How to start a pc building business from the ground up

Launch a profitable PC building business with our clear roadmap. Get practical steps for funding, licensing, and insurance to avoid costly errors.

2 min read time

Copied
How to start a pc building business
Main topics

Starting a PC building business is a rewarding venture that combines technical skill with business savvy. The custom PC market is a multi-billion dollar industry, fueled by consistent demand for specialized rigs from gamers, content creators, and professionals.

This guide will take you through the practical steps of validating your business concept, building supplier relationships, acquiring inventory, and obtaining the necessary licenses to help you launch a successful PC building business in the U.S.

Step 1: Plan your business and validate your idea

Begin by exploring online communities to understand customer demand. Forums like Reddit’s r/buildapc and the PCPartPicker completed builds gallery show you what people actually want. Note the popular component combinations and price points for gaming, streaming, and workstation setups.

Next, analyze your competition. Look at national players like NZXT BLD and boutique builders in your region. You can use web tools like Ahrefs' free traffic checker to see how they attract customers online and what keywords they target.

Estimate your startup costs

Your initial budget will likely range from $6,000 to $18,000. A frequent misstep is to overspend on niche, high-end parts that have slow turnover. You might want to start with popular mid-range components that have broader appeal and move faster. This will be your largest initial investment.

  • Tools (screwdriver kits, anti-static mats): $200 - $500
  • Initial Inventory (CPUs, GPUs, RAM): $5,000 - $15,000
  • Business Formation (LLC): $100 - $800
  • Website & E-commerce Platform: $500 - $2,000

Here are 3 immediate steps to take:

  • Spend a week to document popular builds on PCPartPicker and Reddit.
  • Create a spreadsheet to list three local and three national competitors.
  • Draft a preliminary budget based on the cost ranges provided.

Step 2: Set up your legal structure and get licensed

Choose your business structure

You should consider forming a Limited Liability Company (LLC). It protects your personal assets if the business faces debt or lawsuits. Profits pass through to your personal tax return, which simplifies filing compared to a corporation.

Filing for an LLC typically costs between $50 and $500 through your state's Secretary of State website. Once formed, open a separate business bank account immediately. Mixing funds can remove your liability protection.

Get your federal tax ID

Next, you need an Employer Identification Number (EIN) from the IRS. Think of it as a Social Security number for your business. It is required for opening a bank account, hiring employees, and filing taxes.

You can apply for an EIN for free on the IRS website. The online application process is fast and usually provides your number within minutes.

Secure state and local permits

You will need a seller's permit from your state's Department of Revenue. This allows you to buy parts wholesale without paying sales tax and to legally collect sales tax on your finished PCs.

Forgetting to collect sales tax from day one is a mistake that can result in large back-payments. Also, check with your city or county clerk for a general business license, which often costs $50 to $100 per year.

Here are 3 immediate steps to take:

  • Decide on a business name and register your LLC with your state's Secretary of State.
  • Apply for a free Employer Identification Number (EIN) directly from the IRS website.
  • Research your state's seller's permit application process and requirements.

Step 3: Protect your business with the right insurance

Your first policy should be general liability insurance. This covers third-party claims like bodily injury or property damage that could happen in your workspace. Aim for at least $1 million in coverage, which typically costs between $400 and $900 annually.

Next, consider professional liability insurance, also known as errors and omissions. It protects you if a custom build fails and causes a client to lose data. Some new builders skip this, but one faulty GPU frying a client's system can lead to an expensive lawsuit.

A similar $1 million policy for professional liability will likely run from $500 to $1,000 per year. It is a manageable cost when you consider the protection it offers against claims of negligence or faulty workmanship, a specific risk in this business.

Cover your assets and team

With your inventory in mind, commercial property insurance is a must to protect against theft or fire. If you plan to hire help, you will need workers' compensation. Also, add commercial auto insurance if you use a vehicle for business deliveries.

You can often bundle these into a Business Owner's Policy (BOP). You might want to get quotes from providers like Hiscox, The Hartford, or Next Insurance, as they specialize in coverage for small technology businesses and understand the unique risks involved.

Here are 3 immediate steps to take:

  • Request quotes for a $1 million general liability policy.
  • Ask insurers about adding professional liability coverage for faulty workmanship.
  • Compare Business Owner's Policy (BOP) options from providers like Hiscox and The Hartford.

Step 4: Set up your workspace and get equipment

You can start in a 100-150 square foot space, like a spare room or a clean garage corner. For a home-based business with no customer foot traffic, residential zoning is typically sufficient. Just check your city’s rules for a "home occupation permit" to be sure.

