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Thread ID: 124681 2012-05-12 11:08:00 Assistance starting PC build/supply/repair business Tukapa (62) PC World Chat
Post ID Timestamp Content User
1274984 2012-05-13 12:04:00 Wow.

Thanks to everyone for their replies!

Where do I start?

pctek - Interesting point about registering for GST. Funnily enough I've had a couple of clients specifically request GST invoices (one being a small business I set up new systems in) hence my decision to register. I'm aware it is a bit more of a pain in the ass but I only have to submit a return every six months and am looking at investing in CashManager which takes care of all that automatically.

I already advise customers that it is way cheaper to bring the PC to me and leave it with me as I only charge for the time I spend doing the work on it - not while it's running a two hour scan or similar. Generally when I advise them that it will be 2-3 hours at $70 per hour doing it in their home vs 1 hour at $70 doing it at mine they see the reasoning.

Thanks for the supplier details - will get in touch with them this week and see if they will at least give me a run as a cash customer for a while seeing as how I don't have trade references.

As for the time component - it gives me something to do - I have other things going on but there is never anything on TV so that tied in with shift work considerations means I have time available. If I didn't have time to do a job then I would just be straight up with a customer and advise when I would be able to do it and give them the choice. I definitely won't be leaving my main job to grow this - not unless I'm going to make some serious coin and I doubt that very much!!!

I already have the software tools on flashdrive so looks like I'm already set there.

pine-o-cleen - good suggestion with the sheet - I already had something similar in mind. The number of times someone has dropped a PC and run not advising passwords is amazing. Similarly people dropping a laptop off with 10 minutes battery left and no charger! The urgent service charge is a good idea also.

Luckily I haven't struck any of those difficult customers yet as all my work has pretty much been friends, family, workmates or associates of those but I'm prepared to be polite but firm with those that want something for nothing.

Chilling_Silence - I know my limitations and am not going to stuff some people round trying to make a quick buck. I have been looking at $70 (+ GST of course) for my hourly rate and I tend to round my time down to the nearest half hour when billing. Interesting again with the point of view about GST. Maybe my thought process of it being more professional is up the whoopsie - was a reaction to being asked to supply GST invoices for a small business. As for supplier - I have ordered a bit through Ascent, depending on what I'm after - especially good for bulky items with their free freight and their reputation is good. Sometimes though they are just a bit too expensive, Will keep PBTech in mind. I do have a 60GB data cap so haven't gone anywhere near that yet for windows downloads and ISO downloads.

Metla - thanks for the advice - always great to hear pointers from those that have been there and done that. I don't have to pay a mortgage or rent etc on the income from this - in fact I don't really have to do anything but make a profit (ie my wages). My main occupation takes care of all that but I will run through my finances as you outline. It might give me a fright to see how little I will benefit from the amount of work I put in.

inphinity - definitely pocket money. I'm not leaving my main job. Also I know my limitations so would have no hesitation advising someone of that.

Wainui - thanks for your reply. I am comfortable with the GST thing in my head and personally consider the pros to outweigh the cons. As far as warranties go I advise customers of the full warranty for each component and list serial numbers (if applicable) on the invoice. I would expect to shoulder that burden myself if the worst were to happen with a product, rather than make the customer wait for the manufacturer to put it right. Maybe that will turn out to be unrealistic but it's my expectation at the moment.

Once again - thanks everybody for your input. 		Tukapa (62)
1274985 2012-05-13 12:53:00 There was probably $50 in it for me.

And someone probably had it listed on pricespy for less then my buy price with free overnight delivery....

Still, compared to what you can get now for the same price (or cheaper) it's funny how quickly things change 		Agent_24 (57)
1274986 2012-05-13 14:08:00 Wow.

Thanks to everyone for their replies!

