Opening a mobile phone store is a viable investment given the current market for cell phones and related products. Technology is advancing rapidly and new phones are always being released. Fierce competition from manufacturers and service providers keeps customers buying new products. Opening a cell phone store is not unlike any other business. A business plan, a business structure, insurance and registration are needed. The most important component is the supplier: this will determine much of the business's success.
Things you need
Incorporation papers and registration
Handle the paperwork. Incorporate the business by submitting papers of incorporation with the city. Register the business as well. Purchase business insurance, in case the business is sued or burns down. Write the business plan. The business plan is a highly detailed plan of action that describes exactly how the business will start up and operate. Include detailed costs and financial figured as well as marketing and financial projections.
Decide on the type of mobile phone shop. There are two types of mobile phone stores. Authorised retailers and third party retailers. Authorised retailers are licensed franchises that sell exclusive products associated with one service provider. For example, Orange and T Mobile would all have authorised dealerships. An independent dealer can offer whatever products they want and are not officially affiliated with one company although they may carry their products and services. It comes down to owning a franchise with less risk and more limitations or owning an independent business with more risk and no limitations.
Purchase supplies. If the store is a franchise, then the supplies of the store will be purchased from the franchise parent company. If the store is not, the retailer will need to purchase phones, accessories and parts directly from the manufacturers. Often these manufacturers exist abroad (in the case of accessories) and finding them might require some work and searching online. Contact equipment manufacturers (Nokia, Motorola, Siemens) and find out how to purchase equipment from them. Try to gauge what models will be popular and appeal to various demographics by offering a variety of phones.
Open the store. Select a location with high visibility and walking traffic. A mall or shopping promenade is ideal. Try to pick an area that has very little competition. Customers are not interested in travelling far to go to the cell phone store especially when alternative retailers exist closer to them. Hire employees to meet demand and market the business online and locally through direct marketing (flyers, ads.).
Things you need
- Business plan
- Incorporation papers and registration