New Start Up Advice

[ScottCD]

Hi All!

I've recently decided to create my own company, I've always wanted to work for myself and have dabbled a bit in the past. This will be run alongside my current job and hopefully can get some traction and eventually make the switch to full time.

I'm looking for a bit of advice on generally setting up and if there is anything I'm missing.

The business is going to be repairing circuit boards that are damaged during manufacture/assembly but I am also hoping to pick up some assembly work also. There is an industry standard (IPC) for repair and rework of printed circuit boards which I have done the course for as well as for assembling.

These damaged circuits can be worth thousands of pounds but the requirement to keep someone trained and have the necessary tools can be too much for the companies who produce them (I have seen 'scrap bins' of circuit boards that people keep.

There are several other companies offering a similar service which is good and bad (good meaning there is a need for this service but bad as there is competition) I am looking to bring in a lower cost solution with maximum flexibility for our customers.

Work location will be from my basement or garage as both have power and lighting.

My list of things to do is currently:

• Register the company with companies house (done)
• Create a website (created but not designed/populated)
• Register email address (done)
• Register business bank
• Complete business plan
• Source basic equipment (initial budget £1000)
• Create business cards
• Market research for pricing

My full time job is ultra flexible and is within the industry so I can meet potential customers that way, in fact I spoke to my boss earlier who fully supports me and even offered to get me a free bit of advertising in an industry magazine we currently use and contacting our existing customers etc.

I can see leads being gained more from industry specific media and face to face interactions, the website will be mainly a shop front for potential customers to visit and get contact info/see examples of work.

I also have 6 - 7 contacts in the industry, some of which are owners of small businesses that I'm going to arrange meetings with for some friendly advice and potentially some custom.

Anyway, that is the overview for now - any feedback/advice is welcome as I'm obviously new to this.

Scott.

 

[Nochexman]

Welcome to the forum, Scott, and good luck with the venture.

The key to your success, from what you have written, is that list of 6/7 contacts. If you can get one or more of those to pass you some work, you have a great chance of success. Think about how you are going to approach them as your priority.

Best of luck.

 

[billmccallum1957]

Don't (please, please, please) Don't start by competing on price, its one of the biggest mistakes by new start ups, compete on quality of work and quality of service, but pitch your price to match the industry standard.

If a competitor decides to start a price war and you have already pitched low, you will quickly lose your margin, if not your shirt.

 

[ScottCD]

Welcome to the forum, Scott, and good luck with the venture.

The key to your success, from what you have written, is that list of 6/7 contacts. If you can get one or more of those to pass you some work, you have a great chance of success. Think about how you are going to approach them as your priority.

Best of luck.

Thank you.

yes I agree those meetings are going to be critical. I want to make sure the website is done as well as business cards etc and everything is in place so they can see I'm taking it seriously, if I can score some work out of those initial meetings that would be fantastic.

I can probably arrange more similar meetings with customers through my current job and my boss has no problem with it.

Gaining customers is my biggest worry!

Don't (please, please, please) Don't start by competing on price, its one of the biggest mistakes by new start ups, compete on quality of work and quality of service, but pitch your price to match the industry standard.

If a competitor decides to start a price war and you have already pitched low, you will quickly lose your margin, if not your shirt.

Thank you for that, I hadn't considered it and thought due to the fact I will be such a small operation then price would be my only angle.

Very good advice thank you!

 

[DanBullBranding]

Hi Scott,

Sounds like you're already driving on the right road.

Good luck!

Dan

 

[ISL Recruitment]

I do understand that you should always compete on quality - but if you're entering a competitive market place price is going to be an issue. Worth remembering that a lot of people will be once only customers, so while stable pricing is important you will have room to creep up later...

 

[billmccallum1957]

I do understand that you should always compete on quality - but if you're entering a competitive market place price is going to be an issue. Worth remembering that a lot of people will be once only customers, so while stable pricing is important you will have room to creep up later...

Probably the worst piece of advice I've seen on the forum, "a lot of people will be once only customers". Did you even read the OP's post?

The OP is going to be in a pretty niche market and its likely that most of his business will come returning customers, who will expect a first class service, the provider who can turn it round quickly and professionally will have a good foothold in the market, so why start with lower prices?

 

[ScottCD]

Hi Scott,

Sounds like you're already driving on the right road.

Good luck!

Dan

Thank you! It's nice to know that no-one has gone "oh my god, you are doing everything wrong!"

Probably the worst piece of advice I've seen on the forum, "a lot of people will be once only customers". Did you even read the OP's post?

The OP is going to be in a pretty niche market and its likely that most of his business will come returning customers, who will expect a first class service, the provider who can turn it round quickly and professionally will have a good foothold in the market, so why start with lower prices?

This is true, the industry is quite small and close knit really, everybody seems to know each other and it's not uncommon for people to talk among themselves for recommendation of products and services.

