Are you about starting an electronics repair business? If YES, here is a complete sample electronics repair plan template & feasibility report you can use for FREE.
Okay, so we have considered all the requirements for starting an electronics repair business. We also took it further by analyzing and drafting a sample electronics repair marketing plan template backed up by actionable guerrilla marketing ideas for electronics repair companies. So let’s proceed to the business planning section.
Table of Content
- 1 Why Start an Electronics Repair Business?
- 2 Electronics Repair Business Plan – Executive Summary
- 3 Electronics Repair Business Plan – SWOT Analysis
- 4 Electronics Repair Business Plan – MARKET ANALYSIS
- 5 Electronics Repair Business Plan – SALES AND MARKETING STRATEGY
- 6 Electronics Repair Business Plan – Publicity and Advertising Strategy
- 7 Electronics Repair Business Plan – Financial Projections and Costing
- 8 ELECTRONICS REPAIR BUSINESS GROWTH: Sustainability and Expansion Strategy
Why Start an Electronics Repair Business?
If you studied electrical electronics engineering at the university or even in a technical school, you can comfortably set up your own electronics repair shop in any part of the United States and still make headway in the business.
Among the factors that need to be considered before starting a new business is the size/population of the city or town you intend starting the business, the level of competition you are likely going to face, and of course the availability of market for your services or products.
An electronics repair shop is a money spinning business that an aspiring entrepreneur who is looking towards starting a business in the United States of America should consider starting. One good thing about this type of business is that you can learn the 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 and then setup your shop and advertise your electronics repair business. If you are lucky to be one of the few electronic repair technicians in your community, you will sure make good money from this type of business.
Almost every home and office has one form of electronics or the other, and over time these electronic gadgets will require maintenance, servicing and repairs. This goes to show that there is indeed a huge market for electronic repair shops. All you need to do to start this business is to learn the technical skills required to service, maintain and repair electronic gadgets and also to acquire the required work tools.
In general, starting an electronic repair shop business requires low startup capital, but it is indeed a very 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 service.
Here is a sample electronics repair business plan template that will guide you to write yours.
A Sample Electronics Repair Business Plan Template
- Industry Overview
The Electronic and Computer Repair Services industry is made of companies in 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 looking for ways to 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 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 industry is still dominated by original equipment manufacturers (OEMs), which are companies that will visit a customer to repair or replace the same products that they make. In recent years, large chains like Best Buy with their “Geek Squad” have opened up repair arms; powered by their name recognition and huge marketing budget, they immediately became a formidable competitor for any computer repair business. In addition, with electronics cheaper than ever, some people have tended to replace their electronics entirely rather than bother to have them repaired.
The Electronic and Computer Repair Services industry is indeed a very large industry and pretty much thriving in all the 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.
Some of the factors that encourage entrepreneurs to start their own electronic and computer repair services are that people and businesses who can’t afford to purchase new electronics would always employ the services of electronic repair 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.
Electronics Repair Business Plan – Executive Summary
Harry Perry® Electronics Repair Shop, LLC is a U.S based electronics repair business. We have been able to secure a standard shop facility in a central business district close to one of the largest residential estates in Trenton – New Jersey. We are an electronics repair business that is set to compete in the highly competitive industry not only in Trenton – New Jersey, but also throughout the United States market.
Harry Perry® Electronics Repair Shop, LLC will offer all aspects of electronics repair services such as consumer electronics (including home theaters, DVD, radio, TV and VCR) repairs, computer and office machine repairs, communications equipment repairs and other electronic equipment repairs such as dental equipment, medical and surgical equipment and optical instruments et al.
Our business goal is to become one of the leading electronics repair shop business in the United States and we will make sure that we do all we can to compete favorably with leaders in the industry.
Our workers are going to be selected from a pool of certified electronics and computer repair engineers in and around Trenton – New Jersey. We will make sure that we take all the members of our workforce through the required training that will position them to meet the expectations of the company.
At Harry Perry® Electronics Repair Shop, LLC, our client’s best interest will always come first, and everything we do will be guided by our values and professional ethics. We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely.
