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So I have a full time job and I also do a lot of small side jobs such as fix laptops/computers. Clean out viruses, and I also do IT work for this one small business. I set that whole network up from scratch. Now I have 4 my small businesses lined up and I think it will start to be to much to handle. One business wants to be up and running by May 8th but nothing has been ordered. They havent even paid yet but are expecting everything to be ordered and done by May 8th. This other place also wants to be up and running by mid May. How would you guys handle this much work?

5 Spice ups
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Follow the work that is actually paying or at least signing contracts for payment.

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Like Matt Patzwald said, for now, do the work that is actually paying you. And get contracts signed for the ones that aren’t. Explain to the one company that you can’t get their network up and running if they don’t pay for and order the equipment needed to do so.

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I would of handled it by not saying yes to everything and double booking yourself. Only agree on what you can manage.

I don’t know the size of these networks but I’d imagine they’re small. This is a feasible timeline. Up to you on how you want to work it out.

3 Spice ups
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You may want to send out an email to the parties involved and in charge of providing budget for ordering and inform them of a time frame of what is doable and what is not. Always good to have a paper trail of some sort. And anything that is verbal follow that up with an email. (Callx is a good app to record calls)

Give yourself some wiggle room with each company so you do not go insane trying to meet these deadlines. Rushing could lead to missing something important.

Depending on the work that needs to be done. Let’s say simple pc setup. You can offer intern position at local I.T. college etc.

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Are they expecting you to order the equipment? That is the part I do not fully understand.

Never order anything for anyone, they need to order it themselves. Once it is delivered, then work out a schedule that works for everyone.

And sometimes you just have to let the customer find out the hard way, lack of preparation on their part does not necessarily constitute an emergency on yours. I have had my fair share of people like that.

Chris

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Yea they need to give me a check so I can order the server, sonicwall, switch, and rack. I do not have a business of my own. This is just something I do on the side and people have heard from others that I do IT work so thats why they are calling me.

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If it were me. I would tell them what needs to be ordered and make them order it. And just charge them for your services installing it. If for some reason they decided not to pay you for whatever reason, you could be out a lot of money. I have had people stiff me before, and it is not fun. Since this is side work, they need to be responsible for ordering equipment.

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From an accounting/tax perspective, I think since they are paying you and you are buying the equipment, technically you are selling it to them. May want to check with an accountant regarding your tax liability.

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Exactly what Chris75 said. In addition you do not want to be someone’s bank and interest free loan. Advise them what to order and even better send them links from places like CDW or Tigerdirect.You will only open yourself up for headaches actually buying the hardware for clients especially if there is a warranty claim involved down the road. You are better off just installing and consulting on what to buy and not actually buying it yourself. Since it seems like they haven’t given you a check yet you can still follow the advise that has been outlined and go from there. When I first started doing side work I wanted to do it all but as a one man shop in my case, possibly yours too, you cant be a consultant and bank. Stick with what you know which is computers and networking so you can really focus on that.

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Back when I did side IT work (and even when I opened my own business), I would put together all of the quote sheets, and orders, place the order and then have the vendor call the client for payment information. Worked for me on multiple levels (not having to put out for the order being one of them), but the best part was, I was not ordering the equipment and reselling it so there were no tax obligations and I didn’t have to carry any costs for warranty, the customer paid for my services whether I was setting it up or if there was a hardware problem down the line, I got paid to take care of it.

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Exactly.

I am not an accountant either, but I am definitely lining one up for my own side work just to get issues such as this straight. I do know that, in Iowa at least, you would have to charge (and file) sales tax if you buy the equipment for them. Just one more good reason to have the client purchase the equipment and only mess with billing for your actual time and services.

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I too, work full time in IT for a company and have a few businesses on the side that I support.

With that said, YES, side businesses will grow to be too much to handle. Unless you have some sort of consideration to hiring a tech for those times when you can’t break away from your full time job - I’m not recommending you do this. I agree with the others, budget your time as you would your money. I have a family of 6 and more than one or two small businesses on the side and you could end up not seeing your family and/or really hurting your reputation with the businesses if you aren’t willing to continue working on their IT issues even when it isn’t convenient.

As far as the accounting goes and whether to buy the parts, pieces, etc. that is up to you. What I do is, I purchase any parts, etc for my small businesses only after providing them with an estimate and requesting parts money up front. If I don’t get the money, the projects don’t go forward. I don’t have the funds to support another business’s ventures, let alone my own. When they order from another company, they pay before the stuff arrives. Its just how businesses work. I get a little markup on whatever I order from them as well. Searching for and purchasing parts, components, gear is not instantaneous, it takes time. I don’t charge them for the time per se, but I do make markup on parts.

Because of the way my small business is on the side, I have very little right offs and it appears almost as pure profit at tax time. Be prepared that if you do go forward with this, that it may put you in a position of owing when it comes to tax time.

You can make an extra buck or two for family vacations, etc. but your time, taxes and other things in your life will take a hit. Be smart about it; be informed. Good luck!

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Fill out a shopping cart at CDW or the like and email it to them and let them buy the equipment.

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Don’t get caught off guard with your income tax liability. It sounds like this could be the first year you get significant side income. Unless you are being paid under the table expect these companies to request a W2 to be able pay you and then they will send you a 1099 at the beginning of next year. You are responsible to pay the income tax so you should save some percentage of you side income with this in mind. The amount will depend on your individual tax situation and bracket. Sales tax should not be an issue if you are paying it when you purchase equipment for them. If you are not paying sales tax by using a resale # then you will need to pay sales tax to your state and possibly city too.

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If you buy the equipment, you will have to deal with transfer of ownership for warranty purposes. Order FOR them, in their name, and let them deal with the bills.

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