You have found the perfect business idea, and now you are ready to take the next step. There is more to starting a business than just registering it with the state. We have put together this simple guide to starting your electronics repair business. These steps will ensure that your new business is well planned out, registered properly, and legally compliant. When it comes to starting a business, there are loads of factors that are expected to come into play before going ahead to invest in any business.
Amongst the factors to be considered before starting a new
business is the population of the city or town you intend to start the business
from, the level of competition you are likely going to face, and of course the
availability of market for your services or products. Opening an electronics
repair shop is another money-spinning business that an aspiring entrepreneur
who is looking towards starting a business in the united states of America should
consider.
One good thing about this type of business is that you can
learn technical skills from someone who is already in the business or from
a technical school. All you need to do is to rent a shop in a good location,
set up the shop, and advertise your electronics repair business. If you are
lucky to be one of few electronic repair technicians in your community, you
will surely make good money from this type of business.
Almost every home and office have one form of electronic
gadget or the other and over time, these gadgets will require maintenance,
servicing, and repair. This goes to show that there is indeed a large market for
electronic repair shops. All you need to do to get started with this type of
business is to learn the technical skills required to service, maintain and
repair electronic gadgets.
This is undeniably a very lucrative and profitable venture
if it is well-positioned and you know how to deliver excellent jobs. The amount
you can make per day is largely dependent on your ability to market your
services to both commercial and residential users of electronic gadgets.
If you have the desire to start your own electronic repair
shop, all you need to do is read this article and you will be well informed and
equipped. You can start your electronic repair shop from a small town in
the United States and if you are consistent and creative, it won’t be long
before your brand becomes a nationally recognized brand especially if you go
into franchising.
19 Steps to Starting an Electronic Repair Shop Business
1. Understand the Industry
The Electronic and Computer Repair Services industry is made
up of companies that are engaged in repairing and maintaining one or more of
the following: consumer electronic equipment, computers, office machines,
communication equipment and other electronic and precision equipment.
Establishments in this industry repair items including
microscopes, radar and sonar equipment, televisions, stereos, video recorders,
computers, photocopying machines, communications equipment, scientific
instruments and medical equipment.
If you are in the United States, you will agree that the
Electronic and Computer Repair Services industry is indeed looking for ways to
improvise and increase revenue generation. As a matter of fact, with increasing
affordability of electronics and computers, consumers and businesses will
rather purchase new products as against repairing their faulty equipment, hence
leading to a drop in demand and revenue for the industry.
Additionally, electronic users typically have opted to
purchase more advanced products and scrap damaged or outdated goods. In recent
time, the life cycle of electronic goods and computers has shortened, and the
introduction of new technology has provided further incentive for consumers and
businesses to replace their old equipment.
The Electronic and Computer Repair Services industry is
indeed a very large industry and pretty much thriving in all parts of the
world. As a matter of fact, there are no companies with a leading market share
in the industry. Statistics has it that in the United States of America alone,
there are about 57,629 licensed and registered electronic and computer repair
services related businesses responsible for employing about 141,369 employees
and the industry rakes in a whooping sum of $19bn annually with an annual
growth rate projected at 0.4 percent within 2012 and 2017.
A recent report published by IBISWorld shows that the
geographic distribution of industry establishments closely mirrors the
geographic distribution of the US population. Most industry players are
small-scale, labor-intensive operations, and therefore, they cater to their
local markets. The report further stated that the Southeast region accounts for
the largest share of the US population at 25.6 percent and 27.8 percent of
total establishments.
Florida accounts for a significant share of both population
and industry presence in the region. The report also shows that the West holds
a large share of industry establishments (16.8 percent) and US population (17.2
percent). The largest state in terms of establishments is California, which
captures 11.9 percent.
One factor that encourages entrepreneurs to start their own
electronic and computer repair services business is because people and
businesses who can’t afford to purchase new electronics when theirs is faulty
would always employ the services of electronic and computer repair services
companies and it will be safe to state that for now, the business is a
profitable business. It requires minimal startup capital and minimal manpower
to launch and operate the business.
