Business Model
Technology is one of the major developments made by humankind. With each new day, new technologies are innovated and designed to improve the quality of life and how various activities are carried out. A smartphone is one of the most owned treceheno0logicaal devices. In Canada, 86% of the citizens own a smartphone (Hardy, 2018). Moreover, smartphone ownership tends to vary across the various demographical groups, and some will have more than one. Given the millions of smartphones owned by Canadian citizens, the cell phone repair business is one sector most businesses have not explored. According to Cell Store (2018), more than 24% of all smartphone’s owned have cracked screens. However, smartphones will also tend to have other repair-related issues, including battery, speaker, camera, performance, and viruses problems.
Given the high number of smartphone owners in the USA, Wefix Tech is an n expert smartphone repair business located in Edmond, Alberta, Canada. Wefix Tech offers its customers an efficient and straightforward solution to repairing their phone problems. The businesses’ activities have been tailored to meet each customer’s needs, which make its services unmatched and excellent. More importantly, given that most phone repair businesses charge customers expensively, Wefix Tech will offer not only the most reliable but affordable phone repair solutions to its customers the high-quality services offered by Wefix Tech are made possible through using state of the art repair tools and having qualified phone repair technicians.
Wefix Tech targets all consumers who own smartphones in Edmond, Alberta. Currently, smartphones are owned by users of all ages. However, Wefix Tech will not only target customers from Edmond but also from other Alberta cities that visit Edmond and need their smartphones repaired. As of October 2021, Alberta’s population was over 4 million people, with Edmond having over 900,000 people. Hardy (2018) notes that smartphone penetration is highest in Alberta, whereby 92% of all households reported owning a smartphone compared to 86% of the national average. This indicates that Edmond’s cell phone repair business is very lucrative, given the high smartphone ownership.
Market Analysis
The need to remain interconnected and own personal devices will make the smartphone industry continue thriving in Canada and globally. Over 300 million smartphone units were shipped in the second quarter of 2021, representing a 13.2% increase compared to the previous quarter (International Data Corporation, 2021). This increase displays that the smartphone business is still growing. The smartphone industry’s stiff competition indicates companies will always release new phone versions, and customers will always want the new models. However, most companies have very complex after-sales support services if a customer’s phone gets damaged. The high costs involved have made most smartphone users opt for cell phone repair shops. Losing personal information is another factor in people choosing to repair their damaged phones.
Marketing Strategies
The success of any business is based on considering various factors. Given that quality products and services play an avital role, it will not generate profits if the business does not grab the user’s attention. The cell phone repair business is highly competitive, given the low start-up costs. The only way a business will outshine competitors is by having the best marketing strategy to increase customer numbers. Having a pool of loyal customers is vital to the success of the sofa business.
In order to generate customer attention, Wefix Tech is going to rely on creating a robust digital marketing strategy. The first strategy will involve designing a website since this will be the business face. The website will be compelling, appealing, and visually irresistible. Kaplan (2020) stated that having an online presence irrespective of the industry is key to success. The website will be user-friendly, whereby it will be based on an omnichannel approach allowing customers to access the site via different devices. More importantly, search engine optimization (SEO) will be employed in the website. This allows the various search engine algorithms to detect the website and display it in the search result every time an individual searches for a phone repair service. Search optimization tools such as SemRush or Ahrefs will be used in the website
Traffic generation on the website will be supported through using ads.
Some of the most effective advertising platforms and strategies are supported by Facebook and Instagram ads. Social media provides unique and powerful advertising tools. Given that there are billions of users’ son social media platforms, they can help generate traffic. Facebook and Instagram ads will help appeal to potential customers based on their interests, behavior, and location. Google ads are also essential advertising tools. They allow a business in being featured amongst top search results. Wefix Tech is a local business an indication using Google ads will ensure that the business appears if a potential client searches for similar services offered by Wefix Tech. Retargeting ads are also very essential in attracting potential clients. Retargeting ads will be used to show various targeted ads to users who visited Wefix Tech’s website and did not complete a conversion; in this case, fill out the contact form or request for services. Retargeting ads will ensure that the services offered by the business stay in the past customer’s minds every time they are browsing Google Display Network websites.
Marketing Cost Estimates
According to BDC (2021), the average marketing costs for small Canadian businesses average about $30,000 a year. Wefix Tech will mostly rely on a digital marketing strategy that will involve designing its website, built-in analytics to help track customers, optimized content, website administrator, Facebook, Instagram, Google, and retargeting ads to generate traffic to the website.
