Turning Skills into Service: Starting a Computer Repair Business

Here are the most important things to consider when starting a computer repair business:

1. Location — Strategically choose a location with high foot traffic, such as near shopping centers, universities, or busy streets. Consider the convenience of offering on-site repair services. You can also start this business from your home and even offer pick-up and drop-off services.
2. Tools and equipment — You will need a set of precision screwdrivers, antistatic wrist straps, a multimeter, and a soldering kit. You’ll also need thermal paste, canned air for cleaning, and a toolkit for opening laptops and smartphones. For software troubleshooting, it’s essential to have a reliable external hard drive for data backup, USB flash drives with bootable diagnostic tools, and various software for virus removal and system diagnostics.
3. Specialization — To stand out more and cater to a specific audience, you can choose a specialization, such as basic hardware repairs, software troubleshooting, network setup and maintenance, data recovery and backup, and mobile and tablet repairs.
4. Register your business — A limited liability company (LLC) is the best legal structure for new businesses because it is fast and simple. Form your business immediately using ZenBusiness LLC formation service or hire one of the best LLC services on the market.
5. Legal business aspects — Register for taxes, open a business bank account, and get an EIN.
6. Online presence — Take your business online and build a high-quality website that features your offer and services. Also, get listed on Google Business, Yelp, and local directories and encourage your customers to leave positive reviews.

Step 1: Decide if the Business Is Right for You

Pros and Cons

Starting a computer repair business has pros and cons to consider before deciding if it’s right for you.

Computer Repair Industry Trends

Industry Size and Growth

• Industry size and past growth — The electronic and computer repair services industry in the US is worth more than $21 billion after a 2% decline in recent years.((https://www.ibisworld.com/united-states/market-research-reports/electronic-computer-repair-services-industry/#TableOfContents)) 
• Growth forecast — The computer repair services market will keep decreasing in the next five years.
• Number of businesses — There are more than 29,000 computer repair service providers in the US.
• Number of people employed — The industry employs more than 124,000 people.

Trends and Challenges

Trends

• The computer repair industry has turned to the replacement of components rather than repair, as well as preventative services such as virus protection. Disaster recovery is also a service focus. Virus removal is still one of the most necessary services.
• The installation of networking systems for individuals and businesses is a large service opportunity for computer repair services.
• Mobile computer repair is in demand as people stay at home more and want the convenience of in-home repair.

Challenges

• As computer prices continue to drop, customers are often replacing computers instead of paying for expensive repairs or computer maintenance.
• The entrance of big players into the computer repair business, such as Best Buy’s Geek Squad, is putting pressure on small computer repair companies.

Consumer Spending

• Potential customer base — It’s estimated that more than 94% of US households have at least one type of computer.((https://www.ibisworld.com/us/bed/percentage-of-households-with-at-least-one-computer/4068/))
• Average prices — The average cost to repair a computer is about $70 per hour.((https://www.homeadvisor.com/cost/home-offices/computer-laptop-repair/))

What Kind of People Work in Computer Repair?

• Gender — 90% of computer repair technicians in the US are male, while 10% are female.((https://www.zippia.com/computer-repair-technician-jobs/demographics/#gender-statistics))
• Average level of education — 41% of computer repair technicians have an associate degree, and 34% hold a bachelor’s degree.((https://www.zippia.com/computer-repair-technician-jobs/demographics/#degree-level-types))
• Average age — The average age of a computer repair technician is 42.2 years old.((https://www.zippia.com/computer-repair-technician-jobs/demographics/#age-statistics))

How Much Does It Cost to Start a Computer Repair Business?

Startup costs for a computer repair business range from $4,000 to $12,000. The low end assumes that you’re already a certified technician with a reliable computer, and costs will be mainly a website, tools, and marketing. The high end includes the cost of a computer as well as training. All scenarios assume you’ll start a mobile computer repair business from home. 

