How to Open a Locksmith Business

Tuesday, May 7, 2013

How to Open a Locksmith Business

Locksmiths can be invaluable allies when you are locked out of your car or home. These trained professionals also install new door locksets or access systems. A locksmith frequently sells and services security-related merchandise such as safes and security systems. “Entrepreneur” magazine notes that in 2010, it is not uncommon for a locksmith to net an impressive $50,000 per year after expenses. The Bureau of Labor Statistics reports that locksmiths’ business prospects are likely to remain steady. From 2008 to 2018, the bureau projects average employment growth compared with national averages.

Step 1

Complete your licensing or registering requirements if you live in one of the 14 states as of 2010 that require this, according to the Associated Locksmiths of America.

Step 2

Obtain bonding locally through surety bonding companies or ALOA, which offers a bonding program as an optional membership benefit. If a locksmith participates in this program and is convicted of using his skills for criminal purposes, his customers receive reimbursement for goods or money lost due to the locksmith’s criminal behavior.

Step 3

Select a business structure based on advice from a certified public accountant familiar with service businesses. Business structures include sole proprietorships, limited liability companies and S corporations.

Step 4

Consult with a commercial insurance agent regarding liability insurance.

Step 5

Visit your city or county clerk’s office for a business license and other needed permits. Contact your state Department of Revenue about your need for a sales tax license.

Step 6

Lease a small business office. Find an office easily accessed by main roads, with secure parking for your locksmith van, storage space for your locksmith equipment and display space for your safes. Work with a signmaker to create professional-looking building signage.

Step 7

Survey your regional locksmith competition to determine your hours of operation. Locksmith businesses cater to panicked customers locked out of a house or car in late evening and early morning hours, and customers want a locksmith who quickly responds to a service call. Visit other locksmiths in your city and surrounding towns and gather information on their services and hours of operation.

Step 8

Purchase your locksmith equipment and supplies. Compile a list of items such as different types of locks, key creation supplies and general locksmith tools. Order varied access control systems and security camera assemblies. Stock a line of storage safes as well. Ask the supplier for quantity discounts on similar items and request package pricing on the overall order.

Step 9

Purchase a used commercial van in good to excellent condition, with opaque windows to obscure your locksmith supplies. Outfit the van with shelves, bins and other storage containers. Stock the van with commonly used supplies and tools, including multiples of the most frequently used locks. Ask your signage company to turn your van into a mobile advertising venue, with graphics and lettering that match your building sign.

Step 10

Reach the consumer market with small ads in a newspaper business directory that run for months at a time. These ads help to keep your company in front of consumers in anticipation of locksmith service needs. Market your safes and home security systems by displaying them at regional home and garden shows. Offer discounts on these items if purchased at the home show.

Step 11

Promote your service to businesses by joining your city’s Chamber of Commerce. Visit each member business and perform a free business security audit. Identify problems such as undependable door locks or security risks resulting from unrestricted access to sensitive areas. Offer member discounts on security systems, access systems and office safes. Locate your chamber through the U.S. Chamber of Commerce.

Things Needed

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5 comments:

UnknownMay 15, 2013 at 1:49 AM
How to open locksmith business, thanks for sharing this post, really very helpful for my bowie locksmith. Keep sharing the same.
ReplyDelete
Replies
UnknownMay 16, 2013 at 12:24 PM
You are always Welcome Sir, and thanks a lot to visit my site.
ReplyDelete
Replies
nutrendmediaMay 16, 2013 at 4:28 PM
This post is really what I'm looking for it has full of information about locksmith.Thanks for sharing this.

Locksmith Hindmarsh
ReplyDelete
Replies
AnonymousJuly 4, 2013 at 6:07 PM
What a nice blog.. It really gives appropriate step by step information to become a successful Locksmith.

Locksmith West Palm Beach fl
ReplyDelete
Replies
AnonymousNovember 25, 2013 at 10:01 PM
How do I find a replacement key to my grandmother's antique dresser?
Can a locksmith fashion me a new key?