Where do I start?

pctek - Interesting point about registering for GST. Funnily enough I've had a couple of clients specifically request GST invoices (one being a small business I set up new systems in) hence my decision to register. I'm aware it is a bit more of a pain in the ass but I only have to submit a return every six months and am looking at investing in CashManager which takes care of all that automatically.

I already advise customers that it is way cheaper to bring the PC to me and leave it with me as I only charge for the time I spend doing the work on it - not while it's running a two hour scan or similar. Generally when I advise them that it will be 2-3 hours at $70 per hour doing it in their home vs 1 hour at $70 doing it at mine they see the reasoning.

Thanks for the supplier details - will get in touch with them this week and see if they will at least give me a run as a cash customer for a while seeing as how I don't have trade references.

As for the time component - it gives me something to do - I have other things going on but there is never anything on TV so that tied in with shift work considerations means I have time available. If I didn't have time to do a job then I would just be straight up with a customer and advise when I would be able to do it and give them the choice. I definitely won't be leaving my main job to grow this - not unless I'm going to make some serious coin and I doubt that very much!!!

I already have the software tools on flashdrive so looks like I'm already set there.

pine-o-cleen - good suggestion with the sheet - I already had something similar in mind. The number of times someone has dropped a PC and run not advising passwords is amazing. Similarly people dropping a laptop off with 10 minutes battery left and no charger! The urgent service charge is a good idea also.

Luckily I haven't struck any of those difficult customers yet as all my work has pretty much been friends, family, workmates or associates of those but I'm prepared to be polite but firm with those that want something for nothing.

Chilling_Silence - I know my limitations and am not going to stuff some people round trying to make a quick buck. I have been looking at $70 (+ GST of course) for my hourly rate and I tend to round my time down to the nearest half hour when billing. Interesting again with the point of view about GST. Maybe my thought process of it being more professional is up the whoopsie - was a reaction to being asked to supply GST invoices for a small business. As for supplier - I have ordered a bit through Ascent, depending on what I'm after - especially good for bulky items with their free freight and their reputation is good. Sometimes though they are just a bit too expensive, Will keep PBTech in mind. I do have a 60GB data cap so haven't gone anywhere near that yet for windows downloads and ISO downloads.

Metla - thanks for the advice - always great to hear pointers from those that have been there and done that. I don't have to pay a mortgage or rent etc on the income from this - in fact I don't really have to do anything but make a profit (ie my wages). My main occupation takes care of all that but I will run through my finances as you outline. It might give me a fright to see how little I will benefit from the amount of work I put in.

inphinity - definitely pocket money. I'm not leaving my main job. Also I know my limitations so would have no hesitation advising someone of that.

Wainui - thanks for your reply. I am comfortable with the GST thing in my head and personally consider the pros to outweigh the cons. As far as warranties go I advise customers of the full warranty for each component and list serial numbers (if applicable) on the invoice. I would expect to shoulder that burden myself if the worst were to happen with a product, rather than make the customer wait for the manufacturer to put it right. Maybe that will turn out to be unrealistic but it's my expectation at the moment.

Once again - thanks everybody for your input.Been keeping an eye on this with some interest, agree with much that has been said by others, but have to say not all of it.

I dont think you are wrong wanting to be more professional and being GST registered, and can I also suggest you dont muck around with spred sheets and what-have-you, do it properly and get a financial package. Talk to an accountant and see what suits them and what suits you. Do as much bookwork as you can, GST, bank recs etc etc and just take your books into your accountant at the end of the financial year to get your end-of-year stuff done with IRD. If you dont get it right, IRD will be down on you like a ton of bricks and they dont play nice - been there.!!

