So now that you’re done with all the ideating, it’s time to get down to the more serious stuff. We’re talking funding, baby. The important Cell Phone Repair Shop – 101 concern of:
Securing Startup Capital
Now getting the cash might seem pretty straightforward. But you still want to plan adequate time to see things through. If you’re in a credit relationship, don’t count on always getting the funds the first time around.
Be prepared for delays and setbacks. They’re part of the game. Don’t let your bubble deflate.
Okay, now that you’ve got your helmet on, let’s get down to the nitty-gritty. 🏍
‘You Need Money to Do Good Things – Hon’
In keeping with the dictates of reality, you can’t whip something out of nothing.
But let’s be serious.
We’ve already discussed in Part I that you need between $20,000-$30,000 to launch a cell phone repair shop in the US.
If you’re like most people, your sources of raising startup capital would be five:
- Personal Acquaintances
- Donor Grants
Let’s dig into each.
Bootstrapping – Coughing Up the Personal Vault
The romantic ideal fetishized to no end in Hollywood fare. And in popular culture.
Bootstrapping sees the ambitious entrepreneur scrounging away on their personal finances. The goal here is to start a business without incurring any outside debt. Simplicity and minimalism are the start-all and end-all. And efficiency, of course – the domain of the no-time/resource-wasting passionate!
This no-strings-attached approach, when it works, is quite reflective. It shows in full the vision espoused by its founder(s); making it something worth imitating. A true ‘rags to riches’ story – at least in the case of some. Teachable to business college kids.
This arrangement can come with either full or shared liability.
With regard to ideal fit, the approach is more suited to individuals with hefty bank balances. The rich heir or branching business tycoon types. Even the monthly, 9-6, office toiler can sometimes take the cake. Provided the savings are in order.
When you don’t have enough personal green to finance your cell phone repair dream, ask out. Seek some $$ warmth from the family (and friends). For good and for worse, it’s not the same as asking for monetary support from distant strangers.
When you involve acquaintances, you’re engaged in the ‘partnership’ business model. This comes with shared liabilities and profits, as we explore in Part III.
Now before you embark on this type of financing quest, draft a formal agreement. This is your binding, go-to, legal document for any future controversy busting.
You know – for the times when one pesky friend or relation should seek more than their due.
Don’t get caught in the ‘Founder’s Dilemma‘ pitfall – a dream pooper like no other.
There are times when you have a novel, winning idea for a cell phone repair shop. One that is not only different but also practical. Worked out in detail – all ready for implementation. Plus it comes with a neat CSR (corporate social responsibility) side to it.
The plan is so good, in fact, that you feel it’s worth pitching to a bigshot grants organization.
Well, if your proposal checks all these boxes, then we’d urge you to go ahead.
Because the best thing about grants is that they – generally – tend to come with little strings attached. No repayments, spending the money only for arrangement communicated, and the like.
Your business blueprint might even qualify for a government grant. If you score one of these, you get to cash in on added credibility. The business-safety signals that come with a well-scrutinized public offering.
So with grants, there’s little that’s not to love! 🤗
Business loans, whether issued by banks or other group lenders, are restricting. They call for taking ‘voluntary liability’ with the bind of timed repayments. Consider your everyday home loan agreement.
At the same time, they become necessary when alternative financing isn’t available.
When applying for loans, you need to fulfill certain prerequisites:
1. A current, stable source of income
2. Mortgaging assets (to cover foreclosures)
3. Good credit history (for repeat lendees)
Certain loans can come with more stringent qualifiers.
Some organizations, serving a particular niche, also offer startup loans to field entrants. For cell phone repair, there are several companies in the US that provide this sort of funding. RepairDesk Capital is a good example – you may want to check if you meet the bill!
A new-age, ‘interest financing’ option, crowdfunding is your open pitch to the like-minded. It’s a call to invest in one of two ways.
The interested can either:
- Contribute funds and become part-owners (share equity)
- Go the philanthropy – channeling the world-changing, idealist, spirit 😇
To succeed at crowdfunding, you need to work on your idea outing. The pitch content has to be emotive and persuasive enough in the service of a public good.
For a cell phone repair shop, you need to tell how it would serve its immediate community. How does it differ – from the customer value standpoint – from the other outfits in the area.
Are you offering a technical service, say micro-soldering, that no ones’ quite adept in? Also, how is it a better buying option considering affordability? Is your commitment to addressed-deliveries the only icing here?
If you’re all set with these pointers, it’s time to go public. Sign up on a donor-frequented crowdfunding platform and publish. Should your proposal hit the contributor sweet spot, you should start seeing the $$ pour in.
So there you have it for Part II of this series.
Stay tuned for the next chapter for an inside look into the legalities of starting shop.
As with funding, this aspect of the cell phone repair business is the make-or-break spin. So you’re well advised to put your glasses on for a points jot. Be well prepared for dealing with the minute, fine-print reading and potential traveling.
Ending on a Note of Hope:
If you can climb the funding mountain and surpass the legalities trench, rejoice!
The next stages of opening shop and marketing shouldn’t prove too difficult.