Do you want to start a phone assembling business? If YES, here’s a complete guide to starting a phone assembling business with NO money and no experience. Mobile phones over the years have made communication easier and faster. They have become important tools especially in business where the flow of communication should always be open so that transactions and processes are done in the most expedited way.
The ever growing demand in this business has created an intense competition, with industry players striving to outdo each other. This is why to remain competitive, mobile phone manufacturers have to keep per unit manufacturing cost as low as possible.
This has prompted mobile phone companies to outsource production to external vendors or developing countries where labour is cheaper. They also outsource phone production to drive proximate to the intended market. So when planning to start a mobile phone assembling business, a key factor to consider would be location.
Does the region have people with the right qualification to become the manpower behind the company? Is the cost of labour such that a profitable operation is possible? Is the location at a distance from the intended market such that transportation costs do not eat profits? Is the market growing such that it can support your business?
Most people don’t know that the actual manufacturing of phones involve the assembly of the hardware and the installation of the software that will drive the phone. Note that a phone assembling business may design and develop both. Putting together a mobile phone involves continuous research for new designs and the development of this design into new products with unique appearance and functionality.
Have it in mind that the design process goes through several milestones and approval stages. Also note that during the actual production, all the parts like the LCD, keypad, antenna, battery, microphone, and circuit board go through an assembly line where machines pick them up and put them together into mobile phone units.
After that each mobile phone then goes for rigorous testing to make sure every part and feature – battery, video, keypad, messaging, and calling — works very well. Any feature that fails the quality tests is rejected. The units whose qualities have met the standards are then packaged, shipped and delivered.
Human intervention could come in the process of installing high-value components, visual inspection, and testing. A mobile phone assembling plant may also receive orders from service providers for phones with customized software, design and features.
19 Steps to Starting a Phone Assembling Business
Table of Content
- 2. Conduct Market Research and Feasibility Studies
- 3. Decide What Niche to Concentrate On
- 4. Know the Major Competitors in the Industry
- 5. Decide Whether to Buy a Franchise or Start from Scratch
- 9. Discuss With an Agent to Know the Best Insurance Policies for You
- 10. Protect your Intellectual Property With Trademark, Copyrights, Patents
- 11. Get the Necessary Professional Certification
- 12. Get the Necessary Legal Documents You Need to Operate
- 13. Raise the Needed Startup Capital
- 14. Choose a Suitable Location for your Business
- 15. Hire Employees for your Technical and Manpower Needs
- 16. Write a Marketing Plan Packed With ideas & Strategies
- 17. Develop Iron-clad Competitive Strategies to Help You Win
- 18. Brainstorm Possible Ways to Retain Clients & Customers
- 19. Develop Strategies to Boost Brand Awareness and Create a Corporate Identity
1. Understand the Industry
Statistics has shown that the mobile phone industry is the fastest growing sector in the larger communications industry today. The Internet, to a very large extent, is one of the trends attracting use by the largest numbers of people globally. The mobile phone industry is primarily engaged in the manufacturing of mobile phones, including mobile phone handsets.
Industry experts have stated that the industry is totally concentrated on moving forward technologically. It is one of the fastest moving industries in the world, growing alongside up-and-coming technologies and innovations, building upon the progress of “smartphones” and other phone feature and segments made in recent years.
Note that it is not just the technology of the mobile phone that has changed over time. Reports have it that their physical designs have also gone through several changes and alterations. Their bulkiness has been reduced, changing in shape, size and weight. Industry experts also believe that in the future, mobile phones will become in sync with our biological reflexes and processes, such as eye movements, thought processes, and kinaesthetic movements, and even cultural preferences as well.
Mobile phones have become a part of many individuals’ lives, without which they would feel lost. Technologically, it has been said that mobile phones have been among the greatest gifts to mankind. The regulatory responsibilities for mobile phones in the U.S. rests with the Federal Communication Commission (FCC), which certifies that these wireless devices, and all phones that are sold in U.S., must comply with the guidelines they have set forth.
