Y&A Framework: IT Services

Identify a bandwidth on starting a business.

GETTING STARTED

1
Image Description
Purchase vs Development?
2
Image Description
Business Plan
3
Image Description
License & Permit

RUNNING YOUR BUSINESS

4
Image Description
Business Incorporation
5
Image Description
Bookkeeping: QuickBooks
6
Image Description
Accounting Calculator
7
Image Description
Corporate Taxes

TREND & STRATEGIES

8
Image Description
TREND & STRATEGIES
  1. GETTING STARTED

    The computer services industry is estimated to be a $300 billion industry. Billions of people rely on computers and technology every day to successfully operate their businesses. They need reliable services that can provide them with the help and guidance they need in the face of technological difficulties.

    Determine the type of consulting services you plan to offer. Hardware, software, networking or a combination of those services are all options. The more services offered, the broader reach the business will have, which can create more customers. Consultants must constantly seek referrals and leads and be able to present their value in a clear and convincing manner. Consultants must be effective time managers to juggle their clients' demands and to maximize their billable hours. Keep in mind, not everything you work on is billable.

    What marketable skills do you have? Differentiate yourself from the crowd.

    Aside from a long and successful career running an IT Consulting, Certifications are industry-leading credentials to start and grow your business.

      • CompTIA (A+, Network+, Security+, Linux+)
      • Network+ $239
      • Security+ / Linux + $258
      • Microsoft (MCSE, MCITP)
      • Microsoft Certified IT Professional $125
      • Microsoft Certified Systems Engineer $875
      • Cisco (CCNP, CCNA, CCiE)
      • Cisco Certified Network Associate $250
      • Cisco Certified Network Professional $600
      • Cisco Certified Internetwork Expert $1750
      • Apple (ACSP, ACTC, ACSA)
      • Apple Certified Support Professional $200
      • Apple Certified Technical Coordinator $400
      • Apple Certified System Administrator $650
      • Certified Information Systems Security Professional (CISSP) $599
      • Information Systems Audit and Control Association (ISACA) $415
      • Project Management Professional (PMP) $555

    What IT services can you offer?

    In a nutshell an array of IT services that entails designing, building, or managing a system are offered in an IT consultancy business.

    To further illustrate, an IT expert is needed to design, build, and/or manage

    Start an IT Business: The Bare Essentials

    We will discuss the details further in this framework but as an overview, here are the things that you need to sort out when starting your own IT business:

    Image Description

    Business Plan & Materials

    Research and analyze your market, Identify your Core Services, Create a business logo, cards and stationer, Website, 5P’s – Feasibility Report, etc.

    Image Description

    Prepare yourself Financially

    Open a business bank account, Arrange your business accounting and apply for loans, Establish a business line of credit, Ready your workspace, Use QuickBooks

    Image Description

    Legal Requirements

    Business Registration, Taxes, Permits and Licenses, Business Laws and Regulations,

    Image Description

    Secure Contracts

    Build good relationship with your clients, Lead Generation, marketing strategy, etc

    Franchise or Independent: Which is better?

    This franchise category did not exist 20 years ago! That is also a great reason why the Computer & Internet category is full of franchises with lots of growth potential. Many computer and IT services franchises have low startup costs because they do not require a store front or much equipment. Many of these franchises take their services directly to the business they are assisting to do the job on-site.

    Starting up from scratch could be challenging but less expensive, while franchising gives you a head start because of the brand name that people recognize. Continuous training and support from the franchisee are expected together with a royalty fee.

    Permits and Insurance

    Image Description

    Software License (EULA)

    Image Description

    Certificate of Occupancy $250.00

    Image Description

    Marketing Signs Portable on Private Property - $80.00

    Image Description

    Payroll Account and Workplace Safety & Insurance Board Account

    Basic insurance

    Image Description

    Fire insurance

    (extended coverage on buildings and contents)

    Image Description

    Liability insurance

    Image Description

    Burglary protection (theft coverage)

    Image Description

    Dishonesty insurance

    (covers thefts by employees)

  2. RUNNING YOU BUSINESS

    Business Registration: Sole proprietorship or Corporation

    We recommend incorporating your business because of the following benefits you will get:

    • Brand Protection - This helps protect your consulting company's reputation and also gives you a foundation for protecting your business and services from infringement.
    • Limit Your Liability – you will not be personally liable for the company’s debts.
    • Enhanced Credibility - you will be known publicly by your business name followed by 'Inc' or 'LLC.' This gives your businesses added professionalism and helps show that you are established and reputable.

