When did you go brick and mortar?

[Rocco]

I currently work out of my house. At this time, I have 6 computers being worked on simultaneously. I picked them all up today. I have 2 computers on my desk in my room. 3 on my kitchen table, and one setup on the floor in my living room. I have enough monitors/keyboards etc for all of them. But I don't like this, LOL.

One advantage I see in this is I can keep running diags, virus scans, etc throughout the night. I can watch my movies, play video games, etc while doing it. But this is also a problem, LOL. I feel obligated to work on these until they are done, no matter how late it is. I also want my kitchen table back. It has been like this 3 days this week.

However, last week, I brought a total of 1 computer home with me. The week before, 2. 3 weeks ago, it was the same as this week. So this stuff is clearly not always in my way.

So my question is for both those who have a brick and mortar location, and those who still work from home. For those who have a brick and mortar location, at what point did you decide to take that step? Did you start out that way? Did you start eating dinner with your computers? Did you just decide it was time?

For those who have successfully worked out of your home, do you have any advice on how to better handle things? This will clearly not work for me long term if I stay here. I live in a small place.

There is still a place on a decently busy road. It is only $400 a month, about 1200 square feet. It is set up just like I think I want my shop. Small display area, large workshop area in the back. I know I need to figure in electricity, water, and internet, but even if total bills came to $900, it still doesn't come close to touching a 1/4 of what I have been averaging the last few months. My only overhead at this time is gas and ~$400 / month in advertising.

A few things I am afraid of though. First, I think I have become so successful because unlike all my competition, I am advertising. I am advertising a lot. I have yet to ever see an ad for any of my competition. If that changes, I may not stay so successful. They have years of business, vs my almost 1 year. As always, I am afraid that if they realize they can actually squash me like a bug if they wanted to, they will do it.

Another thing I am worried about is employees. If I have a brick and mortar location, would I be expected to hire somebody to work the counter full time, or do customers accept by appointment only? Right now, since I only do on site work, or shop work only if long diags and scans are required, everything is based at the customer's house. I know I don't make enough yet to pay somebody else, nor do I want the hassle.

The place I am looking at requires a 3 year lease at that price. It is also only 3 blocks from my house. Any advice from all you smarter people? Thanks!

 

[Markverhyden]

I chose not to get a store front when I went 100% on my own.

1. Around here they are still very proud of their real estate and even in poor locations (no traffic or exposure) they still want as much as 800-900 rent. And then all of the extra costs on top of that.

2. Having a regular shop means you really need to have someone there during business hours. People drive by, see the sign and expect to come in. Now having an office in a building is a little different. I toyed with the idea of getting a couple of retirees to man the store while I would be gone but decided that would not work out.

3. Remember that you will lose your home business deductions, assuming you are taking advantage of that. Granted the net tax benefit may not be great. But the reduction in you taxable income may put you in a lower bracket.

4. I also looked around my area. And still am looking around. I had worked at CompUSA for a number of years and witnessed the shrinking store front presence of businesses of all sizes. One shop close to the store was given permission to put his cards out and we recommended him when our store was closing. His was a franchise, Data Doctors I think. Located on a well traveled road. He ended up closing after about 3-4 years. In my immediate area I've seen about 7 or 8 small store fronts close up in the last 5 years. I'm not saying it's doomed to fail. Just that the market dynamics have become very difficult to manage.

5. One strategy that I have seen, and has been mentioned on this forum, is to team up with another business(es). Rent out a room or two. Then you would have someone around to receive equipment for drop off. Of course you need to properly manage the risk associated with that.

 

[altrenda]

It sounds like right now you need a dedicated workshop, unless you really want to operate a store.

If you don't have enough space at home, look at what other space is available. It could be a room in someones office that they want to sublet, or someones garage, or a small office in a building. It doesn't have to be fancy, just a space you can work comfortably and won't break the budget.

You need to be concerned with power and internet access, as well as security. It's not good to have peoples computers stolen. Ease of access is important, the first space I had was on a second floor with no elevator. That got old real quick.

