Setting Up A Storefront, The Right Way. - Technibble
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Setting Up A Storefront, The Right Way.

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Guest Contribution by Terry Moon of Computer Pro Inc.

There comes a time in every aspiring tech’s life whether or not they should open up an actual storefront. There are some big pros and a few cons that one should consider before embarking on such an endeavor. Every year we see brick and mortar computer stores popup but only a small percentage make it past the 5 year mark.

Pros of Operating Out of A Storefront

The biggest pro would be the possibility of a steady influx of customers. Notice we said “possibility”. There are a few factors that must be met before this becomes more of a sure thing.

When it’s done right there is nothing better than unlocking the door in the morning, turning on the open sign and greeting the new customers as they arrive. The term “If you build it, they will come” can be a reality if it’s all done correctly. So what is “done correctly”?

Computer Pro Shop Front Desk

The Right Way Versus The Wrong Way To Do It

Location, location, location. This is a popular real estate phrase, and for good reason. The right or wrong location can make or break you quickly.

Our first location fell into the “wrong” way to do it category. Back in 2002 we moved into our first location. We are in a medium sized city that is fairly close to 2 other cities that are roughly the same size. All three cities are collectively known as the TriCities and are approx a 30 minute drive from each other. In the center of the TriCities is a small village that seemed to be growing the last couple of years. We did work (from
our home) for a few clients in all three cities.

Our main city (where we did the most) and every now and then a client or two from the other two cities. Moving in the center of all the action would give us equal distance and time to service all 3 cities which would be great! Was it great? Actually no. Being central to everyone also meant being not very close to everyone also. Every single customer from any of the 3 cities would have to drive outside of their city to visit us. It wound up being not the best strategy.

After several years there “surviving”, we decided to move to our main city, the one where we did 80-90% of our service. We chose a location on a main highway in a suburb of the main city. This location was key. We would be very close the the main city, a 10 min drive or less for most people. But we dominated the small suburb that we were in. There was one other smaller shop located on the same highway and a few ‘work out of their house’ guys but other than that, we were it. This immediately brought in foot traffic. We were located amongst some major fast food chains, Wendy’s, McDonald’s, Taco Bell etc. So visibility was terrific.

The best recipe for us: Find a large major road/highway, in a nice suburb or area on the outskirts of the city. Especially if the city has several of your competitors. You’ll wind up owning the suburb (unless its already dominated by a large shop) and you’ll pull from the neighboring city once word of mouth starts happening.

Branding. ​Yes its true. Most techs while awesome at their craft, are less than stellar in business and marketing. We run in to many businesses today that do not have an actual logo (they just use their name, like attorney’s), no color scheme, no taglines, no branding at all. There’s a reason why all the big companies do it, because it works!

  • Have a logo​. With companies like Fiverr and other crowd bidding logo houses its not that expensive anymore. I’ve seen many techs post their prospective logos on Technibble forums for other techs’ input. That’s a great idea, and its free!
  • Color scheme.​ We see this all the time too. A small PC shop where a generic logo is say Blue, the shop walls are white, the counters are mismatched wood and every tech is wearing a different color t-shirt, usually of their favorite rock band. Did you ever notice when you go into a major store like say Target, that their ‘red’ theme is present all over the store? All the employees wear the same red polo shirts. You can spot an employee among a crowd of people from 50 feet away. Always use your color scheme in addition to your logo. It will help you stand out from the “average” mom and pop PC shops.
  • Signage. ​Go big or go home. That’s usually how we roll when it comes to signage. By spending a little more upfront you will save big in the long run. We do no TV, radio or billboard advertising whatsoever. No Google Adwords (although we are looking into that). Just basic SEO and good signage.

We have 2 big awnings that have nothing but our logo and our name. That way the letters are as big as possible. The one mistake we see a lot are signs that include way too much text. Some try to include what they offer such as:

John Doe Computer Repair

  • Virus removal ­
  • Networking
  • ­ Laptops ­
  • Desktops
  • ­ The list goes on

There’s a place for extra text and listing the things you do, but your main storefront sign is not one of them. Just take a look at the big guns signs what do they have?

Best Buy, Target, Office Max, WalMart, etc.  Just a huge name. They don’t list what they do. The more letters you have on your sign, the smaller the letters must be to fit. You want your sign to be read from hundreds of feet away. Cars driving by aren’t going to read the smaller, extra text anyway.

 

ComputerPro

It wouldn’t be right if we didn’t mention any Cons of operating out of a storefront. Of course there are a few.

Double the expenses. You open your mail, great the electric bill is due! You get to the shop and find the exact same letter, only its for your business and its much more! Double rent, utilities, phone, taxes etc. Also don’t forget about insurance, monthly alarm charges, cleaning etc. The list goes on.

No more rolling out of bed, crawling to your work area, pouring your coffee while watching your favorite morning show! Now you have to get ‘properly’ dressed, race around to be “on time” to open the shop. In other words you have an added responsibility.

The moral of the story is if you decide to do it, do it right. Doing it for the wrong reasons will eventually lead to disaster. Getting an ‘office’ space because your house is overcrowded is a risky venture. Unless you’re going to follow all of the above, just renting ‘extra’ space is an added expense with little or no additional revenue aside from the ability to house more systems.

To us having a storefront is definitely worth it! To others it may not be. If you decide to take the plunge, please take note of the above tips as they have helped us to become one of the most successful and highest volume service shops in our area.

