Tuesday, September 22, 2020

Starting an Electronic Repair Service – Profitable Business Plan

Electronic gadgets are an important part of our lives and these gadgets require maintenance from time to time. So as a matter of fact there is a huge market for electronic repair business. If you want to start a rewarding business, an electronic repairing business is a great idea for you.

To start this business all you need is just a shop at a good location, equipment, and skilled labor. You require technical skills to repair electronic gadgets such as phone, microwave, computer, and television, other medical and scientific equipment.

You can start a small shop and if you are creative and consistent it does not take much time to be recognised and successful. The US has 12,000 repair business establishments which generate about $18 billion. If you are thinking of starting an electronic repair business in the US it has highly possible that your business will emerge as successful in no time.

Read more: How to Write a Business Plan – Step-by-Step Guide

Market research phase

The best thing about this kind of technical service business is that you can learn from those who are already successful in the same field

To be more efficient in your work you can work on the area in which you want to specialise. You can choose from different business ideas before you launch your electronic repair business plan. You can be specialised in any of them for example:

  • Household repairs (TV and VCR, Home theatre, Radio, and other electronics)
  • Computer and office machine repairs
  • Electronic equipment repairs for medical and other surgical instruments.

Challenges

When you decide to start your business, you will have to face several challenges. There may be other businesses that are offering similar services as you are, you should be ready to compete with them. Make sure the service you provide is satisfactory for your consumer so that you can keep up with them always.

There can be other challenges like government policies which might not be favourable for you always. In the time of an economic crisis, your business will have a positive raise because people will choose to repair their electronic devices rather than purchasing the new ones. There is nothing you can do regarding the challenges but stay positive with the fact that things will go in your favour and try to push ahead.

Competition

If you choose to start your electronic repair business, the competition will be high as there may be many electronic repair businesses in your locality. No matter what the level of competition you have in the industry, you can always be successful by the sound service you provide to your customers. The service you provide is what will attract your targeted market. There may also be the large industries that are doing the same business but you should hold your guard.

 Is there a requirement of a professional certificate to run an electronic repair business?

You do not require a mandatory professional certificate to run an electronic repair business. Many successful electronic repair businesses are running without a professional certificate.

However, having a professional certificate or degree might be a plus point at times and also might give you a better insight into the thing you do. Obtaining a professional service in the industry with the certificate will make your business stand out. This may help customers to choose you over your competition. You can obtain some of the following certificates:

  • Degree in electrical engineering
  • Diploma in electrical engineering
  • Professional certificate of competency in electronic devices 
  • Technician certification

Name your electronic repair business

When it comes to naming your business, you should be creative. Any business with a catchy name will attract people quickly. The name will also create a perception for the people about the business. Make sure you choose one from those catchy names.

Legal requirements and certificate

You will require legal documents before starting any business. You cannot run any successful business without proper documentation. 

These are the legal documents you will require if you want to run your electronic repair business:

  • Business license
  • Certificate of incorporation
  • Memorandum of association
  • Tax identification number
  • Employee identification number
  • Insurance policy
  • Chemical handler certificate
  • Trademark license

Get fund

Any business setup requires enough funds to start. If you are planning to start your business with your own money, make sure you have sufficient money to start and operate your business plan. Starting an electronic repair business is not necessarily expensive. You will need the space of your office, equipment, and tools, hiring skilled full-time employees, and other small expenses.

If you are willing to start your business on a standard and large scale, you will require more funds. You can raise funds from various sources for your business. If your business idea is very convincing, banks, financial agencies other investors would be interested in investing their money in your idea. You can choose from various sources of funding for your electronic repair business.

Read more: How to raise fund for your business?

Choose accessible location your shop

Before you select a location for your business, make sure you gather complete information about it and ensure that the location is accessible to your targeted market. You can choose your own space to set up the business, if your place is not accessible for your target market, you can choose any location and take a space for lease or rent. You need to consider a few things such as the number of electronic repair shops in your location, the demography of your location, demand for your business, the law, and regulations imposed on your locality.