 

[webgeek]

Add repairing XBOX one wireless controllers to your list (possibly with some mod-chip addons) and you'll retire a gazillionaire. Those friggin wireless controller jacks that don't make good connection with headsets and the bumpers that break off all the time - you'll be rich!!!

 

[ScottCD]

Add repairing XBOX one wireless controllers to your list (possibly with some mod-chip addons) and you'll retire a gazillionaire. Those friggin wireless controller jacks that don't make good connection with headsets and the bumpers that break off all the time - you'll be rich!!!

That's actually a valid plan and I had thought about to perhaps generate some local business but I didn't want to spread myself too thin, I hadn't thought of the controllers specifically but more the era of red ring xboxs but it's a valid point. also iPhone problems (lock button replacement, home button replacement and cracked screen replacement) as these are all common problems.

There are tons of places offering services for screen repair etc though I think so not sure how viable it is.

 

[webgeek]

While you're at it, come up with an easy to install, configure and use 'lag switch'.

There's soo many player vs player combat games in the world of online gaming in which the ability to add latency for a second or two and then turn it back to normal - you'd be astounded at the demand and lack of availability.

 

[ScottCD]

While you're at it, come up with an easy to install, configure and use 'lag switch'.

There's soo many player vs player combat games in the world of online gaming in which the ability to add latency for a second or two and then turn it back to normal - you'd be astounded at the demand and lack of availability.

I could easily make a lag switch.

How much would you pay for one?

 

[webgeek]

The ones I've seen on eBay are crap and sell for 25 quid. That gives you an idea of the market price for cheap and cheerful.

 

[Root 66 Woodshop]

hmm... a lag switch...

Choice of paying £25 quid... or

getting married to someone that doesn't understand that the more wi-fi items and computers, TV's etc you add to your router the laggier it gets... £20,000

The only real bonus of the latter is that I now arrive home and tea is ready on the table

 

[Pish_Pash]

Add repairing XBOX one wireless controllers to your list (possibly with some mod-chip addons) and you'll retire a gazillionaire. Those friggin wireless controller jacks that don't make good connection with headsets and the bumpers that break off all the time - you'll be rich!!!

Funny you should say that...one of my lad's Xbox controllers went ... (the joystick was faulty, resulting in 'creeping' pointer with nothing being touched)...ordered/fitted one from Ebay for about £2.50 - job done.....it transpires thos Xbox controllers are always failing - add it to the list!

 

[ScottCD]

Funny you should say that...one of my lad's Xbox controllers went ... (the joystick was faulty, resulting in 'creeping' pointer with nothing being touched)...ordered/fitted one from Ebay for about £2.50 - job done.....it transpires thos Xbox controllers are always failing - add it to the list!

It's actually an excellent idea, my controller had the same problem and a quick google just revealed a LOT of people having the same problem and being angry that they can't solve it.

There are a few sites that offer repairs but none of them have pricing and they all looked a bit amateur.

Is it just me that is easily put off by having to get a quote rather than being able to just pay for what you want on the site?

 

[nailpeter]

My list of things to do is currently:

I suggest you add one more to step, It's Finance management. Every business need their finance, budget, Expense, Accounting, income very well. Now are day so many accounting software available in market as your requirement. use accounting software and track your finance on your finger.

 

[Root 66 Woodshop]

How could you justify a specific price for such a repair to a controller... that you can buy online from as little as £10.00

If a part costs £2.50 what would you charge to repair - £5.00 give yourself £2.50 for the pleasure of the repair... which would then, in essence cause a domino effect of potential issues...

such as Mr Nobby...

"Hi, you fixed my Son's controller last week for £5.00 - it's gone again! - What are you going to do about it?

Mrs noidea

Hi You fixed my Son's controller last week for £5.00 - it's gone again! what are you going to do about it?

Let's say for instance your courier cost is then £5.00 your charging almost the cost of a new one to repair a fault that is always going to be there - because it's a known fault...

Surely it would be more productive to purchase 1000's of controllers at £5.00 and sell on for £10.00 + delivery. with a 12 month warranty.

Let me put it out there by saying your only competition is yourself... don't undercut the opposition, your niche market enables you to charge the "going rate". That alone should be able to sustain your company's growth.

 

[ScottCD]

How could you justify a specific price for such a repair to a controller... that you can buy online from as little as £10.00

If a part costs £2.50 what would you charge to repair - £5.00 give yourself £2.50 for the pleasure of the repair... which would then, in essence cause a domino effect of potential issues...

such as Mr Nobby...

"Hi, you fixed my Son's controller last week for £5.00 - it's gone again! - What are you going to do about it?

Mrs noidea

Hi You fixed my Son's controller last week for £5.00 - it's gone again! what are you going to do about it?

Let's say for instance your courier cost is then £5.00 your charging almost the cost of a new one to repair a fault that is always going to be there - because it's a known fault...

Surely it would be more productive to purchase 1000's of controllers at £5.00 and sell on for £10.00 + delivery. with a 12 month warranty.

