Looking to open a retail cell phone store? here is a complete guide to starting a cell phone retail business with no money and no experience .
Ok, so we have provided you with a detailed example of a mobile phone. Retail store business plan template. We also took it a step further by analyzing and writing a sample cell phone retail store marketing plan, supported by actionable guerrilla marketing ideas for cell phone retail stores. In this article, we will cover all the requirements for starting a cell phone retail business. So put on your entrepreneur hat and let’s move on.
Why Start a Cell Phone Retail Business?
The mobile phone market is a market that has not only exploded, but has grown significantly and steadily. If you are an entrepreneur looking to get into this industry, you might find it is a very profitable business. As with any business, it is very important that you conduct thorough market research in the industry. Doing market research will allow you to determine which niche you prefer, the number of competitors in that niche, and the strategies you have to set yourself apart and be competitive. your competition.
By doing market research, you will also be able to identify which vendors you should be working with, especially when it comes to the inventory you will receive for your business. You need to know if you are going to have cell phones available that are only supported by an operator; if this is your intention, you may need to contact the operator and find out what franchise options are available. Style
However, if you want to expand your target market, you may need to contact and maintain relationships with multiple operators. In addition to storing cell phones, you may also need to purchase cell phone accessories from your store. Once you have completed all the necessary research on the business, you can write a comprehensive business plan on the subject.
Finally, it is very important to create a marketing plan for your mobile phone retail business, as marketing not only helps generate the income needed to boost and grow the mobile phone retail business, but also helps to make your company known to potential customers, competitors, operators in the sector, suppliers. and suppliers, as well as other stakeholders in the industry and beyond. You need to be creative in your marketing strategies because despite the huge and growing cell phone market competition is fierce thanks to the many operators in the industry.
Business A Complete Guide To Opening A Cell Phone Retail Store
- Industry overview
Wireless carriers in the United States have successfully penetrated approximately 50 percent of the entire industry. As the growth of the industry has slowed, the competition has become fierce and industry analysts estimate that market penetration will reach at least 60% in 2014.
In the United States of America, there are over 98,000 mobile phone stores that are for sale or for rent. In the past five years, revenues have exceeded $ 88 billion. The tremendous growth of the industry has seen the emergence of new mobile operators.
Despite the slowdown in the strong growth of the industry, according to a report from Deloitte, further growth of the industry is expected by 2021, as the penetration and use of mobile phones is expected to continue to increase.
According to a report by the Global Mobile Consumer Survey (GMCS), mobile phone consumers in the United States of America look at their devices more than 9 billion times a day. Smartphone sales are still strong, reaching 10% penetration each year. This is due to the fact that consumers aged 45 and over have started to register a high percentage of growth.
Statista reports that in 2015, the number of people using cell phones exceeded 4 billion. This figure is expected to approach 5 billion in 2021. Mobile telephone subscribers are expected to reach 7 billion by 2015.
However, according to various reports from Ericsson Mobility, the number of users by 2015 will reach 2.6 billion. with the hope that by 2021 it will exceed $ 6 billion. Globally, the mobile phone market has seen a surge in South Korea, with penetration reaching 88% by 2015, according to the Pew Research Center. Other countries with increased penetration include Australia, Israel, the United States and Spain
According to IBISWorld, the industry has $ 74 billion in revenue per year, although the industry grew 1.1% between 2011 and 2016. There are over 52,000 cell phone retail stores in the States. United of America and more than 330,000 employees.
The weak growth of the industry is due to the economic slowdown, which not only slowed the growth of consumer confidence, but also affected its disposable income. Another factor that has influenced the growth of the industry is the intense competition from existing operators as well as newcomers to the industry.
According to the Smartinsights report, more than 80 percent of those who use the Internet have a smartphone; and by 2021, according to eMarketer, more than 2.56 billion people worldwide will have smartphones, or at least an ordinary cell phone.
A study by Google Mobile Search Moments indicates that approximately 77% of searches are carried out on mobile devices. mobile phones, and this comes from people, while about 17% of searches on mobile come from people on the go. An independent report from 2014 indicates that there are more mobile devices in the world than there are people in the world, and that mobile marketing will bring in around $ 400 billion by 2014.
The explosion caused by the cell phone retail store has helped to create a market for cell phone accessories not only nationally but also internationally. Globally, the cell phone accessories market is expected to reach a high CAGR of nearly 7% during the decade (2015 to 2025) in key regions such as North America, Latin America, Western Europe, Eastern Europe and the Middle East. Asia-Pacific zone. Japan and Africa. The industry is experiencing major trends such as increasing mergers and acquisitions, new product development, product promotions and product portfolio diversification.
