Is it Profitable?
A phone repair business is indeed profitable with the right management. Your potential revenue could reach $1.44M per year with a gross margin of 90%. An average repair business earns between $50,000-65,000 yearly, with opportunities to increase earnings based on reputation and service offerings. Fixing and reselling devices like broken iPhones can also contribute significantly to your income.
To assess profitability, ensure you earn more than your expenses within 9 months. Maintain a record of your monthly expenses and income to help meet your goals.
Starting Up and Skills Required
For starters, plan your business, form a legal entity, register for taxes, open a business bank account, and set up accounting. Acquire repair skills, such as microsoldering, and consider taking repair courses to increase your expertise and service offerings.
You’ll need tools like nylon spudgers, tweezers, screwdriver sets, triangle opening tools, and precision knives. Start with 5-15 pieces of common parts to repair and serve customers while waiting for additional inventory. With startup costs ranging from $100-$500 for part inventory and similar for tool inventory, it’s accessible to get started.
Diversifying and Marketing
Expanding your services to include gadgets, gaming systems, and music gear can open new revenue streams. Offering phone and data plans via third parties also contributes to profitability.
Marketing is vital for success. Effective marketing strategies alongside excellent customer service, building relationships, and soliciting feedback from customers will help your business thrive. Stores can also increase revenue by selling accessories like screen protectors, cases, warranties, headphones, wearables, and offering repairs for more than just cell phones.
Side Hustle Potential
Starting a mobile phone repair business can be lucrative. As devices become more complex, owners seek reliable repair services. The startup costs are relatively low compared to the potential profits, and focusing on providing quality parts and services at fair prices will build customer loyalty.
Remember to open a separate bank account for your business finances to ease tax preparation and income tracking. Enhance your profitability by partnering with manufacturers and providers to sell new devices and accessories. Use dropshipping to complement your own stock without requiring significant inventory investments.