How to Start Electronics Repair Business
There will always be a market for electronics repair. Electronic devices and household appliances are fundamental in the daily life of the modern human being. Whether in industry, telecommunications or the home environment. Like every machine, they need care, repairs and maintenance services to run for a long period of time.
However, whether due to misuse or problems arising from use, these devices also usually present problems. And it is at this moment that the demand for repair services in electronics comes in.
Purchasing a new device has become plan C for many consumers. With the economic crisis, and overloaded pockets, they have been betting on repair when they encounter problems with their electrical appliances and electronic equipment.
The main household electronic appliances in this category are: refrigerator, freezer, air conditioning, microwave, washing machine, dryer, dishwasher, hood, non-electric water heaters, solar heater, scale, oven, among others.
In this article, we will give tips and guidance to anyone who is thinking of starting their own electronics repair business.
In summary:
- Is Electronics Repair Profitable?
- Why Start an Electronics Repair Business?
- Questions you should ask yourself:
- Business Format
- How to Start
- Mistakes to Avoid
- Conclusion
Is Electronics Repair Profitable?
Of course yes. All companies and consumers are on the Internet and they need their electronic equipment’s to be maintained and repaired.
I will not lie to you. While it is true that you will always have something to repair, the competition is very wide. However, your chances of giving your business a better focus will depend on your creativity and taking the following steps.
Why Start an Electronics Repair Business?
When it comes to starting a business, a multitude of factors are expected to play out before you continue to invest in any business. Among the factors to consider before starting a new business are the population of the city or city from which you intend to start the business, the level of competition you are likely to face and, of course, the availability of markets for your services or products.
Opening an electronics repair business is another money-spinning business that a potential entrepreneur looking to start a business in the world should consider. One good thing about this type of business is that you can learn technical skills from someone who is already in business or from technical school.
All you need to do is rent a store in a good location, set up a store and advertise an electronics repair job. If you are lucky enough to be one of the few electronics repair technicians in your community, you will surely make good money from this type of business.
Almost every home and office has one form of electronic or another or over time these devices will require maintenance, service and repair. This shows that there really is a large market for electronic services. All you need to do to start this type of business is to learn the technical skills needed to service, maintain and repair electronic devices.
This is undoubtedly a very lucrative and profitable venture, if it is well positioned and you know how to provide excellent business. The amount you can earn per day largely depends on your ability to market your services to commercial and residential users of electronic devices.
Questions you should ask yourself:
To decide on a launch scheme of your electronics repair business, answer the following questions:
- Can you make repairs yourself? If so, what equipment would you like to fix?
If you are an experienced electronics repairer, you will be able to accept and fulfill orders on your own. This means that at the start you will not have to hire craftsmen and the launch will be cheaper.
In addition, it is important to understand that there are mono-brand and multi-brand service centers, as well as those that repair almost any technique or only a certain type of it. The more different devices you serve, the more customers you have. But at the same time, the amount of investments in equipment and warehouse rent increases. It is also worth considering that for the repair of some products (for example, medical), a license is required. Otherwise, you can get a decent fine.
- What is the optimal startup scheme for you?
You can either open an electronics repair business center from scratch, or buy an existing one, or think about a franchise. The first way is the most difficult, but you can immediately build all the processes for yourself. In the second case, you will receive a ready-made customer base and trained staff (if you persuade employees to stay). The franchise option will allow you to start working under a well-known brand and according to an already proven model.
- How will you keep records?
In notepad, excel or special program. It is best to immediately start keeping record of your electronics repair business to quickly place orders, plan field work, maintain a supplier and customer base, as well as financial, management and warehouse accounting. So you will always understand what is happening with your business and it will be easier for you to develop it.
Business Format
The general classification of an electronics repair business can be divided into three main types.
- Stationary workshops, which, after processing the application, take the electronic equipment to themselves, repair, and then deliver the equipment back. Often these are large services that are official representatives of well-known brands, but in order to obtain such a status, you need to meet certain requirements and have positive experience in this area. In addition, considerable investments are needed. This format is an example for business development in the future. Usually, electronics repair business have a long warranty period.
- Craftsmen who fix household electrical appliances at home. Nowadays, in everyone in the house there are many different electrical appliances that make our life easier and save time.
But there are times when these devices fail and then we have a continuous red tape with repairs. It’s one thing if your electric kettle is broken, you took it and brought it in for repair, and if a refrigerator or stove breaks down, what then? You need to hire a cargo taxi to take it to a service center and wait for a response from specialists. In accordance with this problem, work at home is now actively gaining popularity.
First of all, you do not need to go anywhere and take your broken appliances, you just call the master, and he himself comes to you. On the spot, he makes an inspection and determines the cause of the breakdown, often they already have component parts (since the essence of the breakdown, according to statistics, you can estimate and take everything you need), but if there are no parts, he buys them. Upon completion, you receive a serviceable technique and a several months warranty. You must agree that home appliances repair is convenient and fast.
The scope of services of such masters includes all electrical equipment, but there are masters, for example, who specialize only in the repair of washing machines or other equipment.