Saying you dont have to do anything but make a profit is a little hopeful, you will have expenses (apart from already mentioned). You need to cover your backside in case either you screw up or some other fault not of your own doing. If you offer consultation and recommend to a client (mostly business) a solution and that solution proves wrong and costs the client money, you could be made liable. If you screw up a business clients pc and causes the business a loss of income as a result of them not being able to do their job, you could be liable. If you are traveling to your home/office with a clients pc and some bugger smacks into you and busts your clients computer, you will be liable. Some businesses wont allow an IT contractor on site without some sort of public liability insurance. So, while you hope you never need it, you need some insurance.
Building new systems or even replacing power supplies requires you to have it electrically certified, while it takes an AC certified sparky about 10 seconds to make sure it is earthed correctly and put a sticker on it, it will still cost you to get it done.

Fuel, research and development (IRD really love that one when I build a new computer for myself, put some latest tech in it and call it r&d :)) etc etc, it all adds up.

inphinity pretty much touched on these points, it is a big step from doing it as a hobby to doing it for a business. I dont want to put you off, just want you to be aware of what you are getting yourself in for.

The best tool is probably the internet for reasearching issues that you dont already know. - You can be sure that if you (your client) has a problem, someone has had it before you and 99.9% of the time, the solution will be on the internet somewhere.
My most used physical tool without doubt is a philips screwdriver.
I dont know of any "must have" diagnostic tools, but some good bench test or stress test software can be useful or burn-in software to check system stability on a new system or if you suspect an issue. You tend to gather up tools as you need them as you go along. (IP scanners, show email account passwords, data recovery tools, etc)

Wholesale suppliers are hessitant signing up new businesses unless its a cash account. What you may be better to do if you dont have Ingram Micro or somebody like that in your town/city is go into a retailer that you know, have used before, and like dealing with etc and talk turkey with them and see if you can buy hardware through them at a better rate - you may be able to get 5% discount or something if they are reasonable and it looks like you are going to put a few dollars through them. Worth a go anyway.
Unless you dont mind ordering over the internet and waiting a few days for parts etc, then you might be able to get a Dove Electronics or Ingram Micro account. Shop around.

Dont be afraid to bump clients who are bad payers etc, you dont need them.

All I can say is go for it if you are serious, do it right, register a little business and enjoy getting paid to do your hobby.

There is no sustitute for hands-on knowledge and experience (repeat, repeat, repeat). You already have a good grasp of things and I wish you the very best of luck. 		Iantech (16386)
1274987 2012-05-13 20:09:00 Been keeping an eye on this with some interest, agree with much that has been said by others, but have to say not all of it.

I dont think you are wrong wanting to be more professional and being GST registered, and can I also suggest you dont muck around with spred sheets and what-have-you, do it properly and get a financial package. Talk to an accountant and see what suits them and what suits you. Do as much bookwork as you can, GST, bank recs etc etc and just take your books into your accountant at the end of the financial year to get your end-of-year stuff done with IRD. If you dont get it right, IRD will be down on you like a ton of bricks and they dont play nice - been there.!!

Saying you dont have to do anything but make a profit is a little hopeful, you will have expenses (apart from already mentioned). You need to cover your backside in case either you screw up or some other fault not of your own doing. If you offer consultation and recommend to a client (mostly business) a solution and that solution proves wrong and costs the client money, you could be made liable. If you screw up a business clients pc and causes the business a loss of income as a result of them not being able to do their job, you could be liable. If you are traveling to your home/office with a clients pc and some bugger smacks into you and busts your clients computer, you will be liable. Some businesses wont allow an IT contractor on site without some sort of public liability insurance. So, while you hope you never need it, you need some insurance.
Building new systems or even replacing power supplies requires you to have it electrically certified, while it takes an AC certified sparky about 10 seconds to make sure it is earthed correctly and put a sticker on it, it will still cost you to get it done.

Fuel, research and development (IRD really love that one when I build a new computer for myself, put some latest tech in it and call it r&d :)) etc etc, it all adds up.

inphinity pretty much touched on these points, it is a big step from doing it as a hobby to doing it for a business. I dont want to put you off, just want you to be aware of what you are getting yourself in for.

