How To Start A Electronics Shop In India?
1. Electronics Business Plan
The electronics industry has taken a stride over the market with the huge demand for electronics goods. The more technology-driven the world is becoming, the greater the rise of these machines. People heavily rely on electronic goods for every other activity they do in general. Be it preparing the early morning breakfast or switching on the AC to get a peaceful sleep at night; there is no denial.
In a busy lifestyle, everyone finds it much easier to get assistance from electronic gadgets. It simplifies the work and instantly delivers the output. We see that there is a good reason why the electronics industry will escalate shortly as well. Despite having a brighter side, startups might find it harder to compete with bigwigs in terms of price or catalog.
This sophisticated industry can be volatile for startups when they lack a solid blueprint to compete with established players. Setting up an electronic franchise store can be a safer option. It allows the owners to get a ready-made business template along with the trademark of the business. With a good strategy, there are chances to excel and run your electronics store.
2. Electronics Business Ideas
Steps To Start An Electronics Store
Before starting to venture into the market regarding establishing an electronic store, there must be a plan. A roadmap for your electronic business will cover every idea of how to set the store.
The whole process might seem overwhelming, but business plan software can be of great use. You can systematically devise the accuracy and consistency of your plan that in turn, will improve the value of the electronic store.
A great business plan software will develop your electronic business from throwaway requirements to internal strategic resources. The electronics industry is rising, and this has been established in a survey report. It states that the Global Consumer Electronics Manufacturing industry has increased by 1.9% in the last five years, including a 3.8% increase in 2019 alone.
1- Investigate The Competitors
It is good to know about the existing competition in your locality even before starting your franchise store. You can track all your competitors by going through the details on Google. This gives a fair idea of the electronics stores that are already operating in your area.
Create a list of all the stores and do in-depth research about the pricing, products, and marketing strategies. This will reveal the strength of competitors, and accordingly, the pricing and promotional ideas can be shaped.
New models and trends have to be explored and stocked in the store even before the competitors start selling them. When you are aware of the existing competition, you can bring uniqueness and originality that sets your store apart from others.
2- Location Of The Store
The location of any store plays a prime role in understanding consumer behavior. Any franchise retail store tends to work best in an area that is flocking with customers having a high demand for the product. If the location of a store has proper accessibility, it improves the survival chances of the business.
When you find a perfect location to inaugurate your store, the franchise companies find it more favorable to tie up. This gives maximum visibility to the electronic store that will help to flourish the business over the years.
3- Set Up An Office Space
A well-designed office space creates an outlook for your business that helps to attract customers to your store. The greatest plus side of working with a franchise is that they make their unique interior theme. This gives the customers a plush experience of buying electronic goods. It mainly creates psychological satisfaction with the display of products in appealing interiors and infrastructure.
With adequate square footage, the customers get to feel the real features of the product. This gives a message that a variety of goods and stocks are available at the store.
4- Research About Franchise Companies
Conduct your initial study about different franchise electronic companies and understand how they operate. With this first-hand information, you can determine which franchise fits your goals, budget, and personal interests.
Also, evaluate every parameter of these franchises and check whether you qualify for their requirements. Once it is done, you can schedule an appointment to meet with the franchise. In this meeting, discuss every aspect and determine the right franchise for your electronics store.
5- Raise Capital
Any startup business relies heavily on capital to begin their venture. A survey claims that 57% of small ventures depend upon their savings to start. The electronics store is no exception as it requires a decent capital investment to display all the latest types of electronic gadgets.
Raising funds in the initial stages is the primary concern as it cannot be a bare brick-and-mortar store. It needs to fund a variety of things like store inventory, store fixtures, lease amount, employee wages, and advertisement.
6- Register Your Business
There should be a registration of the electronic store as it is a legal document for any business to operate. It gives a lawful existence to the company and also registers the name in that particular industry.
A government will only identify your business as valid if it gets registered through the official agencies properly. This allows you to manage your electronic store smoothly and also simplifies the process of taxation. Once you are registering your business, take help from your franchise brand that will help you further to get all the legal work done quickly.
3. Hiring Employees In Electronic Showroom
Hiring the right number of employees for your store will avoid chaos and help build trust amongst the people. Keeping in mind the supply and demand along with the size of your store, a hiring panel could be finalized. This will also create numerous job opportunities and positions such as
Floor Manager
Cashiers
Supervisors
Stock Manager
Promotional Head
Sales Representatives
Other departmental duties include-
Maintenance
Finance
Stock
Marketing
4. Profit Margin In Electronics Shop In India
These steps will help you in starting an electronics store business –a profitable business plan:
Becoming a premium seller by selling luxury electronic brands
Generating partnerships with corporate firms
A solid competitive business plan
Official Business Registration
Fulfilling online application formalities
Licenses/Permits
Business Insurance
Store Location
5. Business Insurance For Electronics Business
Accidents happen, and insurance covers it. This also ensures you incur all the losses during the incident. Many companies allow insurance policies that are beneficial for both- the insurer and the insured. Electronics store insurance is an all-together separate wing that has a variety of types. Some common insurance policies offered for an electronics store are-
Electronics store Crime Insurance
Electronics store Worker’s compensation
Electronics store Cyber liability insurance
Electronics store business property insurance
Electronics store commercial auto insurance
Electronics store general liability insurance
All these insurances differ in coverage of loss. You can obtain them from private companies or government agencies. Insuring your business provides value and authenticity to your company.
6. Business License & Application For Electronic Showroom
In general, for any retail-based business, you would have to opt for a state license. A license provides you with legal authorization on every product you sell, exceptions being-
If you've less than 30 electronics for display or sale, a license is not needed.
If your store's display space is less than 20% of the total display space, a license won't be required.
Mandatory requirements for the application include-
Sales Tax Identification Number
License Number
For only electronics services- Electronic and Home Appliance Service Dealer License (2 years validity)
For selling second-hand electronics- Second Hand Dealer General License (2 years validity)
7. Online Application Process For Electronics Business
These are the 3 things needed for making it to the final stage of getting an EIN (Employer Identification Number)-
Submission
Eligibility check
Online Application
Key Takeaways
A startup with an electronic store might seem impossible in an industry where the competition is already very intense. An electronic franchise store can be a most sought-after plan as it already gives a benefit to taking an edge over the competition.
Studies have already revealed that the success rate of franchise businesses is 95% compared to the success rate of startups, which is 15%. The initial rate of nominal royalties and franchise fee might seem to be higher, but its long-term growth and success outweigh everything.
