A tech support business is a business that provides technical assistance and support to individuals and organizations in solving their computer, software, and technology-related issues.
This type of business typically offers services such as troubleshooting, diagnosis, repair, installation, and maintenance of computer hardware, software, and networking equipment. Tech support businesses may operate as a standalone service, or as part of a larger IT company that provides a range of technology services.
The tech support business is in the technology industry and available data shows that the global market for tech support services is estimated to be valued at US$ 66.3 billion in the fiscal year 2023, up from US$ 63 billion in the fiscal year 2022.
The market is predicted to increase at a 5.3 percent CAGR from 2023 to 2033, reaching a value of US$ 111 billion by the end of 2033.
Steps on How to Start a Tech Support Business
1. Conduct Market Research
Conducting market research is crucial for a tech support business to understand its target market, competition, and industry trends. You should start by identifying the types of customers you want to target. This could include individuals, small businesses, or large enterprises.
Next, you should look for industry reports and publications to identify trends in the tech support industry, such as new technological developments, emerging customer needs, and changes in customer behavior. Research and analyze your competitors to understand their strengths, weaknesses, and the services they offer.
This can help you identify gaps in the market and opportunities to differentiate your business. You are also expected to conduct surveys or interviews with potential customers to gather insights on their needs, preferences, and pain points related to tech support services.
Analyze the data collected from your research to identify key trends, opportunities, and threats to your business. Use this information to develop a strategy for your tech support business, including pricing, marketing, and service offerings.
Lastly, you are expected to test your strategy in a small market before expanding to a larger customer base. This can help you identify areas for improvement and adjust your approach accordingly.
a. Who is the Target Market for Tech Support Business?
- Anyone who needs help with their personal technology devices such as laptops, desktops, smartphones, tablets, and other smart devices.
- Small businesses
- Large enterprises
- Non-profit organizations
- Educational institutions.
b. Is Tech Support Business a Profitable Business?
Yes, the tech support business is a profitable business. Available data shows that the market is predicted to increase at a 5.3 percent CAGR from 2023 to 2033, reaching a value of US$ 111 billion by the end of 2033.
c. Are There Existing Niches in the Industry?
No, there are no niche ideas when it comes to tech support business.
d. Who are the Major Competitors?
- Accenture
- AT&T
- Cisco Systems
- Comcast Business
- Dell Technologies
- DXC Technology
- Geek Squad (Best Buy)
- HCL Technologies
- HP Enterprise Services
- IBM
- Infosys
- Microsoft
- NCR Corporation
- Oracle Corporation
- SAP America
- TATA Consultancy Services
- Tech Mahindra
- Unisys Corporation
- Verizon Communications
- Wipro Limited.
e. Are There County or State Regulations or Zoning Laws for Tech Support Businesses in the United States?
Yes, there are county and state regulations, as well as zoning laws that apply to tech support businesses in the United States. These regulations may vary depending on the state and county in which the business is located, and they may include requirements related to licensing, permits, zoning, taxation, and other business-related activities.
For example, some states require tech support businesses to obtain a license or certification in order to operate, while others may require permits for certain types of activities or equipment. Zoning laws may also apply, dictating where the business can be located and what types of activities are allowed in certain areas.
f. Is There a Franchise for Tech Support Business?
Yes, there are franchise opportunities for tech support businesses and some of them are listed below;
- Computer Troubleshooters
- TeamLogic IT
- CMIT Solutions
- Geeks on Call
- CPR Cell Phone Repair
- Experimac
- Device Pitstop
- uBreakiFix
- NerdsToGo
- The Utility Company.
g. What Do You Need to Start a Tech Support Business?
- Business plan
- Legal structure
- Licenses and permits
- Standard office facility in a suitable location
- Equipment and working tools
- Employees
- Funding
2. Choose a Memorable Business Name
When looking to start a business, before you can begin to file the necessary documents with the constituted authorities or start your website, it is necessary that you come up with a name that you will be recognized with. It is essential that the name you come up with can easily be pronounced, is unique and easily memorable.
Some of the catchy business name ideas suitable for a tech support business are;
Creative Tech Support Business Name ideas
- Misty May-Treanor® Tech Support, Inc.
- Kerri Walsh Jennings® Tech Support Company, LLC
- Karch Kiraly™ Tech Support, Inc.
- Logan Tom® Tech Support Company, LLC
- April Ross® Tech Support, Inc
- Phil Dalhausser® Tech Support, Inc.
- Todd Rogers® Tech Support Company, Inc.
- Nicole Davis™ Tech Support Company, LLC
- Jordan Larson© Tech Support Company, LLC
- Kim Glass® Tech Support Company, Inc.
