How to Start a Computer Repair Shop

How it all Started

So you would like to know how to open a computer repair shop. Well, let me tell you my story about when I decided to start a computer store to refurbish and repair computers...

It all started in 2007 while I was homeless and broke. I owned a car but could rarely afford gas for it. Sometimes I would volunteer at a local computer recycling center where I often had the opportunity to buy computers fairly cheap. I would refurbish these computers and then sell them. Occasionally, I would be able to sell a laptop on craigslist, but not very often, so I went to a bunch of computer stores offering to sell them refurbished computers for resale. I only found one place willing to do that and I only made a few sales each month. I never made more than $20 or $30 profit on a computer though. It was enough to put gas in my car but not much more. I was mainly surviving off of food stamps. One day while making a sale to the store, I noticed a laptop I had sold them for a $100. It was sitting on his counter with a $300 price tag. I remember him telling me earlier that he could easily sell a laptop every week even though I could only get him one or two a month for refurbishing from the recycling center. I thought to myself, that is a potential $800 profit every month, just on his laptops. I also knew he sold several desktops with almost as much profit.

About a week later, I was walking somewhere (couldn't afford gas to drive), when I noticed a small empty storefront in an old building. It had a for rent sign with a phone number. I took a look inside through the window and could see it had a bathroom and a small room in the back. It had been empty for over a year and I realized it might be perfect for starting a business. I called the owner and he told me that he wanted $550 a month to rent it out. There was no deposit required.

How I financed it

I had family that would sometimes loan me money. I had always made it a point to pay them back even if I had to go hungry to do so. But I had never borrowed more than a hundred dollars and nobody in my family could afford much more than that except one person. That was my younger sister who was living in another country. She had started an import business and I heard she was doing quite well with it. I decided to take a risk and ask her for a sizable sum of money. I wrote a half page business plan and emailed it to her. I asked her for $3000. I honestly expected her to come up with an excuse and say no. Asking for that kind of money, just wasn't done in my family. I felt totally embarrassed for asking. I was in shock when she wrote me back and agreed. I received the loan via check two weeks later.

Getting Started

I started in early July of 2007 by giving the owner around $1000 which paid the rent till the end of August. I wanted to be ahead on the rent in case things started out slowly (which they did). I drew up some plans for some furnishings, calculated the amount of lumber needed, then went to the hardware store. I bought the lumber and wood screws I needed, rented a truck and brought the stuff to the store. I borrowed some power tools and began putting it all together. I arranged to get a phone, internet service, and power (in my name, it was already on). There was an eight by ten foot storage room in the back where I set up a foam mattress to sleep on at night. There was also a bathroom where I could easily give myself a sponge bath. I was fairly optimistic now but also scared. I had never tried anything like this before. What if nobody came? I forced myself to work as hard as I could and I was ready to open with three days.

Pictures taken shortly after I opened. Note the sparse surroundings and just a few computers. My life as an entrepreneur was beginning.
Pictures taken shortly after I opened. Note the sparse surroundings and just a few computers. My life as an entrepreneur was beginning.

Opening Day

I had bought four computers and refurbished them. I bought a cheap $15 digital camera for my ads on craigslist. Finally I was ready. I opened the doors. I hadn't planned for a sign, so I bought a dry erase board, wrote on it,and stuck it on a chair. I was already making mistakes. Would I succeed or go down in flames? The first day went by with no sales...then a second and third day. I was starting to worry. Finally a phone call and my first customer showed up. He looked at the computer, we talked for a while, and I made my first sale. I used that money to buy another computer to fix up for the next sale.

War and Serendipity

I spent hours every day running ads on craigslist. There were a couple of other people in my area also trying to sell computers from home and they started a flagging campaign against me. I started keeping my ads in text files so that I could easily repost them. I learned HTML code to start making my ads look better. Knowing HTML code helped in my battles to keep my ads up and near the top. One guy started using HTML code to search craigslist for ads with my phone number and then show all my ads in a post where he would ask people to flag me. Studying his code, I saw its weakness and countered by inserting invisible tags between the digits of my phone number. It was a constant technological battle, but I wasn't going anywhere, and I was persistent. I was still barely making enough sales to cover my overhead. Another problem occurred when the place that I bought computers from discovered that I had opened a computer store and they didn't want any of their computers resold (recycling politics - a whole other story), so I was banned from buying any more. I solved that problem for about a month by paying some of my friends to volunteer their time and help get me more computers.

Eventually some unexpected help came my way. A friend of mine was going through dumpsters looking for aluminum cans when he came across a place that had gone out of business. In a huge industrial dumpster in the back were about 50 old monitors, half a dozen computers, tons of printers, and all sorts of useful stuff that had been cleaned out of an old telemarketing place. He told me about it and I made about a dozen trips collecting stuff. A lot of it I returned, but much of it was useful. Other people started bringing in stuff that they found that they thought I could use. There were a lot of people that wanted me to succeed. I was separated from my wife and when I showed her what I was doing, she wanted to help out. She started coming around and making the place look a lot nicer, plus I discovered that she was great with the customers. A couple of guys stopped by my store and said that they were in the recycling business, selling a lot of their computer stuff for scrap metal. I was able to start buying a lot of my stuff from them, allowing me to let go of the recycling center. A few people started donating old computers that had quit working or were old. I was able to fix them or strip them for parts.

