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Sunday, February 03, 2008

Computer Business Opportunities: Provide Services to Other Businesses

If you want to seize more computer business opportunities, you have to start thinking about providing services to businesses rather than just “consumers.”

Customers that think in terms of retail stores and prices will not need to take your computer business opportunities as an IT services firm. This means, they will not want to sign onto extended services. However, businesses will be interested in this proposition. If your goal is to produce $200,000 annually in pure services revenue, you have a couple choices:

A. Offer business to consumer service (B2C). A person taking these types of computer business opportunities might spend about $250 per year (or a product margin) at your shop. This money will typically go towards a hard drive upgrade, a repair, a Wi-Fi installation or running a Cat 5 cable in a home office. You will need a lot of customers at $250 each to get to that goal of $200,000. In fact, you’ll need 800.

If you are just selling products and don’t really offer after-sale support, the customer volume might appear to be easy to tackle with just a small staff. However, retail customers with these types of computer business opportunities will need to be guided very closely through every process. And the cost of advertising, promotional and marketing dollars to get 800 customers interested will be sizable.

In terms of labor costs, you will need a lot of technicians and system engineers to offer appropriate “free” or “paid” support to customers, with hourly rates being on the very low side.

B. Offer services to business customers (B2B). These clients will commit to spending approximately $1,000 per month every month, adding up to $12,000 annually PER customer.

If you do the math, you can see that these types of computer business opportunities are ideal in comparison to B2C work. You will only need about 16 or 17 of these customers to get to your goal, which means you can manage the task with just one or two high-level technical consultants.

When a business is spending $12,000 annually, it will not be based on the transaction or the one-shot deal. When a business makes a commitment to spend $1,000 annually, that’s a real, bona fide client! And you will have less non-billable time.

Option B, that B2B service, is really your best bet for grabbing great computer business opportunities.

Added By: Joshua Feinberg