cellphone repair business plan

Cell Phone Repair Business Plan Template

Written by Dave Lavinsky

Cell Phone Repair Business Plan

You’ve come to the right place to create your Cell Phone Repair business plan.

We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Cell Phone Repair businesses.

Below is a template to help you create each section of your Cell Phone Repair business plan.

Executive Summary

Business overview.

Aurora Phone Repair is a cell phone repair business located in Aurora, IL. We offer a wide suite of services that address the most common issues and damages that occur to cell phones. These include screen repairs, battery replacements, and water damage repairs. In addition to repairs, we also sell a variety of phone accessories, such as cases, screen protectors, and chargers.

Aurora Phone Repair is founded and run by Tim Bradshaw. Tim has been a phone and tech geek for years and has purchased several of the most popular and expensive phones on the market. A year ago, he broke his high-end phone and found that no repair shop was willing to fix it. He was able to repair it on his own and found that his skills exceeded those of local repair shops. That’s when he decided to open his own phone repair shop using his expertise in technology and extensive skill set in fixing electronics. With his skill and the right team, Tim expects his business will become the most popular phone repair business in the area in the next five years.

Product Offering

Aurora Phone Repair is a one-stop shop for all one’s phone repair needs. We can repair nearly everything from a cracked screen to water damage. We will have a full staff of trained professionals with years of experience repairing phones and other electronics. As such, we can repair many of the problems that phones have in their lifetime, including problems our competitors won’t fix. In addition to repairs, we also sell a limited variety of phone accessories, such as earbuds, cases, and chargers.

Customer Focus

Aurora Phone Repair will target phone owners in Aurora, Illinois. In the modern age, this includes nearly all of the population, but we expect most of our customers will be young adults or demographics that can’t afford to replace their phones often. We will also target small and medium-sized businesses that provide their employees with work cell phones. No matter the customer, Aurora Phone Repair will deliver the best communication, service, and results.

Management Team

Aurora Phone Repair is owned and run by Tim Bradshaw, a phone aficionado who has extensive experience repairing and upgrading electronics. He started the business after failing to find a nearby shop that could fix his phone. He was able to fix it himself and found that his skills were superior to many of the local repair shops. After this experience, he decided to open his own repair shop so he could help the residents of Aurora fix their phones.

Success Factors

Aurora Phone Repair will be able to achieve success by offering the following competitive advantages:

• Skilled team of phone repair technicians who will be able to diagnose and repair a wide variety of phone issues in a timely manner.
• Same-day appointments and quick repair services.
• The founder has extensive experience repairing electronics and will only hire staff members who also have years of experience in the industry.
• Competitive pricing along with several promotions and discounts.

Financial Highlights

Aurora Phone Repair is seeking $175,000 in debt financing to launch its phone repair business. The funding will be dedicated to securing the shop location and purchasing phone repair equipment and supplies. Funding will also be dedicated towards three months of overhead costs to include the payroll of the staff and marketing expenses. The breakout of the funding is below:

• Phone repair shop build-out: $50,000
• Equipment, supplies, and materials: $25,000
• Three months of overhead expenses (payroll, utilities): $50,000
• Marketing costs: $25,000
• Working capital: $25,000

The following graph below outlines the pro forma financial projections for Aurora Phone Repair.

Company Overview

Who is aurora phone repair.

Aurora Phone Repair is a cell phone repair business located in Aurora, IL dedicated to providing the best services in the industry. We can repair nearly any common phone damage or issue including screen repairs, battery replacements, and water damage repairs. We have the most experienced staff of professionals in the area and can even repair issues rejected by other phone repair shops. We are committed to providing our customers with the best possible service and only use the highest quality parts and tools to get the job done.

  Aurora Phone Repair is founded and run by Tim Bradshaw. Tim has been a phone and tech geek for years and has purchased several of the most popular and expensive phones on the market. A year ago, he broke his high-end phone and found that no repair shop was willing to fix it. He was able to repair it on his own and found that his skills exceeded those of local repair shops. That’s when he decided to open his own phone repair shop using his expertise in technology and extensive skill set in fixing electronics. With his skill and the right team, Tim expects his business will become the most popular phone repair business in the area in the next five years.

Aurora Phone Repair’s History

Upon surveying the local customer base and finding potential shop locations, Tim Bradshaw incorporated Aurora Phone Repair as an S-Corporation on August 1, 2023.

The business is currently being run out of Tim’s home office, but once the lease on the shop location is finalized, all operations will be run from there.

Since incorporation, Aurora Phone Repair has achieved the following milestones:

• Found a potential location for the shop
• Developed the company’s name, logo, and website
• Created the list of services the company will provide
• Determined equipment and inventory requirements
• Began recruiting key employees

Aurora Phone Repair’s Services

Aurora Phone Repair is a one-stop shop for all of Aurora’s phone repair needs. We offer a wide range of services, including:

• Screen repair
• Battery replacement
• Water damage repair
• Charging port repair
• Speaker repair
• Microphone repair
• Camera repair
• Home button repair
• Power button repair
• Volume button repair
• Back cover replacement

In addition to repairs, we sell a limited selection of phone accessories, including:

• Phone cases
• Screen protectors

Industry Analysis

The cell phone repair industry has experienced overall growth over the past several years. The main reason for this growth is due to inflation. The rising cost of phones is felt by everyone, no matter what model they choose. While simple smartphones cost about $200-300, a good phone will easily cost upwards of $1000. Inflation is making it much harder to replace phones, so many head to phone repair services to fix any issues and keep their phones working for as long as possible. This is further amplified by the staggering minimum wage and high unemployment rate.

Furthermore, though technology is getting more expensive, it is also becoming more replaceable. Many forms of technology begin to show problems within months or a few years of use. As such, many people replace their phones every few years or even yearly. However, many people cannot afford to do this so they either must settle for a less-than-optimal functioning phone or phone repair services.

According to UnivDatos, the Smartphone Repair Market was valued at $185 billion in 2020 and is expected to grow at a CAGR of 5% from now until 2027. This is moderate growth that shows there is demand for these services. As such, we expect that Aurora Phone Repair will be highly profitable over the next several years.

Customer Analysis

Demographic profile of target market, customer segmentation.

Aurora Phone Repair will primarily target the following customer profiles:

• Individual cell phone owners
• Lower and middle-class residents
• Small businesses

Competitive Analysis

Direct and indirect competitors.

Aurora Phone Repair will face competition from other companies with similar business profiles. A description of each competitor company is below.

iFix is a cell phone repair company that offers extensive repairs for iPhones. They have a team of certified technicians who can repair any model of iPhone, including the earliest models. The team is highly experienced and is able to repair many issues that even Apple stores won’t resolve. iFix is particularly loved for their pricing, which is much more affordable than other iPhone repair services or purchasing a brand-new phone. Though they are extremely popular, since they only repair iPhones, they will only be a minor competitor for our target demographic.

UBreakIFix is a national chain of phone repair stores that offers same-day repairs for most types of phones. They have a team of certified technicians who can repair both hardware and software issues. UBreakIFix is known for its wide range of services, as well as its friendly and knowledgeable staff. The company is also known for its convenience, offering long hours and multiple locations. UBreakIFix will be our biggest competitor.

Mobile Phone Repair Services

Mobile Phone Repair Services is a local mobile phone repair company that offers repairs for all types of phones. They have a team of experienced technicians who can repair both hardware and software issues. They don’t have a shop location; instead, they offer mobile services to repair phones at customer’s homes or offices. Though these services are highly convenient, they also come with an extra cost. Those who have the time to visit a shop will prefer to save money by getting their phone repaired by Aurora Phone Repair.

Competitive Advantage

Aurora Phone Repair will be able to offer the following advantages over the competition:

• Client-oriented service : Aurora Phone Repair is committed to providing client-oriented service that offers personalized repair services for every client.
• Management : Tim Bradshaw has been extremely successful in repairing phones and other technology and will be able to use his previous experience to grant his clients extensive phone repair services. His unique qualifications will serve customers in a much more sophisticated manner than Aurora Phone Repair’s competitors.
• Affordability : Many people who hire phone repair services do not have much disposable income. Otherwise, they would easily replace their broken phones with new ones. Aurora Phone Repair will offer all of its services at an affordable rate to ensure that our customers never break the bank to get their phones fixed.

Marketing Plan

Brand & value proposition.

Aurora Phone Repair will offer the unique value proposition to its clientele:

• Reliable results in a timely manner for most repairs.
• Competitive pricing and discounts for regular customers.
• Knowledgeable and friendly staff.

Promotions Strategy

The promotions strategy for Aurora Phone Repair is as follows:

Social Media Marketing

The company will enlist the help of a marketing specialist to create accounts on social media platforms such as Linkedin, Twitter, Instagram, Facebook, TikTok, and YouTube. The marketing specialist will ensure Aurora Phone Repair maintains an active social media presence with regular updates and informative content.

Website/SEO Marketing

Aurora Phone Repair will create a company website. The website will be well organized, informative, and list all the services that Aurora Phone Repair is able to provide. The company’s marketing specialist will also manage the company’s website presence with SEO marketing tactics so that when someone types in a search engine “Aurora phone repair shop” or “phone repair shop near me,” Aurora Phone Repair will be listed at the top of the search results.

Word of Mouth/Referrals

Aurora Phone Repair will encourage word-of-mouth marketing from loyal and satisfied clients. The company will incentivize its existing customer base to encourage friends and colleagues to hire our services.

Print Advertising

Aurora Phone Repair will invest in professionally designed print ads to display in programs or flyers and to put in magazines, newspapers, and direct mailers.

The pricing of Aurora Phone Repair will be moderate and on par with competitors so customers feel they receive value when purchasing the company’s superior repair services.

Operations Plan

The operations plan for Aurora Phone Repair is as follows: Operation Functions:

• Tim Bradshaw will be the owner of Aurora Phone Repair. He will run the general operations, help with repairs, and provide customer service. Tim will spend the next several months hiring the following staff:
• Two to four part-time staff to help repair phones and provide customer service.
• A part-time marketing specialist who will manage the marketing and promotional campaigns.
• A part-time accountant who will manage all client invoicing, billing, and payables.

Milestones:

Aurora Phone Repair aims to open in the next six months. The following are the milestones needed in order to obtain this goal.

• 9/1/2023 – Execute lease for prime location.
• 9/15/2023 – Begin build out of repair shop location.
• 10/1/2023 – Hire and train employees.
• 10/15/2023 – Start social media marketing campaign
• 11/1/2023 – Purchase initial inventory of equipment and supplies.
• 11/15/2023 – Grand opening of Aurora Phone Repair.

Tim Bradshaw is the founder and CEO of Aurora Phone Repair. He started the company after his own phone broke and was unable to find a reliable and affordable repair service. Tim saw a need for a better phone repair experience and decided to fill it. He learned how to repair his own phone and then set out to start his own company. Tim is committed to staffing the company with the most experienced repair technicians in the area who can repair nearly any damaged phone they come across.

Though Tim has never run a company of his own, he has considerable experience in repairing and upgrading technology, so he can provide the primary functions of the company. He will hire several other staff who can help him with the aspects of the business he is unfamiliar with, such as marketing and accounting.

Financial Plan

Key revenue & costs.

The revenue drivers for Aurora Phone Repair are the fees charged to customers in exchange for the company’s phone repair services.

The cost drivers will be the overhead costs required in order to staff a phone repair shop. The expenses will be the payroll cost, utilities, phone repair equipment and supplies, and marketing materials.

Funding Requirements and Use of Funds

Key assumptions.

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and pay off the startup business loan.

• Average number of phones serviced per month: 150
• Average cost per repair: $100
• Overhead costs per year: $20,000

Financial Projections

Income statement, balance sheet, cash flow statement, cell phone repair business plan faqs, what is a cell phone repair business plan.

A cell phone repair business plan is a plan to start and/or grow your cell phone repair business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your Cell Phone Repair business plan using our Cell Phone Repair Business Plan Template here .

What are the Main Types of Cell Phone Repair Businesses? 

There are a number of different kinds of cell phone repair businesses , some examples include: Mail-In Cell Phone Repair Service, Brick-and-Mortar Phone Repair Service, and White Label Cell Phone Repair.

How Do You Get Funding for Your Cell Phone Repair Business Plan?

Cell Phone Repair businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

What are the Steps To Start a Cell Phone Repair Business?

Starting a cell phone repair business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Cell Phone Repair Business Plan - The first step in starting a business is to create a detailed cell phone repair business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast. 

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your cell phone repair business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your cell phone repair business is in compliance with local laws.

3. Register Your Cell Phone Repair Business - Once you have chosen a legal structure, the next step is to register your cell phone repair business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.

4. Identify Financing Options - It’s likely that you’ll need some capital to start your cell phone repair business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.

7. Acquire Necessary Cell Phone Repair Equipment & Supplies - In order to start your cell phone repair business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation.

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your cell phone repair business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Cell Phone Repair Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business Plans » Technology Sector

Are you about starting a cell phone repair business? If YES, here is a complete sample cell phone repair business plan template & feasibility study you can use for FREE .

Cell phones are a very essential commodity that nearly every one owns. This is because of the need to keep in touch with people and be abreast with things. This is essentially one of the reasons why there has been the emergence of various cell phone companies.

These experts make sure that they come up with the best technology options for all those who buy their brand. There are times when phones may begin to pose a challenge. Those who already have gone to learn the ropes of how phones are repaired know the importance of solving all phone problems.

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One of the ways which you are able to learn how to repair phones is by going to a skill school where you can learn the ropes as well as go to a business school where you can be taught how to manage a business.

A Sample Cell Phone Repair Business Plan Template

1. industry overview.

Cell phones are used for several purposes; basically, people make use of cell phone to keep in touch with their family members and friends and for conducting their businesses et al. Some people have more than one cell phone which are used for different purposes, such as for business and personal use.

Hence, the growing demand of cell phones has indeed open – up a profitable business opportunity cum industry for aspiring entrepreneurs all over the globe. Basically, the cell phones repair services industry repairs, service and maintains cell phones and tablets such as iPads or other similar telecommunication cum electronic devices.

Companies that operate in this industry include physical cell phones repair stores (brick-and-mortar stores) which allow customers to bring in their cell phones for repair and virtual cell phones repair stores (online cell phones repair stores) which allow customers to mail in devices that need repairs.

The Cell Phones Repair Services industry is an open industry hence a low level of market share concentration. Even though large multiservice agencies operate in the industry, revenue is also spread among thousands of small firms and freelancers.

As a matter of fact, no single cell phones repair company can account for more than 5.0 percent of the total revenue generated in the industry. This is the reason why smaller cell phones repair business accounts for a large percent of the players in the cell phones repair services industry.

The industry is still dominated by original equipment manufacturers (OEMs), which are companies that have their own services centers where customers can repair or replace the same products that they purchase from them.

In most cases, because of the warrantee that comes with the cell phones or any devices manufactured by these companies, it is cheaper for them to have their repair cum customer service centers in key cities where they have high market concentration. Such centers could be outsourced or fully managed by the manufacturing company.

Statistics has it that the Cell Phone Repair industry in the united states of America, is worth $4bn, with an estimated growth rate of 1.7 percent. There are about 8,117 legally registered cell phones repair businesses scattered across the United States of America and they are responsible for employing about 21,758 people.

No doubt everybody will quite agree that the cell phones repair services industry has come to stay and of course it is one industry that plays key roles not only in the business world, but also in almost all the aspect of what goes around in our world today as long as cell phones are involved and would need to be repaired, serviced or maintained.

Over and above, the cell phone repair service industry is very open to any aspiring entrepreneur who has acquired the required trainings, skills and perhaps professional certifications to start his or her own cell phones repair business can of course make good money from the industry.

2. Executive Summary

Ariel Cell Phones Repair Shop, LLC is a licensed and standard one stop cell phone repair shop. We have been able to secure a standard and well – positioned office facility in a central business district in Los Angeles – California. We are a cell phone repair company that is set to compete in the highly competitive cell phone repair services industry not only in Los Angeles – California, but also throughout the United States market.

