How to Start a Tech Refurbisher Business in 2024
Last Updated: 12/17/2023
Starting a Tech Refurbisher Business: A Step-by-Step Guide
Ever thought about starting your own tech refurbishing biz? With all the e-waste out there and people wanting affordable electronics, now’s the time to jump in. In this post, I’ll walk you through how to launch a sweet refurbishing startup.
Choose a Business Structure
First big call is picking how you’ll structure things — sole proprietorship, partnership, corporation, LLC? Each has perks and drawbacks for liability, taxes, setup. Lots of refurbishers dig LLCs — personal liability protection with pass-through taxes. Talk with attorneys and accountants to decide what works for you.
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Obtain Necessary Licenses & Permits
Depending where you are, you’ll likely need special licenses and permits for collecting, transporting, processing, reselling, and disposing e-waste. Research federal, state, and local regulations to stay compliant. Key permits are e-waste handling, reseller, and business licenses.
Secure Funding & Financing
Launching a refurb biz takes major upfront capital. Figure startup costs for equipment, tools, commercial space, storage, vehicles, inventory, employees, insurance, etc. With estimates, get funding — loans, crowdfunding, grants, investors. Nail down financing first.
Source Your Inventory
Key for any refurbisher is steady inventory flow of tech to refurbish and resell. Buddy up to manufacturers, retailers, corporations, schools, agencies, recyclers to score bulk supply contracts. Attend trade shows and conventions to connect with suppliers.
Set Up Commercial Space
You’ll need a properly zoned and licensed facility for operations. Seek out commercial warehouse space for receiving, sorting, disassembling, cleaning, repairing, and storing inventory. Ensure adequate electrical, lighting, ventilation, security.
Buy Equipment & Tools
Gear up your workspace with necessary tools for testing, troubleshooting, repairing computers, laptops, tablets, printers, routers, phones, TVs, etc. Must-haves include soldering stations, multimeters, power supplies, screwdrivers, pry bars, followers, cleaning supplies, safety equipment.
Hire Employees
Bring on experienced techs, refurbishers, IT pros to assist with repairs. Also hire warehouse, inventory, listing, photography, customer service, delivery staff. Make detailed training programs.
Set Pricing & List Items
Research current market rates for refurbished stuff based on condition. Price competitively with profit margins considering parts, labor, overhead. Post great descriptions and pics on your ecommerce site and eBay, Amazon, Craigslist.
Market Your Business
Promote your brand and inventory through search marketing, social media, email newsletters. Show up at local computer fairs to demo products and network. Partner with repair shops and recyclers for referrals. Offer warranties to stand behind your goods.
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Create a custom business plan with financial projections and market research in minutes with ProAI’s business plan generator.
Tech Refurbisher Financial Forecasts
Startup Expenses
Monthly Operating Expenses
Revenue Forecast
FAQ
What skills and experience should I have before starting a tech refurbishing business?
It’s helpful to have experience repairing and refurbishing various electronics. Strong technical skills in areas like soldering, coding, hardware components, and troubleshooting are key. Business experience with procurement, inventory management, marketing, and e-commerce are also beneficial. Formal training in IT or engineering fields demonstrates relevant knowledge.
What types of tech products do most refurbishers handle?
Common products include laptops, desktops, tablets, cell phones, routers, printers, TVs, game consoles and more. Focus on 2–3 product categories where you have expertise vs trying to refurbish everything. Over time you can expand into additional products.
What is the most important factor when pricing refurbished items?
Pricing comes down to your costs vs current market rates. Add up parts, labor, overhead, supplies, and desired profit margin. Then research prices for that same item in similar condition on eBay, Craigslist etc. Price competitively but don’t lose money.
Where is the best place to find used electronics in bulk?
Building partnerships with electronics manufacturers, big box and online retailers, corporations and government agencies to secure their surplus, open-box, off-lease and obsolete inventory. Network at industry trade shows and conferences to connect with suppliers holding inventory contracts.
What are the most effective marketing strategies for a refurbisher?
Having an intuitive e-commerce website with detailed product listings and promotions. Driving traffic through SEO, PPC ads, social media, and sending email newsletters to customers. Attending local computer shows to demo products and interact with the tech community. Referral partnerships with repair shops and recyclers.
