Cell Phone Repair Business Plan
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Below is a template to help you create each section of your Cell Phone Repair business plan.
Executive Summary
Business Overview
Aurora Phone Repair is a cell phone repair business located in Aurora, IL. We offer a wide suite of services that address the most common issues and damages that occur to cell phones. These include screen repairs, battery replacements, and water damage repairs. In addition to repairs, we also sell a variety of phone accessories, such as cases, screen protectors, and chargers.
Aurora Phone Repair is founded and run by Tim Bradshaw. Tim has been a phone and tech geek for years and has purchased several of the most popular and expensive phones on the market. A year ago, he broke his high-end phone and found that no repair shop was willing to fix it. He was able to repair it on his own and found that his skills exceeded those of local repair shops. That’s when he decided to open his own phone repair shop using his expertise in technology and extensive skill set in fixing electronics. With his skill and the right team, Tim expects his business will become the most popular phone repair business in the area in the next five years.
Product Offering
Aurora Phone Repair is a one-stop shop for all one’s phone repair needs. We can repair nearly everything from a cracked screen to water damage. We will have a full staff of trained professionals with years of experience repairing phones and other electronics. As such, we can repair many of the problems that phones have in their lifetime, including problems our competitors won’t fix. In addition to repairs, we also sell a limited variety of phone accessories, such as earbuds, cases, and chargers.
Customer Focus
Aurora Phone Repair will target phone owners in Aurora, Illinois. In the modern age, this includes nearly all of the population, but we expect most of our customers will be young adults or demographics that can’t afford to replace their phones often. We will also target small and medium-sized businesses that provide their employees with work cell phones. No matter the customer, Aurora Phone Repair will deliver the best communication, service, and results.
Management Team
Aurora Phone Repair is owned and run by Tim Bradshaw, a phone aficionado who has extensive experience repairing and upgrading electronics. He started the business after failing to find a nearby shop that could fix his phone. He was able to fix it himself and found that his skills were superior to many of the local repair shops. After this experience, he decided to open his own repair shop so he could help the residents of Aurora fix their phones.
Success Factors
Aurora Phone Repair will be able to achieve success by offering the following competitive advantages:
- Skilled team of phone repair technicians who will be able to diagnose and repair a wide variety of phone issues in a timely manner.
- Same-day appointments and quick repair services.
- The founder has extensive experience repairing electronics and will only hire staff members who also have years of experience in the industry.
- Competitive pricing along with several promotions and discounts.
Download the Cell Phone Repair business plan template (including a customizable financial model) to your computer here <–
Financial Highlights
Aurora Phone Repair is seeking $175,000 in debt financing to launch its phone repair business. The funding will be dedicated to securing the shop location and purchasing phone repair equipment and supplies. Funding will also be dedicated towards three months of overhead costs to include the payroll of the staff and marketing expenses. The breakout of the funding is below:
- Phone repair shop build-out: $50,000
- Equipment, supplies, and materials: $25,000
- Three months of overhead expenses (payroll, utilities): $50,000
- Marketing costs: $25,000
- Working capital: $25,000
The following graph below outlines the pro forma financial projections for Aurora Phone Repair.
Company Overview
Who is Aurora Phone Repair?
Aurora Phone Repair is a cell phone repair business located in Aurora, IL dedicated to providing the best services in the industry. We can repair nearly any common phone damage or issue including screen repairs, battery replacements, and water damage repairs. We have the most experienced staff of professionals in the area and can even repair issues rejected by other phone repair shops. We are committed to providing our customers with the best possible service and only use the highest quality parts and tools to get the job done.
Aurora Phone Repair is founded and run by Tim Bradshaw. Tim has been a phone and tech geek for years and has purchased several of the most popular and expensive phones on the market. A year ago, he broke his high-end phone and found that no repair shop was willing to fix it. He was able to repair it on his own and found that his skills exceeded those of local repair shops. That’s when he decided to open his own phone repair shop using his expertise in technology and extensive skill set in fixing electronics. With his skill and the right team, Tim expects his business will become the most popular phone repair business in the area in the next five years.
