Pros & Cons

Start A Tech Support Business

Pros & Cons

Trying to understand the pros and cons of starting a tech support business?

Here are all of the pros and cons of selling tech support online:

Pros Description
Ability to start your business from home It's not necessary to have a physical storefront or office space to get your business started. You can do everything from the comfort of your own home, at least in the beginning!
Little startup costs required The cost to start a tech support business costs significantly less money than most businesses, ranging anywhere from 6,517 to 46,494.
Rewarding work Starting a tech support business can be really rewarding work. After all, you are solving an immediate issue for your customer and you're working on something you truly care about.
Scalable With businesses and processes changing daily, there will always be demand for new features, products and services for your business. Additionally, there are several different business models and pricing tiers you can implement that will allow you to reach all types of customers.
High margins The gross margins for your tech support business are typically around 54%, which is considerably high and allows you to grow your business and manage costs easily.
Pick & choose the clients you work with Tech Support Businesses have the ability to choose the clients they work with. You have the freedom to work with only a few loyal clients or with hundreds of clients!
You are your own boss! With starting a tech support business, you are the one to make decisions for almost all of the operations. Calling the shots can be empowering and liberating!
Higher likelihood of getting referrals This business is all about referrals, which can be a a very impactful way to attract and retain customers. It's critical that you have a great referral program in place that incentivizes your customers to tell their friends about your product.
Face to face interaction If you are the type of individual that thrives on human interaction, then this is the business for you! With a tech support business, you will be hands-on with customers and or employees every day.
Simple business model A tech support business has the advantage of a simple business model, which makes launching and building the business more seamless.
Strong Demand & Relatively Recession Proof The demand for tech support business is increasing year over year and the business is known to be relatively recession proof.
High Hourly Pay Rates On average, the hourly pay rates are high for your tech support business - which means quality of clients is often superior to quantity of clients.
You establish yourself as an expert With starting a tech support business, you establish yourself as an expert in your niche, which builds your credibility. In return, customers are more likely to trust you and refer you to other friends and family.
Cons Description
Crowded Space Competition is high when it comes to your tech support business, so it's important that you spend a good amount of time analyzing the market and understanding where the demand lies.
Motivation of employees If you plan to have a sales/content team on board, finding creative ways to motivate them can be a challenge. It's important that you're able to offer great incentives and a good work environment for your employees.
Security Issues With any Saas business, data loss and security issues may arise throughout your process of building your product. It's critical that you understand exactly what you're responsible for and how to avoid potential issues down the road.
Isolation Often times, as a tech support business, you typically work alone and do not have much face-to-face interaction with other team members.
Stressful work This line of work can be stressful for both you and your clients. This type of transaction is a significant financial decision for your client, so expectations are very high for you. Although this career path can be very rewarding, it also comes with its challenges and stressful moments.
Time commitment With starting a tech support business, all responsibilities and decisions are in your hands. Although this is not necessarily a negative thing, work life can take over at times. This can place a strain on friends and family and add to the pressure of launching a new business.
Impatient customers You may offer an engaging user experience for your customer, but customers expect a lot and may be impatient if they aren't pleased with your product or service.
Be prepared to get out of your comfort zone! Although this is exciting for some entrepreneurs, it can be a big challenge for others! You may find yourself in uncomfortable social and business situations, jumping into tasks and responsibilities you aren't familiar with, and pushing yourself as far as you can go!
You might struggle financially (at first)! If you bootstrap your business or choose not to pay yourself (or pay yourself less than you were making at your corporate job), this can be financially taxing. It's important to adjust your lifestyle and set a plan for yourself so you don't find yourself in a stressful situation.
More of a challenge to run your business from home! Running your business from the comfort of your own home is a big appeal for many entrepreneurs. With a tech support business, you are more likely to run your business out of your office or storefront space.
Work is not always glamorous With starting a tech support business, you may need to get your hands a little dirty. Although it may seem glamorous from the outside to start this business, the work can require a lot of physical activity and repetition.
The job can be demanding This is one of the major disadvantages starting a tech support business. It's important to understand that you may need to make yourself available on a 24/7 basis.
High liability Running a tech support business involves a lot of liability, which means the cost for insurance premiums may also be high.