mobile phone distribution business plan

Cell Phone Accessories Store Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business Plans » Wholesale & Retail

Do you want to start a cell phone store and need to write a plan? If YES, here is a sample cell phone accessories business plan template & feasibility report.

In as much as people still make use of cell phones, the demand for cell phone accessories will continue to rise. Cell phone accessories store business is indeed a profitable business because the replacement of damaged or worn-out cell phone parts and accessories is compulsory to extend the lifespan of cell phones.

If you are looking for a business to start as an entrepreneur and you know you have an interest in the technology cum cell phone industry, then you should consider starting your own cell phone accessories business. Although you don’t need a college degree to establish this business, but you need some form of informal training, you might have to work as an apprentice with someone who owns a cell phone accessories store.

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It is important to point out that cell phone accessories store business can’t go out of fashion because of the role it plays in the cell phone industry. Depending on the scale you want to start, the startup capital for this type of business can be considered to range from small to moderate.

As a matter of fact, you can start your own cell phone accessories store from a mobile store and then grow it big within a short period of time by re-investing your profits back to the business.

If you are sure this type of business is what you want to do after you must have conducted your feasibility studies and market research, then the next step to follow is to write a good business plan; a detailed blue print of how you intend raising your seed capital, setting up the business, managing the flow of the business, sorting out tax and marketing your services.

Below is a sample cell phone accessories store business plan template that will help you write yours without much stress.

A Sample Cell Phone Accessories Store Business Plan Template

1. industry overview.

Cell phone accessories include any hardware that is not integral to the operation of a mobile smartphone as designed by the manufacturer. Cell phone accessories stores is a subset of the Smartphones industry and operators in this industry retail smartphones and accessories through traditional brick-and-mortar outlets, online websites and by mail order.

IBISWorld projected that over the five years to 2022, the Retail Market for Smartphones industry is anticipated to benefit from the growing demand for smartphones and increasing percentage of services conducted online. As per capita disposable income increased, consumers have increasingly purchased discretionary items. Smartphones are considered particularly discretionary because they are at the higher-end of the cellphone market.

Furthermore, the industry has benefited from a rise in the popularity of products spanning a wide range of price points. This industry benefits from constantly improving technology, which benefits operators in two different ways. As technology improves, the efficiency of manufacturing certain smartphones rises and the cost typically falls.

Going forward, the Retail Market for the Smartphones industry is anticipated to continue to benefit from growing disposable income and increasing demand for smartphones, specifically those at the higher end of the market. Per capita disposable income is anticipated to increase at an annualized rate going forward.

During this time, consumers are anticipated to upgrade and purchase new smartphones as they are less wary about spending money on discretionary purchases. Industry growth is anticipated to slow down as the smartphone market becomes saturated, however as it becomes a consumer stable, industry operators will likely improvise to stay afloat.

Statistics has it that in the united states of America alone, there are about 40,558 registered and licensed smartphones retail stores scattered all across the United States responsible for directly employing about 467,650 people and the industry rakes in a whooping sum of $86 billion annually.

The industry is projected to grow at 10.1 percent annual growth within 2015 and 2022. It is important to state that Apple Inc., Verizon Wireless, AT&T Inc. and Best Buy Co. Inc. have the largest chunk of the available market share in the industry.

A close observation of the Retail Market for the Smartphones industry shows that the industry has low barriers to entry. In the United States, the industry is subject to few restrictive regulations, and industry employees typically do not need to be trained formally to be able to carry out their duties.

The tough part as it relates to start-up costs is the supply of cell phone accessories from wholesalers or directly from manufacturing companies, because cell phone accessories store business cannot be started without sourcing products for sale.

Regardless of low barriers to entry, the competitive nature of the industry makes it very difficult for new operators to break even within a short period of time in the industry.

2. Executive Summary

John Lyon® Cell Phone Accessories Stores, Inc. is a registered cell phone accessories store that will be located in one of the busiest streets in Harrington – Delaware. We have been able to lease a standard store facility in a technology hub in the city and the store is located in a corner piece property along a major road close to one of the largest residential estates in Harrington – Delaware.

John Lyon® Cell Phone Accessories Stores, Inc. will retail Cases, which are designed to attach to, support, or otherwise hold a smartphone, mass storage component (SD card, SD card slot and special USB micro-B flash drive), chargers and external batteries, selfie sticks, smartphone tripod mount and micro-USB to HDMI cables that are used in smartphones with MHL et al from different manufacturers (brands) from the United States and abroad.

We are aware that there are several cell phone accessories store outlets all around Harrington – Delaware, which is why we spent time and resources to conduct a thorough feasibility studies and market survey so as to be well positioned to favorably compete with all our competitors.

We have an online – service option for our customers, and our outlet is has various payment options. We will ensure that we get our customers involved in the selection products (brands) that will be in our store and also when making some business decisions that directly affect them.

John Lyon® Cell Phone Accessories Stores, Inc. will at all times demonstrate her commitment to sustainability, both individually and as a firm, by actively participating in our communities and integrating sustainable business practices wherever possible.