Ariel Cell Phones Repair Shop, LLC will offer all aspect of cell phone repair services such as Repairing cell phones, Repairing smartphones, Repairing tablets, Screen repair, Water damage repair, Battery replacement, Cosmetic damage repair, and other cell phones repair and mobile apps related services.

Our business goal is to become one of the leading cell phone repair shops in Los Angeles and we will make sure that we do all we can to compete favorably with leaders in the industry including cell phone manufacturing companies that are also into cell phone repairs and servicing.

Our workers are going to be selected from a pool of certified and highly experienced cell phone repair engineers and technicians in and around Los Angeles – California and also from any part of the United States of America as the business grows.

We will make sure that we take all the members of our workforce through the required trainings that will position them to meet the expectation of the company and to compete with leading cell phone repair companies in the United States and throughout the globe.

At Ariel Cell Phones Repair Shop, LLC our client’s best interest will always come first, and everything we do will be guided by our values and professional ethics. We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely.

We will cultivate a working environment that provides a human, sustainable approach to earning a living, and living in our world, for all our partners, employees and for our clients.

Ariel Cell Phones Repair Shop, LLC is founded by Engr. Donald Clinton a computer cum cell phone engineer per excellence who graduated with from Illinois Institute of Technology (B.Engr. Computer Engineering) and his friend and business partner for many years Kelvin Lindsay (B.Sc. Business Management).

They have a combine experience that can help them build Ariel Cell Phones Repair Shop, LLC to favorably compete with other leading cell phone repair businesses in the United States of America.

3. Our Products and Services

Much more than being in the repair service business, we will offer some cell phone products that will help maximize the phones. Ariel Cell Phones Repair Shop, LLC was established with the aim of maximizing profits in the cell phone repair services industry.

We want to compete favorably with the leading cell phone repair companies in the United States which is why we have but in place a competent quality assurance team that will ensure that every repair jobs carried out or related services rendered meet and even surpass our customers’ expectations.

We will work hard to ensure that Ariel Cell Phones Repair Shop, LLC is not just accepted in Los Angeles – California but also in other cities in the United States of America where we intend opening our outlets. Our products and services are listed below:

• Repairing cell phones
• Repairing smartphones
• Repairing tablets
• Screen repair
• Water damage repair
• Battery replacement
• Cosmetic damage repair
• Other cell phones repair and mobile apps related services

4. Our Mission and Vision Statement

• Our vision is to establish a standard and world class cell phone repair company whose services and brand will not only be accepted in Los Angeles California but also in other cities in the United States of America.
• Our mission is to provide professional cell phone repair services and other related services that will assist cell phones, smart phones and tablets owners in ensuring that their mobile gadgets are always in good shape to help them communicate with their family and friends and also carry out their business.
• We want to build a cell phone repair company that can favorably compete with other leading brands in the cell phone repair services industry.

Our Business Structure

Ariel Cell Phones Repair Shop, LLC, is a cell phone repair company that intends to start small in Los Angeles, but hope to grow big in order to compete favorably with leading cell phone repair companies in the industry both in the United States and on a global stage.

We are aware of the importance of building a solid business structure that can support the picture of the kind of world class business we want to own. This is why we are committed to only hire the best hands within our area of operations.

At Ariel Cell Phones Repair Shop, LLC, we will ensure that we hire people who are qualified, hardworking, creative, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders (the owners, workforce, and customers).

As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more as agreed by the board of trustees of the company. In view of the above, we have decided to hire qualified and competent hands to occupy the following positions;

• Chief Executive Officer
• Head, Technical Services
• Human Resources and Admin Manager
• Sales and Marketing Executive
• Cell Phones Repair and Maintenance Engineers and Technicians (10)

Client Service Executive

5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
• Responsible for providing direction for the business
• Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization

Head, Technical Services:

• Serves as project manager of the organization; works directly with employees
• Develops strategic plan by studying technological and financial opportunities; presenting assumptions; recommending objectives.
• Accomplishes subsidiary objectives by establishing plans, budgets, and results measurements; allocating resources; reviewing progress; making mid-course corrections.
• Coordinates efforts by establishing procurement, production, marketing, field, and technical services policies and practices; coordinating actions with corporate staff.
• Builds company image by collaborating with customers, government, community organizations, and employees; enforcing ethical business practices.
• Maintains quality service by establishing and enforcing organization standards.
• Maintains professional and technical knowledge by attending educational workshops; reviewing professional publications; establishing personal networks; benchmarking state-of-the-art practices; participating in professional societies.
• Makes certain that the technical department perform efficiently, coordinate employee efforts, and facilitate communications between management and cell phones repairs and maintenance engineers and technicians
• Ensures that the organization work in line with international best practices.

Admin and HR Manager

• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
• Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
• Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.
• Enhances department and organization reputation by accepting ownership for accomplishing new and different requests; exploring opportunities to add value to job accomplishments.
• Defining job positions for recruitment and managing interviewing process
• Carrying out staff induction for new team members
• Responsible for training, evaluation and assessment of employees
• Responsible for arranging travel, meetings and appointments
• Oversee the smooth running of the daily office activities.

Sales and Marketing Manager

• Manage external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
• Model demographic information and analyze the volumes of transactional data generated by customer
• Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects.
• Writing winning proposal documents, negotiate fees and rates in line with organizations’ policy
• Responsible for handling business research, market surveys and feasibility studies for clients
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Develops, executes and evaluates new plans for expanding increase sales
• Creates new markets cum businesses for the organization
• Empowers and motivates the sales team to meet and surpass agreed targets

Accountant / Cashier:

• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting for one or more properties.
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensures compliance with taxation legislation
• Handles all financial transactions for Ariel Cell Phones Repair Shop, LLC
• Serves as internal auditor for Ariel Cell Phones Repair Shop, LLC.

Cell Phones Repair and Maintenance Engineers (2) and Technicians (8)

• Responsible for Repairing cell phones
• Responsible for Repairing smartphones
• Responsible for Repairing tablets
• Responsible for Screen repair
• Handle Water damage repair
• Handle Battery replacement
• Handle Cosmetic damage repair
• Handle any other cell phones repair and mobile apps related services
• Welcomes clients and potential clients by greeting them in person or on the telephone; answering or directing inquiries.
• Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
• Manages administrative duties assigned by the creative director in an effective and timely manner
• Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries .

6. SWOT Analysis

We are aware that for any business to be seen as a force to be reckoned with in the market there has to be a high level of acquaintance about the areas of strengths and weaknesses.

Ariel Cell Phones Repair Shop, LLC engaged the services of a core professional in the area of business consulting and structuring to assist our organization in building a well – structured cell phone repair business that can favorably compete in the highly competitive cell phones repair service industry in the United States and the world at large.

Part of what the team of business consultant did was to work with the management of our organization in conducting a comprehensive SWOT analysis for Ariel Cell Phones Repair Shop, LLC. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Ariel Cell Phones Repair Shop, LLC:

Our core strength lies in the power of our team; our workforce. We have a team of certified and highly trained and experience cell phones repair engineers and technicians, a team with excellent qualifications and experience in various niche areas in the cell phones repair service industry.

Aside from the synergy that exists in our carefully selected workforce, our services will be guided by best practices in the industry.

As a new cell phones repair company in Los Angeles – California, it might take some time for our organization to break into the market and gain acceptance especially from top profile clients in the already saturated and highly competitive cell phones repair services industry; that is perhaps our major weakness.

Another weakness is that we may not have the required cash to pump into promoting our business the way we would want to.

• Opportunities:

There are lots of opportunities available in the very competitive cell phone repair business in America. No doubt, the opportunities in the cell phones repair services industry is massive considering the number of individuals who owns cell phones and other mobile communication devices and also those whose businesses depends on cell phones and other mobile communication devices. As a cell phone repair company, we are ready to take advantage of any opportunity that is available in the industry.

There isn’t a business that isn’t faced with challenges because all business at point or the other is faced with the threat situation. Hence, just like any other business, one of the major threats that we are likely going to face is economic downturn.

It is a fact that economic downturn affects purchasing / spending power. Another threat that may likely confront us is the arrival of a new cell phone repair company in same location where our target market exist and who may want to adopt same Business model like us.

7. MARKET ANALYSIS

• Market Trends

The Cell Phone Repair industry has experienced strong growth during the past decade as Smartphone and tablet usage has increased. With the rising popularity of expensive but fragile smartphones, there is indeed a major revenue boost for the industry.

One challenge that might confront players in the this industry is that in the coming years, rapid technological change, the falling price of cell phones and of course rising family and individual incomes are expected to encourage the replacement of mobile devices as against repairing them when they are damaged.

It is obvious that the Cell Phone Repair industry is highly fragmented and small businesses are known to dominate the industry. There are a large number of small companies and non – employers in the industry specializing in cell phone repair services that operate independently and are targeted to serve a small geographic region.

The industry concentration has remained very stable in the last five years, despite the fact that cell phone repair services are generally owned by small, independent operators. Lastly, the cell phones repair services industry will continue to evolve due to the advancement of cell phones technology that makes it to fragile especially the screens.

8. Our Target Market

We are aware that with the right words out there, we will be able to attract all our potential clients within a short period of starting our cell phones repair business in Los Angeles – California. Therefore, we conducted a market survey and feasibility studies and we are certain that there is a wide range of both corporate and individual clients who would need our services from time to time.

In view of that, we have created strategies that will enable us reach out to various corporate organizations and individual who we know can’t afford to do without our services. Below is a list of the people and organizations that we have specifically market our services to;

• Every individual who owns cell phones within our target locations
• Every individual who owns smart phones within our target locations
• Every individual who owns tablets et al with our target locations
• Corporate organization that make use of cell phones, smart phones and tablets to run their businesses.

Our Competitive Advantage

Surviving in the business world as a cell phone repair company requires more than, your expertise, knowing how to deliver standard repairs and maintenance but also how to network with key people that matters; decision makers that can decide who will get a cell phone supply, repair and maintenance contract.

Without a shadow of doubt, there are loads of big time investors (Cell Phones Manufacturing Companies), that have a stake in the cell phones repair services industry; but one thing is certain, there is room big enough to accommodate both the big cell phones repair companies and the small cell phones repair companies.

What smaller cell phones repair companies need to do to survive in the industry is to concentrate on providing cell phones repair, maintenance and installation services to households, individuals, estates, communities, schools, hospitals and hotels et al before bidding for big cell phones supply, repair and maintenance contracts from corporations and government agencies that operate CUG.

We are quite aware that to be highly competitive in the cell phone repair services industry means that you are not only expected to be able to deliver consistent and highly reliable cell phones repair and maintenance jobs, but you must be able to meet set targets.

No one would want to continue to hire your services if don’t always meet up with the target date of completion of projects.

Our competitive advantage lies in the power of our team; our workforce. We have a team of certified and highly trained and experience cell phones repair engineers and technicians, a team with excellent qualifications and experience in various niche areas in the cell phones repair service industry.

Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category (startups cell phones repair businesses in the United States) in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and achieve all our business aims and objectives.

9. SALES AND MARKETING STRATEGY

• Sources of Income

When the issue of funding comes to mind, pone of the things that accompanies that thought is where to get the startup funds from.

Ariel Cell Phones Repair Shop, LLC is established with the aim of maximizing profits in the cell phone repair services industry and we are going to go all the way to ensure that we do all it takes to meet and surpass the expectations of all our clients. Ariel Cell Phones Repair Shop, LLC will generate income by offering the following cell phones repair related services;

10. Sales Forecast

One thing is certain, there would always be cell phones, smart phones and tablets owners who would need the services of cell phones repair companies whenever their devices get damaged or stop working.

We are well positioned to take on the available market in cell phone repair services industry and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six month of operations and grow our cell phones repair company to enviable heights.

We have been able to critically examine the cell phones repair market and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projection is based on information gathered on the field and some assumptions that are peculiar to similar startups in Los Angeles – California.

Below is the sales projection for Ariel Cell Phones Repair Shop, LLC, it is based on the location of our business and of course the wide range of our services and target market;

• First Year-: $150,000
• Second Year-: $250,000
• Third Year-: $500,000

N.B : This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same cell phone repair services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

• Marketing Strategy and Sales Strategy

We are not going to take lightly advertisement. This is because we are mindful of the fact that there is stiffer competition in the cell phones repair services industry, hence we have been able to hire some of the best marketing experts to handle our sales and marketing.

Our sales and marketing team will be recruited based on their vast experience in the cell phones repair services industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall business goal of Ariel Cell Phones Repair Shop, LLC.

Our corporate goal is to grow Ariel Cell Phones Repair Shop, LLC to become one of the top 10 cell phones repair services brands in the United States of America which is why we have mapped out strategy that will help us take advantage of the available market and grow to become a major force to reckon with not only in Los Angeles – California but also in other cities in the United States of America where we intend opening our outlets.

Ariel Cell Phones Repair Shop, LLC is set to make use of the following marketing and sales strategies to attract clients;

• Introduce our cell phones repair company by sending introductory letters alongside our brochure to individuals, corporate organizations and key stake holders.
• Advertise our business in relevant business magazines, newspapers, TV stations, and radio station.
• List our business on yellow pages ads (local directories)
• Attend relevant international and local expos, seminars, and business fairs et al
• Create different packages for different category of clients in order to work with their budgets and still deliver excellent services
• Leverage on the internet to promote our business
• Engage direct marketing approach
• Encourage word of mouth marketing from loyal and satisfied clients

11. Publicity and Advertising Strategy

We have been able to work with our brand and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market.

We are set to become the number one choice for both corporate clients and individual clients in the whole of Los Angeles and beyond which is why we have made provisions for effective publicity and advertisement of our cell phones repair and maintenance company. Below are the platforms we intend to leverage on to promote and advertise Ariel Cell Phones Repair Shop, LLC;

• Place adverts on both print (newspapers and magazines) and electronic media platforms
• Sponsor relevant community based events / programs
• Leverage on the internet and social media platforms like; Instagram, Facebook , twitter, YouTube, Google + et al to promote our services
• Install our Bill Boards on strategic locations all around Los Angeles – California
• Engage in road show from time to time in targeted neighborhoods
• Distribute our fliers and handbills in target areas
• Contact corporate organizations by calling them up and informing them of Ariel Cell Phones Repair Shop, LLC and the services we offer
• List our cell phones repair and maintenance company in local directories / yellow pages
• Advertise our cell phones repair and Maintenance Company in our official website and employ strategies that will help us pull traffic to the site.
• Ensure that all our staff members wear our branded shirts and all our vehicles are well branded with our company logo et al.

12. Our Pricing Strategy

At Ariel Cell Phones Repair Shop, LLC we will keep the prices of our services below the average market rate for all of our customers by keeping our overhead low and by collecting payment in advance especially from corporate organizations who would hire our services. In addition, we will also offer special discounted rates to all our customers at regular intervals.

We are aware that there are some one – off jobs from corporate organizations or government contracts like cell phones, smart phones and tablets supply, repair and maintenance which are always lucrative, we will ensure that we abide by the pricing model that is expected from contractors or organizations that bid for such contracts.

• Payment Options

We want to give pour clients an all-round experience, where we wouldn’t be found wanting for any reason. At Ariel Cell Phones Repair Shop, LLC, our payment policy will be all inclusive because we are quite aware that different people prefer different payment options as it suits them. Here are the payment options that we will make available to our clients;

• Payment by via bank transfer
• Payment via online bank transfer
• Payment via check
• Payment via bank draft
• Payment via mobile money
• Payment with cash

In view of the above, we have chosen banking platforms that will help us achieve our plans with little or no itches.

13. Startup Expenditure (Budget)

In setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting a place, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.

This means that the start-up can either be low or high depending on your goals, vision and aspirations for your business. Also we plan to work hard so that we can give our clients the best low prices ever. The tools and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked.