According to comScore Mobile Metrix, while most people use PCs during the day for their main job, the smartphone is completely dominant and is increasingly used by consumers at night; this has resulted in increased viewing times on these smartphones.
In the United States, the duration of digital media on mobile devices was significantly longer than on desktops – 51 to 42 percent. However, despite this fact, cell phones and desktops are equal when it comes to retail.
Launch of a mobile phone retail store. Market studies and feasibility studies
- Demography and psychography
The demographic and psychographic makeup of those who use a mobile phone is not limited to young people, adults and the elderly, as many young people have cell phones and need them to connect and stay connected.
Even though most of the people who own a phone are usually the ones who can afford it, a lot of people can’t get them for financial or other reasons, and they have people buying them for them.
List of niche cell phone retail ideas you can specialize in
Cell phone retailing covers a range of segments. It is therefore necessary to understand the size of this market before going into business. This will allow you to determine in which niche you will stand out the best.
Customers are interested in products in this market: size, device capabilities, support and affordability. their budget. Therefore, niches that can make you stand out in the industry are very necessary; if you intend to differentiate yourself in a highly competitive environment, you will need to choose a niche that is right for you.
Thus, retail cell phone stores may decide to allocate capital in these key areas;
- Retail Cell Phones
- Sale of accessories for mobile phones
- Mobile phone maintenance and repair services
- Creation of mobile applications
Level of competition in a retail cell phone industry
The level of competition in the retail cell phone industry depends primarily on the location of the business, as most customers want to physically see the cell phones they are buying. Therefore, to be able to compete effectively with other retail cell phone stores, you must physically locate yourself.
This does not mean, however, that there are no entrepreneurs who do not have a physical store but are still able to compete with others through their e-commerce or virtual stores. While customers want to be able to physically see what they are buying, they don’t mind ordering what they haven’t seen on the internet as long as it matches the specifications they are looking for on a mobile phone. Therefore, if a cell phone is on budget and has the desired specifications, customers are ready to physically go to a store or order a phone through an online store.
The cell phone retail store segment in the United States is extremely competitive, not least due to the low barriers to entry for future operators, which has led to the opening of many cell phone retail stores. . Therefore, if you decide to start your own mobile phone store in the United States of America, you should try to thoroughly study the market as well as industry trends in order to stand a chance against your competition.
List of famous brands in the mobile phone retail industry
The cell phone retail industry in the United States of America and even around the world is full of competition which makes it difficult for brands to stand out. However, there are a few cell phone retail stores that have become quite popular in the United States of America due to their marketing and advertising strategies, seniority in the industry, and status in the industry. Mergers and Acquisitions.
Some of the most well-known cell phone retail stores in the United States of America are:
- BrandsMart USA
- Best Buy mobile stores
- US Mobile
- Thread of life
Mobile phone The market in the United States of America is undergoing huge changes as the industry is not only saturated, but has forced (wireless) operators to seek to end the subsidy model due to a lack of innovation in an industry dominated by two operating systems, which is means that customers have to face less choice, resulting in the decline of the industry.
The use of mobile phones is more and more widespread in countries like Indonesia, China and Brazil, and this is due to the increase in internet penetration, as well as the growing popularity of platforms. of social media in the above countries. In addition, the upward trends in mobile shopping and online banking have catalyzed a strong demand for mobile phones, especially smartphones, and also fueled an increase in demand for mobile accessories.
The growing need for mobile phones has created a growing opportunity for other subsectors of the telecommunications industry, even for operators such as wireless and broadband infrastructure companies and device manufacturers. For example, operators have focused not only on providing reliable and quality voice services, but also on providing data.
Start your cell phone retail business from scratch and buy a franchise
Starting your business from scratch or buying a franchise should depend on your business goals and objectives. If you want to gain a foothold in your business and control important business decisions, you will need to start your business from scratch.
Keep in mind, however, that starting a business from scratch can be much more difficult, especially in the mobile phone industry, where you will face excessive competition from those who already exist and who have established strong relationships with suppliers and suppliers.
Buying a franchise gives your business more options than starting a business from scratch. A franchise makes the tough decisions of running a business and lets you focus on other aspects of your business, such as attracting customers and generating income for your business.
That’s not to say that buying a franchise won’t bring your business down; This is why it is imperative that you conduct a thorough investigation of the various franchise offerings and check what they offer to make sure they match your business goals and objectives.
Threats and Potential Challenges You Face Opening a Cell Phone Retail Business
Every business faces threats and challenges at all times; therefore, you need to make sure that you are sufficiently prepared for whatever may happen. If you are not prepared for the threats and challenges, your business could fail. That’s why it’s usually a good idea to conduct a thorough market research to get an idea of what to expect when starting or running a business.
