Cell Phone Repair Business: All You Need to Know

Advice: You will need to choose a registered agent for your LLC. LLC formation packages typically include one year of free registered agent services. You may choose to hire a registered agent or act as an agent yourself.

3) Registration tax

Before you can open your business, you’ll need to register for various state and federal taxes. An EIN is required to register for taxes. It’s really easy and free! State taxes may apply to your business.

4) Establish a business bank account and credit card

Using a dedicated business bank and credit account is essential to safeguarding personal assets. Having your personal and business accounts mixed puts your personal assets (your house, car, and other valuables) at risk. In commercial law, this is known as piercing the corporate veil.

#1. Open a business bank account

In addition to the requirements for applying for a business loan, opening a business bank account requires the following:

• Separating your personal assets from company assets is necessary to protect personal assets.
• Make accounting and tax filings easier.

#2. Get a business credit card

Getting a business credit card can help you:

• Centralize your business expenses in one place and separate personal and business expenses.
• Establish the company’s credit history, which is useful for raising capital later.

5) Set up business accounting

Documenting your various expenses and sources of income is critical to understanding your business’s financial performance. Keeping accurate and detailed accounts can also greatly simplify your annual tax return.

6) Obtain necessary permits and licenses

Failure to obtain the necessary permits and licenses can result in hefty fines and even the closure of your business.

#1. State and Local Business Licensing Requirements

Operating a cell phone repair business may require certain state permits and licenses. Cell phone repair businesses typically operate from your home or storefront. Businesses operating outside of their physical location often require a Certificate of Occupancy (CO). All building codes, zoning laws, and government regulations have been met, according to CO.

• If you plan to rent the venue :
  • Generally, it is the landlord’s responsibility to obtain a CO.
  • Ensure that your landlord has a valid CO for a cell phone repair business before leasing.
  • After major renovations, a new CO will usually need to be issued. If your business premises will be undergoing renovations prior to opening, it is recommended that you include a statement in the lease agreement that lease payments will not begin until a valid CO is issued.
• If you plan to buy or build a site :
  • It is your responsibility to obtain a valid CO from your local government.
  • Review all building codes and zoning requirements for the location of your business to ensure your cell phone repair business is compliant and able to earn a CO.

7) Purchase commercial insurance

Just like licenses and permits, your business needs insurance to operate safely and legally. Business insurance protects your company’s financial health in the event of a covered loss. There are many types of insurance policies developed for different types of businesses with different risks.

If you’re not sure about the types of risks your business may face, start with general liability insurance. This is the most common type of insurance small businesses need, so it’s an excellent starting point for your business.

Another notable piece of insurance that many businesses require is workers’ compensation insurance. If your business has employees, your state will most likely require you to have workers’ compensation insurance.

8) Define your brand

Your brand is what your company represents and how the public perceives your business. Your business will stand out from the competition if you have a strong brand.

#1. How to Promote and Market Your Phone Repair Business

Your biggest concern with success is making sure customers know about your business and what you can offer. Therefore, advertising and marketing are key pieces of the puzzle. And, to keep costs low, you should consider all cheap but effective ways to get your name known to consumers.

First, business cards, flyers, brochures, or handouts that explain your prices and areas of expertise will still work, especially if you can put them where customers can see and pick them up. It is possible to leave the information on the counters or in the windows of non-competing tech stores. You can also hand out cards and flyers during social gatherings in your city or area. You’d be surprised how many people would mention tangible items they randomly received.

Next, consider building a website or creating a social media page on Facebook or Instagram. Many customers start with a Google search when looking for a phone repair shop. You want to be their top result, so use keywords to push your business to the top of those searches. You could also join a social club, group, or organization, especially one related to technology or even equipment repair and modification.

Finally, make sure to connect with your customers. Word-of-mouth testimonials and positive reviews are great marketing tools. When a friend recommends another, they usually follow up on the referral because it comes from a trusted source. Remember, the main goal is to gain popularity and trust, and then continually maintain your good reputation.

#2. How to keep customers coming back

As mentioned earlier, customer reviews and testimonials are perhaps some of the most important aspects of a wellness business. Develop business relationships with your customers. Don’t over-promise things that you can’t deliver. And don’t set your price too low just to attract customers. You have to be competitive, but you should also be on par with your competitors. You can offer specials every now and then, especially for repeat customers. You may want to provide plans for future service visits. Customers will think of you first when choosing a repair company because of these incentives.