24hr locksmith exeter
ReplyDelete
Replies

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Easy Tips and Ideas to Start Business

Although anyone can start a business, many people fail because of a bad product or improper research. If you want to start your own business, you can improve your chances for success before you even begin. In order to make your business successful, start strong and make sure that your idea will hold out for the long haul.

Have a Good Product

Ensure that you plan to sell something useful. Although you may think that your product is important or special, that doesn't mean the general public will agree. Ask friends, family and strangers what they think of your product. If they don't seem that interested, ask them why. With their suggestions, you can either improve the product or scrap the idea completely. According to Brad Sugars of Entrepreneur magazine, most small businesses fail because they sold a product that didn't have an adequate market. This also applies to small businesses that provide a service. A lawn-care business might be useful for part of the year in a northern state, but it is in-demand year-round in the south. Consider whether people will actually want to use your service and get constructive advice from those not afraid to give their opinion.

Research Local Businesses

Research local companies before starting up your own business. This will not only give you an idea of the amount of competition you will have, but it will also help you price your product or service. If you're looking to start a wedding photography business, you may find during your research that the market is over-saturated in your area. If not over-saturated, you should contact each business and ask them for a price list. Alter your prices so you can stay competitive with the competition in town. Researching similar local businesses will also help you decide where to locate your business location. Try not to start up a store or office close to another business of your type. If your small business is located away from similar business types, this will cause locals to choose you over businesses that are farther away from where they live.

Get Professional Advice

You may know someone who has started their own successful business. Ask him for advice and listen to his stories of how he started his company. You may gain useful advice on the good and bad ways to start a business. Local entrepreneurs can also introduce you to local product providers or advertisers that you may not have met without their help. Accept any advice with open arms, especially if the advice is coming from someone successful in the area.

How to Calculate Business Start Up Costs

Starting a business in no easy endeavor. It takes a great deal of research, perseverance and hard work. While sweat equity will make your small business more successful, you will most likely need real capital to get the business started. Before you start raising capital and/or investing your own funds, the first thing you need to do is determine the total start-up costs.

Step 1

Determine your costs of sales. For most small businesses this means inventory, the cost of raw materials, manufacturing equipment, shipping, packaging, and warehousing. However, not all businesses sell products. In this case, the cost of sales is primarily the direct labor involved in making the sale. For example, to open a small shoe business entails purchasing enough inventory ($10,000) to stock the store.

Step 2

Determine professional fees. Planning your business structure, i.e., limited liability corporation or general partnership, means hiring an attorney. There may also be the need to pay an attorney for help with establishing trademarks, copyrights, and patents. In this scenario, that puts total professional fees at an estimated $20,000.

Step 3

Determine technology costs. Technology can greatly reduce the cost of labor for small business if used effectively. Most small businesses require computers, printers, cell phones, website development, Internet access, software applications, information security, data storage, and outsourced information technology (IT) consulting. If the cost of technology is $10,000 to start, add an additional $5,000 a year for maintenance (hint: maintenance is not included in start-up costs).

Step 4

Determine administrative costs. This varies with business types and may include items such as business insurance, office supplies, product packaging, parking, rent, express shipping, desks, chairs, fax machines, phones, or anything else necessary to operate the business daily. A good estimate for start-up administrative costs would be $5,000 for the first six months.

Step 5

Determine initial sales and marketing costs. Now that you have your product, you need to let folks know about it. Sales and marketing costs generally include marketing materials for presentations, printing stationery, business cards, advertising, trade show events, and public relations. These initial sales and marketing costs can add up to $3,000.

Step 6

Determine the wages and benefits needed to secure a staff. This includes employee salaries, benefits, workers compensation, and payroll taxes. Let's put the cost of wages and benefits estimated at $20,000 for the first three months of business.

Step 7

Add all costs associated with starting the business for a total. Be sure to only include business start-up costs that will be incurred in the first three to six months of operations. For this example, the calculation is: $10,000 + $20,000 + $10,000 + $5,000 + $3,000 + $20,000 = $68,000.

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Tuesday, May 7, 2013