Over and above, the electronic and computer repair services
businesses and related businesses all over the world are still enjoying good
patronage particularly if they are well positioned and if they know how to
reach out to their target market.
2. Conduct Market Research and Feasibility Studies
- Demographics
and Psychographics
The demographic and psychographic composition of those who
hire the services of electronic and computer repair companies cut across all
households, hospitals, offices, hotels and any facility that makes use of
electronic devices and has the capacity to pay for their services.
3. Decide Which Niche to Concentrate On
In order to be effective in the electronic repair services
industry, it is advisable that you choose a niche area. Choosing a niche area
in this industry will make you concentrate your efforts towards building a
brand that can favorably compete with similar businesses not just in your
location, but throughout the United States of America.
Here are some of the niche ideas in the electronic and
computer repair services industry that an aspiring entrepreneur can choose from
if you want to launch your own business;
- Consumer
electronics (including home theaters, DVD, radio, TV and VCR) repairs
- Computer
and office machine repairs
- Communications
equipment repairs
- Other
electronic equipment repairs such as providing repair and maintenance for
dental equipment, providing repair and maintenance for medical and
surgical equipment and providing repair and maintenance for optical
instruments
The Level of Competition in the Industry
The competition that exists in the electronic repair
services industry goes beyond competition amongst electronic and computer
repair services businesses in your location; you are expected to compete with
others manufacturers of these gadgets who also offer repair and maintenance
services. So, it will be right to say the competition in the electronic and
computer repair services industry is tough.
The truth is that no matter the level of competition in an
industry, if you have done your due diligence and you brand and promote your
services or business properly, you will always make headway in the industry.
Just ensure your workforce can carry out thorough repair and maintenance
services, you can deliver excellent customer care services and you know how to attract
and reach out to your target market.
But over and above, there are several electronic and
computer repair services companies scattered all around the United States. So,
if you choose to start your own electronic and computer repair services company
in the United States of America, you will definitely meet stiffer competitions
amongst them. Besides, there are larger electronic and computer repair services
companies that determine the trends in the industry and you should be ready to
compete with them for customers.
4. Know Your Major Competitors in the Industry
It is a norm that in every industry, there are always brands
that perform better or are better regarded by customers and the general public
than others. Some of these brands are those that have been in the industry for
a long time, while others are best known for how they conduct their businesses
and the results they have achieved over the years.
These are some of the leading electronic and computer repair
services companies in the United States of America and in the globe;
- MyTech
USA – Hampton
- Netlink
USA LLC
- Phonetech
USA
- Itema
America Inc
- Smart
Electronics USA
- PC
Zone USA
- Circuit
Central USA, LLC
- iRepair
USA
- Global
Electronics USA
- Sears
Appliance Repair
- EZ Fix
USA
- Techmaster
Electronics Inc.
- Imtech
Marine USA
- Electronic
Express, Inc.
- Samsung
Electronics America
- Industrial
Electronics LLC
- Godar
Electronics
- Mid
America Electronics & Appliance Service
- Dalbani
Corporation Of America
- Bizcom
Electronics Inc
Economic Analysis
If you are preparing to effectively launch a business and
maximizing profits, then you need to ensure that you get your economic and cost
analysis right and try as much as possible to adopt best practices in the
industry you choose to build a business in.
Electronic and computer repair services business is not a
Green business as you will come across several electronic and computer repair
services companies and shops when you drive through town, search through
directories and browse through the internet.
So, if you are mapping out your economic and cost analysis,
you should carry out thorough market survey and costing of the amount required
to rent a space where you are expected to open your business and the amount
required to purchase the needed work tools and equipment and also the running
cost to successfully run the business.
