Location, is it important?

[Tank42]

I'm new to Locksmithing and have yet to set up my own shop, thou I've had two locksmiths encourage me to do so, But I'm curious about how important location is as far as the profession is concerned. I've seen post from people living is small towns and from people in large towns and I've seen posts from people who are only Mobil.
So my question is; Is location of a Locksmith Shop important? Does a Location on a busy intersection mean more clients and thus more money in items sold or should one locate away from the busy intersection thus saving money on Rent?

The shop I would like to open will have security items to sell such as locks, cameras, lighting, and alarms to sell as well as install. but I will also be involved in Gunsmithing, and small engine repair. I'd also like to offer architectural and engineering drawings. But before one starts information is the key. So is Location, Location, Location, the Key or will advertising, advertising, advertising be the key??

If I have missed this topic and its located somewhere else please let me know.

Thank you for all your help and knowledge in advance.

[GWiens2001]

In any business, location is very important. Even if you are mobile, you want to be a reasonable distance from your target clientele. A good business in a poor location is likely to fail. That said, a poorly run business in an outstanding location will also likely fail.

There are exceptions, but starting any business with a fixed location, especially with such varied services as you suggest, will be tough enough without making it tougher. But do not set your business up in a location you can not afford, either!

Who are your desired clients? What type of locksmithing? Who are the alarms you intend to sell designed for? What kind of small engines do you wish to work on?

Sounds almost like you are intending a handyman business with a fixed location.

I wish you the very best of luck in starting your business! It will help if you do some additional homework on types of businesses in an area, and what is needed in those areas. Undoubtedly you are already doing that leg work.

Gordon

[Sinifar]

Not to rain on your parade, but have you considered the total EVERYTHING of running a business?

Do you have enough cash ON HAND for at least SIX months or more of operations covering EVERYTHING from rent to inventory to salaries and wages of your employees to taxes?? Can you handle employees? Do you know the IRS filing requirements and do you have the necessary paperwork on hand to file 940 / 941 forms? What about state forms? Business tax forms, I am sure Ohio has a sales tax so you need sales tax numbers. City licenses? AN Occupancy permit for the location? Not all businesses can operate out of just any old store front.

Accounting is the score card of business. How well can you handle your books? Do you balance your check book every month or let it slide as that is too complex? What about employee taxes? Can you do the withholding and Medicare part? What about your state unemployment and working man's comp taxes? You did remember to contact the State unemployment and working mans comp people didn't you?

There is rent, insurance, store fixtures, tools and other equipment. Inventory can make or break your storefront. Having the stuff ready to sell, and not have the client await for delivery can be a deal maker or breaker.

Beyond that - are you properly trained to do the intended business? Can you handle anything which comes in the door? People expect if you hold yourself out as a locksmith, or small engine repair man you can fix or repair or replace whatever they come in with.

How about marketing? Are you familiar with displays? How to properly displaying merchandise so it will "sell"? What about impulse sales? Will you have working models or the actual equipment set up to show how it works? Mounted locks, working alarm displays go a long way in showing how easy it is to use the product, and if it will fulfill the needs of the client. Out front in "consumer packaging" will move a lot more product than just a opened package with the product sitting on the shelf and you will be able to use the manufacturer's own selling points on the packaging.

Then we get into advertising. How well can you make up any ad? Do you understand the principles of advertising? Where will your advertising dollars work the best and go the furthest? Yellow Pages?

Speaking of taxes - you will need a business everything separate from the personal. From phone numbers to vehicles to web accounts. If you don't have business credit cards the IRS will dis allow any deductions.

I only mention taxes so heavily because that is where most business fall down and get strangled by the government red tape and all the small things they did not even consider when they set up the whole shebang in the first place.

If this seems a "downer" -- WOULD you rather have this information to think about and get your ducks in the right rows before you go into business? OR would you rather have the 500 pound gorilla land on you after the fact and now what are you going to do?

