How to start an appliance repair business: a day-one checklist

1. Decide what you will service

Pick your starting lane, because it decides your tools, certification and parts stock. Common choices are laundry and kitchen appliances (washers, dryers, dishwashers, ranges) with or without refrigeration. Sealed-system refrigeration work needs extra equipment and certification (see step 3), so many new shops start without it and add it later.

• List the appliance types and brands you are confident repairing today.
• Decide whether you will work on gas appliances.
• Set a service area you can cover without losing the day to driving.

2. Set up the business legally

• Choose a structure. Most one-person shops are a sole proprietorship or an LLC. An accountant can explain the liability and tax difference for your situation.
• Get an EIN from the IRS (free) and open a business bank account so business money stays separate.
• Register and license locally. Most cities or counties require a general business license.
• Check for appliance-specific rules. Some states regulate appliance repair businesses directly. California, for example, requires appliance service dealers to register with its Bureau of Household Goods and Services. Ask your state's consumer affairs or contractor licensing agency what applies to you.
• Ask about gas work. Some states and cities require a separate license to work on gas lines or gas appliances.
• Ask about sales tax. Whether parts and labor are taxable differs by state; your state's tax agency will tell you if you need a seller's permit.

3. Get EPA Section 608 certified if you will touch refrigerant

Federal law requires EPA Section 608 technician certification to maintain, service, repair or dispose of equipment in a way that could release refrigerant. For household work the relevant level is Type I, which covers small appliances that are factory-charged and hermetically sealed with five pounds of refrigerant or less, such as household refrigerators and freezers. Universal certification covers every type.

• You take the exam through an EPA-approved certifying organization.
• Refrigerant sellers must verify that the buyer is certified or employs a certified technician.
• Without it, keep to repairs that do not open the refrigerant circuit: door seals, fans, defrost components, controls.

4. Insure the business before the first call

• General liability covers damage or injury you cause in a customer's home, such as a flooded kitchen floor.
• Commercial auto covers the vehicle you work from; personal auto policies often exclude business use.
• Tools and equipment coverage protects what is in the van.
• Workers' compensation is typically required once you have employees; the rules are set by each state.

An independent insurance broker can quote these together and tell you what is mandatory where you operate.

5. Build the day-one tool kit

You can start lean. This covers most laundry and kitchen calls:

• Digital multimeter and a clamp meter
• Nut drivers, screwdrivers, and Torx and security bits
• Pliers, adjustable wrenches and a putty knife for panels and clips
• Flashlight or headlamp and an inspection mirror
• Thermometer for refrigerator, freezer and oven checks
• Manometer if you will work on gas appliances
• Appliance dolly, floor protection and drop cloths
• Shop vacuum and a condenser coil brush
• Safety glasses, cut-resistant gloves and a non-contact voltage tester

Add refrigerant recovery equipment, gauges and a vacuum pump only if you are certified for sealed-system work. Open accounts with one or two parts distributors early, and keep service manuals and tech sheets for the brands you see most.

6. Set your pricing structure

Decide these before the phone rings, and say them the same way every time:

• Service call or diagnostic fee: what you charge to come out and find the fault, and whether it is credited toward the repair.
• Labor: a flat rate per type of repair, or an hourly rate. Flat rates are easier for customers to accept; hourly protects you on unknowns.
• Parts: your cost plus a markup that pays for sourcing, stocking and warranty.
• Repair warranty: how long you stand behind your labor and the parts you fit.
• Trip charge: for calls outside your normal area, if you take them.

Work your rate out from your own numbers. Add your monthly costs (insurance, vehicle, fuel, phone, software, tools, parts stock) to the pay you need, then divide by the billable hours you can realistically work.

7. Invoice every job and track every appliance

Good records are what make warranty calls, repeat customers and tax time easy. From the first job:

• Write an invoice for every visit, with labor and parts on separate lines.
• Record the appliance's brand, model number and serial number. They identify the exact unit for parts and for manufacturer warranty claims.
• Note the manufacturer warranty expiry and the date your own repair warranty ends.
• Keep the parts you fitted on the record, so a callback starts with what was already replaced.
• State how to pay and by when on every invoice.

You can do this on paper to begin with: our free appliance repair invoice template has those fields and prints on one page.

8. Line up your first customers

• Create a free Google Business Profile with your service area, hours and phone number.
• Tell people who see broken appliances first: property managers, landlords, real estate agents and appliance retailers that do not offer service.
• Ask every satisfied customer for an honest review.
• Put your name and number on the vehicle and on a sticker you leave on the repaired appliance.

A one-page appliance repair business plan

You do not need a long document. Answer these on one page and revisit it every quarter:

1. Services and area: which appliances and brands, and where.
2. Customers: homeowners, landlords, property managers, or a mix.
3. Prices: diagnostic fee, labor rates, parts markup, warranty.
4. Startup costs: tools, vehicle setup, licenses, insurance deposits, initial parts.
5. Monthly costs: everything you pay whether or not the phone rings.
6. Break-even: monthly costs divided by your average profit per job gives the jobs you need each month.
7. Getting customers: the two or three channels you will actually work.
8. 90-day goals: jobs per week, reviews collected, and the next thing you will add.