It’s a great time to start a cell phone repair business. In the last five years alone, the smartphone repair industry has grown by 4% annually. Add to that a higher average cost of living and many people would rather repair their phones than buy a new one.
Long story short, it’s time to take advantage of your talent for smartphone repair by turning it into a career! But fixing phones as a hobby and doing it professionally are very different things.
A solid business plan is your first step. A cell phone repair shop business plan allows you to set goals, define your niche, and detail your operations so you can set yourself up for success.
In this post, we’ll show you:
Let’s get started.
A business plan might feel like a chore, but it’s worth it. Businesses that write out a business plan grow 30% faster than those that don’t.
A business plan also acts as your shop’s guiding star. It gives you a way to measure your progress, set goals, and make adjustments if things aren’t going as expected. It will also help you avoid some common mistakes new business owners make.
Banks and other investors also require a business plan before they invest in your business.
Writing a business plan can take between three weeks and several months. That time varies based on how experienced you are, whether you’re working alone, and other factors.
A business plan should be between 15 and 20 pages when it's finished. Outside of writing the business plan, you’ll spend most of your time researching the industry and other local repair businesses.
Now that you understand how long it will take to write a business plan, let’s get into the actual process of writing one.
The first step of writing a business plan is drafting an executive summary. An executive summary is a short, one to two paragraph pitch that should detail:
A great executive summary should make a reader excited to learn more about your business — so even though this is one of the shorter sections, don’t rush through it.
The next section should expand on the background you laid out in your executive summary. Go into detail about your professional experience, what skills you have, everyone involved in the business, and how all of those will combine to make you a success.
Since you are working in a technical industry, be sure to demonstrate your understanding of industry best practices. Detail any certifications you have along with any software tools you’ll be using to streamline your repair processes.
Last, set some goals. Everyone wants to be successful, but define what success specifically means for you. Determine what healthy growth looks like over time. Once your business is up and running, you can check in with these projections to see if your business is on track.
As a cell phone repair business, you’ll face a lot of competition. Performing market research will help you understand how you fit into the industry and help define how you’ll stand out from other businesses in your area.
Start by researching the cell phone repair business as a whole. What are the current and upcoming trends in tech — how will you capitalize on them?
Next, look at the other repair shops in your area. Ask yourself questions like:
Note down your answers and observations, then use them to define how your business will differentiate itself and become profitable. Investors will hesitate to give money to a repair shop that isn’t doing anything different from its competition.
For most business owners, market research will take up the majority of the time spent writing a business plan.
Once you understand your target market, it’s time to get into specifics. This section will define what products and services you plan to offer to customers. This includes:
More than a flat list of service types and brands, you’ll also use this section to detail how your product and services will benefit your customers.
The average startup costs for a mobile phone repair business sit between $25,000-120,000. Many of these startup costs will be determined by whether you’re opening a brick-and-mortar location, what tools and resources you have already, how many staff you’ll have, and more.
Estimate your startup costs along with your projected revenue and expenses. This will give you an idea of how long it will take to start turning a profit. It will also show what targets you need to hit to be sustainable and grow moving forward.
Marketing is often the last thing a startup owner wants to worry about — but neglecting it will cost you in the long run. Unless you already have an established brand and customers, you’ll need to market yourself to bring in new business.
Develop a marketing plan, including:
Also, detail how you plan to measure the success of your advertising efforts. For example, modern cell phone store point of sale (POS) systems can track sales and repair data to track the effectiveness of your promotions.
While the cell phone repair industry is growing as a whole, the number of businesses has decreased. That means individual shops that succeed have more earning potential.
That’s why you can’t afford to run on instinct alone. Write and follow a business plan to define realistic goals, lay out operating processes, and understand your financial targets.
Once you’re ready to turn your idea for a cell phone repair shop into a reality, we’re here to help. CellSmart POS is an industry-specific solution designed to help repair stores run smoothly. Our best-in-class solution includes features like:
…and more.
Talk with one of our experts to learn how CellSmart POS helps independent repair shops thrive. And if you’re looking for more advice on how to open a mobile phone repair business, here are some more tips to get you started.