9) Create your business website

Having defined your brand and created your logo, the next step is to create your business website. While creating a website is an essential step, some people may worry that it is beyond their capabilities as they do not have any website-building experience. While this may have been a legitimate concern in 2015, web technology has advanced tremendously over the past few years, making life a lot easier for small business owners.

Here are the top reasons why you shouldn’t put off building a website:

• All legitimate businesses have websites – full stop. It doesn’t matter the size of your business or your industry when it comes to going online.
• Social media accounts such as Facebook pages or LinkedIn business profiles are not a substitute for having a business website that you have.
• Website building tools like GoDaddy Website Builder make it incredibly easy to create a basic website. A website you can be proud of doesn’t require the help of a web developer or designer.

WordPress, WIX, Weebly, Squarespace, and Shopify are also popular website builders.

10) Set up your business phone system

Setting up a phone for your business is one of the best ways to help keep your personal and work lives separate and private. And that’s not the only benefit; it can also help you automate your business, give your business legitimacy, and make it easier for potential customers to find and contact you. For entrepreneurs looking to set up a business phone system, there are many services to choose from.

2. Is this business right for you?

Here’s everything you need to know about whether a cell phone repair business is right for you.

1) What happens on a typical day in the mobile phone repair business?

Since most cell phone repair shops and businesses generate most of their revenue from repairing cell phones and similar devices, most of their time is spent doing it. There’s also time for ordering new supplies, planning advertising and marketing initiatives, answering customer calls and emails, and cleaning and organizing the store.

2) What skills and experience will help you build a successful cell phone repair business?

There are very few overhead or start-up costs involved in making cell phone repair a successful business venture. The skills needed to perform repairs are also easy to learn and perform. If you have a knack for working with your hands, especially on smaller or delicate items, then you would be well-suited for this career. If you also have experience or knowledge of small business management, you will also have an advantage in this career. Communication with customers is essential to ensuring their phones and devices are repaired and returned on time.

3) How big is the growth potential of the mobile phone repair business?

Most people find cell phones to be very useful and popular. No matter where you live, they are quickly becoming a necessity for most people. We manage our business and personal lives through these small tech giants. When a component breaks or no longer function properly, many people find themselves in a situation where a replacement must be found quickly.

However, not everyone has the money or the opportunity to buy a new phone or device when something goes wrong with their current phone or device. Because of this new dynamic, servicing your phone becomes yet another necessity to stay connected and be able to browse the web, make calls, send and receive emails, text messages, and more.

Therefore, repairing mobile phones becomes the best choice for many people, both economically and geographically. And, as phone sales continue to soar, more devices will need repairs in the days, months, and years to come. The mobile phone repair business is expected to become one of the big parts of the tech industry, with more and more people opting for repairs, especially as cell phone prices continue to soar.

3. How to start a 7-figure cell phone repair business

Now, I’m going to give you some tips on how to start a seven-figure cell phone repair business.

1) Create a mobile phone repair business plan

You may want to make sure to create one. A business plan gives solidity to the vague ideas that float in your head. It helps ensure your business model works. It can be a formal, highly complex document. Or, it could be a brief outline scrawled on the back of an old envelope.

First figure out who you are writing for. If you’re pitching to investors, include things like ROI and exit strategy. If it is for your own use, you can remove these things.

Here are some of the parts you may need to make sure you are prepared for your cell phone repair business:

• Executive Summary: This is an expanded version of the elevator pitch, listing all the reasons why you should write a business plan. The executive summary is the first thing interested parties see, but it will be the last thing you write. Readers will either get caught up in your ideas and want to read the rest of the plan, or they’ll get bored and won’t read.
• Business Description: This is a brief overview of your cell phone repair business. What makes your business so successful? Describe in extremely precise detail how your company is uniquely positioned to meet the needs of your customers.
• Ownership:  Here’s how you structure your cell phone repair business. If you’re just starting out, you’ll probably be a sole proprietor.
• Management and organization: Who is responsible for the day-to-day operations of the repair business? Write about the experiences of everyone who runs the company, including you, the boss. Interested parties will want to know how each team member fits into the organizational structure.
• Marketing: How do you plan to market your cell phone repair business? Write down your marketing strategy and how it will attract more customers. Whether it’s through word of mouth, social media, or something else, it’s important to plan.

• Market Analysis: Here you can list five similar repair shops and evaluate how they compare to your own repair shop. Critically evaluate your competitors, describe the industry you are in, and provide some information about your target demographic. A great thing to do is make a list of five repair shops similar to yours and how they rank.
• Objectives: How do you know if your repair business is a success? You won’t know this unless you build concrete metrics.
• Target Market: Who is your ideal customer? List all the attributes of customers that you think should be targeted. This is called a customer avatar.
• Financial Forecasting: Here you can formulate goals and translate them into numbers backed by hard data.
• Funding Requests: Include current and future funding requests so investors and lenders know how much debt you may be taking on.
• Financials: This is where you place your financial projections. Often, they’ll want to see past financial data, but since you’ve just started the company, that documentation likely doesn’t exist.

2) Make real-world experiences part of your education

For would-be entrepreneurs, college may not be the best choice. This is because entrepreneurs learn best by actually doing things. To become a top-notch business owner, hone your skills by perfecting them in the real world.

3) Get some equipment and supplies

If you’re starting a cell phone repair business from scratch, you need a few tools. Try not to waste your money on cheap stuff as they will just end up broken. See what repair industry professionals recommend and buy.

As your cell phone repair business grows and you have more money in the bank, you’ll be able to purchase more advanced tools for more advanced repairs. A piece of equipment can cost hundreds of dollars. But if it lets you do phone repairs that many competitors can’t, then it’s an excellent investment. In addition, you should purchase a keyless cabinet lock to keep your used phone from being stolen. For example, fingerprint cabinet locks, electronic cabinet locks, or RFID cabinet locks.

4) Gain the necessary skills

A cell phone repair business does not require a college degree or formal training. Of course, you can go to cell phone repair school or technical college, but it doesn’t have to be. That’s because everything you need to know about cell phone repair can be learned from YouTube videos.

This is how many cell phone repair shop owners start their entrepreneurial ventures. This is a very easy way to get started!

5) Find a location that works for you

When you start a business, you can always run a cell phone repair shop from your home. Joe did just that. He operated it first from his bedroom, then from his parent’s garage. The great thing about working from home is that you don’t have to pay a dime for rent.

Sometimes you may want to have a repair shop separate from where you live. This can happen if your cell phone repair business is too large to operate out of your garage or bedroom. If your cell phone repair business requires door-to-door traffic, make sure you find a place where customers can reach easily. If you’re only in the mail-order business then this won’t be a factor.

6) Build a team of dedicated ninjas

When you’re just starting your cell phone repair business, you’re likely to be a one-person business. However, there may come a day when business is so booming that you have to hire more employees.

If you want your cell phone repair business to soar to the pinnacle of success, partner with people who are passionate about your company’s mission. These guys (and girls) will make it all work. So make sure you’ve given them everything they need to be hugely successful.

7) Fund your business with your profits

As a cell phone repair business only requires a minimal amount of inventory and tools, you only need a small budget to get started.

8) Develop an effective marketing strategy

Try out different marketing strategies for your cell phone repair business and find one that works. Your company can have plenty of tutorials on how to repair iPhones and other cell phones, Xboxes, wireless headsets, and more. Viewers can purchase the parts and tools needed to complete the repair. This organic channel dramatically increases business revenue.

#1. Create a brand image

You need to create a brand identity for your mobile phone repair business that includes a catchy logo and a compelling description of your business. Many business owners believe that only corporate giants like Wal-Mart, Apple, and Coca-Cola need a corporate identity.

This is outdated thinking!

These days, even small businesses can benefit from creating such strong brand recognition that they can impress customers. By making customers aware of what value they will get from your services, you will bring an extra “oomph” to your brand recognition.

For example, it’s visually elegant, and with only two colors, it offers an attractive simplicity that grabs attention without being overwhelming.

9) Start organized and stay that way

You can put something called a “kanban card” in each box of parts. “Kanban”  means “signboard” or “billboard” in Japanese. When more inventory needs to be reordered, you and your staff place those kanban cards exactly where they are in the box. The employee scans the QR code on the card, the supplier receives the order, and more inventory is about to be shipped.

By using a system like this in your cell phone repair business, you will never run out of stock. Never running out of stock means you will always have a steady supply of mobile phone repair parts to ensure your customers’ orders are fulfilled.

10) Learn to delegate

It’s hard to realize that he can’t do it all alone and that he needs a trusty team of dedicated ninjas to help him get it done. If you want your cell phone repair business to be successful, you must also learn how to authorize it. When your business grows to the point where you have an entire team of employees, if you continue to perform tasks that others can handle better, you are setting yourself up for failure.

So trust your team to help you accomplish your mission.