Harry Perry® Electronics Repair Shop, LLC is founded by Engr. Harry Perry an electrical electronics engineer who graduated with from Massachusetts Institute of Technology (B.Engr. Electrical/Electronic Engineering). He has a combined experience that can help them build Harry Perry® Electronics Repair Shop, LLC to favorably compete with other leading electronics repair businesses in the United States of America.
- Our Services Offerings
Harry Perry® Electronics Repair Shop, LLC was established with the aim of maximizing profits in the electronics repair services industry. We want to compete favorably with the leading electronics repair businesses in the United States which is why we have but in place a competent quality assurance team that will ensure that every repair carried out meet and even surpass our customers’ expectations.
We will work hard to ensure that Harry Perry® Electronics Repair Shop, LLC is not just accepted in Trenton – New Jersey but also in other cities in the United States of America. Our repair services are listed below;
- 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 dental equipment, medical and surgical equipment and optical instruments
Our Vision Statement
Our vision is to launch a standard electronics repair business whose services and brand will not only be accepted in Trenton – New Jersey but also in other cities in the United States of America.
- Our Mission Statement
Our mission is to provide professional electronics repair services that owners of electronics will come to when their electronics become faulty. We want to build an electronics repair business that can favorably compete with other leading brands in the electronics repair services industry.
- Our Business Structure
Harry Perry® Electronics Repair Shop, LLC, is an electronics repair business that intends starting small in Trenton – New Jersey, but hopes to grow big in order to compete with leading electronics repair companies in the industry. We are aware of the importance of building a solid business structure that can support the kind of business we want to own, which is why we are committed to only hire the best hands within our area of operation.
At Harry Perry® Electronics Repair Shop, LLC, we will ensure that we hire people that are qualified, hardworking, creative, customer centric and are ready to work to help us build a prosperous business that will benefit all our stake holders.
As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more as agreed by the board of trustees of the company. In view of the above, we have decided to hire qualified and competent hands to occupy the following positions;
- Chief Executive Officer
- Head, Technical Services
- Human Resources and Admin Manager
- Sales and Marketing Executive
- Electronics Repair and Maintenance Engineers and Technicians (10)
- Client Service Executive
Roles and Responsibilities
Chief Executive Officer – CEO:
- Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions.
- Generates and implements the organization’s vision, mission, and overall direction -.
- Responsible for fixing prices and signing business deals
- Provides direction for the business
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
Head, Technical Services:
- Serves as project manager of the organization; works directly with employees
- Develops strategic plan by studying technological and financial opportunities; presenting assumptions; recommending objectives.
- Builds company image by collaborating with customers, government, community organizations, and employees; enforcing ethical business practices.
- Maintains quality service by establishing and enforcing organization standards.
- Makes certain that the technical department perform efficiently, coordinate employee efforts, and facilitate communications between management and electronics repairs and maintenance engineers and technicians
- Ensures that the organization works in line with international best practices
Human Resources and Admin Manager
- Responsible for overseeing the smooth running of HR and administrative tasks for the organization
- Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
- Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
- Defines job positions for recruitment and managing interviewing process
- Carries out induction for new team members
- Responsible for training, evaluation and assessment of employees
- Responsible for arranging travel, meetings and appointments
- Oversees the smooth running of daily office activities
Sales and Marketing Manager
- Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects.
- Writes winning proposal documents, negotiate fees and rates in line with organizations’ policy
- Responsible for handling business research, market surveys and feasibility studies for clients
- Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
- Develops, executes and evaluates new plans for expanding increase sales
- Creates new markets cum businesses for the organization
- Empowers and motivates the sales team to meet and surpass agreed targets
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Responsible for financial forecasting and risks analysis.
- Performs cash management, general ledger accounting, and financial reporting for one or more properties.
