Techno 71,
I wish you well in your new endeavor. My first instinct given the economy today is: Don't go overboard and dig yourself too deep a hole to climb out of. You are correct in avoiding long term leases and obligations. Sell your service and your expertise which are your strong points, and minimize overhead. We have many many very successful 'mobile' merchants who do very well without huge building facilities. Yes, you could sell parts if you had a building and that would mean more revenue. But it would also mean more cost of good sold inventory investment, more rent for storage and display space, insurance expense to cover the display and storage area as well as the inventory itself, etc. Again, sell your expertise and service, then let that lead you down other paths when you're ready for it, not before. One step at a time.
Let me change gears a little and discuss something I
am qualified to talk about. We are in the payment processing business, and obviously it is important for you to get paid for your services. There are many mobile credit card processing solutions out there, and the ability to accept payment in any form (cash, check, plastic or whatever) on the spot should be high on your priority list if it isn't already. Accounts receivable headaches, especially given this economy, is a place you do NOT want to go.
Here are some thoughts. Do NOT, repeat do NOT, do any of the following in regards to mobile credit card processing:
1.) Sign a long term contract with early termination fees with any processor. These are fairly common.
Keep your options and escape hatches open.
2.) Pay upwards of $1000-1500 for a 'portable' credit card processing unit. That isn't necessary.
And PLEASE don't even think about leasing credit card equipment. Major rip-off.
3.) Go for one of those 'free' mobile credit card equipment offers you're sure to be approached about.
The reason is: The fees for those kinds of plans are very high (to make up for the 'free' equipment),
and they all come withi long contractual terms.
If you have a laptop computer, there's a program for mobile merchants that won't cost you a dime to set up, and it's a month-to-month deal with no contract or early termination penalties. You'll be able to accept Visa, MC, Amex, Discover etc on the spot in any internet connected area using your laptop with the included software installed. You can add a card reader (swiper) for under $90 to get the lower swiped discount rates, and the program even includes free collection of NSF checks if you run into issues in that regard.
Please contact me for details on this plan BEFORE you sign off on anything else. Again, good luck.
AMSPCS
amspcs@juno.com
www.MerchantServices-help.com