Whether you’ve been repairing appliances all your life or want to start from scratch, an appliance repair business can be an appealing option.
The demand for high-quality appliance repair services is high. In 2021, the appliance repair market size exceeds $4.5 billion.
While the market is highly competitive, there is always room for top-notch services. That’s why starting a business is an excellent idea, especially if the market in your area isn’t oversaturated.
Pros and Cons of an Appliance Repair Business
These important pros and cons can help you make a decision about starting an appliance repair business.
· Flexibility – starting your own business means you can structure your work time any way you like.
· Connections – you can make excellent connections with clients that could take you to a new level of business ownership.
· High retention – once you prove yourself to the first clients, they are likely to stay with you for decades and recommend your business to others.
· Costs – you don’t need an office for your company so you can operate it from home. This type of business doesn’t require high startup costs.
· Predictable income – once you have regular clients, you can enjoy a predictable revenue stream.
· Growth opportunities – you have limitless opportunities for growth and expansion beyond your initial location.
· Quick results – as soon as you land your first client, you can start getting steady revenue and enjoy word-of-mouth marketing.
· Competition – appliance repair business can be highly competitive so you need to work hard to steal market share.
· Time commitment – you have to be ready to invest a substantial amount of time in running an appliance repair business, especially when you start hiring employees.
· Low margins – the gross margins of an appliance repair business are usually low.
Overall, if you are ready to invest time and money in the appliance repair business, you have a good chance of succeeding.
Let’s take a closer look at the first steps to take to start an appliance repair business from scratch.
1. Obtain Financing
If you are starting an appliance repair business from scratch, you need to invest money in equipment, transportation, salaries (if you aren’t a solopreneur), and much more. If you don’t have sufficient funds available, you may need to borrow money. Some of the loan options to consider are:
· Business credit cards
· Business loans
Try not to mix personal and business finances. This can lead to certain issues in case something goes wrong, and you face a lawsuit.
2. Get Transportation and Equipment
According to experts from Hartman’s Jacksonville appliance repair, for your appliance business, you are likely to need a truck or a van. You’d need it to transport equipment and travel to your clients’ homes. If you are a solopreneur, you may be able to settle for driving your own car for a while. However, with time, you would still need a company vehicle.
Since appliance repair experts deal with many different appliances, they have to carry numerous tools and some spare parts. Before you go to your first client, you need to have a basic collection of equipment and parts packed in your truck.
3. Work on Marketing
Marketing and advertising are integral to the success of your business. While word-of-mouth marketing is amazing, it needs a push. By implementing several simple marketing tactics, you can keep new clients coming.
· Create a website
· Invest in paid search ads
· Work with local businesses for cross-promotion
The more money you invest in high-quality marketing, the more likely you are to start bringing in money quickly.
4. Insurance and Licenses
To make sure your business operates according to the law, explore insurance and license requirements in your area.
Insurance is especially important when you have employees. However, even if you are working on your own, it can protect you in case something goes wrong during the repair process.
Starting an appliance repair business comes with numerous advantages and a couple of downsides. Whether you want to become a solopreneur or hire a team of technicians, you need to seek funding, create a solid marketing campaign, buy insurance, and get appropriate licenses.
Even if you don’t have experience with appliance repair, a smart approach to starting a business can help you achieve success quickly.