Decision

[Deleted]

Hello,

I'm a 21 yo that lives in The Netherlands, i studied IT engineering and i recently (January) got hired at an IT shop where i followed my internship during my study.
The company has four shops scattered around and i'm running one of them, it's not that i dont like my job, i enjoy the time working there so far.

But...a friend of mine who studied the same has no work now. We've been joking in the pub about starting a shop by ourself, but it escalated quite quickly from a joke to serious business. but obviously i can't do both.

I'm earning minimum wage right now, but i don't really care about that yet, so gaining some experience in the IT is more important to me right now than earning alot. I don't have alot of fixed costs besides my car since i still live with my parents, but things will be different when im moving out.

To get back on the starting a business part, my friend really want to start something, so do i, but i have to quit my job for that and he doesnt.
The thing we want to start is a small IT shop, where people can walk in with problems related to computers/periphiral devices.

Should i take the risk, quit my job and start a business? I thought about it and if i want to set up a business i have to do it now or never but on the otherhand...i'm happy i got a nice job at the moment. I'm afraid i might regret not starting something when i'm older/live on my own when starting something will be harder.

Thank for taking your time to read it all and i hope someone is able to inform whether i should start...or not start a business.

[Rukentuts]

With all due respect studying technical concepts doesn't prepare you for the business end of entrepreneurship.

If you're serious, I'd get an MBA first.

[Deleted]

it doesnt sound like either of you have an idea about how a business works, its not just seeing peoples pcs and helping them with their problems, there is the business side aswell, the taxes, getting the loans for the store, etc.

maybe you should learn something about that first before thinking about opening a store

[Daeaye]

With all due respect studying technical concepts doesn't prepare you for the business end of entrepreneurship.

If you're serious, I'd get an MBA first.

What this fella said.

Also, it's worth mentioning that your friend is probably a lot more serious about opening up a shop than you are, and that is probably in part because they're unemployed - if no one will else hire them, they can hire themselves. "I'll be my own boss."
You also have to consider business and competition. Are there many computer shops around? Do they cover the same things that you would? Would you be able to match their prices, or better? And do they get enough business? If they're struggling, or on the quiet side, your business won't do much better - it would do worse, in fact, because you're new. Also, if the business you currently work for have 4 shops scattered around, then they're already building a brand. Competing with a single shop doing the exact same thing is hard enough, but competing with a chain of shops and their branding is a whole other thing.
I think you'd need something that would make you stand out. Do they offer to come out to peoples' houses? If not, that could be an area worth looking at. Of course, transporting yourself to their house would cost you more than them coming to you, all it would really provide is convenience, and how many people honestly let their computers break and refuse to go to a computer shop, demanding they come to them instead?

Knowing your way around computers and being able to work in a computer repair shop is one thing, but starting up a business from scratch, creating branding, competing with other shops doing the same thing, and covering SEO and building a presence is a completely different thing. If you both go into it with the same mind of "I know my way around computers, it'll be fine" then you're doomed to fail from the beginning. If at least one of you genuinely knows what you're doing business-wise (from previous experience or education in business) then you have a chance. Even if you were the manager of the store you're currently working in, you didn't build the business, so, again, even that is different.

Personally, from what I've gathered from what you've said, I wouldn't do it. You're employed, minimum wage or not, you need to put yourself first. Is there no way you could put in a good word for your friend, or help them find a job elsewhere?

[Stir]

Question: Did you get a HAVO or higher education prior to IT? Because if not, the chance that you've had any management classes is pretty slim... There's a lot more to running a business than being really good at creation/fixing.

If you're still interested in running a business together, you could just apply to the KvK, and start an on-line business, or a small business from home. You know; to do on the side. Build up a network and all that. You can fix computers at home in your spare time, and so can your friend. Since you've got a job, your friend will understand that they'd probably do more work...

But there's something else to consider, of course. If you start a company, your friend will have some trouble with their unemployment benefits. While at the same time, such an endeavour will probably not yield enough for sustenance. So your friend will have to jump through some hoops to make ends meet...

