Investment, How to Choose Location and More
The mobile phone industry in India (also in the world) is growing very fast; for a country like India, this means a large base of cell phone users across all cities, towns, and rural areas.
The industry is characterised by intense competition; this (competition) results in making the product technologically advanced and relatively cheaper. The growth of the internet and social media is further fuelling the purchase of smartphones. All these factors combine to create a good scope for a mobile repairing business.
People sometimes refer to the business to convert an idea into a product or a service by managing several resources. The most critical resource (to start a firm) is finance (or capital). Therefore, let us review at the outset how much money may be required for a mobile phone repair- business startup. Your investment is dependent on the scale you wish to begin, whether it is a full-fledged brick and mortar startup or a business from home setup. But, quality of service common to both will be the differentiator (with other repair shops).
Mobile Repairing Business: Investment
Cell phone repair business from home is a low investment affair since your expenditures are mainly for a few essential spares, promotion, tools & equipment and furniture. You can start with funding in the range of Rs 1 lakh to Rs. 1.25 Lakhs. However, as a qualified technician, it is assumed that you will handle the entire repair work.
However, a good mobile repair business will require detailed planning and background work before launching it.
What are the components of investment?
1) Shop (rental / leased) 2) Furniture 3) Equipment & tools 4) Spare parts 5) Employee/s 6) Promotion of the business (both online and offline channels).
The estimated investment for a store (200 sq. ft) is around Rs. 5 to 7 Lakhs, considering its location as a mid-market residential area. In the case of a shopping mall or a high profile marketplace, the quantum of investment will go up.
Once you have an idea of your mobile repair startup's funds requirement, it is time to review your entire mobile repair shop business plan to give it a final shape. What are the other parameters to consider for your business?
Mobile repair business: Other parameters
A critical feature for your shop; recommended size is around 200 sq. ft; the shop must have straightforward accessibility for your customers and is easily reachable for both residential and commercial clients. A location near a large residential area can give you a favourable word of mouth fast if your service is satisfactory.
2. Licences & Permits:
A trade license issued by the local authorities (corporation/municipality ) is the first requirement after you have settled on the location; a separate bank account for your business is another; GST and other registrations as applicable.
It makes business sense to keep overheads low initially, but a proper service facility must have a minimum of two technicians. If you are qualified and trained to do the job, hire one more technician.
The emphasis during selection should focus on expertise with various models and exposure to direct customer handling.
4. Inventory and other systems:
The ready availability of spares is a crucial factor for the success of your mobile repairing business. Considering the number of items involved, investing in software to manage stocks scientifically makes sense. A proper labelling system of physical stocks will help in quick retrieval.
Your shop should operate a suitable software managed invoicing, receipts and accounts. It will not only reduce the workload but will add to your reputation and image.
Also Read: Mobile Brands in India
5. Equipment and furniture:
Testing and quality checking tools/equipment are a necessary investment and must be done under expert advice and guidance.
The purpose of the shop furniture should be to facilitate easy working and customer handling. A proper ambience even within a limited space should be created.
6. Promoting your business:
With the facility in place, you now need to focus on attracting customers. You have to use both offline and online promotion.
Poster/handbills/display at local events are the usual channels of local promotion. You can use digital tools to identify your potential customer profile and work out an online strategy to reach them.
Launching your website is a top priority since the younger generation will use Google (> phone repair shop near me) to find a phone repair shop.
Besides, you must be on social media both in terms of announcement and interaction with potential customers. Spending on promotion from day one is a need today and should be considered as a necessary investment.
Digital marketing has come as a boon to small businesses, and one must use it professionally to generate a brand image for your shop in a cost-effective way.
You have a fair idea now on how to start a phone repair business. Let us focus our attention on a few tips and suggestions.
Mobile repair startup: Tips for growth
1. Quality focus:
Only a satisfied customer will come back and recommend it to others. Quality should reflect in everything, from the skill of your technical hands to the spares used. Time (of servicing) is an essential parameter for the client, and you must give proper attention.
2. Building trust:
Trust-building takes time- but the process must begin at the earliest. Communicate your policy on confidentiality to customers. Your invoices can have a by-line on the same. In today's scenario, a bundle of personal data is stored on the phone; people may be apprehensive of data safety during servicing.
Maintaining a delivery schedule is another crucial factor in creating trust. In case you are unable to handle a particular repair due to spares unavailability, not familiar with the model, or any other reason, it is better to turn down the business politely at the first instance.
3. Additional revenue items
1. Support services: With phones getting feature-rich, everyone is not comfortable with several phone functions. You can start a service of guiding phone users on how best to maximise a phone's utility. You may help them to download utility apps and shortcuts for using social media. Members of the older generation will find this service particularly helpful.
You can plan to become an authorised support associate for some of the leading brands (for your shop's neighbourhood area) for assisting people with first time- use and setup. With growing e-commerce, online purchases of phones are increasing rapidly.
2. Selling other items: You can supplement your revenue by offering mobile phone accessories, phone covers/cases, storage devices and more.
Your cell phone repair business's success will depend entirely on how much value you create for your customers. The quality of your service and customer relations are the main pillars of your business- it is upon you to decide on the number of storeys you wish to build.
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Q. I have a mobile repair shop. My monthly sale is around Rs. 2 Lakhs. How will I benefit from investing in systems?
Ans. Technology helps to save both direct and indirect costs; inventory software will allow you to better manage your spares stocks by alerting you on critical levels. Similarly, accounting software can help you track outstanding, inform you on the due date of supplier payments and keep your records updated.
A computerised invoice will also improve the credibility of your shop. Several online fintech companies offer low-cost software for small businesses. OkCredit is a reliable company in this field with a large base of users.
Q. Some customers are asking me to sell used phones. Will it help my revenues?
Ans. Used phones may give you some additional business, but from a long term perspective, you will find it challenging to sell new phones or even new accessories as customers will brand you as a used phone seller.
Q. How profitable can be a cell phone repair business?
Ans. It depends on factors like quality of service, the reputation of the shop, overheads. But in general, you can easily make a margin of over Rs 30000 in a city location with a proper multi-brand repair shop.