Guys
I am thinking to start an IT company providing IT solutions (Infrastructure, web development, Support, Office relocation, cloud) to small and medium business. Just don't know if it will be good idea or bad idea. I have 10 years plus experience in IT and I do believe it is a good business. I understand there is lot of competition, lot of big players and more than lot small players
Any Suggestions?
Any Comments?
Any Ideas?
Looking for help from fellow OZbargainers ;)
Working with few BDMs who most likely will be assisting
As someone who started his own IT company 3 years ago - phunkydude asked the right question - do you have an existing network with on-going customers.
If you are starting from scratch looking for customers; you are going to struggle. The sale cycle in IT is usually long - 6 months to a year (atleast in the areas that I am in); so those BDMs won't get any new work for that period of time… you need to have an existing base right from the word go to keep the company going till the BDMs start building a pipeline and then closing deals.
How are you going to market yourself? I think that's the key.
Step 1 - go on ozbargain and ask for help
Step 2 - ?
Step 3 - profit
Don't worry i will figure out Step 2!! :p
Bikies….?
I have done the business plan, Marketing strategies, have made list of small business / competitors, done the market research and chose the niche market i will be working this.. Working with few BDMs who most likely will be assisting
was wondering if I am missing anything
Sounds good OP go start your IT career.
You're starting a killer clown company?
"disrupting markets"
But seriously, I think this market is over saturated. In the past 6 months, I know of 3 other people that have started doing something similar. Whenever there's a job cut at IT companies, this is the first thing that a lot of people start up
Oh and out of those 3 people, 1 has already shut up shop
Tell me about it. Every second kid out of TAFE wants to do IT because they like Gaming. Too bad it's near impossible to get a job without experience or knowing the right people. Definitely far too many companies around.
Yeah but I am not leaving my Job :) and company wont be doing a Job cut anytime soon.. it is just an thought still in initial stages :)
What? I didn't ask if you were leaving your job
I said whenever there's a job cut at any IT company, not yours, a lot of people start up an "IT consultancy" company
It's a flooded market and you either have to be really good and have a truck load of connections, or offer something that no one else has on the market right now and based on your description, it sounds like a generic IT company… IMO
Start providing innovative solutions like big data, block chain etc if you want to survive.otherwise market is already flooded ..
This is very risky market and as others mentioned flooded.
Even relatively established IT MSP's are not making it through 2017.
https://www.crn.com.au/news/wollongong-it-solution-provider-…
There's alot more but this was a more recent one.
Hire me
Suggestion: dont.
There are enough of these companies. How will you retain your employees past threatening them with non competes?
Office relocation
We are moving office soon. Need someone to move desks and filing cabinets. When can you start?
I was planning to start my own ISP recently to cash in on the $50 per blocked url deal but it turns out that smaller ISPs are generally excluded. Back to the drawing board…
Does that mean I get my torrentz through you?
Sorry, my business plan didn't involve having any actual customers.
Ah, a bit like the OPs, from the sound of it! ;P
Hey OP, have you tried ringing Buzz Telco? I hear they are in need of some competent IT people.
It’s a bloodbath out there.
Been a sole trader in IT for 13 years. Had aporox. 6 years IT experience before I went into business for myself. If I had to rely solely on my own customer base id struggle. I survive as I have a few other companies that I do some sub work for. They provide enough work for me to make working for myself worthwhile. Biggest issue is juggling all clients and keeping everyone happy. Also be prepared to never switch off from work. When you have your own client base you have to be available pretty much all waking hours and maybe 24/7 if you have larger clients. I struggle to take time off as I have no backup if I'm not around. If you plan on going larger than just yourself then that obviously won't be an issue but then you have yo worry about having enough work to pay employees. Not something I have ever wanted to do. If you don't have an established network of clients you can canvas be prepared to slow growth.
Be brave and execute
Ensure you have a strong plan, differentiation, and only hire quality people
If you're after a mentor I work at one of the big players
I"m considering the jump I'm just trying to establish a niche before I take the dive… The Niche will be something spatial but which niche is my question..
