Starting My Own Business: Building Computers.

[mjs1217]

Hey all.

I'm considering starting my own business with a friend of mine. We will be building and selling computers made-to-order. This includes high-performance computers, work computers, and everything in-between - all at competetive prices.

However, this will be my first attempt at starting anything even resembling a business. So, does anyone who has done this before have any tips? I know alot about computers, but don't know how to build one. My friend does though, and he'll teach me. In the meantime, I will handle the task of finding customers... But it's not quite time for that yet

So, please share any tips or ideas you have for me!

Thanks,
-mjs


PS: I'm 15, so please keep that in mind when you offer advice as I can't do certain things =/.

[sneakyhacker420]

blazestorm has been doing this for a few of his friends - ordering all the parts and then selling it off for only $100 or so above what the parts cost

only downside to this is that you need alot of extra cash so that you can afford the parts before you sell it to the buyer, otherwise you'll be SOL in this business

[Miscue]

Hey all.

I'm considering starting my own business with a friend of mine. We will be building and selling computers made-to-order. This includes high-performance computers, work computers, and everything in-between - all at competetive prices.

However, this will be my first attempt at starting anything even resembling a business. So, does anyone who has done this before have any tips? I know alot about computers, but don't know how to build one. My friend does though, and he'll teach me. In the meantime, I will handle the task of finding customers... But it's not quite time for that yet

So, please share any tips or ideas you have for me!

Thanks,
-mjs


PS: I'm 15, so please keep that in mind when you offer advice as I can't do certain things =/.

It's a good learning experience. Do it for a while, and then you will learn why you wish you did not.

You'll find out. Hehe.

[SlipknotX556]

Well, all I can say is good luck with your business, I am 16, started mine, making designer headbands and barrel covers, other designer stuff, so far I have made a very good profit, now I already paid for all my expenses and now its pure profit for me, only bad thing about starting a business, is the start up costs, mine were pretty bad.

Once again good luck with it, have fun.

[PyRo]

Don't let people know a 15 year old is assembling there computer, most people won't like that nomatter how experianced you are. :)

Every time a part goes bad, or much more often the customer screws somthing up guess who is going to get blamed and guess who the consumer is going to want to fix it. :)

[Bulldog]

If you decide to go for it, and you need a memory supplier, shoot me a pm.

[mjs1217]

Don't let people know a 15 year old is assembling there computer, most people won't like that nomatter how experianced you are. :)

Every time a part goes bad, or much more often the customer screws somthing up guess who is going to get blamed and guess who the consumer is going to want to fix it. :)

Hahahhaa, yea that's one of the first things that popped into my mind.

The other 2 problems I have are:
1: Money...i'll fix that somehow
2: The WIWFU factor... What If We **** Up (a part breaking or some other problem after we ship the computer).

k, gtg for the night
-mjs

[RamboPreacher]

It's a good learning experience. Do it for a while, and then you will learn why you wish you did not.

You'll find out. Hehe.

exactly. Especially if you intend on supporting what you are selling/building. :) BTDT

[Dryden]

It's a good learning experience. Do it for a while, and then you will learn why you wish you did not.

You'll find out. Hehe.

Ahh yes, the most important things to remember about running a business are also the same reasons why you don't want to run a computer business - customer support. The customer is always right! Once you're fixing more computers than you've actually sold, you'll realize ... well, like Miscue said ... you'll find out.

Seriously though, a few things you have to do are get a tax exemption certificate and employer ID from your state, then contact Microsoft regarding a reseller/vendor ID. You won't get far unless you sell the operating system installed on the computer, not to mention basic office applications - at the very least Works - and you cannot compete unless you can get these very cheap. You'll pay more than the price of the hardware to buy software at retail. You'll need to get enrolled in some sort of volume licensing program through Microsoft, and I would get all this taken care of before you consider anything else. Oh, you'll probably want to retain an accountant too.