The best tool is probably the internet for reasearching issues that you dont already know. - You can be sure that if you (your client) has a problem, someone has had it before you and 99.9% of the time, the solution will be on the internet somewhere.
My most used physical tool without doubt is a philips screwdriver.
I dont know of any "must have" diagnostic tools, but some good bench test or stress test software can be useful or burn-in software to check system stability on a new system or if you suspect an issue. You tend to gather up tools as you need them as you go along. (IP scanners, show email account passwords, data recovery tools, etc)

Wholesale suppliers are hessitant signing up new businesses unless its a cash account. What you may be better to do if you dont have Ingram Micro or somebody like that in your town/city is go into a retailer that you know, have used before, and like dealing with etc and talk turkey with them and see if you can buy hardware through them at a better rate - you may be able to get 5% discount or something if they are reasonable and it looks like you are going to put a few dollars through them. Worth a go anyway.
Unless you dont mind ordering over the internet and waiting a few days for parts etc, then you might be able to get a Dove Electronics or Ingram Micro account. Shop around.

Dont be afraid to bump clients who are bad payers etc, you dont need them.

All I can say is go for it if you are serious, do it right, register a little business and enjoy getting paid to do your hobby.

There is no sustitute for hands-on knowledge and experience (repeat, repeat, repeat). You already have a good grasp of things and I wish you the very best of luck.

Thanks for the good wishes!

I ma currently using the trail version of cashmanager - I used it before when I was treasurer for a community group. They had a spreadsheet set up by an ex treasurer that was an accountant but it was far too much work so I made a condition of me taking on the treasurer role that they bought software. That ended up being cashmanager and it was easy to use so I'm giving it a whirl here.

I'm just squaring away getting an accountant now and plan to do what you suggest - keep my records updated and drop them to the accountant.

I don't intend on doing too much work for small business - apart from the one I have done already I don't think I can provide the time and drop everything support they need to do it justice. I will however check out the insurance angle. I have been keeping a vehicle logbook for work related purposes so know form talking to an accountant that some claims can be made there, as well as some expenses from home as this is based from my home address.

Hadn't considered the electrically certified thing. Is this something all PC shops/suppliers/techs must do? Will have to look into that and would be interested in the point of view and practices from those members who are in or have been in the business.

All of my knowledge has been self taught over the past 15 years and the helpful folk here have played a big part in that knowledge, as has the internet.

Thanks for your comments. 		Tukapa (62)
1274988 2012-05-13 20:17:00 Work out how many hours you can work in a week (without going mad) Then see how much your hourly rate will give you .

Then take off all your projected expenses, Then add a third to your expenses and remove that . Just to cover unexpected outgoings (case in point, A system you sell dies, You have to provide instant replacement to keep your customer happy, yet the supplier wants 2 weeks to look at it and may or may not cover it) then it comes out of your pocket .

Then take 35 percent off your projected income, It never pans out that way, You will do work you can't charge for, People will screw you around, and their will be quiet times .

oh yeah, add your wages and tax into your expenses .
.

Spot on Metla . People don't take into account the expenses .
Even if from home there are expenses .


As for the GST fans, sure you can claim the supplier parts GST and so on . So?
Then you put your markup on it and have to pay! Like I said, it's a revenue gathering exercise for the govt .

Husband gets asked about GST too, he says he's not at the threshold to be registered and they don't care . They still get to claim the bill against their business, just there isn't GST .

And accountants are for business that make loads of money and/or have staff and other complications .

Do you know what they charge??!! Even if you just get them to do the end of year part .

Little part time businesses neither need one nor can afford one .

It's not hard at all, and there is plenty of info out there if you aren't sure what you can claim and what you can't .
Hell, I've been doing it since 1995 . 		pctek (84)
1274989 2012-05-13 21:24:00 If you're going with an accounting package, give Xero a try. It's dead simple, ties in with your bank account, matches invoices with invoices, remembers how to file your regular expenses (The BP station up the road it knows to always file as gas for your car, and your Telecom bill for your Cellphone, it knows is communications or whatever). Saves a *ton* of time, it'd really only take me about 2 mins a week when I was using it to keep everything above board.

