Please help. I have growth problems

houstonpcrepair

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I have a small 300 sqft office space I use for my business. When I have appointments I pay my grandmother sit in for me. Business is up and down, I have only been open for 8 months an have about 150-200 residential customers and i want more business customers. I am starting to think in order to grow I need to move out of my office space into retail space, but my rent will increase by $1000 + utilities+internet+phone. Should I stay another year in my small office, or take a chance and rent retail in a busy shopping center. I don't know what to do, and I am very afraid of trying to force growth 2 fast and not being able to afford the additional cost of retail space.
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If more business clients is what you are looking for then moving to retail space would be a bad move in my opinion. Retail space brings the expectation of someone being there during business hours. If you have a business client that requires you to come onsite then you will need to close the door or have someone sit in for you. Having someone sit in that does not know about computers and can't answer the most basic questions will turn a new customer away in a heartbeat. If I could go back in time 15 years I would not have opened my retail business and I would strictly provide service to businesses. You make more money, you can set your own hours, and the clients are much better to deal with. However, retail locations do help with exposure. I have many business clients today that found me through my retail location. Retail space will raise your overhead. Unless you plan on hiring competent employees to run the retail and service shop, stick with your office space and concentrate on business services.
 
We continue to work out of our 225sqft (beat that!) office space to maintain low overheads. We are always onsite for our business customers so it doesn't make sense for us to pay more money for retail space. We maintain regular office hours so we can also accept drop off work and someone is always at the office even while running onsite appointments.

Almost all of our customers have heard about us either through Google, Facebook, or word of mouth so paying more for retail wouldn't benefit us.
 
We were in a similar situation a few years ago....we had some inexpensive office space, about 300 sq ft, utilities included, ~400/mo for rent....worked OK for a few years as we started out. Dirt cheap rent. It was cramped, on the 3rd floor of an office building in a downtown area that was difficult to get in and out of (parking, etc).

So we started looking for a new location. Since we focus on business clients....we don't need a "retail store front" presence...since those are expensive...waste of money. I wanted a location with parking up to the building, preferably ground floor, and within 3 stoplights of the main highways (since we drive in and out all the time going to/from clients). I found a location that met 2 of those 3 requirements.....and it was still very affordable. An office building located in a storage solutions place...the whole second floor of this building is a bunch of office suites for rent. So we took 3 of them. Heat and electricity included in the rent...~775 sq ft...and less than twice the price of our prior place.....kept the price of still about a buck a foot per month.
 
I have a small 300 sqft office space I use for my business. When I have appointments I pay my grandmother sit in for me. Business is up and down, I have only been open for 8 months an have about 150-200 residential customers and i want more business customers. I am starting to think in order to grow I need to move out of my office space into retail space, but my rent will increase by $1000 + utilities+internet+phone. Should I stay another year in my small office, or take a chance and rent retail in a busy shopping center. I don't know what to do, and I am very afraid of trying to force growth 2 fast and not being able to afford the additional cost of retail space.
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When I first started out all I had to do to increase sales was double my yellow page ads. In the last six years yellow referrals are down about 65%.

when I got my retail shop, it did very little for sales as few people just drop in. It helped a bit with awareness but I think doing the auto wrap advertising on my van did much much more.

So I'd recommend you get minivan or boxy type Soul with a full advertising wrap with your image. I have people stop me in the parking lot of the grocery store or walmart to ask me to make an appointment.

I gather you can also SEO your website and possibly test adwords on google for some additional referrals.

The only other thing that I know really works is to take one day a week and go make the rounds personally and visit office parks, industrial areas and wholesale parks to introduce yourself /your business.
 
When I first started out all I had to do to increase sales was double my yellow page ads. In the last six years yellow referrals are down about 65%.

when I got my retail shop, it did very little for sales as few people just drop in. It helped a bit with awareness but I think doing the auto wrap advertising on my van did much much more.

So I'd recommend you get minivan or boxy type Soul with a full advertising wrap with your image. I have people stop me in the parking lot of the grocery store or walmart to ask me to make an appointment.

I gather you can also SEO your website and possibly test adwords on google for some additional referrals.

The only other thing that I know really works is to take one day a week and go make the rounds personally and visit office parks, industrial areas and wholesale parks to introduce yourself /your business.

Thanks for the reply. I don't have a yellow page ad, because I felt it was old any not many people use anymore. However, after chatting with someone on the forum, I was told that most business owners 40+ are old school and still use the yellow pages. So I will call and see how much a 1/2 page ad cost(hopefully not too much since its kind of outdated advertising). I tried google adwords, but I get tons of clicks and no calls. Thinking it might be competitors clicking on my ads. I am on the 1st page for my major keywords which helps alot. I have a 2003 cargo van, I thought about investing in a wrap, or do you feel lettering will be ok. I have went door to door to businesses many times with no luck, i kind of determined that businesses want to find you, and ignore you when you stop by unannounced. Im thinking of just leasing another small office in south houston since i have 1 in north houston and use the extra money on more marketing. I really appreciate everyone that comments. You have no idea how much help and motivation this forum is to me. To finally see other computer business owners have went through what I'm going through now and share there stories is a help to us starters.
 