We will ensure that we hold ourselves accountable to the highest standards by meeting our customers’ needs precisely and completely whenever they patronize our products.

John Lyon® Cell Phone Accessories Stores, Inc. is owned by John Lyon. John Lyon has a Diploma in Computer Technology, with over 5 years’ experience in the retailing industry, working for some of the leading brands in the United States.

Although the business is launching out with just one outlet in Harrington – Delaware, but they have a long term plan to open other outlets around major cities in the United States and Canada via franchising.

3. Our Products and Services

John Lyon® Cell Phone Accessories Stores, Inc. is in the retail market for the Smartphones to service a wide range of clients and of course to make profits, which is why we will make available a wide range of cell phone accessories from top manufacturing brands in the United States and other countries of the world.

Our product offerings are listed below;

Phone Cases (Pouches and sleeves, Holsters, Shells, Skins, Fitted cases, Bumpers, Flip cases and wallets, Screen protection and body films, Drop and shock protection and Leather case)
Mass storage component (SD card, SD card slot and special USB micro-B flash drive)
Chargers and external batteries,
Selfie sticks, smartphone tripod mount
Micro-USB to HDMI cables used in smartphones with MHL

4. Our Mission and Vision Statement

Our vision is to become one of the leading brands in the smartphones retail market in Delaware and to establish a one stop cell phone accessories store in Harrington – Delaware and in other key cities in the United States of America.
Our mission is to establish a world – class cell phone accessories store that will make available a wide range of cell phone accessories from top manufacturing brands at affordable prices to residents of Harrington – Delaware.

Our Business Structure

Our intention of starting a cell phone accessories store business is to build a standard store outlet in Harrington – Delaware.

Although our cell phone accessories store might initially not be as big as some of the biggest in the industry, but we will ensure that we put the right structures in place that will support the kind of growth that we have in mind while setting up the business.

We will ensure that we hire people that are qualified, honest, customer centric and are ready to work to help us build a prosperous business that will benefit all the stakeholders.

As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of ten years or more. In view of that, we have decided to hire qualified and competent hands to occupy the following positions;

Chief Executive Officer (Owner)
Store Manager
Human Resources and Admin Manager

Merchandize Manager

Sales and Marketing Manager

Information Technologist

Accountants/Cashiers
Sales Agents/Customer Services Executive

5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results
Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
Responsible for fixing prices and signing business deals
Responsible for providing direction for the business
Responsible for signing checks and documents on behalf of the company
Evaluates the success of the organization
Reports to the board

Admin and HR Manager

Responsible for overseeing the smooth running of HR and administrative tasks for the organization
Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
Defining job positions for recruitment and managing interviewing process
Carrying out induction for new team members
Responsible for training, evaluation and assessment of employees
Responsible for arranging travel, meetings and appointments
Oversee the smooth running of the daily office cum business activities.

Store Manager:

Responsible for managing the daily activities in the store
Ensures that proper records of cell phone accessories are kept and the warehouse does not run out of products
Ensure that the store facility is in tip top shape and goods are properly arranged and easy to locate
Control cell phone accessories distribution and supply chain inventory
Manage vendor relations, market visits, and the ongoing education and development of the organizations’ buying teams
Help to ensure consistent quality of Cases, mass storage component (SD card, SD card slot and special USB micro-B flash drive), chargers and external batteries, selfie sticks, smartphone tripod mount and micro-USB to HDMI cables are purchased and retailed in good price that will ensure we make good profit
Responsible for planning sales, monitoring inventory, selecting the merchandise, and writing and pricing orders to vendors
Manage external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
Model demographic information and analyze the volumes of transactional data generated by customer purchases
Identify, prioritize, and reach out to new partners, and business opportunities et al
Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
Document all customer contact and information
Represent the company in strategic meetings
Help increase sales and growth for the company
Manage the organization website
Handles ecommerce aspect of the business
Responsible for installing and maintenance of computer software and hardware for the organization
Manage logistics and supply chain software, Web servers, e-commerce software and POS (point of sale) systems
Manage the organization’s CCTV
Handles any other technological and IT related duties.

Accountant/Cashier:

Responsible for preparing financial reports, budgets, and financial statements for the organization
Provides managements with financial analyses, development budgets, and accounting reports
Responsible for financial forecasting and risks analysis.
Performs cash management, general ledger accounting, and financial reporting
Responsible for developing and managing financial systems and policies
Responsible for administering payrolls
Ensuring compliance with taxation legislation
Handles all financial transactions for the organization
Serves as internal auditor for the organization

Client Service Executive

Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
Through interaction with customers on the phone, uses every opportunity to build client’s interest in the company’s products and services
Manages administrative duties assigned by the human resources and admin manager in an effective and timely manner
Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to customers when they make enquiries
Find out the customer’s needs, recommend, select and help locate the right merchandise, describe a product’s features and benefits.
Make suggestions and encourage purchase of products
Provide information about warranties, manufacturing specifications, care and maintenance of merchandise and delivery options
Bag or package purchases and gift wrap merchandise
Responsible for cleaning all the cell phone accessories and the store facility at all times
Ensure that toiletries and supplies don’t run out of stock
Handle any other duty as assigned by the store manager.

