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

• Shelves, bins and storage containers for locksmith van
• Locksmith supplies and tools
• Locks
• Home and garden show product discount sheets
  

References (5)

• Entrepreneur: Business Idea Center: Locksmith
• U.S. Bureau of Labor Statistics: Occupational Outlook Handbook: 2010-2011 Edition: Installation, Maintenance and Repair: Locksmith
• Associated Locksmiths of America: State Licensing or Registration Requirements
• Associated Locksmiths of America: Bond Statement
• How to Open a Locksmith Business
  
  

Resources (5)

• IRS.gov: Government Sites: State Revenue Sites
• Locksmith Directory: Locksmiths by State
• Assured Lock Tool and Supply: Locksmith Supplies
• Commercial Truck Trader: Van for Sale
• U.S. Chamber of Commerce: Chamber Directory Search Page

Photo Credits(3)

• How to Open a Locksmith Business
• How to Open a Locksmith Business
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