How to Start a Custom Phone Case Business

Start a custom phone case business by following these 10 steps:

1. Plan your Custom Phone Case Business
2. Form your Custom Phone Case Business into a Legal Entity
3. Register your Custom Phone Case Business for Taxes
4. Open a Business Bank Account & Credit Card
5. Set up Accounting for your Custom Phone Case Business
6. Get the Necessary Permits & Licenses for your Custom Phone Case Business
7. Get Custom Phone Case Business Insurance
8. Define your Custom Phone Case Business Brand
9. Create your Custom Phone Case Business Website
10. Set up your Business Phone System

We have put together this simple guide to starting your custom phone case business. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Exploring your options? Check out other small business ideas.

STEP 1: Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

• What will you name your business?
• What are the startup and ongoing costs?
• Who is your target market?
• How much can you charge customers?

Luckily we have done a lot of this research for you.

What will you name your business?

Choosing the right name is important and challenging. If you don’t already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our Custom Phone Case Business Name Generator

If you operate a sole proprietorship, you might want to operate under a business name other than your own name. Visit our DBA guide to learn more.

When registering a business name, we recommend researching your business name by checking:

• Your state's business records
• Federal and state trademark records
• Social media platforms
• Web domain availability.

It's very important to secure your domain name before someone else does.

What are the costs involved in opening a custom phone case business?

Some states may require a license to start a custom phone case business, with fees varying per state. If you’re looking to just get your foot in the door, you can purchase a start-up kit for around $3,500. These kits come with heating presses (about the size of a regular printer) that can imprint the design you want from a photo or a drawing. Otherwise, you’ll need around $30,000 or so if you’re planning to perform large-scale penetration of the market. You may use that money to partner with a major factory, or to put a down payment on a storefront.

What are the ongoing expenses for a custom phone case business?

If the cases are dependent on designs you created yourself, your expenses can be kept fairly low. Regardless, you should budget for the following:

• Upkeep and maintenance of machinery
• Market research
• Online sales fees (e.g., Ebay’s cut)
• Design production
• Booth/storefront supplies and fees

Who is the target market?

Your ideal customer is a person looking to invest in a product that will protect their device against damage. Those who just want a flashy design may not be willing to pay as much, making the profit margins more difficult to manage. From there, you can start identifying your demographics. For example, if you want to make superhero cases, then your ideal customers may be in high school or college. If you’re making more practical, standard cases, your ideal customer will be older professionals. Luxury cases, like those encrusted with genuine sapphires or rubies, will only be sold to those with enough disposable income. There are lucrative opportunities in every demographic, so long as the customer understands the value of their phone.

How does a custom phone case business make money?

Custom phone cases make money by selling phone cases to customers for a profit. Maximizing profit involves reframing how customers see cases. It’s not unreasonable to ask a customer to pay $40 to protect their $700 iPhone. High quality cases can command a premium profit margin (up to 600%).

How much can you charge customers?

The market has made it easy for you to charge large profit margins, but it will depend on the type of materials you use and the phone cases you manufacture. Battery cases will cost a lot more to produce than a slim case. As mentioned though, in-demand custom designs can be sold at 600% profit margin. The perceived market value of phone cases is high due to the high cost of the devices these cases are protecting. If a phone case can save a customer from an expensive replacement, then it’s generally worth it to pay the premium for a durable case.

How much profit can a custom phone case business make?

This is one of the most lucrative fields you can currently get into, so profits can be extremely high. If you can sell 1,000 cases a year at $60 at a 400% markup, then you’d have around $45,000 leftover to keep or reinvest in the business.

How can you make your business more profitable?

Custom phone case companies can expand to make laptop or tablet cases, gaming skins, or general phone accessories. For example, you can take generic phone chargers and put your own creative spin on them by providing custom wrapping.

STEP 2: Form a legal entity

The most common business structure types are the sole proprietorship, partnership, limited liability company (LLC), and corporation.

Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your custom phone case business is sued.

You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It's really easy and free!

There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil.

Open a business bank account

Besides being a requirement when applying for business loans, opening a business bank account:

• Separates your personal assets from your company's assets, which is necessary for personal asset protection.
• Makes accounting and tax filing easier.

Get a business credit card

Getting a business credit card helps you:

• Separate personal and business expenses by putting your business' expenses all in one place.
• Build your company's credit history, which can be useful to raise money later on.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

Make LLC accounting easy with our LLC Expenses Cheat Sheet.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

State & Local Business Licensing Requirements

Certain state permits and licenses may be needed to operate a custom phone case business. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits.

STEP 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance. This is the most common coverage that small businesses need, so it’s a great place to start for your business.

Another notable insurance policy that many businesses need is Workers’ Compensation Insurance. If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.

Is this Business Right For You?

This business is good for people who are both creative and practical. There are an infinite amount of design options for phone cases, but some will be more popular (and profitable) than others. A good business owner can both narrow down the choices, and predict trends to gain a market edge. Owners will also need some customer service and advertising experience as well.

What happens during a typical day at a custom phone case business?

Business owners will need to oversee the manufacturing process, which may or may not include other employees.

• Conducting market research on what’s popular
• Developing relationships with retail owners
• Managing online listings
• Advertising and marketing cases either online or in person
• Attending events to promote custom designs
• Providing or creating new artwork to supply to a manufacturer

What are some skills and experiences that will help you build a successful custom phone case business?

Highly artistic people will do well in this business, but you’ll also need some people skills and sales skills to service customers effectively — even if you only work online. Owners need to build relationships through the sites they choose to work with, as well as a reputation for quality designs at a fair price amongst the public.  

What is the growth potential for a custom phone case business?

Custom phone cases will always be needed as new phone sizes are debuted, and as old cases start to wear out. However, you will face some saturation in the market as there are many different manufacturers in the phone case industry.