Our over-reliance on appliances makes it hard to imagine how our lives can be without the appliances. Today, we rely heavily on our appliances to do any job—from cooking to washing clothes, dishes and even heating our homes. And, when any of these appliances break down, we must look for an appliance repair technician to repair them—and this is where appliance repair businesses come in.
Recent statistics show that the appliance repair industry has a very promising future. Projections show that the industry will reach $22.7 billion by 2025, with a cumulative annual growth of 7.8%. This indicates that now is the perfect time to join the appliance repair industry. So, are you thinking of an appliance repair startup? This article is for you. Read on to know how you can start an appliance repair business.
A guide to starting an appliance repair business
Create a business plan
A successful appliance repair business starts with a good plan. Without an operational plan, you will not manage your appliance repair startup. To write one:
- List down all the goals you want to achieve within a certain time frame.
- Next, make an inventory of capital equipment and tools you’ll need for this business venture—the more advanced your equipment is, the better; however, make sure these are within your budget capabilities.
- Lastly, prepare a detailed schedule of how you’ll reach out to customers and market your services, then develop strategies to promote yourself as an expert in this industry.
To save money while building your appliance repair business credibility (and prove that there’s no “free lunch,” here’s what it’ll cost you: $4,800 for startup expenses and $25,000 as capital to run your business). You can try joining appliance repair programs offered by local colleges and universities. Once you do all these, you’re ready to move ahead.
Create a business entity
If you’re serious about making a full-time business out of this, then setting up an LLC (limited liability company) may be your best option. Here is how it works:
- You and the other partners will become general partners and have unlimited liability for your business’s debt; or
- You and your partner will be limited partners with limited liability for the debts.
After you know what type of business entity to set up, you can go ahead with filing all necessary documents as required by law, depending on where you live. These documents include Articles of Organization or Incorporation with applicable state agencies and certificates of assumed name (if doing business under a fictitious trade name). Ensure that all legal filings and documentation are up-to-date and that you pay all related fees on time.
Get the required permits and licenses
Depending on your location, getting the required permits and licenses may not be an easy task. However, you must look into this matter to avoid business disruptions in the future. You can start by looking up all the business registration requirements in your area—then get going. Here are some examples of what you might need: a business license from your city/county clerk’s office; a resale permit from your state board of equalization; a seller’s permit from the tax department in your state; and a contractor’s license from local authorities to conduct appliance repair services at customer homes.
Develop a network of suppliers and partners
The technicians at Hartman’s Appliance Repair say that you must develop a good relationship with the suppliers and other partner companies if you want your business to succeed. You may need to source for parts from vendors, or be looking for partnerships with companies that offer additional services such as repairs/parts sales, or even buy spare appliances from them to refurbish (and sell at higher prices). You’ll also need strong networks if you want to hire technicians who will work for your startup—so make sure to build a good rapport with reputable technical schools.
Find your target market
You’ll need to reach out to the right demographic, so make good use of business research tools online to see where you can get the most customers. You may decide to focus on residential appliance repair or commercial appliances—or even do both; however, be sure to check which type has a higher demand in your area. Also, know that service quality is a key determinant of how many loyal customers you’ll gain and develop into repeat buyers through referrals. Another thing: take advantage of social media platforms to grow your customer base and promote your services/products and build credibility as an expert in this industry—but don’t forget to put down everything within a reasonable budget.
Identify the services you want to offer
Yes, it’s the services that you’ll offer that will determine whether or not your appliance repair startup gets customers. You may choose to specialize in one type of work only—so make sure to research what’s needed most in your area, then provide them with the best appliance repair service possible. Here are some ideas:
- All brands/models appliances repairs
- Appliances installation (i.e., dishwasher, refrigerator, gas stove, and oven)
- Appliance removal and haul away
- Appliance recycling services (using local recyclers)
Get your marketing strategy together
There’s so much more to running a successful appliance repair business than providing excellent services—you also need to know how to promote it! Here are some ways:
- Make sure that your current customers know about the new service you’re offering; or
- Work with local retailers who sell appliances to offer their clients discounts when they buy devices from them as well as purchase parts for repairs from you; or
- Partner with an appliance manufacturer who provides free labor for warranty repairs (in exchange for parts sales/service contracts); or
- Establish strategic alliances with other companies in the industry (i.e., parts suppliers, wholesalers, retailers).