How to Start an Appliance Repair Business
An appliance repair business would be ideal for someone who likes fixing machines. You will be working with different appliances and get a chance to put your skills to work. It is also fun to have a business and be your own boss.
So how do you do this? That’s what you will learn in this post.
Business Overview
An appliance repair business involves repairing appliances such as garbage disposals, dryers, washing machines, freezers, ovens and refrigerators. These appliances are not easy to transport so you will be offering the services at the client’s home. Repairmen usually have the tools for repairing these appliances. They travel with them in order to identify and fix the issue in one visit.
Industry Summary
The appliance repair industry has grown by 0.2% annually from 2014 to 2019. As of 2019, it was a $4.9 billion market. As the disposable income continues to increase, the market is expected to continue growing too.
Industry Trends
People are now abandoning traditional appliances and buying smart appliances. This trend is expected to continue. If you are thinking about getting into the repair business, you need to learn about this technology.
Repair businesses have to compete with manufacturers. Customers prefer to take advantage of the warranty instead of seeking third-party repair services.
The Target Market
Some repair businesses specialize in a specific brand or type of appliance such as kitchen appliances. Generally, you will be targeting consumers with broken appliances.
Required Expertise
You don’t need a degree but there are skills that you must have.
Appliance repair skills: you should know how to work with different appliances and repair them. It is important that you know how to establish what the problem is and fix it.
Problem-solving skills: you will face a lot of challenges, especially as technology advances. You should learn to be resourceful and overcome the issues you will come across.
Organization skills: there are a lot of parts to keep track of—more so when disassembling something—and invoices too.
Customer service skills: master interpersonal skills and good phone etiquette.
Scheduling skills: traveling from one home to another can be tricky and you need to always be on time.
Cost of Starting an Appliance Repair Business
The cost will depend on what business model you choose. If you will be traveling to homes, you will require an SUV or truck for your supplies and tools. A traditional store is nice too but it may not work with larger appliances.
You may need anywhere from $1000 to $5000.
Here are the common costs:
- A vehicle
- Repair parts inventory
- Repair equipment and tools
- Diagnostic tools
Steps to Starting Your Repair Business
- Create a detailed business plan.
- Form a business entity (partnership, sole proprietorship, etc.).
- Choose your location.
- Apply for the necessary permits and licenses. Check what is required in your state.
- Look for financing. (You can get a loan with a low interest rate if you have good credit).
- Start marketing the business.
- Obtain insurance.
- Hire employees.
