Starting a company promoting Ubuntu

[birgirfreyr]

I have no idea if this is the right place to start this but I have been interested to start a company similar to System76. That is to sell desktop computers with Ubuntu installed and laptops if a good retail provider could be found who would provide laptops without os. How do System76 get there laptops? who makes them? I thin Desktops are less of a problem buying the parts and assemble them.

Any advice would be great.

Thanks in advance
Birgir In Iceland

[antiedman]

Lots of free Information at US Based http://www.sba.gov/category/navigation-structure/starting-managing-business/starting-business

[Warpnow]

If it were me, I'd check out alibaba.com, its like a direct connection to chinese factories. You can have custom stuff made there in bulk. There are some laptops as well. Just have them made to spec with hardware ubuntu supports.

[Paqman]

if a good retail provider could be found

In order to make any money you're going to need to be buying wholesale, not retail. You're going to need to build a relationship with a supplier. To do that you're going to need to show that you've got a legit company that can shift stock.

[keithpeter]

In order to make any money you're going to need to be buying wholesale, not retail. You're going to need to build a relationship with a supplier. To do that you're going to need to show that you've got a legit company that can shift stock.

Hello birgirfreyr

You don't state where you are or what kind of capital you have available or if you have access to premises &c or how old you are. Those things all matter when considering a business.

A way to start small is to provide 'value added' services over basic machine supply and to sell things in your area. Support and training, by phone or in person.

One chap in the UK runs a small company selling machines at computer fairs,

http://cliftonts.co.uk/

https://lists.ubuntu.com/archives/ubuntu-uk/2011-December/032413.html

I have no connection with this chap at all, but I am following his progress just to see how it works out.

[SeijiSensei]

That is to sell desktop computers with Ubuntu installed

Who do you foresee buying these? I doubt there's a substantial volume of computer users in Ireland just waiting for Ubuntu machines to become available. My bet is your marketing budget would have to be so large as to make the venture unprofitable.

[Paqman]

I doubt there's a substantial volume of computer users in Ireland just waiting for Ubuntu machines to become available.

And a lot less in Iceland. My back-of-a-napkin calculation:


Population of Iceland = 318,000
Number of households = 120,000ish
Assuming 0.9 computers per household and Linux adoption of 1%, number of Linux users in Iceland = 1,080
Assuming replacement every 3 years, total size of the Icelandic Linux PC market = 360 machines per year


Source (http://www.statice.is/Statistics/Population)

You'd need to either expand the size of the market considerably, or capture a significant percentage of it to make this a business, rather than a hobby. It might be able to support one person if they were hugely successful, and also had a day job.

[SeijiSensei]

And a lot less in Iceland.

Oops, wrong "-land"! Reading UF before drinking my first cup of coffee was probably the culprit.

With only 120K households, the marketing costs I alluded to might not be so great, but the sales figures won't be that great either.

[Paqman]

With only 120K households, the marketing costs I alluded to might not be so great, but the sales figures won't be that great either.

Tbh, I don't think marketing directly to the general public would really work. I suspect the place to carve out a viable business would be places like small businesses and charities looking to trim their IT budget. Getting started in that kind of thing is going to be all about face-to-face and building a reputation for good service.



I thin Desktops are less of a problem buying the parts and assemble them.


Less trouble for you, but also for your prospective customers. Just about anybody can build themselves a desktop that will run Linux. What Linux users want are laptops and peripherals that they know will work.

[macroshaft]

Hello birgirfreyr
One chap in the UK runs a small company selling machines at computer fairs,

http://cliftonts.co.uk/

https://lists.ubuntu.com/archives/ubuntu-uk/2011-December/032413.html

I have no connection with this chap at all, but I am following his progress just to see how it works out.

I am said chap, thank you for the mention it is much appreciated!

As for birgirfreyr, if you are looking to get into this line of business I think you will need to understand and respect that Windows is king, at least today. My business although focused on Ubuntu does also support Windows and will be selling Windows based machines also. What thay say about customer numbers in here is worrying and you do have to accept that a bankrupt company can't promote or support anything! Windows can bring the customers to you, it is your friend.

Introducing them to linux and showing them the benefits will be a slow process. So I think you need to be quite versatile and not too pushy about getting people to accept it.

If you need a hand getting started I'm more than happy to assist you with brainstorming, making contacts, even advertising as I believe co-operation is our best way forward. You've got my web address so drop me a line and let's talk.

Gareth

[Paqman]

It's probably worth mentioning that your margins on selling complete systems will probably be quite small. The problem is that there are already plenty of cheap Windows PCs at the bottom of the market, so competing on price is difficult. At the top end of the market you're looking at stuff like gamers and workstations, where the interest in Linux as a platform for those activities could be pretty limited.

I would definitely suggest either taking a broader view than just selling Linux boxes, or find a specialised niche where you can offer something unique and go all-out for that. Something like HTPCs, home servers, home automation, MAME, music systems for bars and restaurants, etc, etc. Anything which you think isn't being well-exploited already in Iceland.

[birgirfreyr]

hello again

I would like to start by thanking all of you who took the time to give me advice. I must say I am suprised how "hard" love you are giving me. All your advice have been relistic and helped me to keep my feet on the ground to access if this idea of mine is viable. To be honest I would not have been suprised if the advice I got from this forum would have been padding me on the back for starting this company with the best OS in the world and and all other systems are crap and so on. But we Linux users are apparently more relistic, sensible and down to earth then I could have imagined. I suppose the self padding on the back and praising one another for using the best OS in the world are mostly Apple users. But what do they know! They are more of a cult followers then "free" thinking people.

The idea I had was basicly offer two or three laptop choices along with desktop and Servers. I would be aiming at schools and students but also small company's. To start I would mostly be trying to get connection and promoting Ubuntu computers face to face with possible clients. Probably take out and advert in the locol University papers but the idea was to start with as little cost as possible, that would be a good looking webpage and then contacting company's and offer them ready made systems. There are at least 3 schools in Iceland I know of who use only Ubuntu pc and there are possibility for a Ubuntu based computers of this kind in the economical climate in Iceland right now. Unfortunately I am more of an idealist and I have recruited a friend who has the necessary computer knowledge. I am more the guy who has the ability to promote and sell the product. And yes I was going to keep my day job while doing this. I can't imagine that this small businesses idea would take off fast. But the good thing about Iceland is that it is small. If a hype can be created than good things can happen.

Gareth I will probably take you up on that offer and will probably contact you and ask for advice if I start this endeavor of mine.

But thanks again for all your good advice. The have definitely helped me to flesh out the possibility and helped me to be realistic about the possible downfalls.