Setting Up an Electronics Parts Shop

 

Part A: Market Study And Business Plan

With the advancement in the digital world, there seems to be almost an exponential jump in terms of the need for electronics parts. Many big names have emerged over time to compete to bring the best and reliable parts in the market. Many of these manufacturers now ship directly to customers making it competitive for a startup to settle in the market. A careful and thorough study plan and a business plan is needed to make your name in the market. Following are some of the recommendations

·         It is highly recommended to study the other electronics shops in the market in order to compete. The study must include the average price being charged, supply-demand chain study, and case studies for customer care and customer satisfaction. A local community survey is also recommended to get information on the needs of the local labs, workshops, and research organizations.

·         Now that you have a thorough study plan, the next phase is to devise a competitive business plan. Your business plan should clearly indicate the competitiveness and success rate in the market and a tentative plan showing the survival of your business.  Your fundraising depends solely on your business plan, as it will make sure that your business attracts investors. A local survey indicating how many stores are already available in your area would also help greatly in the implementation of your business plan.

·         After a business plan is developed, next comes the legal aspects of your business that is getting a business license, taxation, and duties, making contacts with suppliers to get information on MOQ, logistics, packaging, product quality, and distribution system. You should contact experts and experienced entrepreneurs outside your community would be a great idea. Getting a space on lease is also a part of this phase.

Once you go through all the above-recommended phases and finally set up a shop, you should not settle down. Franchising your store should always be on your list if you plan to establish a state-level business. Another recommendation is that developing an online store and providing shipment services to your customers as the trend has now shifted to the online mode of purchasing and all big names are providing shipment services. Various surveys have shown that customers now prefer to shop online unless it is necessary to make a contact purchase.

 

Part B: Analysis of Electronics Parts In The Market

A very crucial step before sourcing the components and equipment is to analyze what is the need of the market. A general idea can be developed from part A where a market survey could help in making an estimate that how many laboratories, organizations, and workshops are in your community and what number of other local stores are available in order for you to write down the numbers of inventory for sourcing. No matter what, there is always some basic equipment that is always needed ed and your inventory must be filled with enough units to accommodate the need of the customer. A list of some of these items includes digital multimeters, power supplies, soldering units, resistors, capacitors, inductors, integrated chips, switches and handling, and safety tools. Some key factors of market study must include the following:

·         Market size, product segments, and major markets

·         Key statistics, market trends, and external drivers

·         Operating conditions and current performance

·         Competitive landscape and environment

·         Major company profiles and market shares

·         Critical issues and key success factors

·         Five-year outlook and growth forecast

You may also look into your potential audience, which may include:

·         Research organizations

·         System Integrators

·         Chipset Vendors

·         User Equipment Manufacturers

·         Network Infrastructure Integrators

·         Government Organizations

·         Research/Consultancy firms