A gadget business provides a wide variety of mechanical products including different parts and accessories to customers. A gadget store would include products like cell phones, cameras, tablets, etc.
If you plan to start a gadget store, it’s important to plan and prepare yourself with all the necessary information required well in advance, so that you won’t suffer any major losses like other big stores in the business.
Starting a gadget store is among the best business ventures you could get yourself involved in if you’re looking to expand well beyond your locality.
India is a great place to start a store like this. Due to the massive population coupled with infrastructure and technology development, owning a gadget store could be a good bet. Also, this is an era where smartphones, cameras, and tablets are something most people like to own, so this is another positive side of starting a business like this.
Where there are gadgets, there are always accessories. Since cell phones and tablets are flooded in the markets, they seem to be generic, therefore, people are looking for different accessories to make their pieces look unique and distinguished. So, there’s no better way than to go the accessory way. As gadgets are dominating the market today, so will gadget accessories as well.
we will give you all the necessary information on how to Start a Gadget Store Business in India.
Examine Other Gadget Store Businesses
Before you start your gadget store business, try and understand and examine the business setup of other existing businesses. This would include the strategies used for customer satisfaction, maintaining supplier relationships, and also the average price marked up that’s charged on goods. This information will help you set your pricing and store policies competitively.
Another way is to compare the successful gadget stores that have been and the ones that have failed so that you do not repeat the same mistakes of the stores that have failed.
Raise Funds
A gadget store business requires a good capital investment, so raising the necessary funds should be a top priority in the planning stages. If you’re looking to open up a brick and mortar store, you’ll need money for various things like store lease, fixtures, storage space, inventory, advertisements, and employee salary.
If you’re looking for an online business venture, then you would need funds for website creation and maintenance. You can begin by raising funds by getting in touch with private investment lenders and firms. For this, you would need to show your business plan to the lenders, fill out applications, and also prove your creditworthiness as this is the necessary process for getting funds.
Also Read: 15 Profitable Business Ideas under 10 Lakhs Rupees
Find Out the Requirements of Gadget Suppliers
Before you get down to leasing a space or even spend any money on your business, you need to look at the different terms and conditions of the different gadget distributors in the market.
You would need this for stocking up on display models, phones, accessories, and other products like mobile SIM cards, mobile repair services, and recharge cards.
Get in touch with different well-known manufacturers of gadget products to find out about all the requirements to do business with them. These requirements would include a business license, a minimum order amount, and also references from other business owners as well. There is a limit of stores that certain manufacturers would contract with directly, so find out about that as well.
Also, make sure the products you get are not counterfeit ones. Nowadays, people are looking for original products, especially when it comes to electronic gadgets. In order to succeed in such a gadget business, you need to sell your products at a price that’s equivalent to the ones that are sold on popular online stores.
Business Setup cost
In this internet age, you could setup a small gadget store with products like headphones, speakers, gaming gadgets, fitness trackers, cameras, phones, etc. The gadget store business startup cost would be a minimum of Rs. 5 to 10 lakhs for a small store.
So, if you’re looking to open a much bigger store with a wide range of products, then the investment would be much more. The cost would also depend on if you’re going in for a rented space or purchasing a store. Location of the store plays a very important role when it comes to cost as well. So, if your location is in a well-known area, then the cost would increase.
Also Read: 15 Profitable and Super-Easy Retail Business Start-up Ideas
Location
The second important step in your gadget store business plan is choosing the right location. You need to select the best space to setup your business. Choose a nice place that’s probably near the road or in a good locality where there will be a good footfall. Remember, business is all about getting the right people, so setting up your store in a busy area will give you a better advantage over others.
However, keep in mind when selecting the right shop for your business, ensure that the monthly rent of your shop doesn’t exceed 5% of the capital. This is only if you’re on a limited budget. If budget is not an issue for you, then go on and choose a place that’s secure and extremely busy as this would get you enough customers daily.
Store Setup
Source Image: CSP
For a small gadget store, you would need a space of about 150 square feet or 10×15 square feet. Your store should be well-equipped with lighting, air-conditioning, cameras, drawers, cupboards, and cabinets to display your products.
It’s a good idea to have a nice counter of about 8X3.5 feet with glasses placed in the front and on the top, where your products can be placed well, so people can view the products you’re selling.
Licenses and Registrations
The next step after you choose the right location is to get your gadget store business license in place. A small mobile store that has a staff of about one or two people typically makes about Rs. 10 lakhs on sales in a year.
Therefore, it’s better to register your store as a limited liability partnership (LLP). This is in case you wish to setup a bigger store in places like the malls or online through e-commerce portals like Snapdeal, Amazon, or Flipkart. So, it’s advisable to incorporate a company. In addition to this, you would need to get the GST registration done as well.
Also Read: Points to Ponder Before Starting Your Business as an Online Seller
Employees for Your Store
For your store to do well, getting the right staff on board is very important for your business. You would need some very efficient sales staff who are well-versed with the functioning of different gadgets and products. Employing people who love gadgets would be an added advantage for your store as this would create an impression that the people working at your store are committed to their job.
The number of employees you would like to hire depends on the size of your store. You could also employ a manager to handle things for you as well, so you’re not pressurized with things and your store can function in a well-organized way. If you have a repair section in your store, then employing a person to take care of repairs would be a requirement too.
Also Read: ‘The’ Gadget For a Fitter Life
Marketing Your Business
There are many easy ways to market your business. You could advertise your store in magazines and newspapers. If you want to get local attention, then a distribution of pamphlets would do good, including small billboards around. Starting a website is another great way to get the attention you need for your store.
Social media platforms will also do you well since this will get you a wider range of customers from all over. Use your social media accounts to post about new products, discounts, offers, and price rates to gain the attention of your customers. You could use the free gift options to entice people to buy your items. Getting your existing customers to share and forward your posts will help build awareness of your brand.
You need determination, strategies, and very good customer relationships in order to succeed. A business like this will grow through referrals. Hence, the way you treat your very first few customers will speak for how your business grows.
With the increasing demand of different gadgets today, a store like this with a wide range of products on retail and a well-experienced sales staff will get you the right spot in the market as customers coming to your store will always appreciate your service.
Once your business grows, you could also take your business to an e-commerce store portal to increase profits and offer convenience to customers. Other services like gifting options or free home delivery will further add to your brand. Use these few gadget store business ideas to help you build your store easily and successfully.
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