Business profiles are really important to consider before someone actually plans to enter into it. A lot of entrepreneurs fail to do so, complaining about the industry as a whole at times of unfavourable conditions. Coming to this business, there is absolutely no newness that exists in it.
Mobile repair business has been there in the market for a very long time. The business attracts mainly the low income and average income groups. Here is where you get customers with a mentality to fix the faulty phone instead of replacing it with a new one.
Today’s business world being highly sensitive to changes has never left the service sector vanish. There has always been a constant figure of demand for services, especially in India’s technological side. Growth and entry of new technologically superior mobile phones have never paused, but mobile repair service has been holding a firm position in the market. Various reasons stand for this wonder.
One of the main reasons is the income level of the public. India is a developing country that still has a number of social segments striving to develop. In such a case, there is zero possibility that all the 100% population can afford to buy a new phone in case of malfunctioning.
With this reason in mind I strongly make a statement that mobile phone repair business will never let an entrepreneur at loss.
Learning phase
Not everybody can simply become a phone repair specialist with experience. Ofcourse practice can make anybody become a technical worker, but when there comes new models and features the situation becomes hard. To put it into simpler form, one needs technical knowledge or say coaching from scratch to become a phone repair specialist. There are a number of institutions offering training in this field. Most of them come with placement assistance as well. Course fee range from 5000 INR to 20000 INR depending on the institution offering it.
Highly charged training sessions may provide the repair tool kit to the trainees for free of cost. Placement cells may direct the trainees to mobile companies where they use these trainees at the quality check stage. For people planning to start their own repair shop, I would suggest them to work on interiors of the shop. Sounds ridiculous, but true. A lot of people think that small shops may not be able to provide the appropriate service.
Also, luxury models mobile phones are never sent to small shops for repair. Having all these in mind, there comes a need for a better supported and well maintained shop. Customised learning has also come to existence nowadays. An entrepreneur can equip himself with the newly growing technology as and when required.
Customisation of course allows the entrepreneur to skip the learned topics. Once the course terminates, trainees get a certificate that stands as a proof to carry out their business.
Market research
Since the business falls under technological industry, there is a compulsion for all the mobile repair specialists to keep themselves engaged with industry related news. Starting from charges to fix till the tools to use, constant follow up is needed. Having an eye on competitors is inevitable from my opinion.
As an entrepreneur you have to notice them where failing to do so will leave you behind. This is purely not an initiative to replicate their business, but to be cautious of what is happening around. Make your business unique. Study the atmosphere of your competitor’s shop and find the missing element to add it to your business.
Tools play the game here. No matter how good your service is, people of the current era are keen to know the condition of the tools you use. It is simply the urge to get the mobile phone serviced in a better place. With this, make sure to follow up the entry of new tools in the market.
Select location for outlet
For those who think location is not a factor to even consider before starting a business, entrepreneurship is not the right place for you. Every single move of the business has a little at least to do with the location. Be it sourcing, recruitment, expenses, etc., location plays a very important role.
For a business that deals with repairs and defects, the location to chose should have cleared the accessibility criterion. People will not even think of moving miles to get the phone serviced. First of all, inaccessibility will vanish the thought of servicing the mobile itself. It is an action you induce to leave the intention of getting the phone serviced. Thus, find a place that is profound in the market.
Also, a place where the surrounding binds in a number of technology oriented businesses. For example, Richy street in Chennai is a place known for mobiles and repair shops. This identity will omit the need for marketing as people are already aware of the area. But will they visit your shop without marketing? The answer is yes. Choosing your shop out of all lies in the way you provide the service.
Hiring staff
You are given with two options after completing the course, one to work for a company and the other to start your own shop. In the first case, train yourself with the best methods and procedures in order to climb the hierarchy in the company you work for. In the second, pick the right staff. It is a total waste of time and money to hire people with less knowledge in the field.
Bring in people with extraordinary talent to witness furtherance in your business. That is when you will see customers pooling in for the best service you provide. Now coming to selection of these expert staff, the process is to be keenly monitored. Check their certificates and projects. Evaluate their speed of service because that’s what is more important in a service based business.