6. SWOT Analysis

Our intention of starting just one outlet of our cell phone accessories store in Harrington – Delaware is to test run the business for a period of 2 to 5 years to know if we will invest more money, expand the business and then open other outlets in Delaware and key cities in the United States.

We are quite aware that there are several cell phone accessories stores all over Harrington and even in the same location where we intend locating ours, which is why we are following the due process of establishing a business.

We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be equipped to confront our threats.

John Lyon® Cell Phone Accessories Stores, Inc. employed the services of an expert HR and Business Analyst with bias in retailing to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals and objectives. This is the summary of the SWOT analysis that was conducted for John Lyon® Cell Phone Accessories Stores, Inc.;

Our location, the business model we will be operating on, varieties of payment options, wide range of cell phone accessories from different manufacturing brands and our excellent customer service culture will definitely count as a strong strength for John Lyon® Cell Phone Accessories Stores, Inc. So also, our team of highly qualify staff members is also a plus for us.

A major weakness that may count against us is the fact that we are a new cell phone accessories store outlet in Harrington – Delaware and we don’t have the financial capacity to compete with multi – million dollar outlets when it comes to retailing at a rock bottom prices.

Opportunities:

The fact that we are going to be operating our cell phone accessories store in a corner piece property along a major road close to one of the largest residential estates in Harrington – Delaware provides us with unlimited opportunities to sell our accessories to a large number of people.

We have been able to conduct thorough feasibility studies and market survey and we know what our clients will be looking for when they visit our outlet; we are well positioned to take on the opportunities that will come our way.

Just like any other business, one of the major threats that we are likely going to face is economic downturn. It is a fact that economic downturn affects purchasing/spending power. Another threat that may likely confront us is the arrival of a new cell phone accessories outlet in same location where ours is located. So also, unfavorable government policies may also pose a threat to businesses such as ours.

7. MARKET ANALYSIS

Market Trends

Experts projected that in 2017, the retail market for the Smartphones industry is expected to profit from growing global economic conditions.

Per capita income levels have scaled across the globe and a growing numbers of teens in emerging economies have looked to purchase their own smartphones. As the demand for new smartphones increases, original equipment manufacturers supply more components to industry operators.

A resurgence in demand for new smartphones has stimulated industry profit, as operators were able to increase sales. Steady growth in economic conditions will create avenues for consumers to release pent-up demand for high – end smartphones, hence the increase in demand for upstream supplies.

If you are conversant with the retail market for the Smartphones industry, you will quite agree that the original equipment refers to cell phone parts and accessories that are manufactured to the specification of cell phone manufacturers.

These standards are global, and cell phone manufacturers typically source the same part from different suppliers. Even though these parts and accessories are manufactured by companies in the industry, original equipment carries the name of the final cell phone assembler.

The cell phone accessories stores landscape has seen tremendous changes in the last 20 years; it has grown from the smaller outlets to a more organized and far reaching venture. The introduction of franchise and online store makes it easier for a cell phone accessories retailer to reach out to a larger market far beyond the areas where his physical store is located.

8. Our Target Market

Those who patronize cell phone accessories store cut across all genders above 18 years with the financial means and who own cell phones, hence the target market for cell phone accessories store business is all encompassing. In essence, your target market can’t be restricted to just a group of people, but all those who own cell phones.

In view of that, we have positioned our cell phone accessories store to service the residents of Harrington – Delaware and every other location where our outlets stores will be located all over key cities in the United States of America and Canada.

We have conducted our market research and feasibility studies and we have ideas of what our target market would be expecting from us.

Our Competitive Advantage

A close study of the retail market for the Smartphones industry reveals that the market has become much more intensely competitive over the last decade. As a matter of fact, you have to be highly creative, customer centric and proactive if you must survive in this industry.

We are aware of the stiff competition and we are prepared to compete favorably with other leading cell phone accessories stores in Harrington – Delaware.

John Lyon® Cell Phone Accessories Stores, Inc. is launching a standard phone accessories store that will indeed become the preferred choice of residence of Harrington – Delaware and every other location where our outlets will be opened.

Our cell phone accessories store is located in a corner piece along a major road close to one of the largest residential estates in Harrington – Delaware.

We will ensure that we have a wide range of cell phone accessories from leading manufacturers available in our store at all times. It will be difficult for customers to visit our store and not see the type of cell phone accessories they are looking for.

One of our business goals is to make John Lyon® Cell Phone Accessories Stores, Inc. a one stop cell phone accessories retail shop. Our excellent customer service culture, online store, various payment options and highly secured facility will serve as a Competitive Advantage for us.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and objectives.

We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time.

9. SALES AND MARKETING STRATEGY

Sources of Income

John Lyon® Cell Phone Accessories Stores, Inc. is in business to retail a wide range of cell phone accessories to residents of Harrington – Delaware. We are in the industry to maximize profits and we are going to ensure that we achieve or business goals and objectives. John Lyon® Cell Phone Accessories Stores, Inc. will generate income by selling the following products;

10. Sales Forecast

One thing is certain when it comes to cell phone accessories stores, if your store is stocked with various types of cell phone accessories and is centrally positioned, you will always attract customers cum sales.