Note that the FCC relies on the FDA and other health agencies to make sure mobile phones are safe to users and the environment. Also note that current breakthroughs emerging in the fields of wireless technologies, biological research, development standards, and prospects related to safety of telecommunication devices are all being used to make mobile phones safer and more utilizable by all.
2. Conduct Market Research and Feasibility Studies
- Demographics and Psychographics
Americans in this current age are increasingly connected to the world of digital information while “on the go” via smartphones and other mobile devices. The vast majority of Americans – 95% – now own a mobile phone of some kind. The share of Americans that own smartphones is now 77%, up from just 35% in 2011.
By contrast, smartphone ownership shows greater variation based on age, household income and educational attainment. Along with mobile phones, Americans own a range of other information devices. Nearly three quarters of U.S. adults now own desktop or laptop computers, while roughly half now own tablet computers and around one-in-five own e-reader devices.
With the adoption of traditional broadband service having slowed over the years, a growing share of Americans now use smartphones as their primary means of internet access at home. Today one-in-five American adults are “smartphone-only” internet users – meaning they own a smartphone, but do not have traditional home broadband service. Reliance on smartphones for online access is especially common among younger adults, non-whites and lower-income Americans.
3. Decide What Niche to Concentrate On
The intense competition for market share has made the mobile phone market very ‘hot’ with companies launching new models almost every single month. The general trend is that each launch brings in better hardware at a lower price, with occasional off-the-beaten track innovations such as water resistance. Supersized batteries are another such, which quickly turned from innovation to a fairly well established ‘segment’.
When it comes to market or product differentiation, price range seems to be the single biggest theory, with some companies starting to focus models on specific features – such as camera, front camera, screen size and processor speed – to appeal to specific segments of users.
Companies like LG, Samsung and Lenovo have also invested in features relevant for business people. It’s very important to state that just few industry players seem to have focused on specific consumer insights. In the manufacturing phase, you can focus on specific feature of mobile production and exercise your expertise to win and attract clients. These features may include;
- Software and service plant
- Platforms and configuration plant
- Accessories production
The Level of Competition in the Industry
With almost 240 million mobile phone internet users, the United States is one of the largest mobile communication markets in the world. According to reports, 270 million Americans are expected to use a smartphone by 2022. Also note that the United States is the country with the third-most smartphone users worldwide, trailing only China and India.
The level of competition in the mobile phone assembling industry depends majorly on the location of the business and your close proximity to your clients. Therefore, to be able to compete effectively against other mobile phone assembling plants, you would need to physically establish a location.
Note that the mobile phone industry in the United States of America is filled with competition due to growing need to gain market share through innovation and creativity. Therefore, if you choose to start your own mobile phone assembling business in the United States of America, you should research the industry extensively.
4. Know the Major Competitors in the Industry
- Blu Products
- Firefly children’s phone
- Motorola Mobility
- Kodak Phones
- Microsoft Mobile Oy
- NEC Casio (G’zOne)
- Personal Communications Devices (PCD)
Due to the advent of technology, any business related to mobile phones and the various technologies used on these devices, can be very lucrative because the market is rising at a fast pace; when you consider that 80 percent of Internet users own a smartphone, and users spend an average of 69 percent of their media time consuming various types of media on their mobile devices.
You need to note that the boom in mobile phone usage continues to expand around the globe covering all income spectrum. A mobile phone is no longer an expensive business luxury or status symbol, but a necessity for many.
For the small player, the opportunity to start a mobile phone assembling plant exists on the fringes or niche markets, but there is no denying that the opportunity exists. And you no longer need to become a reseller of mobile devices to enter and thrive in this growing market. Have it in mind that both big and small companies from all industries and markets are vying for a share of a large and ever-growing mobile pie. You just have to create a workable business plan and a concrete marketing plan to start this business successfully.
5. Decide Whether to Buy a Franchise or Start from Scratch
Most people believe that the only way to start a business is to build from the scratch. Business is no longer viewed that way especially with the level of competition in the world currently. Unless you have convincing reasons to start from the scratch, buying an existing mobile phone assembling plant may be the better choice.
Reports and evidence have shown how profitable buying a franchise is when compared to starting from the scratch. By pursuing a franchise you can benefit from a turnkey operation with proven profitability and a well-oiled business model.