Some of the threats and challenges you should expect when starting or running a retail cell phone business; an economic slowdown that could lead to lower consumer confidence, forcing them to spend less than they should. The other threats are the challenges facing existing competitors and new market entrants, as well as changing technological trends and innovations in the industry.
Legal issues with opening a retail cell phone store
- The best legal entity to use in this type of business
There are mainly 4 legal entities in the United States of America; a sole proprietorship, partnership, corporation and limited liability company (LLC). Each of these legal entities has its advantages and disadvantages. It should be noted that if you choose the sole proprietorship, for example, you can move to a more established legal entity as your business grows.
In one legal entity – an entrepreneur who owns all aspects of the business and all actions and decisions related to it. In a sole proprietorship, all profits and losses revert to the owner, and in the event of an owner’s bankruptcy, the owner will be held liable for any debts the business may have incurred.
In the form of a partnership with a legal person, two or more people usually come together by agreement, orally or orally, and agree to run a business. The advantage of a legal person in the form of a partnership is that tax is paid on the income received from the partners.
In a corporation, the business is treated as a separate entity from the owners, who are called shareholders. ; therefore, it means that the business cannot be sued. The creation of such a legal entity is not always easy because it involves many formalities and procedures.
The entrepreneur mainly considers two types of companies; S corporation and C corporation. Finally, LLC is another form of legal entity considered to be a hybrid. Indeed, the LLC combines the tax advantages of a partnership and a separate company.
Catchy Business Name Ideas Suitable For Cell Phone Retail Businesses
Here are some catchy names that will work for you if you are about to start your own cell phone retail store;
- Phone Mart Inc
- Phones available
- Buy Mart Phones
- 24/7 phones and accessories
- Walworth Phones
- Endgage Cell Phones
It is in your best interests to have insurance policies for a retail cell phone store, and therefore recommended for entrepreneurs intending to do business in the United States. America to buy it. The reason it is mandatory is that the insurance policy helps protect the business and its owner from any visible and unforeseen circumstance, especially in the course of business activity.
It is not easy to know which insurance policies to choose. You should therefore use the services of an insurance agent or broker to help you choose the insurance policies that are right for your business. Here are some of the main insurance policies to consider when purchasing. if you want to start your own cell phone retail business in the United States of America;
- General liability insurance
- Workers’ compensation insurance
- Errors and omissions insurance
- Group insurance for business owners
- Professional liability insurance
- Car insurance
- Payment protection insurance
- Health insurance
Protection of intellectual property / registered trademark
Retailing of Mobile Phones The retail business deals with the sale of mobile equipment and accessories and therefore does not require enormous intellectual property protection. However, since most businesses use the internet to promote their business, it is imperative that you make an effort to ensure that your business name, domain name, logo, concepts, and any other material you deem important to your business are intelligently protected.
To apply for intellectual property protection for your business, it is best to hire the services of a lawyer who has the necessary experience in the field to help you apply.
Is professional certification required to operate a mobile phone? Retail business?
Obtaining the necessary professional certification in business is very important, as it not only helps to increase the credibility of the business, but also helps the business to stand out and compete profitably, especially in a very high environment. competitive.
However, cell phone retailing does not require professional certification except that you are about to enter a niche that will require some sort of certification. …
List of Legal Documents Required to Run a Cell Phone Retail Store Business
It is assumed that any company established in the United States of America will have acquired the necessary basic legal documents that would allow it not to encounter any problems with the law. If you do not understand the legal documentation that you will need for your retail cell phone business, you may need to hire the services of an accountant or lawyer to help you with the proper documents to get started. your company.
Some of the basic legal documents you will need to successfully run a retail cell phone business in the United States of America include:
- Registration certificate
- Operating contract
- Commercial license, certification and authorization
- Business plan
- Insurance conditions
- Contract document
- Hiring contract
- Non-disclosure agreement
- Seller’s tax authorization
- Employer Identification Number (EIN)
- Federal tax identification number
Financing a Retail Cell Phone Business
When it comes to the finances needed to start a business, you can use your personal funds. or an external source of funding. The truth is that most entrepreneurs looking to start a business rarely have all the funds needed to run a business and therefore usually find external sources of funds.
Finding start-up capital from third parties to run your business It’s not easy for any entrepreneur, but it is a task ahead, especially if you are looking to make your business a reality. It is generally helpful to use a business plan to help fund fundraising because it will easily convince potential investors that you are serious about the business.
Some of the areas where you can get start-up capital for your cell phone retail business include:
- Increase your capital personally through your own savings and the sale of shares or personal effects.
