brandonbaki

[brandonbaki]

Week #12 Progress

I apologize for the lack of blog updates, the past few weeks have been incredibly draining on me.

Between dealing with my medical issues, studying for and scheduling my final exams in other courses, and the tragic passing of a young family member, I haven't been able to devote as much time to documenting and growing my business as I would have liked.

Although I will say, my business plan and what I have already put in place seems to be working well.

I have acquired a couple of new customers. Completed a virus removal/cleanup job for one of them, and the other is currently waiting for their new hard drive to arrive so I can migrate and backup their years of video data.

I'm also in the midst of negotiating a larger job - assembling a new gaming machine for an old neighborhood friend that caught news of my startup. This is one that I'm rather excited about, as I get to design it from the ground up with all new tech! The only issue is working around our conflicting schedules to mettle out the various options for his chosen parts and pricing, but it will bring me a good amount of profit when complete and will be worth all the back and forth delays.

I feel like the project is coming along nicely, but I can't help but feel like it could get better results under different circumstances. Trying to completely immerse yourself into a new endeavor when you have many other obligations and distractions becomes difficult. Maybe I expect too much from myself, trying to build Rome in a day. I'm learning that having a side-business is great way to make some extra cash, but will take quite a while before it can provide a means of reliable self-employment and enough income to make a living. Perhaps learning how to identify the time to make that transition is part of what makes a good entrepreneur.

I may not be able to turn my business into a full-time job as it stands, but I have learned what kind of mindset and lifestyle I'll be committing to if that time ever comes. For now, I think my 'side-hustle' will do just fine.

[brandonbaki]

My Progress - Week #8

What's working: My inner contacts are all on board with the new venture and are helping me advertise my services. I've had a few inquiries about the scope of what I'm offering, e.g. people with larger jobs in mind (building a new gaming pc) are asking for my rates. This is great news, and shows me there is some interest out there for my services, or at least people are considering them. What's not working: I would say what isn't working *yet*, and that is that nobody has committed to getting their work done yet. I suspect they are still weighing their options when it comes to price vs. completion time, as that trade-off is kind of the basis for offering a lower price than the competition. I will look to find ways to sweeten the deal and see if I can address this initial hesitation. How the project is coming: Business is slower to pick up than anticipated, but I think I'm on track and just have to push forward with what I've been doing. Finalizing a deal or two and getting the revenue and feedback from them will help build up my reputation and gain more public awareness. What I'm learning about running a business: It's not easy! Juggling other responsibilities means you often don't get to choose when you have time to work on your business, so you just kind of have to fit it in whenever you can. Trying to build your own business while working or studying somewhere will surely start off slower than you imagined, and it will take dedication to gain significant growth. What I'm learning about myself: I'm not nearly as patient of a person as I thought I was. It is hard to wait for the ideas I put into place to produce the meaningful progress I'm looking for and I must learn to balance my expectations. I am (slowly) learning that the absence of expected success isn't necessarily an indication of failure.

[brandonbaki]

My Progress - Week #7

So far, my start-up venture is coming along nicely. Learning about everything needed to create a solid business plan has helped me continually revise it, which has meant leaving some ideas on the cutting room floor and just focusing on the fundamentals. The process of researching and adapting my plan towards my target market seems solid. I have been able to create a unique selling point and carving out a place for myself in the budget user market appears to be an achievable goal. I can say with confidence that I am offering the best price for my chosen services among the local competition. What hasn’t been working well so far is acquiring customers. It has been difficult finding people who actively need computer maintenance right now to take on as clients. Getting the word out there isn’t the hard part – it’s waiting for the word to reach those with any actual problems that need fixing that seems to be slow. There is no group hangout, or online community of people that exist for people with computer problems like there is for fans or enthusiasts of types of consumer products. People don’t typically get together or form groups to talk about the relative value of different computer repair options, like they would do to swap banana bread recipes or discuss common political or social views. I guess I just have to keep advertising everywhere I can and eventually people looking for services will find me. I’m learning that running a business, or at least running your own business, is more like a lifestyle than a job. You start thinking about how minor or unrelated life decisions may end up affecting the business, much like being responsible as the head of a household or a family that depends on you. When a machine has this many moving parts, adjusting one of them invariably influences all the others, and so careful consideration of the potential ramifications is needed before doing so. It has given me a greater appreciation for why changes being implemented in my previous jobs have always seemed to take forever to actually happen. Perhaps that’s why the government moves so slowly… since in reality it is just one giant corporation split into hundreds or even thousands of subsidiaries. I’ve also learned that in order for a business to grow, even a jack-of-all-trades can only do so much themselves before it will become necessary to delegate control to others. Companies run by a single person will always have a limit of how large they can become, and I will surely be at an interesting crossroads if or when I reach that point myself. But for now, the most important thing to remember is to stick to my plan, keep refining it, and see where it takes me!

