Since last year, the mobile market has weakened globally due to a variety of factors, including decline in consumer spending and the coronavirus outbreak. Despite this awful situation, India has continued to expand as the world’s fastest-growing mobile market. When the pandemic is over, it will almost surely be restored to its previous vibrancy, and if you are considering taking the risk and starting your own business, now is the time to do so.
The mobile phone has evolved into a conscious and fundamental component of human existence in the modern times. Apart from texts, calls, and other forms of connection, mobile phones are a vital source of information, tracking, and so on. As a result of their routine use in everyday life, people’s dependency on the cell phone is growing.
This, combined with the fact that the cost of a smartphone exceeds that of multiple PCs, explains why cell phone merchants have experienced rapid growth. To be big in this profitable mobile store business, you must have a retail location and approved vendor agreements with the major transporters.
A rising number of consumers are utilizing their cell phones to make purchases and conduct web searches. With the growing interest in this versatile invention, now is the right time to launch a business in this field. A mobile phone startup can be a viable business or a side hustle to generate additional revenue.
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The following is a checklist of important factors to consider when starting a mobile phone shop:
Timing is critical
When launching a business, the right timing can lead to a significant profit and give your new venture a boost. To start a mobile store business in India, you must have a minimal investment and be willing to set up shop anywhere in the country. If you plan to open a small store to sell phones, it is essential to develop an understanding of the market, strategies to succeed in this business, and ways to keep up with this rapidly changing industry. This growing industry is an evergreen business with constant demand. As a result, the profit margins are also high.
Create a mobile store business plan
The next stage in learning how to launch a mobile store is to create a business plan that demonstrates your knowledge of market forces and conditions. The strategy you develop must detail how you will conduct marketing campaigns and outreach, as well as how you will meet the needs of your clients.
- The company strategy must include as much detail as possible about leasing costs, staff costs, and other overhead expenses.
- The plan will serve as a visual representation of your comprehensive business operations.
- Once the resources and expenditures have been identified, you can alter your business strategy accordingly.
If you are wondering how much money you will need to operate a cell phone business, read on. You should first assess your financial status, determining how much money you have and how much you can borrow. Additionally, analyze dangers while investing in this enterprise; it will always involve some level of risk, but it should not be excessive. If you are unable to obtain the minimum amount required for the perfect store in mind, you can compensate by reducing the scale of your operation.
Investment Required
A minimum expenditure of approximately 6 to 9 lakhs is necessary to open a mobile store, depending on the location, size, and merchandise to be supplied. Generally, mobile stores operate well in regions with high foot traffic, such as malls, bus stops, train stations, and shopping complexes.
Amount of Space Required
A mobile store requires an area of approximately 11 × 16 square feet or 160 square feet. The store’s display cases, lighting, cameras, and air conditioning must all be outfitted. It is crucial to have a long counter measuring 9 x 3.75 feet on the left side with glass on the front and top portion and two to three good view cupboards with glass on the rear wall of the counter, all of which should be decorated and illuminated.
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Registrations and Licences Required
Even modest mobile stores managed by one or two people generally generate more than Rs.9 lakhs in annual revenue. As a result, it is prudent to establish the business as a Limited Liability Partnership (LLP). If you intend to open big mobile stores in locations such as malls or to sell online via eCommerce portals, it is advisable to incorporate a corporation.
- Along with the business registration, a VAT number and an Import Export Code would be necessary.
- Most states require those who sell goods worth more than Rs.5 lakhs in a calendar year to register for VAT.
- Service tax registration may be necessary if the mobile business operates a successful mobile service center with annual sales exceeding Rs.8 lakhs.
In essence, VAT registration is required for all mobile stores. Finally, due to cost benefits, the majority of mobile stores now import mobile accessories directly from countries such as China. In such circumstances, where goods are imported, it is prudent to obtain an IE code as well.
Marketing plan
It is critical for business growth that you have a solid marketing strategy in place since failing to do so may make survival difficult.
- Prepare a marketing strategy that demonstrates your understanding of the economic condition and how you want to market and manage clients.
- Regardless of whether you have solid figures for rent and representational expenses, you must research to determine the typical costs.
- Include estimation for initial stock and timely fresh stock. Additionally, you can work towards developing a website to increase customer outreach.
Locate a distributor
Once you have completed all of these tasks, you must perform market research for mobile phone distributors to acquire stock. Then strategically display it in your shop to enhance your sales.
Attracting customers
- Create a showcasing and advertising strategy once your store is fully operational.
- Start with the most cost-effective options: an independent website and other media sites.
- You can additionally or alternatively also invest in newspaper, television, and radio advertisements. In the first few months, it is advisable to focus almost entirely on local media.
- As your company grows, expand your administrations around the state. It will increase brand awareness and generate additional revenue.
- Consider your target audience’s needs and provide additional services to entice and engage with potential customers.
- Challenges, advancements, and rewards are all fantastic ways to secure new business and gain a competitive advantage.
In India, retailers and wholesalers are often required to form a diverse retail business with limited reach. Thus, it is vital that this firm is launched at the optimal time; tremendous benefits can be realized through collaboration.
To conduct this business, it is necessary to assess the purchasing capacity and techniques of those who live in the area of business. Since the mobile phone was not included in the list of essential items, it was previously classified as an expensive item; but, due to changes in public perception, it can now be classified as an important everyday item.
Business Loan For Mobile Store Business
We at Indifi understand how difficult it is for micro, small, and medium-sized businesses to secure loans through banks or other government programs. As a result, we devised a system that enables businesses to easily get funds for their capital needs.
Indifi can aid your business in resolving cash flow problems by:
- providing businesses with collateral-free loans at competitive rates and flexible repayment terms. You may easily apply for the loan online at Indifi and receive the funds within a few days.
- an unsecured line of credit to assist you in managing cash flow requirements before receiving customer payments. You can withdraw cash up to your Indifi credit limit, reimburse it as consumers pay, and borrow again as necessary.
Our specialist loans offer low-interest rates and flexible repayment terms to assist you in overcoming any financial problems linked with your medical facility.
Final Words
The cell phone retailing sector is extremely lucrative, and small independent dealers sometimes find themselves caught off guard in comparison to retail giants. To compete successfully, you may need to give up a piece of your overall revenue and reduce your expenditures to match or even beat other handset makers and their offer prices.
Additionally, you are prone to have a variety of unique offers and limitations constantly, possibly in response to what your competitors are doing and an attempt to shift old stock. A well-known technique is to bundle another phone with extras, such as a hands-free unit, or to provide ‘cashback’ deals.