Running a shop is a whole different level that I never wanted to get into.

 

[SprinterTech-WI]

I went retail 1yr after starting, but I was (am) young and no family to support... so it was easier.

 

[cmonova]

For those who have a brick and mortar location, at what point did you decide to take that step? Did you start out that way? Did you start eating dinner with your computers? Did you just decide it was time?

We went to brick and motor after we got a few business clients that were paying us monthly. At that point I knew we could grow it to more managed services type customers and that would cover our expenses to get it going. Once we did then we got more businesses and still did residential.

 

[lsi]

we didn't get a shop until it was absolutely necessary. Once it was time to hire employees I couldn't renew my home-based business license (zoning) and I didn't want employees coming to my house anyways to pick up parts, tools, etc. It was a little humorous when the city wanted me to renew my business license and I had to explain they zoned me out of business in their city so I moved.

 

[Mokester]

When to open shop

That is an interesting question that I have been debating...if my operation gets bigger. I've decided to just get a bigger place and dedicate a room to running my business. We had something like this at the last place I worked at as an employee, we had 10 monitors all wall mounted, VGA and DVI connectors hanging, tons of power outlets on a rail, gigabit switch isolated from our work network, etc.

Seems the most efficient way to do things. But I'm nowhere near there and plan to keep my business part-time so I doubt I'll get large enough that I'd need to do that. But I really enjoied reading about how all the others decided to move into shops!

 

[kwest]

I worked out of my home and mobile for 4 years. Moved into an office (inside a clients office with no signs) business doubled that year. Next year hired someone to be I. The office while I am out on appts and business doubled again. This year I moved out to a 600 sq foot location with big signs on two side on the main road. This is the second month being there and we have never been so busy.

Don't move unless current business can pay for it. If you get more bonus. Of not then you have a more comfortable spot to work.

Reality is there are a lot of customers that want to drop off a pc to get fixed.

We offer onsite drop off or pickup. It is the customers choice. Most choose to save money and drop it off.

 

[jft135]

2. Having a regular shop means you really need to have someone there during business hours. People drive by, see the sign and expect to come in. Now having an office in a building is a little different. I toyed with the idea of getting a couple of retirees to man the store while I would be gone but decided that would not work out.

This one is killer. I've had a retail location since I went full-time, but it can really tie you down. I prefer to work at the shop, but if you need to do a service call in the middle of the day, you have to either lose the client, or lose any clients that may show up when you're gone.

That being said, it is on a major road with good exposure and more or less pays for itself. Until you grow enough to hire employees though, it can be stressful.

 

[tom11011]

I currently work out of my house. At this time, I have 6 computers being worked on simultaneously. I picked them all up today. I have 2 computers on my desk in my room. 3 on my kitchen table, and one setup on the floor in my living room. I have enough monitors/keyboards etc for all of them. But I don't like this, LOL.

One advantage I see in this is I can keep running diags, virus scans, etc throughout the night. I can watch my movies, play video games, etc while doing it. But this is also a problem, LOL. I feel obligated to work on these until they are done, no matter how late it is. I also want my kitchen table back. It has been like this 3 days this week.

However, last week, I brought a total of 1 computer home with me. The week before, 2. 3 weeks ago, it was the same as this week. So this stuff is clearly not always in my way.

So my question is for both those who have a brick and mortar location, and those who still work from home. For those who have a brick and mortar location, at what point did you decide to take that step? Did you start out that way? Did you start eating dinner with your computers? Did you just decide it was time?

For those who have successfully worked out of your home, do you have any advice on how to better handle things? This will clearly not work for me long term if I stay here. I live in a small place.

There is still a place on a decently busy road. It is only $400 a month, about 1200 square feet. It is set up just like I think I want my shop. Small display area, large workshop area in the back. I know I need to figure in electricity, water, and internet, but even if total bills came to $900, it still doesn't come close to touching a 1/4 of what I have been averaging the last few months. My only overhead at this time is gas and ~$400 / month in advertising.

