Starting a phone case business can be very profitable. With proper planning, execution and hard work, you can enjoy great success. Below you will learn the keys to launching a successful phone case business.
Importantly, a critical step in starting a phone case business is to complete your business plan. To help you out, you should download Growthink’s Ultimate Business Plan Template here.
14 Steps To Start a Phone Case Business:
- Choose the Name for Your Phone Case Business
- Develop Your Phone Case Business Plan
- Choose the Legal Structure for Your Phone Case Business
- Secure Startup Funding for Your Phone Case Business (If Needed)
- Secure a Location for Your Business
- Register Your Phone Case Business with the IRS
- Open a Business Bank Account
- Get a Business Credit Card
- Get the Required Business Licenses and Permits
- Get Business Insurance for Your Phone Case Business
- Buy or Lease the Right Phone Case Business Equipment
- Develop Your Phone Case Business Marketing Materials
- Purchase and Setup the Software Needed to Run Your Phone Case Business
- Open for Business
1. Choose the Name for Your Phone Case Business
The first step to starting a phone case business is to choose your business’ name.
This is a very important choice since your company name is your brand and will last for the lifetime of your business. Ideally you choose a name that is meaningful and memorable. Here are some tips for choosing a name for your phone case business:
- Make sure the name is available. Check your desired name against trademark databases and your state’s list of registered business names to see if it’s available. Also check to see if a suitable domain name is available.
- Keep it simple. The best names are usually ones that are easy to remember, pronounce and spell.
- Think about marketing. Come up with a name that reflects the desired brand and/or focus of your own phone case business.
2. Develop Your Phone Case Business Plan
One of the most important steps in starting a phone case business is to develop your business plan. The process of creating your plan ensures that you fully understand your phone case market and your business strategy. The plan also provides you with a roadmap to follow and if needed, to present to funding sources to raise capital for your business.
Your business plan should include the following sections:
- Executive Summary – this section should summarize your entire business plan so readers can quickly understand the key details of your new business.
- Company Overview – this section tells the reader about the history of your phone case brand and what type of phone case business you operate. For example, are you a custom phone case business, phone case retailer, phone case manufacturer, or a phone case recycler.
- Industry Analysis – here you will document key information about the phone case industry. Conduct market research and document how big the industry is and what trends are affecting it.
- Customer Analysis – in this section, you will document who your ideal or target audience are and their demographics. For example, how old are they? Where do they live? What do they find important when purchasing products like the ones you will offer?
- Competitive Analysis – here you will document the key direct and indirect competitors you will face and how you will build competitive advantage.
- Marketing Plan – your marketing plan should address the 4Ps: Product, Price, Promotions and Place.
- Product: Determine and document what products/services you will offer
- Prices: Document the prices of your products/services
- Place: Where will your business be located and how will that location help you increase sales?
- Promotions: What promotional methods will you use to attract customers to your phone case business? For example, you might decide to use paid advertising, public relations, search engine optimization and/or social media marketing.
- Operations Plan – here you will determine the key processes you will need to run your day-to-day operations. You will also determine your staffing needs. Finally, in this section of your plan, you will create a projected growth timeline showing the milestones you hope to achieve in the coming years.
- Management Team – this section details the background of your company’s management team.
- Financial Plan – finally, the financial plan answers questions including the following:
- What startup costs will you incur?
- How will your phone case business make money?
- What are your projected sales and expenses for the next five years?
- Do you need to raise funding to launch your business?
3. Choose the Legal Structure for Your Phone Case Business
Next you need to choose a legal business structure for your phone case business and register it and your business name with the Secretary of State in each state where you operate your business.
Below are the five most common legal structures:
1) Sole proprietorship
A sole proprietorship is a business entity in which the owner of the phone case business and the business are the same legal person. The owner of a sole proprietorship is responsible for all debts and obligations of the business. There are no formalities required to establish a sole proprietorship, and it is easy to set up and operate. The main advantage of a sole proprietorship is that it is simple and inexpensive to establish. The main disadvantage is that the owner is liable for all debts and obligations of the business.