- Sean Rooney™ Tech Support Company, Inc.
- Lauren Fendrick® Tech Support Company, Inc.
- Taylor Sander® Tech Support Company, LLC
- David Lee® Tech Support Company, LLC
- Brittany Hochevar® Tech Support Company, Inc.
- Casey Patterson® Tech Support Company, Inc.
- Christa Harmotto© Tech Support Company, LLC
- Brooke Sweat® Tech Support Company, Inc.
- Ryan Doherty® Tech Support Company, Inc.
- Jake Gibb© Tech Support Company, Inc.
3. Register Your Business
a. What Type of Business Structure is Best for Tech Support Business?
The best type of business structure for a tech support business depends on several factors, including the size of the business, the number of owners, and the level of personal liability exposure the owners are willing to accept. However, we usually recommend a limited liability company (LLC) for tech support businesses.
An LLC is a popular choice for startup businesses because it offers personal liability protection for the owners while allowing them to be taxed as a pass-through entity. This means that the profits and losses of the business are passed through to the owners’ personal tax returns, avoiding double taxation.
b. Steps to Form an LLC
- Choose a Name for Your LLC.
- File Articles of Organization.
- Choose a registered agent.
- Decide on member vs. manager management.
- Create an LLC operating agreement.
- Comply with other tax and regulatory requirements.
- File annual reports.
c. What Type of License is Needed to Open a Tech Support Business?
- Business License
- Building permit
- Fire safety license and permit
- Professional license
- Zonal permit.
d. What Type of Certification is Needed to Open a Tech Support Business?
- CompTIA A+ Certification
- Microsoft Certified Solutions Associate (MCSA)
- Apple Certified Support Professional (ACSP)
- Cisco Certified Network Associate (CCNA)
- Certified Information Systems Security Professional (CISSP)
- Dell EMC Proven Professional
- ITIL Foundation Certification
- VMware Certified Professional (VCP)
- Amazon Web Services (AWS) Certified Solutions Architect
- Google IT Support Professional Certificate.
e. What Documents are Needed to Open a Tech Support Business?
- Business plan
- Business License
- Employer Identification Number (EIN)
- State-specific licenses and permits
- Building permit
- Fire safety license and permit
- Professional licenses and certification
- Zonal permit
- Insurance policies
f. Do You Need a Trademark, Copyright, or Patent?
Actually, a tech support business may require trademark, copyright, or patent protection depending on the specific circumstances. A trademark could be used to protect a business name, logo, or slogan. Trademark protection is important because it helps to prevent others from using a similar mark that could confuse customers.
Copyright protection can be used to protect software code, user manuals, or other written materials created by the business.
Copyright protection gives the owner the exclusive right to reproduce, distribute, and display the work. A patent could be used to protect a unique software program or other technology developed by the business. Patent protection gives the owner the exclusive right to make, use, and sell the invention for a limited period of time.
4. Cost Analysis and Budgeting
a. How Much Does It Cost to Start a Tech Support Business?
When it comes to starting a tech support business, the startup costs can range from as low as $10,000 to over $100,000.
b. What are the Costs Involved in Starting a Tech Support Business
- Business Registration Fees – $750.
- Legal expenses for obtaining licenses and permits – $1,800.
- Marketing, Branding, and Promotions – $2,000.
- Business Consultant Fee – $2,500.
- Insurance – $2,800.
- Rent/Lease – $60,000
- Other start-up expenses include commercial satellite TV subscriptions, stationery ($500), and phone and utility deposits ($1,800).
- Operational Cost (salaries of employees, payments of bills et al) – $60,000
- Store Equipment (cash register, security, ventilation, signage) – $2,350
- Equipment, Furniture, and Software – $10,000
- Website: $1,200
- Opening party: $5,000
- Miscellaneous: $5,000
c. What Factors Determine the Cost of Opening a Tech Support Business?
- The size of the tech support business
- The choice of location
- The required licenses and permits
- The cost of hiring and paying a business consultant and attorney
- The cost of branding, promotion, and marketing of the tech support business
- The cost of furnishing and equipping the tech support office facility
- The cost of the insurance policy covers
- The cost of registering the business
- Cost of recruiting and training your staff
- The cost for the purchase and customizing of uniforms
- The cost for the grand opening of the tech support business.
d. Do You Need to Build a Facility? If YES, How Much Will It Cost?
No, you don’t need to build a new facility for your tech support business. This is so because it is a business that you can operate from a rented or leased office facility. As a matter of fact, you can operate a tech support business from a shared office facility.
e. What are the Ongoing Expenses of a Tech Support Business?