Stock your build station

With your space sorted, you need to outfit your build station. Some builders get sidetracked by expensive gear, but you can begin with a modest setup. A solid, static-safe surface is the main priority, not a fancy hydraulic lift.

  • Anti-static workbench (6-foot): $400 - $800
  • Precision toolkit (iFixit Pro Tech Toolkit): $75 - $100
  • Electric air duster: $50 - $60
  • Cable management supplies (velcro straps, zip ties): $50

Find your component suppliers

To get parts, you should open accounts with Newegg Business and Amazon Business. They have no minimum order quantities, which is perfect when you are building one PC at a time. This approach helps you manage cash flow without tying up money in bulk inventory.

Once you establish a steady sales volume, you can apply for accounts with wholesale distributors like Ingram Micro or D&H. They offer better pricing but often require initial orders over $1,000 or have monthly revenue commitments, so wait until your business is stable.

Here are 3 immediate steps to take:

  • Measure your workspace to confirm you have at least 100 square feet.
  • Price out a 6-foot anti-static workbench and an iFixit Pro Tech Toolkit.
  • Create free accounts on Newegg Business and Amazon Business to compare part prices.

Step 5: Set up your payment processing

You should require a 50% non-refundable deposit before you order parts. This protects you if a client backs out and covers your initial component costs. The final 50% is due upon completion or delivery. Make these terms clear on your website and in your quotes.

Some new builders get stuck with expensive parts because a client changed their mind. A firm deposit policy prevents this. When you look for a payment solution, prioritize low transaction fees and no monthly charges, especially when sales might be irregular at first.

For in-person sales, like local deliveries or on-site upgrades, a mobile payment solution is a great asset. For this, you might want to consider JIM. It lets you accept debit, credit, and digital wallets directly on your smartphone with a simple tap.

The rate is just 1.99% per transaction with no hidden costs or extra hardware. This is quite competitive, as many other providers charge between 2.5% and 3.5%. It is a smart choice for managing costs when you complete a build at a client's home.

Using it is straightforward:

  • Get Started: Download the JIM app for iOS.
  • Make a Sale: Type the sales amount, hit sell, and ask your customer to tap their card or device on your phone.
  • Access Funds: Your money is available on your JIM card as soon as the sale is done, with no wait for bank transfers.

Here are 3 immediate steps to take:

  • Draft your payment terms, including a 50% non-refundable deposit.
  • Compare payment solutions that have no monthly fees.
  • Download the JIM app to see how it works for in-person transactions.

Step 6: Fund your business and manage finances

Secure your startup capital

Most builders self-fund with personal savings. If you need external capital, you might want to look into an SBA Microloan. These loans range from $5,000 to $50,000 and are great for inventory and equipment. Interest rates typically fall between 8% and 13%.

To qualify, you will need a solid business plan and a good personal credit score, usually above 650. Some new builders get tripped up by underestimating their cash needs. They secure a loan for parts but forget about operating costs, which can strain the business early on.

Plan your working capital

You should have enough working capital to cover at least three to six months of expenses. For a small-scale start, this means having $3,000 to $7,000 in cash reserves. This fund covers part orders before customer payments clear and handles unexpected costs without derailing your operations.

Set up a simple bookkeeping system from day one. A spreadsheet using a template from Google Sheets or Excel is enough to start. Diligently track every dollar you spend on parts, shipping, and software. This habit makes tax season much simpler and shows you where your money goes.

Here are 3 immediate steps to take:

  • Calculate your working capital needs for the first six months.
  • Research SBA Microloan lenders and their specific credit requirements.
  • Create a bookkeeping spreadsheet to log all your startup expenses.

Step 7: Hire your team and streamline operations

Your first hire

Hiring too soon can strain your cash flow. You should wait until you personally cannot keep up with orders, which is often around 5-10 builds per month. Your first hire will likely be a part-time PC Build Technician to help with assembly.

Their main duties will be component assembly, cable management, and quality control testing. When you interview candidates, prioritize a portfolio of past builds over certifications. A CompTIA A+ certificate is a plus, but hands-on skill is what matters. Plan for a pay rate of $20 to $25 per hour.

Streamline your build process

With a team member on board, a consistent process is key. You should document your build and testing checklist so every PC meets the same quality standard. This reduces errors and makes training much easier.

You can manage your workflow with a free Trello or Asana board. Create columns for each stage like "Parts Ordered," "In Assembly," "Benchmarking," and "Shipped." This gives you a clear view of your entire production line at a glance.

As you scale, a good financial target is to maintain one full-time technician for every $150,000 to $200,000 in annual revenue. This ratio helps you manage labor costs effectively while increasing your output.