You can take online classes and gain high-level certification from the Computer Technology Industry Association (CompTIA) in 12 months for a total cost of around $2,000. 

You’ll need a handful of items to successfully launch your computer repair business, including: 

• Screwdrivers
• Tweezers
• Multi-testers
• Power supply testers
• POST cards
• Crimper pliers
• Thermal paste
• Multi-meter
• Thermal camera

Start-up Costs	Ballpark Range	Average
Setting up a business name and corporation	$150–$200	$175
Business licenses and permits	$100–$300	$200
Insurance	$100–$300	$200
Business cards and brochures	$200–$300	$250
Website setup	$1,000–$3,000	$2,000
Tools and equipment	$1,000–$3,000	$2,000
Computer training and certification	$0–$2,000	$1,000
Computer, monitor, USB drive	$1,500–$3,000	$2,250
Total	$4,050–$12,100	$8,075

How Much Can You Earn From a Computer Repair Business?

Prices for computer repair range from $60 to $80 per hour, with an average of $70. Your profit margin should be around 80%.

In your first year or two, you could run your business from home and work 25 hours a week, bringing in $90,000 in annual revenue. This would mean more than $72,000 in profit, assuming an 80% margin. As your brand gains recognition and you hire technicians, sales could climb to 80 hours per week. With labor costs, your margin will drop to about 50%. With an annual revenue of more than $290,000, you’d still make a tidy profit of $145,000.

What Barriers to Entry Are There?

There are a few barriers to entry for a computer repair business. Your biggest challenges will be:

• The required training and certifications 
• Competing with big players like Best Buy
• Generating the startup costs

Step 2: Hone Your Idea

Now that you know what’s involved in starting a computer repair business, it’s a good idea to hone your concept in preparation to enter a competitive market. 

Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important because it can help you understand your customers better, who your competitors are, and your business landscape.

Why? Identify an Opportunity

Research computer repair businesses in your area to examine their services, price points, and customer reviews. You’re looking for a market gap to fill. For instance, maybe the local market is missing a company that installs high-security networks. 

This could jumpstart your word-of-mouth marketing and attract clients right away. 

What? Determine Your Services

Your services will depend on your skills. They may include:

• Virus removal
• Virus protection
• Data recovery
• Hardware repairs
• Accessory repairs
• Networking installation and support
• Computer maintenance
• Computer training

How Much Should You Charge for Computer Repair Services?

Computer repair usually costs $60 to $80 per hour. Your ongoing expenses should be limited to fuel and marketing, so you should aim for a profit margin of 80% when you’re working alone. 

Once you know your costs, you can use our profit margin calculator to determine your markup and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.

Who? Identify Your Target Market

You can decide if you want to target business customers or residential customers. You can find business customers on LinkedIn or find residential customers on Instagram and Facebook.

Where? Choose Your Business Premises

In the early stages, you may want to run your business from home to keep costs low, but as your business grows, you’ll likely need to hire workers for various roles and may need to rent out an office or a storefront to sell computers and accessories. You can find commercial space to rent in your area on sites such as Craigslist, Crexi, and Instant Offices.

When choosing a commercial space, you may want to follow these rules of thumb:

• Central location accessible via public transport
• Ventilated and spacious, with good natural light
• Flexible lease that can be extended as your business grows
• Ready-to-use space with no major renovations or repairs needed

Step 3: Brainstorm a Computer Repair Business Name

Here are some ideas for brainstorming your business name:

• Short, unique, and catchy names tend to stand out
• Names that are easy to say and spell tend to do better 
• Name should be relevant to your product or service offerings
• Ask around — family, friends, colleagues, social media — for suggestions
• Including keywords, such as “computer repair” or “PC repair,” boosts SEO
• Name should allow for expansion: “The Cyber Surgeons” over “Apple Computer Repair Services”
• A location-based name can help establish a strong connection with your local community and help with the SEO, but might hinder future expansion

Once you’ve got a list of potential names, visit the US Patent and Trademark Office website to make sure those names are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these. 

Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that set your business apart. Once you pick your company name and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.

Step 4: Create a Computer Repair Business Plan

Here are the key components of a business plan:

• Executive summary — A concise summary outlining the business’s mission, goals, and key highlights to provide a quick overview
• Business overview — An in-depth description of the computer repair business, including its mission, vision, and the problem it aims to solve
• Product and services — Detailed information on the computer repair services offered, such as hardware diagnostics, software troubleshooting, and maintenance
• Market analysis — Examination of the target market, identifying customer needs, preferences, and market trends for computer repair services
• Competitive analysis — Evaluation of competitors in the computer repair industry, highlighting strengths, weaknesses, opportunities, and threats
• Sales and marketing — Strategies for promoting the computer repair business, attracting clients, and retaining them through effective sales and marketing techniques
• Management team — Introduction of key team members, their roles, and relevant expertise in managing and growing the computer repair business
• Operations plan — Detailed information on the day-to-day operations, including location, equipment, suppliers, and workflow for efficient service delivery
• Financial plan — Projections and analysis of the financial aspects of the business, including startup costs, revenue forecasts, and profit margins
• Appendix — Supplementary materials such as additional financial data, resumes of key personnel, and any other relevant supporting documents

If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.

Step 5: Register Your Business

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business! 

Choose Where to Register Your Company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you’re planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to computer repair businesses. 

If you’re willing to move, you could really maximize your business! Keep in mind that it’s relatively easy to transfer your business to another state. 

Choose Your Business Structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your computer repair business will shape your taxes, personal liability, and business registration requirements, so choose wisely. 

Here are the main options:

• Sole proprietorship — The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
• General partnership — Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
• Limited Liability Company (LLC) — Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
• C Corporation — Under this structure, the business is a distinct legal entity, and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
• S Corporation — This refers to the tax classification of the business but is not a business entity. Either a corporation or an LLC can elect to be an S Corp for tax status. Here, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization, and answer any questions you might have.

Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number or EIN. You can file for your EIN online or by mail/fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN. 

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

It is important to consult an accountant or other professional to help you with your taxes to ensure you’re completing them correctly.

Step 7: Fund Your Business

Securing financing is your next step, and there are plenty of ways to raise capital:

• Bank loans — This is the most common method, but getting approved requires a rock-solid business plan and a strong credit history.
• SBA-guaranteed loans — The Small Business Administration can act as a guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan.
• Government grants — A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
• Friends and family — Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
• Crowdfunding — Websites like Kickstarter and Indiegogo offer increasingly popular low-risk options in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
• Personal — Self-fund your business via your savings or the sale of property or other assets.

Bank and SBA loans are probably the best options, other than friends and family, for funding a computer repair business. 

Step 8: Apply for Computer Repair Business Licenses and Permits

Starting a computer repair business requires obtaining a number of licenses and permits from local, state, and federal governments.

Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration (OSHA), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits. 

You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more. 

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package. They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money, you’ll need a place to keep it, and that requires opening a bank account.

Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your computer repair business as a sole proprietorship. Opening a business bank account is quite simple and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account. 

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked, yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

• General liability — The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
• Business property — Provides coverage for your equipment and supplies.
• Equipment breakdown insurance — Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
• Worker’s compensation — Provides compensation to employees injured on the job.
• Property — Covers your physical space, whether it is a cart, storefront, or office.
• Commercial auto — Protection for your company-owned vehicle.
• Professional liability — Protects against claims from clients who say they suffered a loss due to an error or omission in your work.
• Business owner’s policy (BOP) — This is an insurance plan that acts as an all-in-one insurance policy, a combination of the above insurance types.

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business. 

Essential Software and Tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks. 

You may want to use industry-specific software, such as RepairShopr, SourceForge, or RepairDesk, to manage your appointments, repair tickets, invoicing, and reporting.