As for the detailed cost analysis for starting a standard cell phones repair and maintenance company; it might differ in other countries due to the value of their money. However, this is what it would cost us to setup Ariel Cell Phones Repair Shop, LLC in the United of America;

• Business incorporating fees in the United States of America will cost – $750.
• The budget for Liability insurance, permits and license will cost – $3,500
• Acquiring an office space or warehouse that will accommodate the number of employees for at least 6 months (Re – Construction of the facility inclusive) will cost – $100,000.
• The amount required to purchase the needed software apps, tool box and repair equipment for cell phones and other mobile communications device – $15,000
• Equipping the office (computers, printers, projectors, markers, servers / internet facility, furniture, telephones, filing cabinets, and electronics) will cost – $10,000
• Amount required to purchase the needed software applications – $ 3,500
• Launching an official Website will cost – $500
• Amount need to pay bills and staff members for at least 2 to 3 months – $70,000
• Additional Expenditure such as Business cards, Signage, Adverts and Promotions will cost – $5,000

Going by the report from the market research and feasibility studies conducted, we will need about two hundred and fifty thousand (250,000) U.S. dollars to successfully set – up a large scale and standard cell phone repair and maintenance company in the United States of America.

Generating Funding / Startup Capital for Ariel Cell Phones Repair Shop, LLC

Ariel Cell Phones Repair Shop, LLC is a business that will be owned and managed by Engr. Donald Trump and his friend and business partner for many years Kelvin Lindsay. They are the sole financial of the business which is why they decided to restrict the sourcing of the start – up capital for the business to just three major sources.

These are the areas we intend generating our start – up capital;

• Generate part of the start – up capital from personal savings and sale of his stocks
• Generate part of the start – up capital from friends and other extended family members
• Generate a larger chunk of the startup capital from the bank (loan facility).

N.B: We have been able to generate about $100,000 (Personal savings $70,000 and soft loan from family members $30,000) and we are at the final stages of obtaining a loan facility of $150,000 from our bank. All the papers and document has been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.

14. Sustainability and Expansion Strategy

The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.

One of our major goals of starting Ariel Cell Phones Repair Shop, LLC is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to offer our cell phone repair and maintenance services a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.

Ariel Cell Phones Repair Shop, LLC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare is well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List / Milestone

• Business Name Availability Check:>Completed
• Business Incorporation: Completed
• Opening of Corporate Bank Accounts various banks in the United States: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Securing a standard office facility for our workshop: Completed
• Application for business license and permit: Completed
• Purchase of All form of Insurance for the Business: Completed
• Conducting Feasibility Studies: Completed
• Generating part of the start – up capital from the founders: Completed
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents: In Progress
• Design of Logo for the business: Completed
• Secure trademark for our products: In Progress
• Graphic Designs and Printing of Packaging Marketing / Promotional Materials: Completed
• Recruitment of employees: In Progress
• Purchase of the needed mobile software apps, tool box and other repair equipment
• Purchase of the Needed furniture, office equipment, software applications, electronic appliances and facility facelift: In Progress
• Creating Official Website for the business: In Progress
• Creating Awareness for the business: In Progress
• Health and Safety and Fire Safety Arrangement: In Progress
• Establishing business relationship with vendors and key players in various industries: In Progress

Cell Phone Repair Business Plan Template

Written by Dave Lavinsky

Cell Phone Repair Business Plan

Over the past 20+ years, we have helped over 1,000 entrepreneurs and business owners create business plans to start and grow their cell phone repair businesses. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a cell phone repair business plan template step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is a Cell Phone Repair Business Plan?

A business plan provides a snapshot of your cell phone repair business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for a Cell Phone Repair Business

If you’re looking to start a cell phone repair business, or grow your existing cell phone repair business, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your cell phone repair business in order to improve your chances of success. Your cell phone repair business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Cell Phone Repair Businesses

With regards to funding, the main sources of funding for a cell phone repair business are personal savings, credit cards, bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for cell phone repair businesses.

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How To Write a Business Plan For a Cell Phone Repair Business

If you want to start a cell phone repair business or expand your current one, you need a business plan. Below are links to each section of your cell phone repair business plan template:

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of cell phone repair business you are operating and the status. For example, are you a startup, do you have a cell phone repair business that you would like to grow, or are you operating cell phone repair businesses in multiple markets?

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the cell phone repair industry. Discuss the type of cell phone repair business you are operating. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.  

Company Analysis

In your company analysis, you will detail the type of cell phone repair business you are operating.

For example, you might operate one of the following types of cell phone repair businesses:

• Mail-In Cell Phone Repair Service: this type of cell phone repair business allows people to mail their phones in to be repaired, and then mails them back once they are fixed.
• Brick-and-Mortar Phone Repair Service: this type of cell phone repair business occupies its own retail location where customers can bring their broken cell phones in person and pick them up in person as well.
• White Label Cell Phone Repair: this type of business provides cell phone repair services to companies that want to provide phone repair services to their customers under their own business name.

In addition to explaining the type of cell phone repair business you will operate, the Company Analysis section of your business plan needs to provide background on the business.

Include answers to question such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of customers served, number of positive reviews, total number of phones fixed, etc.
• Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry analysis, you need to provide an overview of the cell phone repair industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the cell phone repair industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your strategy, particularly if your research identifies market trends.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your cell phone repair business plan:

• How big is the cell phone repair industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential market for your cell phone repair business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your cell phone repair business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: electronics stores, digital native cell phone users and older cell phone users.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of cell phone repair business you operate. Clearly, digital natives would respond to different marketing promotions than older cell phone users, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations (if applicable) and income levels of the customers you seek to serve. Because many cell phone repair businesses serve customers living in their same city or town, this type of demographic information is easy to find on government websites.

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other cell phone repair businesses.

Indirect competitors are other options that customers have to purchase from that aren’t direct competitors. This includes cell phone insurance vendors, cell phone retail stores, cell phone manufacturers, and electronics stores. You need to mention such competition as well.

With regards to direct competition, you want to describe the other cell phone repair businesses with which you compete. Most likely, your direct competitors will be cell phone repair businesses located very close to your location.

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

• What types of customers do they serve?
• What types of cell phones do they repair?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide better repair services?
• Will you provide services that your competitors don’t offer?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a cell phone repair business plan, your marketing plan should include the following:

Product : In the product section, you should reiterate the type of cell phone repair company that you documented in your Company Analysis. Then, detail the specific products you will be offering. For example, in addition to cell phone repair, will you provide tablet repair or any other services?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the services you offer and their prices.

Place : Place refers to the location of your cell phone repair company. Document your location and mention how the location will impact your success. For example, is your cell phone repair business located in a busy retail district, shopping plaza, mall, etc. Discuss how your location might be the ideal location for your customers.

Promotions : The final part of your cell phone repair marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

• Advertising in local papers and magazines
• Reaching out to local websites
• Social media marketing
• Local radio advertising

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your cell phone repair business, including repairing phones, speaking with customers, point-of-sale service, and marketing.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to repair your 1,000th phone, or when you hope to reach $X in revenue. It could also be when you expect to expand your cell phone repair business to a new city.  

Management Team

To demonstrate your cell phone repair business’ ability to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally you and/or your team members have direct experience in managing cell phone repair businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing cell phone repair businesses or successfully running small businesses.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

Income Statement : an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you repair 100 phones per month or per quarter? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets : Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your cell phone repair business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a cell phone repair business:

• Location build-out including design fees, construction, etc.
• Cost of equipment and supplies
• Payroll or salaries paid to staff
• Business insurance
• Taxes and permits
• Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your office location lease or descriptions of phone repairs you are working on.  

Putting together a business plan for your cell phone repair is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the cell phone repair industry, your competition, and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful cell phone repair business.  

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Other Helpful Business Plan Articles & Templates

Sample Cell Phone Repair Shop Business Plan Template

Cell phone repair company business plan.

Whatever the case, a cell phone repair business comes to the aid of phone users whose phones have developed faults and need repairs. It is already assumed that the business owner must have been adequately trained in this field of business (phone repairs).

Daily, there are tons of new phones rolling out of production lines across the world, waiting to be distributed worldwide. With this comes the need for maintenance and repair.

SEE: HOW TO START A PHONE COMPANY

Repairs need to be carried out  on phones due to either prolonged usage which results in some parts of the phone becoming old and needing replacement or servicing, or faults from the source of manufacture, resulting in the phone either being shipped back to the manufacturer (covered by the warranty agreement) or being fixed by a local phone technician.

Which Type of Business Plan Template; Franchise or Starting From Scratch?

This is essential in any worth cell phone repair business. The entrepreneur has to decide whether to buy into an available cell phone repair franchise or to start from scratch. Making your mind on what option to choose brings clarity to the purpose.

• Start With a Business Plan Template Plan

This is very crucial to any meaningful business venture. No matter the size of the business, a business plan is a highly required document for business survival and growth. This document will help in measuring business growth and progress achieved.

It can be used to reveal if a business concern has reached its target or not. Because of the importance of this document, when applying for loans, it is a major requirement. It is required because the lender wants to see if the business you intend venturing into stands a chance of survival and profitability.

The business plan reveals all of this, as it shows if an investor knows what he/she is doing. It consists of a marketing plan, a business plan, and the financial projections section which is most crucial to revealing if a business has a future or not.

• Get an Operating License

This is a requirement for operation associated with all cell phone repair businesses. Before owning a cell phone repair business, it is recommended that the technician(s) is/are certified by the relevant regulatory body vested by law to regulate the activities of the cell phone repair business.

This is mostly in place to protect the interest of the clients and also the interests of the business. Once this requirement is met, then the other procedures are carried out, eventually leading to the launch of the cell phone repair business.

• Get All Necessary Equipment Ready

By wanting to start up a cell phone repair business, this is a necessary step in the commencement of business operations. Without the tools required for repairs, it is impossible to start anything tangible.

Among the tools needed are the digitizer separator, an anti-static brush, suction cup, heat gun, universal smartphone tool kit among other equipment which can be found on eBay.com Hence, adequate preparations must have been made in purchasing the tools and equipment needed, including the office furniture and renting the shop from where the business would be located.

• Following Your Business Plan Template Plan

This is necessary if you are to realize meaningful growth in your cell phone repair business. Every aspect of the business as laid down in the business plan must be followed or implemented carefully.

This is especially true of the marketing, operational and management sections as they are the first areas that will need to be gotten right. All the contents of your business plan should be binding on your business and followed with all vigor and diligence.

• Get the Services of an Accountant

This is very necessary as the accountant helps in tracking the cash flow in and out of the business and balancing the same to ensure that the business is not losing out through unnecessary expenditures helping to block harmful leakages.

Through the services rendered by the accountant, the entrepreneur can have a wholesome look of the business operations to know if things are going right or wrong and to effect necessary changes in grey areas requiring urgent attention.

• Location is Key

This is a key requirement for businesses, especially a cell phone repair business. The location of this type of business can be the difference between profits and losses.

For a cell phone repair business, it should be located in areas with a lot of foot traffic such as in shopping malls or within the central business districts to benefit from the opportunities inherent in the population.

• What is your Niche?

This is necessary to guard against the tendency for disorganization. Knowing your niche or your particular area of specialization in the cell phone repair business industry helps in giving a clearer vision and goal to the business.

There are various products or brands (such as Apple phone products, Samsung, Xiaomi amongst many others) with an attendant variety in phone repair businesses than specialize in particular brands. However, some repair all phone brand types, but whatever the case, you have to know what works for you and stick by it.

• Your First Clients

These are most likely to be one’s associates, friends, family, and close relatives. These set of people will help in advertising or building your client base through word of mouth marketing until the business begins to have other loyal clientele that will only stick around if the cell phone repair services rendered to them are satisfactory.

CELL PHONE REPAIR BUSINESS PLAN EXAMPLE

Here is how to start a cell phone repair shop.

This article offers tips for people that are interested in starting up a cell phone repair company. It contains the needed information that is needed to write a simple and detailed business plan for a cell phone repair company.

Below is a cell phone repair company business plan

Business Name: Blue Skye Cell Phone Repair Company

Executive Summary

Our Products and Services

Vision Statement

Mission Statement

Business Structure

Market Analysis

• Sales and Marketing Strategy

Financial Plan

Competitive Advantage

Blue Skye phone repair company is a licensed phone repair company that offers all manner of cell phone repair services like fixing cell phones, fixing tablets, fixing smartphones, fixing tablets, battery replacement, screen repairs, and other phone associated issues. We own a facility in the heart of Detroit and have the aim of becoming one of the most successful phone repair companies in Detroit of all time.

Blue Skye phone Repair Company is owned by a James Blacky, a former engineer at Apple. Funding this business is not going to be much of an issue because James already has savings. In addition to his savings, James is looking to get loans from family, friends and also from the bank.

Blue Skye cellphone Repair Company is interested in making available cell phone repair services very affordable and available to residents of Detroit and other parts of the United States. From the heart of Detroit, we will offer quality cell phone repair services to both residents of Detroit and people living in other parts of the United States.

Our vision statement is to build a trustworthy tech repair company that can always be relied on to provide the needed cell phone repair services, anytime, any day.

Our mission is to create a cell phone repair firm that will be renowned for quality as well as reliability. We at Blue Skye Cell Phone Repair Company are not just interested in making profits, we also have the interest of our numerous clients at heart.

At blue Skye cell phone Repair Company, we are aware of recent trends in the cell repair industry. We aim to become and stay relevant by employing the best and just the best. That’s not all we have in mind to do, we will also ensure that those we hire to work with us are hired strictly on merit and for what they can offer.

As a result of the rapid increase in demand and the use of mobile phones in today’s world, there has been an increase in job opportunities for individuals with the skills for fixing cell phones. This need for cell phone repairers has been boosted by the availability of very sensitive and fragile phones

Target Market

After carrying out our research, we have come to discover that getting our potential clients to patronize us will be very easy with the right communication skills.

Our target market includes individuals from all walks of life. Some of them include smartphone owners in our catchment area, tablet owners in our environment, cell phone owners in our environment, and finally, organizations that employ the use of smartphones and cell phones in the day to day running of their businesses.

Sales and Marketing Strategies

We have carefully devised some strategies that will help us make good and quick sales in this business. Some of them include

• Top-notch customer service
• A reduced price
• Adverts in Newspapers

Source of Startup Capital

To get this business started, we will need at least $50,000. This money will be used in getting an office space, not forgetting the materials needed to run this company and also to sponsor adverts. At the moment, we have been able to raise 35,000 from personal savings, from gifts and loans from family and friends. The remaining amounts that are needed to start this business will be sourced from the bank.

It takes more than top-level IT skills to make it in the business of cell phone repairs. One vital ingredient that is needed to survive in this business and that should not be swept under the carpet is networking. The right network of professionals determines who gets what contract to repair, maintain and supply cell phones.

We aim at competing favorably in this business by being able to meet strict deadlines and work closely with our team of engineers

This is a business plan for Blue Skye Cell Phone Repair Company. It is a firm owned by James Blacky and will meet the cell phone needs of the residents of Detroit.

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Cell Phone Repair Business

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The Ultimate Guide to Starting a Phone Repair Business

Written by: Carolyn Young

Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.

Edited by: David Lepeska

David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.

Published on April 18, 2022

Investment range

$2,450 - $6,700

Revenue potential

$58,000 - $117,000 p.a.

Time to build

1 – 6 months

Profit potential

$53,000 - $105,000 p.a.

Industry trend

Here are the most important things to consider when starting your cell phone repair business:

• Location — Strategically choose a location with high foot traffic, such as near shopping centers, universities, or busy streets. Consider the convenience of offering on-site repair services.
• Tools and equipment — You will need many tools, from basic screwdrivers, pliers, and tweezers to more specialized tools such as OCA laminating machines, UV lamps, and diagnostic software.
• Specialization — To stand out more and cater to a specific audience, you can choose a specialization, such as a brand-specific business (Apple or Samsung), a service-specific business (screen replacement, battery replacement, or water damage repairs), or even advanced repairs (motherboard repairs, data recovery, or unlocking services).
• Register your business — A limited liability company (LLC) is the best legal structure for new businesses because it is fast and simple. Form your business immediately using ZenBusiness LLC formation service or hire one of the best LLC services on the market.
• Legal business aspects — Register for taxes, open a business bank account, and get an EIN .
• Online presence — Take your business online and build a high-quality website that features your offer and services. Also, get listed on Google Business, Yelp, and local directories and encourage your customers to leave positive reviews.

