Nearly all adults in the US regularly use a cell phone. But even expensive cellphones are fragile, and a slight slip of the hand may quickly cause them to break. That is why the $4 billion US sector of cell phone repair is expanding. Now is a perfect moment to start a cell phone repair business, even from home, and make decent money if you’re tech-savvy or want to learn how to fix phones.
But first, you must educate yourself on how to launch a firm. Fortunately, the complete entrepreneurial procedure necessary to start a profitable cell phone repair business is outlined in this step-by-step manual.
Step 1: Find Out if this is the Right Business for You?
Positives Vs Negatives
| Bath bombs are in demand, especially Good Money – Phone repairs have significant profit margins. Flexibility: Work from home to run a mobile phone repair shop. A sizable market exists since there are so many phones in use. | Market oversaturated with major firms that provide cell phone repair Required Skills for a Tech Professional |
Industry Trends
- Industry size and historical growth – After five years of consistent growth, the US cell phone repair market was valued at $4 billion in 2020.
- Forecast for growth: Over the next five years, the US cell phone repair market is expected to expand moderately.
- 9,413 cell phone repair firms were in operation in the US as of 2021.
- The US cell phone repair sector employed 26,896 workers in 2021, according to data.
- Even after repairs, used iPhones may fetch up to six times as much as comparable models from other brands. According to estimates, 30% of iPhones become damaged at some point during any given year, and owing to their value, such phones are worth fixing.
- Ironically, as technology advances, cellphones are more fragile and require more repairs.
Cost of Starting Cell Phone Repair Business
A mobile phone repair business may be launched for anywhere between $2,400 and $6,700. A website, equipment, and instruction in phone repair are costs. This presupposes that you’ll operate a mobile repair service out of your house.
Through the Cellular Repair School, you may enroll in cell phone repair classes and get a certification. The curriculum is available online and may be completed in four months for roughly $400 each course.
Investment Items:
- Nylon spatula
- Curved, fine-tipped tweezers
- Set of screwdrivers
- Triangle-shaped plastic opening tool
- Pair of fine knives
- Brush with anti-static
- Clamping cup pliers
- Magnifying mat
- Magnification device
- Iron for soldering
Is Cell Phone Repair Profitable?
The average cost of cell phone repairs is $75 and often ranges from $50 to $100. You should aim for a 90% profit margin.
In your first year or two, you may operate a mobile phone repair business from home, performing three repairs per day, five days per week, for an annual income of roughly $58,000. If the margin is 90%, the profit would be close to $53,000. As your company grows, you could be able to perform six repairs each day, five days per week. You would generate a terrific profit of more than $105,000 with annual revenue of $117,000 in.
Entry Barriers
- The education needed to become a cell phone technician, if you are not already one.
- Competing with significant businesses that provide phone repair
Step 2: Create a Strategy
Identify a Gap
Look up local companies that fix smartphones to compare their offerings, costs, and testimonials. You’re trying to find a market hole to plug. For instance, it’s possible that the neighborhood lacks a mobile repair shop or a low-end phone repair service.
This can kick-start your word-of-mouth advertising and bring in customers straight now.
Solutions
Your abilities and training will determine what you can provide. You may fix computers, smartphones, electronics, damaged screens, and even televisions.
Pricing
Your costs will vary based on how extensive the repairs are. Most cell phone repairs range in price from $50 to $100. An ideal profit margin would be around 90%.
This Step By Step Profit Margin Calculator may help you figure out your markup and final pricing points when you know your costs. Keep in mind that the rates you employ at launch should be flexible if the market calls for them.
Target Market
Due to the fact that almost everyone owns a mobile phone, your target market is incredibly large. You should diversify your marketing efforts by using platforms like Facebook, LinkedIn, Instagram, TikTok, and others.
Location
To keep costs down in the beginning, you might wish to operate your business from home. However, if your company expands, you’ll probably need to recruit personnel for a variety of positions and may wish to rent a location for a phone repair shop. On websites like Craigslist, Crexi, and Instant Offices, you may uncover rental options for commercial space in your neighborhood.
You may wish to adhere to the following guidelines while selecting a business space:
- A convenient location with access to public transportation
- Big, well-ventilated, and well-lit by natural light
- Lease that is adaptable and may be renewed as your firm expands
- Ready-to-use area that doesn’t require any substantial repairs or upgrades
Step 3: Write a Business Plan
Every organization requires a plan. This will serve as a manual to help you launch your firm and stay focused on your major objectives. A business plan also aids in the better understanding of your firm and its goals by possible investors and partners:
- A concise executive summary of the full business plan should be created when it has been completed.
- Business overview: A description of the organization’s vision, purpose, ownership, and goals.
- Please include a detailed description of your products and services.
- SWOT analysis and market analysis are two ways to analyze market trends, including differences in demand and development potential.
- Construct a list of the benefits of your services after analyzing your top rivals’ strengths and flaws.
- Develop sales, marketing, and promotional tactics by considering your firms’ USPs (unique selling propositions).
- Overview of the management team, including a corporate structure, information on each member’s responsibilities and educational background.
- Operational Plan: The operational plan for your firm outlines logistics, office location, essential assets, and other purchasing decisions.
- Financial Plan: Three years of financial planning, which includes startup expenses, break-even analysis, profit and loss projections, cash flow, and a balance sheet.
- Added financial or commercial documentation should be included in the appendix.
Step 3: Create a Marketing Plan
Digital marketing should still be a priority even when some of your business will originate from online visitors. It’s crucial for new firms to spread the word since it will increase brand and client recognition.
Establish links between your social media accounts and your website once it is up. The ability to generate interesting posts that promote your items on social media makes it an excellent tool for company promotion:
- Facebook is a fantastic tool for paid advertising since it enables you to target particular demographics, such males under 50 in the Cleveland region.
- Facebook-like advantages with a different audience on Instagram.
- Website: SEO will assist in advancing the position of your website higher in pertinent search results, which is essential for boosting sales. On your website, be sure to maximize the calls to action. This may significantly increase purchases, so experiment with the content, color, size, and placement of calls to action like “Schedule Now.”
- Google and Yelp: Listing on Google My Business and Yelp might be essential for businesses that depend on local clients to increase visibility and attract new clients.
- Send consumers and prospects regular emails as part of your email marketing and newsletter strategy. Personalize them.
- begin a blog – Create a blog and publish frequently. Share on many websites and vary your material.
- Find recommendations – Provide incentives to encourage existing customers to recommend new customers.
- Paid social media advertisements: Use sites that can help you contact your target audience and run focused advertising.
- Use Google AdWords for pay-per-click marketing to rank higher in search results. Do some keyword research beforehand.
- Create a webinar and offer a video session online to share your skills in repairing cell phones.
- Share client comments regarding how your cell phone repair benefited them.