How to start a phone repair service center from scratch?

This article is for you if you:

  1. Have been employed and decided to start your own business.
  2. Are passionate about electronics repair and want to earn more from it.
  3. Noticed that your friends have opened their own service centers and decided to try as well.
  4. Want to open a service center but don't know where to start.
A plan to help you start a phone repair service center from scratch:
  1. Competitor Analysis
  2. Choosing a Location for Your Service Center
  3. Documentation
  4. Investments
  5. Equipment and Initial Inventory
  6. Staffing
  7. Customer Acquisition
  8. Operational Optimization
!!! It's important to record all tickets, sales, customers, and inventory from the start to maintain order in your operations and mind. There are CRM systems that help streamline and automate a company's business processes.
Get the first 40 tickets for free and test all the features of the HelloClient CRM

1. Competitor Analysis

Study your competitors by paying attention to reviews on online maps and the locations of their service centers. It’s also important to consider the following aspects:
  • Services and Pricing: Analyze the services offered by competitors and their pricing structures. Try to stand out by offering unique services or competitive prices.
  • Quality of Service: Examine customer reviews regarding the quality of service. Successful service centers often distinguish themselves with high levels of service and attention to detail.
  • Technical Expertise: Assess the level of technical competence of your competitors. This will help you identify their strengths and weaknesses, and find opportunities to improve your own services.
The most effective way to compete is not just by providing services but also by building long-term relationships with customers, showing attention to their wishes and needs.

2. Choosing a Location for Your Service Center

  • Foot Traffic: Assess the flow of people and the presence of popular stores nearby. Good foot traffic will ensure a steady stream of clients. For instance, being located next to a major supermarket can bring a constant flow of people.
  • Competitor-Free Zones: When choosing a location in a shopping center, make sure to include a clause in the contract that there should be no competitors nearby. This will help avoid losing clients due to them choosing between multiple service centers.
  • Independent Entry: If you opt for a standalone entrance, ensure that there are no other repair centers nearby. Explore the surroundings and find out where the nearest competitors are located.
  • City Center or Residential Areas?
City Center: Higher foot traffic, with opportunities to attract tourists and business people. However, the customer base might be more transient.
Residential Areas: More stable, with a focus on local residents who may return for future services.

  • Accessibility
Ensure it’s easy for customers to reach your service center. Check for convenient access roads, parking, and public transportation nearby.

At the beginning, every customer is important. Start by maintaining a customer database and engaging with each one. Send SMS promotions, offer discounts for referrals, and keep clients informed about special offers.
Encourage customers to leave reviews about your service center. Online presence is crucial, especially in the early stages.

3. Documentation

To open a service center, you need to:
1. Register Your Business: Obtain a tax identification number and open a bank account.
2. Acquire Necessary Licenses and Permits: Ensure you have all required legal documentation.
3. Sign a Lease Agreement: Conclude a contract with the landlord.
It’s best to consult with a lawyer to avoid mistakes and potential financial losses.
If you’re just starting out and lack business experience, consider hiring a freelance accountant to help with handling tax payments and other financial matters.

4. Investments

The initial investment can range from several tens of thousands to several million dollars, which will be allocated to:
  • Rent: Choose a convenient and accessible location.
  • Premises Setup: Renovate and purchase necessary furniture.
  • Equipment: Acquire a basic set of tools and repair equipment.
  • Parts and Accessories Inventory: Stock up on the most in-demand parts.

Cost Optimization Tips:
  • Used Equipment: Consider purchasing second-hand equipment.
  • Gradual Expansion: Start with a minimal inventory of parts and expand as your business grows.
  • Lease with Purchase Option: Explore the possibility of renting a space with an option to buy to reduce long-term costs.
These recommendations will help you manage your initial capital effectively and ensure a successful start for your business.