We are well positioned to take on the available market in Harrington – Delaware and we are quite optimistic that we will meet our set target of generating enough income/profits from the first six months of operation and grow the business and our clientele base.

We have been able to examine the cell phone accessories stores industry and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. Below are the sales projections for John Lyon® Cell Phone Accessories Stores, Inc. it is based on the location of our business and other factors as it relates to cell phone accessories stores in the United States;

First Fiscal Year (FY1): $240,000
Second Fiscal Year (FY2): $350,000
Third Fiscal Year (FY3): $550,000

N.B : This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor within our market space. Please note that the above projection might be lower and at the same time it might be higher.

Marketing Strategy and Sales Strategy

Before choosing a location for John Lyon® Cell Phone Accessories Stores, Inc. we conducted a thorough market survey and feasibility studies in order for us to penetrate the available market and become the preferred choice for residents of Harrington – Delaware.

We have detailed information and data that we were able to utilize to structure our business to attract the number of customers we want to attract per time.

We hired experts who have good understanding of the cell phone accessories stores industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in Harrington – Delaware.

In summary, John Lyon® Cell Phone Accessories Stores, Inc. will adopt the following sales and marketing approach to win customers over;

Introduce our cell phone accessories store by sending introductory letters alongside our brochure to key stakeholders in Harrington – Delaware
Ensure that we have a wide range of cell phone accessories from different brands at all times.
Make use of attractive hand bills to create awareness and also to give direction to our store
Position our signage/flexi banners at strategic places around Harrington – Delaware
Position our greeters to welcome and direct potential customers
Create a loyalty plan that will enable us reward our regular customers
List our business and products on yellow pages ads (local directories)
Leverage on the internet to promote our business
Engage in direct marketing and sales
Encourage the use of Word of mouth marketing (referrals)
Join local chambers of commerce and industries to network and market our products

11. Publicity and Advertising Strategy

Despite the fact that our cell phone accessories store is well located, we will still go ahead to intensify publicity for the business.

John Lyon® Cell Phone Accessories Stores, Inc. has a long-term plan of opening outlets in various locations all around Delaware and key cities in the United States which is why we will deliberately build our brand to be well accepted in Harrington before venturing out.

Here are the platforms we intend leveraging on to promote and advertise John Lyon® Cell Phone Accessories Stores, Inc.;

Place adverts on community based newspapers, radio stations and TV stations.
Encourage the use of word of mouth publicity from our loyal customers
Leverage on the internet and social media platforms like; YouTube, Instagram, Facebook, Twitter, LinkedIn, Snapchat, Google+ and other platforms to promote our business.
Ensure that our we position our banners and billboards in strategic positions all around Harrington – Delaware
Distribute our fliers and handbills in target areas in and around our neighborhood
Advertise our cell phone accessories store business in our official website and employ strategies that will help us pull traffic to the site
Brand all our official cars and trucks and ensure that all our staff members and management staff wear our branded shirt or cap at regular intervals.

12. Our Pricing Strategy

On the average, there is a standard price for various cell phone accessories hence the prices of our cell phone accessories will conform to what is obtainable in the industry but we will ensure that within the first 6 to 12 months our products are sold a little bit below the average price in the market.

We have put in place business strategies that will help us run on low profits for a period of 6 months; it is a way of encouraging people to buy into our brands.

Payment Options

The payment policy adopted by John Lyon® Cell Phone Accessories Stores, Inc. is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.

Here are the payment options that John Lyon® Cell Phone Accessories Stores, Inc. will make available to her clients;

Payment via bank transfer
Payment with cash
Payment via credit cards
Payment via online bank transfer
Payment via check
Payment via mobile money transfer

In view of the above, we have chosen banking platforms that will enable our clients make payment for our cell phone accessories purchase without any stress on their part.

13. Startup Expenditure (Budget)

When it comes to starting a cell phone accessories business the major areas that you look towards spending the bulk of your cash is in the purchase of a wide range of cell phone accessories from different manufacturing brands and of course renting or leasing a well located store facility.

You are also expected to pay your employees and your utility bills. These are the key areas where we will spend our startup capital on;

The total fee for registering the business in the United States of America – $750.
Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $3,300.
Marketing promotion expenses for the grand opening of John Lyon® Cell Phone Accessories Stores, Inc. in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
The cost for hiring business consultant – $2,500.
Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
The cost for payment of rent for 12 months at $1.76 per square feet in the total amount of $55,600.
The cost for shop remodeling (construction of racks and shelves) – $20,000.
Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500).
Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000
The cost for start-up inventory (stocking with a wide range of cell phone accessories from different manufacturing brands) – $50,000
The cost for counter area equipment – $1,500
The cost for store equipment (cash register, security, ventilation, signage) – $3,750
The cost of purchase and installation of CCTVs: $10,000
The cost for the purchase of office furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al): $4,000.
The cost of launching a website: $600
Miscellaneous: $10,000

We would need an estimate of two hundred and fifty thousand dollars ($250,000) to successfully set up our standard cell phone accessories store in Harrington – Delaware.

