A computer building company is a business that is involved in computer hardware engineering. These companies are tasked with designing, developing, and supervising the production of computer hardware like keyboards, modems, printers, computer systems, chips, and circuit boards.
When it comes to computer building, the motherboard is the first component to start with. The motherboard dictates the physical form and size of your PC, it also determines what other pieces of hardware the computer can use.
Statistics have it that the Computer Repair industry in the United States of America is worth $22bn, with an estimated growth rate of -1.2 percent. There are about 60,131 registered computer repair and maintenance businesses in the United States and they are responsible for employing about 147,293 people.
Steps on How to Start a Computer Building Business
Table of Content
Conduct Market Research
If you are considering starting a computer building business, you would need reliable market research to be able to maximize profits from the business. The first step in the market research process for your computer building business should be to develop market-based research questions in line with your overall business goal and objective.
In this regard, you should source for information that will help you maximize your business, give you reliable insights on what your potential market will be looking for, and also help you operate your computer building business with strategies that will help you compete favorably in the market.
a. Who is the Target Market for a Computer Building Business?
- Banks, Insurance Companies, and other related Financial Institutions
- Blue Chips Companies
- Corporate Organizations
- Manufacturers and Distributors
- Real Estate Owners, Developers, and Contractors
- Research and Development Companies
- The Government (Public Sector)
- Schools (High Schools, Colleges, and Universities)
- Sport Organizations
- Religious Organizations
- Television Stations
- Printing Press (Publishing Houses) and Authors
- Branding and Advertising agencies
- Individuals and households who own computers
- Entrepreneurs and Start-Ups
b. Is Computer Building Business a Profitable Business?
Yes, computer building is a profitable business because, in recent times, people prefer customized computers hence the market is booming.
c. Are There Existing Niches in the Industry?
No, there are no existing niches when it comes to the computer building business.
d. Who are the Major Competitors?
- BLD (by NZXT)
- Origin PC
- Digital Storm
- Falcon Northwest
- Build My PC
- Micro Center
- PC Builder
- Mesh Computers
- Motion Computing
- Sapphire Technology
- Quanta Computer
- Wyse Technology
- Evans & Sutherland
- LanSlide Gaming PCs
- Cooler Master
- VIA Technologies.
e. Are There County or State Regulations or Zoning Laws for Computer building business?
Yes, there are county or state regulations or zoning laws for computer building businesses. Note that if you are planning to house your production factory in a purpose-built facility or proposing an extension to an existing building, you must apply to your local planning department for approval.
Ideally, an architect experienced in factory planning will draft your initial plans. They might collaborate with, or seek input from your local Fire Safety Officer to ensure that the appropriate safety measures have been accounted for, under the safety regulations as defined in the Regulatory Reform Order.
f. Is There a Franchise for Computer Building Business?
No, there are no franchise opportunities for the computer building business.
g. What Do You Need to Start a Computer Building Business?
- A Feasibility Report
- Business and Marketing Plans
- Business Licenses and Permits
- Business Facility
- Startup Capital
- Working Tools and Computer Parts Supplies
- EIN (Employer Identification Number)/Federal Tax ID Number.
- A Corporate Bank Account
Memorable Computer Building Business Names
- Emmet Group© Computer Building Company, Inc.
- Brest Technologies® Computer Building Company, LLC
- Bally Tryone© Computer Building Company, Inc.
- Computer Solutions® Computer Building Company, Inc.
- Marshal Kings™ Technologies, Inc.
- Green Group™ Computer Building Company, LLC.
- Luke Elton and Co© Computer Building Company, LLC
- Milton Jones® Computer Building Company, Inc.
- AmEx© Technologies, Inc.
- 3D Technologies© Computer Building Company, Inc.
- Redo Technologies® Computer Building Company, LLC
- Orange Group® Computer Building Company, LLC
- Canto Technologies™ Computer Building Company, LLC
- Fred Junes© Computer Building Company, Inc.
- Back ‘n’ Forth® Technologies, Inc.
- Dominic Perez™ Computer Building Company, Inc.
- Reco Technologies™ Computer Building Company, Inc.