- Combined workshops. Which include the features of the two previous formats. These are services that have their own office, but at the same time, at the request of the client, they can repair equipment and on the road. This is the most suitable option for opening an electronics repair business. Having started such a business, you will be able to cover the widest range of client requests and, accordingly, get the maximum profit at the exit.
Guides on How to Start Electronics Repair Business
- Market Research
Due to the characteristic risk of the electronics repair business, it is recommended to carry out market research actions to assess demand and competition in the place where you will operate.
It is very important to make a survey of the demand for your type of service and assess whether the share of available customers makes your venture economically viable. Analyze the main competitors and look for the reason why customers seek these services, and, based on the criteria listed, define their differential and their selling point.
In order to earn its place in the market, it is essential to offer differentials, such as quality service, good pre and post-sale service, service guarantee, adequate structure and easy access location.
- Choose your Niche
To be effective in the electronics repair business, it is advisable to choose a niche area. Choosing a niche area in this industry will make you focus your efforts on building a brand that can compete favorably with similar companies not only in your location, but across the United States.
Here are some niche ideas in the electronics repair business industry that an ambitious entrepreneur can choose if they want to start their own business;
- Repair of consumer electronics (including home theaters, DVD, radio, TV and VCR)
- Repair of computers and office machinery
- Repair of communication equipment
- Other repairs of electronic devices, such as providing repairs and maintenance of dental equipment, providing repairs and maintenance of medical and surgical equipment, and providing repairs and maintenance of optical instrument.
- Target Market
Technical service experience is key. Nobody likes to leave their devices in the hands of someone who does not know what they are doing. So you could start your business focused on:
- Family and close friends.
- Acquaintances of your friends and family.
- Neighbors in your area.
You can offer your services to small companies that always need electronics repair business service for their equipment (photocopy and printing center, video game store, outsourcing companies, institutes and schools that use computers, etc.) and any consumer attracted by your marketing strategies.
4. Choose Location
The location of the commercial point is one of the most relevant decisions for those who want to set up an electronics repair business. Among the several important aspects for choosing the point, priority should be given to population density, the profile of the consumers present there, if the place is on an easily accessible road and is close to bus, subway and parking points, if it has a lot of competition, among others.
Read Also: How to Choose Business Location for Your Business
5. Business Plan
The business plan serves to give the entrepreneur a broader view of the electronics repair business and the market in which it operates. In the business plan you will define issues such as the services you will offer. In addition, the business plan also details the financial and human resources that you can count on for the development of the business.
Summary of the main points of the business plan:
- What is the business;
- What are the main products and / or services;
- Who will be your main customers;
- Where the business will be located;
- The amount of capital to be invested;
- What will be the monthly invoicing;
- How long do you expect the invested capital to return;
- Startup Capital
Once your business plan for your electronics repair business has been completed, you can tackle the final step in the realization of your project: the search for financing.
First of all, you should know that opening an electronics repair business without input seems complicated, because this type of project requires large investments. In addition, if you wish to request a loan from banks to finance part of the development work or the purchase of equipment, they will ask you to have a personal contribution.
Once the question of the personal contribution is settled, you will have to study the different financing possibilities available to you to raise the necessary sum to launch the business:
- You can call on private investors to strengthen your equity
- You can look for help to start a business, such as tax relief.
The construction of your business plan will serve as an argument. You will have to convince that your business will generate sufficient profitability:
- to meet your financial commitments, if you are looking to obtain bank financing
- to justify taking risk, if you use private investors
7. Marketing Strategy
The marketing strategy is an important tool to make the electronics repair business and its services known to potential customers. For the entrepreneur who wants to set up an electronics repair business service, marketing actions can be done in a variety of ways.
Some efficient marketing actions that the entrepreneur can adopt for his business are printed materials, such as folders and flyers for distribution in large centers; creation of profiles on social networks and the creation of a website containing all company information.
As a tip, we recommend the entrepreneur to produce business cards and fridge magnets to deliver to each customer at the time of service or payment. However, it may take a while to establish your name on the market. In the meantime, it is interesting to invest in other ways to publicize your company and attract new customers.
The age of the phone book is behind us, and any business that aims to thrive must have a digital presence. That is why it is important to have a homepage on the internet or a company page on Facebook, which is the social network with the largest number of active users in the world – and it is free. Nowadays people have the habit of searching Google and other search engines whenever they need a repair service. Therefore, if your electronics repair business is not on the internet, the chances of attracting new customers are much less.
Read Also: Developing A Marketing Strategy For Small Business
Traditional media options, such as advertisements in newspapers, magazines, neighborhood newspapers and radio, must be evaluated in terms of cost / benefit, as they usually require a high investment. Digital media, such as Facebook Ads and SEO (optimization of your page on online search engines), can be free or involve more modest costs.
Another traditional option, but one that usually shows positive results, is to distribute flyers, stickers and fridge magnets in stores in the neighborhood where the store is located or in homes and buildings in the region.
Possible ways to increase customer retention
When it comes to business, no matter what industry you choose to put up your tent in, one of the easiest ways to increase customer retention and perhaps attract new customers is to create results and always satisfy your customers. If your customers are satisfied with the delivery of your products and services, they can hardly find an alternative service provider or product.
