Things to Do Before Starting a Locksmith Business
Security never goes out of style. In fact, during tough economic times, people and businesses can become even more security-conscious. This is good for locksmiths, who can benefit from both construction activity in boom times and servicing routine broken locks and lost key situations when the notoriously cyclical construction industry slows down.
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Invest in Knowledge
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You can get basic locksmithing training from a number of sources on the Internet, or you can learn it through working under an established locksmith. The locksmithing and security business has evolved tremendously in recent years. It's no longer all about replacing mechanical locks and cutting metal keys. Electronic security and access control systems are becoming more and more important. The learning curve for locksmiths is much steeper than it was just a generation ago. Possible resources for training include the Security Industry Association (see Resources).
Develop a Business Plan
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At a minimum, your business plan should address potential customers and revenue sources, startup costs, and the costs of financing if you must borrow any money. You will need to invest in equipment, keys and at least one van or work truck. If you will rely on outside capital, your business plan should "sell" your business to potential creditors or investors and explain how you will provide for the return of any money lent or a return on investment for any business partners you may have. You should also have a plan to continue operations during the early days, when your business is not yet making a profit.
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Obtain Business and Contractor's Licenses
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You will need to get a business license from your city or county government and register with your state's department of revenue. If you elect to form a limited liability company or corporation, you will also need to file articles of organization or articles of incorporation with your state's secretary of state. You can generally do so online; there is a fee for doing so, which varies by state. Additionally, if you have a corporation or LLC or plan to do any hiring, you must also obtain a taxpayer ID number from the Internal Revenue Service. Lastly, you must obtain a contractor's license from your state if you intend to do any contracting or subcontracting work. This may require you to be bonded or insured.
Learn the Relevant Laws
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Each state has unique laws governing who has a right to access property, including cars, apartments and homes. Each locksmith has a duty of care not to allow access to unauthorized persons. You do not want to be the defendant in a lawsuit accusing you of negligence in assisting an unauthorized person gain access to someone else's property.
Get Certified
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Locksmiths can get certified by the Associated Locksmiths of America by taking the proficiency registration program, or PRP, exam, which is scheduled periodically across the United States. Contact the Associated Locksmiths of America for more information (see Resources).
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References
Resources
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