A partnership is a legal structure that is popular among small businesses. It is an agreement between two or more people who want to start a phone case business together. The partners share in the profits and losses of the business.
The advantages of a partnership are that it is easy to set up, and the partners share in the profits and losses of the business. The disadvantages of a partnership are that the partners are jointly liable for the debts of the business, and disagreements between partners can be difficult to resolve.
3) Limited Liability Company (LLC)
A limited liability company, or LLC, is a type of business entity that provides limited liability to its owners. This means that the owners of an LLC are not personally responsible for the debts and liabilities of the business. The advantages of an LLC for a phone case business include flexibility in management, pass-through taxation (avoids double taxation as explained below), and limited personal liability. The disadvantages of an LLC include lack of availability in some states and self-employment taxes.
4) C Corporation
A C Corporation is a business entity that is separate from its owners. It has its own tax ID and can have shareholders. The main advantage of a C Corporation for a phone case business is that it offers limited liability to its owners. This means that the owners are not personally responsible for the debts and liabilities of the business. The disadvantage is that C Corporations are subject to double taxation. This means that the corporation pays taxes on its profits, and the shareholders also pay taxes on their dividends.
5) S Corporation
An S Corporation is a type of corporation that provides its owners with limited liability protection and allows them to pass their business income through to their personal income tax returns, thus avoiding double taxation. There are several limitations on S Corporations including the number of shareholders they can have among others.
Once you register your phone case business, your state will send you your official “Articles of Incorporation.” You will need this among other documentation when establishing your banking account (see below). We recommend that you consult an attorney in determining which legal structure is best suited for your company.
4. Secure Startup Funding for Your Phone Case Business (If Needed)
In developing your phone case business plan, you might have determined that you need to raise funding to launch your business.
If so, the main sources of funding for a phone case business to consider are personal savings, family and friends, credit card financing, bank loans, crowdfunding and angel investors. Angel investors are individuals who provide capital to early-stage businesses. Angel investors typically will invest in a phone case business that they believe has high potential for growth.
5. Secure a Location for Your Business
The best way to find a location for your phone case business is to identify a spot that is frequented by a lot of people. This will ensure that your business is seen by as many people as possible and will help increase your sales. You’ll also want to find a space that is affordable and meets the zoning regulations in the area. You can also start your own online store where you can sell phone cases online.
6. Register Your Phone Case Business with the IRS
Next, you need to register your business with the Internal Revenue Service (IRS) which will result in the IRS issuing you an Employer Identification Number (EIN).
Most banks will require you to have an EIN in order to open up an account. In addition, in order to hire employees, you will need an EIN since that is how the IRS tracks your payroll tax payments.
Note that if you are a sole proprietor without employees, you generally do not need to get an EIN. Rather, you would use your social security number (instead of your EIN) as your taxpayer identification number.
7. Open a Business Bank Account
It is important to establish a bank account in your phone case business’ name. This process is fairly simple and involves the following steps:
- Identify and contact the bank you want to use
- Gather and present the required documents (generally include your company’s Articles of Incorporation, driver’s license or passport, and proof of address)
- Complete the bank’s application form and provide all relevant information
- Meet with a banker to discuss your business needs and establish a relationship with them
8. Get a Business Credit Card
You should get a business credit card for your phone case business to help you separate personal and business expenses.
You can either apply for a business credit card through your bank or apply for one through a credit card company.
When you’re applying for a business credit card, you’ll need to provide some information about your business. This includes the name of your business, the address of your business, and the type of business you’re running. You’ll also need to provide some information about yourself, including your name, Social Security number, and date of birth.
Once you’ve been approved for a business credit card, you’ll be able to use it to make purchases for your business. You can also use it to build your credit history which could be very important in securing loans and getting credit lines for your business in the future.
9. Get the Required Business Licenses and Permits
To start a phone case business, you’ll need a business license and a permit to operate. You may also need a seller’s permit if you plan to sell your products wholesale or retail. Check with your local government to confirm what licenses and permits are required.