Interactive Checklist at your fingertips—begin your cell phone repair business today!

You May Also Wonder:

Is a cell phone repair business profitable?

A cell phone repair business can be very profitable since the demand for your services will be high. You just need the proper training so that you can do quality work that will bring in business.

What are the most difficult phones to repair?

The Samsung Galaxy S22 is one of the most difficult. The Microsoft Surface Duo, and the Samsung Galaxy Note 20 Ultra also make the list.

What are the most popular iPhone repairs?

The most common iPhone repairs include cracked backs and screens, water damage, battery issues, and faulty charging ports.

What is the most expensive thing to repair in an iPhone?

Replacing a cracked back is the most expensive iPhone repair. It can cost $400 to $500 or more depending on the model.

Can you start phone repair business on the side?

A cell phone repair business would be a great side hustle. You’d just set appointments for dropoffs and pickups when you’re available, and do the repairs in your spare time. 

Step 1: Decide if the Business Is Right for You

Pros and cons.

Starting a cell phone repair business has pros and cons to consider before deciding if it’s right for you. 

• Good money — Profit margins for phone repair are high
• Flexibility — Run a mobile phone repair business from home
• Large market — With so many phones in use, demand is high
• Crowded market — Many large companies offer cell phone repair
• Skills needed — Necessary to be a tech pro

Cell Phone Repair Industry Trends

Industry size and growth.

• Industry size and past growth — The US cell phone repair industry was worth about $4 billion in 2023 after a slight decline in the previous five years.
• Growth forecast — The US cell phone repair industry is projected to continue declining over the next five years. 
• Number of businesses — In 2023, 6,497 cell phone repair businesses were operating in the US. 
• Number of people employed — In 2023, the US cell phone repair industry employed 28,014 people.(( https://www.ibisworld.com/united-states/market-research-reports/cell-phone-repair-industry/ )) 

Trends and Challenges

• Used iPhones, even if they have been repaired, can sell for six times the price of other brands. It’s estimated that about 30% of iPhones suffer damage in the course of any given year, and those phones are worth repairing due to their value. 
• Ironically, as technology improves, smartphones are becoming more delicate, increasing the need for repairs.
• Evolving technology means that phone repair companies need to continuously educate employees about new models.
• Because of the large investment some people make in their phones, more people are buying insurance coverage from their service providers. Those companies usually replace the phone rather than pay for repairs.

Demand Hotspots

• Most popular states — The most popular states for cell phone technicians are Alaska, Connecticut, and Colorado.
• Least popular states — The least popular states for cell phone technicians are Minnesota, Arkansas, and Texas.(( https://www.zippia.com/cell-phone-technician-jobs/best-states/ ))

What Kind of People Work in Cell Phone Repair?

• Gender — 29% of cell phone technicians are female, while 71% are male.
• Average level of education — The average cell phone technician is high school educated.
• Average age — The average cell phone technician in the US is 45.3 years old.(( https://www.zippia.com/cell-phone-technician-jobs/demographics/ ))

How Much Does It Cost to Start a Cell Phone Repair Business?

Startup costs for a mobile phone repair business range from $2,400 to $6,700. Costs include a website, tools, and phone repair training. This assumes that you will run your business from home as a mobile repair outfit. 

You can take cell phone repair training and get a certification through the Cellular Repair School . Courses cost about $400 each and the program can be done online in four months. 

You’ll need a handful of items to successfully launch your cell phone repair business, including: 

• Nylon spudger
• Fine-tipped curved tweezers
• Screwdriver kit
• Plastic triangle opening tool
• Precision knife set
• Anti-static brush
• Suction cup pliers
• Magnetic mat
• Magnifying glass
• Soldering iron

How Much Can You Earn From a Cell Phone Repair Business?

Cell phone repairs generally range from $50 to $100 for an average of $75. Your profit margin should be about 90%. 

In your first year or two, you could work from home as a mobile phone repair service and do three repairs a day, five days a week, bringing in about $58,000 in annual revenue. This would mean nearly $53,000 in profit, assuming a 90% margin. As your business gains traction, you could do six repairs a day, five days a week. With an annual revenue of $117,000, you’d make a fantastic profit of more than $105,000.

What Barriers to Entry Are There?

There are a few barriers to entry for a cell phone repair business. Your biggest challenges will be:

• The training required if you’re not already a cell phone technician
• Competing with large companies that offer phone repair

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Step 2: hone your idea.

Now that you know what’s involved in starting a cell phone repair business, it’s a good idea to hone your concept in preparation to enter a competitive market. 

Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important because it can help you understand your customers better, who your competitors are, and your business landscape.

Why? Identify an Opportunity

Research smartphone repair businesses in your area to examine their services, price points, and customer reviews. You’re looking for a market gap to fill. For instance, maybe the local market is missing a mobile repair business or a low-end phone repair service. 

You might consider targeting a niche market by specializing in a certain aspect of your industry, such as Apple iPhone repairs, or electronic device repairs.

This could jumpstart your word-of-mouth marketing and attract clients right away. 

What? Determine the Types of Phone Parts You’ll Repair

Your services will depend on your training and skills. You can do smartphone repair, electronic device repair, cracked screen repair, or even computer repair. 

How Much Should You Charge for Cell Phone Repair?

Your prices will depend on the extent of the repairs. Most cell phone repairs cost between $50 and $100. You should aim for a profit margin of about 90%. 

Once you know your costs, you can use our profit margin calculator to determine your markup and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.

Who? Identify Your Target Market

Your target market is extremely broad since nearly everyone has a cell phone. You should spread out your marketing to include sites like TikTok, Instagram, Facebook, and LinkedIn. 

Where? Choose Your Business Premises

In the early stages, you may want to run your business from home to keep costs low. But as your business grows, you’ll likely need to hire workers for various roles and might want to rent out a space for a phone repair store. You can find commercial space to rent in your area on sites such as Craigslist , Crexi , and Instant Offices .

When choosing a commercial space, you may want to follow these rules of thumb:

• Central location accessible via public transport
• Ventilated and spacious, with good natural light
• Flexible lease that can be extended as your business grows
• Ready-to-use space with no major renovations or repairs needed

Step 3: Brainstorm a Cell Phone Repair Business Name

Here are some ideas for brainstorming your business name:

• Short, unique, and catchy names tend to stand out
• Names that are easy to say and spell tend to do better 
• Name should be relevant to your product or service offerings
• Ask around — family, friends, colleagues, social media — for suggestions
• Including keywords like “smartphone repair” or “mobile phone repair” boosts SEO
• Name should allow for expansion, for example, “Master Tech Phone Repair” over “iPhone Repair Specialists”
• A location-based name can help establish a strong connection with your local community and help with the SEO, but might hinder future expansion

Discover over 240 unique cell phone repair business name ideas here . If you want your business name to include specific keywords, you can also use our cell phone repair business name generator. Just type in a few keywords, hit Generate, and you’ll have dozens of suggestions at your fingertips.

Once you’ve got a list of potential names, visit the US Patent and Trademark Office website to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these. 

Find a Domain

Powered by GoDaddy.com

Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that sets your business apart. Once you pick your company name and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.

Step 4: Create a Cell Phone Repair Business Plan

Here are the key components of a business plan:

• Executive summary — A brief overview of your cell phone repair business, summarizing its mission, goals, and key elements
• Business overview — Detailed information about the cell phone repair industry, target market, and the specific niche your business will serve
• Product and services — Outline of the cell phone repair services offered, including types of repairs, warranties, and any additional products or services
• Market analysis — Examination of the cell phone repair market, identifying trends, potential customer base, and demand for your services
• Competitive analysis — Evaluation of competitors in the cell phone repair industry, highlighting strengths, weaknesses, and strategies to gain a competitive edge
• Sales and marketing — Strategies for promoting and selling your cell phone repair services, encompassing online and offline marketing, pricing, and sales channels
• Management team — Introduction of key individuals overseeing the cell phone repair business, emphasizing their relevant skills and experience
• Operations plan — Details on the day-to-day operations of the cell phone repair business, covering location, equipment, suppliers, and workflow
• Financial plan — Financial projections, including startup costs, revenue forecasts, and break-even analysis for the cell phone repair business
• Appendix — Supplementary information, such as detailed market research, resumes of key team members, and any other supporting documents for the cell phone repair business plan

If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.

Step 5: Register Your Business

Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business! 

Choose Where to Register Your Company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you’re planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to cell phone repair businesses. 

If you’re willing to move, you could really maximize your business! Keep in mind that it’s relatively easy to transfer your business to another state. 

Choose Your Business Structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your cell phone repair business will shape your taxes, personal liability, and business registration requirements, so choose wisely. 

Here are the main options:

• Sole proprietorship — The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
• General partnership — Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
• Limited Liability Company (LLC) — Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
• C Corporation — Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
• S Corporation — This refers to the tax classification of the business but is not a business entity. Either a corporation or an LLC can elect to be an S Corp for tax status. Here, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization , and answer any questions you might have.

Form Your LLC

Choose Your State

We recommend ZenBusiness as the Best LLC Service for 2024

Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number or EIN. You can file for your EIN online or by mail/fax. Visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN. 

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

The IRS website also offers a tax-payers checklist , and taxes can be filed online.

It is important to consult an accountant or other professional to help you with your taxes to ensure you’re completing them correctly.

Step 7: Fund Your Business

Securing financing is your next step, and there are plenty of ways to raise capital:

• Bank loans — This is the most common method, but getting approved requires a rock-solid business plan and a strong credit history.
• SBA-guaranteed loans — The Small Business Administration can act as a guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan .
• Government grants — A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
• Friends and family — Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
• Crowdfunding — Websites like Kickstarter and Indiegogo offer increasingly popular low-risk options in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
• Personal — Self-fund your business via your savings or the sale of property or other assets.

Bank and SBA loans are probably the best options, other than friends and family, for funding a cell phone repair business. 

Step 8: Apply for Licenses and Permits

Starting a cell phone repair business requires obtaining a number of licenses and permits from local, state, and federal governments.

Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration ( OSHA ), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits. 

You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more. 

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package . They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money, you’ll need a place to keep it, and that requires opening a bank account .

Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your cell phone repair business as a sole proprietorship. Opening a business bank account is quite simple and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account.

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked, yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

• General liability — The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
• Business property — Provides coverage for your equipment and supplies.
• Equipment breakdown insurance — Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
• Worker’s compensation — Provides compensation to employees injured on the job.
• Property — Covers your physical space, whether it is a cart, storefront, or office.
• Commercial auto — Protection for your company-owned vehicle.
• Professional liability — Protects against claims from clients who say they suffered a loss due to an error or omission in your work.
• Business owner’s policy (BOP) — This is an insurance plan that acts as an all-in-one insurance policy, a combination of the above insurance types.

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business. 

Essential Software and Tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks. 

You may want to use industry-specific software, such as Fixably , RepairShopr , or RepairDesk , to manage your bookings, schedule, workflows, invoicing, and payments. 

• Popular web-based accounting programs for smaller businesses include Quickbooks , FreshBooks , and Xero . 
• If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences of filing incorrect tax documents can be harsh, so accuracy is crucial. 

Develop Your Website

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.

You can create your own website using website builders . This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech savvy, you can hire a web designer or developer to create a custom website for your business.

However, people are unlikely to find your website unless you follow Search Engine Optimization ( SEO ) practices. These are steps that help pages rank higher in the results of top search engines like Google. 

Here are some powerful marketing strategies for your future business:

• Local SEO — Optimize your website with details of your repair services and customer testimonials to improve visibility in local search results. Regularly update your Google My Business and Yelp profiles to strengthen your local search presence.
• Professional branding — Develop branding that emphasizes efficiency, expertise, and reliability, essential in the tech repair industry.
• Direct outreach — Forge partnerships with local businesses and educational institutions to offer specialized repair services and establish long-term contracts.
• Social media engagement — Utilize platforms like Facebook and Instagram to showcase before-and-after repair photos and share maintenance tips.
• Tech tips blog — Regularly publish helpful articles about common device issues and the latest mobile technology trends.
• Video tutorials — Produce concise video content that provides DIY repair tips and advice on phone care.
• Repair workshops — Conduct educational workshops in local community centers to teach basic device maintenance and repair skills.
• Community event participation — Engage with the local community at events and fairs, providing on-site consultations and services.
• Targeted local advertising — Place ads on local online platforms and community boards to attract nearby customers.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that set it apart from the competition. Today’s customers are inundated with buying options, so you’ll have a real advantage if they can quickly grasp how your cell phone repair business meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire. 

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your cell phone repair business could be: 

• Mobile smartphone repair — we make house calls!
• Apple iPhone repair without the Apple prices
• Cracked screen? Fixed in one hour, guaranteed

You may not like to network or use personal connections for business gain, but your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a cell phone repair business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working with smartphones for years and can offer invaluable insight and industry connections. 

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in phone repair. You’ll probably generate new customers or find companies with which you could establish a partnership. 

Step 12: Build Your Team

If you’re starting out small from a home office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for a cell phone repair business include:

• Repair technicians — assisting with cell phone repairs
• General manager — scheduling, accounting
• Marketing lead — SEO strategies, social media

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need. 

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed , Glassdoor , or ZipRecruiter . Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent. 

Step 13: Run a Cell Phone Repair Business — Start Making Money!

Cell phone repair is not an industry that will go away anytime soon. Almost every American has at least one cell phone, so any phone repair business should have no shortage of customers. If you’re not already a repair technician, you can learn to be one quickly and start your own repair business for a very small investment. You can even run your business from home as a mobile repair service and make a good living while providing a valuable service. 

You’ve had your business education now, so it’s time to get your successful cell phone repair business going!

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• Decide if the Business Is Right for You
• Hone Your Idea
• Brainstorm a Cell Phone Repair Business Name
• Create a Cell Phone Repair Business Plan
• Register Your Business
• Register for Taxes
• Fund Your Business
• Apply for Licenses and Permits
• Open a Business Bank Account
• Get Business Insurance
• Prepare to Launch
• Build Your Team
• Run a Cell Phone Repair Business — Start Making Money!

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How To Get Started With a Cell Phone Repair Business: 7 Basics

May 30, 2024

The majority of Americans own a smartphone — and rely on them for work, shopping, communication, and more. So when their smartphone stops working, people are eager to get it repaired. That’s where your cell phone repair business can shine.

If you’re knowledgeable and great at repairing cell phones, you might have considered starting a cell phone repair business . But where do you start? How profitable is it? How do you make it a long-term success?

Don’t worry — we have you covered. With an overview of the basics, you’ll have the confidence and information you need to get your repair business off the ground.

What Skills Do I Need To Start a Cell Phone Repair Store?

The great thing about tech repair is you don’t have to go to a trade school or get a college degree to get started. Many of the basic skills you can learn online or by taking things apart yourself. 

You probably wouldn’t consider repairing cell phones for a living if you didn’t have a little bit of mechanical knowledge. But there are a few other skills you’ll need to make your business a success.

• Great troubleshooting ability and knowledge of specific phones: It goes without saying that being able to correctly diagnose and fix hardware issues is a repair shop owner’s top skill. Since hardware is updated constantly, you’ll also need to stay on top of the latest models and known issues to stay relevant and earn repeat business.
• Excellent customer service skills: In cell phone repair, you don’t just have to deal with smartphones and tablets, you have to deal with their owners too. Providing great customer service is a must in the tech repair industry and one of the main ways your business will stand out.
• Basic business and marketing knowledge: A smartphone repair business is exactly that: a business . Since you’ll be dealing with high-end electronics, you’ll need to have at least a basic handle on managing expenses, inventory, and marketing to keep everything running smoothly.