Aurora Phone Repair’s History
Upon surveying the local customer base and finding potential shop locations, Tim Bradshaw incorporated Aurora Phone Repair as an S-Corporation on August 1, 2023.
The business is currently being run out of Tim’s home office, but once the lease on the shop location is finalized, all operations will be run from there.
Since incorporation, Aurora Phone Repair has achieved the following milestones:
- Found a potential location for the shop
- Developed the company’s name, logo, and website
- Created the list of services the company will provide
- Determined equipment and inventory requirements
- Began recruiting key employees
Aurora Phone Repair’s Services
Aurora Phone Repair is a one-stop shop for all of Aurora’s phone repair needs. We offer a wide range of services, including:
- Screen repair
- Battery replacement
- Water damage repair
- Charging port repair
- Speaker repair
- Microphone repair
- Camera repair
- Home button repair
- Power button repair
- Volume button repair
- Back cover replacement
In addition to repairs, we sell a limited selection of phone accessories, including:
- Phone cases
- Screen protectors
- Chargers
- Batteries
- Headphones
- Speakers
Industry Analysis
The cell phone repair industry has experienced overall growth over the past several years. The main reason for this growth is due to inflation. The rising cost of phones is felt by everyone, no matter what model they choose. While simple smartphones cost about $200-300, a good phone will easily cost upwards of $1000. Inflation is making it much harder to replace phones, so many head to phone repair services to fix any issues and keep their phones working for as long as possible. This is further amplified by the staggering minimum wage and high unemployment rate.
Furthermore, though technology is getting more expensive, it is also becoming more replaceable. Many forms of technology begin to show problems within months or a few years of use. As such, many people replace their phones every few years or even yearly. However, many people cannot afford to do this so they either must settle for a less-than-optimal functioning phone or phone repair services.
According to UnivDatos, the Smartphone Repair Market was valued at $185 billion in 2020 and is expected to grow at a CAGR of 5% from now until 2027. This is moderate growth that shows there is demand for these services. As such, we expect that Aurora Phone Repair will be highly profitable over the next several years.
Download the Cell Phone Repair business plan template (including a customizable financial model) to your computer here <–
Customer Analysis
Demographic Profile of Target Market
Aurora Phone Repair will target phone owners in Aurora, Illinois. In the modern age, this includes nearly all of the population, but we expect most of our customers will be young adults or demographics that can’t afford to replace their phones often. We will also target small and medium-sized businesses that provide their employees with work cell phones. No matter the customer, Aurora Phone Repair will deliver the best communication, service, and results.
The precise demographics for Aurora, Illinois are:
| Total | Percent | |
|---|---|---|
| Total population | 1,680,988 | 100% |
| Male | 838,675 | 49.9% |
| Female | 842,313 | 50.1% |
| 20 to 24 years | 114,872 | 6.8% |
| 25 to 34 years | 273,588 | 16.3% |
| 35 to 44 years | 235,946 | 14.0% |
| 45 to 54 years | 210,256 | 12.5% |
| 55 to 59 years | 105,057 | 6.2% |
| 60 to 64 years | 87,484 | 5.2% |
| 65 to 74 years | 116,878 | 7.0% |
| 75 to 84 years | 52,524 | 3.1% |
Customer Segmentation
Aurora Phone Repair will primarily target the following customer profiles:
- Individual cell phone owners
- Lower and middle-class residents
- Small businesses
Competitive Analysis
Direct and Indirect Competitors
Aurora Phone Repair will face competition from other companies with similar business profiles. A description of each competitor company is below.
iFix
iFix is a cell phone repair company that offers extensive repairs for iPhones. They have a team of certified technicians who can repair any model of iPhone, including the earliest models. The team is highly experienced and is able to repair many issues that even Apple stores won’t resolve. iFix is particularly loved for their pricing, which is much more affordable than other iPhone repair services or purchasing a brand-new phone. Though they are extremely popular, since they only repair iPhones, they will only be a minor competitor for our target demographic.