The only other thing that I know really works is to take one day a week and go make the rounds personally and visit office parks, industrial areas and wholesale parks to introduce yourself /your business.

You might want to take another look at the advice above. I can't believe you couldn't drum up business by pounding the pavement a little. If you want people to come to you, set up a small booth at a farmer's market or some town based celebration and hand out brochures and business cards. Just a thought.

As for expansion, I would wait and see how you can use your present site more efficiently. I have a home business in a separate out-building/granny unit about 150 sq. ft. I go to peoples homes and work places. Very low overhead and plenty of workspace.
 
Thanks for the reply.

Your welcome.

I don't have a yellow page ad, because I felt it was old any not many people use anymore. However, after chatting with someone on the forum, I was told that most business owners 40+ are old school and still use the yellow pages. So I will call and see how much a 1/2 page ad cost(hopefully not too much since its kind of outdated advertising).

I started out with no more than I could afford to pay and not go broke if it did not work. I think my first ad was $69, then doubled to $139, and then $290.

At those small amounts you don't get much display space so focus on In column advertising yellow pages. Or ask for a package. Tell them you want to have a business card size in computer repair and Computer Networking and possibly a small in line in each area as well and a inline bold red under recycling as well.

You should get something like that for under $300. Don't take their first offer, their rate charts are like asking prices of a new car.

I tried google adwords, but I get tons of clicks and no calls.

I have heard a few hear say that the google adwords do not work like they once did but that SEO really does still work. So optimize your web site if you can.


I have a 2003 cargo van, I thought about investing in a wrap, or do you feel lettering will be ok.

The age of the van isn't important but it is important that hit has no big dings, cracks, rust. It should look neat and clean to represent you.

I paid $1369 for a full wrap on a minivan. You can get by with a half wrap or even 2/3's on a cargo van. Think about the image..... If you can't come up with something compelling then just go with 9" letters of your business name and phone number and dot a few 5" sized logos of windows, Intel, AMD, Cisco and such to make it immediately obvious that you do technology.

The letters only should do a great job for about $300. Get the wrap later.

I have went door to door to businesses many times with no luck, i kind of determined that businesses want to find you, and ignore you when you stop by unannounced.

Yes its normal for you to be treated like an interruption and even be treated rudely. This is one of the most difficult things in the world to do. Face repeated rejection. However this is also the single most effective marketing tool to someone with limited budget and some time.

You should buy a $12 book on cold calling to learn the physiology of it. I would ignore the cold calling part of it but learn the door to door part, or drop in visits.

Basically no one wants to know you until you got something they want. You don't have what they want until their stuff breaks or they need a better designed web page, or faster network.

That is why it is IMPERATIVE that you go well dressed (business casual, Khaki pants and polo shirt is ok, better with your company name logoed on the shirt), be very polite no matter how rude they are, be very brief even if only to say "I work on networks and computers, please keep this until you need me, I have a 1 hr response time in emergencies.". Leave a business card, possibly some literature. Leave only a bus card if you can't do a fantastic looking brochure. A tacky brochure hurts you.

I find that I can buy a dozen donuts for $3.69. I will buy one or two dozen donuts and go door knocking until I run out of donuts offering a donuts to each office receptionist or manager. Do this once a week and I venture to say that within 6 weeks, many of the customers who were really rude the first visit are now friendly and some have called for advice. Go back to the same places over and over again. The real tough customers will begin to think of you as their computer guy. Your reliability in coming back every few weeks or every month puts you into their mind as "the computer guy."

When stuff happens they will remember you and look for your card and call you.

Back to yellow pages, my method is to advertise to 'Susy home body' as she is the one making the call for her family for my service most of the time. She also has a job and might call me for her boss or work as well. She also might be an entrepreneur and call me for her own business. So just because I focus 100% of marketing on home users doesn't mean I don't still get about 25% of revenues from business clients, jobs and sales.

News papers are very expensive but alternative news papers and freely distributed "west side story" types are cheaper to advertise in. I had luck with a "Penny-saver" and a Penny power tabloid type paper.
 
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Tony, have you ever gotten funny looks when bringing those doughnuts? How would you offer them exactly? I just feel like I would look like a creep trying to poison them. I'm serious about the how to approach with the doughnuts question, thanks!
 
My original space in Minneapolis (still there btw) is 400 sqft with 2 rooms. I pay $400 includes everything but phone. So it's a good deal. I have not moved for a few reasons. I have not outgrown it (but am now and am looking for a new retail space with large backroom area). When I moved there in 2009, it was me and a few interns who came in and out. The space was fine. Now I have moved out, and my FT lead tech is there with 2 pt guys and an intern. The techs float in and out, so it's not really over crowded yet. We cater to business and residential clients but do not do server work. That is the big difference I need to know when people say they want to cater to business clients....Managed IT clients don't really need to come to you often, where MY business clients are dropping off desktops/laptops every day. We cater to smaller businesses, usually none with servers.