 

Terry has been in the computer tech field since 1997 which eventually let to the founding of Computer Pro Inc, one of the largest privately owned computer service companies in mid ­Michigan. His expertise includes computer repair, laptop service, networking, servers, web design, service shop setup and design and more.

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  • Ruben says:

    Great Info!
    I´m currently working from my home and thinking of open a small shop outfront and this tips save from making a lot of mistakes from the beggining.
    I hope i can make it and in the early future share the experience too. Greetings.

  • Lisa aka Call That Girl says:

    Excellent article Terry! I wish I had this to read years ago when I started considering opening stores. I probably would have kept my office!

  • Scott H, Onsite Consulting in Denver says:

    Great article. I have lots of additional expenses which I never had when working from home.

    Second Electrical, Rent, Insurance and trash bill each month.
    Having to adhere to fire codes and extinguishers
    Worrying about someone breaking in or theft from landlord or adjacent business.
    Flood from the neighbor (this happened to me)
    Changing the locks from last tenant

    Most of all, don’t think that “if I build it, they will come.” Though we are one of the biggest independent companies in Denver, in one of the busiest intersections with the second busiest supermarket in Denver — we could NEVER survive on walk in traffic. We only get about 5 clients a month who just see the logos and signage and come in. Put your efforts and reputation into building your business by providing unbelievable service to clients and the business success will follow!

    • Terry says:

      Great points Scott. I’m curious though if you have other high volume shops near your location? Reason I ask is because we get up to 5 new clients a day just from being there and being seen or passed by. After being there for a few years I thought the ‘new clients’ would slow down as most people know about us but we still get them every day. Although we wouldn’t flourish without our business clients, we could survive with walk in traffic alone.

  • Mark says:

    Nothing makes me cringe more than the thought of having or getting a storefront. I have a back-up IT guy (different consultant) that we cover for each other and we can just get on a plane and take-off anywhere we want to whenever we want to. You have to worry about employees, payroll, taxes, inventory, marketing, city rules and regulations. All that gives me a migraine. Then you have little to show for it all at the end. On top of that you have to deal with moron home-users with teenager spyware problems. No thank you … those problems are better suited for Geek Squad and Staples. I wouldn’t trade-in my business services for anything. There are plenty of other accounts to get where people are already upset with their current IT guy.

  • Terry says:

    Your right Mark, it’s definitely not for everyone. The biggest benefit (if your successful) other than the pride of creating something is really the money. You can only make so much by yourself especially billing hourly. With a storefront the sky is the limit really. If you have enough employees and coverage then you can indeed enjoy multiple vacations whenever you want. Some of the issues you mentioned are still there if you don’t have a storefront: Taxes, marketing etc. I think its much easier to market if you do have a location mostly due to thousands of cars driving by each day. The teenager spyware problems are a super easy bread and butter money maker for sure so we would never want to give up those lol. Switching over to all business and letting our residential go would kill a couple hundred thousand a year so for us it would be crazy to give that up. I’ve thought about it before believe me. If I sold the shop and just kept our business clients subtracting the extra expenses for the shop, what would life be like? The thought of giving upon the extra couple hundred $K a year makes the decision very easy though.

    The other side that isn’t mentioned too much is on the asset and retirement side. If you create a legitimate business that can operate without you then you’ve got a very valuable asset that you could sell one day that could be your whole retirement depending on the size of your company. If your a consultant out of your home then you are the business really. Then you only have a client list to sell which is much harder since your customers may like your personal support and not the next guys.

    Money can be made both ways but only one way truly (or much easier I should say) built up an asset that can be easily transferred or sold when you retire.

    Good points though and your right, a storefront isn’t for everyone.

    Take care,

    Terry

  • Brian says:

    Great advice. Everything is spot on. One thing to think about when deciding to move to a store front is whether to lease or if possible, buy your own property. Everyone’s situation and location is different, but in 10-20 years you could easily spend the equivalent amount of rent that you could have put down on your mortgage. And when you’re ready to retire or close up shop, the building can serve as extra revenue should you choose to sell or rent it.

  • Adminus says:

    I know of this shop, I pass your store all the time.
    While decent to good information, like was said, a storefront is NOT for everyone.
    I’ve been doing the same job as the writer since ’95, all over the tri-cities, all over the state for various companies.
    Getting rid of “home” clients is suicide in our area unless you are locked into GREAT business contracts in the area, which is rare because nobody likes to spend what they should either for equipment or for support.

    Techs in our area get paid WAY less than market value.
    I live about 2 miles from this store’s location but drive about 100 miles each way to work and back in order to profit enough to cover all the bills for my family.
    We ONLY service businesses, and mostly large law firms.
    When you have ONE client alone willing to pay $80K yr just to support them on occasion, its hard to say “No” if you only have to be seen there 3 days a week.

    I have seen too many stores in our area fold up, and only a handful have been around more than a few years.

    I no longer do “Home” clients due to time, unless it’s Data Recovery and thats on a case by case basis.

  • Kyle Wood says:

    I have built my business to a 300,000 to 350,000 a year by myself billing hourly (and selling and implementing systems/networks). 75% of my business is commercial and the other 25 percent is high end residential. I’ve thought about opening up a shop, but I’m not sure it would benefit me. Thanks for the article.

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