Friday, January 16, 2015

How to Start a Cell Phone Accessory Business

Cell Phone Accessory | Business IdeasIf you are business inclined and you happen to wonder what business is good for you to start on, well why not try the cell phone accessory store business! It’s an excellent opportunity for small time entrepreneurs who are looking for a low capital, low start-up and low maintenance business operation. Generally, cell phone accessory store is a lower risk venture compared to a restaurant business where you have to invest tons more of hard earned dollars. Like most businesses, a cell phone accessory store’s major overhead is rent space. However unlike other businesses, this opportunity doesn't rely too much on utility use. A small stall which is visible and easily accessible to walker-bys works great! You add a signage that catches eyes and a couple of see threw glass cabinets with a number of sturdy chairs and you are set. The key is low expenses and liabilities.

Even though the cell phone accessory market is a profitable one, it is also highly competitive. In addition to cell phone franchises selling accessories, independent stores and kiosks can be found in many malls and other public areas. The Internet is also filled with websites and web stores eager to sell cell phone accessories. But if you can find a location with limited competition or create an online presence that outshines the competition, you can build a profitable small business selling cell phone accessories.


Cell Phone Accessories Funds Managing

After you have dealt with your location challenges, your next major overhead would be cell phone accessory supplies. Buy low, sell high. You need to understand this simple economics of business cash exchange. Your profit comes from the difference between your retail price and actual accessory cost. This means you will have to invest on supplies and have your money sleep on them too. This means you have to move your goods fast to recover your money. A better strategy is to find a supplier who can give you consignments without any down payments. This would lower your inventory cash outs. Basically the more items you move on a day to day basis, the quicker you get your money invested back and the quicker you become profitable. 

Homework for Cell Phone Accessory Store

As a small business owner, you should also be knowledgeable about your products. You should know your industry by heart. This means you are familiar with cell phone trends even in your dreams. You eat, drink and sleep cell phones. You should understand and know the different features of cell phones, both old and new models. Know the latest brands. Is it a Nokia, Motorola, Ericsson, Sanyo, Nextel or Samsung? You should also know the different service providers that support these phones. Do they use Sprint, Verizon Wireless, or Cingular? Where are these cell phones made? Are they from China, Germany Finland or US? Do your homework. With the knowledge that you have, you’ll be able to predict which accessory you need to invest on because an accessory is like a unique outfit to a particular unit.

Cell Phone Business Inventory

There are several accessories in the market for cell phones. To name a few, there are different colored phone casings. Some come in neon colors, some come in silk black metallic cases, and I’ve seen some come in stripes and polka dots. Another accessory would be leather cases with credit card holders. This is a great product for the busy type who wants everything by easy reach including phones and credit cards. Strange but I have also seen some use an individualized sock as a phone covering. And they came in several designs too! Some come with cute baby teddy bear stitches. I guess this product was made for the bright-eyed excited individuals who like to project “I’m cute” statements. These are but a few accessories. We haven’t even gone to the one’s we attach to our phones like chargers, batteries, Bluetooth headphones, Blackberry cases, clear snap-on covers and other electronic devices. 

Clearly the cell phone accessory store can be both simple and complex at the same time. As any business, your key to success is having a goal with a dependable business plan, partnered with a great attitude, and maybe a few dollars as well. Preparation is essential to your success!

Instruction: 

Step 1

Choose a location for your cell phone accessory business. Rent retail space or save money by renting a kiosk. Visit local shopping malls and plazas to find a high-traffic location. Avoid locations already serviced by other cell phone or cell phone accessory stores to reduce competition. Contact a real estate agent specializing in commercial real estate to assist you in your search.

Step 2

Set up your store or kiosk. Purchase display racks, hooks and shelves to display inventory. Purchase a cash register and credit card terminal. Open a merchant account with credit card provider companies to accept credit card payments from customers. Purchase sales signs with photos of cell phone accessories to display in the front window of your store or on the walls of your kiosk. List your store or kiosk in mall directories and in online and offline business directories.

Step 3

Open an online store instead of renting retail space or a kiosk. Build a website or open a web store through an e-commerce website, such as eBay. Include photos, product descriptions, pricing and shipping information, return policy and contact information. Create a home office to store inventory, invoices and bookkeeping paperwork. Purchase a computer, desk, comfortable chair, retail software to track inventory and invoices, postal scale, boxes and shipping supplies. Open a merchant account with credit card provider companies and online payment services, such as Paypal, to accept credit card payments.

Step 4

Purchase cell phone accessories from wholesale retailers. Accessories may include head phones, Bluetooth accessories, cell phone covers, wireless keyboards, SIM cards, screen protectors, car chargers, wall adaptors and batteries. Research the latest in cell phone accessory trends by reading industry articles, visiting cell phone provider websites, online forums and competitor websites.

Step 5

Create a customer contact list by asking for email addresses after customers make a purchase at your store, kiosk or online. Use this list to inform customers of new accessories and sales. Use social media websites, such as Facebook or Twitter, to create a loyal customer following. Post valuable information about caring for cell phones and accessories, trendy and entertaining information about cell phones or other information that will grab the customer's attention.

Things Needed 

Tip 

  • Visit the IRS website to apply for an Employer Identification Number (EIN). Use this number on business documentation when applicable. Register your business with your secretary of state and the county clerk's office to prevent other businesses from using your business name. Apply for a sales tax number through the department of revenue to collect sales tax from customers. 

Warning 

  • Carefully monitor inventory to avoid purchasing unpopular or difficult-to-sell items, as you will lose money for unsold items still in stock. 

References

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