Author Topic: Maybe? Naaaahhh. But maybe...  (Read 2777 times)

Felonious Monk/Fignozzle

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Maybe? Naaaahhh. But maybe...
« on: October 18, 2005, 02:32:53 PM »
When I was young, dumb, and full of...well, youthful enthusiasm, I used to really think that it wouldn't be long before I was wealthy and living The American Dream.

I just needed to scout out the landscape of local commerce, identify some gaping deficiency, and it wouldn't be long before I could, based strictly on enthusiasm and vision, infect some venture capitalists with my dream, and once I'd engaged sufficient backing, I would join the ranks of the Moguls.

'bout that time, honey brought me some stupid looking little device with a plus sign on it.  Took me a few moments to process that this incongruous trinket was the indicator of my virility and impending progeny.  So, for the ensuing 20 years, I've been on the treadmill of Corporate America, being a Wage Slave, a corporate mule.

Only now, I'm in some tiny little backwater burg, sort of the star of a bunch of other minor little burgs around the state's big ol' 'vacation destination' lake.  TONS of commercial potential around here.  Lots of money, just has never been any well-organized approach to economic development.

Long story short, there's a real need for both commercial and residential computer support, and not much in the way of COMPETENT businesses meeting that need.  Many professional concerns (doctors, lawyers, insurance/real estate agencies, and the like) contract with companies an hour or more away, who basically come in, charge EXORBITANT rates to set up shop with a small business network, file sharing and web access, and then blow off the local clients except when they can make it worth their while coming down here by selling them a new PC every time they make the trip, charging $2,500-3,000 for a basic workstation (costing maybe five or six hundred bucks).

So, I'm thinking, as I get more and more steady business just from word of mouth and referrals to clean up virii or spyware, adding memory or a CD burner, if it would be worth the jump into a full-time venture.  The kids are in high school, Jr. high, and elem. school, so it's a little daunting to leave a benefit package of medical insurance, 401K, and the like, to be flying solo.

Contacts we've made since moving down here have been very promising, and we'd have a good base of support within church and civic organizations, and it'd just be a matter of making the jump.

Any personal stories, whether good or bad, from those of you who've made a similar move (or wish you had), and the results?  Any advice from the self-employed out there?

Thanks,
Fig

mtnbkr

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« Reply #1 on: October 18, 2005, 04:43:09 PM »
If you make the jump, get service contracts with defined SLAs so both you and your clients know what they're paying for and why.  Also, concentrate on service, not selling hardware.  You want business that keeps you coming back and billable, not selling them a piece of kit now and then.  Try to accumulate all the tech support, minor networking, and security related certifications.  It'll differentiate you from the high school kids that think they can do the same work.  Speaking of which, based on what you describe, you'll be working with small businesses.  They can have as much, if not more, attitude than the big companies.  Also, many might have had their HS sons/daughters/nephews/neices/etc doing IT work for them.  You have to prove why your $$/hour is preferable to the kids' free service.

Chris

Preacherman

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« Reply #2 on: October 18, 2005, 05:01:54 PM »
Figgy, it's a bad time to be setting up a computer support business.  This was my profession for many years, and since changing vocations, I've continued to monitor developments.  Consider:

1.  The entire computer market is changing.  Systems are no longer viewed as stand-alone or networked devices;  they're now component parts of other systems.  Within the next five years, computers will be driving home entertainment systems, refrigerators, domestic appliances, etc.  Each will be as powerful as today's workstations, but completely dedicated to their function - and all will be networked together.  I've recently seen a prototype workstation comprising scanner, fax, telephone, printer, computer screen and keyboard, voice input and processing, workgroup task management, etc., which was all incorporated into something like a drawer unit on a desk.  There were no independent hardware boxes to be seen at all.  The old days of providing support to your computer and/or printer and/or scanner, and so on, are just about over.  With this new stuff, if something breaks, the entire system unit is unplugged and sent away, and a new unit is plugged in in its place.  Actual system support is minimal - just unplug, plug in, and call a support line to configure things.

2.  Software support is also becoming net-centric.  It's now almost unheard of in corporations for software upgrades, installations, etc. to take place at a user's workstation:  instead, everything is pushed out from an administrative "hub" system, over the network.  This means that the old-fashioned support staff, who went around and held users' hands, are like dinosaurs - about to become extinct.