Here are 3 immediate steps to take:

  • Draft a job description for a part-time PC Build Technician, focusing on hands-on experience.
  • Create a simple build checklist to standardize your quality control process.
  • Set up a Trello board to track your build stages from start to finish.

Step 8: Market your business and acquire customers

Showcase your builds visually

Your custom PCs are visual products, so use high-quality photos and videos. Post your completed builds on Instagram, TikTok, and YouTube Shorts. Focus on clean aesthetics, cable management, and RGB lighting to attract attention. A well-shot video can get more traction than a simple image.

Some builders get lost trying to create viral content. Instead, focus on consistency. Document one build per week with good lighting. This is a more effective long-term strategy that builds a portfolio and demonstrates your skill.

Engage with online communities

Become an active, helpful member of forums like Reddit’s r/buildapc and Linus Tech Tips. Answer questions and offer advice without directly promoting your business. This builds trust and establishes you as an expert. People will find your business through your profile.

A frequent misstep is to join these groups only to post ads for your services. This approach often leads to being banned. Your goal is to contribute value first. Your reputation will generate leads organically over time, which is far more powerful than a direct sales pitch.

Set your marketing budget

You should aim to keep your customer acquisition cost (CAC) below 10% of a PC's sale price. For a $2,000 build, that means you spend no more than $200 to find that customer. In the beginning, your CAC will be close to $0 as you rely on organic content and word-of-mouth.

Here are 3 immediate steps to take:

  • Take high-quality photos and a short video of your next completed build.
  • Find a question you can answer on the r/buildapc subreddit and provide a helpful response.
  • Create a content calendar to post on one social media platform three times a week.

Step 9: Set your pricing and secure your profit

You should decide on a pricing model that covers your parts, labor, and profit. The most common method is cost-plus pricing. You take the total cost of all components and add a markup of 15% to 25%. For a build with $1,500 in parts, a 20% markup gives you a $300 profit.

Another option is a fixed build fee, which you might set between $200 and $500 based on the PC's complexity. This offers clients price transparency, but your profit does not scale with more expensive components. Many new builders underprice their service, so be sure your fee reflects your expertise.

Analyze competitor pricing

To set a competitive price, you need to research the market. Look at national builders and local shops to see what they charge for similar builds. You can use PCPartPicker to calculate the raw component cost of their advertised systems and figure out their approximate profit margin.

This exercise shows you what customers are willing to pay. If a competitor sells a $2,000 PC with $1,600 worth of parts, their markup is 25%. This information helps you position your own prices effectively without leaving money on the table.

Here are 3 immediate steps to take:

  • Decide if you will use a cost-plus or fixed-fee model for your first few builds.
  • Calculate the final price for a sample $1,500 build using a 20% markup.
  • Analyze the pricing of two national competitors for a mid-range gaming PC.

Step 10: Implement quality control and scale your operations

Establish your quality standards

As orders increase, it is easy to rush and let quality slip. You can avoid this by creating a non-negotiable quality control checklist for every build. This document ensures consistency, whether you build one PC a month or ten.

Your checklist should mandate specific software tests. For example, run a CPU stress test with Prime95 for at least 60 minutes. You can use FurMark for the GPU under the same conditions. A full pass with MemTest86 confirms RAM stability.

Plan your growth

With quality under control, you can plan for expansion. You should set clear triggers for growth. For instance, when your build queue consistently takes longer than two weeks to clear, it is time to hire your first technician.

You will also want to watch your Return Merchandise Authorization (RMA) rate. Aim to keep it under 5%. If it starts to climb, that is a signal to pause and refine your build process before you take on more orders.

Once you regularly handle over 15 builds a month, a spreadsheet will not be enough. You might want to look at inventory management software like Katana or QuickBooks Commerce to track parts and costs accurately as you scale.

Here are 3 immediate steps to take:

  • Draft a quality control checklist that includes one-hour stress tests with Prime95 and FurMark.
  • Define your first hiring trigger, such as a build queue that exceeds two weeks.
  • Review inventory management software like Katana for future use when you scale.

Building custom PCs is a business of passion. Remember that your reputation within the community is your greatest asset. Stay engaged, build with care, and your business will grow. You have the roadmap, now it is time to start the build.

As you complete those first builds, a simple payment process helps. You might consider JIM, which turns your phone into a card reader for a flat 1.99% fee per sale, with no extra hardware. Download JIM to get set up.

Sell and get paid instantly1 with JIM

Start selling
Hand holding a smartphone with the JIM app interface, showing a $2,100.00 Visa card balance and a keypad to enter a $42.00 transaction. The background features a futuristic rocky landscape and digital wrist overlay.