Computer Repair Services Working Capital

Starting your own computer repair company can be a very profitable venture these days. Most people prefer to buy cheap PCs, and those with expensive machines generally have them repaired instead of replaced when they start to malfunction.

However, you will most certainly need some working capital, especially when you plan to expand your services.

When Do You Need Computer Repair Services Working Capital

You’ll need a place of business, and of course each worker will need a set of tools and basic equipment, especially when they go to the home or office of customers to fix their computers. Aside from your usual screwdrivers, you’ll need testing equipment for motherboards, power supply units, and cables. You may also want to bring along spare parts of the most commonly malfunctioning PC parts so you don’t have to waste time going to a retail store to get the parts you need.

Also remember that your computer repair services business will require some form of marketing, just like any business. This may mean distributing fliers in your neighborhoods. It also means you will need to run your own website where you can post your fees and explain the services you offer.

Once you expand your services, you’ll need even more working capital. Perhaps you have lots of customers and now you need more employees to handle the workload. Each one will require tools and equipment, and perhaps transportation money as well. You’ll need to make sure that each technician is properly trained and compensated as well.

As a computer repair service, your focus may be on a wide variety of gadgets, including laptops, tablets, and smartphones. This will require intensive training for your employees, and more tools and spare parts. All these will require working capital too.

Getting the Working Capital You Need

So where should you go to get working capital? Ideally, you need to save up, and perhaps you can ask family and friends to pitch in with their investments. Banks may not always be the right option if you need working capital for your computer repair services.

Here are some other ideas:

  • You can apply for capital loans from your local credit union.
  • You can get a merchant cash advance against the fees you get through credit card payments. For example, you can get a cash advance for your working capital, and you can pay 12% of your daily fees to the lender until the loan and the interest rate is paid. This method of loan repayment offers you a cushion as you won’t have to pay as much when business is slow.
  • You can also check if you can get some form of inventory financing. You can then buy cables and hardware for much less than what you pay in retail stores, and then you can charge your customers just a little bit more (but still less than retail prices) when you replace malfunctioning computer parts.

It can be very easy to succeed in this type of business, especially when you avoid all the common errors. But you can stall your growth if you don’t have adequate working capital. Make sure have enough money to cover your operational expenses, and the profits will keep coming in.