Business in repairing electronics

Small enterprises have consistently prospered and grown into well-established, multi-billion dollar worldwide entities. To thrive in a reasonably competitive climate, these businesses must go through rigorous procedures and difficult hurdles. Many tiny enterprises have started but failed to succeed in turning a profit that was acceptable. Before allocating resources to a specific industry, a businessperson needs do in-depth analysis to determine whether the endeavor in issue can meet customer wants and generate profits. Poor planning and little research, according to study, have caused beginning businesses to fail. In the business world, not planning is the same as not expecting losses. Every industry is governed by a variety of dynamics, thus before investing resources in a certain area, one must examine all of resources to it. Sometimes businesses are destined to thrive, but failure to analyze one area such as consumer income and existing economic gaps may result in tremendous losses. Despite the nature of research, the final verdict must always incorporate customer analysis because they are the key target for any investment. Interviewing customers will offer knowledge regarding existing gaps in the market and the changes they would want to help satisfy their needs. Small businesses commencement must focus on the market and analyze customer thoughts and demands.

Business Idea

The paper focuses on establishing a small computers and smartphones hardware and software shop for all kind of problems. Before customer analysis, it is important to acknowledge the increased used of electronic devices in the society. The modern economic system has witnessed millions of people working from home and relying on their computers and mobile phones. In schools, teachers and professors send assignments to their students via the internet that requires electronic gadgets to access. Most stores in the country nowadays use automated delivery systems to reach their clients throughout the day. Electronics have become part and parcel of people’s lives hence the need for avenues to keep them running and serviced within the shortest time possible whenever the need arises. Sometimes failure in electronic systems may end up costing business hundreds or even thousands of dollars. According to the initial overview and prefeasibility study, there exist few if any electronics repair shop in the area of interest. Setting up one that is by customer demands and expectations may be a great source of income by capturing a greater section of the existing market.

The operating principles behind most electronics whether mobile phones or computers are closely related. From an engineer’s perspective, components such as transistors, capacitors, and resistors are present in most electronics and their function remains the same across the board. Technicians that are conversant with phones and computers can interact and aid each other in resolving complex issues. Housing the repair facilities under one roof will expand opportunities hence increasing the population of customers. More customers translate to more money and hence sustainability for the business. The job may be overwhelming for a single trained technician and hence the need for two individuals with experience and expertise in the two target fields.

Computers and mobile phones are tiny devices that do not need so much room, and that makes the initial costs considerably low. The business will need a small workshop with spare parts and workspace for the two technicians. Rents for such stores may be below $350 a month, and the management may consider expanding when the need arises. For a start, the low rent may be a great idea as the business markets and establishes itself. When the demand increases, expansion or opening up of more stores may be a viable option. Until then, it is important to keep the operating costs as low as possible so as not to strain the investor because at pupilage businesses rely on the financial input of the owners.

Marketing is a fundamental part of every startup organization’s survival. In the modern business world, social media has become a primary course of advertisement. Facebook pages, Instagram, and Twitter have helped individuals reach out to their target clients. The electronics repair shop must engage customers online to help with quick advertisements so that the entity can get to work and start making profits as well as sustaining itself. Before commencement, every business must have a solid plan of how it intends to reach its customers. An organization may be offering the best services in a state. However, failure to put a functional marketing strategy in place may still witness the organization collapse and in some cases close up.

Part 1: Customer Analysis

Customer Analysis

Great businesspersons assess the market, analyze an opportunity, engage the customers, and then take a risk to invest in the idea. Electronics and smartphones repair shop is a huge opportunity that exists in the market from an overall assessment. However, it would be careless to invest resources before an extensive research and interview of the target customers. As a result, the development of this business idea engaged ten interviewees asking similar questions to establish the viability of the business. Every individual that participated in the survey had sufficient time to speak about the business and offer individual thoughts regarding the idea.

Questions to interviewees

What is your take on establishing a smartphones and repair shop in this market?

How and where do you resolve your electronic gadgets problems?

Would you change the destination of your repair if there was a tech shop nearby?

What is the range of the cost of your repairs?

What is the timeline for your repairs?

How often do you seek tech advice regarding your gadgets?

Would you trust a repair shop to handle your sensitive gadgets?

On a scale of 1 to 10, how much do you think the market needs a repair shop?

Please provide any thoughts, suggestion, or recommendations regarding establishing a tech shop.

Customers Responses

The ten interviewees were random individuals without focusing on specific professionalisms. The strategy was to ensure that the interview process engages everyone and define who the customers are for the proposed venture. The response was positive because every interviewee had some views regarding the issues. Sometimes interviewers have to source for more respondents when some of the targets outline that they do not have an idea regarding the subject in question. However, that was not the case indicating that everybody was a target and potential customer for the small repair shop business. The group comprised of the following:

Two college students

A doctor

Hotel manager

Garbage collector

A mail delivery person

A nurse

A professor

A housewife

All the customers felt that having an electronics repair shop with qualified technicians was a remarkable idea. They all outlined that they had to contact the manufacturers of their devices and incur transportation costs whenever they required it in the workshop for adjustment. Some highlighted that on more than one occasion, they had to send their smartphones to manufacturers to have a setting adjusted, something a technician would have easily helped with and resolved conveniently. Although the enlightenment level among electronics users has increased, not all people can take their tech issues to Google and work them out on their own. A technician would conveniently help these people and save them the resources that they incur in transportation as well as the losses they incur in case their devices are meant for income-generating activities. The frustration among the interviewees regarding having to send their gadgets to manufacturers was a green light for establishing a repair shop in the market.

