How to start an Electronics Business? | 8 Easy Steps

With the fast growth in technology, new business opportunities and innovations are rolling out steadily. Likewise, the electronics industry in India had an absolute increase in the past few years. Hence, more and more entrepreneurs are looking for how to start an electronics business?

 

There are few details to figure out at the initial stage of starting a steel business like:

~Understand your competitors

~Register your Business

~Acquire License and Permits

~Make a Business Plan

~Know your customers

~Plan your investments

~Find a location

~Buy the Stock

~Hire the team

 

8 Steps to start an electronic business in India

 

Step 1: Understand the Local Competitors

 

The first step of starting any business is to analyse it.

 

Therefore, visit the electronic stores near you and find out:

 

• What are they doing?
• How much stock do they have?
• What are their pricing strategies?
• Where are they located?
• How much staff do they have?
• What are their operating times?
• How much salaries they are paying?
• What are the rents they are paying?
• Which brands are available in the market?

 

There are three types of electronics stores:

 

Multi Brand Outlet: Stores having products of multiple brands. For example, Gada Electronics, Reliance Digital etc.

 

Single Brand (Franchise): Stores that have products focused on a single brand. For example, the local showroom of brands near you like Samsung, Whirlpool, LG, etc.

 

Second-Hand Dealer: They are the dealers selling refurbished products for low prices.

 

To clarify, refurbished products are those that are returned to a manufacturer or seller for various reasons, like not being sold in the market or a new product launch.

 

Step 2: Register your Business

 

The most crucial step is to register your business legally to avoid any conflicts. 

 

Above all, business registration keeps your personal and business assets and liabilities separately.

 

Therefore, when you are looking for how to start an electronics business, you should consider registering it on priority.

 

You can register your business under the following structures:

 

• Private Limited Company Registration
• Limited Liability Partnership
• Partnership
• Sole Proprietorship
• One Person Company

 

To read more about the business registration process, check out: How to register a new business in India?

 

Mandatory License: 

• GST Certificate
• Electronic and Home Appliance Service Dealer License (2 years validity) for electronic services
• Second Hand Dealer General License (2 years validity) for second-hand retailing of electronics.

 

NOTE: The electronic business license differs from state to state. Therefore, visit your states municipal corporation for the list of licenses required and get them all.

 

Step 3: Make a Business Plan 

 

A good business plan must have the following points:

• Name of the Business (Use the business name generator tool to save time deciding for name)
• Summary about your business
• List of gadgets with prices you will sell
• Mission & Vision 
• Job Roles 
• SWOT Analysis
• Market review
• Sales strategy
• Funding source
• Estimate of sales
• Advertising Plan
• Your Expenses in Business
• Growth plan

 

Step 4: Know your Customers

 

It is crucial to understand who your customers are. 

 

Therefore, there are certain things that you have to learn about your local customers. 

 

For instance, 

• What are the most preferred brands in your city? 
• How much is the average budget of your customers? 
• What are the features of products that your local customers prefer, like double door refrigerator or single door, window ac or split ac and so on?

 

Step 5: Investment and Source of Funding

 

Electronics business needs good capital investment for all the latest electronics gadgets and several items like store fixtures, lease amounts, employee wages, and advertisement.

 

You will require an initial investment of Rs. 15 - 20 lacs if you plan to start your business in metro cities like Delhi, Mumbai, Bangalore etc. 

 

But, in smaller cities, you can even start your electronic business with a minimum investment of Rs. 5 - 8 lacs.

 

Funding Sources: There are various sources to get investments these days. 

 

For instance, bank loans, angel investors, friends, family, crowdfunding, government schemes, venture capital, business loans from NBFC, microfinancing are the best funding sources.

 

Step 6: Find the Perfect Location 

 

The location of a store plays a vital role in attracting customers. 

 

Thus, a business works best in the areas which have the highest footfall of customers.

 

Therefore, if the location of a store is accessible to everyone, it will increase the demand and improves the survival possibilities.

 

Step 7: Find the Suppliers and Buy the Stock

 

Getting the right products affects the growth and popularity of your business directly. 

 

Moreover, there are two ways to get the goods:

 

-Buying directly from the wholesalers according to your judgment of the customer preference and budget.

 

-Tying up with a brand or buying a franchise so that they keep a check on all your stock. Also, you can order any specific products of the brand that you think has a good demand in your niche.

 

Step 8: Hire the team

 

An electronic business must have professional and disciplined staff for efficient running.

 

Accordingly, you require the following people:

• Floor Manager
• Cashier
• Stock Manager
• Engineer
• Sales Representative
• Security Guards
• Cleaner

 

INAUGURATE AND PROMOTE

 

After fulfilling all the requirements and getting all the necessary licenses, you are good to launch your business in the market.

 

So, plan a GRAND OPENING and use your network like friends, relatives, neighbors, family, business circle to promote your business. 

 

Above all, circulate the pamphlets of your grand opening with the local newspaper.

 

Also, you can encourage people to buy on the first day by putting up some exciting offers.

 

Conclusion

 

To sum up, starting a business is a dream of many of us. Further, with the appropriate information from the experts on how to start an electronics business, all of this becomes easy to achieve. 

 

Also, be patient as no firm generates profit immediately. However, with the rapid growth of technology, you can recover your investments within 2 months in an electronic business. 

 

For any more information, contact our experts at www.starteazy.in