Over and above, if you are considering starting an
electronic and computer repair services company, then your concern should not
be limited to the expenditure you have to make as regards registering the
business and purchasing your working tools, but also on branding and on how to
build a robust clientele base. The truth is that if you are able to build a
robust clientele base, you are sure going to maximize profits in the business.
5. Decide Whether to Buy a Franchise or Start from
Scratch
If you are looking in the direction of opening an electronic
and computer repair services business, it is advisable to start from the
scratch despite the fact that there are a few electronic and computer repair
services companies who are into franchising out there.
6. Know the Possible Threats and Challenges You Will Face
If you decide to start your own electronic and computer
repair services company today, one of the major challenges you are likely going
to face is the presence of well – established electronic and computer repair
services companies and manufacturers who also offer maintenance and repairs
within your business location. The only way to avoid this challenge is to
create your own market.
Some other challenges and threats that you are likely going
to face is the decision to replace equipment by electronics owners in the
United States of America. Economic downturn is a positive for this type of
business because people will rather repair their electronics as against
purchasing new ones during recession. unfavorable government
policies can also hamper the growth of your business. There is nothing
you can do as regards these threats and challenges other than to stay positive
that things will work well for you.
7. Choose the Most Suitable Legal Entity (LLC, C Corp, S
Corp)
When considering starting an electronic and computer repair
services company, the legal entity you choose will go a long way to determine
how big the business can grow.
You can either choose a general partnership, limited
liability Company, or even a sole proprietorship for an electronic and computer
repair services company. Ordinarily, sole proprietorship should have been the
ideal business structure for a small scale electronic and computer repair services
business especially if you are just starting out with moderate startup capital
in a small neighborhood and with just one shop outlet.
But if your intention is to grow the business and have
offices and corporate clients all across key cities in the United States of
America and other countries of the world via franchising, then choosing sole
proprietor is not an option for you. Limited Liability Company, LLC or even
general partnership will cut it for you.
Setting up an LLC protects you from personal liability. If
anything goes wrong in the business, it is only the money that you invested
into the limited liability company that will be at risk. Limited liability
companies are simpler and more flexible to operate and you don’t need a board
of directors, shareholder meetings and other managerial formalities.
These are some of the factors you should consider before
choosing a legal entity for your electronic and computer repair services
business; limitation of personal liability, ease of transferability, admission
of new owners, investors’ expectation and of course taxes.
If you take your time to critically study the various legal
entities to use for your electronic and computer repair services business with
the ability to sell franchise and having outlets and corporate clients all
across the United States of America, you will agree that Limited Liability
Company is most suitable. You can start this type of business as limited
liability company (LLC) and in future convert it to a ‘C’ corporation or a ‘S’
corporations especially if you have the plans of going public.
Upgrading to a ‘C’ corporation or ‘S’ corporation will give
you the opportunity to grow your electronic and computer repair services
company so as to compete with major players in the industry; you will be able
to generate capital from venture capital firms, you will enjoy separate tax
structure, and you can easily transfer ownership of the company.
8. Choose a Catchy Business Name
When it comes to choosing a name for your business, you should be creative
because whatever name you choose for your business will go a long way to create
a perception of what the business represents. Usually it is the norm for people
to follow the trend in the industry they intend operating from when naming
their business.
If you are considering starting your own electronic and
computer repair services business, here are some catchy names that you can
choose from;
- Trans
– Tech® Electronic and Computer Repair Company, LLC
- Electronics
Knits® Electronic and Computer Repair Company, LLC
- Jason
Wycliffe and Sons© Electronic Repair Company, Inc.
- Gadget
Master® Electronic and Computer Repair Company, Inc.
- Radisson
Tech™ Electronic and Computer Repair Company, Inc.
- Relizon
Electronics and More™ Electronic and Computer Repair Company, Inc.
- O’Leary
Electricals© Electronic and Computer Repair Company, Inc.
- Jerry
Madison® Electronic Repair Shop
- Rite
Tools© Electronic Repair Shop
- © HVAC
Services, Inc.