Generating Funds/Startup Capital for John Lyon® Cell Phone Accessories Stores, Inc.

John Lyon® Cell Phone Accessories Stores, Inc. is a private registered business that is owned and financed by John Lyon. He has decided to restrict the sourcing of the startup capital to 3 major sources.

Generate part of the startup capital from personal savings
Source for soft loans from family members and friends
Apply for loan from my Bank

N.B: We have been able to generate about $50,000 (Personal savings $30,000 and soft loan from family members $20,000) and we are at the final stages of obtaining a loan facility of $200,000 from our bank. All the papers and documents have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.

14. Sustainability and Expansion Strategy

Part of the plans we have in place to sustain John Lyon® Cell Phone Accessories Stores, Inc. is to ensure that we continue to make available a wide range of cell phone accessories from different manufacturing brands, deliver quality services, improvise on how to do things faster and cheaper. We are not going to relent in providing conducive environment for our workers.

From our findings, another factor that kills new businesses is financial leakages. In order to plug financial leakages, the management of John Lyon® Cell Phone Accessories Stores, Inc. adopted the use of payment machine and accounting software to run the business.

We are quite aware that our customers are key component to the growth and survival of our business hence we are going to continuously engage them to give us ideas on how to serve them better and the products they want to see in our store. We will not waste time in adopting new technology, best practices and diversifying our services.

John Lyon® Cell Phone Accessories Stores, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List/Milestone

Business Name Availability Check : Completed
Business Registration: Completed
Opening of Corporate Bank Accounts: Completed
Securing Point of Sales (POS) Machines: Completed
Opening Mobile Money Accounts: Completed
Opening Online Payment Platforms: Completed
Application and Obtaining Tax Payer’s ID: In Progress
Application for business license and permit: Completed
Purchase of Insurance for the Business: Completed
Leasing of store facility and remodeling the store: In Progress
Conducting Feasibility Studies: Completed
Generating capital from family members: Completed
Applications for Loan from the bank: In Progress
Writing of Business Plan: Completed
Drafting of Employee’s Handbook: Completed
Drafting of Contract Documents and other relevant Legal Documents: In Progress
Design of The Company’s Logo: Completed
Printing of Packaging and Promotional Materials: In Progress
Recruitment of employees: In Progress
Purchase of the needed furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
Creating Official Website for the Company: In Progress
Creating Awareness for the business both online and around the community: In Progress
Health and Safety and Fire Safety Arrangement (License): Secured
Compilation of our list of products that will be available in our store: Completed
Establishing business relationship with vendors – manufacturers and suppliers of cell phone accessories: In Progress

How to Craft a Business Plan for a Mobile Phone Store in 2024

Mobile Phone Store Bundle

Launching a successful mobile phone store requires meticulous planning and preparation. Before drafting your business plan, it's crucial to assess market demand, evaluate the competition, and determine your target customer segments . Equally important is developing a financial plan, securing necessary licenses and permits, and identifying operational requirements . This comprehensive 9-step checklist outlines the essential groundwork to ensure your mobile phone store venture is poised for success from the outset.

Steps Prior To Business Plan Writing

Assess market demand and competition in the local area.

Before embarking on the journey of opening a mobile phone store, it is crucial to thoroughly assess the market demand and competition in the local area. This step lays the foundation for a well-informed business plan and increases the likelihood of long-term success for PocketTech Haven .

Begin by conducting a comprehensive market analysis to understand the current landscape of the mobile phone industry in the target location. Gather data on the size of the local market , the average consumer spending on mobile phones and accessories , and the growth trends in the industry. This information will help you gauge the overall market potential and identify any untapped opportunities.

Next, examine the competitive landscape by identifying the existing mobile phone stores in the area. Analyze their product offerings, pricing strategies, customer service, and overall market share. This will enable you to differentiate your business and develop a unique value proposition that sets PocketTech Haven apart from the competition.

Utilize online resources, industry reports, and local market data to gather comprehensive market and competitive intelligence.
Conduct surveys or interviews with potential customers to understand their needs, preferences, and pain points when it comes to mobile phone purchases and services.
Explore the demographic and psychographic profiles of your target customer segments to tailor your offerings and marketing strategies accordingly.

By thoroughly assessing the market demand and competition, you can make informed decisions about the viability of the PocketTech Haven business model, the pricing structure, and the unique value proposition that will attract and retain customers in the local market.

Determine the Target Customer Segments and Their Needs

To ensure the success of your mobile phone store, it is crucial to clearly identify the target customer segments and understand their specific needs. By conducting thorough market research, you can gain valuable insights that will shape the strategic direction of your business and inform your product and service offerings.

One of the key factors to consider is the age demographics of your potential customers. According to industry data, the largest segment of mobile phone users is the 25-34 age group, accounting for approximately 30% of the total market . This age group is typically tech-savvy, values convenience, and is often seeking the latest smartphone models and accessories.

