Advice on startup IT Support business

[DBrownlee]

Hello people

I’m looking for some advice on setting up my own business providing general IT support services to small & medium businesses.

The main services include desktop/laptop/server support, networking, email, wifi, mobiles and backups.

I’m currently putting together a business plan which is mostly complete, however I’m stuck at deciding how to price the services and contracts.

My research show there’s a variety of different ways to structure support contracts, such as per desktop or buying a set number of hours.

I’m looking for some insight on how others in a similar business have approached this and some of the benefits and pitfalls of the various models.

Also what is the going rate for an IT Technician? Should I do call out fee for the 1st hour and then drop down?

There’s so many options my head is spinning trying to settle on a structure!

Thanks

 

[ffox]

I’m looking for some advice on setting up my own business providing general IT support services to small & medium businesses.

I assume that yours will be a local or regional business. If so you will be competing for business against other similar businesses. You need to check out what the competition are doing.

 

[Kixo]

IT support is what my company does, i started the business because i was an engineer and didnt like the way my old employers treated the customers, so i went from engineer to starting up on my own, then gradually grown with staff and customers.

Is it something you already have experience in? There is a lot to take in to start with, are you an engineer or is support something you have history with?

Pricing varies massively depending on customers, we have some who require basic support mon - fri, then up to others who are multinational 24-7 with extreme high availability and security requirements. SO pricing is not fixed to anything other than customer requirements.

 

[Richard Moore]

As ffox said, find out who your local competitors are and adopt a similar pricing strategy to them.

Also search the web as a number of IT support companies publish their support contract T&Cs along with their rates. This will give you a feel for what business clients are prepared to pay in different parts of the country.

As you're starting out I would suggest starting with a "reasonable" hourly rate where you bill for the hour or part of (no call-out fee as these can put people off choosing you if they are phoning around). Initially consider not charging for travel time (as long as you won't be travelling too far) and work on a no-fix no-fee basis.

The reason I suggest all these "freebies" is that you need to establish your new business so you need to be highly competitive. Working on a no-fix no-fee basis is a good marketing strategy, and you will find that quite often if you don't fix a problem the client won't want to pay for it anyway. You may as well use the fact that you might not get paid for a job as a marketing opportunity.

Once you have a bit of experience you can fine tune your T&Cs and pricing.

Keep your costs low, avoid hiring staff for as long as possible, and good luck with your new venture!

 

[DBrownlee]

Thanks for the replies.

I assume that yours will be a local or regional business. If so you will be competing for business against other similar businesses. You need to check out what the competition are doing.

This will be a local business in the edinburgh and surrounding areas.

IT support is what my company does, i started the business because i was an engineer and didnt like the way my old employers treated the customers, so i went from engineer to starting up on my own, then gradually grown with staff and customers.

Is it something you already have experience in? There is a lot to take in to start with, are you an engineer or is support something you have history with?

Pricing varies massively depending on customers, we have some who require basic support mon - fri, then up to others who are multinational 24-7 with extreme high availability and security requirements. SO pricing is not fixed to anything other than customer requirements.

I have around 10 years experience working for a multinational company who provide IT support for it's staff. I'm still working there and my plan is much like yours to go it own my own.

As ffox said, find out who your local competitors are and adopt a similar pricing strategy to them.

Also search the web as a number of IT support companies publish their support contract T&Cs along with their rates. This will give you a feel for what business clients are prepared to pay in different parts of the country.

As you're starting out I would suggest starting with a "reasonable" hourly rate where you bill for the hour or part of (no call-out fee as these can put people off choosing you if they are phoning around). Initially consider not charging for travel time (as long as you won't be travelling too far) and work on a no-fix no-fee basis.

The reason I suggest all these "freebies" is that you need to establish your new business so you need to be highly competitive. Working on a no-fix no-fee basis is a good marketing strategy, and you will find that quite often if you don't fix a problem the client won't want to pay for it anyway. You may as well use the fact that you might not get paid for a job as a marketing opportunity.

Once you have a bit of experience you can fine tune your T&Cs and pricing.

Keep your costs low, avoid hiring staff for as long as possible, and good luck with your new venture!

That's some really good advice there Richard, i especially like the no fix no fee as you are quite correct in that who really wants to pay for something that wasn't fixed!

 

[David Hopwood]

Great advice, I have just started up my own IT support Company in hampshire.

 

[Deleted member 268094]

@DBrownlee @David Hopwood you may find this useful:

https://www.continuum.net/msp-resources/mspedia/msp-pricing-strategies