Store front or Home office?

[Eanix]

Hey guys,

This forum always gives me the advice I need, and I’m a critical stage with my business right now and I could use some of that great Technibble advice…

I started my company 2 years ago to do virus removals, etc for residential customers. About 5% of my business is actual residential customers at the moment. Before I knew it, I was reaching out to businesses/networked myself and most of my business is other businesses or contracts I’ve been awarded.

I was a Geeksquad Supervisor/BBY Services Manager many moons ago, which is why I wanted to start my own business anyway. I’m at the point where I think adding residential income would greatly help my business. However, I’m scared out of my fkn mind about renting out a store and failing.

I own my own home, and my wife has graciously agreed to let me do whatever I want with the garage (build an office/store, etc). I just think a lot of people would be turned off about walking through my fenced driveway to drop off their computer, where I’m going to have someone fix in my garage.

What advice can you give me? I’m in Long Island, NY, I have a really small store I could rent for about $850 a month. Should I do the store? How did you overcome your fears?

Any advice would greatly help. Thanks in advance as always guys.

-Amro

 

[MotzTech]

I don't have a store front exactly, I have an office. The problem with a store front is you need to keep it staffed during business hours.

I suppose you may be able to build one on your house, but that may violate you local zoning laws. You also want to look into what signs you are allowed to put up.

Customers don't seem to have an issue dropping their systems off at my office.

 

[NYJimbo]

you might want to start reading this thread first:

Do you have a computer shop?

 

[YeOldeStonecat]

If you focus on SMB support (which, as you probably realize by now, gets you a lot more money)....you have no need for a retail store front. Retail store front offices cost a lot more per sq ft.

We're 99.9% SMB support, we have a staff of 5, and we rent 3x suites in a professional center which is in a building in a self storage complex. Great location for us, at the cross of 2x main highways through here. So we can quickly get in 'n out, and on the highways, to our clients.

Makes for easy deliveries also..since someone is always here.


IMO, from what I've seen, having good retail store frontage does not equal success for SMB computer guys. Have seen our competition, some of which had some pretty nice looking shops in good retail spots...fail, and close their doors.

WHile I do enjoy working from home a lot, I do enjoy getting out of the house too. Wouldn't want to work from home all the time.

 

[Markverhyden]

Personally I decided to not open a store front that is geared towards consumers when I started in 2007. Plenty of competition as well as many places closing. Just the way the industry is going.

At some point you may find that having a separate office is more professional than the home office thing. I'm not there yet but would like to be.

 

[dgiles79]

I work out of my home, but I also have a virtual office in a business center, which works out well for me. My virtual office is in a business center that has fully furnished office (some are leased full time, or some (like mine) are as needed). There is a front desk there that answers the phone for me, schedules appointments, and accepts drop offs and packages etc. I can also use the offices a certain number of hours per month.

It works out great for me, because I do a lot of my work on-site, but use the office when needed, and then pick up any drop offs and take them back to my home workshop, and I don't have to worry about answering the phone or having much overhead etc

 

[mr m]

Lots of opinions here. I work out of the home and do res/small biz and have never been happier.

I go onsite to fix and then bring it back to my bench if needed. A few people come here but that is rare.

You'll get a lot more traffic with a storefront but then there is the overhead. $850 is just the rent. Utilities, staff blah blah and blah.

Start it out of your house and see how it goes. If you see the revenue increasing then you can decide your next move.

 

[OCWI]

I own a store. Im saying this with caution as I do not know your situation.

My gut tells me to do it. If you don't, you will always wonder what if. Have two plans. Plan A is how the F*$# your going to run it (costs X amount, make Y amount). Plan B is WTF happens if it doesn't work. (Loose X, when to call it quits, ect ect).

There is NO WAY that I have found to overcome the fear. Ive been running this store for four years and have a staff of four. Every day, every month, right now, in 5 min, when I wake up, when I go to sleep im worrying about numbers. It sucks. A lot. (were making some money now, but spending it as fast as its coming in to keep growing).

But could be worse. Obviously you know the advantages as your ready to try this.

$850 is very reasonable for rent. Its do - able.

Wont be easy, and you will spend your entire time in fear - if you don't have stomach problems now you will in a year.

GL either way.

 

[Magic Miguel]

A guy I sub contract for who is really a good buddy of mine through previous work allows me to sub lease some space from him on the cheap. It's in an office but I do have customers who bring their things in from time to time. My colleague caters to strictly business clients.

