So you want to start a smartphone repair business?

If you are tech-savvy and know all about your smartphone, some planning and details will help you start your business in no time. Here , we will explain all you need to get started, follow this simple guide.

Here is how you can start a smartphone repair business.

Plan Your Business

You need to have a solid plan if you want your business to be successful. Contemplating all aspects of your business may reveal issues you can plan for to stop them from becoming a problem. You can also capitalize on available opportunities.

Here is what you should consider while planning your smartphone repair business.

What Costs are Involved?

Costs for your business will be mainly utilities and rent. Hence, a lot depends on where your shop is situated. Some professionals work out of a small kiosk in shopping malls or busy marketplaces. Although this may be a cheap way of running your business initially, you may have to expand to a bigger location once your business takes off.

Alternatively, you can choose to work at home and thus greatly reduce your costs. However, there is a major downside to this method. Since you will be advertising your business online, you may not get a lot of customers. You may be able to get more customers if you are operating in a shopping mall or busy market.

You can decide on your location based on your situation.

Besides rent and utilities, most of your costs will be due to purchasing supplies and parts necessary for repair work. When your business picks up speed, you may have to bear additional costs like advertising or hiring extra staff. But in general, the overheads associated with this business are relatively few.

What is Your Target Market?

Since everyone has a smartphone these days, your target market will comprise of ordinary consumers. You will be dealing with tech-savvy customers who are eager to save money by getting their smartphones repaired. They are keen to prolong the lifespan of their phones so that they don’t have to buy a new one. This can save them money. And you are the one who will make this a reality.

What Fees will You Charge?

The repair fee that you will be charging depends on the kind of smartphone you are working on. The starting price for repairing a broken screen is $75. However, costs may increase to as much as $250.

To induce more people to get their smartphones repaired from you, make sure that you are offering them the most competitive rates that are far below the costs of buying a new phone.

How Can You Expand Profits?

If you learn smartphone repairs, then you may be able to repair other kinds of electronic gadgets. You may want to start repairing music systems and gaming consoles.

You may also think of providing phone and data plans to your customers.

In short, there are plenty of areas that you can expand into once your business starts growing.

Choose Your Business Structure

There are various business structures that you can opt for like corporation, limited liability company, partnership and sole proprietorship.

The advantage of getting registered as a limited liability company or corporation is that you will held personally liable if there is a lawsuit against your business.

Tax Registration

You should register for federal as well as state taxes before you can operate your business.

You will have to apply for an Employer Identification Number or an EIN. To get one, you can visit the IRS website and follow the simple steps described.

Business Taxes

The tax that you will be subjected will depend on the business structure that you have chosen. You might choose to make your LLC an S corporation for the purpose of tax benefits. However, you should consult with a tax expert to find out which business structure will be best for minimizing taxes.

You should visit your state website to find out what state taxes you will be subjected to.

Open a Business Bank Account and Credit Card

To protect your personal assets, you will need to get a business bank and credit account.

If your business and personal accounts are not separate, then you risk losing your personal assets in case there is a lawsuit against your business.

You can get business credit cards to obtain financing options in the name of your business rather than your own personal name.

Set Up an Accounting System

Even if you are not maintaining accounts, you should track your daily costs so that filing taxes is easier. You will also be able to find how much profits you are making. So keep accurate records for tax filing and determining financial performance.

Get Required Licenses and Permits

If you don’t get necessary licenses and permits, then you may end up paying hefty fines. Your business could even be shut down.

So you should visit your state website to find out what licenses and permits are required for operating a smartphone repair business.

You will have to obtain a certificate of occupancy or a CO. This is proof that you have complied with building codes and zoning rules.

Buy Business Insurance

You need business insurance to operate lawfully and safely. If the loss that your business suffered is covered by your insurance policy, then you will receive benefits within specified limits.

Bottom Line

If you are asking how to start a smartphone repair business, then you can follow the guide above.

Moreover, you should contact a lawyer or attorney to ensure full legal compliance and tax benefits.