45 years in business and we covered the while thing front the start. If you are going to go into business, be business like and do it right.

OR

DON'T DO IT AT ALL -- you will have lost a ton of money and have legal problems beyond your wildest imagination on the worst case of steroids you could ever think.

In the end, location is nice, but there is so much more to think about, cover, consider, and get ready before you open ANY business. 95 out of 100 businesses fail within the first two years. Ever wonder why?

SInifar

[Tank42]

In any business, location is very important. Even if you are mobile, you want to be a reasonable distance from your target clientele. A good business in a poor location is likely to fail. That said, a poorly run business in an outstanding location will also likely fail.

There are exceptions, but starting any business with a fixed location, especially with such varied services as you suggest, will be tough enough without making it tougher. But do not set your business up in a location you can not afford, either!

Who are your desired clients? What type of locksmithing? Who are the alarms you intend to sell designed for? What kind of small engines do you wish to work on?

Sounds almost like you are intending a handyman business with a fixed location.

I wish you the very best of luck in starting your business! It will help if you do some additional homework on types of businesses in an area, and what is needed in those areas. Undoubtedly you are already doing that leg work.

Gordon

Who are your desired clients? What type of locksmithing? Who are the alarms you intend to sell designed for? What kind of small engines do you wish to work on?

My desired clients are your average hard working American. Busy, hardworking, slightly over worked, looking for a place where you can get many things done in one place kinda client.

Residential, Commercial, Auto, maby safe opening but after a few years haven't gotten it down yet. Still working on that part. And I don't want to do any drilling. Going to keep it as legit as possible. I've got paper work and books on drilling but I think its more impressive if you don't need to drill. Maybe I'm dreaming on this part but if I can't learn the art of manipulation then I won't advertise for that area.

My alarms are intended as an addition to ADT. Many Homes I've researched buy the cheapest ADT alarm system for a false sense of security, only to have someone break in and steel everything of value. Thou ADT provides a great service, it takes five minutes or less to take all your valuables and around ten to fifteen minutes for the police to show up. And with ADT your paying a min of 1080 for three years of service. With my alarm system you own it. It wont call the cops; however after studying the phycology of your average residential burglar they don't stick around when a 180db alarm is going off, lights are flashing, and cameras are on. their are always people in your neighborhood who are home so this is an attention getter. Their is much I could go on and on about this; however i'm getting off topic. People in suburb areas are more or less my main target.

Small engines, gas powered air compressors, back up generators, ATVs, Roto-tillers,

And since the area I'm living in is a gun loving area many of the gunsmiths are backed up for months. So I've heard of people sending their business else where, even shiping it to another person several states away. Their is one Locksmith in Northern Kentucky who is doing similar. He's been in business for over twenty years.
I'm not saying I'm an expert in every field however I'm not completely ignorant either. And from what I've read over and over again, If yu don't know what your doing send it to some one else. The only area where my experience is some what limited is the Locksmithing. Only been doing it for a few years. I plan on making friends sending them business that I question and really giving this thing a try for the LONG RUN..

Maybe I'm out of line with that last statement but from the two locksmiths who are trying to help me out, it seems like you guys try to help each other.

Thanks for the questions and the response Gordon,

Any comments would be appreciated.

[Tank42]

Not to rain on your parade, but have you considered the total EVERYTHING of running a business?

Do you have enough cash ON HAND for at least SIX months or more of operations covering EVERYTHING from rent to inventory to salaries and wages of your employees to taxes?? Can you handle employees? Do you know the IRS filing requirements and do you have the necessary paperwork on hand to file 940 / 941 forms? What about state forms? Business tax forms, I am sure Ohio has a sales tax so you need sales tax numbers. City licenses? AN Occupancy permit for the location? Not all businesses can operate out of just any old store front.