All in all, I'd first of all try to get some council at KvK about your prospects. http://www.kvk.nl/
Don't just read; ask questions. Maybe go there for a council appointment; they've probably got things like that. Your friend will want to ask some questions at the UWV.

Edit: One thing to consider is, however: Your current job is well established. Starting a company, however, is a huge risk, and if it crashes, it crashes hard. If it works, the gains are great, however. If it doesn't...

Basically: My advice here is: Only start a company if you've got the finances to back it up.

[Deleted]

Many thanks for the replies so far, i appreciate it!

But i did quite some research already on how setting up a bussines and i do know that more knowledge is needed then only being able to fix a computer when setting up a bussiness.

[Rukentuts]

But i did quite some research already on how setting up a bussines and i do know that more knowledge is needed then only being able to fix a computer when setting up a bussiness.

But doing research doesn't prepare you for reality.

If you attend a school focused on entrepreneurship you'll be thankful.

[Brachamul]

Hello there,

How is the IT Shop market in your country / area ? If you think that there is a real opportunity for business, and that your current company is not exploiting that opportunity, than it would be a good idea to start something.

However, even though i'm no IT professional, the state of the Desktop and Laptop markets make me believe that IT shops are not really what is most likely to grow in the near future.

Your personal context is highly relevant to company creation, but it's not, in any way, what is most important. What is really impotant is that you make sure your future business actually answers a market need.

In France, people who have been working for a while in a company (something like 3 years) can take a part-time leave in order to start a new business. Essentially, you get 2 days per week to work on your project, and retain your job for 3 days a week. Is there maybe something similar in your country?

I'm CEO of a small software company, and teach entrepreneurship in a top european business school.

Hope you find your way

[Symphonic]

I would suggest doing freelance IT support rather than starting a business right now. That way you can have your job, but you can advertise on the side as a freelancer to people who otherwise would seek out family and friends to help anyway.

Keep your job, freelance IT on the side.

[Rukentuts]

I would suggest doing freelance IT support rather than starting a business right now. That way you can have your job, but you can advertise on the side as a freelancer to people who otherwise would seek out family and friends to help anyway.

Keep your job, freelance IT on the side.

Good freelancers would also have a good client-base from the get-go. But I'd still recommend learning business concepts in addition.

[Stir]

Hello there,

How is the IT Shop market in your country / area ? If you think that there is a real opportunity for business, and that your current company is not exploiting that opportunity, than it would be a good idea to start something.

However, even though i'm no IT professional, the state of the Desktop and Laptop markets make me believe that IT shops are not really what is most likely to grow in the near future.

Since the OP is from the Netherlands: I believe the general consensus regarding broken computers is: 'I know a person who can fix it.' The older generations may struggle a bit more, but they've always got a child, niece or nephew who can order and install replacement parts, or fix most common software issues.

I honestly do not know a single person who takes their broken computer to a repair company.
Edit: So... Yeah; I only know of companies who hire IT-people.

[Orange Joe]

Many thanks for the replies so far, i appreciate it!

But i did quite some research already on how setting up a bussines and i do know that more knowledge is needed then only being able to fix a computer when setting up a bussiness.

Do any research on what the market is like in your area? Would you even be able to keep the shop open once started?

[Deleted]

Do any research on what the market is like in your area? Would you even be able to keep the shop open once started?

i did, and thats 1 reason im still considering starting something...there's nothing in my area. There might be people who fix computers in their free time, but there isnt a shop around. The nearest one is around is a 30 minute drive.

- - - Updated - - -

I would suggest doing freelance IT support rather than starting a business right now. That way you can have your job, but you can advertise on the side as a freelancer to people who otherwise would seek out family and friends to help anyway.

Keep your job, freelance IT on the side.

I'm not allowed to do that, no idea how you say it in english. but in short: i'm not allowed to do the same things, repairing/selling computer related products in my spare time.

[Tradewind]

With all due respect studying technical concepts doesn't prepare you for the business end of entrepreneurship.

If you're serious, I'd get an MBA first.