Is a Cell Phone Repair Store Profitable?

You have the skills and the entrepreneurial spirit, but is starting a cell phone repair business worth it? 

Well, that depends. The average monthly revenue of cell phone repair businesses varies drastically, from as little as $5000 to up to $50,000. Ultimately, how profitable a repair shop business is depends on various factors, such as:

• How much competition is in your area
• Durability of popular products
• Prices and supply chain status of repair parts
• Whether you offer additional services
• Efficiency of your processes

In short, a repair business can be very profitable if you do your research first and follow best practices.

7 Steps To Starting a Cell Phone Repair Business

The scariest part of starting a business is the unknown. That’s why we’ve put together a helpful list of the basics for starting your own cell phone repair business.

1. Do Some Market Research

There are a lot of repair stores out there, and your first task is to see what’s already in your area. Take a look at your potential competitors’ websites or, better yet, visit them in person. Note down things like:

• What services do they offer?
• What are their prices?
• Do they sell other items?
• Do they specialize in any particular technology?
• What’s the atmosphere of their shop like?
• Do they cater to a particular type of person? 

The goal of market research is to figure out what you can do better and, more importantly, what you can do differently . Making a repair business stand out is about finding a niche. 

If you find that the area you were thinking of operating in is already full of smartphone and electronics repair shops, pivot to look for somewhere with less competition.

2. Create a Business Plan

Once you’ve spent some time researching the competition and defining your niche, the next step is to make a business plan. A business plan is a document that details what your business hopes to achieve and how you’ll do it. 

Not only is a business plan useful for making your dreams a reality, but many banks will require one if you apply for a loan.

A business plan should include: 

• Summary: A 2-3 sentence elevator pitch for your cell phone repair business.
• Company overview: A bird’s eye view of business operations, including the business structure, target market, and your background.
• Services overview: A summary of the types of services you’ll offer along with any products you plan to sell.
• Market research: A section that shows you understand the industry, your target market, and how you plan to differentiate from your competitors.
• Marketing strategy: An explanation of how you’ll bring in new business and retain customers. How will you advertise to customers and what types of media will you use?
• Budget and finances: A list of operating expenses and how much money you’ll need to make to be profitable. Additionally, what kind of startup costs will you have?

Related Read: What a Business Plan for a Cell Phone Store Should Look Like  

ONE LAST THING: Don’t Forget Your Brand!

If you’re starting a cell phone repair business, you already know that there’s a lot of competition. You want to get into this field for a reason, so dig deep and try to come up with a memorable look and feel for your brand.

Naming your store “Tony’s Smartphone Repairs” or “Super Tech Shop” is going to help you stand out about as much as putting a leaf on the forest floor. Try to think of a name that’s catchy and reflects your personality.

3. Invest in Specialty Equipment and Supplies

You may already have some repair tools that you’ve used to do your own repairs over the years. But if you’re planning to run a repair business you need to invest in quality tools built for professionals. 

Do some research and see what tools other professionals are using . Whatever you do, don’t just invest in cheaper tools to keep your costs down. If your equipment breaks down at a busy time you’ll pay for it in the form of angry customers.

You’ll also want to make sure you have parts bins and other storage to stay organized. An organized space will help you make repairs more quickly, and if there’s one thing a cell phone repair customer loves, it’s a speedy repair.

Finally, start to look into part suppliers . Try to determine which suppliers are most reliable, what equipment they stock, and have backups in mind in case there are parts shortages.

4. Choose the Right Location

When you start the business, you could operate out of your home to keep costs down (and if you have a designated spot in your house you can write it off for tax purposes, too). 

But as your business grows, you’ll eventually want a storefront so customers can walk in. Try to find an affordable location near other shopping centers to encourage people to stop by as part of their normal routine.

Of course, you don’t have to be stuck in one location. You might consider operating a mobile repair business so you can go to your customers. This option would have fewer startup costs, but you’d have to invest in a larger fleet of vehicles with more repair technicians to effectively grow the business.

5. Leverage Technology for Smoother Customer Experiences

Customers who need phone repairs aren’t always in the best mood — but efficient and communicative customer service can help ensure they leave happy.

Using software to handle things like inventory management, repair tickets, and payments is key to removing friction points for your customers. Leveraging a cell phone repair store point of sale (POS) system can help streamline your processes, keep you in compliance, and boost customer engagement. 

A few of the top areas where technology can help improve customer service include:

• Repair ticket tracking: Don’t prioritize and track repairs with a spreadsheet or other manual methods. Use ticketing software to keep device and customer information, repair details, necessary parts, and other notes all in one place.  Linking your repair and inventory software will also ensure that you have an accurate view of your remaining parts as repairs come in.
• Inventory management : Repair stores generally need to handle a mix of serialized replacement parts, IMEI numbers, and general SKUs if they sell things like accessories. Top inventory management solutions allow you to track and manage all of your inventory in real time.
• Custom reporting: Custom reports allow you to monitor sales, spot trends, and track all repairs in real time. These data points can be used to optimize your pricing, find inefficiencies, and more. 
• Flexible payment processing: With a flexible payment processor, customers can use their preferred payment method to pay for repairs or put down a deposit.

With fewer staff and resources, industry-specific software will help you stay competitive and drive customers to your shop.

Related Read: Phone Repairing Software: 6 Features To Look For

6. Market Your Business

Even with all your technical know-how and a perfect workflow, no one’s going to be lining up at your door if they don’t know you exist. In marketing, customer engagement refers to the various methods brands use to build relationships with customers.

What does that mean in practice? It means you need to find creative ways to establish yourself as a trustworthy and knowledgeable repair shop. 

However, we understand many repair shop owners are not marketing experts. Here are a few suggestions of ways you can market yourself for free or using your POS system :

• Social Media: Post common issues and solutions on Facebook, TikTok, or Instagram to establish yourself as an expert. You can also pay to advertise to people in your area. Another idea: create tutorial videos on common DIY repairs. No matter how you use social media, make sure to post regularly to get the most from it.
• Website: Having an attractive, easy-to-navigate website is a great way to establish your professionalism without having to say a word. Make sure your website includes pricing for common repairs along with an overview of the process so customers know what to expect.
• Customer Loyalty: Establishing a customer rewards program (especially if you also sell accessories or other items) is a great way to encourage repeat business with customers. 
• Discounts: Strategically use discounts to help get people in the door, especially for common repairs like screen or battery repairs.

  Related Read: Crafting a Cell Phone Repair Marketing Strategy: 4 Ideas

7. Grow by Offering Other Services and Products

The number of repairs you do may fluctuate over time, especially as smartphones get more durable . Offering additional services and products is a great way to create a more steady revenue stream for your business.

In addition to cell phone repair, you might consider:

• Selling accessories like phone cases and chargers
• Repairing other types of electronics like headphones, speakers, tablets, and smartwatches
• Offering bulk repairs to other businesses
• Selling refurbished and used phones
• Selling training resources or offering training courses on electronics repair

With a robust POS system, you’ll be able to manage the various aspects of your business all in one place, simplifying your day-to-day processes as your business grows.

Start Your Cell Phone Repair Business the Right Way

Ready to finally start your repair business? Make sure you do it on a great foundation.

CellSmart POS is trusted by independent cell phone stores across the US to help increase productivity, customer satisfaction, and revenue. With advanced features that are built specifically for electronics repair, we can help new repair shops manage and grow their business.

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How To Start A Cell Phone Repair Business

• Last Updated: April 3, 2024
• By: StartUp 101

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Do you have a knack for fixing things, and are you always the first of your friends to find out about the latest phone updates and tech? For technology lovers with a talent for fixing phones, opening a cell phone repair business may seem like the perfect venture.

While technical skills are a core requirement for starting a cell phone repair business, remember that it takes more than just that. It’s equally about understanding the dynamics of running a business and keeping abreast with the ever-evolving market trends. This guide serves as your primer into the world of the cell phone repair industry, providing you with an overview, getting started steps, and answers to common queries.

Business Overview

A cell phone repair business primarily revolves around fixing damaged or broken mobile devices. This can range from minor problems like a cracked screen, camera repair, or battery replacement to more complex issues like software glitches or water damage. As a business owner in this space, your role isn’t just limited to fixing devices, but also includes understanding customer needs, managing inventory, sourcing parts, and constantly staying updated with the latest technologies and repair techniques.

Some repair businesses have physical storefronts where customers can bring their damaged phones. At the same time, smaller startups may opt for a mobile repair business model to save on rental or lease fees while also offering the customer the convenience of a traveling repairperson.

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Industry Summary

The cell phone industry has been experiencing steady growth over the last few years, fueled by the increasing reliance on smartphones in our daily lives. As of 2022, there were an estimated 307 million smartphone users in the United States, a figure projected to rise in the coming years. With this steady increase in smartphone usage comes a concurrent increase in the demand for repair services. After all, with high-end smartphones getting more expensive, more people are choosing to repair their existing devices rather than replace them.

According to IBISWorld, revenues in the cell phone repair industry have declined slightly over the last five years at an annual rate of 0.2% to $3.8 billion. There are currently 6,794 businesses operating in this industry, employing over 28,000 people.

A positive point about cell phone repair businesses are they are a relatively recession-proof industry. During economic downturns, people are even more likely to repair rather than replace their phones. This resilience combined with the consistent demand makes the cell phone repair business a viable option for aspiring entrepreneurs.

Industry Trends

Even though smartphone manufacturers are making phones more durable, repairs may decline.

Even though consumers who have a higher disposable income may decide to purchase a new phone rather than replace one. smartphones from iPhone and Samsung cost more than $1,200 new and plenty of consumers are still likely to repair their phones when possible, rather than just replacing them. Also, the increased use of smartphones means that more phone users encounter issues like water damage and cracked screens, requiring a talented repair person’s help. Even as they become more durable, more smartphones will be in the hands of people, so we’ll likely continue to see an increased need for cell phone repair.

Another trend is the growing focus on sustainability. With increasing public awareness about electronic waste, many consumers prefer getting their phones repaired over contributing to e-waste.

Last, with the introduction of 5G, phones are becoming more sophisticated. While this means there is a learning curve for technicians, it also presents an opportunity for businesses that can keep up with these advancements.

Target Market

A cell phone repair business can have a diverse range of target customers given the near-ubiquitous use of smartphones today. However, it’s essential to identify a few key segments for targeted marketing and service development. Here’s a rundown of some potential target markets:

• Smartphone owners : This is the broadest and most obvious target market. These individuals own smartphones of all makes and models and, at some point, might need repair services.
• High-end smartphone owners : This niche includes customers with premium smartphones. They are typically willing to pay a higher price for specialized repair services as their devices are expensive to replace.
• Small businesses : Small businesses that provide smartphones to their employees for work might need regular repair services. A partnership with such companies could provide a steady stream of work.
• Schools and universities : Many educational institutions provide tablets and smartphones for educational purposes. They can be a great source of bulk repair orders.
• Environmentally conscious consumers : These individuals prefer repairing over replacing to minimize electronic waste. Marketing your services as eco-friendly can attract this segment.

Remember, while these are some possible target markets, it’s essential to conduct market research in your specific area to understand the needs and preferences of potential customers. Knowing your target market allows you to align your services, pricing, and marketing strategy more effectively, enabling you to stand out in the competitive cell phone repair market.

Checklist To Start A Cell Phone Repair Business

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If you’re thinking about starting a cell phone repair service, it’s important to do your research first. Here is a checklist to help you get started.

Step 1: Understand the Industry

Starting a cell phone repair business requires a solid understanding of the industry. As a first step, it’s useful to do in-depth market research to grasp the current landscape, competition, trends, and customer needs. This could involve reviewing industry reports, visiting competitor locations, talking to potential customers, and even working in a repair shop for some time to gain hands-on experience.

Online platforms like Udemy and iFixit provide repair guides for a wide range of devices. Attending trade shows or webinars relevant to the industry can also offer insights into the latest technologies, repair techniques, and business strategies.

To get more in-depth education, consider enrolling in cell phone repair courses. For instance, the Wireless Industry Service Excellence or Association of Device Repair Service Excellence are industry-recognized certification programs covering everything from basic smartphone repairs to advanced troubleshooting.

Additionally, joining industry associations like the Cell Phone Repair Independent Owners Association (CPRIOA) can provide insider access to resources, networking opportunities, and industry news. Connecting with other business owners who have walked this path already can help you avoid common pitfalls and capitalize on opportunities.

In essence, arming yourself with knowledge, getting hands-on experience, earning relevant certifications, and building connections in the industry are all essential steps toward becoming a well-informed cell phone repair business owner. Remember, the journey of starting your own business is one of constant learning, and these steps are just the beginning.

Step 2: Assess Market Demand

Understanding market demand is fundamental to the success of any new business venture, and a cell phone repair business is no exception. Why? Because even with the best skills, a fantastic business plan, and a killer work ethic, if there aren’t enough customers needing your service, your business won’t be sustainable in the long run.

So how does one go about researching this? Here are some cost-effective ways to gauge the potential market for a cell phone repair business:

Online research : Start with a basic Google search to check for existing repair businesses in your desired location. If there are several already, it indicates a demand. But also consider, can the market support another player? Review these businesses’ websites and online presence, customer reviews, pricing, and service offerings.

Survey potential customers : Tools like Google Forms or SurveyMonkey allow you to create free online surveys. You could distribute these in local online community groups or social media platforms asking people about their cell phone repair needs, how often they require these services, and what they look for in a repair service.

Talk to local retailers : Visit local electronics stores or cell phone retail outlets. These places often get inquiries for repair services and can provide valuable insights into the demand and the types of repairs commonly sought.

Demographic data : Check the demographic data for your desired location through the Census Bureau . Areas with a high concentration of young adults or tech-savvy professionals are likely to have a higher demand for cell phone repair services.

Local business networking events : These events can be a treasure trove of insights. You can connect with other entrepreneurs who might have useful advice and insights about local market conditions.

Market research isn’t just a one-off task before starting your business. It should be an ongoing process, helping you stay aware of changes in customer needs, market trends, and competition. This way, you can adapt and evolve your business strategies as needed, ensuring your cell phone repair business remains relevant and sustainable in the long term.

Step 3:  Write a Business Plan

After learning more about the industry and confirming that your area needs a cell phone repair store, the next step should be to write a business plan.

A business plan serves several important functions. While most often thought of as the document needed for funding, perhaps more importantly it’s a strategic roadmap, detailing how you plan to operate, grow, and succeed.

When writing a business plan for a cell phone repair business, here are a few sections that stand out in their importance:

Market analysis : This section is particularly important for potential lenders or investors. It includes your findings from the market research phase, your understanding of customer needs, the competitive landscape, and your strategies to differentiate your business.

Operations plan : This should detail your day-to-day business operations, from sourcing parts and handling repairs, to customer service and bookkeeping. In particular, you should mention your repair process, turnaround time, warranty policies, and any unique operational strategies you’ll be employing.

Marketing strategy : This highlights your plan to stand out in a competitive market and how you will attract and retain customers.

Financial projections : This is where you convince lenders or investors of the feasibility of the business. For a cell phone repair business, you’ll need to factor in the cost of parts, labor, utilities, rent, marketing, and other expenses. Projections should include income statements, balance sheets, and cash flow statements for the first few years.

Related: How to write a business plan

Step 4: Secure Funding

With the completed business and total startup costs calculated, the next step is to make sure you have all of the funding in place. Securing funding can be one of the biggest challenges when starting a small business, but here are some tips to be prepared.

For many entrepreneurs, personal savings are the first source of funding. The obvious advantage here is freedom – without loans, there are no repayments to worry about, no interest accruing, and no one to answer to but yourself. It’s your money, plain and simple. However, relying solely on personal savings can be risky, as unexpected costs could arise, and having a financial cushion can prevent potential difficulties down the line.

