Starting a Cellphone Repair Shop Business

Cell phones have become a necessity throughout the country. Opportunities now exist for entrepreneurs to start their own cellular phone repair shop.

To start this type of business, it is a must to have a background knowledge on electronics repair, hire a qualified technician to start your business, or enroll yourself in a cellular phone repair course.

Here are some tips in starting your cellphone repair business:

Start-up costs

With the exception of obtaining the necessary licenses from government agencies (see registration requirements) to make your business legitimate, there is not much to spend for your business to become fully operational. To minimize rental costs, you can establish your business at home with your neighbors as your initial target customers. Later on, as you expand your business, you can locate inside malls or commercial spaces accessible to a larger target clients. The basic equipment you need (see tools and equipment) is also not that expensive. You can start with second-hand tools or equipment

Advertise

There are many ways to advertise your services – distribute leaflets, flyers, brochures, business cards to Wends, family members, neighbors, or go door-to-door around your barangay. Post a sign outside your home so that people are aware that you offer such services.

Keep updated

With the fast pace of technology development, It is important to keep your knowledge or your technician’s updated. One way is to search the internet for information or purchase manuals or tool kits that will help hone your skills or your technicians’ in your repair shop.

I.   Estimated Investment Costs  on Tools and Equipment*

  • Hot air soldering tool : P3,000
  • Power supply-variables : P4,000
  • Soldering iron with stand : P500
  • Desoldering tool : P300
  • Tweezers : P100
  • Screwdrivers (assorted e.g.  set of torx/starbit, allen wrench/ key, etc.) : P1,000
  • Soldering lead : P100
  • Personal Computer : P20,000
  • Multi-tester : P1,000
  • Pliers (assorted) : P500
  • Software flasher : P4,000
  • Magnifying glass with lamp : P1,500
  • Total : P36,000

* Based on 2009 prices. Actual price may vary depending on make and brand of the tool/equipment.

II. Estimated Costing and Pricing

Current market repair/servicing fees of cellphones vary. They range from P100 to P500 or higher depending on the defect/damage and model of the phone. High-end phones may cost more to repair.

Cellular phone system defects may include but are not limited to the following: no power, no signal, not charging, defective user interface (e.g. LCD, keypads, etc.), and software related troubles.

Sample Monthly Income Computation

Assuming that you can repair 5 phones in a day with an average service fee of P200 per phone.

Gross Sales (5 phones @P200 x 20 days) : P20,000
Less: Operating Expenses : P11,640

  • Salaries and Wages (P382 x 20 days) :   P7,640
  • Electricity and Water : P2,000
  • Supplies : P1,000
  • Miscellaneous : P1,000

Estimated Monthly Net income : P8,360

Note: Figures used in this computation are hypothetical, It may vary from actual operation of the business.

III. Registration Requirements

  • Business name registration (www.bnrs.dti.gov.ph)
  • Partnership/Corporation (www.sec.gov.ph)
  • Mayor’s/Business Permit (check your local municipality/city)
  • BIR TIN (www.bir.gov.ph)
  • SSS (www.sss.gov.ph)
  • DOLE (www.dole.gov.ph)
  • DTI-BTRCP (www.dti.gov.ph)
  • NTC (www.ntc.gov.ph)

IV. Technical Assistance (Training and Seminar)

  • PTTC (www.pttc.gov.ph)
  • TESDA (www.tesda.gov.ph)

source: dti.gov.ph, photo from freedigitalphotos.net

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