Accounting is the score card of business. How well can you handle your books? Do you balance your check book every month or let it slide as that is too complex? What about employee taxes? Can you do the withholding and Medicare part? What about your state unemployment and working man's comp taxes? You did remember to contact the State unemployment and working mans comp people didn't you?

There is rent, insurance, store fixtures, tools and other equipment. Inventory can make or break your storefront. Having the stuff ready to sell, and not have the client await for delivery can be a deal maker or breaker.

Beyond that - are you properly trained to do the intended business? Can you handle anything which comes in the door? People expect if you hold yourself out as a locksmith, or small engine repair man you can fix or repair or replace whatever they come in with.

How about marketing? Are you familiar with displays? How to properly displaying merchandise so it will "sell"? What about impulse sales? Will you have working models or the actual equipment set up to show how it works? Mounted locks, working alarm displays go a long way in showing how easy it is to use the product, and if it will fulfill the needs of the client. Out front in "consumer packaging" will move a lot more product than just a opened package with the product sitting on the shelf and you will be able to use the manufacturer's own selling points on the packaging.

Then we get into advertising. How well can you make up any ad? Do you understand the principles of advertising? Where will your advertising dollars work the best and go the furthest? Yellow Pages?

Speaking of taxes - you will need a business everything separate from the personal. From phone numbers to vehicles to web accounts. If you don't have business credit cards the IRS will dis allow any deductions.

I only mention taxes so heavily because that is where most business fall down and get strangled by the government red tape and all the small things they did not even consider when they set up the whole shebang in the first place.

If this seems a "downer" -- WOULD you rather have this information to think about and get your ducks in the right rows before you go into business? OR would you rather have the 500 pound gorilla land on you after the fact and now what are you going to do?

45 years in business and we covered the while thing front the start. If you are going to go into business, be business like and do it right.

OR

DON'T DO IT AT ALL -- you will have lost a ton of money and have legal problems beyond your wildest imagination on the worst case of steroids you could ever think.

In the end, location is nice, but there is so much more to think about, cover, consider, and get ready before you open ANY business. 95 out of 100 businesses fail within the first two years. Ever wonder why?

SInifar

SInifar, you bring up a lot of really great points, however; it seems you've already assumed I'm an ignorant fool out to fall on my face.

My credentials I started up a small body shop/Mechanics shop when I was 18. It did well but I wanted an office job and gave it to my friend. I went for an Architectural Degree and sadly the housing market fell. Thou I'm still trying to find my nitch in Residential Design. I started up another business doing Roofing, Remodeling, and Flooring. The first year we did over 100,000 is sales. the second years more than the first and so on. However my partner got money hungry and long story short I gave it up. He's still going strong after seven years. I was a Mechanic from the time of 15 till 20. I was also ASE certified. I have been around guns most of my life, I was is sales for over five years. I also managed ten employees. I got my training in Locksmith though Folley-Bellsaw a few years ago and have been doing research ever since along with practicing the art. Thou you can't take off running a full time business like they would have you believe; I have learned much from the courses. I also have a BA in Theology. I have a library with over two thousand books with over fifty of them being locksmith, gunsmith, related. I know that's not much but its a start in a new direction.

Thou you bring up some very very valuable points, I am hoping to obtain more information on the Topic of Location. With your 42 years of experience I'm sure their are pros and cons involved when it came to the Location of your business. I would like any and all input you have about location, pros, cons, rent, buy, traffic, busy, slow, so on. With 42 years things chance. Help a young man out with a subject you can't find in books. ie experience.

[GWiens2001]

Sinifar did try. All of us who responded tried. It is experience you can't learn in books that makes us ask the questions a give the advice we tried to give.

Wish you luck.

Gordon

[Tank42]

Sinifar did try. All of us who responded tried. It is experience you can't learn in books that makes us ask the questions a give the advice we tried to give.

Wish you luck.

Gordon

So in other words I'm asking the wrong question. I thought it was a fair question that I hadn't seen any one ask yet. Guess I was wrong. LOL

Thanks for your time. I'll just have to come up with better questions then.