Accounting

• Popular web-based accounting programs for smaller businesses include Quickbooks, FreshBooks, and Xero. 
• If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences of filing incorrect tax documents can be harsh, so accuracy is crucial.

Develop Your Website

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.

You can create your own website using website builders. This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech savvy, you can hire a web designer or developer to create a custom website for your business.

However, people are unlikely to find your website unless you follow Search Engine Optimization (SEO) practices. These are steps that help pages rank higher in the results of top search engines like Google. 

Marketing

Here are some powerful marketing strategies for your future business:

• Local SEO — Optimize your website for local search terms related to computer repair and tech services to improve visibility in your area. Regularly update your Google My Business and Yelp profiles to strengthen your local search presence.
• Website — Develop a clear, user-friendly website that outlines your services, pricing, and showcases customer testimonials.
• Professional branding — Ensure your branding reflects technical proficiency, trustworthiness, and approachability across all platforms.
• Social media engagement — Utilize Facebook and LinkedIn to share useful tech tips, service updates, and special offers.
• Educational content — Publish blog posts and create videos that offer computer maintenance tips, cybersecurity advice, and software tutorials.
• Workshops and educational clinics — Host community workshops on internet safety, basic computer skills, and software usage.
• Partnerships with local businesses — Create referral partnerships with local businesses that can benefit from or complement your tech services.
• Referral programs — Offer incentives like discounts or service upgrades to customers who refer new clients.
• Loyalty discounts — Provide discounts to repeat customers to foster loyalty and encourage ongoing relationships.
• Targeted local advertising — Advertise in local community newspapers and online forums to reach potential customers within your community.
• Email marketing — Engage your client base with regular newsletters featuring tech tips, updates, and exclusive promotions.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that set it apart from the competition. Today’s customers are inundated with buying options, so you’ll have a real advantage if they can quickly grasp how your computer repair business meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire. 

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your computer repair business could be:

• 24-hour on-call certified computer repair
• Virus protection installation done in your home
• Networking diagnostics and repair to keep you connected

Networking

You may not like to network or use personal connections for business gain, but your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a computer repair business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been in computer repair for years and can offer invaluable insight and industry connections. 

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in computer repair. You’ll probably generate new customers or find companies with which you could establish a partnership. 

Step 12: Build Your Team

If you’re starting out small from a home office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for a computer repair business include:

• Computer technicians — computer diagnostics and repair
• Dispatcher — taking customer calls, dispatching technicians
• Marketing lead — SEO strategies, social media, other marketing

At some point, depending on your business’s size and needs, you may need to hire all of these positions or simply a few. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need. 

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed, Glassdoor, or ZipRecruiter. Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent. 

Step 13: Run a Computer Repair Business — Start Making Money!

More than 9 out of 10 US households have at least one type of computer, and most of those computers will break down at some point. You can grab a share of a massive $21 billion market by starting your own computer repair business. But instead of setting up a physical shop, you can opt to provide mobile services and run your business from home, so you can keep your costs minimal and make a nice living. 

Now that you’re a business savvy entrepreneur, go get your business plan together and get ready to launch your computer repair business!

Common Questions

How profitable is a computer repair business?

A computer business can be very profitable. Rates range from $60 to $80 per hour, and if you run your business from home, your ongoing expenses will be very low. 

Can I start a computer repair business from home?

You can absolutely start a computer repair business from home. You’ll simply need to travel to clients’ homes to make the repairs.

How do I handle customer complaints and negative reviews?

You should respond to complaints and reviews immediately and do your best to resolve the complaints. Sometimes you may need to offer a refund.

Where can I get the necessary computer repair parts and components?

There are many wholesaler suppliers who can provide parts and components. You should shop around for the best prices.

How do I plan for the long-term growth and sustainability of my computer repair business?

You need to create a strategic plan to grow your computer repair business. You should project how many clients you think you can acquire, and plan for the resources you’ll need to handle those clients.