How To Start A Locksmith Business
- Locksmith Industry News
- 06 Jan, 2021
Are you interested in starting your own locksmith business? You have come to the right spot! Starting a business is an exciting step in your career, but it can be easy to get overwhelmed. Below is a list of steps that will help make your locksmith business get a smooth start while meeting all of the legal requirements.
Step 1: Create A Business Plan
Creating a business plan is essential to staying organized and focused on your true goals in your business. It is a plan that only you can make, so be sure to stay true to yourself and your views for your dream business. Some important topics to include in your plan are:
Map out hard costs. Find a reliable locksmith supplier for locksmith wholesale products. Luckily, starting a locksmith business is not going to cost millions, but you will need to get the essential tools. When the time is right, you can also invest in more advanced (and expensive) tools such as automotive lock picking tools, key decoders, drill jigs, and more. You will also need a vehicle so that you can offer onsite service calls.
Map out ongoing expenses. The cost of the tools will be minimal depending on how much they are used and how well they are cared for. The service vehicle will be a bigger ongoing expense because it will need new tires, regular gas, a new part if it breaks down, etc. Additional costs include rent and utilities if you choose to have a brick and mortar location, as well as business taxes, which will be based on your income.
Establish a target market and find a location. Your locksmith business can serve a wide variety of customers. Determine if you want to specialize in a certain niche within the locksmith industry, such as offering emergency service within a set time frame, or offering onsite automotive key reprogramming. Choosing the perfect location also plays a role. Don't settle in the town that you live in just because it is the easy option. Consider the demographics of the area and what the future growth might look like.
Set your prices. After doing research, set prices for your business for the most popular requests (like replicating keys or picking a lock). You will need to factor in hard costs, what you will pay your workers, and if the prices vary for weekends and nights.
Step 2: Legal Requirements
Moving on to the legal tasks that are required when creating a new business, here are some of the most important steps to ensure your business is legitimate and ready to accept customers - and money!
Choose a business name. Brainstorm a catchy and unique name for your business and check that it is not already taken. When you decide on something, secure the business name.
Register your business. Form a legal entity and register your business. In order to be protected if your business is sued, establish a legal business entity such as a Corporation or an LLC. You will also need to register for different federal and state taxes, which you can do by applying for an EIN.
Open a bank account for your business. In order to separate your personal assets from your business assets, it is important to create a new business bank account. This will allow your house, car, and other personal expenses to be safe and protected if your company were to be sued. It is also smart to secure a credit card specifically for your business under the name of your business.
Obtain local permits and licensing. Because locksmiths go into the homes of people, some states require a background check while others require a locksmith course for training. Be sure to check with your city or county clerk's office for local licensing requirements. Failure to complete local licensing requirements may result in your business getting shut down, so these are very important to research and complete.
Step 3: Network And Marketing
Consider creating a website and social media account in order to market your business. Get the word out and create a business card that you can hand out to prospects. Network with other local companies, real estate agents, and home repair businesses so they can refer their customers to you as well.
Finally, Partner With A Reliable Wholesale Locksmith Supplier
Partnering with a wholesale locksmith supplier ensures you have access to a wide range of locksmith tools at affordable, wholesale pricing. This allows you to offer your customers more services at competitive rates, which will ultimately help you grow your business, faster! UHS Hardware is a trusted resource for all of your wholesale locksmith supplies. Check out our website for a full suite of locksmith supplies and accessories, the latest sale items, and online locksmith classes and courses.