 

[BrentfromZulu]

Speaking on behalf of myself, I would imagine that you don't have to have a shop to do residential. Some Virus Removals you are able to do remotely, which in my experience is a big chunk of residential work.

 

[redmon]

I believe the only advantage to having retail space is if you are focusing on residential break/fix. Even then it may not always be a good fit. In your case simple office space would probably be a better fit.

 

[Spartan PC Services]

I haven't had any issues with being strictly mobile with pickup and dropoff or on-site servicing in 2 years. I would gauge it as such:

When you make enough to cover your proposed overhead, brainstorm and see what you could purchase with that money instead to improve your quality of service for your customers, or something to improve workflow and efficiency.

You may be suprised.

 

[carrcomp]

I had an office to cater to business clients.

I used the office 3 times in 6 months, and it turned into a storage room and a place to get away from the house.

My business customers called me and asked if I could come out. When I asked if they wanted to come to the office, it wasn't worth the time away from their site and wanted the next available appointment to come out and see them.

 

[YeOldeStonecat]

Added note....when we started out, we rented a small office in an old building, we basically sub letted from a data center. 300 bucks a month. Utilities included, plus our internet was wicked fast, peeled out of the OC-3 from the data center. Did that for 6 years in that place.

Since you focus on SMB clients, you don't need store front. So you can start small...and move up as you afford it.

 

[bertie40]

I'm happy in my converted garage.
Prior to that, I worked from my back bedroom.

In the 10 years I've been trading, I've had, I guess, 5 customers come to my house, And they just drop off and pickup their machine from the front door.
I've only ever had one actually come inside.

Basically, just about all my work is performed onsite, or I bring the machine back to the office myself.

I couldn't justify the additional costing of a shop.

Most customers I know just don't want the hassle of unplugging and ferrying their machine around themselves.

So I do it.

 

[Martyn]

I'm happy in my converted garage.
Prior to that, I worked from my back bedroom.

In the 10 years I've been trading, I've had, I guess, 5 customers come to my house, And they just drop off and pickup their machine from the front door.
I've only ever had one actually come inside.

Basically, just about all my work is performed onsite, or I bring the machine back to the office myself.

I couldn't justify the additional costing of a shop.

Most customers I know just don't want the hassle of unplugging and ferrying their machine around themselves.

So I do it.

The reverse of me Bertie. I was in the converted garage and am now in a converted bedroom. I have a few people call to drop off because it's not really efficient to keep picking up and dropping off. Invariably you get caught to do stuff dropping off as well. As a side question Bertie what are your hourly/onsite rates?

 

[mau64]

I have an office above the garage. We have a 2 car garage and a 1 car garage attached to it. it's a separate room that my wife uses for photography. My office is above that, but you have to go through the house. I keep thinking about moving my benches down to the main garage but cannot make up my mind how

I want to do it to make it the most professional looking. Well, as much as walking through the garage can be, but just haven't figured out the best way yet. If it is business, I go to them or remote in.

 

[jamiesev]

I work from home, keeps overheads low!

 

[bertie40]

......As a side question Bertie what are your hourly/onsite rates?

Domestic £40 ($65) / Hour

Biz £60 ($100) / Hour

Dependant on distance, I sometimes tack on £5 ($8) for petrol, but this is rare.

But I couldn't justify the cost of a shop, it would wipe me out.
I did pass an empty shop which did catch my eye, but I decided against.

It's now an undertakers.

 

[NYJimbo]

I think the thing I love the most about having a shop is the odd walk-ins, business without even trying. On Friday some Jamaican dude (seriously, the accent, the hat, etc) walks in with an apple laptop and asks me what I would charge to install a DVD player. I tell him I have to look up the price of the player and he says "I already ordered it, It's coming in Monday, I just need you to install it". I told him $40, he said "Great, mon, I will see you next week." I then went back to my coffee and TV while replacing some LCD's on laptops (yay, 15.6 common LED screens !!).

It's the ability to just sit there and have business come to you. Like our electric company sends out different meter readers every month (why so much turnover, its not that hard a job) and almost every one starts up a conversation about their or a friends computer. A few days later they are back in with a machine that needs work. Every UPS, USPS, FEDEX delivery, same thing. Anyone who shows up for something else, asks about computer repair.

If you are comfortable talking to strangers and can work a conversation, having a store is just guaranteed money. EVERYONE today has computer issues, they just don't know who to go to. If you are likeable and have a pretty good history you can do this stuff until you are old and dead.