How to start a phone business| 15 best tips to consider when planning to start a phone business successfully

Billion cell phones are being shipped and sold every day. The fact that everyone, even children now has a phone is threatening to we the adult and the emerging demand for phone and their accessories have caused an uptrend in phone price, laptops, and other phone accessories chart in the last 6 years.

Seeing this uptrend, how to start a phone business has been a prevailing question on the web and lots of answers seen has only succeeded to solve how to start a phone business not how to start a phone business.

Therefore, in this article, you will learn how to start a phone business here in Nigeria and in other countries you may think of successfully

According to cc insight, he said that about 13% growth be achieved in 2022, as the economy recovers. Therefore, to start a phone business now will sore in situ and requires patience. It, not a get-rich-quick scheme.

to start a successful phone selling business, you have to balance the demand curve

I know you’ll say “hey, the market is saturated already and things are now doubling in price!”.

While the need for phone grows higher and higher, the price will keep increasing. Remember the demand and supply curve.

The higher the demand, the lower the supply and the price goes up. Don’t be paranoid as this doesn’t stop the need for phone and money flowing. No, it doesn’t!

the chart below clearly shows the prediction for year’s to come and it looks promising to start phone selling business now while preparing for the outbreak.

Phone chart from ccinsight

The year 2020 had a drastic hit on the supply curve. Seeing in the chart, the shipment rate was about 1.57b units of the phone is shipped. Such a huge difference in 2019 gross sell. In 2022, the demand and supply of phones will go high as China will recover from the covid hit. And you may be wondering whether or not you be able to successfully start a phone business.

Which phones can i buy and sell?

Phone brands are numerous and I will just give an insight which are Infinix, Nokia, techno, Apple, Itel, Gionee etc they are all smartphones

You can sell phones(smart phones, button phones, tablets) such as Andriod, iPhones and windows in two ways.

  1. Brand new phones: you buy directly from the company and sell (Recommended)
  2. London used phones: While this is not a perfect choice, you can make lots of money from selling used phones than brand new ones.

Choosing to sell brand new Andriod or IPhones could save you from police harassment and customers’ anger since you have warranty certificates attached. Selling London used phones is a bit of a heck and very challenging since you buy at your own risk to sell.

I will put a note for my buyers to buy at their own risk!”.

While this is the case, not all London used phones will go at buyers’ own risk. Trust me! You will run tooth and nail to solve issues at some point.

Is phone business profitable?

Phone selling business profitability is measured by the kinds of phones you are dealing with majorly(this will not be covered in the article. If you want to know the kinds of phones you should be selling in your phone shop, comment and we will give you a list of phones you should consider).

If you do it wrongly, you will lose money but if you do it right you will pop the champagne, regardless. It is not like the laundry business or poultry business which I covered earlier in the previous posts.

Without wasting much time, let’s get started.

How to start a phone business

The list below carries the steps on how to start a phone business. Do not miss a thing by skipping steps. Let’s go!!

Tip #1: Think and plan to start a phone business.

You should know the Omegapayz policy by now that every journey begins with thinking before a step. So thinking has always been our number one step to starting a successful business.

In the course of thinking, you will get to understand the business a little. Go ahead and make plans to start the business if it resonates with your person. Keep surfing the web, asking questions(you can ask us if you don’t mind ), do research, know the pros and the cons.

If you know 70% of the cons in the phone business, figure out ways to solve them, only then you are ready to successfully start a phone business.

I need to know the benefits first before starting!! You might say,

Knowing 30% of the benefits will only interest you to jump in blindly and you will run away really quick when you don’t see them play out. The interesting part is when you are coming in because you see the bad problems other dealers are facing. When you are prepared, you’ll be ahead of the game smashing off and solving problems like Rubik’s cubes.

so think first and plan to start your business.

Tip #2: Have a deep study of the market

This is different from planning to start a business. Feasibility study in business entails going an extra mile just to know about a business. The amount of purchase, number of dealers, where to get them, how to trade them, etc.