A few things I am afraid of though. First, I think I have become so successful because unlike all my competition, I am advertising. I am advertising a lot. I have yet to ever see an ad for any of my competition. If that changes, I may not stay so successful. They have years of business, vs my almost 1 year. As always, I am afraid that if they realize they can actually squash me like a bug if they wanted to, they will do it.

Another thing I am worried about is employees. If I have a brick and mortar location, would I be expected to hire somebody to work the counter full time, or do customers accept by appointment only? Right now, since I only do on site work, or shop work only if long diags and scans are required, everything is based at the customer's house. I know I don't make enough yet to pay somebody else, nor do I want the hassle.

The place I am looking at requires a 3 year lease at that price. It is also only 3 blocks from my house. Any advice from all you smarter people? Thanks!

Having a shop means having business hours. Is that what you want?

Also, are you married? Probably makes a difference as far as having stuff on the dining room table.

 

[Rocco]

Having a shop means having business hours. Is that what you want?

Also, are you married? Probably makes a difference as far as having stuff on the dining room table.

I am a single parent. The only person it bothers is me.

As for the hours, no. I think my biggest selling point is that I do work until all work is done. So it is not uncommon to have computer doing their thing until midnight. Guaranteed next day turn around unless parts are needed.

But I do like the idea of having a workshop. I think I will call around, see if I can find something. This way I may only have to take 1-2 computers home.

I understand what somebody else said about more customers. I think I have lost a few that only wanted brick and mortar.

 

[frederick]

I recommend getting an office space over a store front. With an office, you aren't advertising on the street, at least not in the traditional storefront manner. With us, people call, and we schedule for a drop off. We can't always be there, so this is how it works out. We might keep a guy in shop doing nothing but bench work, but not everyday. And when we do have a guy in the shop like this, it's just him, and he may get called away for something.

 

[Tony_Scarpelli]

I went brick and mortar after I hit $10,000 gross profit 3 months in a row. I started looking and considering after the first month, met some realtors after the 2nd month and when I saw it wasn't a fluke I pulled the trigger.

However this caveat.

Are you charging enough or are you a pizza tech? I mean if you are making at least as much as a local plumber, electrician or other professionals in your area who have skills and have to charge enough to make overhead: advertising, insurance, rent, utilities, phone, cell, internet, taxes.

Are you charging enough that after you pay $12 per hour employee plus another $2 taxes on him that you can at least triple or quadruple his costs for your hourly charges? If your tech costs you $15 you should not charge less than $60-75 per hour for him....Your accountant can confirm this ratio for you. BTW even if you have hired folks for $8, $9 or !0 per hour do not assume you can always find people who can help you for those incomes. So do not fool yourself into unrealistic costs for your analysis.

If you are not charging enough but busy as hell then you need to raise your prices and see who you keep and how busy you are with a professional level of charges. You might be surprised that you keep all your customers and make more money for the kitty. Then you are ready to talk open shop, hire employee.

I began my shop with one full time employee 6 days a week. He opened at 9am and worked through lunch to 6pm with me paying him overtime. I soon got a second full time person and then did not pay over time.

Someone has to watch the shop while you go pickup and drop off or do on site calls.

The reason I waited till I made $10-12k several months is that I figured rent would be $1000, labor $2000, utilities $400-600 and I wanted to make sure there was enough for me when we were done paying bills.

Good luck.

 

[HawkinsPC]

I'm 90% residential break/fix. I have some business clients that are generally quiet and some webdesign work. My business picked up but was pretty crappy until I was offered a cheap storefront. I use it primarily as an office--I don't sell anything, but it's a good location in the city's downtown area. I had about a month to get my act together and move into the place. The first month was slow, but it's been decent since. The town I'm in is not my favorite and is very small (the local paper did an article recently on it; more motivation to leave http://goo.gl/gYRX72) I'm hoping to shut down my shop and move to my hometown within the next 9 months.

