Oct 12, 2020 7:17 AM ET
iCrowd Newswire – Oct 12, 2020
If you have an interest in fixing machines or finding the root cause of their issue, then you should try starting an appliance repair business. This can allow you to handle different types of appliances, showcase your creativity, as well as problem-solving skills. Besides, you will now have become your own boss.
What’s an appliance repair business?
An appliance repair business provides repair services for appliances, such as ovens, refrigerators, washing machines, garbage disposals, dryers, and freezers. Typically, these services are offered in the owner’s home, because it’s a challenge to transport these appliances. Owning an appliance repair business can help homeowners save a lot of money since they don’t have to buy a new appliance.
Things you’ll need to get started
- Transport –mostly, you’ll need a truck or van to move your equipment and tools. But, the trunk of your car can still work, as you can put your tools there.
- Marketing –you should also have a good website, business cards, and magnetic door signs for your truck, as well as other online materials to help in marketing your appliance repair business. Besides, you will need to create networking skills, as this will allow you to develop good relationships with your clients, warranty companies, as well as appliance vendors.
- Startup tools –next, you will need to acquire the relevant tools and dollies because you cannot repair appliances without these tools. Also, you should buy other basics like belts, thermostats, and fuses.
- Office space –having a dedicated office space will allow you to answer client calls and have meetings, as well as do the necessary paperwork. Moreover, you will need to set an area for doing major repairs, even though you can always do small repairs on site.
- Business license –lastly, you must be licensed by your local government to offer appliance repair services in your area.
Select your target market
Now, once you get these essentials, you’ll need to choose your target market. According to the technicians at Hartman’s Appliance Repair, Jacksonville, your target market for an appliance repair business will depend on your special area of interest. So, you can choose to focus on general appliance repair, specific appliance repair, like kitchen appliances, or select a particular brand like Panasonic, Samsung, LG, or GE. Besides, your target market will be homeowners, which have a disposable income to afford appliance repair.
Steps to follow when starting an appliance repair business
Write a business plan
Once you get your business idea, it should be supported by a business plan. A business plan is essential, as it can help you get the necessary financing from your bank, as well as ensuring that your business doesn’t have challenges when starting.
Choose your preferred business entity
Typically, a business entity refers to how your business should operate. Currently, there are four types of business entities, which include sole proprietorship, corporation, partnership, and limited liability company (LLC). Each of these entities has its benefits and drawbacks—and you should ensure that you review the entity that you like.
Select a business name
Once you choose your business entity, it’s time to choose a business name. When choosing the name, ensure that it’s easy for clients to remember, brandable, and available for use.
Choose your location/area of operation
As an appliance repair technician, you can choose to provide on-site repairs or pickup services. When choosing your location, ensure that you consider your option is cost-effective and convenient for your business.
Yes, your appliance repair business might not require extra employees when starting. However, your business might grow to some point where you will need staff to help you. Other than purchasing spare parts, labor costs come second for any appliance repair business. So, when hiring your employees, ensure that you have enough funding for their salaries, as well as any extra costs like insurance cover, as well as paid time off.
Search for financing
Just like any other business, your appliance repair business will need money to operate—even when you’ve not hired employees. Sourcing financing for your business can be a challenge for most startups, and this is where a good business plan can save you. In addition to your business plan, you also need to have a good credit score and also have the capacity to invest around 30% of your money towards your total start-up costs.
When running an appliance repair business, you will need to get several insurance policies to ensure that your business is fully covered. Kindly consult your insurance services provider to know which policies apply to your business.
Please note that the cost of your insurance policies will vary, depending on several factors like the value of your business, including equipment, as well as the location of your business.