3.  Training, etc. is more and more network-based.  Everything is on the Internet, and users are comfortable enough with WWW navigation and searches that they can find almost everything they need, with a little initial help.  This has the added disadvantage that they often think they know more than they really do...  when you tell them "Your floggletoggle is out of sync with your whatchamacallit", they reply "But this Web site says that my floggletoggle is just fine - it's really an interface problem between my doohickey and my thingumajig!".  It's hard to offer meaningful support to people who think they know what they're talking about...  BTDT!

I don't want to be a wet blanket on your aspirations, but I'd think very, very carefully before taking the plunge.  If you do decide to go for it, make sure you have a backup plan in place in case things don't work out.
Let's put the fun back in dysfunctional!

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Guest

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« Reply #3 on: October 18, 2005, 05:17:25 PM »
Fig,
I cannot offer any help, sorry.

I am watching this thread and paying  attention to all CIS/IT threads - as I being an older returning student am in the midst of these Studies. Primarily Cisco's curriculi.

All sorts of changes are going on. The other night we watched in Real Time a smaller town Police Dept video camera in a elderly ladies  birdhouse, aimed at a park where illicit activity occurs.

Yes I was one of only two student livid about all this...everyone else was of the mindset of "goody the .gov is protecting us".

My goal / dream is to work out of my home in a small rural area...doing something this education will allow me to do.

I shoulda bought a bait shop out in the boonies I am thinking instead.

grampster

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« Reply #4 on: October 18, 2005, 05:31:36 PM »
I am mostly computer illiterate.  But watching the changes over the last couple years I would say a bird in the hand is worth one in the bush in that business.  Keep your day job and do 'puter stuff on the side for fun and xtra cash.
"Never wrestle with a pig.  You get dirty, and besides, the pig likes it."  G.B. Shaw

lee n. field

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« Reply #5 on: October 18, 2005, 05:50:39 PM »
I've  been in the field sind 1991.  It's different when it's a job, then when it's a hobby.  There's a lot of aggrivation:  dealing with Redmondware, seeing the same old crap over and over, answering "Why is my Windows slow?" 30 times a week, routine virus/spyware scouring (which is a cash cow, BTW.  Good for 1 to 3 hours of billable time, easy).

Quote
Many professional concerns (doctors, lawyers, insurance/real estate agencies, and the like) contract with companies an hour or more away, who basically come in, charge EXORBITANT rates to set up shop with a small business network, file sharing and web access, and then blow off the local clients except when they can make it worth their while coming down here by selling them a new PC every time they make the trip, charging $2,500-3,000 for a basic workstation (costing maybe five or six hundred bucks).
 Doctors are (in my experience) cheap!  Cheap cheap cheap!  They'll spend as little on their computers as they can get away with.

What's exorbitant?  Remember, you're not going to be billing out a full 2200 hours in a year.  There's other things you have to pay attention to, besides the cool stuff.  Suppliers and sources.  Accounting -- do you know Peachtree or Quickbooks?  Certifications (gotta get slogging away for the HP Server test. . .)

Quote
So, I'm thinking, as I get more and more steady business just from word of mouth and referrals, cleaning up virii or spyware, adding memory or a CD burner, if it would be worth the jump into a full-time venture.
I've seen a lot of people do that.  Did a bit of it myself, last time I was bettween jobs.  If I'm ever bettween jobs again, I'll push the solo stuff a whole lot harder than I did.  That said, the mortality rate in this business is pretty high.

The best bet for the big bucks is to get in on a niche vertical market.
In thy presence is fulness of joy.
At thy right hand pleasures for evermore.

SalukiFan

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« Reply #6 on: October 18, 2005, 06:14:15 PM »
I've been in business for myself for a bit now and there are pros and cons.  

One of the big pros is being able to mostly make my own schedule.  

One of the biggest cons is that my bills still come regularly but work and payments from clients don't.  

What can I say, it's not for the faint of heart.  I don't have kids myself but I don't know if I would give up regular employment if I did.  The security would be nice to have if I were supporting kids...

Felonious Monk/Fignozzle

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« Reply #7 on: October 18, 2005, 06:24:48 PM »
Wow! Thanks for the solid advice and info.

Where to start?
In my 20's, I was looking for my Road to Riches.  Now, I'd be happy for some of Steve's "simple", along with a steady paycheck (the 'from home' thing sounds ideal--anybody got advice on a cert/avenue that'll lead to a gig like that?).

mtnbkr-- good info re: SLA's & such.  This whole thing got started because I was doing lots of the virus/spyware cleanup for home PC's.  I was at the dentist, and they sort of JUMPED on me when they found out I was an IT geek.  I jumped right back, at what initially looked like my usual one box, one bill spyware fix.  Their network was screwy, hardware outdated and cobbled together, software not secure/already compromised, etc. etc. so it has become much bigger than initially anticipated.

lee n. field, Preach, no wet blanket at all!  That's exactly what I was hoping to hear-- a dose of reality.  It's a whole different ballgame transitioning out of the couple hundred bucks every other weekend as time permits, vs. what I've gotten myself into with the  dental practice.