Cell phone repair businesses typically have moderate startup costs, including expenditures on a storefront or kiosk (unless you opt for a mobile or home-based business), tools and parts, initial marketing, and possibly some staff. Depending on location and scale, these costs can vary widely, but it’s reasonable to expect to spend at least a few thousand dollars.

If personal savings are insufficient to cover these costs, it’s not uncommon for entrepreneurs to seek external funding. Banks or credit unions are a common option. However, it’s important to note that they usually require borrowers to invest at least 15%-25% of their own funds into the business, have a credit score above 650, and provide sufficient collateral. If they perceive the loan as too risky, they may recommend an SBA loan guarantee , which guarantees the bank will receive a portion of the money back, even if the business is not successful.

If the cost to start your business is low, or the bank won’t lend you money, a microloan might be a viable choice. Microloans are smaller loans, often provided by local economic development organizations and they’re specifically designed for startups or smaller businesses.

Angel investors, local individuals with a high net worth who invest in businesses that spark their interest, could be another potential funding source. But securing such investment isn’t easy as angel investors usually look for high-growth, scalable businesses, so you’ll need to convincingly pitch your cell phone repair business as a promising opportunity.

Whether you’re bootstrapping with your savings or exploring loans and investors, it’s important to think strategically about funding. Always consider the cost versus benefit and remember, every dollar invested wisely is a step towards the successful launch of your cell phone repair shop.

Related:  Finding the money to start a business

Step 5: Choose a Location

Cell phone repair businesses typically follow two models: A physical storefront or a mobile business. The mobile business option may be appealing because of the costs it saves over rent, but remember that this business design will require travel time and create wear and tear on your vehicle. It can also limit your repair capacity.

If you’re leaning towards a storefront, start your search in areas your potential customers frequent. An ideal location is easily accessible and highly visible. Commercial real estate agents can be quite handy here as they know the available properties and zoning restrictions. However, if you’re considering a mobile operation, research local regulations about operating a mobile business, and plan for a reliable, well-equipped vehicle and a robust appointment system. A mobile setup is a good way to test the market and see if there is enough business before investing in a permanent location.

Next, scope out the competition. Spend some time visiting other cell phone repair businesses. See how they have organized their workspace, what kind of foot or vehicle traffic they’re attracting, and what seems to work well for them. This can give you practical insights to inform your own setup.

One thing to always keep in mind: make sure your funding is secure before you sign any contracts related to your business location. Funding arrangements can sometimes take longer than anticipated, or may not come through at all, so it’s safer to have the funds ready to go.

Related:  Choosing a business location

Step 6: Register the Business

Next on our list of steps to start a cell phone repair business is making sure it’s legal to operate. Every state is different, but here’s a general rundown of these requirements:

Business structure : The choice of business structure can significantly affect your business’s taxes, paperwork, and personal liability. The most common types for a cell phone repair business are Sole Proprietorship and LLC (Limited Liability Company).

A sole proprietorship is the simplest structure, which involves less paperwork and lower costs but comes with full personal liability. On the other hand, an LLC offers personal liability protection and potential tax savings.

Related: Comparison of business structures

Business name registration: After registering the business structure, you may need to register your business name. This process will vary depending on what business structure you pick. Sole proprietors and partnerships will often be required to register a “Doing Business As” (DBA), while corporations and LLCs register with the state during the formation process.

Related: Tips and ideas for naming a cell phone repair business

During this time, it’s also a good idea to check if the name you want is available as a web domain, even if you’re not ready to set up a website yet.

Related: Finding a domain name for your business

Obtain business licenses and permits: Depending on your location, there will likely be a variety of general licenses or permits needed before opening. This could include a business license, seller’s permit, and Employer Identification Number (EIN).

Related: What licenses do cell phone repair businesses need ?

Step 7:  Purchase Equipment & Supplies

Once you’ve legally registered your cell phone repair business and secured the necessary funds, the next exciting phase of your entrepreneurial journey is purchasing your equipment and setting up shop.

Whether it’s a physical store needing renovations and branding, or a mobile setup requiring vehicle fit-outs, this phase is about creating a functional and efficient workspace. Remember the specifics of your industry – you’ll need an area for complex repairs, safe storage for parts and devices, and a customer-friendly space for transactions.

A few things to consider in this stage include:

Purchase Equipment There’s a range of tools you’ll need for cell phone repairs – from small hand tools like screwdrivers and tweezers to more specialized equipment such as soldering stations, microscopes, and LCD separators.

Start by making a list of all the equipment you’ll need based on the repairs you plan to offer. There are plenty of pre-made tool kits available that cater specifically to cell phone repair. These can be a cost-effective way to get started, though you’ll likely need to supplement these kits with additional, more specialized equipment.

Where you buy your equipment matters. While online marketplaces like Amazon and eBay can offer competitive prices, don’t overlook specialist retailers that may provide better after-sale support and warranties.

Source Suppliers Your suppliers are critical to your business. They’ll be the ones providing you with the parts you need to carry out repairs.

As a new business, it’s recommended to start building relationships with multiple suppliers. This not only gives you the flexibility to compare costs but also acts as a safeguard should a supplier be unable to meet your demand.

Consider both local and international suppliers. While local suppliers can often provide faster delivery times, international suppliers (particularly those in Asia) often have lower prices. When choosing a supplier, don’t make your decision based on price alone. Consider factors such as delivery times, warranty periods, and the supplier’s reputation.

One last tip: never be shy to negotiate. As a business, you have the power to negotiate pricing, delivery times, and even payment terms. This can go a long way in reducing your costs and improving your bottom line.

In conclusion, proper planning and building relationships with your suppliers can significantly impact your business’s success and profitability. It’s well worth the investment of time and effort.

Step 8: Get your Marketing Ready

You’re now at the stage where you’re ready to shout about your new cell phone repair business to the world. Marketing is all about getting your business noticed, attracting customers, and maintaining their loyalty. Let’s explore some effective strategies, both online and offline, to help get your name out there.

Website and SEO : Establish a professional website that clearly explains your services, pricing, and unique selling points. Optimize your website for search engines (SEO) to increase visibility in organic search results.

Claim Your Google Business Profile : This is an effective tool that helps local businesses be found on Google Search and Maps. It’s free and gives you control over how your business appears on Google. You can list your hours, location, and even respond to customer reviews.

Online directories : Aside from Google, listing your business in other online directories such as Yelp, Yellow Pages, and Bing Places can improve your online visibility. Each listing enhances the likelihood of potential customers discovering your business.

Social media : Utilize platforms like Facebook, Instagram, and Twitter to engage with your audience. Post about promotions, share repair tips, or show ‘behind-the-scenes’ of your shop.

Join your local Chamber of Commerce : This not only helps you network with other local businesses, but many people consider Chamber membership when choosing where to shop.

Flyers and brochures : Distribute flyers or brochures in strategic locations such as community centers, tech stores, coffee shops, etc.

Press release : Write a press release about the opening of your business and distribute it to local newspapers or radio stations.

Community involvement : Sponsor local events or participate in community projects. This boosts your local presence and reputation.

These methods are not an exhaustive list. The key is to try different strategies, monitor their effectiveness, and adjust as needed.

Related:  Low-cost ideas to market a new business

Step 9: Hire & Train Staff

As you get your cell phone repair business up and running, you may find yourself needing to bring on additional help to manage the workload. You’re not just looking for someone who can tinker with a smartphone; you’re looking for team members who are technically skilled, customer-focused, and ready to grow with your business.

There are a few roles commonly found in a cell phone repair business:

Repair Technicians : These are the folks who will actually be doing the repair work. They need to be detail-oriented, comfortable working with small parts, and knowledgeable about a wide variety of mobile devices.

Customer Service Representatives : These employees will be the first point of contact for your customers. They need to be personable, patient, and skilled at explaining technical issues in a way that anyone can understand.

When it comes to hiring, it’s not as simple as finding the right people and getting them on the payroll. There are a number of legal boxes to check:

Employee Identification Numbers (EIN) : You’ll need to obtain an EIN from the IRS. This is also known as an Employer Tax ID and is used to identify a business entity.

State/local tax IDs : Depending on where your business is located, you might need to obtain additional tax IDs.

Employee eligibility verification (I-9) : Federal law requires that you verify an employee’s eligibility to work in the United States. To comply, you’ll need to complete an I-9 form for each employee.

W-4 form : Your employees need to complete this form so that you know how much money to withhold from their paychecks for federal taxes.

Register with Your state’s New Hire Reporting Program : All employers are required to report newly hired and re-hired employees to a state directory.

Hiring is a complex process, but it’s essential for growing your cell phone repair business. By understanding the common roles within a repair business and the legal obligations of hiring, you’re well on your way to building a capable and compliant team.

Related:  State guides for hiring your first employee

Step 10: Prepare to Open!

As the launch of your cell phone repair business draws near, there’s an array of remaining tasks that likely need to be addressed. Tying up these loose ends will get your operations running smoothly and safeguard your new enterprise. Every business will be different, but here’s a snapshot of some of these important tasks:

Business insurance : No matter the size or industry, all businesses face risks. For a cell phone repair business, you’ll want to consider liability insurance to cover any accidental damage to customer devices. Depending on your setup, you may also need property insurance for your repair shop.

We recommend getting at least three insurance quotes, including local insurance agents and online providers like Coverwallet or Hiscox to get the best coverage and price.

Bookkeeping setup : A solid bookkeeping system will keep track of your income and expenses, making tax time less of a headache. Several affordable software options, like Wave Accounting (FREE) or Quickbooks , can help simplify this process.

Contracts : Well-written contracts can provide legal protection and clarity for your business. For cell phone repair shops, service agreements or repair releases are common.

Bank account : Open a separate bank account for your business to keep personal and business finances distinct. This will make your bookkeeping cleaner and give your business a professional image.

Management or POS software : Software like RepairDesk , RepairQ , or CellSmart POS can help manage repairs, track inventory, and handle sales. These systems are tailored to cell phone repair businesses and can streamline your day-to-day operations.

Credit card processing : Accepting credit cards can increase convenience for your customers. Payment processors like Square or Stripe can integrate with your POS system for seamless transactions or be used separately.

Grand opening preparation : Plan your grand opening to make a splash in your community. It’s an opportunity to attract your first customers and begin building your local reputation.

This material is property of StartingYourBusiness.com

Common Questions When Starting A Cell Phone Repair Business

How much does it cost to start a cell phone repair business.

Starting a cell phone repair business can be quite manageable in terms of initial expenses. Typically, you can expect to spend somewhere between $10,000 and $50,000 to get your business off the ground. Of course, the exact amount varies based on numerous factors such as location, scale, and inventory.

Lease or purchase of space : Depending on whether you choose a storefront or a mobile setup, your expenses here can vary. For a storefront, you might pay anywhere from $1,000 to $5,000 per month depending on your location. With a mobile setup, the costs can be significantly less.

Equipment and tools : High-quality repair tools and equipment, including a variety of specialized screwdrivers, opening tools, tweezers, and heat guns, can cost up to $500.

Inventory : This would consist of common spare parts you would need for repairs. Starting with a basic inventory could cost you around $2,000 to $10,000, depending on the devices you’re planning to service.

Insurance : You’ll want to have general liability insurance at the very least. Initial payments for such policies can range from $300 to $600.

Marketing : Initial marketing costs can include setting up a website, printing flyers or business cards, and maybe running a local ad. Expect to spend about $1,000 to $2,000 to kick off your marketing efforts.

Licenses and permits : The cost of business licenses and permits will vary depending on your location, but you can anticipate somewhere between $100 and $400.

Software : Point of sale (POS) systems, customer relationship management (CRM) software, and accounting software are some digital tools you may need. These can range from $100 to $1,000, depending on your selections.

Professional services : Legal and accounting services might be needed during the startup process. Depending on the complexity of your business structure and finances, this can range from $500 to $2,000.

Working capital : Finally, having three to six months’ worth of operating expenses on hand can be a lifesaver during your business’s infancy. This will cover wages (if you have employees), utility bills, lease payments, replenishing inventory, and other ongoing expenses.

It’s essential to bear in mind that these are general estimates. You’ll want to do your research and possibly consult with industry professionals to get a more accurate idea for your specific situation.

How much can a cell phone repair business owner make?

Profit potential for a cell phone repair business largely depends on factors like location, business model, pricing, and competition, among others. However, we can still give you a ballpark figure based on some common industry data and assumptions.

First, let’s estimate revenue. Suppose an average repair job costs about $60, and you manage to complete 10 jobs per day. That adds up to $600 per day, or $15,000 per month assuming a 5-day work week.

Now let’s consider expenses. Depending on whether you run a storefront or a mobile business, rent could range from $1,000 to $5,000 a month. Other ongoing costs might include utilities (say, $200), inventory replenishment (around $2,000), insurance ($100), software subscriptions (about $100), and marketing (let’s assume another $500). So, your total monthly operating expenses could range between $3,900 to $7,900.

Subtract your expenses from your revenue to get an estimate of your monthly profit. So, in this case, your profits could range anywhere from $7,100 to $11,100 per month.

Please note that this is a rough estimation and your actual profits could be more or less based on your specific circumstances, including local market conditions and how effectively you manage your business.

This doesn’t account for taxes, potential debts, or your salary (if you choose to draw one). Those would come out of this profit as well. The key to maximizing profit lies in quality service, customer satisfaction, and prudent management of your business finances. Also, up-selling products like screen protectors, phone cases, and other accessories can increase profits.

What skills are needed to run a cell phone repair business?

Planning, opening, and running a cell phone repair business requires certain skills. While you don’t need a degree in business, the following skills and education will be helpful.

Cell phone repair experience: Possibly the most important skill in getting this business off the ground is experience repairing cell phones. The ability to troubleshoot problems, replace broken parts, and repair various cell phone models and brands is essential since customers expect a repairperson to be knowledgeable, talented, and fast. Some people acquire these skills through experimentation and by teaching themselves about repairs, but there are also various courses (both online and in-person) that offer more formal education in mobile phone repair.

Customer service skills:  Good customer service is also key to successfully running your business. Customers will come to you frustrated and possibly worried about being able to retrieve data from their phones. In some instances, you may have to break the news that their data is lost or their phone needs an expensive repair. Being able to handle customer emotions and provide good customer service can help build and sustain a repair business.

Business skills:  Some business skills will also be necessary for starting and managing a cell phone repair business. It’s important to set appropriate prices, manage supply inventory, market the business, and more.

Interest in the technology industry:  Cell phone technology rapidly evolves, and a successful cell phone repair person will need to keep pace with the new technology so that they can repair new phone models as needed. The more technical knowledge that a repair person has, the better quality service and advice they can give to their customers.

What is the NAICS code for a cell phone repair business?

The NAICS code for a cell phone repair business is 811213, which is classified under Communication Equipment Repair and Maintenance.

The NAICS code (North American Industry Classification System) is a federal system to classify different types of businesses for the collection and reporting of statistical data.

Related: What is a NAICS code?

Resources The Repair Association The Association of Device Repair Service Excellence

26 Best Repair Business Ideas

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How to Start a Profitable Phone Repair Business [11 Steps]

By Nick Cotter Updated Feb 02, 2024

Business Steps:

1. perform market analysis., 2. draft a phone repair business plan., 3. develop a phone repair brand., 4. formalize your business registration., 5. acquire necessary licenses and permits for phone repair., 6. open a business bank account and secure funding as needed., 7. set pricing for phone repair services., 8. acquire phone repair equipment and supplies., 9. obtain business insurance for phone repair, if required., 10. begin marketing your phone repair services., 11. expand your phone repair business..

When starting a phone repair business, it's crucial to understand the market you're entering. A thorough market analysis will provide valuable insights about your potential customers, competitors, and the industry's trends. Here's how to perform a comprehensive market analysis:

• Identify your target market: Determine who needs phone repair services, including demographics like age, income, and occupation.
• Analyze competition: Research existing phone repair businesses in your area, their services, pricing, and customer reviews to identify gaps in the market.
• Assess industry trends: Stay updated with the latest trends in phone technology and repair techniques that could impact your business.
• Understand regulatory requirements: Know the legal and environmental regulations that affect phone repair businesses in your region.
• Explore supplier options: Find reliable parts suppliers with quality components at reasonable prices to ensure profitability.
• Examine pricing strategies: Investigate how competitors price their services and consider your cost structure to develop competitive pricing.