One of the strategies you should use to generate repeat sales from your customers and also keep them is to ensure that your technicians can do good jobs and are always on time without your customer’s services oscillating. If services and customer services fluctuate, you will probably struggle to get your customers back. You can also use promotional ideas like loyalty schemes, direct marketing and door washing.
Make sure to offer your customers incentives if you want to keep them and of course continue to generate repeat sales from them and also to attract new customers.
8. Tools and Equipment
To carry out repair services in electronics and appliances, it is necessary to have safety equipment, such as gloves, glasses and special shoes for this type of work, in addition to a fan or extractor for the welding area. It is also necessary to plan the benches in a way that facilitates operational work and ensures organization, safety and cleanliness.
On the workshop table, you should have a minimum set of tools and equipment, such as the oscilloscope, a set of Phillips keys, pliers (cutting, universal, press, etc.), tape measure, hammer, drill, power source power supply, welding station with variable temperature, multimeter, single-phase extension and pressure regulator. This is the basic kit for working with electronics, and if there is a budget available, you can invest in even more specific tools for each activity.
Finally, the store also needs management, so it will be necessary to invest in computers, internet, management software, printer, telephone, files, among others.
9. Staff
If you yourself are engaged in the repair and maintenance of electrical appliances, then at the initial stages you will need to hire only a driver and loaders for piecework wages. In fact, you take over the rest of the business process, including communication with the client, the repair process itself, and warranty service. As the business develops, you will need to hire personnel, namely: masters of various profiles, so that you can not only process more orders, but also take new types of equipment for your service. Next, you’ll need sourcing and customer service managers.
Read Also: How to Set Employee Compensation
Mistakes to Avoid When Starting Electronics Repair Business
I am going to share five mistakes that I have observed many times, in the electronics repair business.
Mistake # 1: You think you can learn everything quickly and at once
Some people think that by reading a book on electronics repair business they have mastered everything. That’s a sad reality. We know that there are few electronics repairer capable of repairing everything. But it is also true that for each specific breakdown, there are hundreds of electronics repairer who would solve it better than others. You cannot be specialized in everything.
Mistake # 2: You think you don’t need to invest
Indeed, I am talking about money, but also about time and effort. Every electronics repairer needs tools. The more and the better, the more situations you can handle. But don’t forget that knowledge is also a tool. If you learn to interpret an outline, you will be able to understand and use documents that were of little use to you before. Tools, both physical and mental, cost money. And the few that don’t cost money cost time and effort that you could put into making money.
Mistake # 3: You don’t take action
Most of the theoretical information on electronics will never apply to repairs. That is, you can spend years studying knowledge that will not help you when it comes to repairing. I’m not saying that nothing you study is going to help you, on the contrary. Something that I have realized a long time ago is that to repair you have to learn from practice. You can have a lot of knowledge, but the first interventions are going to cost you a lot.
In addition, when you face real breakdowns is when you realize what you know and what you don’t. This helps you discover what training you need, or what equipment is missing in your workshop. Many people train for years to be able to repair, but never face a breakdown. Others are buying equipment because they have read that they are essential to repair. It also happens that they study all branches of electronics, almost like collecting knowledge. But the reality is that it is the breakdowns that should lead the way. Knowing what you are up against makes you realize where the opportunities lie, and what steps to take. It is very different to dedicate yourself to repairing analog or digital equipment. Repairing audio amplifiers has nothing to do with repairing computer motherboards. Everything is electronic, and the same principles are shared.
But when it comes to repairing, the knowledge, the way to act, or the measurement equipment, will be different. So if you want to dedicate yourself to repairing audio equipment, study that subject thoroughly, and get the most appropriate equipment. Don’t spend time studying computer motherboards, and focus on yours.
Mistake # 4: Maybe you are afraid
Failure to take action is often the result of fears or insecurities, related to the fear of failure. If you are afraid of failure, do not dedicate yourself to repair. Because to repair is to fail, over and over again. You will not be able to repair everything, just as the best of surgeons will not be able to prevent a patient from dying during an operation. Find a way that your failures do not have serious consequences, especially in the beginning.But don’t avoid acting. You will only learn to repair by repairing
Mistake # 5: You are not willing to pay the price.
Being a good electronics repair technician takes time, effort, and money. That is the price you must bear if you really want to dedicate yourself to this. You must be very aware, and reflect on it. If you’re not willing to pay the price, if you’re not really passionate about it, quit right now. Don’t waste your time and dedicate it to something that you are really passionate about. You will appreciate it in a few years.
Conclusion
Starting your own electronics repair business implies making your own commitment, as it is a project in which we put great effort to obtain the best results. In this sense, it is not only about wanting to do it, but about wanting and starting to make it a reality and all of this requires deep planning that allows us to build the map through which we are going to walk with our enterprise.
Therefore, each of our business ideas is designed for you to modify and accommodate according to your conditions and objectives, since each profile is different and market conditions may vary in regions and times.
Remember that these ideas can be supplemented with our advice section, where you will find a large number of guides and tools to continue strengthening your business idea. The first step is always the most difficult, if you got this far, you have already taken it. What are you waiting for to continue?