Recognize your target market

When you start a business, you need to understand your target market. Your customers will generally be well aware and know their requirements. They will be able to judge right and wrong and make sure that they get the best services from you. Understand the target market and what exactly their demands could be.

Appropriate pricing for your service

The pricing policy is a key factor for the success of your business. You can fix the price for a certain service. You can also charge hourly payments from your customer. Sometimes an hourly payment can be the most logical way of charging for your service. If that does not work as a feasible and much rewarding policy you can charge them according to the service or you can charge a fixed price.

It is very important to understand how your business can help you to earn more. If you provide quality service at affordable prices you can earn more customers for your business and they can suggest other people to choose your service, it will reward you with more and bring new customers to your business.

Find the right equipment

You must invest your money to procure all types of equipment you require. When you purchase the equipment, make sure you find one with the best quality which you can use it for the longer term, so that you don’t have to invest your money again on that equipment.

Most of the small electronic repair business also includes up-selling. This means you can sell additional services to your customers or you can sell accessories to the small businesses that are doing similar repair services. Many small repair businesses prefer to buy low-cost items that you can provide to them.

Get the insurance

There are many countries like the US where you cannot run your business without some basic insurance policies. You can take suggestions from insurance policy agents to choose the best one for your electronic repair business. You can create general insurance, health/ medical insurance (if you have the employees), liability insurance, and others.

Technical and manpower details you require to start an electrical repair business 

You do not require high technologies to run an electronic repair business. You will need some technical tools and instruments. You will also need to have a computer and access to the internet and some furniture for your office. To be on the safer side you may buy the equipment or lease it. You can also rent out certain equipment to other small businesses for a stipulated period for added income.

You need to hire people who are skilled and have access to the repair equipment. If you are planning to start your business on a large scale, you have to appoint a human resource manager to hire people for your business. Even if you are planning to run a small and specialised electronic repair business, you will require more than 5 staffs including human resource managers, technicians, supervisors, sales, and marketing managers.

How to increase client retention

Client retention or customer retention is most important for the success of your business. If your customer is satisfied with your service, they will choose you over your competitors. You need to be sure that you render good service to your customer always on time. Improving the quality of your service will not only retain old customers but will also attract new customers.

You can provide add-on services to your customers to retain them. To keep in touch with your customer, you need to purchase the CRM (Customer Relationship Management) software. With the help of customised CRM software, you can have quick surveys with your customers. You can give them an offer on their birthdays, anniversaries. You can receive compliments or any feedback from your customers. 

How to boost your electronic repair shop brand corporate identity

If you are willing to scale up your business then you should be ready to spend money. No matter what kind of business you are in, you will need a boosting and promotion to get it recognised. You have to advertise and promote your business to keep appealing to your target market. Here are some platforms to promote your business:

  • Place an advertisement on print media (newspapers and magazines) and electronic media.
  • You can list your electronic repair business in local directories.
  • Install billboards around your city and state.
  • Distribute handbills in the target places.
  • You can make your staff member wear the shirts with the brand name of your business and the vehicle of your business can have your business logo.

Marketing plans and strategies for the success of your business 

  • You have to agree with the fact that behind every successful business, there will be perfect marketing strategies that make it what it is. These are some marketing ideas which can make your business successful:
  • You can create a business brochure for commercial and residential users of electronic gadgets and devices.
  • Promote your business with the help of business websites; advertise your business on your social media like Twitter, Facebook, and others, so that people who are also on social media will find your business if they need any services repairs with their electronic devices and gadgets.
  • You also create your website for your business which will create an online presence for your business.
  • Advertise your business on TV, Radio stations, newspapers, and other media.
  • You can use the idea of using word of mouth for the promotion.

Read more: Effective Marketing Strategy for Startups

Conclusion

All this said and done, you are ready to set up your electronic repair business and compete with your peers. You would require some skill, a skilled team, good equipment and you need to up-skill yourself every time with the new age technology and the evolving trends of technology so that you can stay afloat and make a mark in the electronic repair business where people can look up to you for the various issues of electronic gadgets.

You need not invest a hefty amount to set up the electronic repair business and start making huge profits in no time if you can market your business right.

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