Computer repair franchises can be huge investments, both in terms of money and time. But they can provide you, as the future owner a great deal of benefits not available to other entrepreneurs. Before you envision the possibilities of your franchise, you have to do a careful cost analysis.
Some computer repair franchises don’t offer help with finding location, but some do. Make a careful list of travel expenses, market data, competitive analysis and other real estate-related costs.
Since your potential building landlord will need a deposit for leases and property, you will need to take this into account when detailing your budget. But don’t forget to also include the costs of business licenses, phone and utility deposits.
ARCHITECTS, CONTRACTORS, LANDSCAPERS AND OTHERS
Sometimes entrepreneurs investigate locations for franchises that haven’t yet been built. If you are looking at an unbuilt franchise, make sure you don’t miss hidden costs. Certainly you will have to pay architects and contractors, but what will you pay them to do? It will cost you extra money to have them prepare drawings and also make lists of materials they will need to start construction.
Once construction begins, the real cost enters the picture. Physically building your franchise will of course cost a significant amount of money and time in man-hours. Landscaping will become an issue at this point as well; you will need built-in items such as sprinkler systems. Even if you are leasing a space, you will need to consider repairs, improvements and general redesign to fit your particular franchise.
Once you’ve taken care of the franchise building from the outside, you will need to envision what is going to go inside. Desks, chairs, computers, telephones and decorations will need to be either leased or bought.
Your best-case scenario for insurance as a computer franchise owner will be that you only need to pay a deposit for premiums. But many insurance requirements will demand that you pay up-front for the first year. You will need to include everything from auto to worker’s compensation and property or casualty.
Working capital will cover the cost of start-up for most computer repair franchises, but you should expect not to make a profit for at least the first few months. Regardless, you should seek the advice of an accountant or trained financial expert before embarking on your exciting venture.
Blogged By: Computer Consulting 101 Professional Kit