Are you looking to have a business with limitless profit potential and also in constant demand? Starting a locksmith business will be a perfect idea. With a locksmith business, you have a variety of niches set before you – ranging from automotive to residential installations. All you need is the right tools and the mechanical know-how, and you will be making good money on daily basis. Plus, you can also start this type of business on a shoestring budget.
In this post, we have provided all the information you need to start and run your own locksmiths business. So, just follow the steps and you will be good to go.
Table of Contents
Tips for Starting a Locksmith Business
Let’s learn about “How To Start A Locksmith Business” in detail:
#1: Choose Your Preferred Niche
If your desire has always been to spend your days on ignition switch and cylinder repairs, then you should be looking for starting a car locksmith business. Specializing in one area of the industry will help you grow the business quickly and help reduce the amount you spend on buying tools and equipment. You will have enough to invest in buying only quality tools for the business.
With a locksmith business, there are majorly three niches you can choose from. These include:
- Automotive: locked-in drivers or forgotten car keys
- Residential: homes and residential properties
- Commercial: businesses, offices, and industrial units
#2: Research the Market
Before starting a locksmith business, it is important that you know what’s in the business for you in your area. That means you will need to do proper research on the locksmith market in your area. This should even determine the kind of niche you choose in the first place. You want to be sure there is enough demand for such services in your area.
If you live in a city where there is a high concentration of shopping malls and industrial parks around, you might want to consider going into car and industrial locksmithing. And if you look around you and notice your area is more of a bedroom community, going into residential locksmithing will make sense.
Who is the target market for a locksmith business?
In the course of researching your market, you will get to know who your target customers are. Just one locksmith business can market to different types of customers. This could vary from homeowners to commercial property owners and the general public who drive cars.
What education and skills do you need to start a locksmith business?
You don’t need any special or 4-year degree to start a locksmith business. But you will definitely need certain skills and experiences to make headway in the field. Depending on your state, you might be required to get a basic locksmith education foundation in the form of courses. You can also pursue an apprenticeship to get valuable in-the-filed experience about the business. You might need to spend about a year learning how to become a professional locksmith.
Apart from the education you need, you will also need certain skills such as mechanical knowledge of how devices function and how to fix them. You will need problem-solving skills and marketing skills to grow the business to a successful level without getting frustrated by competition.
How much do you need to start a locksmith business?
This is another question you will need to answer in the course of your research. Well, starting a locksmith business is relatively affordable, especially if you have your own car to use for the business. You may not need more than $2000 to $4000 to get things started. But if you don’t have a car, you should budget spending around $10,000 to start the business.
Some areas where the bulk of the money will likely go are:
- Business vehicle
- Locksmith tools and equipment
- Inventories
- Vehicle signage
- Uniforms
#3: Write a Solid Business Plan for the Business
After sorting out the necessary background knowledge you need to start the business, next thing is to sit down and write a good business plan for the business. Your business plan will not only come in handy when looking to obtain a loan from the bank but will serve as a road map for you in the business. That means, in no way should you consider starting a locksmith business without first having a business plan.
Your business plan should include your goals, market research, company vision, the type of service you will be offering, your target customers, marketing strategy, and financing source.
If you can’t write a plan for yourself, you can spare about a hundred dollars to hire a writer to do that for you.
#4: Select Location
Many locksmiths start and run their business right from their garage or vehicles to save on rent costs. If you are starting on a shoestring budget, you might consider this option too. However, as the business grows and expands, you will need to rent a space, depending on the model of your business. Many mobile locksmiths operate their business from their vehicles even after having started the business many years ago.
#5: Name and Register Your Locksmith Business
Naming your business is one aspect of the business you need to take seriously. It is what helps you create the perfect impression on your customers and help you build a strong brand down the line. So think of a creative name – one that is also relevant to the industry and niche. There are some tools out there that can help you come up with a perfect name for your locksmith business. However, make sure the name you choose is not already registered by another company.
#6: Sort Out The Paper Work
You will need to get the proper license and permits to run the business legally in your state. Licensing requirements, however, differ from state to state. So look up your local regulations for you’re the state you wish to open the business. Get a business license and form a business entity such as sole proprietorship, partnership, LLC, or corporate entity.
To also protect your business and yourself from costly lawsuits in case of a lock hardware malfunction or botched installation, you will need to get insurance for the business.
#7: Get the Necessary Tools and Equipment
The tools you will need will depend on the niche you choose. However, the basic tools you will need include screwdrivers and drills. You will also need some more specialized locksmith tools like rekeying kits, duplicators, a key extractor, key cutters, plug spinner, hammers, lock pick set, and lockout kits. Also, be sure to stock up on some inventories like key blanks, deadlocks, faceplates, and padlocks. You can probably get started for less than $1000 in hardware.
#8: Network and Advertise Your Locksmith Business
Although this is coming last on the list, it is a very important aspect of building a successful locksmith business. You will need to get the word out that your company offers some amazing services that everyone needs. So consider using traditional means such as creating business cards, posters, and social media to promote the business.
In addition, consider networking within your industry. What about getting in good with the local police, security companies, or fire department? That will put you in the position of being called first when they need a locksmith.
Take things a step further by creating a website for the business and running some paid advertisements. You can use such marketplaces as Angie’s List, Homeadvisor, and Thumbtack to advertise your locksmith business. Millions of customers flock to those sites daily to look for locksmiths for their homes, offices, and cars.