I know several people that have set up computer shops and made them a great success. They are a great way of attracting new repair business 'in the back room', although the art of running a shop is very different to running a repair business...
The main issue is the upfront cost of setting up - which I guess is going to be tens of £k to secure it and have any quantity of stock. Naturally there is no reason you can't start off small, by selling a few PCs along with (mainly) the components which you'll be using for repair anyway.
£500 a month - things always work out more expensive than you first believe - for one thing, your Dad's salary needs to be taken care of.
Location sounds ideal... is now a good time to negotiate good terms with the landlord, e.g. nothing up front and maybe a few months free and/or no long term commitment?
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