[brandonbaki]

Where will I get the money?

I've looked at the different options for funding a new business venture, and it's clear that some are more suitable than others depending on the kind of business you have. To expand and take my computer service business forward, I would be looking at the following sources: Personal Investment - A great option for small ventures since you only owe money to yourself, don't have any deadlines for paying it back, and won't have to pay any interest. This will be quite limiting since I don't have much money I can personally invest, but if given the choice I would try to fund the business as much as I could this way. If what I have isn't enough then I'd have to move on to... Love Money - Borrowing from friends and family is something I generally don't like to do. To go down this route I'd have to be even more confident in my business plan than if I was investing all the money myself. If I fail to repay it on time it will affect my personal relationships, and to me that's a much larger penalty than lowering my credit score. This option is good for smaller amounts. Bank Loans - Although it will easier to get borrow larger sums directly from the bank, they will be even more picky about having a solid business plan and good, supported financial projections. Again, I think this is actually a good thing. If a bank doesn't think my plan will succeed enough to lend me the money, then there's probably a good reason for it and I should probably re-examine my entire operation. I would have to make loan payments on time, and would probably pay a good amount of interest, but the business would still be 100% mine to control. This gives me the most freedom to run the business the way I want, as long as it remains profitable. Angel Investors is actually an option I'm still on the fence about. On one hand, I don't like the idea of having to answer to anyone like a supervisor, but on the other hand they often bring great experience and will help steer the company to become the most successful it can be. Definitely still an option, just not my first choice.

Some of the other options just aren't suitable for me for various reasons.... Venture Capitalists are generally looking for high-risk, high growth potential companies so they can get a good return on their investment. They also generally take equity in the company and shape it before ultimately taking it public or selling it privately. I don't see my local computer repair service as being a good fit for this kind of investor for those reasons. Government Grants also don't seem to be a good fit, simply based on the fact they are so competitive and you really need to have a unique or innovative idea/approach to have a chance at winning one. Business Incubators don't seem like a suitable for a local service company, and geared more towards companies with something like an untested high-tech prototype they want to bring to market. I like the idea of sharing space, but it doesn't really make sense in the context of my business.

[brandonbaki]

Business Operations

The basis of my business operation plan is to launch with as little upfront costs as possible and build up some cash reserves for the business first. We will start by advertising with friends, family, and on social media to get our first few clients and get some money in the bank. Starting from the bottom like this may limit the size of jobs we can take early on, but will let the business grow organically with it’s client base without worrying about taking on and managing debt until we are in a better position to do so. Once we have adequate cash flow and revenue is coming in, we will look to invest in areas of based on current priorities and what we can afford. Early goals include registering an official company name and business number, developing an official website, and ordering business cards. Business operations are outlined below:

Space and Equipment

- Working from home to start, so no investment in physical space, furniture, etc. at this point

Logistics

- No product to store and sell and no supply chain to manage - Replacement parts will be ordered as needed from suppliers - Eventually we will be able buy parts at wholesale from distributors once we grow enough to register for GST/HST accounts

Procedures

A typical transaction would be handled like so:

- Client notices problem with their computer - Client contacts us via phone or online describing their problem - We inform the client whether machine can be dropped off for service or if an on-site consultation is necessary (depending on reported issues) and quote them initial fees

- If doing drop-off service, customer fills out paperwork - Detail their contact info, description or specifications of their machine including manufacturer and serial numbers, description of their issue, and agrees to the initial flat-rate fee they were quoted - Machine is serviced and customer contacted when complete - Client returns to pay bill and pickup machine

- If doing on-site service, customer provides address and confirms appointment details - We visit site and collect the necessary info, customer agrees to our fee - We complete service, demonstrate the issue is resolved, collect payment