The customers outlined that they had to be patient whenever their gadgets had issues because of the queues present at manufacturers’ workshops. Sometimes it took two weeks or more before they could get their phones and laptops back. In cases where the warranty period had elapsed, they would incur unreasonable amounts as demanded by the manufacturer technicians. They argued that they had to put up with the frustrations and exploitations because they had no option. Moreover, some believed that having a tech shop within the market would help them know the issues with their gadgets and help them plan for any required repair.

Seven out of the ten interviewees stated that they would shift to a local repair shop without second thoughts. The three remaining individuals outlined that despite the frustrations and high costs, they would not risk taking their expensive electronics devices to a local shop and will always trust the manufacturer. They believed that with the source technicians, nothing can ever go wrong because they can access all the parts and have the device running no matter what, something they said a technician would not guarantee. When asked how they would deal with the losses, they argued that they would only consider a technician support when the stakes were too high.

The cost of repair was another key focal point during the interview. Nine out of ten interviewees confirmed that whatever the manufacturers are charging are unreasonable. First, they have a base fee that all customers must pay irrespective of the problems they have. Sometimes the manufacturer realizes that the solution required a few screen touches or mouse clicks. Despite this revelation, they can never refund the customers because the company policy demands a specific amount for all the check-ins in the repair section. Technicians would never charge such high prices, and that would help the customers save money they lose through policies.

In the interview process, nine out of the ten interviewed seemed to have a consensus regarding many issues with their technological services. A 90% consensus is an indication that the existing opinion or demands cut across the industry or the market in question and hence an easy decision-making opportunity for an investor. A problem only arises when 50% of the target market think in one direction with the other half being of a contradicting opinion. In such a scenario, investors must make calculated risks and be watchful to ensure that they do not lose their investments. Sometimes an opportunity exists, but its execution becomes the defining line between success and failure.

Part 2: Implementation Plan

Business Execution

The Budget

The startup will require very little capital to establish. The necessary workspace is quite small, and the initial stages must work on minimizing rent costs to less than $500 a month. Low rent costs will allow the investors to focus on other aspects of the business such as acquiring spare parts and investing in marketing.

A small business legal permit is another key requirement to ensure that all the operations of the small repair shop are in line with the government set rules and regulations. Failure to follow the regulations usually lead to expensive lawsuits or even worse scenarios such as imprisonment.

A huge share of the budget, about 80%, will go to acquiring spare parts and establishing contacts with various manufacturers to help avail the necessary chips and components whenever the need arises. The business must strive to achieve customer demands within the shortest time possible to warrant its existence and guarantee continuity.

5% of the budget will go to marketing and website development to increase the contact with the customers and get reviews towards improving the business’ services and reaching as many people as possible.

Summary of the proposed budget

No.

Item

Budget

%

Remarks

1

Rent

$500.00

5

Adjustable

2

Spare parts

$8,000.00

80

Adjustable

3

Marketing

$500.00

5

Adjustable

4

Website

$1000

10

Adjustable

5

Miscellaneous

-



Adjustable



TOTAL



100

Adjustable



Time Frame

The execution of the business plan will require at least one year to ensure that everything is in place for successful operations. The first three months will handle research before the management invests any money in the venture. The next two months will handle space acquisition and stocking of the store with various equipment. The remaining seven months will be dedicated to training and getting familiar with various aspects of the business. After twelve months, the business should be ready to run and serve the market that highly demands its services.





Conclusion

Proper planning would guarantee the success of the electronics repair shop business. According to the interview, there exists a gap and demand in the market. Customers need fast and reliable repair services to help them evade lengthy and expensive services offered by the manufacturers. Moreover, they lose so much when the manufacturers hold their devices for long without considering whether they are for personal or business use. The most encouraging aspect of the research and the interview is the size of the market as it includes everybody in the society irrespective of age or professions hence a guarantee of customers.

Executive Summary

Electronics and technology have become fundamental in human lives making investing in them a viable idea for a guaranteed income. However, many people are aware of these opportunities making the business opportunities in the sector competitive. The viable investment opportunities have reduced, but creativity always guarantees development and success. The paper has focused on an all in one electronics repair shop that will help customers resolve their issues within the shortest time possible. The business seeks to invest one thousand dollars in acquiring spare parts, paying rent, and conduct thorough marketing. The final verdict regarding the investment largely relies on the interview responses by the customers regarding an existing business opportunity in the market. Understanding the market requirement always offer a green light for investors to pursue a given course or forego it to avoid losses.

The business idea proved viable because everybody in the society was a target market because of the increased acquisition and use of electronic devices. Moreover, most people have suffered delays because of the long procedures and gadget queues at manufacturers’ workshops. Despite the trust in the quality of services that the original producers offer, sometimes clients want quick services to allow them to enjoy the services of the gadgets they invested in heavily. Customer analysis will always establish the best course for investment with the best line of judgment.