You need to understand that your chances of reaching your goal of becoming a successful business owner immediately improves when you leverage a franchise instead of starting from the very scratch. Indeed, no means of starting a business is easy, as every route comes with its threats and benefits. This is why it’s advisable that you assess whether there are good franchise opportunities available that suit your visions and make your entrepreneurial life easier.
6. Know the Possible Threats and Challenges You Will Face
Just like we stated above, no business startup is easy. It takes strong will power and creativity to be able to survive in any form of business niche you decide to follow. Every business has its own threats but have it in mind that what defines a successful entrepreneur is the ability to turn failures into success. Possible threats of starting this business may include;
- Building your brand
- Industry competition
- Finding good employees
- Attracting costumers
- Dealing with the stress of not having a steady pay check
- Managing your money, legal protection and taxes
7. Choose the Most Suitable Legal Entity (LLC, C Corp, S Corp)
You have four legal structures to choose from when planning to start this business; sole proprietorship, partnership, limited liability company (LLC), or a corporation. Do not make the mistake of hurrying this decision because it will dictate how your business is managed in the long run. The legal entity you choose will dictate how your funds are managed and how your business will be taxed. This is a decision you need to make carefully because each legal entity comes with its own distinct benefits and disadvantages.
Note that the LLC is the best legal entity for your mobile phone assembling plant. An LLC is a “pass through” tax entity because it doesn’t pay tax. In this legal entity you pay tax on the profits you receive. Have it in mind that the trick to reducing your tax liability is two-fold: start an LLC but tax it as an S-Corporation.
Then you pay yourself a small but reasonable monthly salary and once per quarter you can take out a chunk of the profits as a distribution. Have it in mind that you will pay standard tax on your monthly salary but the quarterly S-Corporation distribution is not looked at as employee wages so you will not have to pay social security or business tax on this distribution amount.
8. Choose a Catchy Business Name from the ideas Below
- Sentinel assembling plant
- YUC factory
- Kino plant
- Red Ridge
- Level point
- GIC assembling plant
- New Touch
- Mobile Service
- KB plant
- System assembling plant
- Castle Black
9. Discuss With an Agent to Know the Best Insurance Policies for You
You need to understand that a single mistake in your work could cost you a huge fortune. Also if the mobile phone parts are further damaged while in your plant, you could be liable for those costs as well. These are the few risks you could face during the course of your work. This is why Insurance is needed in this business to protect you from the high cost of liability lawsuits, property damage, and cyber risks; you need a business protection plan that accounts for the nuances in your daily operations.
- General liability insurance
- Errors and omissions insurance
- Business owners policies
- Employer’s liability insurance
- Fidelity bonds
- Employment Practices Liability Insurance
- EPLI policy
- Bailee’s coverage
- Workers compensation insurance
- Workman’s Comp Case Study
10. Protect your Intellectual Property With Trademark, Copyrights, Patents
Most Intellectual Property theft is committed by half of all employees and competitors. A lot of employees in this business routinely transfer company data to the cloud through personal emails and on to their flash drives, as part of the day to day job exercise, and most times they forget to clean the data off of their systems. Also most employees, even after signing non-disclosure agreements, think that the work performed in their employers plant remains their own.
Have it in mind that intellectual property protection is needed in the mobile phone assembling plant in form of patents protection, trademark and copyright protection, technical data and Software Protection.
You’re advised to implement and reinforce non-disclosure and non-compete agreements, use forensic techniques to monitor your network, sustain privacy and security through key word phrases, and develop a solid relationship with a digital forensics investigator to keep your works and trade secrets safe. You should also avoid reallocating equipment or information without making a forensic copy, do not let your workers use personal flash drives, and never you underestimate the zeal of a thief.
11. Get the Necessary Professional Certification
- Mobile Development Certifications: Microsoft, MDI, Oracle and SAP
- Mobile Networking Certifications: CompTIA, Citrix, Aruba and Cisco
- Mobile Security Certifications: CompTIA, GIAC and SANS Institute
- Mobile Specialty Certifications: Workforce Management and Forensics
12. Get the Necessary Legal Documents You Need to Operate
All the license and permits you need to run your mobile phone assembling plant hitch free takes time, energy and paperwork to obtain. But do not make the mistake of neglecting any to avoid getting yourself into trouble with the law. Note that starting your business without the proper licensing is a criminal offense in some states, while others hand out hefty fines. Here are some legal documents needed for a Mobile phone assembling plant.
