A mobile phone repair company specialises in fixing broken or damaged phones and tablets.
Follow these ten steps to start a mobile phone repair business:
Plan your Cell Phone Repair Company
Create a legal entity for your cell phone repair business.
Taxes must be registered for your cell phone repair business.
Create a Business Bank Account and a Credit Card
Create Accounting for Your Cell Phone Repair Company
Get the Permits and Licenses You Need for Your Cell Phone Repair Business
Obtain Cell Phone Repair Company Insurance
Define the Brand of Your Cell Phone Repair Company
Make a website for your cell phone repair business.
Configure your Business Phone System
Starting a company entails more than just registering it with the state. This straightforward guide to beginning a mobile phone repair company has been put together by us. These stages will guarantee that your new company is well-planned, correctly registered, and legally compliant.
STEP 1: Make a business plan.
A well-thought-out strategy is vital for entrepreneur success. It will assist you in mapping out the intricacies of your organisation and uncovering some unknowns. Consider the following crucial topics:
What are the initial and continuing expenses?
Who is your intended audience?
How much money may you charge your customers?
Fortunately, we have done a lot of the legwork for you.
What are the expenses of starting a mobile phone repair business?
The majority of the initial expenditures will be rent and utilities, depending on where your store is located. Some mobile phone repair businesses operate as kiosks in shopping malls or other high-traffic areas. These are less expensive, but they may not have enough storage space for your company as it develops and evolves.
Some firms work from home, reducing much of the costs associated with a physical site. There may be some loss of walk-in consumer business, but the majority of customers will discover your company online through a website or webpage via social media. There are many possibilities and settings for how you will set up your firm, so think carefully about what will work best, both now and in the future.
What are the continuing costs of running a mobile phone repair business?
Other than rent and utilities, the majority of expenditures for a brick and mortar will be created by purchasing parts and materials for real repairs. And, after the repairs are finished, you should be able to reclaim these charges. As your company grows, you may incur more expenditures such as advertising or recruiting new employees, but this industry has a minimal overhead.
Who is the intended audience?
Consumers of technology are your target market. You’re going after the smart IT user who knows how a repair may save them time and money. Owners will want to stick with tried-and-true tech connection options, especially as mobile phones and other gadgets grow more pricey and powerful.
The environmentally concerned tech consumer is another smaller, but rising, target market. As more individuals become aware of the rising issue of additional electronic trash to our landfills, there are an increasing number of customers who want to use a gadget for as long as possible, with repairs and updates keeping their item operational and out of a landfill. To boost your entire company bottom line, appeal to both of these aesthetics.
How does a mobile phone repair company generate money?
Customers pay money to have their cell phone or other mobile device fixed or updated, which generates revenue.
How much money may you charge your customers?
Repair and upgrade costs will vary based on the device’s manufacture and model. A shattered screen, for example, may cost as little as $75 and as much as $300 on average. As previously said, make sure your costs are competitive, but keep in mind that repairing a $1000 phone is still considerably less expensive than replacing the phone entirely.
How much money can a mobile phone repair shop make?
An ordinary mobile phone repair company might generate between $50,000 and $65,000 per year, with additional earning potential if you become more well-known and successful.
How can you increase the profitability of your company?
Many mobile phone repair shops extend to cover repairs on other types of digital devices. Gaming systems and music production equipment may also be suitable for your repair company. You may also supply phone and data plans to clients via third-party service providers. As the technology that surrounds our life advances, there will be new opportunities to examine and incorporate in your company strategy.
STEP 2: Establish a legal entity
Sole proprietorship, partnership, limited liability company (LLC), and corporation are the most frequent business structure forms.
If your mobile phone repair company is sued, becoming a formal business organisation, such as an LLC or corporation, prevents you from being held personally accountable.
STEP 3: File your taxes
Before you can begin for business, you must register for a number of state and federal taxes.
To register for taxes, you will need to get an EIN. It’s really simple and completely free!
Taxes on Small Businesses
Depending on the business form you choose, you may have multiple choices for how your company is taxed. Some LLCs, for example, may benefit from being taxed as a S company (S corp).
These guides will teach you more about small company taxes:
Taxes on LLCs
LLC vs. sole proprietorship
Corporation vs. LLC
S Corp vs. LLC
How to Form a S Corporation
S Corporation vs. C Corporation
There may be state taxes that apply to your company. In our state sales tax guides, you may learn more about state sales taxes and franchise taxes.
STEP 4: Establish a company bank account and credit card
Personal asset protection requires the use of distinct business banking and credit accounts.
When you combine your personal and business accounts, your personal assets (your house, vehicle, and other possessions) are at danger if your company is sued. This is known as penetrating your company veil in business law.
Furthermore, understanding how to develop corporate credit may help you get credit cards and other financing in your company’s name (rather than your own), lower interest rates, larger lines of credit, and other benefits.
Establish a business bank account.
Opening a business bank account is not only required when asking for business financing, but it also:
Separates your personal assets from the assets of your firm, which is required for personal asset protection.
It simplifies bookkeeping and tax reporting.
Create a net 30 account.
