posted
After going home for Christmas, and realizing that I've got a lot of work ahead of me before I can get published as a writer, I've decided to follow the other dream I had when I was little and start up my own computer business. I'm fairly nervous about it, since it's going way outside my comfort zone to do this for real (I played with having a business when I was a teenager, but never really got anywhere). I'm planning on doing an on-site support setup, as well as building computers. The main marketing point I'll have is to go around and optimize people's computers (removing spyware/viruses, adding RAM if necessary, recomending upgrade options if computers are excessively old), and teaching them how to keep their computers and personal information safe while surfing the Internet. I'll do other stuff as well, but will spend most of my marketing time on that subject, since it seems to be in demand lately. So, what I'd like to know is if anyone else here does on-site stuff, and what I might expect, as well as some tips on getting started. I also thought I'd get some suggestions for business names. I was considering "Cyber Space Systems" for a while, but I'm not sure if that one is taken or trademarked. The other idea I had was to use my old Internet handle, "Cyber Cowboy." I thought that one would be kinda fun, since I could put a whole western US spin on my advertising (This being Idaho and all), something like, "Is your computer acting more like a cow than it should? The call the Cyber Cowboy and turn that cow into a stallion!" I thought maybe "Computer Cowboy" would work similarly, but be more focused. So anyway, comments, suggestions, etc?
Posts: 3003 | Registered: Oct 2004
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posted
The name ideas are reminiscent of an old bad movie I once saw wherein a "hacker" commented that he was a "keyboard cowboy" or something. I winced.
I'm the resident computer geek for my dorm, and I spent the first two or three weeks of school cleaning students' computers. Primarily it was installing Serivce Pack 2, running some malware-finder on their system, and reccomending they switch to Opera or Firefox for regular browsing.
I also set up a lot of them to be able to connect ot the UVM wireless network.
Sadly, a lot of them were cute girls, and I alreaday have a girlfriend. *sigh* One of them was my RA, though, so I have a 'get out of jail free' card with him, which is handy, because my roomate smokes pot a lot in my room. Posts: 903 | Registered: May 2003
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Either incorporate or form a limited liability company. LLC is simpler. This can likely be done without a lawyer - there are lots of how-to guides available that should help you step through your business's creation with various gov't agencies, including IRS, state corporation commissions, etc. Follow all the formalities - shareholder meetings w/ minutes, directors' meetings w/ minutes, or document all decisions as members of the LLC.
Keep the assets and actions of your business separate from your personal life. This is critical. You need to establish a bank account for the company and provide adequate capitalization (which is not as scary as it sounds). If you transfer money from the company to yourself, do it in a formal fashion as dividends or salary. If you transfer money from yourself to the corporation, again use a formal instrument such as shares of stock/ownership or as a loan (with interest). Always conduct business as "Cyber Space Systems, Inc." or "Cyber Space Systems, LLC".
The combination of these two things will help limit your liability in certain situations to the assets of the corporation/company.
There are tax consequences to each decision you make; do the research to make sure you pick the right answer. It's not hard, and it's important.
Don't let all this scare you, but do look into it.
posted
I second Dagonee's advice - our company is an LLC.
Watch your debt - it's easy to get in way over your head, thinking that the business will eventually get big enough to pay it all back.
Keep in mind that successful businesses aren't born, they are made and maintained through extreme amounts of hard work. It's not an easy way to make money, but it's a very easy way to lose a lot.
If you're going to other people's houses to work - then you may be required to hold a business license in each municipality in which you work - that can add up really quick. Some municipalities will require you to pay different taxes on the amount you earn while working there, we have to pay occupational taxes in two different areas. Check on sales tax, too - are you going to be selling people software? If so, that's a whole other ballgame when it comes to recordkeeping and taxes. You'll have to pay the sales tax in each area, depending on where your customer lives, because you have to pay the tax that is in the area in which the sale took place, i.e., your customer's home.
Even if you think you can't afford it - get a good CPA on board to help you with your payables and receivables and advise you on taxes. They save you much more than they cost you.
If this sounds overwhelming, it's because it is. We very nearly sold our business and quit because of all the regulatory and beaurocratic requirements and the absolute nightmare it was to keep it all going. Sometimes I think our governments (by that I mean state and local more so than federal even) don't want businesses to succeed.
Posts: 14428 | Registered: Aug 2001
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quote:Watch your debt - it's easy to get in way over your head, thinking that the business will eventually get big enough to pay it all back.
This is a big one. Debt service can dominate your cash flow if you're not careful, which can make it hard to take advantage of opportunities. You'll want a good relationship with a parts supplier that will let you keep low inventory.
If you're going to make computers, sales tax will be an issue. Your parts will not be taxable when you buy them, but you'll have to document your intent to sell. This requires different forms in differents states.
posted
Looks like I'm going to need a "Starting a Business for Dummies" book now There's more to it than I thought aparently. I'm still not 100% sure I want to do this yet. Everything's kinda hazy in life for me. Would it be too much work for a full-time college student to handle comes to mind as a good question. I know a lot of students here who do this kind of work for other students and some of the apartment complexes, but I don't know if they've gotten business licenses and everything. I do know that some haven't done that, but limit themselves to servicing college students' computers. The part that is confusing me is the legal aspect of starting a business. I never took the oportunity to figure that out. That and the tax laws. Guess I need to do some research Posts: 3003 | Registered: Oct 2004
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posted
Sometimes cities and states sponsor small business workshops, where you can go learn the basics of starting a small business. The people who run those workshops should have plenty of information for you. I attended a workshop on state taxes, back when I was a bookkeeper for a 501(c)3 group. It was quite helpful, and most of the people there were from small businesses.
Posts: 1813 | Registered: Apr 2001
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One of them was my RA, though, so I have a 'get out of jail free' card with him, which is handy, because my roomate smokes pot a lot in my room. ![[Embarrassed]](redface.gif)
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There's more to it than I thought aparently. I'm still not 100% sure I want to do this yet. Everything's kinda hazy in life for me. Would it be too much work for a full-time college student to handle comes to mind as a good question. I know a lot of students here who do this kind of work for other students and some of the apartment complexes, but I don't know if they've gotten business licenses and everything. I do know that some haven't done that, but limit themselves to servicing college students' computers. 