- Employee salaries and benefits
- Rent and utilities
- Equipment and supplies such as computers, software, and peripherals, as well as office supplies such as paper, ink, and pens.
- Marketing and advertising
- Professional development
- Insurance
- Taxes
- Maintenance and repairs
- Software licenses.
f. What is the Average Salary of your Staff?
- Chief Executive Officer (Owner) – $120,000 per year
- HR Manager- $60,000 per year
- Tech Support Staff – $60,000 per year
- Account Manager – $52,000 per year
- Business Development Manager- $50,000 per year
- Administrative Assistant – $35,000 per year
- Customer Services Executive – $32,000 per year
g. How Do You Get Funding to Start a Tech Support Business?
- Raising money from personal savings and sale of personal stocks and properties
- Raising money from investors and business partners
- Sell shares to interested investors
- Applying for a loan from your bank/banks
- Pitching your business idea and applying for business grants and seed funding from the government, donor organizations, and angel investors
- Source for soft loans from your family members and your friends.
5. Write a Business Plan
a. Executive Summary
Tech Pro® Tech Support Company, Inc. is a tech support company based in Silicon Valley, San Francisco Bay Area in Northern California, United States that specializes in providing top-notch tech support services to businesses and individuals.
Our team consists of highly skilled and experienced technicians who are dedicated to providing excellent customer service and resolving technical issues promptly and efficiently.
At Tech Pro® Tech Support Company, Inc., we understand that technology plays a critical role in today’s businesses and personal lives, and we are committed to helping our clients make the most of their technology investments. Our team is constantly updating our skills and knowledge to stay on top of the latest technological advances and trends.
We are confident that our exceptional customer service, technical expertise, and commitment to excellence will set us apart from our competitors and make us the go-to tech support company for businesses and individuals in the United States.
b. Products and Service
Our services include computer repair, network support, data recovery, virus removal, and software installation. We offer both on-site and remote support to ensure that our clients receive the help they need when they need it. Our clients can rely on us to provide 24/7 support, and we pride ourselves on our fast response times and high-quality service.
c. Mission Statement
Our mission is to provide top-quality tech support services to businesses and individuals, helping them navigate the complex world of technology with ease. We strive to deliver unparalleled customer service, timely and effective problem-solving, and proactive solutions to ensure our clients can focus on their core business activities with confidence.
Vision Statement
Our vision is to be the leading provider of tech support services in the industry, recognized for our exceptional customer service, technical expertise, and innovative solutions. We aim to build long-lasting relationships with our clients, earning their trust and loyalty by consistently exceeding their expectations.
d. Goals and Objectives
The goals and objectives of a tech support business are to ensure that clients’ technology systems are functioning optimally and efficiently, with minimal downtime and interruptions.
e. Organizational Structure
- Chief Executive Officer (Owner)
- HR Manager
- Tech Support Staff
- Account Manager
- Business Development Manager
- Administrative Assistant
- Customer Services Executive.
Marketing Plan
a. SWOT Analysis
Strength:
- Technical expertise and knowledge
- High-quality customer service
- Strong reputation and brand recognition
- Established client base
- Skilled and experienced staff
- Robust processes and systems.
Weakness:
- High employee turnover
- Limited geographic reach
- Overdependence on a few key clients
- Inability to keep up with rapid technological advancements
- Lack of diversification in service offerings
- Limited marketing and advertising efforts.
Opportunities:
- Increasing demand for tech support services
- Expansion into new geographic markets
- Development of new services and products
- Partnerships with other technology companies
- Growing trend towards remote work and virtual support
- Use of automation and artificial intelligence to improve efficiency.
Threat:
- Increasing competition in the tech support industry
- Economic downturns or recessions
- Rapid technological advancements making skills obsolete
- Cybersecurity threats and data breaches
- Dependence on third-party vendors and suppliers
- Government regulations and compliance requirements.
b. How Does Tech Support Business Make Money?
Tech support businesses make money by charging clients for their services, which can include a variety of activities such as troubleshooting, installation, repair, maintenance, and consulting.
c. Payment Options
- Credit or Debit Card
- Cash
- Electronic Payment Systems such as PayPal or Venmo
- Checks
- Bank Transfers.
d. Sales & Advertising Strategies
- Encourage satisfied clients to refer your services to others in their network. Offer incentives for referrals, such as a discount on services or a referral bonus.
- Use social media platforms such as LinkedIn, Twitter, and Facebook to showcase your services and expertise. Create engaging content that highlights your knowledge of the industry and your success stories.
- Optimize your website and blog content for search engines to increase visibility and generate leads.
