Start up mobile repairs

mcgill1992

I'm currently in the process of setting up an online mobile phone repair and phone sales on Facebook. I'm looking for any information on best way of doing this, would I need to get a VAT number or any other legalities . Would I be entitled to any start up funds etc.. First time start up, so any feedback would be greatly appreciated !!!

ironclaw

Doubtful as its the most heavily saturated industry in Ireland at the moment.

You'll need to register as a sole trader, I'd recommend being VAT registered as its not an extra nuisance all told, keep all your receipts and get your books in order at all times. Also given your dealing with the public, I'd strongly consider decent insurance cover.

Can I ask, have you strongly researched the market and are you suitably quaified? Its one thing to repair your own phone or a family friends ,its quite another to take on a members of the public. Also, do you have a decent parts supplier? John Public doesn't know the difference between a genuine Apple Screen and an OEM one from China, they should both be the same to him, but they are not in reality.

dbran

Hi

As most of your sales would probably be to vat unregistered persons I would not rush into registering for VAT as it could mean that you will have to increase your price by 23% making you uncompetitive compared to the other providers of the service. Threshold for registering for VAT is €37500 per annum turnover.

As Ironclaw said it is a very competitive area and I would suspect that the profit margin is relatively low.

dbran

syntheticjunk

It depends how good you are repairing smartphones and where you going to start your operations.
I know one guy in small town running this kind of business. His turnover in last 5 months was over 80K. Big chunk of profit comes from buying and selling phones. I'm talking about bricks and mortar business. Online repairs - works more as a marketing.

L.Jenkins

When it comes to repairs, such businesses here in Athlone are a dime a dozen and nearly everyone knows someone who can fix a phone or laptop. If you're going online, Facebook have marketing tools, but it will cost you. If you're on JB or JA, you "might" be entitled to BTEA or back to enterprise allowance.

The question with respect to repairs is, are people willing to post their equipment to you and will you provide free postage? Or will you buy phones from someone, offer free postage and then resell it?

ironclaw

Itzy wrote: »

Or will you buy phones from someone, offer free postage and then resell it?

This part seems very dodgy to me, not directed at your Itzy. How can you be sure a phone is genuine and above board? Next to impossible.

L.Jenkins

ironclaw wrote: »

This part seems very dodgy to me, not directed at your Itzy. How can you be sure a phone is genuine and above board? Next to impossible.

I offered is as a suggestion, but I'm not sure how any company who offers cash for phones would mitigate against potential acts of fraud or being accused of fraud themselves when operating online.