How to Start a Tech Support Business

Part 1 - How to start a Tech Support business - Background

Computers are a standard part of every household and are the primary tool used by a majority of today’s businesses. Most of us, however, have little to no knowledge when it comes to fixing these gadgets when an issue arises. Tech support companies provide support for consumers on an as-needed basis. Both small and large organizations hire tech support companies to provide ongoing maintenance as part of their preventative maintenance strategy, in addition to handling any current obstacles. Services include: installation and maintenance of equipment, software installation, system networking, system auditing, troubleshooting and repair, and training. With the right technical background and equipment, many issues can be solved remotely, eliminating travel time and reducing the overall time it takes to complete the repair.

You may also be interested in additional online business ideas.

Our guide is in 3 parts:

• Part 1 - How to start a Tech Support business - Background
• Part 2 - Our planner tool to see if this idea is the right fit for you
• Part 3 - Action plan to get started

What are the costs involved in opening a tech support business?

Initial investment in this line of business is fairly minimal. You will need the software and hardware required to operate your business, including a high performance computer and at least one monitor. High-speed Internet and a decided phone line should also be budgeted for. If you plan to make house calls, make sure you have reliable transportation. A website and a sound marketing strategy, including online and printed material, should also be a part of your initial investment. General liability business insurance will set you back between $300 to $1500 per year, depending upon the specifics of your company. Experienced professionals recommend budgeting for $12,000 to $28,000, with an additional $10,000 if you decide to franchise.

What are the ongoing expenses for a tech support business?

Much like your start-up costs, ongoing expenses are fairly minimal. Your largest expense, aside from payroll costs, will be continuing education. It is critical, however, that you keep your skills current, so do not try to use this as a way to trim the budget. Additionally, you will want to invest in websites such as Microsoft’s Experts Exchange, where you can ask for assistance when you run into a roadblock. Fees will set you back approximately $99 annually. Travel expenses, insurance, website maintenance, and business insurance should also be budgeted for.

Who is the target market?

New business owners are cautioned against defining their target market as “anyone that has a computer issue.” This is too broad. Define your ideal customer based on your skills and experience, as well as what is needed in your area. Since residential clients are often on a tighter budget, consider targeting small businesses. Many tech support business owners have found success focusing on remote PC support.

How does a tech support business make money?

Tech support companies generate revenue from the services they offer, including management of servers, computers, and networks. Clients are billed by the hour.

How much can you charge customers?

Hourly rates vary based on region and services provided. The national average is $100 per hour, with rates going as high as $160. It is standard to charge an additional fee for holiday, after-hours, and emergency assignments.

How much profit can a tech support business make?

If you are the sole employee and plan to work fifty weeks out of the year, your business will draw in $150,000 per year with just twenty hours of work per week. When determining your hourly rate, be sure to factor in ongoing expenses.

How can you make your business more profitable?

As previously mentioned, gaining additional certification stands to significantly increase your business’ profits, as does hiring team members with varying skills and experience. If you possess strong communication skills and are well-versed on the subject, offering training and basic computer classes could be a great way to increase your enterprise’s profits.

Day-to-Day and Growth

What happens during a typical day at a tech support business?

Your days will largely be spent troubleshooting and fixing your client’s computer and software issues. The specifics of what this entails vary, depending upon the services you offer. If your work is done on-site, part of each day will be spent traveling from site to site. Additionally, you will need to spend five to ten hours each week networking and marketing and taking care of any other administrative duties that require your attention. This is an ever-evolving industry, so it is also critical that you remain abreast of the latest trends and regularly add to your arsenal of certifications.

What are some skills and experiences that will help you build a successful tech support business?

In this industry, professional training and certification is critical to your success. You must be able to work with a variety of systems and do so quickly and efficiently. A+ certification and Network + certification are both highly recommended. Having strong computer skills, however, is only part of the equation. You must be able to communicate with clients and possess the interpersonal and leadership skills required to network, market, and manage a business. If this is not a part of your skill set, it is recommended that you attend business and/or marketing classes at your local community college or hire a professional to assist you.

What is the growth potential for a tech support business?

Recent reports reveal that the computer services industry generates more than $47 billion annually. The employees you hire and your team’s education and background are, ultimately, what will define your organization’s long-term success.

What are some insider tips for jump starting a tech support business?

Since this is a recession-proof industry where there will always be a need, it is recommended that you carefully map out your business strategy. Those who fail to do so often dissolve their business within the first year. Experienced tech support entrepreneurs offer the following advice:

• Clearly define your workflow and stick to it with each client.

• Use a time tracker to ensure you are billing for the correct number of hours. Failing to do so could result in lost money.

• Be confident in the recommendations you make to clients. While there will be times where your suggestions are met with resistance, it’s important to keep in mind that you are the expert. Work with customers who value your hard work and professional experience.

• Clearly define your hours. Make yourself available during the hours your target market would most require your services.

• Make sure you draw up a contract for each client and make sure it has a strong indemnification clause. Work with a lawyer when drawing up your contract.

• Get as much certification as possible.

• Have a sound system for generating invoices and make payment for services as painless as possible for your customers. Make sure your clients understand when payment is expected.

How and when to build a team

For many, an attorney and bookkeeper are a critical part of their team. When it is time to start building, carefully consider each candidate. Hire staff that is well-trained, has worked in the industry, and possesses the education required to complete the work. Hiring staff that is certified in areas that you are not is also a good strategy, as it expands the pool of customers you can service.

Part 2 - Is a Tech Support business the right fit for you?

Part 3 - Action plan to launch your Tech Support business in 90 days