5. Equipment and Initial Inventory

To start your operations, you will need a basic set of equipment:
  • Microscope: For precise soldering of small components.
  • Soldering Iron: A primary tool for electronics repair.
  • Preheater: Helps evenly heat the board, making soldering easier.
  • Laboratory Power Supply: Provides stable power and testing of devices.
  • Display Programmer: Used for setting up and flashing screens.
  • Plotter: Cuts films and protective glasses to the required sizes.
  • Double-Sided Tape: For securing components and assembling devices.
  • Matrix Tape: Special tape for securing displays.
  • Glue: For reliable fixing of phone parts.
  • Computer or Laptop: For diagnostics, programming, and managing repairs.
Necessary Spare Parts: Purchase parts for screen and battery replacements—the most popular services.
Accessories: Keep chargers, cases, and screen protectors for iPhones and popular Android models in stock.
It’s essential to use inventory management software from the start to keep track of products and supplies. The HelloClient CRM system will help you optimize inventory management

6. Staffing

Initially, having one technician who also serves as the receptionist is sufficient. Carefully select your personnel to avoid dissatisfied customers.

If you are working alone, a CRM system is an indispensable tool that will notify customers of their ticket status via the "Ticket Status" widget and simplify communication. A CRM system acts as your manager, providing professional receipts to enhance your credibility with clients.

Hiring Tips:
  • Experience and Skills: Look for candidates with experience in electronics repair and strong recommendations.
  • Practical Test: Conduct a test assignment to assess practical skills.

Control and Management. Use the HelloClient CRM system to manage staff:
  • Ticket Management: Technicians can see the tickets they need to work on, saving time and ensuring clarity.
  • Salary Reports: The "Salary" module helps ensure that employees are motivated. Higher quality and quantity of work lead to better pay, boosting both employee satisfaction and your business's reputation. Use the CRM to avoid time-consuming calculations.
  • Performance Analysis: The "Reports" module allows you to analyze productivity and work quality. Track net profit from tickets and sales, monitor the number of tasks completed by employees, and identify the most popular services and products among customers.
  • Assign access rights to employees.
  • Track employee actions in ticket history, inventory, and payments.
These measures will help you manage your staff effectively and ensure a high level of customer service

7. Customer Acquisition

  • Geo-Services:
Use reviews on Google Maps to your advantage. With HelloClient in your CRM, you can effectively manage reviews through a special widget: it automatically intercepts negative reviews and sends positive ones to the maps where your service is registered.
93% of users search for information about products and services nearby.
76% of users trust reviews as much as personal recommendations.
If your company is not listed on geo-services, you are simply losing a large share of potential customers.
  • Online Presence and Advertising
Develop your website and use various types of online advertising, as well as traditional advertising methods (business cards, billboards, flyers), targeted ads, and more. The broader your online presence, the higher your chances of attracting potential customers.

  • Social Media
Don't forget about popular social platforms: create pages on Instagram, Facebook, YouTube, and etc. Collaborating with bloggers can also significantly increase the visibility of your service.

  • Word of Mouth
The better you serve a customer, the more likely they are to recommend you to their relatives, friends, and acquaintances.

  • Showcase the Quality of Your Service
New service centers might face trust issues, so provide customers with receipts featuring your logo, stamp, and warranty conditions. You can learn how to do this using a CRM system in our article.

  • Communicate with Customers
Automatically notify customers via SMS when their ticket is received, when its status changes, and when it’s ready. Keeping the customer informed about the status of their ticket will give them peace of mind.

  • Value Your Customers
Build a customer profile: are they friendly or require more attention, do they like to chat or prefer quick resolutions? With these notes, you can always find the right approach for each customer. You can create customer profiles in the CRM system by adding the necessary fields in the customer card.
Building a customer base is crucial at the start, as you may have only a few customers and need to work hard to retain each one. Store all contacts and tickets in the CRM to stay closely connected with your clients

8. Operational Optimization

When everything is ready to start, it's crucial to establish ticket. The HelloClient CRM system is an ideal tool for efficient business management.
Often, at the beginning of a business, everything is written on scraps of paper. Later, customer contacts and ticket details are forgotten, lost, or the handwriting becomes unreadable. A CRM helps keep all customer data intact, quickly fill out information about the device in the ticket form, and take photos of the device’s condition to avoid disputes with customers who might claim, "that scratch wasn’t there."

Advantages of Using CRM:
  • Centralized Management: All databases of tickets, sales, customers, and inventory are consolidated in one place.
  • Automation and Reporting: Automatic reports and ready-made document templates save time both at the start and in the long term.
  • Payroll Module: The integrated payroll module simplifies the process of accounting and payments to employees.
We invite you to read the article "How to Start Working with HelloClient" to automate all your company’s business processes
For any questions, you can contact our support chat.
We look forward to having you join our team!
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