- Business license
- VAT registration
- Employment agreement
- Federal tax identification number
13. Raise the Needed Startup Capital
Starting and running a mobile phone assembling plant can be very hard if you lack the funds to do the necessary things. You will need funds to be able start up a mobile phone assembling plant, buy tools, rent offices and utilities, pay employees, and also build a corporate identity.
Also note that you will need funds to run your business for a while before you start making money and profits to sustain it. Inadequate funding remains one of the key reasons why some businesses fail. Note that you will need a working business plan and an attractive prototype to fully convince investors to pitch their rent with you. Below are few ways to obtain startup funds in this business…
- Angel investors
- Personal savings
- Venture capitalists
- Soft Loans from friends and family
- Bank loans
14. Choose a Suitable Location for your Business
The issue of location, especially for this kind of business, is not something you should treat lightly. You have to understand that the location you choose will have a strong impact on your operation’s costs as well as your ability to serve customers (and therefore your revenues). Also have it in mind that once you settle for a location, it will be difficult and costly to change. It is advisable that you go for a location where you can easily afford its rent and not go bankrupt.
The location you choose needs to be legally acceptable for whatever you plan to do there. Keep your mind open when choosing a location for your business, because there is a possibility for a spot to be good for business but not zoned for what you plan to do. You shouldn’t sign a lease without being sure you’ll be permitted to operate your business in that space.
Have it in mind that your city planning or zoning board decides what activities are permissible in a given location. If your zoning board has a problem with any of your business activities, and it’s not willing to work out a way to accommodate your business, you may have to find another space.
15. Hire Employees for your Technical and Manpower Needs
It’s very important to state that this business requires adequate funding because you will need funds to get quality equipment, rent or build a plant, pay your employees etc. Just like we stated above, the location you choose for your plant is also very important as the right location will allow you generate the needed revenue that would grow and allow you to expand your business. Unless you plan to run your assembling business on a very small scale, you will need a considerable amount of workers to help you run your business efficiently.
These personnel include; Chief Executive Officer (CEO), admin and human resources manager, accountant, business development and marketing executive, assembly line workers, customer service executive and security. When it comes to the equipment you need to run your mobile phone assembling business efficiently, you might need to buy some, rent some or get some as fairly used, depending on what your overall budget for the business is.
- Belt conveyor
- Work table
- Frame separator
- Counting screw machine
- Laminator etc.
The Services Delivery Process of the Business
Anytime a company decides to make a new model, they already have older models so they do not need to start from scratch. What they have to do is to improve the older model through the feedback of users or the experts in this field. All the shortcomings of the previous models are taken and adjusted in the new innovation; the technology is injected into the latter model. Explained below is how mobile phones are manufactured;
Making of prototype
The idea of a phone can be conceived in the board room meeting and then the affirmation is passed to the research and development lab where they commence with a prototype. This model is then passed on to the relevant people so that they may give their advice and make any changes if needed.
After the looks of the model are zeroed on, the inside working kit of the handset is worked upon. At this point, the rein of this ride is then handed over to the electronics engineering team and it is here the decision is taken on the processor and memory for the handset.
Also note that the matching display screen and the needed battery potential are selected at this point. The front and rear cameras are also not missed. The device is then armed with the selected components and checked for working performance. After this, if the decision making team is reasonably satisfied with the working then this handset is sent back to the authorities for their approval.
After the prototype has been made, the software team is now called upon to breathe life into the handset. Although the operating system that is to be loaded into the phone have been decided upon before this point, but it is still very crucial that the hardware that is created by the electronics team is compatible for the smooth functioning of the operating system.
At this point it will be checked by many experts in their own manner for the system to be working according to expectation. Have it in mind that the chosen design loaded with hardware and software is then readied for mass production. At this juncture it is often difficult to go back and alter the already approved working prototype.