9. Discuss with an Agent to Know the Best Insurance
Policies for You
In the United States and in most countries of the world, you
can’t operate a business without having some of the basic insurance policy
covers that are required by the industry you want to operate from. So, it is
important to create a budget for insurance and perhaps consult an insurance
broker to guide you in choosing the best and most appropriate insurance
policies for your electronic and computer repair business.
Here are some of the basic insurance covers that you should
consider purchasing if you want to start your own electronic and computer
repair company in the United States of America;
- General
insurance
- Health/Medical
insurance (if you have workers)
- Liability
insurance
- Workers
Compensation
- Overhead
expense disability insurance
- Business
owner’s policy group insurance
10. Protect your Intellectual Property With Trademark,
Copyrights, Patents
If you are considering starting your own electronic and
computer Repair Company, usually you may not have any need to file for
intellectual property protection/trademark. This is because the nature of the
business makes it possible for you to successfully run it without having any
cause to challenge anybody in court for illegally making use of your company’s
intellectual properties.
11. Get the Necessary Professional Certification
Apart from the results you produce as it relates to
providing professional electronic and computer repair services, professional
certification is one of the main reasons why some electronic and computer
repair companies stand out. If you want to make an impact in the electronic and
computer repair services industry, you should work towards acquiring all the
needed certifications in your area of specialization.
Certification validates your competency and shows that you
are highly skilled, committed to your career and up-to-date in the competitive
market. These are some of the certifications you can work towards achieving if
you want to run your own electronic and computer repair company;
- Technician,
Commercial Refrigeration, Contractor, and NATE Certification
- Professional
Certificate of Competency in Electronic Devices
- Degree
or Diploma in Electrical Electronic Engineering
Please note that you can successfully run an electronic and
computer repair company in the United States and in most countries of the world
without necessarily acquiring professional certifications and business license
as long as you have acquired the required technical training and you can carry
out repair works on electronic gadgets.
12. Get the Necessary Legal Documents You Need to Operate
The essence of having the necessary documentation in place
before launching a business in the United States of America cannot be
overemphasized. It is a fact that you cannot successfully run any business in
the United States without the proper documentations. If you do, it won’t be too
long before the long hand of the law catches up with you.
These are some of the basic legal documents that you are
expected to have in place if you want to legally run your own electronic and
computer repair business in the United States of America;
- Certificate
of Incorporation
- Business
License
- Tax
Payer’s ID / Tax Identification Number
- Chemical
handlers certificate
- Health
inspection Certificate
- Business
Plan
- Non-disclosure
Agreement
- Employee
Handbook
- Employment
Agreement (offer letters)
- Operating Agreement
for LLCs
- Insurance
Policy
- Online
Terms of Use (if you have a website)
- Online
Privacy Policy Document (for online payment portal)
- Company
Bylaws
- Memorandum
of Understanding (MoU)
- Building
License
- Franchise
or Trademark License (optional)
13. Raise the Needed Startup Capital
When it comes to starting an electronic and computer repair
business, you can be rest assured that it is cost effective especially if you
choose to start on a small scale by running the business from your home or
sharing an office space. Securing a standard office space in a business
district and purchasing work tools and equipment are part of what will consume
a large chunk of your startup capital.
If you choose to start the business on a large scale, you
would need to go source for fund to finance the business because it is
expensive to start a standard large scale electronic and computer repair
business in a standard facility and with over a handful of full-time employees.
When it comes to financing a business, one of the first
things you should consider is to write a good business plan. If you have a good and workable
business plan document in place, you may not have to labor yourself before
convincing your bank, investors, and your friends to invest in your business.
Here are some of the options you can explore when sourcing
for startup capital for your electronic and computer repair business;
- Raising
money from personal savings and sale of personal stocks and properties
- Raising
money from investors and business partners
- Applying
for Loan from your Bank
- Source
for soft loans from your family members and your friends
14. Choose a Suitable Location for your Business
You may want to consider starting your electronic and
computer repair from home. The location you chose to open your electronic and
computer repair shop or company is key to the success of the business, hence
entrepreneurs are willing to rent or lease a facility in a visible location; a
location where the demography consists of people and businesses who own
electronic gadgets and with the require purchasing power.
