Looking to start your own cellphone repair business and have no idea where to begin? This article will help you plan out your business efficiently.
The cellphone repair business is no doubt around a billion-dollar industry. With just a little investment and minimal experience, you can start your journey to success.
Starting a cellphone repair shop takes more than just getting it registered in your state. Our simple guide will ensure that your business is strategically planned, registered, and legally compliant.
Without any further ado, let’s dive into the process.
Stage 1 – Drafting your Business Plan
Once you have decided to set up a cellphone repair shop, the first step is to chalk out a business plan. Studies have revealed that a business plan increases the chances of kick-starting a successful business.
A well-planned cellphone repair shop strategy will provide the owner a road map to achieve their business goals.
Stage 2 – Forming a Business Entity
A business entity refers to the process of getting your business legally structured. Business entities are of 4 kinds: Partnership, Proprietorship, Limited Liability Company, and Corporation. There are certain advantages and disadvantages of each type, i.e., costs, liability exposure, and administrative requirements.
For a cellphone repair shop to be successful, it is essential to pick the business entity type before proceeding. Once you know your business type, taking care of the legal requirements should be easy.
Stage 3 – Naming the Cellphone Repair Shop
Selecting the name of the business can be difficult at times. Remember to pick a name that resonates with your target audience and is available for use.
Stage 4 – Choosing the Location
Choosing the location of the repair shop depends on the budget you have.
A brick-and-mortar storefront space and kiosk are just a few options that you can explore. Brick-and-mortar can be leased but are costly. Storefront spaces and kiosks located in a crowded area can attract a lot of foot traffic.
If you find the above options costly, then you have the option of running the business out of your home. This set-up will give you room to test the market before investing in a permanent place. It will also allow you to make a loyal customer base.
Stage 5 – Applying for Permits and Business License
Good news for you. Cellphone repair shops don’t require special licensing. Employer Identification Numbers, Sales Tax Permits, and Occupancy Permits must register with the state, local, and federal bodies.
Once you have registered with these entities, you are good to go.
Stage 6 – Setting up a Business Bank Account
To avoid any confusion, it is important to keep your personal and business accounts separate. This differentiation will help you track your business expenses and income easily.
Stage 7 – Getting a cellphone repair shop software
A cellphone repair shop software is something that many people skip without even trying to understand the benefits it can provide. A good POS software has all the features that can help you run your cellphone repair shop operations smoothly.
You can manage your inventory, create tickets and invoices, delegate tasks to your employees, and manage your staff, all with just a few clicks. It can also help you plan and forecast your business strategy.
Some cellphone repair shop software offers trial periods so you can test and decide accordingly.
Stage 8 – Marketing your business
Marketing is the key pillar that helps a business reach its audience. It is important to have a marketing strategy.
A suitable option is to delegate a budget for it. Postcards, flyers, business cards, and brochures are just a few options that can help you market your business. You can also advertise online by leveraging digital marketing tools such as Facebook, Craigslist, Instagram, etc.
Once your cellphone repair shop becomes known in the market for its excellent services, you will automatically start earning more.
Stage 9 – Obtaining Insurance
Another important aspect of running a successful cellphone repair shop is getting insurance. The type of insurance depends on your needs. A few examples are:
- General Liability Insurance: It will cover medical expenses and damages. For example, if a customer falls or trips in your repair shop, general liability insurance will cover it.
- Commercial Property Insurance: It covers the expenditure of the store building, inventory, and equipment in case of fire or other damage.
- Workers’ Comp Insurance: It covers the employee’s lost wages in case of injury on the job. It is important to get this insurance for your employees.
You can always talk to the insurance company to get more details and choose a plan that suits you well.
Stage 11 – Hiring Employees
If you are planning to go big, you will require help. With employees, the work can be divided, and it will help everyone maintain a work-life balance. You can decide the number of employees according to the amount of work you are anticipating.
Now that you know the important steps for setting up your cellphone repair shop, you can immediately start working on it.
Don’t skip any step!
Good Luck!