Systems

- Start by using self-created PDF templates for our forms, invoices, etc. - Use a MS Access database to store customer, machine, and associated work order details - Handle billing manually as cash transaction, or take electronic payment through online processors like Interac E-Transfer and PayPal - Invoice / Receipt sent by email - As we grow, invest in full software suites like QuickBooks to centrally manage our billing and accounting

Organization

- I am the sole employee and responsible for all the roles in the company - Will not draw any salary until the company grows enough to viable as my only commitment and source of income full-time - During this time, all profits will be re-invested to build up cash reserves and acquire what’s needed to grow the company

Costs

- Work from home with no upfront expenses to start up - Potential costs will include travel expenses for on-site consultations, and any specific tools and parts needed to complete work orders (will vary by job) - Once established with revenue coming in we will look at investing in areas to help us grow, like advertising, business cards, etc. as well as better software to help automate billing and handling finances

Regulation/Legal

- Need to register business name through Service Ontario ($60 fee) to get a Master Business License (MBL) and provincial business number (BIN) - GST/HST account not necessary until we exceed $30,000 annual revenue - No professional association membership required for computer technicians, but plan on joining Brantford Chamber of Commerce ($225 fee) for networking and promotional opportunities - Should also look at investing in business liability insurance (cost will vary)

[brandonbaki]

Creative Advertising

The future of fingernail cleaning has arrived! For years, humans have struggled with ways to randomly clean under their fingernails while waiting to do something else. Everyone hates the hassle of having to dig through a purse or backpack to find your boring old nail file, only to realize you lost it somewhere along the way. The Bend-N-Poke(TM) is the solution you've been waiting for! The Bend-N-Poke(TM) is the only fingernail-cleaning device that can be fastened to literally any piece of clothing or fabric for quick and easy storage! When you're finished your grooming routine simply POKE the pointy end - through your sleeve, pocket, belt, shoelace, or wherever is convenient - and then BEND it until it rests under the protective covering. Now everyone can own a nail cleaning tool that's nearly impossible to lose! Buy your Bend-N-Poke(TM) today!

[brandonbaki]

Customer Persona Example

This is a customer persona I created called "Student Shawn" to represent a typical customer in the student segment of the market. About Him: Shawn studies journalism and marketing at Laurier University. He uses a computer all day long doing research, writing assignments and visiting social media and watching YouTube during his downtime. Use Case: Shawn knows his way around his computer pretty well, but he uses our services when something unexpected happens that he can't seem to fix himself. He drops off his laptop with us for a diagnostic and uses his old desktop computer and tablet in the meantime. He waits for the results of the diagnostics and the repair estimate before deciding if he can afford to fully repair his laptop, or if he will just transfer his data to an external drive and use his other computer for the rest of the term. Previous Solution + Pain Points: Before becoming our client, Shawn would take his laptop to Geek Squad for repairs. He couldn't afford an extended service plan for his laptop, so he had to pay their full retail pricing for any repair work and replacement parts which always seems unreasonably high. Sometimes he'd get his computer back and the same problem would happen again a day or two later, so he'd have to waste his time bringing it back and forth to be looked at again and usually by a different employee. Eventually he'd get it back fixed, but it was usually a frustrating and expensive ordeal. Benefits: Using our company, Shawn gets the following benefits:

He deals with a single technician that's responsible for his machine from beginning to end

He's not charged an additional markup on any replacement parts needed

He pays lower rates for the same work

Service recommendations are always tailored to his needs and offer the best value for his dollar

Buying Trigger: High costs and sub-par customer experience when dealing with the nationwide retailer sent him looking for an alternative. Buying Process: He searches for computer repair services in the city and sees our website advertising lower rates. He calls or texts with a description of his problem and his questions, and gets an idea of the typical cost to fix his kind of problem before deciding whether it's worth it for him right now. He finds it costs less than he's paid for similar work in the past, so he brings the machine in for repair. The technician fixes it and shows Shawn a few things he can do himself to prevent the problem in the future. Shawn is impressed and tells all his friends to check us out so they can save money when they need repairs.

Choice Factors: Shawn's choice of where to get his laptop fixed is mainly influenced by:

Cost - School is expensive and students are always looking for the best value for their dollar.

Reputation - Students are much more likely to patronize a company that other students have recommended.

Customer Experience - Shawn would rather go to a company that finds solutions for his individual needs and budget, and makes him feel included throughout the entire process.