Net 30 accounts are used to develop and grow company credit while also increasing cash flow. Businesses use a net 30 account to purchase items and refund the whole debt within a 30-day period.
Many net 30 credit suppliers submit information to the main business credit agencies (Dun & Bradstreet, Experian Business, and Equifax Business Credit). This is how firms establish business credit in order to get approved for credit cards and other lines of credit.
Apply for a business credit card.
Obtaining a business credit card benefits you in the following ways:
Put all of your company’s costs in one location to separate personal and business spending.
Build your company’s credit history, which will be important for raising funds in the future.
STEP 5: Establish business accounting
Recording your numerous costs and sources of revenue is crucial to assessing your company’s financial status. Keeping precise and thorough accounting also makes yearly tax filing much easier.
STEP 6: Obtain all required permissions and licences
Failure to get appropriate permissions and licences may result in significant penalties or possibly the closure of your firm.
Requirements for State and Local Business Licensing
To run a mobile phone repair company, several state permissions and licences may be required. Visit the SBA’s reference to state licences and permits to learn more about licencing requirements in your state.
For information on local licences and permissions, visit:
Check with the clerk’s office in your town, city, or county.
Contact one of the local organisations mentioned in the US Small Business Associations database of local business resources for help.
A mobile phone repair company is often conducted from the comfort of your own home or a shop. A Certificate of Occupancy is often required for businesses that operate from a physical site (CO). A certificate of occupancy certifies that all building rules, zoning laws, and government requirements have been satisfied.
If you intend to rent a space:
In most cases, it is the landlord’s obligation to get a CO.
Before leasing, ensure that your landlord has or can receive a valid CO for a mobile phone repair company.
A new CO is often required after a big remodelling. If your location will be refurbished before opening, incorporate wording in your leasing agreement saying that lease payments would not begin until a valid CO is given.
If you intend to buy or create a location:
It is your responsibility to secure a valid CO from a local government entity.
Examine all building regulations and zoning standards for the area of your company to guarantee that your mobile phone repair business will be in compliance and able to receive a CO.
STEP 7: Obtain commercial insurance.
Insurance, like licences and permits, is required for your company to operate safely and legally. In the case of a covered loss, business insurance protects your company’s financial well-being.
There are several sorts of insurance plans designed for various types of companies with varying risks. If you are unaware about the hazards that your company may encounter, start with General Liability Insurance. This is the most popular coverage required by small companies, so it’s a good place to start for yours.
Workers’ Compensation Insurance is another important insurance product that many companies need. If your company will have workers, your state may require you to purchase Workers’ Compensation insurance.
STEP 8: Establish your brand
Your company’s brand is what it stands for, as well as how the public perceives it. A strong brand will help your company stand out from the crowd.
How to Promote and Market a Cell Phone Repair Company
Your first priority for success will be ensuring that clients are aware of your company and the services it provides. As a result, advertising and marketing are crucial jigsaw parts. Furthermore, in order to keep prices low, you should explore all of the low-cost, but efficient techniques of getting your brand out there among customers.
To begin, business cards, flyers, pamphlets, or handouts outlining your rates and areas of expertise are still beneficial, particularly if you can put them in locations where clients would see and pick them up. Some non-competitive technology businesses may allow you to put your contact information on their counters or in storefront displays. You may also distribute cards and brochures at social events in your city or area. You’d be amazed how many individuals would refer to the physical goods they get on a regular basis.
Next, consider creating a website or launching a Facebook or Instagram profile. When searching for a mobile phone repair company, many clients will do a Google search first. You want to be their first choice, therefore employ keywords to propel your company to the top of these searches. You may also be able to join social clubs, groups, or organisations focused on technology, including gadget maintenance and customization.
Finally, make an effort to interact with your consumers. Positive feedback and word-of-mouth recommendations are excellent marketing strategies. When a buddy suggests another friend, they are more likely to act on the suggestion since it comes from a trusted source. Remember that the key aim is to become recognised and trusted, and then to maintain your good reputation.
How to Keep Customers Returning
As previously said, client evaluations and recommendations may be some of the most significant parts of a successful company. Create commercial ties with your clients. Don’t make promises you can’t keep. Also, don’t set your pricing too cheap only to entice clients. You must compete, but you must also be similar to your competitors. You may run promotions from time to time, particularly for returning consumers. You may also wish to make preparations for future service visits. These incentives will encourage people to think of you first when looking for a repair service.
STEP 9: Create your company’s website.
After you’ve defined your brand and designed your logo, the next step is to build a website for your company.
While developing a website is an important step, some may be concerned that it is out of their grasp due to a lack of website-building skills. While this was a fair concern in 2015, online technology has made significant advances in recent years, making the lives of small company owners considerably easier.
The following are the primary reasons why you should not put off developing your website:
Every genuine company has a website, period. When it comes to bringing your company online, it doesn’t matter what size or sector it is.
Social media accounts, such as Facebook pages or LinkedIn company profiles, are not a substitute for your own business website.
STEP 10: Install your company phone system.
Getting a phone for your company is one of the finest methods to keep your personal and professional lives distinct and private. That isn’t the only advantage; it also helps you automate your company, provides it legitimacy, and makes it simpler for prospective clients to identify and contact you.