UBreakIFix
UBreakIFix is a national chain of phone repair stores that offers same-day repairs for most types of phones. They have a team of certified technicians who can repair both hardware and software issues. UBreakIFix is known for its wide range of services, as well as its friendly and knowledgeable staff. The company is also known for its convenience, offering long hours and multiple locations. UBreakIFix will be our biggest competitor.
Mobile Phone Repair Services
Mobile Phone Repair Services is a local mobile phone repair company that offers repairs for all types of phones. They have a team of experienced technicians who can repair both hardware and software issues. They don’t have a shop location; instead, they offer mobile services to repair phones at customer’s homes or offices. Though these services are highly convenient, they also come with an extra cost. Those who have the time to visit a shop will prefer to save money by getting their phone repaired by Aurora Phone Repair.
Download the Cell Phone Repair business plan template (including a customizable financial model) to your computer here <–
Competitive Advantage
Aurora Phone Repair will be able to offer the following advantages over the competition:
- Client-oriented service: Aurora Phone Repair is committed to providing client-oriented service that offers personalized repair services for every client.
- Management: Tim Bradshaw has been extremely successful in repairing phones and other technology and will be able to use his previous experience to grant his clients extensive phone repair services. His unique qualifications will serve customers in a much more sophisticated manner than Aurora Phone Repair’s competitors.
- Affordability: Many people who hire phone repair services do not have much disposable income. Otherwise, they would easily replace their broken phones with new ones. Aurora Phone Repair will offer all of its services at an affordable rate to ensure that our customers never break the bank to get their phones fixed.
Marketing Plan
Brand & Value Proposition
Aurora Phone Repair will offer the unique value proposition to its clientele:
- Reliable results in a timely manner for most repairs.
- Competitive pricing and discounts for regular customers.
- Knowledgeable and friendly staff.
Promotions Strategy
The promotions strategy for Aurora Phone Repair is as follows:
Social Media Marketing
The company will enlist the help of a marketing specialist to create accounts on social media platforms such as Linkedin, Twitter, Instagram, Facebook, TikTok, and YouTube. The marketing specialist will ensure Aurora Phone Repair maintains an active social media presence with regular updates and informative content.
Website/SEO Marketing
Aurora Phone Repair will create a company website. The website will be well organized, informative, and list all the services that Aurora Phone Repair is able to provide. The company’s marketing specialist will also manage the company’s website presence with SEO marketing tactics so that when someone types in a search engine “Aurora phone repair shop” or “phone repair shop near me,” Aurora Phone Repair will be listed at the top of the search results.
Word of Mouth/Referrals
Aurora Phone Repair will encourage word-of-mouth marketing from loyal and satisfied clients. The company will incentivize its existing customer base to encourage friends and colleagues to hire our services.
Print Advertising
Aurora Phone Repair will invest in professionally designed print ads to display in programs or flyers and to put in magazines, newspapers, and direct mailers.
Pricing
The pricing of Aurora Phone Repair will be moderate and on par with competitors so customers feel they receive value when purchasing the company’s superior repair services.
Operations Plan
The operations plan for Aurora Phone Repair is as follows:
Operation Functions:
- Tim Bradshaw will be the owner of Aurora Phone Repair. He will run the general operations, help with repairs, and provide customer service. Tim will spend the next several months hiring the following staff:
- Two to four part-time staff to help repair phones and provide customer service.
- A part-time marketing specialist who will manage the marketing and promotional campaigns.
- A part-time accountant who will manage all client invoicing, billing, and payables.
Download the Cell Phone Repair business plan template (including a customizable financial model) to your computer here <–
Milestones:
Aurora Phone Repair aims to open in the next six months. The following are the milestones needed in order to obtain this goal.
- 9/1/2023 – Execute lease for prime location.
- 9/15/2023 – Begin build out of repair shop location.
