PC density in India is 1.8/1,000, which is tiny compared to the American 400/1,000. The demand for computers is expected to grow substantially in the coming years and many will initially opt for second-hand computers.

The government's decision to provide sops to the IT sector will help lower computer prices which will reduce the price-gap between computers available in the grey market and the branded ones and push the customers to go for the latter. At present, 50 per cent of the PC market is cornered by the assemblers.

Different configurations are required for different purposes. A computer, which has become obsolete for the advanced user, can be the right choice for a beginner.

Hardly any initial investment is required to plungeinto this business. Start by keeping a tab on neighbourhood requirements and sellers. A rich second-hand computer data bank can be created by using various sources such as dealers and the information systems department in corporate offices. A good database will help save you from spending money in purchasing computers. Knowledge of servicing is an advantage but one can always keep someone for this purpose if the scale of operation permits. Acquire good contacts in computerised offices which sell old stock. To sell second-hand computers, schools are one of the best places. Nevertheless, business professionals too, can be approached. And once you establish a reputation, it will become easy to operate.