Are phone repair businesses profitable?

Yes, phone repair businesses can be profitable. Depending on the type of services offered, location and market conditions, a phone repair business can generate a steady income. Additionally, the cost of parts and specialized tools required to repair devices is often cheaper than buying a new phone, making it an attractive option for customers.

Creating a comprehensive phone repair business plan is crucial for setting clear objectives and strategizing the path to success. It serves as a roadmap, guiding you through each stage of starting and managing your business. Here's a concise guide to help you draft an effective plan:

• Analyze the market to identify your target audience and understand the demand for phone repair services in your area.
• Define the services you will offer, such as screen repairs, battery replacements, and water damage restoration.
• Outline the start-up and operational costs, including the investment for tools, parts, a workspace, and marketing.
• Develop a pricing strategy that covers costs and remains competitive within the market.
• Create a marketing plan to promote your services through various channels like social media, local ads, and partnerships.
• Establish the legal structure of your business, including registration, taxes, and necessary insurance.
• Set short-term and long-term goals for growth, such as expanding services, hiring employees, or opening additional locations.
• Plan for potential challenges and risks, and devise strategies to mitigate them.

How does a phone repair business make money?

A phone repair business can make money through charging fees for repair services, selling replacement parts, and offering maintenance plans. This type of business can be successful by targeting busy professionals who need a reliable repair service in a timely manner. They could also tap into a market of people who can't afford to buy new phones by providing cost-effective repair services. Moreover, they could target students who need to stay connected but do not have the means to buy new or used phones.

Creating a strong phone repair brand is essential to differentiate your business in a competitive market. Your brand will be the face of your business and should resonate with your target audience, conveying trust, expertise, and professionalism. Here are some key steps to help you develop your phone repair brand:

• Identify your unique value proposition (UVP) by understanding what sets your service apart from others. Is it speed, cost, customer service, or a unique warranty policy?
• Design a memorable logo that reflects your brand's values and is easily recognizable. This will be used on your signage, business cards, and marketing materials.
• Choose a brand name that is catchy, easy to remember, and gives an indication of the services you offer.
• Establish a consistent brand voice and personality that will be reflected across all your communications, whether it's professional, friendly, or tech-savvy.
• Develop a professional website and maintain active social media profiles to increase visibility and engage with customers.
• Ensure that your branding is consistent across all platforms and points of contact with customers, from your storefront to your customer service.

How to come up with a name for your phone repair business?

When deciding on a name for a phone repair business, you should consider all of the angles. First, it’s important to think about the kind of services you offer and ensure that the name reflects those services. You could include the type of repairs in your name; for example, ‘Smart Device Repair Specialists.’ Additionally, you may want to incorporate something unique about you or your business into the name; such as a play on words or your location. The name should also be easy for potential customers to remember and relate back to your services. Lastly, research other businesses and make sure your desired name is not too similar. By taking all of these factors into account, you'll have no problem coming up with an appropriate and creative name for your phone repair business.

Starting a phone repair business requires more than just technical know-how; it's essential to ensure that your business is legally recognized to operate within your jurisdiction. By formalizing your business registration, you're taking a significant step towards establishing credibility and protecting your business. Here's how to proceed:

• Research the business structure options available in your area, such as sole proprietorship, partnership, LLC, or corporation, and choose the one that best suits your business needs.
• Register your business name with the appropriate local or state government agency. Ensure the name is unique and meets all the naming requirements of your jurisdiction.
• Obtain an Employer Identification Number (EIN) from the IRS for tax purposes, especially if you will have employees or if you're forming a partnership, LLC, or corporation.
• Apply for the necessary business licenses and permits required to operate a phone repair shop in your locality. This could include a general business license, a resale permit, or a specific electronic repair license.
• Consider consulting with a legal professional to assist in navigating the registration process and to ensure all legal requirements are met.

Resources to help get you started:

Explore vital resources designed to assist phone repair entrepreneurs in staying current with market trends, refining operational strategies, and elevating their business success:

• iFixit Insights: Comprehensive guides and analyses on the latest in phone repair techniques and technology trends. Visit iFixit Insights
• Repair Industry Report by Counterpoint Research: Annual reports detailing market trends, growth opportunities, and challenges in the phone repair sector. Visit Counterpoint Research
• Mobile Repair Business Newsletter by Wireless Dealer Magazine: A dedicated newsletter offering market insights, new tools, and business advice for mobile repair professionals. Visit Wireless Dealer Magazine
• Phone Repair Guru YouTube Channel: Video tutorials and reviews on current repair techniques, tools, and parts sourcing for beginners and experts alike. Visit Phone Repair Guru
• The Art of Repair: A blog filled with insider tips, operational best practices, and innovative repair solutions to keep your business ahead. Visit The Art of Repair

Starting a phone repair business involves various legal considerations to ensure compliance with local, state, and federal regulations. Acquiring the necessary licenses and permits is a critical step to legally operate your business and avoid any potential fines or legal issues. Here's a guide to help you navigate this process:

• Research Local Requirements: Check with your city or county government to find out what local licenses or permits you may need to operate a phone repair business in your area.
• Obtain a Business License: Apply for a general business license through your local government. This license is the basic permit that allows you to conduct business in your municipality.
• Specialized Permits: Some jurisdictions may require a specific electronics repair permit or an environmental permit if you're dealing with electronic waste.
• Sales Tax Permit: If you're going to be selling goods, like phone accessories, you'll need to apply for a sales tax permit through your state's department of revenue.
• Federal Employer Identification Number (EIN): If you plan to hire employees, you'll need to obtain an EIN from the IRS for tax purposes.
• Comply with Environmental Regulations: Ensure you understand and adhere to the disposal regulations for electronic waste and batteries.
• Inspections and Compliance: Some localities may require your business premises to pass a safety inspection before issuing a permit.

What licenses and permits are needed to run a phone repair business?

In order to legally run a phone repair business, you will need to obtain several licenses and permits from the local, state, and federal governments. These may include:

• A business license from your state or city.
• A seller’s permit from the state.
• Certification from the Federal Communications Commission (FCC).
• Proof of liability insurance.

Opening a business bank account and securing funding are crucial steps in establishing your phone repair business's financial foundation. A dedicated business account helps you manage finances effectively, while securing funding ensures you have the capital to cover startup costs and operational expenses. Follow these guidelines to get started:

• Choose the Right Bank: Research banks to find one that offers business banking services with low fees, easy access, and good customer support.
• Gather Required Documents: Prepare necessary documents such as your business license, EIN, and personal identification to open your account.
• Understand Your Funding Needs: Calculate the initial investment required for tools, parts, and workspace to determine how much funding you need.
• Explore Funding Options: Look into small business loans, credit lines, venture capital, or crowdfunding platforms as potential sources of funding.
• Prepare a Business Plan: Create a detailed business plan to present to potential investors or lenders, showcasing the viability and growth potential of your phone repair business.
• Consider Credit Options: Evaluate business credit cards for smaller purchases or unexpected expenses to help with cash flow management.

When setting pricing for your phone repair services, it's crucial to strike the right balance between competitive rates and profitability. Here are some key factors to consider to ensure your pricing strategy attracts customers while sustaining your business:

• Cost Analysis: Calculate the cost of parts, labor, and overhead expenses to ensure you cover costs and make a profit.
• Market Research: Analyze competitor pricing to ensure your rates are competitive in your service area.
• Service Tiering: Consider offering different pricing tiers based on the complexity and urgency of the repairs.
• Value-Based Pricing: If you offer superior service or warranty, consider pricing higher to reflect the added value.
• Volume Discounts: Offer discounts for multiple repairs to encourage customers with several devices to use your service.
• Transparent Pricing: Clearly communicate the costs for common repairs, and ensure there are no hidden fees.
• Adaptability: Be prepared to adjust your pricing based on customer feedback and changes in market conditions or parts costs.

What does it cost to start a phone repair business?

Initiating a phone repair business can involve substantial financial commitment, the scale of which is significantly influenced by factors such as geographical location, market dynamics, and operational expenses, among others. Nonetheless, our extensive research and hands-on experience have revealed an estimated starting cost of approximately $11000 for launching such an business. Please note, not all of these costs may be necessary to start up your phone repair business.

Starting a phone repair business requires not only skill but also the right set of tools and supplies. Your toolkit is the backbone of your services, enabling you to perform repairs efficiently and effectively. Here is a list of essential equipment and supplies you'll need to acquire:

• Basic Tools: Screwdriver set (including pentalobe, Phillips, and flathead), spudgers, tweezers, and opening tools.
• Specialized Tools: Suction cups, SIM card eject tool, and precision knife set.
• Electronics Repair Mat: A mat with magnetic sections helps organize screws and small parts.
• Multimeter: For diagnosing electrical issues.
• Soldering Station: Necessary for more advanced repairs involving soldering components.
• Oscilloscope: For advanced diagnostics and signal tracing.
• Ultrasonic Cleaner: To clean the motherboard and other components.
• Replacement Parts: Screens, batteries, cameras, and other common components for various phone models.
• Consumables: Thermal paste, adhesives, and cleaning supplies like isopropyl alcohol.
• Organizational Supplies: Storage boxes for parts, and a system for managing inventory.
• Protective Gear: Gloves and eye protection for safety during repairs.

List of software, tools and supplies needed to start a phone repair business:

• Computer with Windows operating system and internet connection: Estimate $500-600
• Phone repair tools such as screwdrivers, tweezers, pry tools: Estimate $50-100
• Phone parts such as displays, batteries, touchscreen digitizers: Estimate $30-50 per part
• Anti-static wrist strap: Estimate $10-20
• Anti-static mat: Estimate $15-30
• Temperature controlled soldering station & soldering supplies: Estimate $100-200
• Power supply tester and multimeter: Estimate $40-60
• Heat gun or hot air station with nozzle attachments: Estimate $80-120
• Microscopes with magnification up to 40x: Estimate $200-400
• Vacuum pick up tool and dust blower: Estimate $20-30

Starting a phone repair business involves managing risks and protecting your financial wellbeing. One crucial step in this process is obtaining the right business insurance. Below are some guidelines to help you secure appropriate coverage:

• Assess your risks: Consider the potential risks associated with your phone repair business, such as liability for damaged devices or injuries occurring on your premises.
• Research insurance providers: Look for insurers that specialize in small businesses or specifically in electronics repair businesses. Compare their coverage options and pricing.
• Understand policy types: Familiarize yourself with different types of insurance policies, such as general liability insurance, professional liability insurance, and property insurance.
• Consider additional coverage: Depending on your business model, you may need additional coverage like data breach insurance or business interruption insurance.
• Get multiple quotes: Obtain quotes from several insurance providers to ensure you are getting a competitive rate for the coverage you need.
• Consult with a professional: Speak with an insurance agent or broker who can provide expert advice tailored to your specific business needs.

Starting a phone repair business requires effective marketing to attract customers and establish your brand. Here are some strategies to help you begin marketing your services and stand out in the competitive market.

• Develop a Strong Online Presence: Create a professional website and maintain active social media profiles to engage with customers and showcase your services.
• Leverage Local SEO: Optimize your online content for local search terms to ensure your business appears when potential customers are looking for phone repair services in your area.
• Offer Promotions: Attract initial customers with discounts or bundled services to encourage them to try your repair services and spread the word.
• Network Locally: Attend community events, join local business associations, and collaborate with nearby businesses to build relationships and gain referrals.
• Collect Testimonials: Encourage satisfied customers to leave positive reviews online, which act as powerful social proof for prospective clients.
• Utilize Pay-Per-Click Advertising: Invest in targeted PPC campaigns on platforms like Google Ads to reach customers actively searching for phone repair services.

Once you've established a solid foundation for your phone repair business, it's time to think about expansion. This can be an exciting phase of your entrepreneurial journey, where you can build on your success and explore new opportunities. Here are some strategies to help you grow your business effectively:

• Franchising or Opening New Locations: Consider opening additional locations or franchising your business model to reach a wider audience.
• Offering Training Courses: Start training courses for individuals interested in learning phone repair, creating an additional revenue stream and promoting your brand.
• Diversifying Services: Expand your service offerings to include related technology repairs, such as tablets, laptops, or smartwatches.
• Partnering with Retailers: Form partnerships with local retailers to offer repair services at their locations, increasing visibility and customer base.
• Investing in Marketing: Allocate more resources to marketing efforts, using both digital and traditional advertising to reach new markets.
• Improving Customer Experience: Enhance the customer experience with a loyalty program or expedited services to encourage repeat business and referrals.
• Exploring E-commerce: Launch an online store for phone accessories or refurbished devices to complement your repair services.

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Here is a free business plan sample for a smartphone repair and resale shop.

Have you been considering launching a smartphone repair and resale shop but are unsure of where to start? Look no further.

In the content that follows, we will present you with a comprehensive sample business plan tailored for the smartphone repair and resale industry.

As you may already be aware, a meticulously developed business plan is a cornerstone of entrepreneurial success, providing a clear outline of your business vision, objectives, and strategic approach.

To craft a robust plan with ease and precision, feel free to utilize our smartphone repair and resale shop business plan template. Additionally, our specialists are on hand to offer a complimentary review and refinement of your plan.

How to draft a great business plan for your smartphone repair and resale shop?

A good business plan for a smartphone repair and resale shop must be tailored to the nuances of the electronics repair industry.

To start, it's crucial to provide a comprehensive overview of the market. This includes up-to-date statistics and identifying emerging trends in the smartphone repair sector, as illustrated in our smartphone repair shop business plan template .

Your business plan should clearly articulate your vision, pinpoint your target market (such as local residents, students, professionals), and establish your shop's unique selling proposition (USP) (e.g., quick turnaround times, warranty on repairs, certified technicians).

Market analysis is a key component. This requires a thorough understanding of local competitors, industry trends, and consumer behavior regarding smartphone usage and repair preferences.

For a smartphone repair and resale shop, it is imperative to detail the services you will offer. This includes the types of repairs (screen replacement, battery swaps, water damage restoration), the range of models you cater to, and any additional services like accessories sales or buyback programs.

The operational plan should outline the shop's location, the layout of the repair and customer service areas, the procurement of parts and tools, and the repair process itself.

It's important to highlight the expertise of your technicians, the quality of replacement parts, and adherence to safety and privacy standards when handling customers' devices.

Discuss your marketing and sales strategies. How do you plan to attract and retain customers? Consider advertising methods, customer loyalty programs, and upselling opportunities (such as selling refurbished phones or accessories).

Implementing digital strategies, like maintaining a robust website or active social media presence, is also vital in the digital age.

The financial section is critical. It should encompass the initial investment, revenue projections, operating expenses, and the point at which the business will become profitable.

In the smartphone repair industry, understanding the profit margins for various services and resale items is essential for precise planning. For assistance, refer to our financial forecast for a smartphone repair shop .

Compared to other business plans, a smartphone repair and resale shop plan must address specific issues such as the sourcing of quality parts, the rapid pace of technological change, and the handling of warranty and insurance claims.

A well-crafted business plan will not only help you clarify your strategy and approach but also attract investors or secure loans.

Lenders and investors are looking for a solid market analysis, realistic financial projections, and a clear operational strategy for managing a smartphone repair shop.

By presenting a comprehensive and substantiated plan, you showcase your professionalism and dedication to the success of your venture.

To achieve these goals while saving time, you can simply fill out our smartphone repair shop business plan template .

A free example of business plan for a smartphone repair and resale shop

Here, we will provide a concise and illustrative example of a business plan for a specific project.

This example aims to provide an overview of the essential components of a business plan. It is important to note that this version is only a summary. As it stands, this business plan is not sufficiently developed to support a profitability strategy or convince a bank to provide financing.

