How to Start Your Own Appliance Repair Company
If you are planning to set up your appliance company then follow these steps to start your own professional appliance repair service.
1. Jot down a business plan
Once you have decided that you want to start your own appliance repair business, the first step is to draft a business plan. When you apply for a business loan, the first thing your lender will ask you is your business plan. This will help them assess your credibility for paying back the loan.
2. Create your business entity
The business entity is the legal framework that defines how a company will legally function. You have options from four business entities to choose from:
- Sole proprietorship,
- A partnership,
- Limited Liability Company (LLC).
You can select from any of these entities after assessing the pros and cons of each and the liability costs.
3. Come up with a name for your company
This has to be the hardest step out of all.; choosing a business name. Select a company name that your customers can relate to and is not used elsewhere.
4. Choose a business location
Multiple successful appliance repair companies have started from a small warehouse or a garage where the repair expert offers a mobile pick-up facility and after fixing the appliance, drops back the product at the client’s home.
5. Obtain the necessary work permits and licensing
Prior to setting up your appliance repair company, you are required by the state to obtain a special electronics repair license.
And for repairing air conditioners, freezers, and refrigerators, you need to follow special regulations under the Environmental Protection Agency which will require you to obtain special certifications before starting the repair business.
6. Get the funding or the capital
It may all sound great on paper, an incredible business idea, a state-of-the-art business plan, and all profit expectations; however, to manifest this idea into reality, you require a hefty amount as funding or capital.
The cost required to establish an appliance repair company is not a lot, but getting funding from a credible source is difficult in this industry.
7. Register a business bank account
You should always separate your personal finances, running expenses, and business-related finances separate through separate bank accounts for each. This will help you track your monthly expenses, profits, and personal finances.
8. Come up with a marketing strategy
In the appliance repair industry, your clientele will be loyal to multiple returning customers, but you still need an effective marketing plan in place.
It is imperative that the repair industry applies multiple advertising and marketing strategies to maintain its clientele and a targeted profit margin.
You can market your services through email, text messaging, social media marketing, newspaper ads, and much more. Build a website of your company and apply SEO strategies to gain ranking online.
9. Apply for insurance
When you apply for business insurance, the cost will depend on your business location and the amount of equipment you own.
In order to get a fair idea of your insurance costs, get quotations from more than one company and then compare and contrast the offers. Check the deductibles, coverage, and premiums for each of the offers and then make a decision.
10. Hire your staff and employees
Even if you start your repair business as a single-person entity, eventually you would need to hire staff, helpers, and employees. In the appliance repair industry, hiring employees is expensive, and one has to purchase the replacement parts as well.
So, when you conduct interviews, keep a budget in mind that you can spare for salaries. You also need to offer worker insurance, health insurance, paid leaves, among other incentives.
11. Draft your company’s accounting system
For a long-term basis, a company needs to have a proper accounting system in place to keep a track of profits and expenditures.
It also helps you pay and keep a record of taxes so that you do not get into any sort of legal troubles related to taxation. The accounting system will help you monitor the cash flow of the company.
What should one keep in mind before beginning an appliance repair business?
The main thing you need to consider before starting your own appliance repair company is the competition in your area. See what other companies are working in your area and how well they are doing. Find out their strengths and weaknesses and then come up with your own.
Also, find out the feasibility of an appliance repair business in your town, will you get frequent customers? Are homeowners searching for appliance experts in their area?