Can you imagine a life without your smartphone? In our modern lifestyles, a lot of things depend on our smartphones. We perform almost all tech jobs through mobile, from storing contact numbers, e-mailing, listening to music to video conferencing. Needless to say, when our smartphones start troubleshooting, we need immediate solutions. Having a local mobile Service Centre in your neighbourhood is a big relief in such situations.
If you have a plan to start a mobile repair shop, it is the perfect business opportunity to make some money. As more smartphone brands enter the Indian mobile industry and more people convert their telephonic preference to a smartphone over landlines, the scope of the mobile servicing business improves.
A mobile service centre business promises a bright future in every locality. If you are wondering about the journey, here we have all the details on starting your journey as an entrepreneur.
Investment Requirements of a Mobile Repair Centre
Entrepreneurs planning to start a full operating mobile servicing centre can expect a starting investment of around 5-10 lakhs. The value varies with the store’s size and location and the inventory you stock there. It is best to open a mobile repair store in an area where the traffic is high, like malls, railway stations, bus stands, or shopping complexes. If you want to start slow, a store in your neighbourhood is a good option. The investment amount required for a small store in your neighbourhood is also comparatively lower.
Space Needed for a Mobile Repair Store
Ideally, a mobile repair store needs a 10×15 square feet or 150 sq. feet space. A fully-equipped mobile servicing store requires proper air-conditioning, lighting, cases to display mobiles and cameras. If you are setting up your store at a shopping mall, it should ideally have an 8×3.5 feet long counter with a top and front glass cover where you can display some mobiles. Ensure the cupboard for mobile displaying is well set on the wall behind the counter where it is a complete view of a walk-in customer. It is the lighting and decor of a store that makes space look larger and more welcoming.
Distributorship of mobiles
A mobile repair centre doesn’t essential involve in only mobile repairing. You will also need to get distributorship from different mobile companies to stock and display mobile phones, accessories, and different parts. To increase the popularity of your store, we recommend storing and offering the below services at your store-
- Mobile repairing
- SIM card
- Mobile accessories
- Mobile recharging facility
Licenses you Need for a Mobile Service Centre
While you prepare a business plan, decide on the structure of the company you want to set up.
If you are planning to run a small-sized business with a turnover of Rs. 10 lakhs per annum, we recommend starting with a Limited Liability Partnership or LLP store. You will need to register your company as an LLP store with the State and Federal authorities.
The other options for starting a store can be through e-commerce platforms like Mobiru, Amazon, Snapdeal, Flipkart, or a larger shopping mall store. In such cases, we recommend forming a fully licensed company.
A full-setup company requires-
- Registration proof of business, i.e., Trade License, MOA, or Partnership Deed.
- VAT registration certificate
- Import-Export Code (if you plan to expand the business or get imported mobiles)
- Service Tax registration
Generally, VAT registration is applicable for businesses that sell products worth Rs. 5 lakhs or more per annum. If you are selling mobiles and accessories in your store along with repairing services, VAT registration is mandatory for your business.
A well-established mobile service centre with revenue earning of about Rs. 9 lakhs per annum needs to get a service tax registration. The import-export code is necessary if you are dealing with China or similar countries directly for different accessories. Dealing with China gives you an edge on the cost of products.
A mobile servicing centre is beneficial in the modern world. As the leading mobile companies launch their new smartphones and more people line up to acquire them, the old technologies get overlooked.
You need a local service centre for your old smartphones or feature phones. The branded stores or brand service centres barely stock parts for these outdated models. But who doesn’t want to maintain their old phones along with the latest ones? Hence, the demand for local mobile repairing stores.
A plan to start one such mobile store is definitely rewarding in today’s market condition.