Starting a Cell Phone Sales & Repair Business


 Make Market Feasibility and Research

Economic Analysis

Before venturing into the cell phone business as an entrepreneur, you would need to be sure that it is the business you intend doing. First you would need to carry out a thorough research into the industry, so as to determine which field you would be best at.

If you intend to start big, you would need to carry out an understudy of similar companies that have done well and how they do what they do to remain relevant. Apart from knowing what field you intend going into and planning for it, you would need to make plans on how you intend to attract customers from other businesses to your own.

Cell phones were once seen as a luxury item but now are seen as an essential commodity and even though there have been economic downturns, the industry has had just a slight dent unlike other industries that have gone down during economic downturns. It is important to note though that the market is seen as mature in the United States, and so you might need to ensure that your company will provide an added service that customers will be unable to resist.

Is the Cell Phone Business Worth Starting from Scratch or is Buying a Franchise Better?

Franchising comes with opportunities that a start-up might not have. For one, a franchise offers a brand that start-ups struggle for years to have. A good brand can easily make or mar a business that is just starting out. Also, when purchasing a franchise, you purchase a system that is already in place, and so would not have to worry about things like getting customers, or breaking into the market place. However, whilst a franchise might work in various industries, it is not so common in the technologically inclined industry of cell phones.

This therefore means that any franchise that might exist in this industry might not be worth it, and this would mean that you would need to start from the scratch for this business. Customers in the tech industry aren’t moved by the franchise brand names; rather they are moved by the kind of carriers your cell phone business carries, and its superiority in services as compared with other similar cell phone businesses. This means that not only would you need to start from the scratch, but will have to draw strategies at attracting and retaining customers.

Possible Threats and Challenges You Will Face When Starting a Cell phone Business

All businesses face challenges and threats from the start and throughout the life of their businesses. Facing the challenges of a business is totally expected for an entrepreneur, and the way you handle your challenge or threats from competitors will determine if you remain in business and thrive or fail.

Challenges might come from the economy, from declining customer base, or from your competitors, as an entrepreneur you will need to be constantly proactive so as to stay above your challenges and threats.

Starting a Cell Phone Retail & Repair Business – Legal Matter


  • Demographics and Psychographics

The demographic and psychographic composition of those that use cell phones include professionals, students, the general public, children in age groups of between 10 and 17, as well as service organizations and other companies that need to be in touch with their employees and clients.

Most of the people who use a phone are usually those that are able to afford it, but since carriers usually have different packages that can accommodate any budget group, it therefore means that more people irrespective of class and age own a cell phone.

  • List of Niche Ideas within the Cell phone Industry

There are clearly a lot of niches in the cell phone business industry, even though there are clearly services or areas of specializations that cannot be differentiated, due to its uniformity of services. The key to thriving in this kind of industry is in offering a specific niche that will enable your company stay in business irrespective of the size or scale of your business.

Some of the area of specialization that exists in a cell phone business includes;

  • Sales of mobile hardware and accessories
  • phone maintenance services and repairs
  • mobile applications
  • mobile money services
  • Software and such other kinds of services.

If your business is a small one, you might not find it easy to offer many services and will have to stick to a few that you are quite skilled in, you should however be aware that larger cell phone companies will  offer more services than your business would, especially those that have long been in existence.

The Level of Competition in the Cell phone Industry

Due to low entry barriers, competition in this industry is quite stiff and most businesses that haven’t been able to innovate or offer something completely new have failed. Which is why before going into this business it is better you carry out a thorough research that will ensure that the field you intend going into in your region, has less competition for you to battle with.

If however, you intend going into a popular but crowded field, then you would need to not only be proactive but offer what most of your competitors aren’t offering. This is not to say that in offering something unique will prevent the larger companies from offering it and staking a claim in your market share, but if you are proactive and good to your customers, you will still get to retain most of your customer base and revenue.

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