Tips For Starting A Technology Company
Running a company can be tough. Running a technology company can be hard and expensive if you don’t do it correctly. When it comes to technology companies you are constantly fighting the clock for the bigger better deal in technology gadgets. What is hot one day will eventually be outdated so keeping up can be a challenge.
The first thing that you want to do is find a good set of distributors. Some that you might want to look into are silicon wafer suppliers as well as general technology distributors. When you find a good list of suppliers it will be your job to vet these companies and make sure that their products are good and that you are really getting the best deal.
You want to start with test orders. You want to take a thousand dollars or so and purchase a few items that will have good markup and profit to them. You will then want to test your local market and see if you can sell them. You never want to invest all your money in one company or in one single product.
You want to start small with your products. When you have a lot of inventory you are stuck with it until it sells. If you have to sit on the inventory for a long period of time you could lose money since the market has changed. This is why you want to start small and build up from there.
Don’t go with the fads as your main business model
In technology there will be products that will hit the market that everybody wants. The problem with this is that they will only last a short period of time. For this reason, you don’t want to base your entire business on this. You want to focus on making some extra cash with these items but focus on services as your primary income.
With services you can make a lot of money because most of it is profit. When we charge for a specific service such as a system restore we could charge one price in labor, pay our technician ten or twenty percent of that amount and the rest is pure profit.