- 10/1/2023 – Hire and train employees.
- 10/15/2023 – Start social media marketing campaign
- 11/1/2023 – Purchase initial inventory of equipment and supplies.
- 11/15/2023 – Grand opening of Aurora Phone Repair.
Management Team
Tim Bradshaw is the founder and CEO of Aurora Phone Repair. He started the company after his own phone broke and was unable to find a reliable and affordable repair service. Tim saw a need for a better phone repair experience and decided to fill it. He learned how to repair his own phone and then set out to start his own company. Tim is committed to staffing the company with the most experienced repair technicians in the area who can repair nearly any damaged phone they come across.
Though Tim has never run a company of his own, he has considerable experience in repairing and upgrading technology, so he can provide the primary functions of the company. He will hire several other staff who can help him with the aspects of the business he is unfamiliar with, such as marketing and accounting.
Financial Plan
Key Revenue & Costs
The revenue drivers for Aurora Phone Repair are the fees charged to customers in exchange for the company’s phone repair services.
The cost drivers will be the overhead costs required in order to staff a phone repair shop. The expenses will be the payroll cost, utilities, phone repair equipment and supplies, and marketing materials.
Funding Requirements and Use of Funds
Aurora Phone Repair is seeking $175,000 in debt financing to launch its phone repair business. The funding will be dedicated to securing the shop location and purchasing phone repair equipment and supplies. Funding will also be dedicated towards three months of overhead costs to include the payroll of the staff and marketing expenses. The breakout of the funding is below:
- Phone repair shop build-out: $50,000
- Equipment, supplies, and materials: $25,000
- Three months of overhead expenses (payroll, utilities): $50,000
- Marketing costs: $25,000
- Working capital: $25,000
Download the Cell Phone Repair business plan template (including a customizable financial model) to your computer here <–
Key Assumptions
The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and pay off the startup business loan.
- Average number of phones serviced per month: 150
- Average cost per repair: $100
- Overhead costs per year: $20,000
Financial Projections
Income Statement
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| Revenues | ||||||
| Total Revenues | $360,000 | $793,728 | $875,006 | $964,606 | $1,063,382 | |
| Expenses & Costs | ||||||
| Cost of goods sold | $64,800 | $142,871 | $157,501 | $173,629 | $191,409 | |
| Lease | $50,000 | $51,250 | $52,531 | $53,845 | $55,191 | |
| Marketing | $10,000 | $8,000 | $8,000 | $8,000 | $8,000 | |
| Salaries | $157,015 | $214,030 | $235,968 | $247,766 | $260,155 | |
| Initial expenditure | $10,000 | $0 | $0 | $0 | $0 | |
| Total Expenses & Costs | $291,815 | $416,151 | $454,000 | $483,240 | $514,754 | |
| EBITDA | $68,185 | $377,577 | $421,005 | $481,366 | $548,628 | |
| Depreciation | $27,160 | $27,160 | $27,160 | $27,160 | $27,160 | |
| EBIT | $41,025 | $350,417 | $393,845 | $454,206 | $521,468 | |
| Interest | $23,462 | $20,529 | $17,596 | $14,664 | $11,731 | |
| PRETAX INCOME | $17,563 | $329,888 | $376,249 | $439,543 | $509,737 | |
| Net Operating Loss | $0 | $0 | $0 | $0 | $0 | |
| Use of Net Operating Loss | $0 | $0 | $0 | $0 | $0 | |
| Taxable Income | $17,563 | $329,888 | $376,249 | $439,543 | $509,737 | |
| Income Tax Expense | $6,147 | $115,461 | $131,687 | $153,840 | $178,408 | |
| NET INCOME | $11,416 | $214,427 | $244,562 | $285,703 | $331,329 |
Balance Sheet
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Cash | $154,257 | $348,760 | $573,195 | $838,550 | $1,149,286 | |
| Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
| Inventory | $30,000 | $33,072 | $36,459 | $40,192 | $44,308 | |