Most importantly, before choosing a location for your electronic and computer repair
business, ensure that you first conduct a thorough feasibility studies and
market survey. The possibility of you coming across similar business that just
closed shop in the location you want to open yours can’t be ruled out. This is
why it being very important to gather as much facts and figures before choosing
a location to set up your own electronic and computer repair company.
These are some of the key factors that you should consider
before choosing a location for your electronic and computer Repair Company;
- The
demography of the location
- The
demand for electronic and computer repair services in the location
- The
purchasing power of households, businesses and corporate organizations in
the location who owns electronic and computer gadgets
- Accessibility
of the location
- The
number of electronic and computer repair shops in the location
- The
local laws and regulations in the community
- Traffic,
parking and security
15. Hire Employees for your Technical and Manpower Needs
On the average, there are no special technologies needed to
run an electronic and computer repair company except for working tools and
equipment. But you will definitely need computers, internet facility,
telephone, fax machine and office furniture (chairs, tables, and shelves)
amongst others and all these can be gotten as fairly used.
As regards leasing or outright purchase of a shop facility,
the choice is dependent on your financial standing, but the truth is that to be
on the safe side, it is advisable to start off with a short term rent/lease
while test running the business in the location. If things work out as planned,
then you go on a long term lease or outright purchase of the property but if
not, then move on and source for other ideal location for such business.
When it comes to hiring employees for a standard electronic
and computer repair company with plans to have corporate clients all across
major cities in the United States of America, you should make plans to hire a
competent Chief Executive Officer (you can occupy this role), Admin and Human
Resources Manager, Supervisors, Technicians, Sales and Marketing Officer,
Accounting Clerk, and Cleaners. On the average, you will need a minimum of 5 to
10 key staff members to run a small scale but standard electronic and computer
Repair Company.
The Service Delivery Process of the Business
The operation process as it relates to electronic and computer
repair business depends largely on their area of operation and their
organization structure.
Usually, customers bring in their electronics or computer
for repairs to a repair shop and they are billed with respect to the nature of
repair works to be carried out and the components to be replaced. If it is a
well – established electronic Repair Company, when they get a contract from a
client, it could be to service, repair or install an electronic gadget. They
will first conduct cost analysis to know the nature of the repair work to be
carried out and the spare parts to be used before submitting their quotation.
Once they conclude their analysis, then they will deploy the
required manpower and equipment to execute the job and then they will get paid
after successfully carrying out the job.
It is important to state that an electronic and computer
repair company may decide to improvise or adopt any business process and
structure that will guarantee them efficiency and flexibility; the above stated
electronic and computer repair business process is not cast on stone.
16. Write a Marketing Plan Packed with ideas &
Strategies
You will agree that running a business requires that you
should be proactive when it comes to marketing your goods or services. If you
choose to launch an electronic and computer repair business, then you must go
all out to employ strategies that will help you attract customers or else you
will likely struggle with the business because there are well-known brands that
determine the market direction for the industry.
These are some of the marketing ideas and strategies that
you can adopt for your electronic and computer repair business;
- Introduce
your electronic and computer repair company by sending introductory
letters alongside your brochure to commercial and residential users of
electronic gadgets and computer systems and other key stake holders
throughout the city where your company is located
- Advertise
on the internet and social media like Twitter, Facebook, LinkedIn to get
your message across, so that those on the social media or those who read
blogs will know who to call when they need to repair their electronics or
computers within your location
- Create
a basic website for your business so as to give your business an online
presence
- Directly
market your services
- Engage
in roadshows in targeted business communities from time to time to promote
your electronic and computer repair business
- Join
local electronic and computer repair business owners’ associations for
industry trends and tips
- Join
local chambers of commerce and industry with the aim of marketing your
services
- Advertise
your business in community based newspapers, local TV and radio stations
- List
your business on yellow pages ads (local directories)
- Encourage
the use of Word of mouth marketing (referrals)
17. Work Out a Reasonable Pricing for your Services &
Products
One key factor that will help you offer your electronic and
computer repair services at rock bottom prices is to purchase your spare parts
and other supplies directly from wholesalers and importers in pretty large
quantities. The truth is the higher the quantity of items that you purchase
directly from importers and wholesalers, the cheaper you tend to get them.