Take care Gordon.

[GWiens2001]

Sometimes it is best to answer a question with a question, or with a series of them. It is not that you did not ask the correct question, but that our answers only give your more questions.

The questions I was asking about your target clientele was to help you determine what is the correct location. What is right for one business can be completely wrong for a different type of business. And knowing your customer base, and where they are, can also help. If we have more information, we can help more. The more you know, the more you can tell us. The more you tell us, the more tailored our advice can be. But also, the more homework you do now, the better you will understand the needs of your customers, and more successful your business will be.

All the tips, advise, and questions asked above, especially by Sinifar, are questions you need to know the answers to off the top of your head if you want to have a business that lasts. His skill and experience is vast - far surpassing my experience. I can say that have seen many people start a business and lose every penny they had, and those of investors, because they did not know what Sinifar does.

Gordon

[cledry]

One often overlooked aspect with regards to location is how close you are to suppliers. For example we are 5 minutes away from Clark Anixter, 5 minutes away from CRL, 5 minutes away from Republic Doors. About 25 minutes away from IDN & Mills & Nebraska, 30 minutes from Blue Dog, Midwest Wholesale, Hayman Safe and Berg. We have an old fashioned real hardware store a block away, a metals supplier about 4 blocks away.

All of this enables us to stock less but still generally offer the parts withing an hour. For example today I had a job that needed 36 National cam locks of a particular length. I had 6 in stock but was able to do the job because Clark had them. Yesterday we needed 24 American 700 padlocks, we had 12, so we picked up the rest and didn't lose a sale. We don't generally even need to stock pricier locks such as Trilogy locks, or Kabas because our suppliers stock them.

[bjornnrojb]

Obviously if you have a shop you want to be close to your clientèle's neighborhood, and you want to be in a high traffic area because people want to get their keys copied without having to repark their car. You want your sign for your shop to do all of your advertising. If you are covering a 20 mile radius you must be at a nexus of highways to make it worth your while. I am near both major north-south corridors in Seattle and can be anywhere in fifteen minutes if traffic isn't terrible. One thing you should consider is offering to pay rent on a kiosk in a store or in a store's parking lot. Sounds like you are trying to be a jack of all trades, you might make more money off of espresso than all of this other stuff you want to do. Maybe you should get a big espresso stand and do key copying in one corner of it.

[bjornnrojb]

Also check into whether or not your state requires you to be licensed as an electrician to install alarms. Here in WA you have to work under somebody for two years to even attempt to get a low level electrician's license, even if you have been installing alarms for twenty years before this rule passed. If you get caught running wire without getting an inspector out to sign off on it all you are in deep caca.

[Tank42]

Great educational process thus far. Not sure if I like the term handyman thou. I want to be busy enough all the time to justify leaving my job. My dad suggested the things I enjoy doing. He's looking to retire and we both thought he could run the store while I do the heavier lifting. Maybe it is a bit much, but I figure if it takes off and I get to busy, that's when I'll hire a person for a specific job.
Don't know.

Back to topic. I'll keep the highway and suppliers in mind. Two things I never gave a second of my attention. Thanks all.

[cledry]

I would concentrate on one area of your business and see if that keeps you busy first. A jack of all trades is often seen as the master of none, hence the saying. This may not be true, but the customer often sees things this way. They often prefer to deal with a specialist. This is why some locksmiths even specialize within the field. There are guys that only do automotive, guys that only do safes, some only do commercial. They are seen as experts in their field and if they can make a living from it must be good at what they do, that is the logic of the public perception.

People go to Home Depot and buy locks, but they go to a locksmith for service and expertise and buy locks. My former boss RIP used to have a quip when customers would come in and say they have been to Fred's Hardware Store, Home Depot, Walmart and the duplicate keys didn't work but the copies you made all worked great. He would say, "that's what we do, we don't sell paint and lawn mowers."