Things started to come together. I slowly started getting repairs. A couple of laptops needing power plug repairs was extremely labor intensive, but I charged a hundred dollars each. The money was desperately needed. My customers were surprised when I would have their computers fixed in just a day or two, apparently my competition would take weeks for that kind of work. Computers with malware or corrupted hard drives would start showing up. I started a $100 flat refurbishment service where I would wipe the hard drive, reinstall XP, download the drivers and install them. Their computer would often run better than when it was new (new computers are often loaded with adware which slows them down, a clean install doesn't have that problem). I also started a free diagnostic service and wouldn't charge anyone for little things (like the guy who somehow moved his power supply switch to 220 volts instead of 110 volts) that only took me a couple of minutes to diagnose and fix. People started coming in from referrals from other people.

A few more computers than in the early pictures
A few more computers than in the early pictures
Took a chance and started building gaming computers using new parts.
Took a chance and started building gaming computers using new parts.
Me at work on a laptop
Me at work on a laptop

Strong Growth

For the next several months or so I was fairly busy running ads on craigslist. I also built a web site that I put all my service rates and current computers for sale. I often linked to the site from craigslist and slowly I seemed to be spending much less time trying to make sales. The number of repairs seemed to double about every two months. I was originally open 12 hours a day from 9 AM to 9 PM every day of the week, but I eventually changed my hours on Sunday to 1 PM - 9 PM. I continued to live in the back of the store the next year, mainly to save money, but also to guard against burglary. I paid my sister back her money before the year was up and I expanded inventory. I even started building high end gaming computers and pre-installing a few games for customer testing (I ran internet to all my computer stations). I started getting a lot of World of Warcraft people that liked the fact that they could play test the computer before buying it.

Around the end of the first year, I broke a hundred repairs in a single month. I was still charging $100 each, with an additional $50 for data recovery where I had worked out a system that would only take me about another hour even if the hard drive was corrupt (I removed it and hooked it up as a slave). I had so much business, that I started paying another homeless guy $10 an hour cash to help me out. I discovered he had a degree in computer science and actually knew a lot more about computers than I did. Unfortunately, he suffered from severe schizophrenia and couldn't hold a normal job. I was use to dealing with people like that from being homeless myself and I understood that he had both strengths and weaknesses.  Near the end I was pulling in over $10,000 on repairs and earning another $1000 profit on sales. My overhead was about $1000, labor cost about $500, and I spent about $1000 for decent fast food to keep everyone happy. I figured I earned around $9000 the last full month we were open, although I spent a lot of that on increasing inventory.

A few months before the end my inventory has greatly improved.
A few months before the end my inventory has greatly improved.
We had a free internet station
We had a free internet station
A computer I built for my own use.
A computer I built for my own use.
Things were definitely improving. I was actually starting to run out of room, allowing me to start being more selective in my inventory.
Things were definitely improving. I was actually starting to run out of room, allowing me to start being more selective in my inventory.

Conclusion

I hope that this hub is of help to anyone out there who is planning to open a computer store. I have included both my mistakes and successes. Obviously, if you want to open your own store, you have to be very good with computers. You not only should be good with computers, but you need to love working with them too, because you will soon be sick of them. The next thing is dedication and a lot of hard work. I started out at 84 hours a week, maybe even more since I often worked late to get a troublesome computer working. The other thing though is knowing that it takes about a full year to ramp up to decent revenue. You should have plans to survive till that point is reached. If I decide to start up another store, I plan to save up enough money to cover the rent for the first six months. This experience has changed my perception about a lot of things. It was a tremendous learning experience and I feel much more confident in trying new things. Last of all, if you do decide to do something like this, I can tell you that the price for success is definitely worth it.

Click here for more advice on how to run a computer repair shop.

Here is a web site about the computer repair business: Technibble

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Comments 20 comments

alvinlopez profile image

alvinlopez 5 years ago from Batangas, Philippines

Hi, very inspirational story. Just like you, 2 weeks ago, i opened a computer repair shop, i can relate to your story because i started lack of financial source after losing my job. I'm still on the stage of frustration because my shop is not yet known to the people. after reading your story, i was inspired. thanks to you. GODBLESS!


Pente profile image

Pente 5 years ago from Planet Earth Author

LOL, LongIslandComputerRepairs. Ok, you got your backlink. Just be sure to enter me into your next Free Laptop Giveaway.


