An estimated 6.5 million people worldwide own a mobile phone—this is expected to increase to 7.7 billion by 2028. Starting a phone repair business can be a lucrative commercial opportunity, given the growing reliance on smartphones and the constant need for repair services.1 According to a report by Allied Market Research, the global mobile phone repair market is set to reach $19.3 billion by 2026.2
However, like any business venture, it requires careful planning and execution. Here are some steps to take and things to consider to help you set up a successful phone repair business.
Understand Your Market
The first step is to do your research. Take time to understand your market, target audience and competitors already operating in your chosen area. Spending time at this stage will prevent you from making costly mistakes further down the line.
Write A Business Plan
Develop a comprehensive business plan that outlines your business goals, target market, services offered, pricing strategy, marketing plan, budgets, financial projections and timescales.
Consider Your Business Model
As part of your business plan, consider your business model and what phone repair services you can and will offer. There are different options:
- Retail repair shop—physical stores that offer repair services for phones, tablets, and other electronic devices.
- Mobile repair services—on-site device repair services, often at the customer's home or office.
- Mail-in repair services—customers can send in their damaged devices to be repaired, and then the fixed device is returned by mail.
- Wholesale repair services—businesses that offer bulk repair services to retailers, manufacturers, and insurance companies.
Will you offer a broad range of services, including screen replacement, battery replacement, water damage repair, and software troubleshooting? Or will you specialise in more complex repair issues?
Consider offering additional services like selling phone accessories or providing phone unlocking services.
Find The Right Location For Your Business
If you decide to have a physical location for your business, choose an accessible place for your repair shop, ideally in a high-traffic area or near shopping centres or electronics stores.
Making the decision to rent or buy business premises isn’t always straightforward. While your budget will largely determine if you can afford to buy business premises, deciding to buy or rent also depends on the type and size of your business. Before deciding, consider your needs as part of your business planning process. This should detail how you expect your business to grow, factoring in leasing premises or mortgage repayment costs.
Buying Equipment And Ongoing Costs
Your planning process will include budgeting and set-up costs. Some of the equipment and supplies you’ll need to start your mobile phone repair business include:
- Repair tools and equipment—invest in high-quality repair tools and equipment, including specialised tools for different phone models.
- Parts and components—such as phone screens and mobile phone batteries.
- A computer and printer for invoicing and record-keeping.
- A website and social media presence to market your business.
Do you need a repair technician, or are you skilled enough to do the work yourself? You might decide to employ someone to manage your accounts or to market the business.
Your repair shop will be loaded with repair parts, accessories and tools. You’ll have new stock coming in and old stock that needs to be replaced. There’s inventory management software available that can reduce errors and keep records of all processes and transactions.
Inventory management involves tracking and organising all the relevant details related to the products you use. From acquisition and storage to sales completion, accurately monitoring and managing these details at every stage will ensure you always have the products you need to carry out repairs. It’ll also streamline manual and automated tasks and minimise your operational costs—factors that add to an efficiently run business.
Establishing relationships with reliable suppliers for replacement parts and tools will contribute to the success of robust inventory management. This could help ensure that you avoid over-ordering or running low on vital stock.
Building Your Online Presence
Even if you decide to open a physical store, having a digital presence will help widen your customer base and increase footfall in your store.
Aim to incorporate a digital marketing strategy that offers bookings, special customer requests, and in-store appointments where necessary.
Make sure you claim and verify your Google Business profile and optimise it by completing your business information, selecting appropriate categories, and displaying pictures.
Online reviews build trust in your service, so ask your customers to share reviews for your business on Google and other platforms such as Trustpilot and Feefo. Advertise these and link to them on your site wherever possible.
Social media platforms can be a great place to raise awareness of and drum up interest in your business. Let potential customers know about new offers, and add to your Google rankings.
Protecting Your Mobile Phone Repair Business
Having the right insurance coverage is crucial to ensure the safety and long-term success of your mobile phone repair business. Protect your business from unforeseen financial setbacks from accidents, liability claims, or property damage. Types of insurance include:
- Liability Insurance—safeguards against claims from third parties for bodily injury or property damage.
- Property Insurance—provides coverage for damage to the physical location of your business, as well as its equipment and inventory.
- Business Interruption Insurance—in the unfortunate event of a temporary shutdown due to a covered incident, such as a fire or natural disaster, business interruption insurance offers financial protection.
- Professional liability insurance—covers claims that may arise due to errors or omissions in the repair process.
- Employers liability—as well as being a legal requirement if you employ staff, this insurance provides financial protection in cases of on-the-job injury or illness.
To find out about the insurance covers we have available for mobile phone repair businesses, please click here.
Quotes from well-known and specialist insurers, including: