Computer IT Service Franchise Business For Sale

To express your interest, contact James at 02 9516 4966, or email franchise@safemode.com.au

$15K – $30K to start.
No Profit, No Fee.
In-house Wining Marketing Engine.
Extremely Low Overheads.
High Profit Margin.
Ideal For Owner Operator or 1-2 Employees.
You will open a new location under our brand. We’ll take care of marketing, systems. Give you training on operations and help you grow your business to be profitable.

Be your own boss. Own and operate a computer IT service business with unlimited upside potential and virtually no downside.

This is a computer IT service business franchise for sale. What we do: We provide services to local homes and businesses such as computer repairs, small business IT support. Customers visit our store and occasionally we will visit the customer place for onsite services.

Virtually No Downside – Huge Protection against Permanent Loss of Capital

I am the business’s founder and the current owner. I’m a born and bred IT entrepreneur with extensive knowledge in sales, advertising and marketing, having owned and operated the business since 2004. I started the business with little to no capital.

I have started other businesses in SaaS, and marketing spaces. This led me to learn sales and marketing and I’ve applied the knowledge to this business. I also learn finance, investing and am a keen admirer of legendary investors such as Warren Buffett, Mohnish Pabrai, etc.

Here’s how we’ll protect your investment:

Low-cost operator

Costs are cut to the bone. We do almost everything in-house including technical work and marketing, including:

We built and maintain our own CRM (Customer Relationship Management) system that is tailored to our business, running at $0 cost (just 1 server computer to host the system that we built ourselves).
We run our own marketing, including Google Business Listing and SEO. For SEO, we’re ranking in the top 3 for highly competitive keywords as we have been doing SEO for years and consistently publishing content on a weekly basis. This drives a stable inflow of customers to our business. There is $0 cost to outside digital marketers.
I am an expert at local SEO. Many so-called SEO experts have promised us the world in the past but never delivered results. I decided to learn it and am now an SEO expert. I built an in-house marketing engine and we have achieved significant results for years.
We set up and run our own email marketing automation to get existing customers to return for repeated business. This is currently at $0 cost using a free plan. The next paid plan is $30 per user per month when we exceed our free plan.
We also ran our own advertising campaigns (Google Ads). I’m an expert at Google Ads, Facebook Ads. However, the ads had to be stopped in 2018 because Google had disallowed all computer and phone businesses to advertise.
We built, optimize and maintain our own website. There is $0 cost to external website developers.
We host our own website and our business client’s websites. Since we’re using a reseller hosting package, we pay $0 to host our website while earning profits from hosting our clients’ websites.
We do almost all technical work ourselves. Some complex work is outsourced to reliable suppliers at low cost that our suppliers have agreed with us.
We hire a part-time content writer to help with content. This is the only cost that we have for marketing. The content writer is overseas and work remotely hence the cost is minimal compared to hiring locals.
We don’t even buy computers. Being in the computer service business, we always have spare, high-performance computers to use.
All other costs have been cut to the bone, including:
- VoIP phone system with greeting and music on hold. We sign up the system with a provider at a low cost and self-manage it. Any assistance the provider provides is at $0 cost.
- Camera systems: we buy camera surveillance systems at cost. We installed and maintain it ourselves.
- Network: We buy router, switches at cost and install them ourselves.
- Designs, store signages, posters, business cards, stationery, etc: these are minimal as most have gone digital. We have existing designs that can be re-printed thus there is $0 cost.
We have been profitable since 2008 with this model.

High-Margin

With costs cut to the bone, we maximize profit by having a large margin.

While many other businesses have low margins of less than 10%, our business margin has been consistently high for the past 12+ years. This means that you’ll earn a large, pure operating profit for every sale you make.

A high margin is critical for any business to succeed, leaving you room to expand the business and still be profitable in economy downturns.

Lots of Room for further growth

There are lots of room for improvement:

Upsell, cross-sell
Maintenance plans
IT support plans
Web hosting plans
Website development and SEO contracts
Antivirus software
Backup plans

Shop Rental

Shop rental will be minimal. You do not need to rent a premium location in a shopping mall. In fact, renting in a shopping mall can be a bad choice because:

Customers might not be able to locate your store easily in a big shopping mall.
Parking can be difficult during peak times when everyone rushes to shopping malls.
People only want to use your services when their computers break down. They will not excitedly visit your store if they just happen to pass by.
People always look for a local computer service provider on Google first then they’ll visit your store. Google is their starting point, not the shopping mall.