- Purple Tree © Computer Building Company, Inc.
- Big Network® Computer Building Company, LLC
- Freo Technologies™ Computer Building Company, Inc.
Register Your Business
a. What Type of Business Structure is Best for Computer Building Business?
Even though there are several options when it comes to the business structure of a computer building business, the one that most players in this line of business consider is an LLC. It is common to consider an LLC because providers want to protect themselves from lawsuits.
Please note that an LLC will need an EIN if it has employees or if it will be required to file any of the excise tax forms listed below.
b. Steps to Form an LLC
- Choose a Name for Your LLC.
- File Articles of Organization.
- Choose a registered agent.
- Decide on member vs. manager management.
- Create an LLC operating agreement.
- Comply with other tax and regulatory requirements.
- File annual reports.
c. What Type of License is Needed to Open a Computer Building Business?
- General Business License
- Zonal Permits
- Signage Permit
- Operational State Facility Inspections
d. What Type of Certification is Needed to Start a Computer Building Business?
- A+ certification from the Computer Technology Industry Association (CompTIA)
- N+ network certification
- Microsoft Certified System Engineer (MCSE)
- Apple Certified iOS Technician (ACiT) 2018 certification.
e. What Documents are Needed to Open a Computer Building Business?
- Business and liability insurance
- Federal Tax Payer’s ID
- State Permit and Building Approval
- Certificate of Incorporation
- Business License
- Business Plan
- Employment Agreement (offer letters)
- Operating Agreement for LLCs
- Insurance Policy
- Contract Document
- Company Bylaws
- Memorandum of Understanding (MoU)
f. Do You Need a Trademark, Copyright, or Patent?
No, you don’t need a trademark, copyright, and patent for your computer building business.
Cost Analysis and Budgeting
a. How Much Does It Cost to Start a Computer Building Business?
The startup cost for a computer building business is not uniform. But basically, a computer building business will cost between $20,000 to $200,000 and even millions of dollars to start.
b. What are the Costs Involved in Starting a Computer Building Business?
- The total fee for registering the business in the United States of America – is $750.
- Legal expenses for obtaining licenses and permits as well as the accounting services totaling – $3,200.
- Marketing promotion expenses (2,000 flyers at $0.04 per copy) for the total amount of $80.
- The cost for hiring a business consultant (writing of business plans inclusive) – is $4,500.
- Insurance (general liability, workers’ compensation, and property-casualty) coverage at a total premium – $12,400.
- The cost of logistics software, accounting software, CRM software, and Payroll Software – $4,500
- The cost for leasing a facility (long-term lease agreement) – is $35,600.
- The cost for facility remodeling and installations – $20,000.
- The cost for the purchase of computer building tools, equipment, and parts: $100,000
- Other start-up expenses including stationery – $10,000
- Phone and utility deposits will cost – ($2,500)
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $40,000
- The cost for store equipment (cash register, security, ventilation, signage) – $3,150
- The cost for the purchase of office furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al) – $8,000.
- The cost of launching an official website – $600
- The cost of the opening party – $3,000
- Miscellaneous – $2,500
c. What Factors Determine the Cost of Opening a Computer Building Business?
- The size of computer building business
- The choice of location
- The required licenses and permits
- The cost of hiring and paying a business consultant and attorney
- The cost for branding, promotion, and marketing
- The cost for furnishing and equipping the computer building business
- The cost of insurance policy covers
- The cost for registering the business
- Cost of recruiting and training your staff
- The cost for the purchase and customizing of uniforms
- The cost for the grand opening of the computer building business
d. Do You Need to Build a Facility? If YES, How Much Will It Cost?
It is not compulsory to build a new facility for your computer building business, but, if you have the required finance, it will pay you to build your own facility and administrative office. The truth is that building or reconstructing a facility will help you come up with a facility that will perfectly fit into your overall business goals and vision.
e. What are the Ongoing Expenses of a Computer Building Business?
- Computer parts and supplies
- Utility bills (internet subscriptions, phone bills, signage and software renewal fees et al)
- Salaries of employees
- Machine maintenance
- Marketing costs
f. What is the Average Salary of your Staff?