Analyze the age distribution of the local population to determine the predominant age groups in your target area.
Conduct surveys or focus groups to understand the specific needs and preferences of different age segments, such as the desire for the latest features, budget-friendly options, or specialized services.

In addition to age, it is important to consider the income levels and purchasing power of your target customers. Research indicates that the average annual household income for mobile phone users is around $65,000 . However, it is essential to cater to a range of income levels, as some customers may be seeking more budget-friendly options, while others may be willing to invest in premium devices and accessories.

Analyze the income distribution in your local market and identify the predominant income brackets.
Develop a product and pricing strategy that addresses the needs of customers across different income levels, ensuring your mobile phone store caters to a diverse customer base.

Another crucial factor to consider is the lifestyle and needs of your target customers. Research shows that 60% of mobile phone users prioritize features like camera quality, battery life, and overall device performance . Additionally, a growing segment of customers is interested in sustainability and eco-friendly options, as well as specialized services such as device repair and trade-in programs.

Conduct market surveys to understand the specific needs and preferences of your target customers, such as their priorities in terms of device features, accessories, and services.
Develop a product and service offering that aligns with the lifestyle and needs of your target customer segments, ensuring your mobile phone store stands out from the competition.

By thoroughly understanding your target customer segments and their unique needs, you can tailor your mobile phone store's products, services, and marketing strategies to effectively meet their demands. This deep understanding of your customer base will be a critical foundation for the success of your business plan and the overall viability of your mobile phone store.

Evaluate the Viability of the Proposed Business Model

Evaluating the viability of the proposed business model is a critical step in the process of writing a comprehensive business plan for a mobile phone store. This assessment helps to determine the feasibility and long-term sustainability of the venture, ensuring that the business is well-positioned to meet the needs of the target market and generate sufficient revenue to cover expenses and turn a profit.

To evaluate the viability of the mobile phone store business model, it is essential to consider several key factors:

Market Demand and Competition Analysis: Conduct thorough research to understand the current and projected demand for mobile phones and accessories within the local market. Analyze the competitive landscape, including the strengths and weaknesses of existing mobile phone retailers, to identify opportunities for differentiation and sustainable growth.
Target Customer Segments and Needs: Clearly define the target customer segments, their specific needs, and purchasing behaviors. Assess whether the proposed product and service offerings align with the identified customer preferences and pain points.
Financial Projections and Feasibility: Develop a detailed financial plan that includes accurate projections for start-up costs, ongoing operational expenses, and anticipated revenue streams. Analyze the potential for profitability and determine the minimum sales required to achieve a sustainable business model.
Operational Capabilities and Scalability: Evaluate the availability of suitable retail space, the necessary inventory and equipment, and the required staffing and operational processes. Assess the business's ability to scale and adapt to changing market conditions or customer demands.
Regulatory and Legal Compliance: Identify all the relevant licenses, permits, and legal requirements for operating a mobile phone store in the local jurisdiction. Ensure that the proposed business model aligns with all applicable regulations and industry standards.
Consider conducting a SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) to gain a comprehensive understanding of the internal and external factors that may impact the viability of the mobile phone store business model.
Seek input from industry experts, potential customers, and financial advisors to validate your assumptions and refine the business model as needed.

By thoroughly evaluating the viability of the proposed mobile phone store business model, you can make informed decisions, identify potential risks and challenges, and develop a solid foundation for the successful implementation of your business plan.

Identify the Necessary Licenses, Permits, and Legal Requirements

Before launching a successful mobile phone store, it is crucial to ensure that all necessary licenses, permits, and legal requirements are in place. Navigating the regulatory landscape can be a complex process, but it is essential for the long-term viability and compliance of your business.

The specific licenses and permits required for a mobile phone store will vary depending on your location, as different states, counties, and municipalities may have their own set of requirements. However, there are some common elements that you should consider:

Business License: Obtain a general business license or permit from your local municipality or county to operate a commercial enterprise within the designated area.
Sales Tax Permit: Register for a sales tax permit or license, which will allow you to collect and remit the appropriate sales taxes on your transactions.
Retail/Merchant License: Depending on your location, you may need a specific retail or merchant license to engage in the sale of goods and services.
Zoning and Land-Use Permits: Ensure that the location you have selected for your mobile phone store is zoned for commercial use and that you have the necessary permits to operate a business in that area.
Signage and Advertising Permits: Obtain any required permits for the installation of signage, outdoor advertising, or other marketing materials that will be used to promote your business.
Occupational Licenses: If your state or local jurisdiction requires specific occupational licenses or certifications for certain roles within your mobile phone store, such as technicians or repair specialists, ensure that you and your staff have the necessary documentation.
Insurance Coverage: Secure the appropriate insurance policies, such as general liability, property, and workers' compensation, to protect your business and employees.
Familiarize yourself with the specific requirements in your local area by contacting your city or county government offices, as well as any relevant industry associations or regulatory bodies.
Stay up-to-date on any changes or updates to the licensing and permit requirements, as they may evolve over time.
Consider consulting with a local business attorney or accountant to ensure that you are fully compliant with all applicable laws and regulations.