Let me put it out there by saying your only competition is yourself... don't undercut the opposition, your niche market enables you to charge the "going rate". That alone should be able to sustain your company's growth.

A brand new (official) Xbox one controller can be bought new for £45 - £60

I'd imagine the repair should be priced around the £20 mark, I would have to pay for shipping and the part which could leave £10 - £15 profit depending on the shipping costs.

I'm not sure where you got the £10 price from unless i'm missing something?

The way I see it:

• Customers controller has fault
• Searches for repair and finds my site
• See's repair service and buys through online shop
• Receives packaging in post with return label to ship to me
• I Receive,Diagnose + repair
• I ship back to customer

The customer has a refurbished controller for less than half the price of a new one, it also offers up avenues for PS4 controller repair and actual console repairs also.

Anyway it's an idea to add to the original, I like it because it gives me a service that is less niche and could compliment the other work I do.

Agreed on the pricing, I won't go undercutting people.

 

[The Byre]

Industrial repairs - yes. Just don't try to compete on price. Compete on turn-around time and quality, but NEVER on price.

We have several expensive pieces of equipment and the local guy charges between £5 and £50 for a repair. The repair is always pointless. He may be cheap as chips, but he either repairs the wrong thing, or does a bodge. (On one occasion, a rectifier bridge on a 1kW PSU went on the blink and I called him out and he could not find the fault! That has to be the easiest fault to find on any piece of kit! He went away and I rolled up my sleeves and found the damn broken part immediately, sent someone off to Maplins and had the thing up-and-running an hour later!)

The 'real' guy (former QC engineer and designer for the manufacturer) charges between £100 and £2,000 for a repair - and the repair is always 100% done.

Guess which one we use!

But X-Box and iPhone repairs? No! No! No!

Let some other poor sap struggle with gormless retail customers who expect the world for a fiver.

 

[DontAsk]

It's £5 for the callout with the hammer, £95 for knowing which bit to hit. or something like that.

 

[DontAsk]

Work location will be from my basement or garage as both have power and lighting.

Have you thought about the safe and legal disposal of waste/used flux/cleaners, etc., let alone creating a safe working environment.

Your equipment budget is way too low for a professional outfit unless you are operating at the lowest end. You will struggle with BGA rework on £1000 equipment.

 

[The Byre]

You will struggle with BGA rework on £1000 equipment.

It does seem somewhat modest! £1,000 is more or less, the cost of the desoldering station, though you can get a used Wellar for about half that. But then comes the Oscar, the interface cards, software and general test kit, depending on what it is that you want to repair.

 

[Root 66 Woodshop]

I'm not sure where you got the £10 price from unless i'm missing something?

I personally don't do gaming consoles - All I did was use our good ole friend google...

If and this is a big IF I had one and it broke, even within a couple of months - I'd see it as me being too hamfisted and go online and buy the next one available to me... I clicked on shopping within the google search and found some there for £5.87 - £10.00

This would be by most likely avenue based upon the fact that I'd already broken one controller... and I'd continue down that route...

Just giving an honest opinion based upon google search

 

[ScottCD]

Have you thought about the safe and legal disposal of waste/used flux/cleaners, etc., let alone creating a safe working environment.

Your equipment budget is way too low for a professional outfit unless you are operating at the lowest end. You will struggle with BGA rework on £1000 equipment.

Yes BGA rework is not on the Agenda really, I want to be able to offer this but the equipment is not cheap.

This is for damaged pads/tracks/lamination/component removal and replacement etc. just not BGA's.

£1000 was to cover basics:

• 2 Soldering irons with PSU
• All ESD kit
• General tools (tweezers/scalpel etc.)
• Hot air gun
• General consumable (Kapton Tape/Heat shielding tape/flux/solder)
• Replacement pads, tracks and plated through hole eyelets.

I hadn't thought about safe disposal actually but I'll look into it. We had specialized bins which I assume have to be removed/disposed in a certain in previous work places.

It does seem somewhat modest! £1,000 is more or less, the cost of the desoldering station, though you can get a used Wellar for about half that. But then comes the Oscar, the interface cards, software and general test kit, depending on what it is that you want to repair.

I never recommend using a 'desoldering station' they are always overpriced and I've tested a few different ones - they all seem a bit 'gimmicky' you can remove near anything with a hot air gun + 2 soldering irons (with appropriate tips etc) + some skills/experience.

Will need some sort of Fume extraction though.

 

[ScottCD]

I personally don't do gaming consoles - All I did was use our good ole friend google...

If and this is a big IF I had one and it broke, even within a couple of months - I'd see it as me being too hamfisted and go online and buy the next one available to me... I clicked on shopping within the google search and found some there for £5.87 - £10.00

This would be by most likely avenue based upon the fact that I'd already broken one controller... and I'd continue down that route...

Just giving an honest opinion based upon google search

You can get cheap versions of the controllers but they tend to suck and are often wired not wireless.