Start a business in the Keys?

An idea that came across my desk that is possible to a point.

It is no secret that I am having a rough time in finding work.  A real rough time.

The idea was to start a business in the Keys.  That would be an undertaking.  OK, let's discuss.

First and this holds true for anyplace where you would want to start up your own business.  There are some major facts that cannot be ignored.

One is that you need a product or service that people would want.  Since I am a network engineer and computer support specialist I think that I have a marketable commodity already.

Next, what is the competition like?  If the area is heavily populated and there are one or two other computer service places, then there might be an opportunity.  But with remote administration you really do not need to be in the area which means I can setup shop now from Long Island.  You can work on a  person's hundreds of mile away.  And a lot of that is going on now.  If the area is sparsely populated there would be little call for local computer service and the volume of service calls would be limited.  There would be next to no competition there for that reason.  But in any case research needs to be conducted.

Computers are becoming a disposable commodity.  Today you can buy a PC for about $500 and if it dies, no big deal.  Don't fix it, toss it and buy another machine that has more power for the same price.  So this brings about another question, how many people actually have their computers repaired?  But in a business environment they like to keep their systems as long as possible, generally 3 years.

Of course in a business environment with several users, there could very well be a server or several servers on site that need attention and those are not replaced as often.  Figure 5 to 8 years could be considered the life span of a server.  So there is potential there.

Setting up shop is another big concern.  Should I operate out of the house / apartment or rent a store front?

With a store front would give visibility and help drive in business.  Besides rent there would be a concern that extra utilities need to be paid, insurance, the fear of break in and theft, the possibility of hiring help which of course would have to come after being established.  And where the location of the store front is a major factor.  It is always best in a high traffic zone, but looking at the few webcams in Key West it looks like Duval Street has the highest traffic but that is mostly tourists.  I doubt that a tourist would have need of computer support services unless they want to buy a PC.

Working out of the home saves the headaches of the overhead that a store front brings.  But would zoning laws permit a home based business?  And without traffic getting customers / clients is another issue.  No clients = no money = no business.

Another downfall is how people would react to a home operation?  Most could feel that it is a fly by night type of operation where a store front has the air of legitimacy.   Granted a store front business can be a slime ball but to the customer's eyes they feel more comfortable with a store front.

Next thing is should I run it as a sole proprietor or as a corporation?  In this sue happy society having a corporation would give my personal assets some level of protection from being sued.  But here research again needs to be done to see what the exact laws in Florida are on this.

From what I have seen there would be no need for any special state licenses to run a computer business there.  That is one less headache.

Taxes and filings are a big issue no matter which way I go.  Should I hire a CPA or not?  In NY you really do not need one and can do everything yourself.  You just have to be careful in how the forms are filled out and make sure that the sate get's their cut.  Even with a CPA, you are liable for everything so a CPA might not be needed.  Again Florida might have a regulation on that.

Now the biggest thing to deal with and that brings us back to the equation, No Customers = No Money = No Business.  How to get the clients?  Word of mouth is the best way to get business.  Advertising brings about only 10% of the revenue.  So building a client base will take time.  Can I afford that time especially since I would be a stranger to the Keys and no one knows me.  Building trust is a primary key there in the Keys.  That would be a hard nut to crack.

Now let's mix it up a bit, what if the computer industry would not fit in?  I was told that the main source of income there is hospitality.  Hotels, restaurants, bars, etc.  Should I go in that direction or what?

Of course working capital is a must have.  Obviously I will need to tap my savings but I might even have to go to a bank for a business loan.  Not only would I need capital for the start up costs but money to live on until the business takes off.  How long would that be is anyone's guess.

A lot to think about.

'till next time