- Find concessional loans from family and friends
- Bank loan application
- Obtain a loan from private investors
Choosing the Right Location for Your Cell Phone Retail Store
Choosing the right location for your cell phone retail business is very important as this location will determine the growth of your business and generate the revenue necessary to support the business. If you set up your business in an unprofitable location, your business will quickly collapse because there is no one to take care of your cell phones.
The decision to run your business from home or from commercial or rented property should depend on your budget. If you’re on a tight budget and can’t rent or rent a property in an area that is in your target market, running your home business isn’t a bad idea as long as you understand the terms of running it. such a home based business.
When running a home business, customers can only find out if you build a website and make sure that you have implemented the right strategies that will allow buyers to search for your website when buying. ‘a mobile phone. However, you need to make sure that some factors like shipping cost, return policies, and customer service are top notch.
If you are looking to rent or lease a facility with which you can operate your business, it is important that you choose a location that is in the center of your target market. For example, for a cell phone retailer, it would be best if you locate your business in shopping malls, malls, and gaming centers, or even near or near college campuses.
If you don’t know where to choose When looking to lease or lease a business, you can hire the services of a real estate agent or broker to help you choose the best location for your business.
Starting a Cell Phone Retail Business
A cell phone is a business that requires a significant amount of money to get started as there are a lot of cell phones in the industry and if you are going to have that many customers you will need to buy as many types of phones as possible.
Choosing the right location for your cell phone retail business is also very important as the right location will allow you to generate the income you need to grow and expand your business. Whether you are choosing a location or planning to run your home business, you will need to make sure that you create a website that will make it easy for customers to find your business.
Since the equipment you need to run your cell phone retail business can be effective, you may need to buy, lease, or get it as fairly as possible, based on budget. overall of your business. Therefore, some of the equipment you will need for your cell phone retail business include: shelves, display cases, hooks, computer, telephones, printer, scanner, and software (accounting and customer database).
Unless you intend to run a very small-scale mobile phone business, you will need a number of people to help you run your business effectively, and that includes; Managing Director (CEO), Administrator and Director of Human Resources, Accountant, Director of Business Development and Marketing, Phone Repair and Consultant, Sales, Customer Service, Driver and Security.
From the above analysis, you will learn Require at least 11 key people to successfully run your mobile phone business.
Process of providing service in a mobile phone retail store
Cell phone retailing does not require any type of manufacturing because all you need to do is offer cell phones and accessories for sale and any other service you intend to provide. Therefore, this process includes making contact with one or more suppliers to negotiate the sale of their brands, as well as with suppliers of cell phone accessories.
You should also be aware of the software aspect of the phone like the different operating systems so that you can offer reliable information to your customers.
Starting a Cell Phone Retail Business Marketing Plan
- Marketing ideas and strategies
Marketing is one of the very important aspects of a business because with the help of marketing, a business can generate the income needed to run the business and grow the business as well as generate the publicity needed to raise awareness among the target market to the company. The right marketing strategies will allow your business not only to break into the market, but also to compete profitably against its competitors.
Before creating the right marketing strategies for your business, you need to start by researching the market. It is this research that helps the entrepreneur to fully understand the business.
If the marketing of your business is a bit outdated, especially in a highly competitive industry, you can always use the services of a marketing consultant to help you develop marketing strategies that match your business goals and objectives.
Below are the marketing ideas and strategies you can use for your cell phone retail business;
- Empower your marketers to directly promote your business
- Ask your loyal customers to help lead your business to others
- Use social media platforms like Facebook, Twitter, Google Plus and Linkedin to promote your business
- Make sure your business is listed in the yellow pages and online directories
- Be sure to advertise your business in local newspapers and magazines, as well as on radio and television stations.
- Take part in seminars and phone shows to chat and sell your cell phone store products
S-strategies to increase brand awareness of your mobile phone store and create a corporate identity
Advertising is very important to any business, so large companies, and even those that have been around for a long time, don’t think about setting aside an amount each year that will be used to increase brand awareness and create a corporate identity. for their business.
Creating strategies to help you build brand awareness and create a corporate identity for your business can be overwhelming, which is why some entrepreneurs typically employ an advertising consultant who has a lot of industry experience and which also succeeded in providing similar solutions. help businesses achieve their goals and objectives.
If your budget is tight, there are several inexpensive ways you can use to build awareness for your brand, and the Internet is one of them. Below are some of the platforms you can use to build awareness of your brand and create a corporate identity for your business;
- Make sure to promote your business in local newspapers and magazines as well as on radio and television stations
- Make sure your business is listed in the yellow pages as well as online directories
- Use social networks like Facebook, Twitter, Google Plus, Instagram and Linkedin to promote your business
- Distribute flyers and leaflets to strategic places where you intend to work
- Install billboards and banners in strategic locations where you intend to work
- Use your official website to promote your business