Starting A Computer Repair Business
1. Computer Repair Business
The popularity of computers has grown quickly from being a luxury available to the aristocrats or technologically crazy people to a necessity required for most professional and academic work, especially in the COVID-19 times.
Given the huge upside in the growth of the online education business as well as a favourable response to the work from home culture, computers are here to stay, and the sales are surely thriving. We have tried to provide an insight into how to start a PC repair business that would be useful as preliminary information for a person looking to start in this field.
2. Steps for Starting a Computer Repair Shop
1- Obtaining a business license
The Shop and Establishment Act is the regulatory framework that enlists the right of employees in an organised sector and regulates the condition of work. The owner of any shop or commercial establishment needs to apply for a Shop and Establishment License within 30 days to the Chief Inspector. They can also apply for the license by applying to their respective state. Thus, the foremost requirement to set up a computer repair business in India is to get it registered as a shop under this Act.
2. Minimal investments are an advantage
Minimal basic start-up costs are a huge advantage in any business, as they save the business from liabilities early on in its life cycle. Thus, it is always recommended that a computer repair shop business owner keeps the starting-up costs as low as possible so that they can fund the business using their savings and do not require a loan.
Not requiring a loan also saves the owner from the stress that arises from having to maintain a minimum income every month to pay the EMIs associated with the loan. The owner can take a loan later on if the business reaches a stage where profits are consistent and the computer repair shop business can be expanded. A rough estimate of the investments associated with starting a computer repair service in India is illustrated below:
Furniture – Around Rs. 30,000
Salary provided to employees – Depending upon the city in which the business is to be set up, salaries that need to be provided to a skilled computer technician can range from anywhere between Rs. 15,000 to Rs. 30,000. Employees in metropolitan cities would typically command a higher salary due to higher costs of living associated with such places.
A business with 2 technicians can set the owner back by Rs. 30,000 to 60,000 every month. Options can be explored to manage the same more efficiently. The owner can think of providing a minimum guaranteed income to their technicians, say a value of Rs. 20,000 if the business is located in a metropolitan city. Further, incentives can be provided based on the number of successful repairs done by the worker. This would reduce the fixed operating costs.
Tools –A PC repair service requires a variety of software and hardware tools such as anti-spyware tools, ESD (Electrostatic Discharge) tools, diagnostic tools, data-recovery software etc.
The total costs of these PC repair tools can vary from Rs. 20,000 to Rs. 1,00,000, depending on the number and quality of tools used. In the initial days of running the business, the owner can do with lesser available spare parts and order them as per the requirement of the customer. Through this approach, the owner will have to incur the cost of a tool only when they have a customer who would be paying for the service provided. This approach, however, may cause the owner to lose out on certain customers who are expecting a quick computer repair service.
Rent (assuming the shop is rented) -
The rent associated with running the computer repair shop is one of the major fixed costs that the business owner has to incur every month, but varies based on the location of the business and area of the shop. The rent associated with a 400 sq. ft. shop located in the prime of a non-metropolitan city is typically around Rs. 20,000-25,000; while the same rises to Rs. 50,000-60,000 for a shop in the prime area of a metropolitan city.
While setting up a shop in the prime area of a city is a good idea to have a large clientele, a repair shop can also be set up in proximity to IT parks (if there are any in the city) to cater to the IT professionals of the city.
3. Look for possible collaborations
Though a computer repair business is not a dependent business, collaborations with computer retailers, especially big showrooms that generate high sales, can add tremendous value. Formal or informal contracts can be initiated with these showrooms wherein the computer repair business would take up all the repair operations of the PCs sold in the showroom. Informally, promoting a computer repair business through the salesmen that work in such showrooms can go a long way in adding a new set of customers to the business.
4. Gather important certifications
While certification isn’t necessary to run a computer repair business in India, certain certifications add value to the business owner and employees. Besides enhancing capabilities, they can also be proof that the business has the required expertise to handle complex computer repair problems and provide a competitive advantage to the owner.
Some examples of such certifications include CompTIA A+ Technician, Microsoft Certified Systems Engineer (MCSE), courses in computer hardware by The Government Of India, etc.
5. Provide home services
While working professionals are a part of the market for a computer service business, the major chunk of their customers are families using a personal computer. The problems faced by these customers are often of an easier level than those faced by a working professional, and thus they prefer to get the issue solved at home. Elementary issues such as Wi-Fi connectivity problems, issues with peripherals such as printers, routers, etc. should be tackled at the customer’s home by the business owner or their employees. This would result in better word-of-mouth publicity for the computer service business.
6. Explore the possibilities of being an authorised repair centre
Most computer companies have their authorised repair centres, a certification claiming that the company has verified the quality control and certifications of the centre and they have given them the authority to repair machines made by the computer company. Being an authorised repair centre acts as a moat for the computer repair business as the fact that they are certified by the company instils a sense of trust among users of the company’s devices.
For instance, a person using a top-end HP computer would like to get it serviced/ repaired from an authorised repair centre where he can claim the company’s warranty and is assured of the quality of parts, in case there is a need for replacement.
7. Innovate and explore frugal brands
A computer repair service owner needs to cater to a wide range of audiences. The business owner would want to keep multiple brands of the same spares so that they can gain a solid footing in both the premium as well as entry-level markets.
Being able to produce the same quality while costing less to the customer is a definite moat for the business.
8. Perform a competitive analysis
Competitive analysis is a necessity before starting in any field. The computer repair service business owner should look at what products their competitors are offering, the quality control used by them, and the brands they prefer to buy their software and hardware tools. Research into this would help the owner identify the key strengths and weaknesses of their competitors, which can be capitalised and enhancements can be incorporated into the reader’s business.
Keeping a methodical approach while starting in any field is always recommended. The insights provided in this article should help the reader navigate through starting a computer repair business in India and script a success story in this evergreen and constantly growing domain.
