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 when you’re determined to open one such Mobile store.
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 – https://reg.gst.gov.in/registration/
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/
Know what other Mobile Shops sell.
✔ 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.
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.
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 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 store item list and never cross it.
Learn about the day-to-day activities of a Mobile Shop Owner
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!
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.
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.
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.
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.
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.
Choose your selling price wisely.
✔ Offer discounts on basic products such as earphones, mobile covers, screen guards and recover the profit margin through minor products.
✔ Never make the mistake of overcharging customers on commonly used commodities like Mobile Cover & screen guard. They will certainly not end up dealing with you and alert their connection too.
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, they return back, they may start recommending your Mobile Phone business to their connections too. This is very likely to happen.
Provide a one-stop-shop for your clients
✔ Have all the items your customers need. Make sure that they don’t have to go shop for anything else in any of your competitors’ shops.
✔ Talk to your suppliers so that they avail any items that may be on-demand but are missing from your Mobile shop as quickly as possible.
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
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.
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