Get complete details of their previous experience to know where to place them. Get the right number as well. Imagine a condition where you have more number of repair orders and less experts. It can break your sustainability in the market. Also, watch for people who are trustworthy. You are dealing with mobile parts and there are high chances that your staff may rob and sell them for money.
Licenses
Undoubtedly, there lies a mandatory rule for every business to obtain a license. Get your business registered at the official website of India’s business registrations. This will legalise the business restricting external forces that may cause hindrances in the future. Shop establishment Act is one another legal formality to look into. Get the shop licensed from the authorised municipality. The process might take a week to 3 months depending on the verification of your documents. Have the documents ready with all the necessary details like shop’s bank account, name of the shop, type of ownership, etc,.
Type of mobile phone services
Specialising in a particular brand of mobile will obtain trust from the customers. This is a reflex action from most of the customers that they believe to get the best service if the shop deals with one brand. And now it is your choice to generalise or to specialise the business. Both the options come with their own pros and cons.
Generalised brands
Pros
- Higher frequency of customers
- Experience with all the brands
Cons
- Less trustworthy
- Multiple tool kits
- Poor image in the market
Specialised brands
Pros
- Trustworthy
- Royalty from brands
- Better outlook
Cons
- Lesser frequency of customers
- One brand service experience
Investment required in cell phone repair business
Investment totally depends on the factors of production such as location, labour, electricity, tools etc . On an average a medium sized repair shop would demand an investment of 2 lakh INR with least facilities. Here, you are to plan your investment wisely since the number of incoming customers for this business is quite less. Make sure you use 70% of the money in the interior or infrastructure of your shop. Like I mentioned before, get your business different in the market.
A very small part of your total investment may be put for marketing. Not many repair shops focus on marketing as the whole concept of business is different here. Make use of the money to make an organic investment something that starts slow but is worthy.
For example bring in facilities of door step pick up and delivery of mobiles for service. You may build a really good reputation with this facility. Also, the ease of getting the mobile serviced will get you more customers.
Profit margins
Like I mentioned before, majority of your customers will be from a low income background. There is absolutely no point in charging them a higher amount if they feel the amount can be used to buy a new mobile itself. This does not mean that charges should be less and you should be at loss. Provide your customers a reasonable tariff. You can probably check your competitor’s prices in case you have a confused decision of the charges to fix.
Coming to profits, you get all of it. A service based business skips the production expense or product cost. It is as simple as that. Profits may range from 60-80% depending on the way your operate. The number of staff you have, their salary, shop maintenance etc,. will show your profit margin.
Equipment
To provide your repair service, equipment is inevitable. I restate it, good quality equipment is the core element of your business. While you had your training session, there must have been times of you having bitter experiences with your tools and equipment.
Note them down and correct it here in your own shop. Find what went wrong while choosing the tools. Get the latest model to expedite your work simultaneously building the best reputation for your shop. Timely delivery is possible only when there exists a complementing set of tools. Storing them in appropriate storages will only take your business without loss. Know how to place them in the right order and classification to escape damages and search time.
Tools required
- Soldering iron
- Soldering station
- PCB holder
- Solder wire
- Multimeter
- Antistatic Mat
- Magnifying lamp
- Hot air blower
- Precision screwdriver
- Tweezer
- DC power supply
- Battery booster
- Battery tester
- LCD tester
- BGA Kit
Conclusion
With so much to do with technology today and in the future, this business will surely have a stand without any fall. It is a business that holds much importance for satisfaction. Only satisfied customers can allow your business to flourish forever. Initial stages of the business may not be appreciable but once you earn the name, you are the boss for the market. In a country like India, people visit stores through word of mouth marketing.
When you provide a high class service at a lower cost, people are automatically driven to your shop. Lastly, take the advice of your trainer. Keep in touch with them so that you clear your doubts if any. Also don’t forget to keep learning. Learn about new changes and methods to get mobiles repaired. Bring in additional services like recharge facilities and mobile accessories.
Start a customer database to maintain the record of your customers and to intimate them about new services and offers. Find best sources for spare parts so that there is no issue with the working of the phone again.