    We can help you decide by taking our quiz and choose what’s best for your business.

    Take your business to the next level using an Accounting Software

    It is important to focus your time and energy on the tasks that will make your business profitable, managing your invoices and collecting payments could be challenging but we can make it easier. Tracqk your cashflow and concentrate on your business activities with the help of QuickBooks!

    The Feature of the future

    QuickBooks Customer Center: At one glance you can monitor all your receivables, track the balance of each job you did and attach important documents like contracts on their record.

    Image Description

    Billable Time and costs: All expenses related on a specific job can be billed to the client at ease with the help of the software, you can even set a mark up rate/price.

    Using an accounting software saves your time, money, minimize errors and offer you valuable and appropriate business. It can do so by: Data entry in a simple way – fast and very quickly data import, Online Banking, etc.

    Start utilizing accounting as your tool, your company’s historical financial activity and cash flow can be used to determine your next strategy. Generate forecast and budgets, Monitor your business growth. Find the stories beyond those numbers.

    Which is better, Lease or Loan?

    Leasing is a popular method of acquiring new equipment for your business. Although the payments may seem attractive, it may not always be the best financial decision versus purchasing the equipment outright and financing it with a low interest loan. Use the calculator to identify which gives you a better deal, Lease or Loan?

    Choose an equipment based on the amount it will depreciate rather than its sales price. Your lease payment is dependent on how much it depreciates during the lease period. As a lessor, you want to purchase an equipment that best retains its purchase price, low depreciation.

    Give your partners at Yogi & Associates a call to help file your Tax Return

    1. Every business needs to file their corporate taxes, whether they were actively engaged in business or not.
    2. Sometimes, there’s an advantage to being the little guy—Canadian owned and controlled small businesses may be eligible for the small business deduction, bringing the tax rate down to 10.5%. The business limit on receiving the small business deduction is $500,000, meaning that corporate income up to the amount of $500,000 is eligible for the small business deduction.

    Penalties

    Failure to file your T2 taxes on time will result in penalties. These penalties amount to 5% of the amount owing on your taxes, plus an extra 1% for each full month that your tax filing is late. The late penalty for filing may jump to 10% if the CRA sends a demand to file, when there has also been a failure to file in any of the three previous tax years.

  3. TRENDS & STRATEGIES

    1. Artificial intelligence (AI)

      Artificial intelligence (AI) is a main topic for 2018 and beyond. Data is the fuel for artificial intelligence, and today it is produced constantly and in abundance, both by end users through their intensive. In the long term, it is fair to assume that AI will increase efficiency and insights in virtually every aspect of a company’s business—including strategic issues.

    2. Robotic Process Automation

      Even the simplest manual-digital back-office processes are being taken over by digital robots. In many cases, robotic process automation (RPA) brings cost savings of as much as 80 percent—while guaranteeing almost 100 percent accuracy. A typical use case example: A paper invoice is read by OCR software and interpreted by a trained machine learning system, and then the extracted data is further processed by an RPA robot in the company’s standard process.

    3. The Rise of Platforms

      Business customers across industries today are seeking a single platform that can meet multiple demands in just one channel. Next to products, logistics services, financial offers and quality checks should be offered at the same interaction point.

    4. The Increasing Weight of Legacy Systems

      “Cleaning up” seems to be a never-ending issue for CIO’s, but its increasing relevance leaves it among their top agenda items. The question is: How can you transform IT infrastructure to win in digital without increasing costs? Legacy systems often take up more than 70 percent of available resources.

    5. Blockchain

      Blockchain is the technology behind the Bitcoin or we can say behind all the crypto-currencies. It offers security that is useful in many other ways. In the simplest of terms, blockchain can be described as data you can only add to, not take away from or change. Hence the term “chain” because you’re making a chain of data. Not being able to change the previous blocks is what makes it so secure. With blockchain, you don’t need a trusted third-party to oversee or validate transactions.