...by the way, Peter-- you never cease to amaze.  I had no idea this was ALSO something you had done in another chapter in the past!  

...Steve, I'm 100% on board with you on the WFH from Mayberry with a great place to shoot.  Got the latter two; just need an angle on the WFH.

...and finally, grampster, I think you pegged the wisest course of action (you have a habit of doing that, old boy!) when you said: "Keep your day job and do 'puter stuff on the side for fun and xtra cash."

I'm grateful for all of you coots, curmudgeons and comrades-in-arms.
Fig

Preacherman

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« Reply #8 on: October 18, 2005, 06:39:57 PM »
Fig, as an aside, I replied to your e-mail a few days ago.  Did it get to you?
Let's put the fun back in dysfunctional!

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Standing Wolf

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« Reply #9 on: October 18, 2005, 06:45:24 PM »
My brother has been doing what you're thinking about for quite a few years. My impression is that he doesn't make an awful lot of money; conversely, he'd rather barter most of the time, and has never cared a great deal for hard work, anyway.
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garrettwc

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« Reply #10 on: October 18, 2005, 06:49:39 PM »
Fig, you've gotten some good advice already. I can't add much to it other than service is the way to go. Even IBM has dumped their hardware lines to focus on network services.

grampster had the right idea about moonlighting until you have enough steady business to see if it's viable.

Other things to consider:
When you are self employed you pay 100% of the medical insurance.
When you are self employed you pay 100% of the taxes (and monthly or quarterly at that)
When you are self employed you can't call in sick.

Guest

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« Reply #11 on: October 18, 2005, 07:21:13 PM »
Quote
The best bet for the big bucks is to get in on a niche vertical market.
Would you be so kind to define and expand on this please? Smiley


My instructor is cool, smart and has the ability to actually teach.

Bascially Network Admin is what suggests. He has some other areas that fall into that label.

He has been sharing how the IT industry is changing so fast.  Now part of the class are dummies like me. The other part includes folks in the Air Force, Army, retired Army, Blind/ Deaf School ... actually doing Network Admin, have been for awhile, just getting some certs. Others include a few that had "workstation specialist" and are tired of Tier 1 and dealing with matters ...they get yelled at from all sides. Time to move on up for them.

Retired Army guy is one of "us" - a good guy, Pro Gun and all that. We work together on projecst along with the fellow doing Admin for a Blind School. Retired Army fellow Just got his pink slip via email, has a great severance package, wife has a good job...now he needs another one. Seems Alltel  sold / is selling wireless division. This guy has moved around with various jobs since Army Retirement 15 yrs ago. Economy sucks here, then again it always has. Not that is better elsewhere. NC  and GA wants him back, he may end up there again...or AZ or CO, at this time he is not to a point to share.

Fig, kinda like you, "where is what gonna be best down the line?"

Felonious Monk/Fignozzle

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« Reply #12 on: October 19, 2005, 06:47:58 AM »
Preacherman, I checked this morning and your message had been incorrectly filtered into a spam folder (hence the danger of the automated junk mail bots).  I appreciate it and will follow up in the next couple of days.

Steve, I guess I've been in the 'workstation support' mode and need to move up to have any happiness in the field.  Last couple of jobs have paid really well, and they WERE Tier 2/Tier 3 support positions, but still...

Network Admin, Sys Admin, specifically in my case I've had a taste of MS Exchange email administration and loved it in its "pure" form.  Begin to add in Blackberry support, other wireless devices, and in many cases dual-duty job title as "The Email Administrator Except When We Need You To Cover the Network Admin Duties, Too", and you get back to a less fulfilling gig.

Still, if I could just align the resources, motivation, and opportunity, I'd jump all over an MCSE with an Exchange specialty.  In fact, that may be what I need to do to make further progress.

REALLY good conversation, guys, and I appreciate the perspective from all who chime in...

lee n. field

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« Reply #13 on: October 19, 2005, 08:37:34 AM »
Quote
niche vertical market.

Would you be so kind to define and expand on this please? smile
Selling and supporting a specialized (usually expensive) piece of software and possibly related hardware into a small market with few competetors.