- Accountable for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensures compliance with taxation legislation
- Handles all financial transactions for the organization
- Serves as internal auditor for the organization
Electronics Repair and Maintenance Engineers (2) and Technicians (8)
- Responsible for carrying out consumer electronics repairs
- Carrying out computer and office machine repairs
- Responsible for carrying out communications equipment repairs
- Responsible for handling other electronic equipment repairs such as dental equipment, medical and surgical equipment and optical instruments
Client Service Executive
- Welcomes clients and potential clients by greeting them in person or on the telephone; answering or directing inquiries.
- Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
- Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
Electronics Repair Business Plan – SWOT Analysis
Harry Perry® Electronics Repair Shop, LLC engaged the services of a professional in the area of business consulting and structuring to assist our organization in building a well – structured electronics repair business that can favorably compete in the highly competitive electronics repair industry in the United States.
Part of what the business consultant did was to work with the management of our organization in conducting a comprehensive SWOT analysis for Harry Perry® Electronics Repair Shop, LLC. Here is the result of the SWOT analysis that was conducted on behalf of Harry Perry® Electronics Repair Shop, LLC;
Our core strength lies in the power of our workforce. We have a team of highly trained electronics repair engineers and technicians, a team with excellent qualifications and experience in various niche areas in the industry. Aside from the synergy that exists in our carefully selected workforce, our services will be guided by international best practices.
As a new electronics repair business in Trenton – New Jersey, it might take some time for our organization to break into the market and gain acceptance especially from top profile clients in the highly competitive electronics repair industry; that is perhaps our major weakness. Another weakness is that we may not have the required cash to promote our business the way we would want to.
The truth is that the opportunities in the electronics repair industry is massive considering the number of individuals and corporate organizations that own one form of electronics or the other and even computers. As an electronics repair business, we are prepared to take advantage of any opportunity that is available in the industry.
From our findings, one of the major threats that we are likely going to face is economic downturn. It is a fact that economic downturn affects purchasing / spending power. In addition, with electronics becoming cheaper than ever, some people have the tendencies to replace their electronics entirely rather than bother to have them repaired.
Another threat that may likely confront us is the arrival of a new electronics repair shop and even original equipment manufacturers who run repair centers in the same location where our target market exists and who may want to adopt same business model like us.
Electronics Repair Business Plan – MARKET ANALYSIS
- Market Trends
One good thing about the electronics repair services industry is that it is an open industry hence it has a low level of market share concentration. Even though large electronics and computer manufacturing companies operate in the industry, revenue is also spread among thousands of small electronics repair centers and even mobile electronics repair businesses.
As a matter of fact, no single electronics repair shop or electronics manufacturing company can account for more than 5.0 percent of the total revenue generated in the industry. This is the reason why smaller electronics repair shops account for a large percentage of the players in the industry.
It is a known trend in the developed world to find steady growth in the electronics repair industry. The industry has grown steadily over the last five years in the United States of America and it is projected to continue to enjoy steady growth.
Individuals and businesses have increased demand for electronics repair services, as rising per capita disposable income and corporate profit encourages consumers to opt for electronics repair and maintenance services over do-it-yourself repair. Going forward, disposable income levels are expected to continue to grow, encouraging some consumers to spend more on the maintenance and repair of their electronics and computers.
Our Target Market
Prior to starting our electronics repair business in Trenton – New Jersey, we conducted a market survey and feasibility studies and we are certain that there is a wide range of clients who would need our services. In view of that, we have created strategies that will enable us reach out to various corporate and individual clients who we know can’t afford to do without our services.
Below is a list of the people and organizations that can market our repair services to;
- Individuals and households who own electronics
- Banks, Insurance Companies and other related Financial Institutions
- Corporate Organizations
- Manufacturers and Distributors
- The Government (Public Sector)
- Schools (High Schools, Colleges and Universities)
- Religious Organizations (sound system and electrical gadgets)
- Television Stations
- Printing Press (Publishing Houses)
- Entrepreneurs and Start-ups
Our Competitive Advantage
Without a shadow of doubt, there are loads of big time investors that have a stake in the electrical repair services industry; but one thing is certain, there is room big enough to accommodate everyone. What smaller electronics repair companies need to do to survive in the industry is to concentrate on providing electronics repair, maintenance and installation services to households, individuals, estates, communities, schools, hospitals and hotels et al before bidding for big contracts from corporations and government agencies.
