Despite the recent advent of smartwatches, individuals still maintain a strong preference for traditional clocks. These are clocks that need regular care and sometimes break down, necessitating the services of a professional to repair.
Clock repair shops fix broken and dysfunctional timepieces. Traditionally, the sector has been dominated by older males, who are now retiring and opening up prospects for new company owners. Many established firms report backlogs ranging from six weeks to a year, indicating that there is a need for this sort of work.
Table of Contents
Follow these ten steps to start a clock repair business:
Plan your Clock Repair Company
Make your Clock Repair Company a Legal Entity.
Register your Clock Repair Company with the IRS.
Create a Business Bank Account and a Credit Card
Create Accounting for Your Clock Repair Company
Get the Permits and Licenses You Need for Your Clock Repair Business
Purchase Clock Repair Business Insurance.
Define your Clock Repair Company Brand
Make a website for your clock repair business.
Configure your Business Phone System
Starting a company entails more than just registering it with the state. This basic guide to beginning a clock 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 clock repair business?
The startup fees for a clock repair service company are cheap. Aside from training, company owners require:
Clock repair space
Vehicle used for home visits
a collection of specialised tools
To keep the initial investment cheap, company owners might set up a repair room in their home and utilise their own automobiles for house visits.
The expenses of the tools may add up to a few hundred dollars. Clockworks, which offers repair tools, has a $250 tool. The rest of the tools cost $55 or less, with several under $20.
Clock repair service enterprises are still reasonable for company owners who wish to buy an established organisation. Spokane Clock, for example, is for sale at $40,000.
What are the continuing costs of running a clock repair business?
When a clock repair service company is conducted from home, the recurring expenditures are modest. They cover a percentage of the owner’s utility and transportation bills, as well as any advertising fees. Many company owners avoid acquiring a retail site since it adds a lease payment, extra utilities, and other costs.
Many repairs need the use of components, but these prices are included into customers’ bills. They might be paid individually or as part of a fixed cost.
Who is the intended audience?
A clock repair service draws a diverse range of consumers. Collectors and those who inherit family clocks as heirlooms are typical consumers. Many clients who have inherited a clock have it serviced even if the repair expenses exceed the clock’s worth.
How can a clock repair shop earn a profit?
Clock repair services generate money by repairing timepieces. Dale Foust and Jason Hahn, two industry professionals, describe what a regular clock servicing entails:
Cleaning the clock using ultrasonic waves
Polishing visible components
Parts testing and troubleshooting
Replacement of worn-out and damaged components
Final cleaning and testing of the clock
How much money may you charge your customers?
Clock repair service firms offer a wide range of costs, although most repairs cost several hundred dollars. A young company owner earned $150 repairing two cuckoo clocks on the low end. The job took 5 to 6 hours and did not need any components. Mike Murray costs between $300 and $1,400 for most services on the high end. He also increases the size of components by 100 to 300 percent (occasionally 1,000 percent for rare parts).
How much money can a clock repair shop make?
A simple little company like clock repair may earn a lot of money. Each month, Spokane Clock spends $4,500 on repairs. When a firm is conducted from home, almost all of the income is profit. (There is a retail outlet for Spokane Clock.)
How can you increase the profitability of your company?
A company owner might become a wheel expert to generate income (horological machinist). This needs significant instruction, but once taught, a company owner may create the little wheels seen within clocks.
Because few clock repair technicians are wheel specialists, becoming one might help you get better-paying jobs. Other industry experts may even request custom-made components from a wheel specialist they know.
STEP 2: Establish a legal entity
Sole proprietorship, partnership, limited liability company (LLC), and corporation are the most frequent business structure forms.
If your clock repair firm is sued, forming 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 clock 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.
Occupancy Certificate
A clock repair shop is usually conducted from a storefront. 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 get a valid CO for a clock 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 laws and zoning restrictions for the location of your company to guarantee that your clock 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 Clock Repair Company
A maintenance service for clocks The advertising efforts of a company should be focused on reaching clients within the company’s established service region. Local search engine optimization and customer reviews will assist a company in attracting people who seek for clock repair online. Sponsoring organisations and posting advertisements in local newspapers will raise offline awareness.
How to Keep Customers Returning
A good level of service provided by a clock repair service firm may keep consumers coming. Impressing consumers will guarantee that they return when their clock need servicing, and it may lead to recommendations.
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.