A few lists include;

  1. Get to know what phone brand moves the market.
  2. Know how much each phone is sold for
  3. Know how long a phone can last in your store
  4. Know the demand rate in different areas
  5. Know the expenses of running a phone shop
  6. Know the season for phones
  7. Latest or old, which one people buy most?

The list goes on and on. Making some questionnaires for your feasibility study makes work easier and faster.

Give this questionnaire to phone dealers in different locations. Beckon on them to fill it out for you or better still, ask them verbally and get the responses down.

Some of the dealers will give you true and candid information some will want to fool you so you have to gather information from different sources.

I have an article on how to start business successfully from your home. you can check it out

Tip #3: Select a Perfect location for your phone business

Location always matters in a business. Your location will either increase sales or expenses. It is always a crucial task but a must-do

Over here in Nigeria, selling phones in Lagos is better in that it is the heart of the country. Buy orders come from different part of the country to Lagos because they have made a name as the cheapest phone dealers in the country.

Statista confirms that the number of phone users in African countries will reach 140 million by 2025.

statista shows how to start a successful phone selling business in 2025

The information above tells us that not only Lagos sells or uses phones. Back to your business, when looking for locations to sit your business,

  1. Find shops near schools, companies, and even centres. Schools in this case are college not high school. This is where you have your potential buyers
  2. Get a space in the computer villa around you. This is where phones, laptops, accessories, and other things are sold and people know this place to sell cheap gadgets.
  3. Attach yourself a phone repairer. The secret here is that as the phone is being repaired daily, your shop is getting noticed by repair customers.
  4. An open centre is also good in that more people pass there
  5. Locate your phone shop around the bank area. Where am staying, banks have an area where they mostly dominate? Setting your phone shop in such an area will give you an edge as all the bankers, creditors and ATM users will patrons you one day.

Tip #4: Get your capital ready

Having figured out where exactly you want to locate your phone shop, your capital should be ready to rent the place so you can start setting up for business.

But I don’t enough money for capital!

I understand the fact that when ideas come, money goes and when there is no idea at all, that when money will be hovering around you.

Gone are those days you only get help from family members. Lots of financial institution have proven to be of help to this kind of situation.

You can get a loan from a bank: sadly, there are certain benefits you’ll have to pay back. If you are collecting N100,000 as a loan, you may end up paying N150,000 in the long run.

What if i tell you that you can get an interest free loan?..

I came across some of the platforms that offers loans and i will try to list some of them really quick

>>GROFIN

Grofin can help you to start a phone business

GroFin is an online platform that provides Small and Medium Enterprises (SME) business loans across Africa and part of the Middle East. If you are trying to expand your business or starting a new, then GroFin is there to help you out

With GroFin, different businesses and startups all around africa can access business loans between US$100,000 and US$1.5 million. If you think your business meets the requirements, then you can submit your online application here or visit their page online.

>>QUICKCHECK

Quickcheck can help to start phone business

QuickCheck also offers loans to businessmen. It is a modern lending platform for individuals and small businesses. QuickCheck enable users to uses mobile technology to access their loan offers

According to the platform, new and returning users can get quick loans of up to 30,000 Naira without any collateral. The bad part of it is that repayments are only 15 or 30 days.

>>Paylater

carbon loan

Paylater(carbon) is a Nigerian online lending platform that provides short-term loans to individuals and small businesses in Nigeria to help cover unexpected expenses or urgent cash needs. Don’t be confused when you see carbon home screen because paylater is an extended platform for SME loans.

You can access up to 500,000 Naira loans on this platform fairly with no collateral. Ensure that you use the correct details to register and once your application is approved, funds are typically received within 1 – 3 business days(i got mine in less than 1 hour). Making repayments early can grant you access to getting higher loan.

>>SMEDAN

Small and Medium Enterprises Development Agency of Nigeria(SMEDAN) is a nigerian government-backed initiative to offers quick and easy business loans to her citizens SME’s businesses in need of startups or growth financing.

The core mission of the organization is to promote entrepreneurship among Nigerians and also provide capital for people like you and me to start a business.

Aside from funding and startup capital, SMEDAN also provides business owners with training and support to help them run their businesses successfully. If you would like to apply, click here to access their online application portal.