We are quite aware that to be highly competitive in the industry means that you are not only expected to deliver highly reliable electronics installation, repair, and maintenance jobs, but you must be able to meet set targets. No one would want to continue to bring their faulty electronics to your shop if they know that you are not going to carry out a thorough repair job.
Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and achieve all our business aims and objectives.
Electronics Repair Business Plan – SALES AND MARKETING STRATEGY
We are fully aware of the competition that exists in the electronics repair industry, hence we have been able to hire some of the best marketing experts to handle our sales and marketing. Our sales and marketing team will be recruited based on their vast experience in the industry and they will be trained on a regular basis to meet their targets and the overall business goal of Harry Perry® Electronics Repair Shop, LLC.
Our corporate goal is to grow Harry Perry® Electronics Repair Shop, LLC to become one of the top 10 electronics repair brands in the United States of America which is why we have mapped out strategies that will help us take advantage of the available market and grow to become a major force to reckon with not only in Trenton – New Jersey but also in other cities in the United States of America.
Harry Perry® Electronics Repair Shop, LLC is set to make use of the following marketing and sales strategies to attract clients;
- Introduce our electronics repair company by sending introductory letters alongside our brochure to households, electronics shops, corporate organizations, religious organizations and key stake holders in and around Trenton – New Jersey
- Promptness in bidding for electronics installation, repair and maintenance contracts from the government and other cooperate organizations
- Advertise our business in relevant business magazines, newspapers, TV stations, and radio station.
- List our business on yellow pages ads (local directories)
- Attend relevant international and local expos, seminars, and business fairs et al
- Create different packages for different category of clients in order to work with their budgets and still deliver excellent services
- Leverage on the internet to promote our business
- Engage in direct marketing approach
- Encourage word of mouth marketing from loyal and satisfied clients
Sources of Income
Harry Perry® Electronics Repair Shop, LLC is established with the aim of maximizing profits in the electronics repair industry and we are going to go all the way to ensure that we do all it takes to meet and surpass the expectations of all our clients.
Harry Perry® Electronics Repair Shop, LLC will generate income by offering the following electronics repair related services;
- 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 dental equipment, medical and surgical equipment and optical instruments
One thing is certain, there would always be corporate organizations and individuals who would need to repair their faulty electronics and gadgets hence the need for the services of electronics repair shops.
We are well positioned to take on the available market in electronics and computer repair services industry in Trenton – New Jersey and we are quite optimistic that we will meet our set target of generating enough profits from our first six months of operation and grow our electronics repair company to enviable heights.
We have been able to critically examine the electronics repair market and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to similar startups in Trenton – New Jersey.
- First Year: $250,000
- Second Year: $550,000
- Third Year: $750,000
N.B: This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same electronics repair services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.
At Harry Perry® Electronics Repair Shop, LLC, we will keep the prices of our repair services below the average market rate by keeping our overhead low and by collecting payment in advance from corporate organizations who would hire our services. In addition, we will also offer special discounted rates to all our customers at regular intervals.
We are aware that there are some one – off jobs or government contracts like electronics installation, repair and maintenance jobs which are always lucrative, we will ensure that we abide by the pricing model that is expected from contractors or organizations that bid for such contracts.
- Payment Options
The payment policy adopted by Harry Perry® Electronics Repair Shop, LLC is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.
Here are the payment options that Harry Perry® Electronics Repair Shop, LLC will make available to her clients;
- Payment with cash
- Payment via Point of Sale Machine (POS)
- Payment via online bank transfer
- Payment via check
In view of the above, we have chosen banking platforms that will enable our clients make payment for our repair services without any stress on their part. Our bank account numbers will be made available on our website and promotional materials.
Electronics Repair Business Plan – Publicity and Advertising Strategy
We have been able to work with our in house brand and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market. We are set to become the number one choice for both corporate and individual clients in the whole of the United States and beyond which is why we have made provisions for effective publicity and advertisement of our electronics repair and maintenance company.
