Startup funding for Computer Shop

rsauersrsauers subscriber Posts: 1
edited January 2011 in Startup Funding
I have been researching the possibility of opening a computer shop in Hagerstown, MD but need funding for startup.  I have been working with computers for some time now all the way from small computer shops up to managing servers for the government.  I currently reside in Arizona but am trying to move back to the east coast.  My fiancee and daughter are already there and I have been searching for a job.  It has always been a dream of mine to open a computer shop and I think that area is perfect for one as there is no retail based computer shop in that area.
 
The reason I am interested in the area is that within 30 minutes of Hagerstown there resides 100,000 or more people which could create a great market for new PCs, PC repair, and mobile service.  I have been speaking with a commercial realtor in Hagerstown and the average price for rental is pretty inexpensive (I should know more later this week).  When speaking with the realtor I stressed over and over again it would need to be in a location which has high traffic and is highly viewable as most computer shops fail because they are usually tucked away pretty well.
 
I am looking for guidance on obtaining $50,000 (maximum) for initial startup which would allow for retail space to be obtained, stock purchased, store setup and servers/PCs built for in store use.  Any advice would be appreciated.

Comments

  • robertjrobertj Tampa Bay, Floridasubscriber Posts: 0 Member
    You don`t mention one, so first of all, I`d create a basic financial statement.
       Step 2 - make a list of your specific startup expenses.   
    If the results of these steps define a feasible business - then:
     
    Step 3, before you leave your current job (if you haven`t already) - I`d explore the possibilities for some type of debt funding to cover your startup costs.
     
     
  • rsauersrsauers subscriber Posts: 1
    Thanks for the advice.  I purchased a business plan writing software last night and spoke with out Small Business Advisor at work today.  I am going to work on a business plan and get some more information together about startup costs (servers, financial management software, ect.). 
    I think my best bet to obtain any type of financing (if going with a loan) would be something which involved the SBA since my credit is sub par. 
     
    Is there anywhere to obtain statistics which could be used in a business plan which would help with showing the profitability of this business?  Also, what would I be looking for?  I know the potential market size is one (contained in my first post). 
  • robertjrobertj Tampa Bay, Floridasubscriber Posts: 0 Member
    rsauers,
    Good Going! 
    Before I went hunting for a lot of statistics - I`d put down some numbers and the related assumptions.
    For example - what are your assumptions for
        -your average sale
       - average customer value (commonly called LTV- lifetime customer value)
     
    Work up a sound estimate of your startup costs.
     
    I`d put these numbers together before I started deciding what type of capital to seek and where to go for it.
     
    Just curious - which software package did you choose?
    robertj10/23/2008 1:29 PM
  • rsauersrsauers subscriber Posts: 1
    Business Plan Pro.  As for the LTZ, would that be a yearly estimate and for average sale would that include services or strictly selling product?
     
    Today I have been working on getting all the startup costs together but I can definitely go back and remove some of the stuff which I put into the spreadsheet.  I was going all out on trying to think of everything needed and probably have more than what is necessary computer wise (servers and such) to start out with.  I am trying to undercut myself as much as possible and over estimate everything else as much as possible to see if I still come out on top with profits.  So far so good.
     
    I am going to talk with a gentleman from a company called Source on Saturday.  They are pretty much advisors on starting a business.  I want to get as much input from as many people as possible so I can take the ball and run with it.  It`s tough to think of everything and then decide what is and is not needed right away.
  • rsauersrsauers subscriber Posts: 1
    Hello Mr. Thomas,
     
    I have sent you an e-mail about your inquiry.
     
    Thanks,
    Randy
  • KimberlyJonesKimberlyJones subscriber Posts: 0
    If I were to create a business plan along with the expenses needed to run the business. I would add up all costs like rent of the store, salary, bills etc and compare it against the sales numbers and profits from services and sales. Find information on the average sales numbers. Also a lot of people do not consider the interest you will have to pay on loan you take for the start up.
    All the best
    Kimberly
    canon drivers
  • SandraFSandraF subscriber Posts: 0
    Well, of course, every business start-up is a certain risk, though, there is no success without risk, so, it's very important to try. Besides, success depends not on the luck but on the proper strategy and approach to business. If you really understand what you do and you are confident in your actions, then you will reach the desired results. So, don't be afraid and go ahead.
  • taat_pringisttaat_pringist subscriber Posts: 0
    Good day,
    For a start-up entrepreneur, there is no need to hurry with the purchase of a business plan software. These days, that stuff has moved on-line and is free, at least in most cases. We use iplanner.net for coaching and business plan writing.
  • KimberlyJonesKimberlyJones subscriber Posts: 0
    One idea I have always thought should work for a computer shop is being a wholesale computer software and/or hardware distributor. There are a lot of shops around that sell stuff at higher prices and because there is fierce competition in this business price benefits directly to customers would more than often have people buying from you.
    Kimberly


    wholesale business software
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