Tip #5: Have a business plan

A business plan is an outline of the core nature and scope of your business. If you are thinking of how to start writing your business plan, worry not! smartsheet offers a variety of the top, professionally designed startup business plan templates, all of which are free to download in PDF, Word, and Excel formats.

look at this image below

business plan templet on how to start a successful phone selling business

I personally love smart sheet because they are reliable and affordable. They handle most of my business plan work and I recommend them.

Looking at the image, the basic items in your business plan include?

  1. Title page
  2. Company overview
  3. Products and services offerings
  4. competitive market analysis
  5. sales and marketing plan
  6. ownership structure and management plan
  7. financial plan.

the list goes on and on. Would you love us to write on how to write a business plan? hit us up in the comment box and we will give you a step by step guide.

Tip #6: Register your phone business with the corporate affairs commission

Any business that is not registered with the corporate affairs commission(CAC) in Nigeria does not exist. You have lots of benefits in registering your business name. You can go ahead and register as a company if you are growing bigger.

You can check the corporate affairs commission portals for details on how to register a business name. Or you can locate any of their offices near you and they will help you out.

If you want us to guide you, comment and we will give you a step y step guide, or we can help you in the whole process.

Tip#7: set up your phone shop

You are ready with your business documents and have rented a shop, Booyah! you are ready for business. Remember you have to prepare your signpost to help locate your phone shop. Make it simple.

Clean the environment and mount your signpost or flex.

Prepare the interior for proper storage of your phones. Phones are semi-fragile items and must be handled carefully. You could damage the screen, touchpads, casing and buttons in just a fall

Glass case storage(showcase) is suitable for detached phones and phone stand. Get them ready

Get newest promo flex for different phone brands, very important but people do not know this.

Prepare your invoice and packaging bags. Now get ready and learn how to start a phone business successfully from tip number 8

Tip #8: Stock your products with different phones and brands

It’s time to sock your phones for sale. It is always a crucial decision to make as to which brand should I start with first. Your business model should have had a guide for you to know but if it doesn’t, you need to go back to your questionnaires and figure which products are trending. Never go for outdated products because it will sit a year in year out in your showcase and you will be expending for it also.

Also consider which type of phones you are buying. Is it brand new phones or fairly used ones?

Know where o get these phones at a cheaper rate.

You can order your phones in bulk online on platforms like Alibaba, swappa, Amazon, eBay, Marketplace.PhoneCheck.com right from your home. It saves the cost f transportation but I will advise that you go select your phones yourself to avoid drama.

I personally love buying items in bulk from hktdc.com sourcing. they sell quality but cheap products. Although you might not understand their site as it is written in chinese characters. But trust me if you ask me how to start a phone business, i will first recommend them

Tip #9: Add accessories to it

If you have never taught of it, Jumia.com, one of the biggest eCommerce company in Africa had a tremendous increase in ROI when they added phone accessories to their category.

One can use a cell phone for 3 years without changing it because there are parts available to change once there is a fault the old one. What if you are not in this trend? it means you are selling once and people who sell accessories are making recurring exploit in your offer.

Mind you, to start a phone business might not be just phone parts and phones. casing, Bluetooth speakers, earbuds, earphones, chargers, stickers etc. are all accessories you can add to your market and reap benefits.

Tip #10: Insurance plays a big role in your business in case of damage

Insurance company takes part of the hit when you encounter lost as a result of damage or accident.

You must meet certain requirements before you can enjoy the insurance benefits in Nigeria. check out the table below

table for insurance

The national insurance commission(NAICOM) has a regulatory framework for registering for an insurance service to start a phone business and this includes 4 stages. The preliminary stage, Application stage, verification stage and registration/completion stage

Preliminary stage include

  1. Submission of letter of intent from the promoter
  2. provision of relevant documents
  3. Invitation letter to the intent for pre-qualification

Application stage include

  1. Submission of Completed Registration Application Form along with your CAC certificates and other certificates in the framework

Verification stage include

The screenshot from NAICOM should give you an overview as to what you should expect

Verification stage

Registration stage include

  • Pre-Registration Interview
  • Publication of Applicant to Members of Public.
  • Notification of Success or Otherwise After 21 Days of Publication.
  • Issuance of Letter of Success.
  • Evidence of Payment of Registration Fee
  • Issuance of Certificate Registration

Tip #11: Do proper branding and marketing

Youtube marketing is top-notch if you are asking how to start a phone business adverts. You can start a review channel about phones and which of them you’d recommend customers buy from you. This will give them that perception as regards your original offering and due diligence.

