, 10:15 PM

Quote:

Originally Posted by bassrique

What's the advantage of a sole proprietorship?

You don't have to share profits/deal with other people having joint ownership of your company. There's an ease of entry, too. It's really basic stuff. There are three main levels, but there are some sub-categories (mainly with partnerships).

bluesdogblues · #16 05-23-2011, 10:17 PM

Quote:

Originally Posted by jp58

Well . Does getting laid count as getting paid?

Depend

**jmattbassplaya** · #17 05-23-2011, 10:21 PM

Quote:

Originally Posted by fdeck

AFAIK the only advantage is that it's the simplest possible entity.

Right now every state has its own regs for LLC's. You have to find out how LLC's work in your state.

AFIAK, being a LLC means you have to at least work as a partnership. No sole proprietorship is allowed.

But state laws vary, so I may be wrong.

Simo98 · #18 05-23-2011, 10:26 PM

Quote:

Originally Posted by jp58

Does getting laid count as getting paid?

Only if you are paying you bills the same way.

MJ5150 · #19 05-23-2011, 10:34 PM

Make yourself an invoice template. Clearly state at the bottom how long you warranty your work for and any exceptions that could void the warranty of your work. It's probably not an issue when you are trading computer work for sex, but you need to protect yourself from people who cause problems to their computer and expect you to fix it free if you worked on it previously. For example, the people who can't stay way from malware.

If you are going to be selling parts too, you'll need to collect the tax and pay it back to the state. You'll also want to partner up with a vendor who will treat you right on pricing and customer service to get your parts.

-Mike

jive1 · #20 05-23-2011, 10:40 PM

Quote:

Originally Posted by jmattbassplaya

AFIAK, being a LLC means you have to at least work as a partnership. No sole proprietorship is allowed.

But state laws vary, so I may be wrong.

I own an LLC, and I am the sole proprietor.