Do you want to start an electronics repair shop? If YES, here is a complete guide to starting an electronics repair shop business with NO money and no experience.
Okay, so we have provided you an in-depth sample electronics repair shop business plan template. We also took it further by analyzing and drafting a sample electronics repair shop marketing plan backed up by actionable guerrilla marketing ideas for electronics repair shops. In this article, we will be considering all the requirements for starting an electronics repair shop. So put on your entrepreneurial hat and let’s proceed.
Why Start an Electronic Repair Shop?
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 starting 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 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, 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 sure 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.
Starting an Electronic Repair Shop Business – A Complete Guide
- Industry Overview
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.
Starting an Electronic Repair Shop Business – 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.
List of Niche ideas Within the Electronic Repair Business That You Can Specialize in
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 Electronic Repair Services 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.
List of Well – Known Brands in the Electronic Repair 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
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.
Starting Your Electronic and Computer Repair Services Business from Scratch vs Buying a Franchise
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.
Possible Threats and Challenges You Will Face When Starting an Electronic and Computer Repair Services Business
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.
Starting an Electronic Repair Shop Business – Legal Matters
- Best legal entity to use for this type of business
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.
Catchy Business Name ideas Suitable for an Electronic and Computer Repair Services Business
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.
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
Intellectual Property Protection/Trademark
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.
Is Professional Certification Needed to Run an Electronic Repair Shop?
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.
List of Legal Documents You Need to Run an Electronic and Computer Repair Business
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
- Company Bylaws
- Memorandum of Understanding (MoU)
- Building License
- Franchise or Trademark License (optional)
Financing Your Electronic and Computer Repair Business
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 fulltime 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
Choosing a Suitable Location for your Electronic and Computer Repair 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
Starting an Electronic Repair Shop – Technical and Manpower Details
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 Services Process Involved in the Electronic and Computer Repair 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.
Starting an Electronic Repair Shop Business – The Marketing Plan
- Marketing ideas and 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)
Factors That Will Help You Get the Right Service Pricing
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.
Possible Ways to Increase Client Retention
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).
Strategies to Boost Your Electronic Repair Shop Brand Awareness and Create Your 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