Mobile phones have become a basic need for people in today’s world, and with their increased usage; the demand for their accessories will continue to grow. They have become an inevitable part of our lives, and people cannot live a single second without them.
Mobile phones require a lot of accessories that increase their efficiency and protect your phone. Thus, this opens a gateway for a big business opportunity. Commencing a mobile phone accessory business can be highly profitable, but for that, you need a good cell phone accessories business plan.
Cell Phone Accessories Business Plan – How To Start?
Types of Mobile Accessories
The first question that comes to everyone’s mind is how much investment is required to start a business. For calculating investment, it is substantial for you to know a few things, such as the cost of the shop in your area, how much staff would be required and most importantly what are the accessories you wish to keep?
Hence, here is the list of mobile accessories that you can keep in your shop or store:
- Earphones (wired or wireless)
- Phone Camera Lenses and Smart Flash
- Headphones (wired or wireless)
- Mobile screen tempered glass
- Selfie stick
- Mobile screen lamination
- Batteries and chargers
- HDMI cables
- Charging brick
- Bluetooth cable
- Power bank
- Car charging brick
- Bluetooth speaker
If you include all these products in your cell phone accessories business plan, then the chances of you going out of business are very less if you work hard. Different accessories have different profit margins, but mobile accessories have more profit than selling the mobile phone as per the existing business people.
Steps to Follow to Start Cell Phone Accessories Business in India
Now, you are well aware of some of the hottest selling mobile accessories. But, the point is to start a mobile accessories business and taking steps towards realizing your dreams.
It is a multi-billion dollar industry that continues to flourish with new products and services, and you can be a part of it by doing proper planning and research.
Here are a few steps that you need to take to begin a cell phone accessory business-
1. Analyze the Market
There would be several competitors in the accessory market, although competition is a healthy and necessary part of owning any business. After looking at big stores do not get disheartened or think of changing the plan, remember that the cell phone accessories market is so huge that there is always room for another player.
See what your competitors are selling and try to set yourself apart by creating a product list that is unique from others. Consider everything which you can include or exclude to make your business noticeable.
2. Be sure
Once you analyze and understand the market well, take time and think if this business is for you. Anyone can opt for this business, but you have to be passionate about your work if you wish to succeed. Thus, before starting to give it a thought that you truly want to get started with the cell phone accessories business plan.
3. Find the right location
The first question is whether you wish to sell accessories online or open a store? If you plan to open a store, you would have to take place on rent that would immensely affect your budget, so you would have to be considerate.
Location is really important for a mobile accessory business as for this business you cannot be at a solitary place. It is recommended to open your store by renting a kiosk in a mall or a market place where there is a huge footfall. Also, ensure that the area is easily accessible and not too costly.
This is one thing that would require a lot of planning and hard work. Every business needs capital to start a business as, without that, it is impossible to run a business. By now, you might get a fair idea of how much investment is required. There are various ways through which you can raise capital for your business.
a) Business Loan
Most people think of taking a loan for starting a small-scale business. You would have to approach a bank and then submit the form for applying for the loan. This process takes a little longer, but the good thing is that you will get interested at very low rates. Usually, the tenure for paying back the loan is 15 years. There are a few banks which give loan without submitting any collateral security.
b) Credit Loan
This source of financing has some advantages and disadvantages. The benefit is that its process is very easy and you would get the money quickly. Its drawback is that its interest rates are high plus you cannot hold the funds for a longer period.
If you already have some money in hand, you can use it to start your venture. The good part is that you would not have to repay the amount to anyone, plus there is no need to pay interest.
5. Meet Legal Requirements
To start a mobile accessories business, you would need to get a business license. You would have to check with the government agencies for acquiring the license. Depending on the type of business you opt for licensing would differ such as for solo, it is different, and for the partnership, it is different. But, there are a few things that would be required on both the cases, such as-
- You will need to register the shop under Shop and Establishment Act if you want to open a physical shop.
- Obtain a GST for a GSTIN if as per your plans your sales would be more than 20 lakhs annually or if you wish to sell your products inter-state
- Traders license
- PAN registration
- Aadhar Registration
6. Choose a supplier
Reputation is the prime factor for becoming successful in any business. Thus, it is important to choose your supplier, diligently. If you sell low-quality products or you are unable to deliver products on time, no one would turn up to your store again.