Or find a partner who has that. Realistically though for a small contract based operation there's not a whole lot to deal with. Just keep your receipts for everything, get an accountant for tax time. Receipts for jobs, gas, food, rent/mortgage, bills...everything.

Biggest challenge is finding the clients and making them repeat clients, not just one-time call-ins to fix a printer or two. Getting people on retainer is clutch.

If my job ever tanked, I'd probably do exactly the same thing. I don't have an MBA, but I do have 10 years experience in the field and in my city. I've got a fairly good handle on the landscape.

That said, when I went back to school I just put up a poster in the local markets with a number for people to call if they need shit fixed. It worked out ok.

[Deleted]

Hello there,

How is the IT Shop market in your country / area ? If you think that there is a real opportunity for business, and that your current company is not exploiting that opportunity, than it would be a good idea to start something.

However, even though i'm no IT professional, the state of the Desktop and Laptop markets make me believe that IT shops are not really what is most likely to grow in the near future.

Your personal context is highly relevant to company creation, but it's not, in any way, what is most important. What is really impotant is that you make sure your future business actually answers a market need.

In France, people who have been working for a while in a company (something like 3 years) can take a part-time leave in order to start a new business. Essentially, you get 2 days per week to work on your project, and retain your job for 3 days a week. Is there maybe something similar in your country?

I'm CEO of a small software company, and teach entrepreneurship in a top european business school.

Hope you find your way

thank you very much but i dont think there is something like that here in the Netherlands.

[DrStiglit]

Since you don't sound too sure of it, then I wouldn't do it. You can also start something later in life if you decide you want to.

I don't know how it is in the Netherlands, but is quit simple to start and run a business in the US. If you need a loan just create a business plan and present it to the bank. You can google this, it will take some work but you don't need an MBA to make a business plan. Also, if it is the same as here apply to become an LLC so you aren't personally held responsible for the debts the business incurs. Marketing can be the hardest part. You have to figure out the best medium to get people to realize you are open and what you can do.

Other than that it is just maintaining. Make sure you do inventories and have supplies on hand and all you need to perform your services. You can take money from clients and used carbon copy paper to write out receipts. You file the original and give the copy to the guest. And you can do your math on a calculator so you don't even need a cash register. Just make sure you get one of those debit/credit card machines.

Not sure about Taxes their either, but again, here it is easy. You just save all of your receipts (for both sales and purchases). You can deduct most of your expenses and use your receipts to report your income. Just fill out the small business forms from the government.

I have run my own businesses before. I ran an aviation detailing business with a friend when I was younger and now I am an accountant and do taxes on the side during season. It does take a lot of planning and you need to be ready to put in the hours. As a small business owner you will not be working 8-9 hours a day. You will need to put in much more, especially when you are first starting.

But you def don't need an MBA for a small business. That is much more applicable to handling the dealings of a large corporation.

[Orange Joe]

i did, and thats 1 reason im still considering starting something...there's nothing in my area. There might be people who fix computers in their free time, but there isnt a shop around. The nearest one is around is a 30 minute drive.

Honestly that should make you wonder why there isn't one around. The most likely answer is that there just isn't enough business to support it.

[Raptor With a Saber]

Hire your friend. If you run one shop just hire him.

[Lenonis]

I don't know what the business laws are in the Netherlands, but the other factor you need to consider is risk -- what will you do if the business fails and you lose all your money? If you have investors can they go after your personal assets to repay the loan?

Many, if not most, small businesses either fail or aren't profitable enough to be a sole source of income. If you aren't prepared for the risk you shouldn't do it.

[Tradewind]

I don't know what the business laws are in the Netherlands, but the other factor you need to consider is risk -- what will you do if the business fails and you lose all your money? If you have investors can they go after your personal assets to repay the loan?

Many, if not most, small businesses either fail or aren't profitable enough to be a sole source of income. If you aren't prepared for the risk you shouldn't do it.

Not really applicable to this kind of small business. Unless we're talking about opening up a store front and so on. You can run a contract IT support business with little to no liability.

One thing I guess needs clarification...what the OP means by "IT Shop."