LIComputerRepairs profile image

LIComputerRepairs 5 years ago from 1200 Hempstead Turnpike Uniondale NY 11553

As owner of http://www.longislandcomputerrepairs.com/ - I cannot express how excited I am about the industry. The big companies are losing business to companies like us who not only work harder but also give better prices and service. We offer free inspection, free virus scan and the best rates on all repairs with a FULL 1 year guarantee. It is almost impossible to blow a sale when you have better prices and service. Also, because the big companies have such bad reputations and have been ripping off customers for years the industry is starting to thrive as people seek real computer repair techs not large chain stores. Good Luck to everyone with their business.

If anyone needs help or guidance with internet marketing or any help with Google please feel free to send us questions and if I can help I will. No cost.


maggie  5 years ago

good for you


Pat from Glasgow 5 years ago

Well done mate and all the from Scotland.

Inspirational....


kerby 5 years ago

WHAT A GREAT STORY IM INTO COMPUTER REPAIR MYSELF.BEEN THINKING ABOUT STARTING SOMETHING AT THE FLEA MARKET,I

NEEDED THE INSPIRATION TO PUSH ME INTO DOING IT.BEST

OF LUCK FRIEND


htodd profile image

htodd 5 years ago from United States

Great ,best of luck!


carreramarjoe 5 years ago

nice and inspiring success story..


alexpino profile image

alexpino 5 years ago from Florida, USA

Would love to see your 12' by 12' shack. Is that where you live/work now?

I agree there is a huge gap between homeless and "normal" and I think it should change.


Pente profile image

Pente 5 years ago from Planet Earth Author

Thankyou alexpino. Housing is actually one of my pet peeves. We force people to live in oversize palaces or make them go homeless, there is very little in between.

I recently built a 12' by 12' shack in Hawaii and I am perfectly happy with it.


alexpino profile image

alexpino 5 years ago from Florida, USA

Wow. Amazing that you lived in it majority/whole time. I've always dreamed of starting a biz this way because it removes the $$$ obstacles. But I'm in a business where I do not need a location, like you are doing now.

I agree, we've got too many rules. Not just for preventing new businesses, but here you're pretty much forced to live way over your means. You should look up 'tiny houses' on Google and have a look at Tumbleweed's house designs.


Pente profile image

Pente 5 years ago from Planet Earth Author

Yes, I did. I might have been violating some ordinance, although I think that area was zoned for both residential and business.

However, your comment brings up an interesting point. One of the problems in America is that there are so many regulations and laws that it is preventing a lot of new businesses from getting started.

I can think of a dozen very good business ideas that would be very beneficial for a lot of people but would fail due to the myriad amount of laws.


WissNX01 5 years ago

I am wondering if you lived in the store the whole time. It seems quite remarkable that you were this successful.


Pente profile image

Pente 5 years ago from Planet Earth Author

Thank you for reading. This article has a high view time according to Google analytics, so I know a lot of people have enjoyed it's detailed honesty. Starting a business like this requires a commitment to success. I hope that will carry over into my online income work.


alexpino profile image

alexpino 5 years ago from Florida, USA

This is a great hub I like your honesty. You went through a lot. Even had to camp out in your own store. Good job man. I'm sure you'll do great building an income online. I've been working on that full time since September 2009.


nikitha p profile image

nikitha p 5 years ago from India

Very informative hub thanks for sharing this.


Pente profile image

Pente 5 years ago from Planet Earth Author

Sold the store when I moved to Hawaii and haven't started a new one yet. I am currently trying to earn a living via hubpages and some websites.

Once people realized that I was refurbishing computers, several people started coming by and selling me groups of computers they had picked up from businesses that were upgrading. Occasionally, I would buy a bunch (20-30) from someone who was in the recycling business.

After things get going though, most of your income will be from repairs. I dismantled computers that were obsolete or not working and kept the working parts. I did buy some new parts for inventory and new gaming systems from evertek.com. If you decide to start a store, good luck, and be sure to post a lot on craigslist and other free sites the first few months when you will have lots of free time, but little money and only a few costumers.


hervens profile image

hervens 5 years ago

Wow, Congratulations!

I wish you all the best

Im also thinking about starting my own computer store also. Im just surprised that you were able to get started with only around $3000...

Me for example, I was thinking that I would need at least 20 000 - 30 000$ just to get started.

I have a few questions though:

Do you still get most of the computers you sell from the recycling computer place?

Where do you buy the parts you need to fix the computer, such as power supply, processor, etc... ?

Thanks a lot.


terry 5 years ago

Cheers mate i am currenly in the development stage of my business plan, but already have a small regular customer list through word of mouth only bout 25 people but growin, what i have read has been the kick up the **** i needed after been in a simular situation as yourself, cheers and all the best


karenfreemansmith profile image

karenfreemansmith 5 years ago from Oregon

Very inspiring about starting a new business. I am impressed with the ways you overcame every little problem (and some big ones too) and am sure you will succeed in whatever your next step in life is.

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