Below are the platforms we intend to leverage on to promote and advertise Harry Perry® Electronics Repair Shop, LLC;
- Place adverts on both print (newspapers and magazines) and electronic media platforms
- Sponsor relevant community based events / programs
- Leverage on the internet and social media platforms like; Instagram, Facebook, twitter, YouTube, Google + et al to promote our services
- Install our billboards in strategic locations all around Trenton – New Jersey
- Engage in roadshows from time to time in targeted neighborhoods
- Distribute our fliers and handbills in target areas
- List our electronics repair and maintenance company in local directories / yellow pages
- Advertise our electronics repair and maintenance company in our official website and employ strategies that will help us pull traffic to the site.
- Ensure that all our staff members wear our branded shirts and all our vehicles are well branded with our company logo et al.
Electronics Repair Business Plan – Financial Projections and Costing
In setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting a place, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.
This means that the start-up can either be low or high depending on your goals, vision and aspirations for your business.
The tools and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked. However, this is what it would cost us to setup Harry Perry® Electronics Repair Shop, LLC in the United of America;
- Business incorporating fees in the United States of America will cost – $750.
- The budget for Liability insurance, permits and license will cost – $3,500
- Acquiring an office space or warehouse that will accommodate the number of employees for at least 6 months (Re – Construction of the facility inclusive) will cost – $100,000.
- The amount required to purchase the needed tool box and repair equipment – $25,000
- Equipping the office (computers, printers, projectors, markers, servers / internet facility, furniture, telephones, filing cabinets, and electronics) will cost – $30,000
- Amount required to purchase the needed software applications – $3,500
- Launching an official Website will cost – $500
- Amount needed to pay bills and staff members for at least 2 to 3 months – $70,000
- Additional Expenditure such as Business cards, Signage, Adverts and Promotions will cost – $5,000
Going by the report from the market research and feasibility studies conducted, we will need about two hundred and fifty thousand (250,000) U.S. dollars to successfully set up a medium scale but standard electronics repair and maintenance company in the United States of America.
Generating Startup Capital for Harry Perry® Electronics Repair Shop, LLC
Harry Perry® Electronics Repair Shop, LLC is a business that will be owned and managed by Engr. Harry Perry and his immediate family members. They are the sole financiers of the business which is why they decided to restrict the sourcing of the startup capital for the business to just three major sources.
These are the areas we intend generating our start – up capital;
- Generate part of the startup capital from personal savings and sale of his stocks
- Generate part of the startup capital from friends and other extended family members
- Generate a larger chunk of the startup capital from the bank.
N.B: We have been able to generate about $50,000 (Personal savings $30,000 and soft loan from family members $20,000) and we are at the final stages of obtaining a loan facility of $200,000 from our bank. All the papers and documents have been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.
ELECTRONICS REPAIR BUSINESS GROWTH: Sustainability and Expansion Strategy
One of our major goals of starting Harry Perry® Electronics Repair Shop, LLC is to build a business that will survive off its own cash flow without injecting finance from external sources once the business is officially running. We know that one of the ways of gaining approval and winning customers over is to offer our electronics repair and maintenance services a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.
Harry Perry® Electronics Repair Shop, LLC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner.
As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.
- Business Name Availability Check: Completed
- Business Incorporation: Completed
- Opening of Corporate Bank Accounts in various banks in the United States: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Securing a standard office facility for our workshop: Completed
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Conducting Feasibility Studies: Completed
- Generating part of the startup capital from the founders: Completed
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents: In Progress
- Design of Logo for the business: Completed
- Secure trademark for our products: In Progress
- Printing of Promotional Materials: Completed
- Recruitment of employees: In Progress
- Purchase of the needed electronics repair tool box and equipment, furniture, office equipment, software applications, electronic appliances and facility facelift: In progress
- Creating Official Website for the business: In Progress
- Creating Awareness for the business: In Progress
- Health and Safety and Fire Safety Arrangement: In Progress
- Establishing business relationship with vendors and key players in various industries: In Progress
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