I'd also consider buying someone's half started company.. Problem is most are half started for a reason..
First you need a cutting edge name, like Cutco, Edgecom, Interslice…
I would warn against diversifying into too many areas - IT seems to be the generic term to cover a lot of things these days. Have you found your IT niche yet? If you cannot be available when needed (because of your day job) then I would suggest thinking of an alternative, or building your niche around this (i.e. after hours callouts?) because customers aren't going to be happy hearing they have to wait until you have a night free after work to come see them…
If you aren't an expert in some areas, hire someone who is or be happy to openly recommend and work with a company that is (and this leads to reciprocal leads too). As a web developer most of my company's work comes from unsatisfied customers with shitty websites built by someone with 5 minutes experience in Wordpress or Squarespace. Usually this strains their relationship with their original IT provider (if they are still in business) to the point of them asking if we can recommend them a new IT provider.
Best of luck
Totally agree, Thanks for the advice. I do believe in Reciprocal leads as you cannot be expert in range of IT services so you pass on work or recommend someone who is expert. Not only your client will be happy with the transparent advice but also help in building relationship
As others have said, it's a tough business to be in. There is a lot of good advice here, read it carefully. I believe that while competition is fierce, there is plenty of business to be had - but it's all about your ability to sell yourself above others. You really need to figure out how you are going to consistently get enough business to survive/grow. I had my own IT business for nearly 20 years. Things have changed a lot over that time and you have to be able to adapt quickly with trends. If you really enjoy being "on the tools", then I would suggest not going into business for yourself unless you don't plan on growing beyond being a single operator. You need to spend more time (or at least as much) on sales/quoting, accounts, client management, research, keeping up to date, and admin than on doing the work itself if you plan on growing it into something larger and once you do that, prepare to put all your staff ahead of you. Everything you pay to someone else (i.e. employees) comes out of your own pocket.
You don't necessarily make more money in your own business than in a job, and you definitely have a lot more to worry about. Have a plan for all that, don't spread yourself too thin, and above all else, choose your clients well and charge market rates (too many people don't charge enough so they can get the client on the basis of price. This is not a good long-term solution.) I'm all for people going out there and giving it a go, but do it with eyes open. Speak to others that have done it and try to jump ahead by learning from other people's mistakes.
I would suggest you check out https://mytechnologybusiness.com/. It's run by my old business partner. It's a great community of people doing exactly what you're trying to do and they would have a lot of insights to give you.
I am not sure where you're located, but I would also recommend joining an industry group like SMB IT Pro http://www.smbitpro.org/ where you can network with other IT business owners. I think they have a chapter in most states. Good luck, I hope it goes well if you decide to jump in.
Thanks for the suggestion .. much appreciated
Honestly, you need to be running a decent MSP software package and using it to sell services on a monthly subscription model, with an annual contract. You can start with month to month contracts to prove yourself to a new client and then move them to an annual contract. You don’t need to spend a small fortune on something like Kaseya, but central, automated monitoring and scripting means that you can scale up quickly and still provide a good service. I’d also highly recommend that you complete some basic MS Server and Office 365 MCP certifications. I’m sick of seeing dodgy server installs from someone with “years of experience” but no idea of best practices. CBT Nuggets have some AWESOME video courses that you can listen to in the car and get heaps of out them. Remember, when you want to sell the business one day, it’s only worth as much as the service contracts you have in place. Goodwill is nothing when selling as there’s no guaranteed income for new owners, and the customers can just leave the next day. Sorry if the grammar isn’t the best coz I haven’t had time to proof read :)
Hi Thanks for suggestion .. I completed MSCE, MCP, MSTS, MSCA, CCNA, CCNA V2, CCNP during these years
Sweet :) All set then!
"10 years plus experience"
Have you built up your network/connections with on-going customers ?
Don't ever start with a blank page.