Mobile has become a very basic need for people all over the world. Everyone uses a smartphone, even small kids are obsessed with it. Mobile has become an entertainment medium more than its basic use which is to connect with others.
Interest in mobile phones and the number of mobile phone brands entering the Indian market has steadily risen over the last decade. With new players like JIO entering the market and releasing cheap data plans.
Undoubtedly, the Mobile Shop business is one of the best small business ideas to start in India.
Although a good performing Mobile Shop makes an average net profit of 20% on its daily sales, 80% of those who get into this business close their Mobile shop in less than 2 years due to losses and cash-flow problems. Additionally, Mobile shops have cut-throat competition for the reason that there are minimal barriers to entry. But at the same time, when looked at the given past, and recent past trends, the future for this Mobile shop business looks very rewarding and profitable if done right.
Here are a few steps that guarantee success and help you figure out how to open a mobile shop in India?
1. Get your Mobile Shop licensed
Even small mobile stores staffed by one to two persons typically do over Rs.10 lakhs of sales in a year. Hence, it’s best to start the Mobile store as a Limited Liability Partnership (LLP). In case there are plans to establish larger mobile stores in places like malls or to sell online through e-commerce portals like Flipkart, Snapdeal or Amazon, its best to incorporate a company.
Get your GST registration done. You can easily do this on GST portal.
If you wish to import mobile accessories from other countries like China, owing to cost advantages, it is advisable to get you IE code also – https://dgft.gov.in/
2. Know what other Mobile
✔ Make a list of Mobile accessories that are commonly sold in your surroundings. Mobile phones are not your only option. Consider offering related products and accessories, such as headsets, cables, chargers and memory cards. These will bring in additional income and provide customers with everything they need in one place.
✔ Markdown those mobile accessories you can manage to buy & sell if you set up such a Mobile shop business.
✔And be careful about your customer segment, get an idea from your what you observe, find out which price range is selling more in your store. This is a very useful mobile shop business idea, because, sales vary greatly on the economic condition of your area or customer.
3. Know your Products well
✔All the people are not technical expertise, but as a mobile handset seller, you have to have good knowledge about all the brand and handset. People love to buy from an expert who can elaborate on all the feature pros cons when the customer is comparing with two or three sets.
4. Understand the Market before Committing your Money on the Cell Phone business
✔ Mobile Phone Business may be one of the best business to start in India. But, do learn about competitors that are already on the market.
✔ The first step in dealing with competition is to avoid it in the first place.
✔ Secondly, decide on your mobile shop budget. How much money are you willing to spend to enter the market?
✔Remember, never test the depth of the river with both the feet. Know your investment limit on Mobile shop item list and never cross it.
5. Learn about the day-to-day activities of a Mobile
In reality, Mobile Phone Shop Ownership requires a hands-on approach. Get to know
✔ How does your typical customer look like?
✔ What is your survival & growth potential in the market?
✔ What are the approximate upfront and initial operation costs to bare?
✔ Any legal considerations, and more!
6. Identify places with ready (and growing) Market Potential
✔ Firstly, locate the area with lesser competition for your Mobile Phone Shop & reasonable demand for Mobile Phone & Mobile Accessories.
✔ Secondly, you need to aware of the latest trends and ruling prices of the industry.
7. Find your Space to set up your Mobile Store
A space of about 10 x 15 square feet or about 150 square feet is required for setting up a mobile store. The store must be suitably equipped with display cases, lighting, cameras, and air-conditioning (if needed).
It is necessary for a long counter of 8 x 3.5 feet on the left side with glasses that are in front and top portion and on the back wall of the counter that makes two to three good view cupboards with glass and all should be completely decorated as well as with lightings.
8. Get Flexible by Accepting Payments through different Modes
Some customers deal with credits and some pay instantly by cash. It’s important to offer customers a variety of ways to pay you as some customers are comfortable with credit terms in order to do business with you.
If you’re strick on your payment terms, you might piss them off.
9. Advertise locally well
Mobile stores mostly expect local clients. Therefore, advertising for Mobile Phone Business can be done one of several ways, including billboards, Yellow Page ads, flyers, and email marketing to an existing customer list.
So, want to be a popular and a go-to Mobile Phone Retailer? Spread out a word about your business.
10. Invest in Fast-Moving Products
Because the Mobile Phone business is quite capital heavy– you may have to invest mostly in fast-moving products to be on the safer side.
Invest in varieties of headphones, Screenguards, Earphones, Mobile phone sets, power banks, Mobile covers, Bluetooth and much more.
11. Choose your Selling Price Wisely
✔ Offer discounts on basic mobile accessories products such as earphones, mobile covers, screen guards and recover the profit margin in mobile phone business through minor products.
✔ Always remember never to make the mistake of overcharging customers on commonly used items/commodities like mobile covers and screen guards. If you do this they will definitely not deal with you and will alert all their connections as well.
12. Encourage Convenient Shopping
Allow customers to pay you using PayTM, GPay, Cash, Credit Card, etc. When they go low in cash, allow them to pay later. When customers are satisfied with you, they definitely come back, it may even happen that, they start recommending your mobile phone business for their connection as well. Keep in mind, this is very likely to happen.
13. Provide a one-stop-shop for your Clients
✔ Have all the items your customers need. Make sure your customers don’t have to go to any of your competitors’ shops to buy anything.
✔ Talk to your suppliers so they can take advantage of any items that may be on-demand but are missing from your Mobile shop as quickly as possible.
14. Manage the Inventory of your Mobile Store
Ideally, you should have a look at your stock level every week – this will help you understand which items are “moving” fast off the shelves and which ones need urgent restocking.
You may need to use the Inventory management App like “Vyapar” to track your inventory well. It automatically alerts you when a fast-moving stock goes low in number. Never let customers go back disappointed due to “Out of Stock” issues.
Provide after-sales support too
After selling a product if any problem arises it’s not your responsibility to guide your customer. Try to fix the problem.
Even you can get tiny requests like installing apps, set it. This will give you a chance to make a good customer relationship.
“Quality” is the best Business plan after all.
Frequently Asked Questions’ (FAQs’)
# Is mobile repair a good business?
Yes, if managed properly, a mobile phone repair business can be quite profitable for any trader and can earn you a lot of money. However, it is also important to provide good quality spare parts and service to turn it into a reputed enterprise. Also you can ask for customer feedback to improve it further.
# Which is the best smartphone company of 2021 in India?
Here is the list of top 10 smartphone companies of 2021.
- Samsung
- Xiaomi Mobile
- Lenovo (including Motorola)
- Vivo
- Oppo
- LG Mobiles
- Apple
- NOKIA
- OnePlus
- HTC
# How much does it cost to start your own mobile store?
It always depends on the business owner how committed they are to their business, the amount required to start and operate a mobile shop varies, but usually the shop vehicle is the biggest expense. After some research it was found that the total investment of a mobile shop is around Rs. 3, 00,000 to Rs. 4.00,000.
# Is selling Cell Phone/ Mobile Phone accessories profitable?
Starting a cell phone accessory business is a great idea. It can be highly profitable and highly competitive. However, if you can find a location with limited competition or build an online presence ahead of your competitors, you can build a profitable small business selling cell phone accessories.
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