To be effective, the business plan should be significantly more detailed, including up-to-date market data, more persuasive arguments, a thorough market study, a three-year action plan, as well as detailed financial tables such as a projected income statement, projected balance sheet, cash flow budget, and break-even analysis.

All these elements have been thoroughly included by our experts in the business plan template they have designed for a smartphone repair and resale shop .

Here, we will follow the same structure as in our business plan template.

Market Opportunity

Market data and figures.

The smartphone repair and resale market is a dynamic industry with significant growth potential.

Recent estimates suggest that the global market for smartphone repair services is valued at several billion dollars, with expectations for continued growth as the number of smartphone users increases and consumers seek cost-effective alternatives to purchasing new devices.

In the United States alone, there are thousands of smartphone repair shops, contributing to a robust annual revenue stream within the electronics repair sector.

These figures underscore the critical role that smartphone repair and resale businesses play in the tech economy and their substantial contribution to reducing electronic waste.

The smartphone repair and resale industry is witnessing several key trends that are shaping its future.

Consumers are becoming more environmentally conscious, leading to a preference for repairing and reusing electronics instead of discarding them. This sustainability trend is driving the growth of the repair and resale market.

Technological advancements in repair tools and techniques are enabling more complex repairs, thus extending the life of devices and supporting the circular economy.

The rise of buyback and trade-in programs offered by manufacturers and third-party retailers is also promoting the growth of the resale market, as consumers seek value from their old devices.

Additionally, the demand for refurbished smartphones is increasing, as they offer a cost-effective alternative to new models without compromising on functionality.

Online platforms for repair services and the sale of refurbished devices are becoming more prevalent, providing convenience and broader access to these services.

Success Factors

Several factors contribute to the success of a smartphone repair and resale shop.

Expertise in repairing a wide range of devices is paramount. Shops that can quickly and effectively fix common issues are likely to build a strong reputation.

Offering competitive pricing for repair services and resale devices can attract cost-conscious consumers and encourage repeat business.

The location of the shop is important, as high foot traffic areas can lead to more walk-in customers.

Providing excellent customer service, including transparent communication about repair processes and costs, is essential for customer satisfaction and retention.

Lastly, staying up-to-date with the latest smartphone models and repair techniques is crucial for maintaining relevance in a rapidly evolving industry.

The Project

Project presentation.

Our smartphone repair and resale shop is designed to address the growing need for reliable and affordable smartphone repair services, as well as the demand for pre-owned smartphones that are both cost-effective and environmentally friendly. Situated in a high-traffic urban area with easy access for customers, our shop will offer a comprehensive range of services including screen replacements, battery swaps, software troubleshooting, and general repairs for a variety of smartphone brands and models.

We will also specialize in the resale of refurbished smartphones, providing a sustainable option for consumers looking to purchase a device without the high costs associated with brand-new models. Each device will undergo a rigorous refurbishing process to ensure it meets our high standards of quality and performance.

Our shop aims to be a one-stop solution for customers' smartphone needs, offering dependable repairs, accessories, and certified pre-owned devices, all under one roof.

Value Proposition

The value proposition of our smartphone repair and resale shop centers on delivering professional, swift, and cost-effective repair services alongside a selection of high-quality refurbished smartphones. We understand the inconvenience of a damaged or malfunctioning device and the high cost of brand-new smartphones.

Our commitment to extending the lifespan of smartphones not only saves our customers money but also promotes sustainability by reducing electronic waste. We provide peace of mind with warranties on repairs and resold devices, ensuring customer satisfaction and trust in our services.

We aim to empower our customers with more choices and better control over their smartphone expenses, while also contributing to a greener planet by encouraging the reuse and recycling of technology.

Project Owner

The project owner is a tech-savvy entrepreneur with a passion for electronics and a strong background in smartphone repair and refurbishment. With years of experience in the industry, he possesses a deep understanding of the technical aspects of smartphone maintenance and the market for pre-owned devices.

He is dedicated to providing a service that not only meets the immediate needs of customers but also addresses the larger issue of electronic waste. His expertise in diagnosing and repairing a wide array of smartphone issues, combined with his commitment to customer service, makes him the ideal leader for this venture.

With a vision to create a business that supports the community's technological needs in an eco-friendly and cost-effective manner, he is determined to establish a shop that stands out for its reliability, affordability, and dedication to sustainability.

The Market Study

Market segments.

The market segments for this smartphone repair and resale shop are diverse and include several key categories.

Firstly, there are consumers who have damaged their smartphones and require repair services to restore functionality. This includes screen replacements, battery changes, and fixing water damage.

Secondly, there are tech-savvy individuals who seek to purchase refurbished smartphones as a cost-effective alternative to brand new models.

Another segment includes environmentally conscious consumers who prefer to buy refurbished phones to reduce electronic waste.

Lastly, businesses and organizations looking for bulk repair services or to equip their staff with cost-effective refurbished smartphones can be a significant market segment.

SWOT Analysis

A SWOT analysis of the smartphone repair and resale shop project highlights several factors.

Strengths include technical expertise in smartphone repair, a commitment to customer service, and the growing market for refurbished electronics.

Weaknesses might encompass the challenge of sourcing quality parts for repairs and the intense competition from both local repair shops and manufacturer services.

Opportunities can be found in the increasing consumer awareness about the benefits of refurbished phones and the potential partnerships with local businesses for their repair needs.

Threats could involve the rapid advancement of smartphone technology, which may make certain models obsolete quickly, and the potential for manufacturers to limit third-party repairs.

Competitor Analysis

Competitor analysis in the smartphone repair and resale sector indicates a competitive landscape.

Direct competitors include other local repair shops, large electronics retailers with repair services, and online platforms offering refurbished devices.

These competitors vie for customers who are looking for reliable and quick repair services or affordable refurbished smartphones.

Potential competitive advantages include superior repair turnaround times, exceptional customer service, warranty offerings on repairs and sales, and a strong reputation for quality workmanship.

Understanding the strengths and weaknesses of these competitors is crucial for carving out a unique position in the market and for customer acquisition and retention.

Competitive Advantages

Our smartphone repair and resale shop stands out due to our dedication to providing high-quality repair services and reliable refurbished products.

We offer a wide range of repair services for various smartphone models, ensuring that customers can have their devices fixed regardless of brand or issue.

Our commitment to sustainability by promoting the resale of refurbished smartphones appeals to environmentally conscious consumers and sets us apart in the market.

We also prioritize transparency with our customers about the repair processes and the quality of the parts used, which helps to build trust and loyalty in our brand.

You can also read our articles about: - how to open a smartphone repair and resale shop: a complete guide - the customer segments of a smartphone repair and resale shop - the competition study for a smartphone repair and resale shop

The Strategy

Development plan.

Our three-year development plan for the smartphone repair and resale shop is designed to adapt to the fast-paced tech industry.

In the first year, we will concentrate on establishing a strong local presence and reputation for quick, reliable repairs and quality refurbished smartphones.

The second year will focus on scaling our operations by introducing additional services such as device customization and expanding our online sales platform for refurbished devices.

In the third year, we aim to form strategic partnerships with tech companies and insurance providers, and possibly open additional locations in high-demand areas.

Throughout this period, we will stay committed to providing exceptional service, staying abreast of technological advancements, and ensuring customer satisfaction to solidify our market position.

Business Model Canvas

The Business Model Canvas for our smartphone repair and resale shop targets customers in need of affordable repair services and those looking for cost-effective, refurbished smartphones.

Our value proposition is centered on providing high-quality, efficient repair services and reliable, certified refurbished smartphones at competitive prices.

We offer our services through our physical shop and an e-commerce platform, utilizing key resources such as skilled technicians and diagnostic tools.

Key activities include device repair, quality assurance for refurbished devices, and customer service.

Our revenue streams are generated from repair services, sales of refurbished devices, and accessory sales, while our costs are mainly associated with parts procurement, labor, and operational expenses.

Find a complete and editable real Business Model Canvas in our business plan template .

Marketing Strategy

Our marketing strategy is focused on building trust and demonstrating expertise.

We aim to educate our target audience on the benefits of professional repair services and the value of purchasing refurbished smartphones. Our approach includes targeted online advertising, community engagement events, and informative content on device maintenance and sustainability.

We will also develop partnerships with local businesses and educational institutions to offer repair services and promote our refurbished products.

Additionally, we will leverage social media and word-of-mouth referrals to expand our reach while emphasizing our commitment to quality service and environmental responsibility through device recycling and refurbishment.

Risk Policy

The risk policy for our smartphone repair and resale shop is designed to mitigate risks associated with technological changes, inventory management, and customer satisfaction.

We stay updated with the latest repair techniques and technology trends to ensure our services remain relevant. We manage our inventory of parts and refurbished devices carefully to avoid overstocking or stockouts.

Quality control is paramount, and we offer warranties on repairs and refurbished devices to build customer trust. We also maintain a conservative financial strategy to safeguard against market fluctuations.

Finally, we have comprehensive insurance to cover any potential liabilities related to device repairs and sales. Our priority is to deliver dependable services and products while ensuring the complete satisfaction of our customers.

Why Our Project is Viable

We envision establishing a smartphone repair and resale shop that meets the growing demand for cost-effective tech solutions.

With our dedication to service excellence, technological expertise, and commitment to sustainability, we are confident in our ability to thrive in this dynamic market.

We are excited about the opportunity to serve our community by extending the life of devices and providing affordable options, all while building a sustainable and profitable business.

We are flexible and ready to adapt to the industry's changes to achieve our objectives, and we look forward to the promising future of our smartphone repair and resale shop.

You can also read our articles about: - the Business Model Canvas of a smartphone repair and resale shop - the marketing strategy for a smartphone repair and resale shop

The Financial Plan

Of course, the text presented below is far from sufficient to serve as a solid and credible financial analysis for a bank or potential investor. They expect specific numbers, financial statements, and charts demonstrating the profitability of your project.

All these elements are available in our business plan template for a smartphone repair and resale shop and our financial plan for a smartphone repair and resale shop .

Initial expenses for our smartphone repair and resale shop include acquiring diagnostic and repair tools, purchasing initial inventory of refurbished smartphones, setting up a customer-friendly retail space, investing in professional training for technicians to handle various smartphone models, and costs associated with branding and launching targeted marketing campaigns to reach our potential customers.

Our revenue assumptions are based on an in-depth analysis of the local market demand for smartphone repair services and refurbished devices, considering the high rate of smartphone usage and the cost-saving preferences of consumers.

We anticipate a steady increase in service requests and sales of refurbished phones, starting modestly and growing as the reputation of our shop for quality repairs and reliable devices strengthens.

The projected income statement indicates expected revenues from our repair services and sales of refurbished smartphones, direct costs (parts, labor, utilities), and operating expenses (rent, marketing, salaries, etc.).

This results in a forecasted net profit that is essential for assessing the long-term profitability of our business.

The projected balance sheet reflects assets specific to our business, such as repair equipment, parts inventory, and refurbished smartphones, along with liabilities including any debts and anticipated expenses.

It shows the overall financial health of our smartphone repair and resale shop at the end of each fiscal period.

Our projected cash flow budget details the inflows from services and sales and outflows for business expenses, allowing us to anticipate our cash needs at any given time. This will enable us to manage our finances effectively and avoid potential cash flow issues.

The projected financing plan outlines the specific sources of financing we intend to use to cover our startup costs.

The working capital requirement for our shop will be closely monitored to ensure we have the necessary liquidity to finance day-to-day operations, including parts procurement, inventory management, and payroll.

The break-even point for our project is the level of sales and service income needed to cover all our costs, including startup expenses, and to begin generating a profit.

It will signal when our business is on the path to profitability.

Performance indicators we will monitor include the profit margin on repair services and refurbished phone sales, the current ratio to assess our ability to meet short-term financial obligations, and the return on investment to evaluate the efficiency of the capital invested in our business.

These indicators will assist us in measuring the financial health and overall success of our smartphone repair and resale shop.

If you want to know more about the financial analysis of this type of activity, please read our article about the financial plan for a smartphone repair and resale shop .

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Create thriving cell phone repair business: a step-by-step plan, the ultimate cell phone repair business plan, the state of the cell phone repair market: insights and trends, defining your target market before starting, starting a cell phone repair business: what you need to know about costs, ensure your startup is free of cell phone repair legal issues, the equipment and supplies for a profitable cell phone repair business.

• Cell phone repair tools and equipment. try to buy an all-in-one cell phone repair kit can save you cost and time
• Parts and components for repairing cell phones, especially cell phone screens and cell phone battery
• A computer and printer for invoicing and record keeping
• A website and social media presence to market your business

Choose the Right Cell Phone Repair Business Model for Your Needs

• Retail repair shops: Physical stores that offer repair services for cell phones, tablets, and other electronic devices.
• Mobile repair services: Companies that offer on-site repair services for cell phones, often at the customer's home or office.
• Mail-in repair services: Customers send in their damaged devices for the repair and receive the repaired device back through the mail.
• Wholesale repair services: Businesses that offer bulk repair services to retailers, manufacturers, and insurance companies.

Protect Your Cell Phone Repair Business with the Right Insurance

• General liability insurance: Protects against third-party claims for bodily injury or property damage.
• Property insurance: Covers damage to the business's physical location, equipment, and inventory.
• Business interruption insurance: Provides financial protection in the event of a temporary shutdown due to a covered event such as a fire or natural disaster.
• Professional liability insurance: Covers claims related to errors or omissions in the repair process.
• Workers' compensation insurance: Required in most states for businesses with employees, this coverage provides financial protection in case of on-the-job injury or illness.

Marketing Your Cell Phone Repair Business

• Creating a website and social media presence
• Networking with other business owners in your community
• Offering promotions and discounts to attract new customers
• Participating in local events and sponsoring community events

Boost Your Cell Phone Repair Sales with 7 Proven Techniques

• Offer competitive pricing: Be aware of market prices for repair services and adjust your prices accordingly to remain competitive.
• Build trust with customers: Provide excellent customer service, transparent pricing, and quality repairs to build a positive reputation and earn repeat business.
• Offer warranty: Offer a warranty on repairs to instill confidence in customers and encourage them to choose your business over competitors.
• Use social media: Utilize social media platforms to showcase your business and reach new customers. Share customer reviews and testimonials to build trust and credibility.
• Partner with other businesses: Partner with other local businesses to cross-promote services and reach new customers.
• Offer value-added services: Offer additional services such as screen protectors, case covers, and accessories to increase average sales per customer.
• Provide excellent customer service: Respond promptly to customer inquiries and resolve any issues quickly to maintain a positive customer experience.

Pricing Your Cell Phone Repair Services

• Cost of parts: The cost of replacement parts is a major factor in determining the price of a repair. Make sure to factor in the cost of parts, shipping, and handling when setting prices.
• Labor cost: The cost of labor, including the hourly rate of technicians, is another factor to consider when pricing repairs.
• Market competition: Research the prices of competitors to determine a competitive price for your services.
• Location: The cost of living and local market demand can impact the prices of cell phone repair services.
• Type of repair: The complexity of the repair, including the time and skill required, will impact the price.
• Warranty: Consider offering a warranty on repairs as an added value for customers and a way to differentiate from competitors.
• Volume discounts: Offer discounts for bulk repairs or repeat business to incentivize customers to choose your business over competitors.

6 Deliver Exceptional Customer Service in Your Cell Phone Repair Business

• Be responsive: Respond promptly to customer inquiries and resolve any issues as quickly as possible.
• Be transparent: Provide clear, upfront pricing and explain the repair process to customers to instill confidence and trust.
• Be knowledgeable: Train yourself or your store technicians to have a thorough understanding of the repair process and various devices to provide accurate information and advice to customers.
• Keep customers informed: Keep customers informed throughout the repair process and provide regular updates on the status of their devices.
• Solve problems: If a customer experiences any issues with a repair, take the necessary steps to resolve the issue and make it right.
• Seek feedback: Encourage customers to provide feedback and take any suggestions or criticisms into consideration when making improvements to your business.

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