11) Develop a guiding philosophy that permeates all aspects of the maintenance business

Seeing how Paul Aker applies the Lean philosophy may be a life-changing experience for you. Lean creates efficiency while eliminating waste. You can take a concept practiced by many of the world’s top companies and make it easy for the average person on the street to understand.

12) Know the market you serve

We think it’s one of the most important things you can do to make your business successful.

If you focus more on what your customers want than what you want, you will have a profitable cell phone repair business. You need to understand consumers – what they are willing to pay, and how much they are willing to pay for it. Once this number is established, it will be easier to understand what you are worth in the market. This will give you more confidence in your marketing efforts.

13) Always stay one step ahead of the competition

As a cell phone repair business owner, you need to always be looking for ways to beat your competition.

You can develop software that automatically sends shipping labels to customers. Customers can then send their items to the repair center for free from anywhere in the United States. This provides the client with an end-to-end solution, which they may appreciate.

This approach puts your company at the forefront of making the customer experience as easy and enjoyable as possible.

14) Create more revenue streams by adding more services to existing ones

If the only service you provide is repairing phones and keeping them in good working order, you may find yourself hitting your profit ceiling. If this happens, consider branching out from your cell phone repair business to provide other services to your customers. For example, in addition to repairing phones, they also repair Fitbits, speakers, headphones, iPads, and more.

15) Learn from your mentors

From a more strategic standpoint, you should learn from your mentors.

16) Persevere

The first thing you need to do when starting a business is to adjust your mentality so that you are like the T-1000 robot in “Terminator 2”. This is the Terminator prototype sent by Skynet, made of something called a “mimetic poly-alloy”.

This terrifying liquid metal monster pursues Arnold relentlessly despite obstacles. Even when Mr. Schwarzenegger blasts the entity into trillions of nanoparticles with his trusty 1887 Winchester 12-gauge shotgun, the mechanical shapeshifter always manages to put itself back together. You need to have that kind of determination if you want your cell phone repair business to be a huge success.

4. What are the disadvantages of the cell phone repair business?

• Third-Party Restrictions: Many cell phone brands do not allow third-party companies to repair their products. However, Apple allows independent repair shops to service out-of-warranty iPhones if they are staffed by Apple-certified technicians. The only problem is that new phones are not restricted and certification is expensive.
• The location issue: If you work from home, there are a lot of distractions, so you won’t get as much done as you would if you were working in an office. On the other hand, if you work in a dedicated storefront, you will incur mortgage or lease fees.
• Marketing Expenses: Marketing expenses can add up quickly if you’re not careful. Billboard and radio advertising, mass mailings, and Google AdWords can be expensive. If you are creative, you can effectively market your cell phone repair business for very little money, or even start on a small budget.
• Equipment Cost: When you first start repairing phones, you have to buy some basic equipment. While some things are cheap, others can be very expensive.

5. How much money can a mobile phone repair business make?

How much you can make depends on how many phones you can repair and how good your supply chain is. However, many mobile phone repair companies have huge profit margins. When you start a cell phone repair business, you’ll likely see a profit margin of between 80% and 100%!

If you charge an average of $75 per repair and make 15 repairs per week, your total weekly income would be $1,125. With an 80% profit margin, your weekly profit would be $900. Not too shabby!

There are also mobile phone accessories for sale which will further increase your profits. Of course, if you’re as ambitious as Joe, you can scale your business to stratospheric heights. You can make as much money as you want!

6. Is mobile phone repair a good business?

If you provide impeccable service to your customers, assemble a team of employees who care deeply about your company’s mission, and establish good procedures, there’s a good chance your repair business will be successful. Start your cell phone repair business now, and you, too, can scale to unimaginable heights!

7. 10 common mistakes cell phone repair business owners make

• Revenue will increase as profit per repair increases.
• Maximizing profit out of one customer.
• Paying bills, rent, and other expenses.
• A business’s customers are not as important as its other aspects.
• I’ll be driving a Lamborghini within the first year.
• Having already experienced a pandemic, we don’t need to prepare for downtime in the future.
• Making a business plan doesn’t matter.
• The hustle will last forever.
• You don’t need to hire an additional employee for tasks you can do yourself.
• Helping your competition will hinder your success.

8. 12 must-have repair tools for your cell phone repair business

• Nylon Spudger
• Fine Tipped Curved Tweezers
• Screwdriver Kit
• Plastic Triangle Opening Tool
• ProtectionPro Kit
• Precision Knife Set
•  Anti-static Brush
• Suction Cup Pliers
• Magnetic Mat
• Magnifying Glass
• Desk Lamp
• Soldering Iron