Cell phones
Cell phone businesses have become more and more prominent. Cell phone carrier stores used to dominate the market, but now many independent businesses are doing well. You will need a few basic things if you're considering starting a cell phone business.
Licenses and Permits
To make sure your business is legitimate, secure a tax ID number and formally choose a business structure. You can be a sole proprietor, which is the least costly and easiest for cell phone stores just starting out, a limited liability corporation (LLC), or limited liability partnership (LLP). If you want to use a business name other than your legal name as a sole proprietor or your corporate name as a corporation, file for an assumed name certificate.
To be able to open wholesale accounts with cell phone suppliers, get a resale certificate.
Money
Starting a cell phone business in a physical store location will cost you the most money, and you need to have at least $10,000 at the start -- this figure all depends on how much your rented space costs, and whether you plan to have employees.
Running an online cell phone business costs less money to start, between $200 and $5,000. You can spend as little as $200 if you plan to dropship your inventory. If you plan to buy your phones wholesale, you will need to spend more, upwards of $5,000.
Location
You can run your business from a physical retail store or through an online store. If you choose a physical storefront, you can rent a mall booth, kiosk, or inline store, or rent space in a strip mall or shopping center. Choose a location that has a lot of foot traffic, as that is where much of your business will come from.
If you want to run an online cell phone store, design an attractive, well-organized site and get a merchant account so you can provide your customers secure payment processing.
Technology
At your business location, you will need a computer, internet connection, and phone at the minimum. Also have a way to track inventory, make, track, and send invoices, and store customer information on your computer.
Inventory
The most important part of your business will be the phones and accessories. Buy these wholesale, which is what you will have to do if you plan to open a physical storefront. Even if you have an online business, buying phones wholesale will result in greater profits.
If you don't have enough startup money for inventory and you want to start an online cell phone business, you can choose to have your inventory dropshipped. Dropshipping is when a manufacturer stores inventory and ships it to a business's customers; to profit, the business has to raise the base price of the items available from the dropshipper. Dropshipping will not make you as much money as buying items wholesale, but if you sell enough items, it can be lucrative. The key to making this scenario work is launching a very effective marketing plan.
Tags: cell phone, your business, online cell, online cell phone, phone business