The key strength to owning and operating a cell phone repair store is that these businesses are in continued demand given that having a mobile device is now a way of life for most people on a worldwide basis. The barriers to entry for this type of business are considered to be moderately low given that there are a number of people who are familiar with electronics and canned make appropriate fixes to most cell phones. The startup costs associated with this type of business typically ranges anywhere from $50,000 to $100,000 depending on the geographic location in which the business will be operated. The inventory cost for these businesses is typically very low as well with most companies having $5,000 to $10,000 of inventory, furniture, fixtures, and equipment. The vast majority of the start of capital needed for this type of business is typically allocated towards startup costs and working capital needs. One of the ways that these businesses can also maintain a very strong market presence is by partnering with an established cell phone manufacturer or acting as an authorized dealer for a specific type of cell phone brand. Cell phone repair stores are generally able to remain profitable and cash flow positive at all times, and enjoy a tremendous degree of economic staying power.
For weaknesses, the ongoing operational expenses of a cell phone repair store are considered to be moderate. Typically, an individual needs to have a few employees on staff that are very familiar with how cell phones are repaired and this can lead to a very high expense as it relates to training new employees. Additionally, one of the weaknesses associated with this business is that there can be some that relates to the privacy of a customer. Many people carry significant amount of information on their mobile phones – and as such – it is important that proper procedures and protocols are in place to ensure that the privacy of the customers content it remains intact at all times.
For opportunities, many cell phone repair stores expand their operations by simply establishing new locations. As the startup costs associated with the new location are somewhat low, most profitable cell phone repair stores can be expanded very aggressively and very quickly. In some cases, cell phone repair stores will also maintain e-commerce functionality where a customer can mail their phone to the location to have it repaired. This allows the business to operate on a much larger scale given the individual customers do not need to come to the location in order to have their cell phones and tablets fixed. Most financial institutions are willing to provide profitable cell phone stores with business loans and lines of credit for expansion purposes.
For threats, outside of competition within any moderate scale suburban or metropolitan market – there’s very little ongoing risk associated with this business. The usage of mobile devices is expected to continue in perpetuity, and as such – these businesses will be able to remain profitable and cash flow positive in any economic climate. There is currently no pieces of legislation or regulation that would impact the way that these companies conduct their operations.