10. Get Business Insurance for Your Phone Case Business
The type of insurance you need to operate a phone case business depends on the type of business.
Some business insurance policies you should consider for your phone case business include:
- General liability insurance: This covers accidents and injuries that occur on your property. It also covers damages caused by your employees or products.
- Workers’ compensation insurance: If you have employees, this type of policy works with your general liability policy to protect against workplace injuries and accidents. It also covers medical expenses and lost wages.
- Commercial property insurance: This covers damage to your property caused by fire, theft, or vandalism.
- Business interruption insurance: This covers lost income and expenses if your business is forced to close due to a covered event.
- Professional liability insurance: This protects your business against claims of professional negligence.
Find an insurance agent, tell them about your business and its needs, and they will recommend policies that fit those needs.
11. Buy or Lease the Right Phone Case Business Equipment
To start a phone case business, you will need a few essential pieces of equipment. You will need a computer with a design program to create your designs, a printer to print the designs, and a heat press to apply the designs to the cases. You may also want to invest in a case cutter to help you cut the cases to size.
12. Develop Your Phone Case Business Marketing Materials
Marketing materials will be required to attract and retain customers to your phone case business.
The key marketing materials you will need are as follows:
- Logo: Spend some time developing a good logo for your phone case business. Your logo will be printed on company stationery, business cards, marketing materials and so forth. The right logo can increase customer trust and awareness of your brand.
- Website: Likewise, a professional phone case business website provides potential customers with information about the products you offer, your company’s history, and contact information. Importantly, remember that the look and feel of your own website will affect how customers perceive you.
- Social Media Accounts: establish social media accounts in your company’s name. Accounts on Facebook, Twitter, LinkedIn and/or other social media networks will help customers and others find and interact with your phone case business.
13. Purchase and Setup the Software Needed to Run Your Phone Case Business
The software you need to run a phone case business is a point of sale (POS) system that allows you to track sales and inventory, and design software to create different designs for your cases. You also need an inventory management system that keeps track of how many cases you have in stock and helps you order more when necessary.
14. Open for Business
You are now ready to open your phone case business. If you followed the steps above, you should be in a great position to build a successful business. Below are answers to frequently asked questions that might further help you.
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How to Start a Phone Case Business FAQs
No, it is not difficult to start a phone case business. All you need is some basic knowledge about the production process and how to market your products.
There are a few things you can do to get started in the phone case business with no experience. First, research what materials and designs are popular. You can also look for companies that sell phone cases and contact them to see if they're interested in working with you. Finally, post about your phone case business online to advertise your cases to potential customers.
The type of phone case business that is most profitable is one that offers print on demand services and manufactures custom phone cases. These businesses are able to charge a higher price for their cases because they are custom made and not available in stores. These businesses also have a higher profit margin, as the cost of the materials is relatively low.
It can cost around $10,000 to start a phone case business. This includes the costs of getting a proper business license, setting up a website and online store, and purchasing the necessary inventory.
There are a few ongoing expenses for a profitable phone case business. One of the main expenses is the cost of the materials used to make the phone cases. Another expense is the cost of marketing and advertising the business. Additionally, there are costs associated with running the business, such as office supplies and utilities.
A phone case business can make money by selling phone cases to customers, either through a physical store or an online shop. The business can also make money by licensing its designs to other companies that manufacture and sell phone cases.
Yes, owning a phone case store can be profitable because there is a high demand for new phone cases all the time. People want to protect their phones from damage, and they also want to express their personal style through their cases. Many people are willing to pay a premium for designer cases.
The most common reason phone case businesses fail is because they do not have a unique selling proposition. In other words, they are not offering anything that is different or better than what is already available on the market. Additionally, other business owners fail because they do not have a well-defined target market. Without knowing who their ideal customer is, it is difficult to create marketing and sales strategies that will reach those customers. Finally, they do not have a solid business plan in place. This includes having a clear vision for the business, as well as detailed plans for marketing, sales, and operations. Without a solid business plan, it is difficult to make smart decisions that will help the business grow.