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ForumsA couple of weeks ago we had a young technician telling the Technibble forums about his recently founded business. He’s 19, the business is about 6 months old, he lives in a small town and he’s having trouble landing business clients. In his area, the largest employers are the only hospital in the county, the Board of Education and telemarketing companies. He says the problem is that all of these employers have their own in-house computer technicians and are unlikely to need his outside help. While I applaud him for aiming high, hes aiming at the wrong people as a new business.
As a young business, the sweet spot to go for are small businesses with a handful of computers like small retail outlets or professional services such as real estate agents, insurance agents and accountants.
Having small businesses as clients are easy to manage for someone still learning the ropes and most business owners tend to talk to other business owners (even if its just the shop next door) and are more likely to recommend you to someone else.
Something I personally have discovered while working with small businesses is they are usually quick to pay you. The big boys can take months as your invoice makes its way through their various departments.
While working for the small businesses, you can find the right amount to charge, set up systems, streamline your work and learn from your mistakes along the way. Who knows, perhaps one the smaller businesses will recommend you to one of the big ones? I have personally had a residential client recommend me to the company she is a receptionist for. It has 3 locations with about 300 computers in each which keeps me busy.
Once you are confident with your abilities, know exactly how much work you can handle a day and have built up a name for yourself, then you can go for the big businesses.
True, you can really get a lot of work by going for small companies. They are underserved, and are usually looking for personalized services, where they get to know you.
It seems unrealistic to believe you can go for big business accounts without experience and references. Take you time to learn, at 19 he probably couldn’t handle big accounts anyways.
Personally I love working with small businesses. They are often easy to deal with and have reasonable expectations. I’m not so sure that real estate agents would be the best businesses to target right now though, as a lot of them are really hurting right now. Maybe he should target bankruptcy attorneys instead.
Even the company I work with, having been in the business 13 or so years, doesn’t have a large number of big ticket businesses…maybe a high-end golf course here, and engineering products company there…nothing like a hospital, though, that’s for sure.
Hey!!! Stay away from my attorneys. Just kidding!
In my experience, attorneys are great clients because they have the $ to pay for your services. They need something, they need it immediately and they’re willing to pay for it. That makes them great clients!
They are also relatively small offices so it is easy to serve them. I think my largest attorney has 13 PCs and 1 server.
As I read these posts I see how my own business has grown in a small town of about 1800 people.
I started about 14 months ago (after 18 years in the Los Angeles area) and joined the local Chamber of Commerce. The presenter at the first chamber meeting I attended had problems with her laptop and projector. After resolving the problem in about 20 seconds she applauded me and told the room full of people that “This is the new computer guy in town and you’ve just seen him in action.”
My first client came from that meeting; a real estate firm with a server and 20 computers in two locations. Then followed the areas largest construction company with a file server and 10 computers. I charge a monthly contract fee and, with a 12-month service contract, give them a $10/hr discount from my normal hourly rate.
I now have 8 businesses under contract, several others without contract and numerous residential clients, many who work for those businesses. I’m no marketing genius I promise. I do have a little yellow page ad and a website, but as this is a retirement area, most of my business comes from personal referral and word-of-mouth. (I do pray a lot too!)
My advice for those in small towns: start small, guard your reputation, under-promise and over-deliver. In time, you’ll have all the work you can handle.
Great Advice That is exactly what a new business needs to be able to do, start small and then grow through the residential and small business market. The pay factor is huge. You literally could go out of business before the big company paid for your services, and they would have also tied up precious time that could have been better used getting new clients.
I started out 18 months ago. My initial plan was to go after the small businesses, but I’ve had very little success.
For me, the residential clients are where it’s all at.
I don’t think the current economic climate helps much either.
Yeah, I agree. No one can ever find a job in a small company where you will be highly compensated in return. Before you get the kind of salary you’re aiming, you still need to work for huge and well-renowned companies where you can’t manage the job by yourself. So if you really want to establish your own business, start small but aim high. Success is on its way when you only believe even with the smallest things you can do.
thanks guys for the tips, this inspires me to start anew.
Starting small should be defiantly a priority on everyone’s’ list. It will give you a confidence boost by the time you progress to service larger size businesses and enough experience to help in all aspects of your clients needs.
BNI’s!!!! to get in with small business, you must network with small businesses!
I also recommend in a small town meet as many tradesmen/blue collar businesses as possible. These guys really know how to spread the good word.
There is a gold mine for the one man team in small towns!! I am a wireless internet provider for 4 towns total population around maybe 5000. Yes ATT and embarq have come to town but someone local to call has keep me in demand. Smaller town people on the whole are even less tech savoy then those in the city. It is just all about REPUTATION. There is not even a geek squad to compete with! LOL If you can make the little old ladies luv ya… hold there hand when they are trying to download pictures of there grandkids or whatever. Trust me you will have more work then you can handle.
It is simple just do some free work for the gossipers in the small towns let them see your skills… Throw in a little extra ram or something when they aren’t looking just make it run better lol
I clear over 80,000 taking care of my flock of about a 2000. True I have a couple business but nothing that employs over 15 people! There is money in small town!
Perry Schjolin, excellent success story!
In small towns, where everyone knows everyone, you may not deceive your clients or you’ll be out of the business in mere days. I live in such a town and despite the fact that now I do not provide services I used to a couple of years ago, people are still coming to me now and then and ask for help.
Aiming for private / residential customers early on, and giving absolute pearler service is key to establishing a solid base of satisfied customers that will send solid referrals your way. Another trick would be to offer emergency service, but that one could end up biting you, and killing your weekend and after hours time.