- Chief Operating Officer (President) – $60,000 Per Year
- Plant Manager – $48,000 Per Year
- Admin and HR Manager – $39,000 Per Year
- PC Building Technician and Engineers – $36,800 Per Year
- Marketing and Sales Executive (Business Developer) – $36,000 Per Year
- Accountant – $36,000 Per Year
- Plant Workers – $28,000 Per Year
- Customer Service Officer (Receptionist) – $26,100 Per Year
g. How Do You Get Funding to Start a Computer Building Business
- Raising money from personal savings and sale of personal stocks and properties
- Raising money from investors and business partners
- Sell shares to interested investors
- Applying for a loan from your bank/banks
- Pitching your business idea and applying for business grants and seed funding from the government, donor organizations, and angel investors
- Source for soft loans from your family members and friends.
Write a Business Plan
a. Executive Summary
Milton Jones® Computer building business, Inc. is a registered and licensed computer building business that will be based in Los Angeles, California. We are in business to build a wide range of computers for both the United States market and international market.
Milton Jones® Computer building business, Inc. has been able to secure all relevant licenses and permits to operate in the United States. We will ensure that we abide by the rules and regulations guiding the computer building industry in the United States of America.
b. Products and Service
- Fixing, building, and maintaining computers and networks with a focus on hardware and software expertise.
- General Computer Hardware Repairs and Maintenance services (All Brands)
- Computer Installations
- Computer Cloning/Computer upgrading
c. Mission Statement
Our mission is to ensure that we build a successful computer building business that will not just sell computers in the United States of America and Canada, but all across the world; a company that will have some of the best PC Building Engineers and Technicians in the whole of the United States of America.
Our Vision is to become one of the preferred choices for individuals and organizations when it comes to the demand for customized computers in the whole of the United States of America and other counties of the world.
d. Goals and Objectives
The goals and objectives of a computer building business are to build customized computers to serve a specific purpose for its customers.
e. Organizational Structure
- Chief Operating Officer (President)
- Plant Manager
- Admin and HR Manager
- Marketing and Sales Executive (Business Developer)
- PC Building Technician
- Plant Workers
- Customer Service Officer (Receptionist)
a. SWOT Analysis
- Excellent operational history
- Attention to detail.
- Experience and trained professionals.
- Large manufacturing facility.
- Excellent customer testimonials.
- Reliable and efficient computer building and cloning process.
- Not enough existing clientele to run at full capacity immediately
- The owner is new to large scale marketing
- We will need a loan to build our facility and to purchase computer parts and accessories
- Lack of economies of scale.
- Growing acceptance of customized computers in the United States.
- Build upon existing clientele
- Online market, new services, new technology, and of course the opening of new markets.
- Increase in the use of customized computers for businesses
- Increase in technological activities on a global scale.
- Loans diminish profitability until they are paid off
- The first year will be financially tight while we gain customers and pay off loans
- Competition in the area could increase
- Management of employees requires time, money, and efforts
- The regulatory authority could change their regulatory status and decide to regulate enforce strict regulations that can strangulate new business.
b. How Do Computer Building Companies Make Money?
Computer building companies make money by;
- Fixing, building, and maintaining computers and networks with a focus on hardware and software.
- General Computer Hardware Repairs and Maintenance services (All Brands)
- Computer Installation
- Computer Cloning/Computer upgrading
c. Payment Options
- Payment via bank transfer
- Payment via credit cards
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
- Payment via bank draft
d. Sales & Advertising Strategies
- Introduce Your computer building business by sending introductory letters alongside our brochure to businesses, corporate organizations, schools, and key stakeholders in and around your city and state
- Print out fliers and business cards and strategically drop them in offices, libraries, public facilities train stations et al.
- Use friends and family to spread the word about your business
- Post information about your company and the products you sell on bulletin boards in places like schools, libraries, and local coffee shops et al
- Place a small or classified advertisement in the newspaper, or local publication about your company and the product you sell
- Leverage on referral networks such as computer suppliers and dealers that will attract clients who would need your products
- Advertise our business in relevant magazines, newspapers, TV and radio stations.
