Calling all budding entrepreneurs and future cell phone store owners.
Before you open your store, read this article. Yes, you want to get in on the booming cell phone industry — but are you ready? Have you done your research? Is your business plan watertight? Is your location ideal?
Without a plan, you’re leaving your success to chance. You want to plan smart, adapt quickly, and avoid common pitfalls.
This article highlights six of those pitfalls and how you can avoid them. Successfully opening your cell phone store is possible — when you know what not to do. Let’s dive in.
Why Opening A Cell Phone Store Is a Great Idea
The cell phone industry isn’t going to slow down anytime soon. Like other brands, Apple and Samsung release new models practically every year, and people want new toys with better cameras and features
However, they don’t only want new phones, mainly because they’re so expensive. They also want refurbished phones, accessories, and other tech to make the most of their purchase. It’s a prime time to open a cell phone store and capitalize on a booming industry.
But that doesn’t mean opening a store is easy. You can’t just set up a storefront and expect people to flood in. A cell phone store can quickly become a thriving small business when done right.
Related Read: Running A Cell Phone Store: 5 Challenges + Solutions
Get it wrong, and you’re in for a bumpy ride. Let’s explore the most damaging pitfalls to avoid from day one.
Mistake #1: Choosing the Wrong Location
Imagine choosing somewhere to live, only to realize cell service is spotty or nonexistent. You might end up regretting that decision. The same applies to choosing where to open your cell phone store. Don’t sign a long-term lease without doing your research!
In an ideal world, you want somewhere with:
- High foot traffic
- Good visibility
- Parking
- Proximity to public transportation
You need lots of walk-ins, so a main street makes sense. Prominent signage will help attract attention, and ample parking makes a difference, too. Of course, you might only get some of these. But it’s better than being in the middle of nowhere.
Another factor that comes into play is demographics.
Research the area — what are the primary age groups, income levels, and interests? If you don’t know, you might not stock the right products. For example, if you’re near schools and colleges, you could stock the latest gadgets to bring in tech-savvy students.
Pro tip: Talk to shop owners and people familiar with the area. Spend some time there and gauge traffic flow. Then, weigh the pros and cons before you make a decision.
Mistake #2: Ignoring the Competition
You’ve got your location. It’s all smooth sailing from there, right? Wrong. Even a prime location doesn’t guarantee success. If you forget to scope out the competition, you might open your cell phone store near an already successful business.
Instead, you need to research who’s competing for the same customer base as you. Walk around the area and identify existing cell phone stores, big box retailers with wireless departments, and carrier company-owned stores.
A competitor analysis includes:
- Reviews for each store to find gaps and opportunities
- What their branding looks like
- Any pricing and promotions they’re running
- Whether they offer repair services
…and any other factors you can think of!
Understanding what your competitors offer helps you position your business and decide which products you want to focus on. For example, you might decide to focus more on repairs and customer service to set your store apart from the big guns.
You can make informed decisions once you know what your competitors are doing.
Mistake #3: Not Creating A Business Plan
This is a big one. Inadequate business planning spells disaster for any business, let alone stores with slim profit margins. Without a path to profitability, you’re flying blind. Hoping you’ll be successful isn’t a business plan.
Related Read: Cell Phone Repair Store Profits: 5 Tips To Improve Your Bottom Line
You need a robust business plan tailored to your cell phone store. There are various parts to your business plan, such as:
- Doing market research
- Defining your identity
- Deciding which inventory to carry
- Scoping out your location
- Creating a financial plan
- Handling compliance and legalities
- Considering daily operations and management
- How you’ll market your store
…and finally, writing an executive summary that pulls all the sections of your cell phone store business plan together.
Mistake #4: Overlooking Local Regulations and Compliance
Imagine you’re ready to open your cell phone store.
You’ve leased a space, and your layout is complete. Inventory is ordered, and staff are trained. Then you realize you overlooked critical local regulations and compliance standards, which could set you back weeks or months. Disaster!
These local requirements cover things like business licenses and permits, building codes, accessibility standards, signage restrictions, security protocols, and more.
Research anything specific to cell phone retailers in your chosen location to avoid this mistake. Find out which licenses and permits you need, and how often you need to renew them. The Small Business Administration (SBA) can offer guidance.
Mistake #5: Compromising on Store Design and Layout
Your cell phone store needs to be inviting and well-planned out. When customers enter, consider what they see first. The lighting, eye-catching displays, and good branding all make a difference.
Consider how customers will experience your store. There should be enough space to browse and signage guiding them to various brands and devices. Think back to your demographics research. If you’re near a college, perhaps you’ll go for a techy yet professional vibe, for example.
Don’t forget your back office and stockroom! How will you organize the space? Even if you’re just starting with a small storefront, you want to be able to find inventory easily.
Mistake #6: Failing To Market Properly
Open your doors, and they will come — is not going to work. Sure, you might get a few walk-ins, but how will people know about your store if you don’t build up some excitement? Marketing your cell phone store from the start is essential.
Before you open, you could build up to the big launch by going behind the scenes of fitting out your store, opening the initial inventory, and running competitions on social media. For example, you could offer the first 10 people to buy an iPhone a free charger and case.
Let your local community know about your store with flyers and by joining local community groups. Marketing is an ongoing endeavor, and as you get to know your customers, you’ll learn how to market to them effectively.
Opening a Cell Phone Store the Right Way (and With the Right Tools)
You’ve got your location. You know who your ideal customer is. You’ve scoped out the competition, got the legalities nailed down, and you’ve marketed your store well. It’s time to open your doors!
To help manage your cell phone store, your next step is to implement a point of sale (POS) system. Think of your POS system as the engine that keeps your store running. This tool can help manage your entire operation, from processing sales transactions to managing inventory.
Which features should you look for in your POS system?
- Robust inventory management
- Multiple payment options
- Cell phone repair management software
- Detailed reporting and analytics
- A built-in loyalty program
…and more.
CellSmart is proud to work with cell phone store owners, providing industry-specific features and repair management solutions. But don’t take our word for it. Check out CellSmart POS by scheduling a live, personalized demo today!
