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

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.