How to Open a Cell Phone Business

Wireless cellular phone service is a hot commodity. Building your own wireless infrastructure and acquiring technicians to maintain your network can cost millions to billions of dollars, so a much more cost-effective way to start a cell phone business is to become a reseller for an already established company.

Things You'll Need

• Retail space Room for inventory

Instructions

1. Determine if there is a need for a new cell phone retailer in your area and if there will be steady enough sales to support your business. Research the local market extensively before opening your business by doing outbound phone polls, taking out ads in the paper and talking with a representative at your local chamber of commerce building.

2. Get a business license through your state government if you do not already have one, and then present a completed business plan to a bank if you need to secure initial capital in the form of a loan.

3. Look for an established wireless company that will allow you to become an authorized reseller or dealer. Find one that has extensive coverage in your area and offers phones and plans at a rate that is competitive in your market.

4. Talk to other wireless retailers in the area to see if they would be interested in operating out of the same building to help share the cost of rent and utilities.

5. Contact the wireless company by calling their 800 number or going onto their website and fill out the initial form that will be required to apply to become a reseller. See Resources below for several wireless company dealer opportunities.

6. Speak with the wireless company's reseller contact to find out how you can order inventory and what the customer activation process will entail.

7. Order slightly more phones and accessories than you initially think you will need in case demand is high, since it is easier to operate with excess inventory than with not enough.

8. Advertise your business extensively to drive customers into your store. Use radio ads that stress the price and coverage area of the cellular plans you offer and consider taking advantage of television or newspaper spots as well.

Tips & Warnings

• Although no one wants to think that their business will go under, it is vitally important to come up with a viable exit strategy before starting your business so that you don't have to declare bankruptcy or acquire more debt than you can handle.

Resources

• Become a Verizon dealer
• Become an Alltell dealer
• Gaebler: Cell phone franchise opportunities