Starting Computer Repair Business
When you want to own your own business. Some franchises offer benefits like training, equipment packages, quantity pricing, and support in both running and marketing your business. Many franchises also have national advertising and name recognition that can help establish a new business.
But some types of businesses don’t really lend themselves to franchising. Some of the more famous and successful franchises are in the fast food business. Other popular franchise businesses are Real Estate, Automotive, Graphics and Printing services, Tools, and more. All of these types of businesses benefit from some of the advantages listed above.
But the Computer Repair Business area doesn’t fit the mold for this type of franchise business. There are a few who offer it but the benefits are not as effective and the stat up cost is prohibitive. There are very few retail type Computer Repair Businesses for one good reason. The cost of retail locations is hard to compensate for and selling parts or equipment has been taken over by the large electronics outfits like Best Buy. Computers have become a commodity item and it’s very difficult to compete in price alone.
Add in the warranty and support hassles with selling new computers and it gets ugly fast on the profit margins. Doing service type work can help bring up the profit margins but retail location costs would require huge amounts of walk in traffic to make it work.
Advertising and national name recognition is not a big enough benefit in the computer repair business. Most any type of franchise start up costs are in the 6-figure range (over $100,000) and also may require additional funds for the first 6-12 months of operation capital. If you are running a high volume fast food business or other type of retail business that benefits from national advertising and support that may be possible but no such company exists in the computer repair business.
Overhead costs are the 2nd biggest reason most new businesses fail (number one is lack of sales). The biggest attraction to a franchise is to get up and running and generate sales quickly. Breaking even is the first goal and without a solid advertising and marketing plan it doesn’t matter how much operational support or training you receive.
Since the Computer Repair Franchise is a service oriented business venture, the ability to seek out and find repeat business is key to success. So you need to be able to hold the accounts you find and that is the most challenging area for any service businesses. And that type of training or support is often missing from many franchise organizations.
For businesses that sell a physical product, some key elements are inventory and price. Whereas in a service business key elements are buyer satisfaction, knowledge, and prompt professional service. Almost anyone can learn the skills for the technical aspects of computer repair but it’s also important to be able to communicate and establish a rapport with the clients.
When buying a franchise you are paying for the experience and knowledge on a successful business model. If the cost is reasonable to the possible return and there are plenty of successful franchisers, then it could be a great deal. But make sure you really check out the company and it’s claims before you sign up.