So what type of business clients are you talking about? Managed IT or smaller ones that just have an office of computers and maybe a server? If you're doing the latter...I say for now, grow and stay. Ask your landlord if you can sign the lease with a 2 month notice out clause, since you already fulfilled a year of the contract. Mine has done that, so when I need to grow...I can get out with no problems.

Retail space can be a nightmare as much as a dream come true. I've had ups and downs since last summer. Been a real learning experience!
 
Tony, have you ever gotten funny looks when bringing those doughnuts? How would you offer them exactly? I just feel like I would look like a creep trying to poison them. I'm serious about the how to approach with the doughnuts question, thanks!

Great question, I would be weary of taking donuts from a stranger lol. How do you pull that off.
 
My original space in Minneapolis (still there btw) is 400 sqft with 2 rooms. I pay $400 includes everything but phone. So it's a good deal. I have not moved for a few reasons. I have not outgrown it (but am now and am looking for a new retail space with large backroom area). When I moved there in 2009, it was me and a few interns who came in and out. The space was fine. Now I have moved out, and my FT lead tech is there with 2 pt guys and an intern. The techs float in and out, so it's not really over crowded yet. We cater to business and residential clients but do not do server work. That is the big difference I need to know when people say they want to cater to business clients....Managed IT clients don't really need to come to you often, where MY business clients are dropping off desktops/laptops every day. We cater to smaller businesses, usually none with servers.

So what type of business clients are you talking about? Managed IT or smaller ones that just have an office of computers and maybe a server? If you're doing the latter...I say for now, grow and stay. Ask your landlord if you can sign the lease with a 2 month notice out clause, since you already fulfilled a year of the contract. Mine has done that, so when I need to grow...I can get out with no problems.

Retail space can be a nightmare as much as a dream come true. I've had ups and downs since last summer. Been a real learning experience!

Thanks CTG, I target both business with 5-10 users, and single computer offices. I accept walkin traffic, and just thought I would get more traffic with retail space. After reading so many threads, I think I might stay and grow this location.
 
Donuts-This may not work in NYC or some areas but around here when you show up with a tiny gift it is generally accepted as just that. You can also go to Russel stover store and buy their $1 chocolates boxes for the same effect, they are sealed. Or even a bag of mini Hershey candy bars wrapped.
 
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I work by myself - out of my home (for almost 8 years now). Undeniably word of mouth is the cheapest form of advertising. I find that getting referrals comes very easily when you treat your customer as you would want to be treated yourself ... while charging less than the competition. The cost to acquire and keep a customer is lower that way. I have little (if any) advertising budget.

People are all too happy to refer me to their friends because I am likeable, easy going, trustworthy, fast, and my overall charges are less than my competitors charge.

Think about how happy you'd be clearing (profiting) $400 to $500 per day all by yourself. Low stress because you have no retail space, no employees, no theft, etc. Need a vacation? My voice-mail says: "Thank you for calling XYZ Computers. We are closed January 8th through January 15th. Feel free to leave us a message and we'll call you as soon as possible. Have a great day!"

Love this life!
 
I work by myself - out of my home (for almost 8 years now). Undeniably word of mouth is the cheapest form of advertising. I find that getting referrals comes very easily when you treat your customer as you would want to be treated yourself ... while charging less than the competition. The cost to acquire and keep a customer is lower that way. I have little (if any) advertising budget.

People are all too happy to refer me to their friends because I am likeable, easy going, trustworthy, fast, and my overall charges are less than my competitors charge.

Think about how happy you'd be clearing (profiting) $400 to $500 per day all by yourself. Low stress because you have no retail space, no employees, no theft, etc. Need a vacation? My voice-mail says: "Thank you for calling XYZ Computers. We are closed January 8th through January 15th. Feel free to leave us a message and we'll call you as soon as possible. Have a great day!"

Love this life!
My situation is similar in that I don't have much in the way of advertising due to the bulk of clients being word of mouth. One thing I've found to get around the appearance of being small is using Vonage for my business phone. It's cheap, reliable, and THE best thing about it is the simultaneous ring feature. When a client calls my office line, it rings my cell phone as well. I rarely miss answering a call, but if I'm in an area with poor cell coverage, the vonage answering system answers the call (with my recording) and emails me a text version of the message left. If I do answer my cell and I'm out of the office, they don't know unless there's background noise, but either way I took the call and that's important.

I've been lucky to get in to a pretty nice area here in San Diego and the people in these areas do not go to the phone book or internet search to find a computer vendor. They talk to their friends and get referrals as their privacy and trust are more important than just about anything. I don't do too much residential, but these are not typical residential clients.

All that being said, there has been some very sound advice given in this thread.
 
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