[brandonbaki]

Local Competition

There turned out to be more competition in the computer repair market for my city than I originally thought. Many of these businesses seemed to be one-man startups that I've never heard of or seen advertised anywhere at any time, and have very minimal market share to consider. So I took a good look at some of the established and more well-known businesses in the city that I consider to be main competitors, and compared some of their main strengths and weaknesses. Geek Squad - subsidiary of a huge nationwide retailer - superior market position; offers service for nearly every electronic device that parent company Best Buy sells, including TVs, smartphones and appliances - targets higher-budget consumers and small/medium business that lack any in-house IT dept. - service rates are high enough to act as incentive for their customers to buy into inclusive service plans for a monthly fee instead - fantastic retail location across from shopping mall that they inherited when Best Buy acquired Future Shop many years ago - top-tier website experience and social media engagement - near-instant brand recognition - despite their position, customer review scores are low - often citing long wait times and poor communication - probably the least personable experience you can have with a computer service provider... technicians are randomly assigned jobs based on availability - so you might deal with 3-4 different techs during the resolution of your problem - they are what I would consider my main "corporate competition" IBC Computers - privately owned independent computer shop - average market position targeting home and business - operating in the city for nearly 20 years with decent location in a commercial shopping area - pretty mediocre website experience - average social media presence on Facebook - average brand recognition, mainly due to time in market - average to good review scores - above-average pricing, although rates not directly advertised - this is actually the store where my family bought their first new PC, and even interviewed me for a job once (turns out they had already filled the position... couldn't join 'em so I guess I'll have to beat 'em) Personal Computer Terminal - privately-owned independent shop - operating in the city since 1990 - decent downtown location close to university campus - doesn't really seem to target any specific portion of the market - extremely poor and outdated website experience - near-zero social media presence - despite a lack of engagement, customer ratings are still quite good - pricing is above-average and not directly advertised - brand recognition is poor - was not impressed when they insisted on selling me the wrong parts that I asked for, even after asking them to confirm the specs several times... this indicates either a lack of knowledge or attention to detail, which are both key to succeed in this industry Scott's Computer Emporium - newer business that opened in 2008, single proprietor - similar positioning - targets the individual and home market - had great location, but is now moving to a relatively poor one in comparison (shout outs to COVID-19 for influencing this decision) - decent website experience, but breaks when using a browser than blocks ads and popup windows - great social media presence with regular updates and engagement - great customer reviews and ratings - average yet growing brand recognition - average pricing e.g. $75/hr on-site consultation rate - I have no personal experience dealing with this guy, but all sources indicate friendly, high quality and professional work with great communication... I see him as my most direct competitor due to his "for the people" target market and lower pricing model It's easy to see which areas each business excels or lacks in, and this list has given me a better idea of the things to focus on when building my business in order to compete locally and capture some of that juicy market share for myself. Onward!

[brandonbaki]

Message Map

I created an example message map for a pitch based on Apple Inc.

[brandonbaki]

Strengths and Weaknesses

Today I took the online “Entrepreneurial Potential Self-Assessment” survey made by the Business Development Bank of Canada, and the results were a little disappointing.  Apparently, my personality manages to score below average in EVERY SINGLE CATEGORY of what makes a successful entrepreneur! So I wanted to list some of the things I have going for me, and some of the things I need to work on, aka my strengths and weaknesses.

Let’s start with the positives first, some of my strengths are: PERSISTENCE – When I set my mind to fixing something or solving a problem, I keep at it until I’ve found a solution. I hate “admitting defeat” when it comes to things that I’m dedicated to completing. ANALYTICAL AND DIVERGENT THINKING – I analyze all the different approaches to a situation and will choose the one that I believe will work best overall, even if it’s not the way things are usually done. NEGOTIATION – I have a knack for getting the most value for my dollar, and knowing the factors that contribute to how different groups of people determine what they consider a “fair price”.

Some of the areas I can improve in are: STRESS MANAGEMENT – My focus and productivity drop off when I’m under constant pressure and stress.  I should look for ways to practice getting better at handling tough situations. DELEGATION OF CONTROL – I like to have control over all the details of any job or plan I’m involved in, but I’m going to have to learn how to delegate some of these aspects to others in order to grow as a business. PATIENCE – We all want results quickly, and I am guilty of rushing my expectations at times.  I will need to remember that Rome wasn’t built in a day, and neither will the empire I build for myself :)