Whatsapp marketing is also another channel for brand advertisement. Your friends and status viewers will surely promote your brand if you give them a competitive price.

Referral bonuses is always very tricky and rewarding.

i know you will complain hey! that is an additional expenses i have given them a competitive price already!

If you are certain to start a phone business, this is a pitch am giving you now. Young guys love it when they are paid to do minor things. If you are going for video or radio broadcast, you will pay nothing less than $100 for few minutes and you might not still have up to ten buyers from that channel in one year. Take that $100, share it among customers who will bring a new person to buy from you. Offer each person $1 for every successful purchase.

Boom! you have made sales of 100 units of phones with just $100 in just one month and that’s the power of referrals and affiliate marketing. Be flexible

Tip #12: change your strategies from time to time

Never settle in one pattern of marketing as strategy fades over time. Think of different approaches you will take before thinking to start a phone business that will outrank the market competition

Top successful companies have applied thousands and thousands of strategies over time and this keeps them going. Amazon, eBay, even Elon musk the owner of tesla motors talk a lot about their changes in strategies. If they are already successful in their business and they keep on changing strategy, what will make you think your phone business will grow in such a strategy stagnation situ?

Tip #13: switch to wholesale

When you are stable with the retail market, needless for you to compete with others anymore. One of the best strategies in business is selling to retailers. You can choose to start your phone business as a whole seller, it is still good.

Selling phones and accessories in your area, bridge the gap between the retailers and manufacturers in that you will get the products in large amount, ship it to your location and distribute it to retailers even at a higher rate. They will always calculate the transportation cost if they go self to import.

You can get some verifications and apply for these phone manufacturing companies to confide in you. If this happens, you won’t even need to go for a purchase anymore and you will not have to pay before getting products.

Because you have lots of sales, they will always ship their products to you and you make them monthly returns. You will have to meet certain qualifications to benefit from this.

Tip #14: expand your outreach

Settling in one location when you want to start a phone business. Expand your location presence and get more customers. This expansion does not stop your online advertisement, it serves as a warehouse and a showroom to offline and distant customers.

When your WhatsApp adverts get to new york and your shop is located in Nigeria, how are you going to deal with that feeling of losing a customer who doesn’t want to pay for the shipment? Yes is tough but you have to think in this direction.

Set up your showroom in different locations where you have had studied about their large turn up for phone purchase. It could be 3, 5 and even ten showrooms

Tip #15: Remember to say thank you and never leave a deal open

I always say that the best way to get returning and loyal customers are to admit that customers are always right. Whatever they do, always end up telling them to thank you and you will see the result playing out. It could be a parcel, a gift card, a very nice packaging bag, a change for transport and mostly a “thank you” and a smile

Also, do not allow any customer that says I will come back. come back for what? Do not be fooled, 99% of them will not come back. Get to know why they are naive about buying at that spot. What can you do to make them buy now? say something like

Hey customer, I know you will not come back. What is that you want me to do so that you buy now? trust me I will do better! smiles”

Now watch them rewind and make purchase instantly.

Conclusion

I have covered a whole lot with regards to how to start a phone business in countries like Nigeria. It might sound much but trust me if I had wanted to list all the guides here, it will take an unending scroll. If there is anything you need more guide and clarity, ask in the comment section and I will respond ASAP

We are interested in helping people successfully start a phone business but are afraid! The question is “will it be you?”.

I have covered a list of questions in this article. They include the following but not limited to:

  • How did you start a business?
  • How much can you use to start a phone business?
  • Where can you start a successful phone selling business?
  • and so on……

What do you have to add to people who want to start a phone business? please comment below

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