 

[altrenda]

.... Are you charging enough or are you a pizza tech? I mean if you are making at least as much as a local plumber, electrician or other professionals in your area who have skills and have to charge enough to make overhead: advertising, insurance, rent, utilities, phone, cell, internet, taxes.
........
If you are not charging enough but busy as hell then you need to raise your prices and see who you keep and how busy you are with a professional level of charges. You might be surprised that you keep all your customers and make more money for the kitty. Then you are ready to talk open shop, hire employee.

Thanks for this. There are always people in my area thinking that existing businesses charge too much or take advantage of customers. They start up, undercut prices, and find they can't sustain their business at that rate. Sometimes they can't raise their prices enough to survive. And the higher priced guys keep rolling on.

I never wanted a store because I think of myself as a tech and don't have any interest in the other parts. But if I was going to go that way, I would look at Tony, Sprinter Tech, PCX and some others on how to make it work.

 

[LifelineIT]

I'm battling this question myself. I'm 4 years in now, totally part time, some months are wild feast and some are intense famine. I've never advertised or aggressively pursued clients, I'm 100% word of mouth. I am using a spare bedroom in my house as my work area...my server, bench rig, my physical repair station, router, a switch...etc. My issue is that in my day job I've really JUST gotten to the point where we're not quite check to check, and I've got a 3 year old...so...it's scary. I've outgrown my room and my lady isn't pleased that we don't have a guest room (although she's got a craft room too...)

I know for certain that I could be profitable being full time, I'm just a chicken.

 

[callthatgirl]

I would just have an office and have "By appointment only" do all of your work via the phone and go get stuff, keep your routine. If I could go back in time, I did have an office that was fine, when you have a store you are tied down to that store.

Do an office for a few years, then decide. You almost have to have staff that is on payroll, more expenses...yet more regrets I have lol.

 

[YeOldeStonecat]

It's nice being able to separate your work, from your home.

We're all SMB support...thus we have no "retail" store. We have nearly always had however, office space.

Started out in a small shared office in an old building downtown, sub'd out from a data center. We had 2x small rooms...enough for desk, table, couch, and piles of crap. We had internet access, heat, electricity...and those 2x small rooms...for about 300 bucks a month. Allowed us to get phones and a business address though! And a building where the UPS and FedEx guys regularly delivered..and other neighboring businesses to sign for packages if we were out!

Some of you may have been reading one of the "intro" threads over the past few days...2x guys that worked for a "competitor" friend of mine....shared the same building. There were 3x tech companies in that building.

Have since moved...I found a great spot, in a "professional center" building which is located in a storage facility complex. We have 3x suites, a storage unit, conference room use, heat, electricity included...for barely twice what we paid before. Great location for in and out. We don't want a store front, no need for retail or cold walk ins. Yet we're still convenient and easy to find for those that come to us.

Like I started my reply with, it's nice to separate work from home. Yeah I still work from home a lot...but it's from my laptop...remote work. Hauling home hardware ...I'm not fond of it. A necessary evil once in a while..but would rather hang at the office to wrap those up. Leave the mess there...have them running on the offices electricity instead of jacking up my homes bill.

To ease the burden, recommend looking for shared space or a small professional center. Not a formal one..as they can be pricey, but a more laid back or shared one.
A nice step to take...that won't burden you too much, and then when you're ready to grow some more and get a more formal "store" front...you can take that step at that time.

 

[acscva]

When I had my business in upstate NY I had a 4000 sq ft retail showroom and service center. I sold my customer-base there about a year after I moved to Virginia. I had a small office and showroom here for about a year and then decided I wasn't using it as much as I wanted and was paying $600 a month in rent.

For the past 9 months I have been working from my home office but have been very busy and tired of having stuff spread throughout the house. I have been looking for an office space to share with a couple of friends that one is a chiropractor and another a massage therapist. Basically looking for an conference room that I can meet customers at and also have a spot to work on up to 5 pc's at once.

Also having an office will help with prospects that ask where you are located. Some of them don't like the fact you work out of your house or at least they look at you a little different instead of an established retail location.

So in my 27 years experience I wouldn't recommend retail store front to anyone but if you could have an office that you would be available by appointment I think is the best option.....