It is always recommended to buy products from a local dealer as they can supply the products on time and at comparatively low prices which would also increase your margins. In fact, you can also contact a local manufacturer directly and get the products at a cheaper rate.
7. Know your products well
Not every person who makes a cell phone accessories business plan have good knowledge about all the brands and handsets. But, if you want to be different from others, make sure that you have a complete understanding of the products you plan to sell.
8. Payment mode
You should ensure that you accept payment through different methods as this make the client feel comfortable, making shopping easier for them. If you are stringent on your payment modes, then some customers might avert buying from your store.
9. Invest in fast-moving products
The mobile phone industry keeps on updating with new techniques and products. Hence, it is recommended to invest in fast-moving products to avoid a lot of inventory getting blocked.
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Try and become a one-stop-shop for your clients so that they do not have to go anywhere else to buy anything related to mobile phones. In case if something is missing talk to your supplier so that they can deliver it to you quickly and the customer does not go to your competitor.
11. Manage the inventory
This might be a little time-consuming process, but it will help you understand which products are moving fast, which products are out of stock, and what are the products that have less demand.
12. After-sales support
Just selling should not be your focus providing after-sales support to your customers makes your customers feel good, and they would become your loyal customers if you help them after selling the products.
Even if they request you for small things such as installing an app, updating the phone, etc. take responsibility and guide them.
Customers feel good and satisfied if they buy from an expert who can intricate them about the features, benefits, and disadvantages of each product when the customer is comparing two or three products.
Few things that are a must in your Business plan
This was the guide on cell phone accessories business plan; still, there are a few things that you must include in your list to be successful, such as-
1. Table of Contents
When you create a business plan, make the table of contents so that you know the area you need to work on and it also gives you an idea of the things you would have to study on. This makes you look organized and serious about your business plan.
2. Company overview
The bank or investors would want to know about your business plan and what it aims at. Hence to get an overview of your business, it is important to mention-
- Vision: Mention your company’s vision and where you see this company or store after a couple of years. Also, put detail on how you wish to expand your business or how you wish to invest the money that you earn
- History: You can mention the history of your store or anything about the past that you would like to mention
- Markets and Products: Give a brief about your target market and the major products that you would sell.
- Cost summary
- Keys to success
3. Market and Industry Analysis
This section would provide the investors with your hard work and passion. If you do research on the market and industry, it shows how much knowledge you have gained about everything before starting the business. Some f the things that you should include are-
- Industry Analysis
- Market Analysis
- Target customer
- Competitor Analysis
- SWOT Analysis
4. Marketing strategy
When you contact your investors, they would ask you about your marketing strategy. It would be best if you had the planning and strategy prepared before you reach them. Include all the strategies in your business plan, such as-
- Pricing Strategy
- Target market strategy
- Sales strategy
- Distribution strategy
- Product/Service strategy
- Advertising and promotion strategy
- Marketing and sales forecast
5. Operations & Management- Include in your plan how you intend to run the business and the scope and expenses. Plus also mention the leadership plan.
You are well aware of how to start a cell phone accessory business, now the next important thing to do is increase sales.
How to Increase the Sale of Accessories?
After you set up your business, all you think of is increasing the sales so that the profit also rises and you can expand your business. There are a few methods you can use to boost the sales-
a) Use Internet Marketing: In today’s time when internet usage has increased immensely, and people use social media platforms to promote their product. If you do not use this platform, then you can be at a big disadvantage. In fact, you can also plan to open an e-commerce store for your cell phone accessory business to increase sales.
Along with selling offline if you operate an online store as well, it will increase your customer base and help expand your business quickly.
b) Promote and advertise your business: If you have a wide range of products and wish to attract more and more customers to your store, then the best way is to offer great deals and discounts to customers. You can advertise the deals on the social media platform, through hoardings or leaflets so that you can attract a larger customer base.
As this business does not require a lot of capital to start, therefore, you can invest money in advertising and promoting the products.
c) Ask for feedback: All of us make mistakes, but it is always appreciated if you learn from them. You can keep a feedback form or diary where customers can tell you about the good and bad experiences they had in your store; this will help increase your service quality.
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Mobile phones have become a medium for entertainment more than just its basic use of connecting with each other. Therefore, entering this field can be profitable but ensure that you have a great cell phone accessories business plan to be successful. This business might have many competitors, but if done in the right way, you can earn great rewards in the long run.