An example would be the package that's the biggest money maker for my company -- a school lunch room point of sale package.  It's specialized to just that, and has features you won't find on any usual POS software -- things like support for "free and reduced lunch", reporting features, blah blah blah.  

Stuff like that tends to be expensive, in the multiple thousands of dollars per site.  The software is specialized, and (unlike a lot of software) support is easy to reach and _really_ knows their stuff.

That's where the big bucks is.
In thy presence is fulness of joy.
At thy right hand pleasures for evermore.

Felonious Monk/Fignozzle

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« Reply #14 on: October 19, 2005, 11:54:29 AM »
Aahh, like Dentrix.

The dentist's office computer nightmare I inherited included dental practice management software, that they 1) paid a mint for, and 2) continue to pay a ton for support.  But, when you call the support line, it's like you are old friends.  They are warm, welcoming, knowledgeable, and go to the Nth degree to ensure that every issue that's even indirectly related to their product is 100%.  I spent four hours on the phone with one of their reps one day, and the guy was as nice at the end as he was at the beginning.

These guys REALLY know their stuff, I bet they make good money, and the Dentists in question REALLY pay for the quality.

Niche, vertical market.

Now, if we can just WRITE some software like this...
owning the source code's where it's at if you wanna be in the $$$$.

lee n. field

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« Reply #15 on: October 19, 2005, 12:54:02 PM »
Quote
Aahh, like Dentrix.

The dentist's office computer nightmare I inherited included dental practice management software, that they 1) paid a mint for, and 2) continue to pay a ton for support.  But, when you call the support line, it's like you are old friends.  They are warm, welcoming, knowledgeable, and go to the Nth degree to ensure that every issue that's even indirectly related to their product is 100%.  I spent four hours on the phone with one of their reps one day, and the guy was as nice at the end as he was at the beginning.
Precisely like that.

What's a pisser is if someone has a package like that, decided they want to go cheap, and let's their support contract lapse.  No support from the vendor, sometimes not even a knowledge base you can access, things break when Windows versions change or for whatever reason (causality is a slippery thing when Redmondware is in the mix), you get to figure it out, etc.  I've got a couple lawyer's offices like that, that want to keep Amicus working, but don't want to pay support.  .

There are verticals for all kinds of businesses.  I wouldn't be a bit surprised if there was a gunshop package.
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At thy right hand pleasures for evermore.

Monkeyleg

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« Reply #16 on: October 19, 2005, 01:02:07 PM »
Fig, I have no experience with computer support, but have been self-employed for over eighteen years.

If you're still considering pursuing this, after reading all of the comments above, then I hope you'll consider what I have to say as well.

Cash flow. If you've got people owing you money for more than thirty days, you're going to have problems. If you know that a company is notorious for being slow to pay, either get your money up front or at least get a portion of it.

Time. Until you've "arrived," and you have more work than you can handle, you'll be spending as much time or more selling your service as doing the jobs. Try to allocate as much paperwork and other miscellany for evenings or weekends.

Competition. You say that other companies are charging exorbitant amounts of money for their services. Are you sure? You may get into it and find yourself being underbid by someone you weren't aware of.

Networking (with people, that is). Probably one of the most important selling tools, and one you may or may not like. I hate it, which has caused me problems from time to time. But that time spent at a restaurant with a potential customer, or helping him repair his car, or going shooting with him...that buys a lot of loyalty.

Change. Whether it's change in technology or change in the industry, something's going to change, and you'd better be ready for it. Even a change in employees at one of your client companies can cause you to lose the account to someone else.

Perception. It is, as many often say, reality. Someone can be a bumbling idiot but, if the perception is that he's the greatest, he can still steal work from you. You'll need to develop a perceived expertise that's above the rest.

Your tolerance for risk, and your ability to deal with it. When you go into business for yourself, the odds are already against you from day one. Most new businesses fail. If your lifestyle is slimmed down far enough that you can weather hard times without going under, you'll stand a much better chance. Years back my wife and I had enough income, and enough credit, that we could have bought a house that cost four or five times what we have now. Instead, we bought an $85K fixer-upper, and drove well-used vehicles. I'm glad for that now, or we'd be hurting even worse than we already are.

Motivation. Are you the sort who will plunge ahead without someone looking over you? It's very easy to rationalize taking a day off. Keep it up and, pretty soon, you'll have plenty of days off. Wink

I've had great years, and I've had terrible years, and I can attribute any one of them to one or more of the points above.