What Business Should I Start?. Rhonda Abrams

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technology purchased by businesses (and even some consumers) is highly complex and customizable and needs to be tailored for the end-user.

      Think, for instance, of the computerized dispensing system used at your pharmacy, or the new digital sound system at your local movie theater, or the computer system at your local restaurant. Chances are, each of these systems was sold and installed not by the manufacturer, but a value-added reseller who specializes in those specific products and that specific industry.

      VARs, like consultants, often choose a particular market niche based on past experience with the industry. If, for instance, you used to work for a printing company, you probably have inside knowledge about the various technologies used at modern printing presses. So you might decide to become a VAR of high-end drum scanners (used by print shops for preparing photographs for press).

      You’ll contact a number of different scanner manufacturers, interview them to learn about their reseller programs, take advantage of any training programs they offer, then go out and start looking for customers. Since you don’t work for the manufacturers, you’re not necessarily bound to sell just their products, which gives you the flexibility of providing customers with a variety of options, based on price and need.

      The key to success as a VAR is maintaining good relationships with the manufacturers you rely on. Some VARs complain that manufacturers take them for granted, compete with them, don’t offer good support, fail to price competitively, and more. So it’s important to thoroughly research manufacturers before you agree to represent their products. And once you sign on, remember that the squeaky wheel gets the oil!

       You may be this E-Type if . . .

      1.You’re a problem-solver. You love to figure things out. You’ve got an analytical mind.

      2.You like “things.” This doesn’t necessarily mean you don’t like people. It’s just that you enjoy puttering and playing with equipment. Everyone knows what to give you for your birthday—the latest gadget—whether it be electronic components, computers, auto parts, boat engines, or bike equipment.

      3.You have specific skills and/or experience working with technology, electronics, engines, or other equipment.

      4.You’re patient—at least when it comes to working with equipment. You may not be so patient with people.

      5.You’re curious and creative. You’re entranced by how things work. If there’s a brand new piece of equipment or software program, you want to own it and figure out how it works. If it’s been around for awhile, you want to see how you can improve it.

      6.You have a long attention span, especially when solving problems. You’re capable of working alone for hours at a time. But you often block out the “real world.” You’re the one who didn’t notice the pot burning on the stove or the baby screaming; your attention was entirely focused on the computer problem you were trying to solve.

       This E-Type’s secrets & strategies

      

Get certified. Although you don’t necessarily need a specific educational background or certification to start your own technology or engineering business, qualifying for certification or membership in professional societies gives you a competitive edge with some clients. There are many certification programs, especially in specific computer software programs and hardware skills, which give you credibility when marketing your services.

      

Work on your communication skills. Yes, you’re going to be hired for your technical abilities. But you’re going to need to be able to convey technical information to your clients in terms they can understand, and without making them feel “dumb.” Just as important as your verbal skills are your written ones—you’ll be asked to write proposals, project specifications, needs analyses, user documentation, and the occasional thank you note, so if you’ve always struggled a bit with writing, now’s the time to take a quick course at your community college.

      

Be clear about your fees and pricing. While there’s a huge need for technologists and engineers, clients often don’t know what to expect to pay for such services. A person who’ll pay thousands of dollars for home audio equipment may be surprised to get billed a few hundred dollars for installation or repair.

      

Be reliable. You’re well aware that techies (along with building contractors!) often get a bad rap for missing deadlines. Be the exception, not the rule: you’ll keep your customers happy.

       Watch out for . . .

      

Being a full-time worker without benefits. Many companies attempt to avoid paying for benefits and taxes by hiring contract workers instead of permanent employees. While this may be a good source of income for you, especially when you’re just starting out, you need to keep two things in mind. First, you are responsible for all your taxes and benefits (such as health insurance) and, often, your own equipment. These can add up to a lot of money. Consider these costs when you set your price or you’re going to have an unhappy surprise when it comes time to pay taxes. Second, you’ll be working for one “client.” If they decide to cancel your contract, you won’t get unemployment insurance or have any other protections.

      

Getting enraptured by stuff that is cool, but which can’t bring you sufficient income. As a techie, you probably like hanging out on the bleeding edge of technology. The reality is, most customers do not. They want to know that the product you’re selling them is stable, reliable, and proven. If you’re a VAR or consultant, this may mean focusing on products that are a generation or two behind the leaders—but that may be where the money is. Likewise, if you’re developing a product from scratch, make sure there’s a market for it in the “real” world—not just among other techies!

       Obvious (and Not-So-Obvious) Business Choices for This E-Type

      

Software developer/engineer

      

Home theatre designer/installer

      

Network/system administrator

      

Environmental impact consultant

      

Structural engineer

      

Home appliance

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