Your Own Power Tool Repair Shop: What Is Essential For a Successful Start?
Do you want to start a power tool repair business? That’s a great idea! this kind of service is always in high demand, which means that you will not suffer from a lack of customers. But to make your dream a reality, you need to be ready to face challenges, solve plenty of complex and simple tasks, and analyze a lot of information. Besides professional skills and knowledge, you will need business management and marketing skills. How not to get lost in all this and not give up your idea? In this article, you’ll find some useful information that will help you in your electric tools repair business development.
A Good Business Plan Is of Utmost Importance
No successful business comes without a detailed business plan prepared in advance. A business plan will be your guide for launching and managing your company. It will help you to review and assess the resources required to start and grow your business, anticipate possible risks and pitfalls, and calculate your desired profit and opportunities to achieve it.
So, as a business owner, when creating a business plan, you should consider the following points and answer the related questions:
Here it is recommended to answer the following questions for yourself:
- How do you plan to finance your business start-up? Do you have funds in hand, or will you need to loan money from the bank?
- What monthly profit do you plan to make? How much work will you need to perform to get this profit?
- How much will your services cost? Do you plan to increase the cost of your services over time? Will you have a discount system?
- How much a month you will spend on rent, taxes, and salaries to employees?
Think about your marketing strategy and consider the following questions:
- What channels do you plan to use to promote your business?
- How much are you willing to spend on advertising?
If you don’t have good business promotion skills, you can hire a marketer to develop a marketing plan.
Research who provides similar services in your area:
- How big these companies are?
- What services do they provide?
- How do they promote their company?
- In what way can your company distinguish itself from the competitor’s companies?
Services you will provide
In connection with this point, it is recommended to analyze your target audience first. you will understand the most common trouble of people in your area. So, you can understand how you can be useful to your potential customers. you can create a list of services your company will provide and then hire employees with the appropriate knowledge and buy needed equipment.
At this stage remember also about the warranty for your services:
- Will you provide warranty or non-warranty repairs?
- What kind of warranty can you suggest to your customers?
Once you have decided on a list of services, you can specify what tools you will work with. The next step is to purchase the necessary equipment. At the moment the market has many manufacturers of power tools in different price categories. The most popular of them are Fein, Bosch, DEWALT, Hitachi, Makita, Milwaukee, Honda, MultiQuip, Allen, Wyco, North Rock, Husqvarna, Wacker, Soffcut, Stihl and Superior.
When creating your business plan for power tools repair shop, think about where you’ll work. Answer the following questions:
- Where do you want to rent an office?
- Do you need big working space?
- Do you need storage space?
It’s important to address the location issue as early as the planning stage since the cost of renting will affect your monthly expenses. You can also find out what competitor companies already exist in the area where you plan to open your office.
When writing a business plan, remember that a good plan is half the battle. The more details you think through at the beginning, the fewer mistakes you commit in the future.
The Right Management Software Is the Secret of a Successful Business
Choosing the right business management software for a power tools repair shop is just as important as hiring highly qualified professionals and acquiring the necessary equipment.
With good business management software, you can do the following:
- Systematize information about your customers. You can create profiles for each customer which will include issue descriptions and descriptions of the conducted work and work that should be done.
- Optimize the work of your team. In one place you will be able to collect information about the working schedule of your employees, their vacations, sick leaves, and payroll.
- Manage inventory turnover. You can always use a few minutes to find out what tools and spare parts you have in stock, what ones you need to buy, and what ones it is already time to replace. This will allow you to have a clear picture of the costs needed for inventory.
- Organize effective communication with your employees or customers. Automated notifications, alerting, SMS, etc. will help you do this.
- Obtain all the reports you need. Detailed reports will help you to see the weak points of your business and quickly make decisions on eliminating any problems.
- Secure your business. Thanks to the software you will be able to protect all information about your customers and employees, as well as your financial information.
The right software for the management of a power tools repair shop will help you automate many processes, and therefore optimize business management and save your time and money.
Consider legal points
Well, you have planned all the aspects of your business, gathered a professional team, choose a location, and obtained all the tools and software needed for your work. All that’s left is the formal paperwork. At this stage, you should consider several points at once and take the following steps:
- Get all the necessary licenses and certificates, which give you the right to carry out the repair of power tools.
- Register your business legally. You will also need to register the federal and state taxes that you will pay in connection with your business activities.
- Set up your company’s accounting procedures. Here you should pay attention to such points as keeping track of expenses and income, calculating taxes, as well as opening a special bank account for the financial needs of your company. By the way, it is also worth mentioning here that some of the applications for power tool repair shops mentioned earlier in this article will allow you to automate your bookkeeping.
Starting your own business is never an easy task. But hopefully, this article will really be a good guide for you. With a detailed plan of action, you’ll be able to build up your resolve and get from words to deeds.