There’s nothing like the thrill of starting your own business. But where do you begin? The possibilities are endless! For many people, a mobile cell phone repair business is an appealing option because it’s relatively low risk and offers a variety of service types for customers to choose from.
Depending on your location, there could be hundreds of cell phone repair businesses to choose from in your area. However, the following are some of the most popular business models.
Cell Phone Repair Business Formats
There are two basic formats for starting and running a cell phone repair business: franchise and sole proprietorship/one-person operation. The franchise model has been around for decades, while the sole proprietorship/one-person operation is a relatively recent innovation. A franchise is an agreement between two or more parties that requires the original owners to financially support new operators by signing agreements with contract manufacturers to supply equipment and services, which may include advertising and support staffs (franchises tend to be more profitable). The franchise model is very popular with most large corporations.
A sole proprietorship or one-person operation, however, is a legal entity owned and operated by one person (sole proprietorships are limited to individuals). With a sole proprietorship, you are the only employee and owner. In order for you to be considered an employer under the Fair Labor Standards Act (FLSA), your business has to meet some minimum standards of profitability, which include keeping payroll records (including hourly pay) and reporting the wages you pay to all employees to the IRS each quarter. A sole proprietorship also must have a federal tax identification number (EIN) issued by the IRS.
There are advantages and disadvantages to both models. From a financial perspective, a one-person operation is more appealing because it offers the potential to earn the maximum amount of profit. If your business makes a loss, you only have to pay taxes on that loss. For example, if you made $5,000 in profit this year and $3,000 of that was considered loss (the $5,000 earned minus the $8,000 spent to run your business equals a negative $3,000), you only would have to pay taxes on the positive part of your earnings ($2,000). However on the flip side, franchising is more secure because there is less risk involved and often lower startup costs.
The problem of broken cell phones has become rampant in recent times, with people struggling for their lives as the phone falls out of their hands or slips from their fingers. Cell phone repair is a new service that is quickly growing in popularity. Rather than making a long trip to the local repair shop, there are now options online that can be done by anyone with enough technical skills and equipment.
Many people are trained in Phone repair
Business structure is important because it will determine what your tax obligations are as a new business owner as well as how you must deal with your employee needs. For example, sole proprietors are not required to pay or withhold anything from their employees, but they do have to pay themselves at least a minimum amount. In the case of a franchise, the franchiser is responsible for paying and withholding taxes and can require all operators to do the same.
If you plan to be successful and profitable, you’ll need a plan for customer service and good customer relations. Once your business is up and running, you’ll probably be able to handle most customer problems without assistance from a third party, but that doesn’t mean that customer service isn’t important. In fact, it is probably one of the most important aspects of any business. You want to maintain your highest level of satisfaction with each and every customer.
Customer service is something you should already have in place and be able to operate without the aid of a third-party training company. Some business owners start with someone they know, like a relative or roommate, to help with training and then open up their own business as a partnership. Other people are able to start off as independent subcontractors to other work at home companies, which is not only a great way for you to gain experience but it also sets you apart from others looking for the same position.
Your Key To Success: CELL PHONE REPAIR
Everyone enjoys an easy to use and reliable cell phone. It seems like the perfect device, but it’s been a curse for many. Cell phones break more frequently than other types of electronics because they are so expensive and delicate. Businesses spend hundreds if not thousands of dollars making sure their cell phones are always in working order, but what about yours? Not being able to call for help when your phone breaks can be extremely dangerous for you. Cell phones can break for a variety of reasons, from simple accidents to poor repair work. Fortunately, there are plenty of things you can do to keep your phone working the way you need it to be.
There is nothing that will guarantee your cell phone will last for years, but with some careful attention to detail repairs and maintenance, you should have great results. There is no reason why your eventual replacement cell phone should be less than perfect. If you know how to approach repairs right away, you can save yourself hundreds if not thousands of dollars in repairs later on. Here’s how:
Be aware of your phone’s warranty: Many companies offer warranties on parts and even labor on their phones. If you’re not sure if your phone is covered, check with the manufacturer or a store where you bought it.
If your phone is covered by warranty, find out what choices you have: If your cell phone is under warranty and it has problems, most manufacturers will replace the phone or give parts to fix it. They may also offer different ways of fixing the problem. Be on the lookout for these options to keep from paying too much for repairs that could be fixed for free at home. Some companies will send a replacement phone once one breaks with no questions asked; others might charge you a fee of $50-$80 to do so. If there are different costs depending on how bad the problem is, choose wisely.
If your phone is not protected by warranty, make sure you take care of any problems immediately. Most cell phones will last longer with peace of mind.
Be wary of third-party repairs: Cell phone repair companies tend to charge a lot more than the manufacturers do. Many times it’s more cost effective to handle repairs yourself. Keep in mind that cell phone repair is a very delicate process and some people have a hard time handling this type of work, so be sure that you can handle these tasks before you start to charge on your own. If you don’t know how to fix your own phone, take it to an expert instead of trying to fix it yourself at home.