However, feel free to take your chance and rent a premium location if you want to.

Owner-operator Model. Or you can hire employees.

Many other businesses are capital-intensive (eg retailers with high costs to keep inventory), or labour-intensive (eg restaurants need to hire multiple staff to operate the business).

We are a capital-light business. We keep just-enough inventory for the most popular services.

With our business, the choice is yours. You can choose to be an owner-operator or you can choose to hire employees and open multiple locations.

Your Business. We put your profit first

All other franchises will charge you a percentage of your revenue (revenue, not your profit) and require you to purchase inventories from their head office.

This means you will have to pay X% of your top-line revenue to their head office regardless if you make any profit. You are also required to purchase inventory from their head office even if their cost is above the market price.

This is against your long-term benefit! The franchisor makes money even when you, the franchisee, lose.

We follow a different approach. Why? Because, I am a keen admirer of Warren Buffett, Mohnish Pabrai, Nick Sleep and legendary investors alike.

Warren Buffett’s partnership and Berkshire Hathaway were set up completely differently from other traditional investment funds. Warren Buffett does not make any money from his investors if their fund does not perform above the market. He only makes money if he manages to beat the market and makes money for his investors.

Mohnish Pabrai has written the “The Dhandho Investor – The Low-Risk Value Method to High Returns” book. The book concept is about “Heads, I win! Tails, I don’t lose that much!”.

Thus, I practise what I preach and follow the same approach: Heads, you win! Tails, you don’t lose that much.

Small Capital to Get Started. Minimal Ongoing Expenses

To get started, a small capital will be required:

Shop rental and an initial bond payable to real estate agents for the shop location that you’ll rent. This varies depending on the shop location. FYI, our current shop rent is $37,000/annum inc GST.
Initial office equipment. Approximately $5,000 – $15,000 one-off expenses for office reception counter, chair, desk, computers, EFTPOS machine, etc. You can reduce this cost if you’ve already got some existing equipment. We’ve got designs and supplier for this.
Other fixed fees: payable to your selected providers for phone systems, the Internet, electricity, etc. We will recommend you the low-cost providers.
$150/week payable to cover the wage for our content writer to help promote your business.
$15,000 one-off fee to cover the initial marketing and my work to get you started and train you the systems that we use.

If you do not make a profit, you don’t have to pay

Besides the fixed costs as mentioned above, if your business makes less than $20,000 in gross profit during a year, you do not need to pay any fee to us (head office). Keep in mind that this is gross profit, not revenue.

Gross profit is Revenue minus Costs of Goods Sold (COGS). For example, if you charge $100 for a service, and it costs you $20 for purchasing hardware for that sale, then your Gross Profit is $100 – $20 = $80. COGS does not include fixed costs or admin costs such as utility bills, administrative expenses.

If your business turns a gross profit of more than $20,000 a year, we will take 25% of the profit and you keep 75%.

This guarantees that we’ll make money only if we’ve helped you make at least some profit to sustain your minimum expenses.

Requirements

To be in this business, you will need:

Clear, effective communication.
Friendly attitude.
Be kind and helpful to others, including employees and customers even if you may not get any benefits in the short-term.
A hard worker.
Good technical skills with computers. Ideally, you are efficient with both Apple Mac and Microsoft Windows systems.
Experience in computer hardware and software.
Experience in replacing computer parts. Good knowledge in software such as email, OS, virus removal, etc.
A trustworthy person.

The business can sponsor your Visa

If you need a Visa to work in Australia, your business can help you with the sponsorship. You still need to enquire with an immigration agent about this.

Interested in starting a business with no risk?

As I follow Warren Buffett’s partnership practice, I want to ensure that we will align our benefits with yours. All training will be given to help you grow your business.

If your business does not turn at least $20,000 a year in gross profit, then we do not want to put your family and your life savings at risk. We strongly believe that family and trust are important. Your family, your life saving are important to you, just like our family and our savings are important to us.

Do not fall for the “trap” of other franchises where the franchisors take a cut of your revenue even if you make no profit. There are 100s of complaints and lawsuits on this matter that you can find on the Internet.

If you’re interested, contact James at 02 9516 4966, or email franchise@safemode.com.au