Another strategy that will help you offer your electronic
and computer repair services at the right price is to ensure that you cut
operational cost to the barest minimum and channel your efforts towards
marketing and promoting your brand name. Aside from the fact that this strategy
will help you save cost, it will also help you get the right pricing for your
products.
You can also try as much as possible to work with
independent contractors and marketers; it will help you save cost for paying
sales and marketing executives.
18. Brainstorm Possible Ways to Retain Clients &
Customers
When it comes to business, no matter the industry that you
choose to pitch your tent in, one of the easiest ways to increase customer
retention and perhaps attract new customers is to produce results and satisfy
your customers always. If your customers are satisfied with your products and
services delivery, they can hardly source for alternative service provider or
products.
One of the strategies that you would need to employ in order
to generate repeated sales from your customers and also to retain them is to
ensure that your technicians can carry out good jobs and are always on time and
your customer services does not fluctuate. If the services and customer service
fluctuate, you are likely going to struggle to get your customers coming back.
You can also make uses of promotional ideas such as loyalty schemes, direct
marketing, and door drops.
Ensure that you offer your customers incentives if you want
to retain them and of course continue to generate repeated sales from them and
also to attract new customers.
Part of what you need to do to achieve this is to track
progress, results or outputs with the aim of improving on them quickly as the case
demands. When it comes to managing your customers, and building a loyal
clientele base, you should purchase a customized CRM software.
With a customized CRM system, you can easily stay in touch
with your clients (you can carry out quick surveys, you can introduce new
products and prices to them without any hitch, you can felicitate with them on
their birthdays and other anniversaries, you can keep track of their progress,
you can send bulk sms and customized emails and above all, you can easily
receive compliant and feedback from them).
19. Develop Strategies to Boost Brand Awareness and
Create a Corporate Identity
If you are in business and you are not deliberate about
boosting you brand awareness and communicating your corporate identity, then
you should be ready to take on whatever the society portray your business to
be.
If your intention of starting an electronic and computer
repair company is to grow the business beyond the city where you are going to
be operating from to become a national and international brand by opening
offices all across key cities in the United States and franchising, then you
must be ready to spend money on promotion and advertisement of your brand.
No matter the industry you belong to, the truth is that the
market is dynamic and it requires consistent brand awareness, boosting and
promotion to continue to appeal to your target market. Here are the platforms
you can leverage on to boost your brand awareness and create a corporate
identity for your electronic and computer repair company;
- Place
adverts on both print (newspapers and relevant magazines) and electronic
media platforms
- Sponsor
relevant community based events
- Leverage
on the internet and social media platforms like Instagram, Facebook,
Twitter, YouTube, Google + et al to promote your electronic and computer
repair company
- Install
your billboards in strategic locations all around your city or state
- Engage
in roadshows from time to time in targeted business districts to create
awareness for your electronic and computer repair company
- Distribute
your fliers and handbills in target areas
- Contact
commercial and residential users of electronic gadgets and computer systems
and other key stakeholders throughout the city where your company is
located informing them about your company and the services you offer
- List
your electronic and computer repair company in local directories
- Advertise
your electronic and computer repair company in your official website and
employ strategies that will help you pull traffic to the site
- Position
your Flexi Banners at strategic positions in the location where your
company is located
- Ensure
that all your staff members wear your branded shirts and all your vehicles
are well branded with your company logo