Turnkey Smartphone & Computer Repair (2 Locations)

Studio City, CA (Los Angeles County)

Turnkey Smartphone & Computer Repair (2 Locations)
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Asking Price: Get Financing: $250,000

Cash Flow: $78,596

Gross Revenue: $322,528

EBITDA: N/A

FF&E: $80,000

Inventory: $40,000

Lease Rate: N/A /SF

Established: 2011

Turnkey Smartphone & Computer Repair (2 Locations)

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Business Description

Established in June, 2011, this business offers two storefront locations that are fully turn-key and profitable. The business has established an excellent reputation as a full service repair specialists for any and all handheld devices or computers. Also offered is hard drive data recovery, activations, and on-site repair services. Both storefronts also carry a large selection of products and accessories that add a retail element to the business. Multiple revenue streams and a very simple, easy to manage business model makes this an ideal investment for an owner operator looking for a cashflowing investment, or someone within the industry looking to expand their operations.

This business has operated under the same ownership since it’s inception 7+ years ago. The current owner operates the business on a semi-absentee basis, and allocates around 30 hours per week to both locations. Each store has a designated manager running it, while the owner oversees dealing with suppliers, hiring, accounting, inventory management, and any other administrative duties.

The business has established an excellent reputation via online review sites with each store accumulating a large number of favorable feedback from previous customers. One store has acquired a 4.5 star rating with 300+ reviews, and the other store a 5 star rating with nearly 70 reviews. The owner has invested time into building up the business’s social media channels to 800 likes on Facebook with a 4.7 rating, and over 1,750 followers on Instagram.

This is a one stop shop that is capable of accommodating clients on repairs of any handheld device or computer. Many other phone repair or data recovery services will specialize in only one particular service, while this business enjoys the ability to offer a wide variety of services to accommodate nearly any of it’s customer’s needs. Extremely high margins on both services and product sales with a 2-10x markup. Services include:
-Phone and laptop repair (replacement of screens, headphone jack, speaker, camera, battery, etc)
-Hard drive data recovery (backups, restores, corrupted data, etc)
-Water damage repair
-Mobile service (on-site repairs to customers not able to come into the store)
-Accessory sales (chargers, smartphone cases, tablet cases, OEM and Non-OEM parts, temper glass, iPhone glass, headphones, aux cords, speakers, HD cameras, and other mobile accessories).
-Prepaid activations
-Carrier unlocks, custom covers, and color conversions

Both stores enjoy prime locations in fully occupied, busy strip centers off of high traffic cross streets. One of the locations is on Ventura Blvd less than 1.5 miles from Universal Studios in a tourist dense area surrounded with an abundance of popular restaurants and bars, providing for walk in customers during the warmer tourism months. The other store is located in Van Nuys off of a major intersection with strong traffic flow. Both locations were built to suit to accommodate the business’s needs and have a very cleanly presented, uniform design. The owner implemented high security measures with both locations having security cameras, steel folding gates, and alarm systems installed. No corners were cut in regards to securing either space. Each of the locations also comes with 2 designated parking stalls in each of their parking lots.

The industry provides for a very broad customer base (essentially anyone with a phone, tablet, or computer). Historically customers have been acquired through Yelp (paid and unpaid traffic), Google organic search, Verizon/AT&T store referrals, flyers, storefront banners, street/parking lot signs, pop up/tent events with wireless carriers, direct mail, and Craigslist ads. The Summer and holiday seasons tend to be the busiest times of year due to water damage repairs, and people looking to fix their phones to trade-in/sell them for newer released models.

Steady, consistent revenues have been attained over the years of ownership. The owner has never had to lend money to the business since it’s inception to keep it afloat. The business has no debt or lease obligations of any kind as everything is owned outright. All of the bookkeeping, inventory, and customer management is handled through an easy to use software platform. Overall it is a very lean, easy to manage business with solid longevity and an outstanding reputation. The business is seeking an industrious new owner who is willing to grow it to it’s full potential.

Detailed Information

Inventory:
Included in asking price
Real Estate:
Leased
Building SF:
N/A
Lease Expiration:
N/A
Employees:
3 FT
Furniture, Fixtures, & Equipment (FF&E):
Included in asking price
Facilities:
Each space occupies between 1,000-1,250 sq ft, which includes a front retail area containing all of the accessories and products, and a back work area containing work desks, repair equipment, and storage for parts and excess inventory. There is space available for additional work desks if there was a need for expansion. The owner has taken pride of ownership by keeping both spaces clean and well maintained.
Competition:
This business’s primary point of difference is their diversification of services. Most of the competitor stores specialize in a specific singular service, but do not necessarily offer the same array of products and services as this establishment. The business prides itself on providing a very high quality of replacement parts, and offers a full 90 day warranty on any service they provide. Most importantly, this business has longevity in operation that most competitors do not share (going on 8 years).
Growth & Expansion:
This is an ever growing industry with the demand for maintenance and repairs consistently increasing. The quality of electronic products continues to improve, causing repair costs, and subsequently margins to increase with them. There’s tremendous upside potential for a new owner to drastically increase revenues by tapping into unrealized upside potential: 1) Establish an online presence by selling products online via Amazon, Ebay, and an E-Commerce store such as Shopify. The business has access to vendors for every kind of mobile/computer related part or accessory, and receives steep wholesale pricing. By establishing storefronts online the business can generate substantial additional income by taking advantage of an easily implemented revenue stream not currently utilized. 2) Carry additional products and brands both in store and online. There is capacity to carry more original brands, more accessories, and popular consumer electronic products such as Beats headphones, bluetooth speakers, and wireless cameras. Offering a larger variety of products will tap into unrealized gains on the retail side of the business. 3) Establish a Warranty side of the business by pursuing corporate accounts with wireless carriers and insurance companies to handle all of their warranty repair needs. B2B is a huge income producing category that is currently unexplored. 4) Expand on mobile repair services by providing on-site mobile repairs to accommodate clients unable to physically visit the store. 5) Pursue outside revenue streams: security camera sales and installations, home entertainment sales and installation, office setups, motherboard work, and TV repairs are all additional services that can be offered to customers. 6) Increase marketing by leveraging the outstanding customer feedback established online. Yelp, Google, and direct mail provide the greatest opportunities for highest returns. Currently the owner is not actively marketing the business on an ongoing basis. All of the business is generated from a repeat and referral basis.
Support & Training:
The seller will provide all proprietary information necessary for operating the business, and is happy to stay on for a short period of time to train the buyer and ensure a smooth transition. He will also provide an additional 2 weeks of ongoing consultation on an as-needed basis.
Reason for Selling:
Owner has a separate business endeavor he is focusing on.
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Dehlan Group

Business Listed By:
Dehlan Group

Guarantee Real Estate

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