| Total Current Assets | $184,257 | $381,832 | $609,654 | $878,742 | $1,193,594 | |
| Fixed assets | $180,950 | $180,950 | $180,950 | $180,950 | $180,950 | |
| Depreciation | $27,160 | $54,320 | $81,480 | $108,640 | $135,800 | |
| Net fixed assets | $153,790 | $126,630 | $99,470 | $72,310 | $45,150 | |
| TOTAL ASSETS | $338,047 | $508,462 | $709,124 | $951,052 | $1,238,744 | |
| LIABILITIES & EQUITY | ||||||
| Debt | $315,831 | $270,713 | $225,594 | $180,475 | $135,356 | |
| Accounts payable | $10,800 | $11,906 | $13,125 | $14,469 | $15,951 | |
| Total Liability | $326,631 | $282,618 | $238,719 | $194,944 | $151,307 | |
| Share Capital | $0 | $0 | $0 | $0 | $0 | |
| Retained earnings | $11,416 | $225,843 | $470,405 | $756,108 | $1,087,437 | |
| Total Equity | $11,416 | $225,843 | $470,405 | $756,108 | $1,087,437 | |
| TOTAL LIABILITIES & EQUITY | $338,047 | $508,462 | $709,124 | $951,052 | $1,238,744 |
Cash Flow Statement
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| CASH FLOW FROM OPERATIONS | ||||||
| Net Income (Loss) | $11,416 | $214,427 | $244,562 | $285,703 | $331,329 | |
| Change in working capital | ($19,200) | ($1,966) | ($2,167) | ($2,389) | ($2,634) | |
| Depreciation | $27,160 | $27,160 | $27,160 | $27,160 | $27,160 | |
| Net Cash Flow from Operations | $19,376 | $239,621 | $269,554 | $310,473 | $355,855 | |
| CASH FLOW FROM INVESTMENTS | ||||||
| Investment | ($180,950) | $0 | $0 | $0 | $0 | |
| Net Cash Flow from Investments | ($180,950) | $0 | $0 | $0 | $0 | |
| CASH FLOW FROM FINANCING | ||||||
| Cash from equity | $0 | $0 | $0 | $0 | $0 | |
| Cash from debt | $315,831 | ($45,119) | ($45,119) | ($45,119) | ($45,119) | |
| Net Cash Flow from Financing | $315,831 | ($45,119) | ($45,119) | ($45,119) | ($45,119) | |
| Net Cash Flow | $154,257 | $194,502 | $224,436 | $265,355 | $310,736 | |
| Cash at Beginning of Period | $0 | $154,257 | $348,760 | $573,195 | $838,550 | |
| Cash at End of Period | $154,257 | $348,760 | $573,195 | $838,550 | $1,149,286 |
Cell Phone Repair Business Plan FAQs
What Is a Cell Phone Repair Business Plan?
A cell phone repair business plan is a plan to start and/or grow your cell phone repair business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.
What are the Main Types of Cell Phone Repair Businesses?
There are a number of different kinds of cell phone repair businesses, some examples include: Mail-In Cell Phone Repair Service, Brick-and-Mortar Phone Repair Service, and White Label Cell Phone Repair.
How Do You Get Funding for Your Cell Phone Repair Business Plan?
Cell Phone Repair businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.
What are the Steps To Start a Cell Phone Repair Business?
Starting a cell phone repair business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.
1. Develop A Cell Phone Repair Business Plan - The first step in starting a business is to create a detailed cell phone repair business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.
2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your cell phone repair business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your cell phone repair business is in compliance with local laws.
3. Register Your Cell Phone Repair Business - Once you have chosen a legal structure, the next step is to register your cell phone repair business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.
4. Identify Financing Options - It’s likely that you’ll need some capital to start your cell phone repair business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.
5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.
6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.
7. Acquire Necessary Cell Phone Repair Equipment & Supplies - In order to start your cell phone repair business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation.
8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your cell phone repair business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.