- Creating informative and engaging content, such as blog posts, e-books, and webinars
- Build an email list of potential clients and candidates and send regular newsletters and updates.
- Attend industry events, conferences, and trade shows to meet potential clients. Participate in industry associations and organizations to establish credibility and build relationships.
- Use targeted online advertising on platforms such as LinkedIn and Facebook to reach potential clients
- Partnering with other companies, such as hardware or software vendors, can help you generate new leads and sales for your tech support business.
Financial Projection
a. How Much Should You Charge for Your Product/Service?
The cost of tech support services can vary widely depending on the specific services provided, the geographic location, the level of expertise required, and the pricing strategy of the tech support company. In the US, hourly rates for tech support services can range from $50 to $200 or more, depending on the factors mentioned above.
b. How Much Profit Do Tech Support Business Owners Make a Year?
According to data from PayScale, the average salary for a small business owner in the technology industry is around $72,000 per year. However, it is important to note that this figure can vary widely depending on the size and success of the business.
c. What Factors Determine the Amount of Profit to Be Made?
- The capacity of the tech support business
- The service offerings of the tech support business
- The location of the tech support business
- The management style of the tech support business
- The business approach of the tech support business
- The advertising and marketing strategies adopted by the tech support business.
- The number of years the tech support business has been in business
d. What is the Profit Margin of a Tech Support Business Product/Service?
On average, the profit margin for tech support products ranges from 25% to 35%, depending on the location, and service offerings.
e. What is the Sales Forecast?
Below is the sales forecast for a tech support business. It is based on the location of the business and other factors as it relates to such startups in the United States.
- First Fiscal Year (FY1): $450,000
- Second Fiscal Year (FY2): $650,000
- Third Fiscal Year (FY3): $950,000
6. Set Up your Shop/Office
a. How Do You Choose a Perfect Location for Tech Support Business?
- The demography of the location
- The demand for tech support services in the location
- The number of corporate organizations, medium and small-scale businesses in the location
- Accessibility of the location
- The number of tech support firms and recruitment agencies in and around the location
- The local laws and regulations in the community/state
- Traffic, parking, and security et al
b. What State and City is Best to Open a Tech Support Business?
- San Francisco, California
- New York City, New York
- Houston, Texas
- Chicago, Illinois
- Atlanta, Georgia
- Boston, Massachusetts
- Dallas, Texas
- Los Angeles, California
- Washington, DC
- Seattle, Washington.
c. What Equipment is Needed to Operate a Tech Support Business?
- Computers
- Internet Connection
- Phone system (landline, VoIP service, or a cell phone.)
- Remote support software (TeamViewer, LogMeIn, and RemotePC.)
- Helpdesk software (Freshdesk, Zendesk, and Jira.)
- Backup solutions such as an external hard drive, cloud storage, or a backup service.
- Accounting software (QuickBooks, Xero, and FreshBooks)
- Office equipment such as computers, headsets, printers, scanners, and office supplies to manage bookings and finances.
7. Hire Employees
Although it is possible to run a tech support firm as a one-man show, if you want to build a business that will grow, then you should consider hiring key employees to occupy various positions in your organization. The truth is that hiring employees can allow you to take on more clients and increase your capacity for delivering high-quality work.
The bottom line is that whether you want to hire employees or not depends on your business needs and goals. If you are looking to grow your business, expand your services, and take on more clients, hiring employees may be a good option.
- Launch the Business Proper
Organizing an opening party for a new tech support business can be a good way to introduce your business to the community and create awareness about your services. However, whether to have an opening party or not to have is ultimately a decision that depends on your individual business and goals.
If you want to organize a proper launch for your tech support business, then you must make sure to invite potential clients, key stakeholders, and other members of the community who may be interested in your services.
a. What Makes a Tech Support Business Successful?
- Being consistently reliable
- Excellent customer service
- Efficient operations
- Compliance with regulations
- Hiring skilled and knowledgeable employees and providing ongoing training that will ensure you deliver high-quality services.
b. What Happens During a Typical Day at a Tech Support Business?
- The office is open for the day’s work
- Routine staff meetings, briefing, and de-briefing
- The core duties are carried out which may include troubleshooting, diagnosis, repair, installation, and maintenance of computer hardware, software, and networking equipment.
- Administrative tasks such as scheduling appointments, billing, invoicing, and managing supplies and equipment.
- The business is closed for the day.
c. What Skills and Experience Do You Need to Build a Tech Support Business?
- Technical expertise
- Project management skills
- Excellent customer service skills
- Attention to details
- Interpersonal skill
- Time management skills
- Business management skills
- Problem-solving skills
- Work experience in the tech support industry
- Experience in managing people
- Experience in business administration.