How To Open Cell Phone Store: Step-By-Step Guideline

The phone market has been slowing down since last year due to multiple reasons including the decreasing demand among consumers and the coronavirus outbreak. However, despite the unfortunate situation, India is still rising as the fastest-growing phone market in the world. Once the pandemic is over, it will likely regain the previous vibrancy, and if you are thinking about taking that chance and have your own business, this post will show you how to open cell phone store.

How to open cell phone store: Register the business

First of all, you need to choose the business name and register it with your local authorities, which means you will have a legitimate business entity and the access to retail leasing services and financial services. You will also be able to apply with wireless service providers.

When choosing a name for your business, remember that your business name cannot be too similar to existing ones. Once you’ve completed your business registration, proceed to file all the articles of incorporation.

How to open cell phone store: Develop your business plan

The next step in how to open prepaid cell phone store is drafting your business plan, which should demonstrate your knowledge of market forces and conditions. In the plan, you must indicate how you will perform marketing campaigns and outreach as well as how you can serve your customers’ needs.

The business plan must also include leasing cost, employee cost, along with other overhead expenses with the highest precision possible. The plan will be the illustration of your understanding of your business operation. You can revise the business plan when you know the actual resources and expenditures.

If you are asking yourself: how much money do I need to open a cell phone store? You should evaluate for financial situation first, look into how much money you have and how much you can get through loans. Also, assess risks when you invest in this business, it always has a certain risk but shouldn’t be too risky. If you can’t get the minimum amount for the ideal store you have in mind, you should decrease the scale.

How to open cell phone store: Understand carrier contracts

The next step is to contact the wireless service providers whose products you want to sell. You will have to carefully read their contracts to understand their terms and conditions thoroughly.

When reading the contracts, you should note the details that you want to look into later.

How to open cell phone store: Apply as an authorized seller

Once you have made the decision on what carriers you want to offer, you need to apply formally to become their reseller. The business plan you have prepared will help indicate your vision as well as the ability to run a cellphone store successfully. The plan is based on credit, so expect your own credit to be run along the process.

All carriers will want to know your personal experience in sales, management, or business ownership. You will have an advantage with industry experience, this is optional. Once you’ve passed all the hurdles and met all requirements, you will be authorized as a reseller.

How to open cell phone store: Location establishment

After obtaining the reselling authorization, you can start looking for a location for your cell phone store, sign a lease, and start setting up your store. Landlords may also check your personal credit, so make sure you keep it clean and don’t get another loan until the business has been established.

The store should be located in an area with lots of foot traffic, near a grocery store or in the mall, for example. Many cellphone shops highlight the latest tech with LED displays, you can consider doing this as well. The store should be in line with what you sell. Set up a layout to exhibit phones and accessories so customers can browse products or have something to look at as they wait.

How to open cell phone store: Investment

The initial expenditure can range from Rs 2 lakh to Rs 5 lakh, including Rs 60,000 for the franchise fee while the rest is for setting up and decorating the store. In total, the investment can reach Rs 3 lakh or Rs 4 lakh. You will need an area of 27-65 square meters, depending on your financial resource to invest in the location.

After finishing setting your cell phone store India, you will start to get returns after 20-26 months. The company will provide training support for you and let you access the software and hardware needed to run your store.

In addition, mobile brands will have their representatives present in the store, which will reduce the human resource cost for you. If you want this, you can contact the company or apply online.

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