How to Start an Electronics Business

In this, the technological age, there are new gadgets and electronics coming out every day. Having the latest in electronics is all the rage - HD, iPods, Blueray and Bluetooth. If you're interested in getting into this technological craze by starting an electronics store, follow these steps. Start by making sure you're well-educated in business policy and procedures by taking online classes.

Steps to Be Taken Before Starting an Electronics Business.

An electronics business provides a variety of mechanical products and parts to consumers, including cell phones, televisions, computers, peripherals and components. If you plan to open this type of business, it's important to prepare yourself with information so that you won't suffer the same fate as large electronic stores that failed like Tweeter and Circuit City.

Instruction:

Step 1

Get your financing in order. Before you can start an electronics store, you need to ensure that you have sufficient financing to do so. You may want to use some of your personal savings to do this, but make sure you can still survive if your business were to fail and you were to lose this money. You can also approach your bank about a personal or small business loan. You will need to have a good business plan prepared to present to them. They will want to see that you have already invested time and effort into your electronics store before they invest one cent in you.

Step 2

Find a store or building. Your electronics store will need a place to call home, and this isn't a decision to be taken lightly. The location of your store is closely linked to how successful it will be. Choose a location that is in a high traffic mall, or on a high traffic street. A spot where crowds frequent is your best option for ensuring these is constant flow in and out of your store. Secure a lease on your selected location (or buy the property, if you're confident), and get to work transforming it to look like an electronics store.

Step 3

Hire some help. You won't be able to start an electronics store alone. You will need to go through the interview and hiring process to find sufficient staff for your electronic store. Look for people with interests or expertise in electronics. Your customers will appreciate working with people who know what they're talking about. If you hire someone that has no previous experience with electronics, make sure that he is properly trained before sending him out onto the sales floor.

Step 4

Purchase store fixtures and inventory. You will need shelving to store your electronics on. You might be able to find some of this second hand or at a recycling depot. But you will likely need some specially made storage as well. Decide on the layout of your store and then purchase shelving to suit it. Then get to work acquiring your inventory. (This is where your initial financing will really come in handy - it won't be cheap to stock your store). Your suppliers will likely send you some signage as well, and this will help you to add color to your store.

Step 5

Advertise. You want your grand opening to be a huge success, and you can ensure this by advertising and through word of mouth. Take out an ad in your local newspaper and offer incentives to the first customers in the door. Have lots of sales going on during the first few weeks that will work to draw customers in. And don't underestimate the power of signs and gimmicks out front of your store. Anything you can do to make people notice your store will result in more people coming in for a peek. That's how you make your profit so find ways to get customers into your electronics store.

Step 6

Open with a blast. On opening day, make sure your staff is prepared and excited. You want the vibe to filter through to your customers so that everyone excited about your electronics store opening. Be prepared for a busy day. And take time to appreciate the results of your efforts to startan electronics store.

Now you're ready to start your business. Just remember, it always helps to keep your skills current with regular refresher courses in business management. You can now take these classes online, so you can continue to work while enhancing your education.

Examine Other Electronics Businesses

Before you start an electronics business, examine and understand the business models of existing electronics businesses. This includes the average price markup charged on goods, strategies for customer satisfaction, and managing supplier relations. You need this information to set your own store policies and prices competitively. Compare successful electronics outlets with those that have closed or failed. You can download detailed profiles on established electronics businesses (e.g., Radio Shack, Best Buy) at such websites as Allbusiness.com and Hoovers.com. Business case studies are available from Harvard Business Publishing's website (see resources).

Create a Competitive Business Plan

Due to the competitiveness and high risk of opening an electronics retail store (10 major chains failed between 1986 and 2007 alone), it's imperative that you create a complete business plan that focuses on your competitive advantages. Use the research you gather from examining case studies and business profiles, as well as any of your own personal experience in electronics, to demonstrate why your electronics business will survive. For instance, if you've managed an electronics store, you'll have knowledge of the inner workings of this type of retail business and you might have an advantage over other new stores.

Raise Funds

An electronics business requires a significant capital investment, so raising funds should be a top concern in the planning stages. If you'll be opening up a brick-and-mortar storefront, you'll need to put up money for various initial needs, including inventory, the store lease, store fixtures, storage space, advertisements and employee wages. For an online business, you need to factor in website creation and maintenance. You can start the process of raising funds by contacting private investment firms and lenders. You must present your business plan to possible investors or lenders, fill out an application and prove your credit worthiness as well as your experience in the field. You should also start building up your personal coffers and talking to family and friends.

Find Out Requirements of Electronics Suppliers

Before you lease space or spend money on your business, you need to investigate the terms and conditions of various electronics suppliers and distributors on the market. You should also call well-known manufacturers of electronic products to find out the requirements for establishing a relationship. This may include a minimum order amount, a business license to prove you are a state-recognized business, and references from other business owners. A distribution representative at the company is the best source for this information. Some manufacturers limit the number of electronics stores they will contract with directly.

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Thursday, March 27, 2014