Insurance is cheap, but worth having if you want to establish a name and keep it for a while to come... 		Chilling_Silence (9)
1274990 2012-05-13 22:51:00 Thanks for the good wishes!

I ma currently using the trail version of cashmanager - I used it before when I was treasurer for a community group. They had a spreadsheet set up by an ex treasurer that was an accountant but it was far too much work so I made a condition of me taking on the treasurer role that they bought software. That ended up being cashmanager and it was easy to use so I'm giving it a whirl here.

I'm just squaring away getting an accountant now and plan to do what you suggest - keep my records updated and drop them to the accountant.

I don't intend on doing too much work for small business - apart from the one I have done already I don't think I can provide the time and drop everything support they need to do it justice. I will however check out the insurance angle. I have been keeping a vehicle logbook for work related purposes so know form talking to an accountant that some claims can be made there, as well as some expenses from home as this is based from my home address.

Hadn't considered the electrically certified thing. Is this something all PC shops/suppliers/techs must do? Will have to look into that and would be interested in the point of view and practices from those members who are in or have been in the business.

All of my knowledge has been self taught over the past 15 years and the helpful folk here have played a big part in that knowledge, as has the internet.

Thanks for your comments. Keeping a vehicle log book is good, you can claim on a percentage of fuel as well as repairs and maintenance. (if you use your vehicle for work purposes, you need to consider commercial vehicle insurance as most domestic vehicle insurance cover will not cover you) If you work from home, you can claim a percentage of your power, phone and internet access. Power is based on the area you use for your workplace (usually not more than 10%), phone and internet access you need for your work, you can claim most of those expenses. If you have a home office (spare room for example) that you use, that can be easier to work things out, but it works like this: Work out how many square metres of building you have (includes garages, out houses, sheds etc), for example 180 square metres, work out how much your work area is for example a spare single room (4x3 metres) and thats how much you can claim - about 6-7 %, so bugger all. You can also claim a percentage of any house repairs and maintenance, rates, mortgage interest etc. But it all helps at the end of the year. Keep stock of all you buy (tools etc) for your job, depreciation is handy to get back as well :)

Other things to look out for is if you pay yourself a wage, you must also (as an employer) pay PAYE (you may also have to make Kiwisaver deductions and Kiwisaver Employer deductions), you will also have employer ACC. Get the feeling you are getting hit twice being an employer and employee? You're right, you are.

Without looking my insurance policies up, it costs me around $2,500 per annum for commercial vehicle, material damage (up to about $20,000), professional Indemnity(covered up to $1,000,000). (and hate paying every freakin penny of it). 		Iantech (16386)
1274991 2012-05-14 01:17:00 I charge out from $60 to $75 depending on the customer and type of vehicle. Foden, ERF and American trucks even more. prefect (6291)
1274992 2012-05-14 11:24:00 what are the must have diagnostic tools?
A bootable CD or USB stick with Linux and anti-virus on it can be very useful. Caine Live CD even better.

any good supplier suggestions (atm I just use the cheapest reputable supplier)?
I have found Arche to be very good. In business the cheapo outfits just aren't worth it.

any pointers over the accountancy side of things?
GNUCash is a free open source program that works pretty well. As PCTech says don't get involved with GST unless you really have to. The threshold is $60,000 now.
Those asking for a GST invoice really just want an invoice and will be happy if you aren't charging GST.

Good luck.:thumbs: 		mikebartnz (21)
1274993 2012-05-14 21:12:00 Those asking for a GST invoice really just want an invoice and will be happy if you aren't charging GST. Not if they are a small business or GST registered. They know they have to pay it, so why not try and claim it. Being able to claim $200-$300 back on a computer system for example makes it alot more affordable for some small businesses. Iantech (16386)
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