Cell phone repairing to date remains one of the most profitable small-scale technology-based businesses. While many people wish to join the sprawling business, most of them don’t know how to start. Here’s a complete step-by-step guide on how you can start a successful cell phone repair business.
As per a recent study, one cell phone breaks in every two seconds around the globe. Given the population and the increasing number of smartphones, that is a serious problem. With very few experts knowing how to fix cell phones, especially smartphones, the repairing industry is not able to meet the growing demand.
10 Steps to Start Cell Phone Repair Business
1. Learn About Cell Phone Repairing Basics
The smartphone repairing business is very different than any other business. If you are someone who doesn’t know anything about smartphone repair, first you need to learn. It’s better to join a school or work at some other smartphone repairing facility that will help you to learn the required skills.
Experts advise buying some phones for practice before you get into the cell phone repair business commercially. There are plenty of practice phones listed for buying in marketplaces like Amazon, and eBay. These phones cost you very little. Buy one phone at a time and master the craft of repairing each phone.
The next step before getting into the real phone repairing business, try to repair the phones of your friends and relatives. This will give you the confidence needed to become an expert.
You can also learn online from the comfort of your home and fine-tune your skills. There are plenty of basic and advanced level courses available online for learning.
2. Choosing A Business Model for Cell Phone Repair Business
Generally, there are four options for starting a cell phone repair shop:
- Open a cell phone Shop with a phone repair service counter.
- Provide phone repairing services at the customer’s doorstep.
- Start a home-based smartphone repair shop.
- Open a phone repair shop with a retail storefront.
While many people wish to sell mobiles and offer repair services at the same time, offering only repairing services will push you into a single domain. The profit margins are generally low in repairs but it’s better to start with a single focus in the early stage. You can grow your business at any time in the future.
If you are a newbie, it is better to start at home. Opening a storefront will increase your cost. Opening a retail mobile store is advised only when you have a customer base.
3. Cost of Starting a Mobile Phone Repair Business
The best part of a smartphone repairing business is its low capital cost. It’s up to you to want you to start with, either screen repairs, hardware parts, or part replacements. You can upgrade your inventory according to your needs.
While to start with, you will have to invest in a few tools and machinery. Nowadays, mobile repair kits are available offline and online.
Some basic tools needed are a soldering iron, soldering station, solder wire, solder paste, liquid flux, paste flux, jumper wire, tweezers, screwdriver, multimeter, dc power supply, ESD-Safe antistatic wrist strap, mat, apron, hand gloves, LCD tester, Battery tester, PCB holder, PCB Cleaner. All of these may cost you somewhere between $150 to $600.
In addition to these, you need to invest in parts of different models of mobile cell phones. While repairing you may need to replace specific parts.
4. Create a Business Plan
Preparing a business plan will help you to have a clear set of goals. Supposedly you plan to start with repairs only and wish to expand to smartphone sales in a year or two. This will help you to make better decisions for your smartphone repair business.
Some of the basic aspects to include in your cell phone repairing business are:
- What are the startup and recurring costs?
- Who is your target market?
- Name of your Cell Phone Shop
- Your Pricing Strategy
- How Much Money do You expect to Earn?
5. Choosing The Location
The location will typically base on your business model. It is indeed a fact, operating from a storefront will ensure higher visibility.
However, since you have decided to start home-based, your startup cost is subsequently low. Your home-based setup must have a professional look so it impresses customers.
Register yourself on different online portals where people around your area can book a service. You can also offer pick-up and home delivery services for better customer satisfaction.
6. Decide on What Cell Phones to Repair
Smartphones are of a variety of types. With so many brands available, there are different parts and subparts for different brands. iPhones as easy to repair, so you can start by fixing minimal parts and tools.
You can slowly expand to other brands as you gain experience. To start with, you can offer screen replacements, hardware repairs, part repairs, and system upgrades.
7. Inventory Management
As a repair business, you will have to keep enough parts to keep up with the demand. Cell phone repair service requires the availability of multiple parts. Depending on the supply and the orders you receive, you can keep the parts with you. Do not overstock your items.
It’s better to keep 5-20 pieces of each of the items your repair on a daily basis and there’s a demand for such repairs.
8. The Legalities of Cell Phone Repair Business
There’s no proper legal work involved. But if you are starting a shop, if not from home, you will have to follow the standard procedure with a government ID to file for taxes. This is a service you are offering, so there will be an added tax involved, which will vary from country to country.
As of now, there’s no need for any special license or permit to start a home-based cell phone repair business in most places around the world.
9. Regular Technology Upgrade
This is an ever-evolving industry. Technology is getting better every day, and you as a service provider will have to keep upgrading yourself. You can always choose a specific niche to work on. Select your own category, and offer services related to it. But keeping yourself upgraded with the latest technicalities is very important in the smartphone repairing business.
10. Promoting Cell phone Repairing Business
Once you start your business, now it’s time to put the word out. You will have to promote your business and let people know about your services. Today almost everyone uses a smartphone, so you have a potential market all around you. Start with flyers and placards at different local community events and nearby stores. The best place to promote your business is at or around smartphone shops and tech centers.
The business involves huge profits with flexible working hours. With one of the highest returns in a business, starting a cell phone repairing business is easy and highly profitable.
About the Author: 99businessideas.com led by Rupak Chakrabarty is committed to helping beginners, entrepreneurs, and small business owners in starting, managing, and growing their businesses.