- Attend relevant expos, seminars, and business fairs et al to market our firearms
- Engage in direct marketing approach
- Encourage the use of word-of-mouth marketing from loyal and satisfied clients
a. How Much Should You Charge for your Product/Service?
Most computer builders charge based on the configuration of the computer and it could range from $250 to over $500.
b. How Much Profit Do Computer building business Owners Make a Year?
It depends, while ZipRecruiter is seeing annual salaries as high as $80,000 and as low as $19,500, the majority of PC Builder salaries currently range between $30,500 (25th percentile) to $48,500 (75th percentile) with top earners (90th percentile) making $64,000 annually across the United States.
c. What Factors Determine the Amount of Profit to Be Made?
- The capacity of the computer building business
- The location of the computer building business
- The management style of the computer building business
- The business approach of the computer building business
- The advertising and marketing strategies adopted by the computer building business.
- The number of years the computer building business is in business
d. What is the Profit Margin of a Computer Building Business?
The profit margin of a computer building business is not fixed. It could range from 11.5 percent to 18.85 percent. Please note that the profit margin can be defined as the percentage of revenue that a company retains as income after the deduction of expenses.
e. What is the Sales Forecast?
Below is the sales forecast for a computer building business. It is based on the location of the business and other factors as it relates to such startups in the United States;
- First Fiscal Year (FY1): $220,000
- Second Fiscal Year (FY2): $380,000
- Third Fiscal Year (FFY3): $450,000
Set Up your Shop/Office
a. How Do You Choose a Perfect Location for Computer Building Business?
- The demography of the location especially as it relates to ICT activities
- The demand for customized computers in the location
- The purchasing power of businesses and the residence of the location
- Accessibility of the location
- The number of computer building companies in the location
- The local laws and regulations in the community/state
- Traffic, parking and security et al
b. What State and City are Best to Open a Computer Building Business?
- Los Angeles, California
- New York City, New York
- Fort Smith, Arkansas
- Atlanta, Georgia
- Tucson, Arizona
- Orlando, Florida
- Fort Wayne, Indiana
- Columbus, Ohio
- Jefferson City, Missouri
- Baton Rouge, Louisiana
c. What Equipment is Needed to Operate a Computer Building Business?
- PC Cases
- Central processing unit (CPU)
- Memory (RAM)
- Graphics processing unit (GPU)
- Power supply unit (PSU)
- System cooling.
- Gaming peripherals
- Operating system (OS).
When it comes to hiring employees for a standard computer building business, you should make plans to hire a competent chief executive officer (you can occupy this position), admin and HR manager, plant manager, marketing and sales executive (business developer), accountant, PC building engineers and technicians, support staff, customer service officer (receptionist) and security guards.
Launch the Business Proper
In recent times, no computer building business opens its door for business without first organizing an opening party to officially launch the business. You can choose to do a soft opening party if you are operating on a low budget or you can go for a grand opening party.
The bottom line is that with a proper launching of the computer building business, you will be able to officially inform people in your city that your computer building business is open for business.
a. What Makes a Computer Building Business Successful?
- Choose a good location to launch the business
- Come up with a unique concept for the business
- Partner with key stakeholders
- Hire only competent, hardworking, and trustworthy staff
- Be deliberate with your marketing sales approach
- Encourage the use of word of mouth to promote your computer building business
- Leverage on all available online and offline platforms to promote your computer building business
b. What Happens During a Typical Day at a Computer Building Business?
- The business is open for the day’s work
- The production line (factory) swings into action
- Customer’s requests are taken and they are scheduled or attended to
- Schedule maintenance of equipment and machinery is carried out
- Marketing/website upkeep
- Supply ordering
- Administrative duties
- The business is closed for the day.
c. What Skills and Experience Do You Need to Build a Computer Building Business?
- Good computer engineering skills
- Ability to pay attention to details
- Customer services skills
- Interpersonal skill
- Business management skills
- Work experience in the computer manufacturing and repair industry
- Experience in managing people
- Experience in business administration
- Experience in handling different types of hardware and software.