After the software team must have done everything needed to this point of the production, the handset is rigorously tested for quality and other parameters before mass production. They are tested in terms of both hardware and software. Various tests like drop test, bend test and water tests are carried out to check the phone’s performance.
When the prototype is ready to be launched, sometimes the information is leaked to the public and it could be both helpful or otherwise. This can be helpful when it popularizes the ‘to be launched’ handset, and a disadvantage because this gives critics the opportunity to find out faults in the still to be produced models and thus drop down the ratings.
This mass production phase could be at the manufacturers own plant or can also be outsourced to other manufacturers also known as original equipment manufacturers (OEM) to be made as per their required quality as well as specs. It’s very important to state that during mass production, mobile phones are usually codenamed to avoid leak of information related to specs and design.
After the handset must have passed all the tests, it is then sent for packaging. The handset along with accessories and user manual are put into the box ready to be shipped.
This is the final stage of the entire process. These packaged phones are then dispatched to retailers across the globe and from these retailers, you can pick up the handset.
16. Write a Marketing Plan Packed With ideas & Strategies
It’s important to state that your detailed market research will help you define the best strategy to market your business. Through this research, you will be able to find out what works in the industry and how best to reach your clients.
One of the best ways to promote your mobile phone assembling plant is by creating opportunities to demonstrate your superior knowledge and skills to the local community. Have it in mind that lack of marketing experience can sometimes be overcome through persistence and innovation. Things you should note for you to successfully market your business may include;
Using Marketing Collateral
You need to understand that brochures, folders, direct mail pieces, and other types of promotional materials are called marketing collateral. When creating a marketing plan for your mobile phone assembly plant, you should ensure that every piece of marketing collateral reinforces your brand and value proposition. Also note that you have to get the utmost impact from your collateral, it needs to be targeted toward its recipients.
Competitive awareness is the key point for creativity in marketing. Nothing can go wrong with creativity, but if it precludes your message from being represented alongside other mobile phone assembling plants, it could be a sign that you’re out of touch with the marketplace. It’s very advisable that you consult with a professional marketer before you implement this strategy.
Have it in mind that a company newsletter has excellent potentials as a marketing device. Note that a blatant marketing message is not appropriate in newsletters because they don’t communicate informational value to your customers. You should ensure that your newsletter contains industry news, product use tips, and other content that captures your customers’ attention.
17. Develop Iron-clad Competitive Strategies to Help You Win
In this very lucrative business, you have to prove your worth over and over again before attracting high profile clients. So, if you have plans to start your own a mobile phone assembling business, it will pay you to first profile the industry and find out ways to achieve your business goals. Note that with the extreme competition in the industry, you need to explore every available opportunity to win your competitors. Ways to win your competitors may include:
- Define your company
- Choose a competitive advantage
- Create a customer database
- Excite your customers
18. Brainstorm Possible Ways to Retain Clients & Customers
Note that the process of finding, targeting and obtaining new customers will always be crucial to the success of every business, especially for businesses providing services to customers. Have it in mind that customer retention is the by product of customer service and experience. You should start by creating a good experience that’s consistent and understandable, and you have a shot at customer retention. Here are few ideas on how to retain customers in your A mobile phone assembling business:
- Customer and Employee loyalty
- Soliciting their ideas and suggestions
- Thank your customers
- Build the customers and not the price
- Be quick to resolve issues
- Turning difficult situations into opportunities to earn your client’s trust.
- Offer a reward
- Stop telling customers what’s good for them — and LISTEN TO THEIR NEEDS.
- Offer a simple way to pay
19. Develop Strategies to Boost Brand Awareness and Create a Corporate Identity
Boosting the brand awareness of a mobile phone assembling business is not an easy task, but with the right concept it can be very easy. The very first thing you have to do is set yourself apart from your competitors who want the same customers that you’ve got. In order to do that, you need to create a marketing strategy that fits your dreams and reaches your clients directly. Things to consider may include:
- Be Competitive
- Good pricing strategy
- Be direct and creative
- Create an image
- Promote a community
- Be consistent
- Position your market
- Distinguish your brand