By thoroughly addressing the necessary licenses, permits, and legal requirements, you can lay the foundation for a mobile phone store that operates within the bounds of the law and avoids potential fines or legal issues down the line. This proactive approach will help ensure a smooth launch and ongoing success for your business.

Develop a Preliminary Financial Plan and Projected Costs

Crafting a robust financial plan is a critical step in developing a comprehensive business plan for your mobile phone store. This plan will serve as a roadmap, outlining the necessary capital investment, projected revenue streams, and anticipated expenses. By meticulously mapping out your financial projections, you can assess the viability of your business model and make informed decisions to ensure long-term success.

To begin, you'll need to estimate the start-up costs associated with opening your mobile phone store. These may include the cost of securing a suitable retail space, purchasing inventory and equipment, obtaining necessary licenses and permits, and covering any initial marketing and advertising expenses. Industry data suggests that the average start-up cost for a mobile phone store can range from $50,000 to $150,000 , depending on the location, size, and scope of your operation.

Carefully research and document all potential start-up expenses to ensure you have a comprehensive understanding of the capital required to get your business off the ground.

Next, you'll need to project your ongoing operational costs . These may include rent, utilities, employee salaries, inventory replenishment, insurance, and maintenance expenses. By analyzing industry benchmarks and your specific business model, you can estimate these costs and factor them into your financial projections. According to industry data, the average monthly operating expenses for a mobile phone store can range from $10,000 to $30,000 , depending on the size and location of the store.

To determine your potential revenue streams, you'll need to carefully analyze the market demand for mobile phones and accessories in your local area. This may involve conducting market research, studying competitor pricing and offerings, and projecting sales based on the target customer segments you've identified. Industry data suggests that the average annual revenue for a successful mobile phone store can range from $500,000 to $2,000,000 , depending on the size and market position of the business.

Leverage industry benchmarks and data to inform your financial projections, but be sure to tailor your estimates to the unique characteristics of your local market and business model.

By combining your start-up cost estimates, ongoing operational expenses, and projected revenue, you can develop a comprehensive financial plan that will serve as the foundation for your mobile phone store business plan. This plan should include cash flow projections, profit and loss statements, and a balance sheet to provide a clear picture of your business's financial viability and growth potential.

Assess the availability of suitable retail space and location

Securing the right retail space and location is a critical step in establishing a successful mobile phone store. The physical storefront and its strategic placement can significantly impact your business's visibility, accessibility, and overall success. As you develop your business plan, carefully evaluating the available retail options in your target market is essential.

Begin by researching the local real estate market and identifying potential retail spaces that align with your business requirements. Consider factors such as square footage , lease rates , and the overall condition of the property . Ensure that the space can accommodate your inventory, customer flow, and any necessary repair or service areas.

Aim for a retail space between 800 to 1,200 square feet to provide ample room for product displays, customer service, and potential future growth.
Negotiate a competitive lease rate that aligns with your financial projections and allows for sustainable profitability.
Inspect the property carefully, considering factors like accessibility, visibility, parking availability , and the overall condition of the building .

In addition to the physical space, the location of your mobile phone store is equally important. Analyze the foot traffic, demographics, and competition in the surrounding area to ensure your store will be positioned for maximum visibility and customer reach. Ideally, your store should be located in a high-traffic area, such as a shopping mall, commercial district, or a bustling residential neighborhood.

Aim to locate your store in an area with a population of at least 20,000 people within a 3-mile radius to ensure a sufficient customer base.
Consider the average household income and the percentage of residents aged 18-45 in the target area, as these demographic factors can indicate the potential demand for mobile phone products and services.
Assess the number and proximity of competing mobile phone stores in the area to identify potential opportunities or threats.

By carefully evaluating the available retail spaces and locations, you can make an informed decision that aligns with your business goals and maximizes your chances of success. This strategic approach to site selection will be a crucial component of your comprehensive mobile phone store business plan.

Determine the Required Inventory, Equipment, and Technology Needs

Establishing the right inventory, equipment, and technology for your mobile phone store is crucial to providing a seamless customer experience and ensuring operational efficiency. This step involves carefully analyzing the target market, anticipated sales, and industry best practices to determine the optimal mix of products and solutions to offer.

When determining the inventory requirements, research the most popular mobile phone models, accessories, and complementary products in your local market. Analyze sales data, industry trends, and customer preferences to create a well-rounded product selection that caters to the needs of your target audience. Aim to maintain a balanced inventory that ensures you have the right products in stock without tying up excessive capital .

Consider offering a mix of the latest flagship models, mid-range options, and budget-friendly devices to appeal to a diverse customer base.
Allocate a portion of your inventory to high-margin accessories such as phone cases, chargers, and screen protectors to boost profitability.
Leverage data from industry reports and your own market research to determine the optimal inventory levels and product assortment for your store.

In terms of equipment and technology, invest in high-quality point-of-sale (POS) systems, inventory management software, and customer relationship management (CRM) tools to streamline your operations and enhance the customer experience. These systems can help you track sales, manage inventory, and gain valuable insights into customer behavior and preferences.

