Bit unfair to tar all with the same brush - I'm in the process of trying to set up in this area and have no intention of going down that route.
Thorburn, best of luck with your business.
A few words to the wise:
1. Avoid the home-user market like the plaque. Unless you find a niche amongst wealthy clients, you will struggle to make a living and will be expected to be responsible for ANYTHING and EVERYTHING that goes wrong with a client's computer - FOREVER!!!
That's good you might think - I will earn lots of reoccurring income. No, they'll say something like: "Hi Thorburn, ever since you got my printer working again, my Internet and PC have slowed down. Can you see if something you did might be affecting it?" They'll expect you to do this for free.
IT support for home users is a race to the bottom.
2. Avoid micro businesses. This group can be worse than home users. They will expect corporate-grade IT from the expenditure of a home user. You'll be pulling your hair out trying to provide them with the service they need using a budget that will get them the service they deserve. Harsh? Yes, but good IT costs and this market is notoriously difficult earn from.
3. Consider the impact that cloud-based services will have on your business. Microsoft, Google and the like are now in competition with IT providers. There are new opportunities to be had, but the traditional market of PC and server break / fix support has changed. You need to find new ways to support clients.
4. If you are up to the task, fast-growing businesses with 10-25 users are a perfect segment to go for. They have typically outgrown their existing provider and will often have stories of woe regarding existing and previous IT support!! This is a good opportunity to get in and make a good impression. You really have to know your stuff though, as you'll be expected to have knowledge on everything from Sage, to multi-site VPNs. You can earn a good living supporting just a handful of this type if client. Do a good job and you will grow with them. They are more likely to be amenable to investing in good infrastructure, services and support.
5. Get one or more business partners if you can. This is not a business to go into on your own. Getting stuck on a "business down" call at one customers site could be disastrous if all of your other customers need you too. Also in IT, never has it been more true that two (and preferably more) heads are better than one.
6. My final tip - have a exit plan! IT is very demanding and you won't want to be on the frontline for too many years.
Good luck with your venture!
(Excuse any typo's. written from my phone)!