Wefix Tech will rely on a professionally designed website, which will be customized to match business requirements. According to the New Design Group (2022), a professionally designed website will cost about $5,000-$50,000. However, Wefix Tech will design a $5,000 website. Out of this, $2,000 will be used in paying for web design time, $450 generation of high-quality stock photos, $300 addition of contact form, $1,000 incorporation of an e-commerce feature, $250 for content creation, and another $1,000 for incorporation of CMS to the website. The web design costs will be one-time costs. BDC (2021) noted that online advertisements using a search engine will cost about $1,000 a month. WebFX (2022) indicated that social media advertisements vary depending on the platform used. Facebook and Instagram charge $5 per day for clicks, likes, and views. Wefix will thus use this option in generating traffic to its website. Other marketing costs will include $600 a month for the marketing team. Therefore, the forecasted 12 months marketing costs are highlighted in the table below;
| Item | Cost | Total |
| Website design | $5,000 | $5,000 |
| Google ads | $1,000 a month | $ 12,000 |
| Facebook and Instagram ads | $10 per day | $3,650 |
| Marketing team salaries | $600 per month | $7,200 |
| Miscellaneous | $2,500 | $2,500 |
| Total Costs | $30,350 |
Revenue Forecast
Wefix Tech will offer the following services to its clients, with each having a listed price;
- Jammed lock button at $20-$40
- Power button replacement at $15-$35
- Bulging or swollen battery $20-$80
- Keyboard repair at $10-$25
- Earpiece repair at $26-$34
- Charger or issues $ 17-$22
- Chip repair $ 58-$100
- Cracked screen repair $ 45- $120
- Front and back camera repair $10- $35
- Software problems $ 60- $150
The minimum price charged for phone repair services is $ 24 is, while the maximum is $ 64. This indicates that the average price for services at Wefix Tech is $44. The business aims at serving about five customers per day during the first three months. This indicates that the business anticipates making about $19,800. However, the customer numbers are anticipated to increase to about ten starting from the fourth month by the first year generating about $118,800. For the first year, the business anticipates generating about $138,600. The income statement below highlights the anticipated profits;
| Profit and Loss Statement | |
| Year | 2022 ($) |
| Sales | 138,600 |
| Cost of Goods | 20,000 |
| Operating Income | 118,600 |
| Expenses | |
| Employee Salaries | 10,000 |
| Administrative and Management Staff Salaries | 15,000 |
| Marketing Expenses | 30,350 |
| Professional Fees and Licenses | 2,650 |
| Rent and Utilities | 6,500 |
| Miscellaneous Costs | 8,000 |
| Payroll Taxes | 2,500 |
| Total Operating Costs | 75,000 |
| Federal Income Tax | 2,000 |
| State Income Tax | 600 |
| Interest Expense | 3,700 |
| Total | 6,300 |
| Net Profit | 37,300 |
General and Administrative Expenses Forecast
The general and administrative expenses represent the costs that Wefix Tech will incur in the business’s day-to-day running whether or not it gets customers. Some general and administrative expenses include insurance payments, utilities, rennet, wages and sales, accounting and legal costs and human resource service. The forecasted general and administrative expenses to be incurred by Wefix Tech for the first year are highlighted in the table below;
| Expenses | |
| Employee Salaries | 10,000 |
| Administrative and Management Staff Salaries | 15,000 |
| Marketing Expenses | 30,350 |
| Professional Fees and Licenses | 2,650 |
| Rent and Utilities | 6,500 |
| Miscellaneous Costs | 8,000 |
| Payroll Taxes | 2,500 |
| Total Operating Costs | 75,000 |
References
BDC. (2021, August 27). What is an average marketing budget for a small business? BDC. https://www.bdc.ca/en/articles-tools/marketing-sales-export/marketing/what-average-marketing-budget-for-small-business
Cell Store. (2018). Top business opportunities 2018: Cell phone repair business. Retrieved from https://cellstore.co/articles/2016/07/03/top-business-opportunities-2016-2017-cell-phone-repair-business/https://cellstore.co/articles/2016/07/03/top-business-opportunities-2016-2017-cell-phone-repair-business/
Hardy, I. (2018, November 6). 86 per cent of Canadians own a smartphone, says CTA report. MobileSyrup. Retrieved from https://mobilesyrup.com/2018/11/05/86-percent-of-canadians-own-smartphone/
International Data Corporation. (2021). The Global Smartphone Market Grew 13.2% in the Second Quarter Despite Supply Concerns and Vendor Shakeups, According to IDC. Retrieved from https://www.idc.com/getdoc.jsp?containerId=prUS48120021
Kaplan, K. (2021, December 10). Council post: Why every business needs a website. Forbes. Retrieved from https://www.forbes.com/sites/theyec/2020/02/03/why-every-business-needs-a-website/?sh=14cf99be6e75
Website design prices Toronto. New Design Group Inc. (2021, September 13). Retrieved January 25, 2022, from https://www.newdesigngroup.ca/website-design/web-design-costs/
WebFX. (2022, January 11). How much does social media advertising cost in 2022? WebFX. Retrieved from https://www.webfx.com/social-media/pricing/how-much-does-social-media-advertising-cost/#619809dc4bf54-1
write