Additionally, consider incorporating repair services and a dedicated repair station equipped with the necessary tools and equipment . This can differentiate your mobile phone store from the competition and provide an additional revenue stream by catering to the growing demand for on-site device repair and maintenance.

Research and invest in reliable POS systems that can integrate with your inventory management and CRM software for seamless data tracking and reporting.
Allocate a portion of your budget to high-quality tools, diagnostic equipment, and spare parts to ensure efficient and reliable repair services.
Explore partnerships with device manufacturers or authorized repair centers to obtain the necessary certifications and training for your repair technicians.

By carefully planning and investing in the right inventory, equipment, and technology, you can create a mobile phone store that offers a comprehensive, customer-centric experience and positions your business for long-term success . This strategic approach will help you meet the evolving needs of your target market and stay ahead of the competition.

Identify Potential Suppliers, Vendors, and Strategic Partnerships

Establishing a robust network of suppliers, vendors, and strategic partners is crucial for the success of your mobile phone store, PocketTech Haven . These relationships will not only ensure a reliable supply of products and services but also provide opportunities for cost savings, efficient operations, and potential revenue growth.

When identifying potential suppliers and vendors, consider the following factors:

Product quality and reliability: Ensure that the suppliers can consistently deliver high-quality mobile phones, accessories, and other products that meet your store's standards.
Competitive pricing and terms: Negotiate favorable pricing, payment terms, and delivery schedules to maximize your profit margins.
Inventory management and logistics: Evaluate the supplier's ability to maintain adequate inventory levels and provide timely, efficient delivery to your store.
Warranty and customer support: Look for suppliers that offer comprehensive warranty coverage and responsive customer support to assist your store and its customers.
Leverage industry directories, trade shows, and online marketplaces to identify a diverse range of potential suppliers and vendors for your mobile phone store.
Conduct thorough research and due diligence to ensure the financial stability and reliability of your chosen partners.
Consider establishing long-term, strategic partnerships with select suppliers and vendors to secure preferential treatment, exclusive product offerings, and potential volume discounts.

In addition to securing reliable suppliers and vendors, explore opportunities for strategic partnerships that can enhance your mobile phone store's capabilities and market reach. Potential partners may include:

Mobile network operators: Collaborate with local or regional mobile network providers to offer exclusive device plans, bundled services, and promotional opportunities for your customers.
Accessory manufacturers: Partner with leading accessory brands to showcase their products in your store and potentially negotiate exclusive distribution rights.
Device repair and servicing providers: Establish partnerships with reputable repair technicians or service centers to provide comprehensive repair and maintenance services for your customers.
Local businesses and community organizations: Forge partnerships with complementary businesses, educational institutions, or community groups to cross-promote offerings, host joint events, or tap into new customer segments.

By carefully selecting and nurturing your supplier, vendor, and strategic partner relationships, you can significantly enhance the PocketTech Haven mobile phone store's competitiveness, operational efficiency, and long-term profitability.

Outline the Key Operational Processes and Staffing Requirements

Establishing the key operational processes and staffing requirements is a critical step in developing a comprehensive business plan for a mobile phone store. This step ensures the smooth and efficient running of the business, from managing daily operations to providing exceptional customer service.

The first step in outlining the key operational processes is to identify the core services and products the mobile phone store will offer. This typically includes selling a range of mobile phones, accessories, and providing repair services. Developing standardized procedures for inventory management, sales, and customer service will help streamline operations and ensure consistency in the delivery of these services.

Next, it's essential to determine the staffing requirements necessary to support the identified operational processes. This may include hiring a store manager to oversee daily operations, sales associates to assist customers, and technicians to handle mobile phone repairs. Depending on the size and scope of the business, additional roles such as a marketing specialist or inventory coordinator may also be necessary.

Consider hiring a mix of experienced and entry-level staff to balance expertise and cost-effectiveness.
Develop comprehensive training programs to ensure all employees are knowledgeable about the products, services, and customer service protocols.
Establish clear job descriptions, performance metrics, and compensation structures to attract and retain top talent.

When determining the staffing requirements, it's essential to consider the expected customer traffic and sales volume. According to industry data, a successful mobile phone store typically employs 1 to 3 sales associates per 1,000 square feet of retail space , along with 1 to 2 technicians for every 500 monthly repair jobs . Additionally, the store manager should have at least 2 to 3 years of experience in the mobile phone retail industry .

Operational processes should also include detailed procedures for inventory management, order fulfillment, and customer service. This may involve implementing a point-of-sale (POS) system, developing supplier relationships, and training staff on effective customer engagement and problem-solving techniques.

Leverage technology, such as inventory management software, to streamline operational processes and improve efficiency.
Establish clear policies and procedures for handling customer inquiries, returns, and warranties to ensure a consistent and positive customer experience.
Regularly review and update operational processes to adapt to changing market conditions and customer needs.

By outlining the key operational processes and staffing requirements, entrepreneurs can create a solid foundation for the successful launch and ongoing management of their mobile phone store. This step, combined with the other considerations outlined in the business plan, will help ensure the long-term viability and growth of the business.

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