Microsoft and the IRS - in that order - are two organizations you don't want to fool with. :)

[Ironmag]

Microsoft and the IRS - in that order - are two organizations you don't want to fool with. :)

Haha, funny but true. Definately try to get the software part down, that's where it can get expensive if not done right. It would also be good if you have some decent amount of preinstallled programs when the computer goes out the door, the regular customer would enjoy that.

[mjs1217]

Ahh yes, the most important things to remember about running a business are also the same reasons why you don't want to run a computer business - customer support. The customer is always right! Once you're fixing more computers than you've actually sold, you'll realize ... well, like Miscue said ... you'll find out.

Seriously though, a few things you have to do are get a tax exemption certificate and employer ID from your state, then contact Microsoft regarding a reseller/vendor ID. You won't get far unless you sell the operating system installed on the computer, not to mention basic office applications - at the very least Works - and you cannot compete unless you can get these very cheap. You'll pay more than the price of the hardware to buy software at retail. You'll need to get enrolled in some sort of volume licensing program through Microsoft, and I would get all this taken care of before you consider anything else. Oh, you'll probably want to retain an accountant too.

Microsoft and the IRS - in that order - are two organizations you don't want to fool with. :)

Yea, software is an issue that I haven't considered yet. But, since the majority of our customers are gonna be high school kids looking for a gaming computer, I dont think I need to set them up with alot of software, just an OS and MSWord, maybe?

[Dryden]

Start with Microsoft's OEM System Builder Program. It's the difference between paying $200 for a copy of XP Home or less than $70. You won't do enough volume to get the kind of < $10 per copy rates a company like Dell gets, but ~$70 is the absolute ceiling for an OEM copy regardless of volume. If you're selling to gamers, you could probably give OpenOffice.org a try.

[Miscue]

Ahh yes, the most important things to remember about running a business are also the same reasons why you don't want to run a computer business - customer support. The customer is always right! Once you're fixing more computers than you've actually sold, you'll realize ... well, like Miscue said ... you'll find out.

Seriously though, a few things you have to do are get a tax exemption certificate and employer ID from your state, then contact Microsoft regarding a reseller/vendor ID. You won't get far unless you sell the operating system installed on the computer, not to mention basic office applications - at the very least Works - and you cannot compete unless you can get these very cheap. You'll pay more than the price of the hardware to buy software at retail. You'll need to get enrolled in some sort of volume licensing program through Microsoft, and I would get all this taken care of before you consider anything else. Oh, you'll probably want to retain an accountant too.

Microsoft and the IRS - in that order - are two organizations you don't want to fool with. :)

Yup, and after you get your tax ID/reseller license... then you need to setup reseller accounts with various vendors.

If you make a sale, you need to have a receipt that basically acts as a written contract - defining what you will and will not do - as far as maintenance/service/warranty/etc.

Be prepared to spend so much time on stuff that you end up working at below minimum wage - or owe money.

[mjs1217]

Yup, and after you get your tax ID/reseller license... then you need to setup reseller accounts with various vendors.

If you make a sale, you need to have a receipt that basically acts as a written contract - defining what you will and will not do - as far as maintenance/service/warranty/etc.

Be prepared to spend so much time on stuff that you end up working at below minimum wage - or owe money.

Well, damn...

Since you make it so appealing, I think i'll just set up a lemonade stand instead.

Thanks, government, for ruining my business before it was even started!


So... Who wants some lemonade? heh

[gibby]

Yeah, I did this same extact thing when I was working from home a few years back: computer sales, networking consultation, and web page design. It's fun at first. For the computers I've built in the past, it works flawlessly before I give it to the new owner. It's funny but after the first week, the new owner always finds a way to break it somehow and the computer stops to work. RING RING RING!!! The time spent teching their new computer was just not worth the small profit I made selling it to them.

Now, I just tech my friends' and family's computers. No more building for other people and if they call and ask me if Dell's are good computers...I always say...GO FOR IT!!

But don't let my experience discourage you in any way. Good luck!