M E Duffels looking for good 2 in 1 and curtain picks

[UWSDWF]

Hi i was just wondering what you meant by overheads? If my business was to be an emergency lock opening business based from home, then surely the only overheads i would have would be the cost of the tools which i have already stated I would be buying piece by piece.

Now I have argued this from both stand points and surely you cannot be serious about starting any business without understanding overheads.

Overhead is the recurring expenses which are related to the operation of a business, or a device, component, piece of equipment or facility.

Based from home: the overheads here would be the cost of morgage/rent/lease, the heating, hydro, water.
and even though you have stated that the tools are being purchased piece by piece, you should understand, that it is unpratical to operate a business without that the appropriate equipment that is nessicary to commence everyday business.
Also other overheads that you may run in to, or should, would be the cost of being bonded, limited liability insurance and a business licence.

Other things you may want to take into consideration would be coming up with an over all business plan and implementing it with the help/guidence of a financial/business planner aka an accountant (which would be another practical overhead). Also if you do any shop work in your dwelling is it zoned for commercial activities. Is your house insured for business activities ie; if your house is robbed and your tools are stolen will your average home insurance will not cover for loss of time.

there is much much much more to consider before even begining to consider opening your doors for business.

but hey I'm only talking from a practical business standpoint not whether you're qualified to be a locksmith

[natastna2]

If i am operating from home and just doing emergency call outs then i have no overheads, liability insurance isnt much neither is business registration, theres the taz but that shouldnt be that much off the top. I think you may have not read my previous posts, as I say I'm not planning on opening up a shop I'm only planning on opening interior student door locks and possibly exterior once I have the nexessary experience. I really can't see that even at 15 pound a call out i'd be making a loss since i don't really expect any overheads.

[UWSDWF]

If i am operating from home and just doing emergency call outs then i have no overheads, liability insurance isnt much neither is business registration, theres the taz but that shouldnt be that much off the top. I think you may have not read my previous posts, as I say I'm not planning on opening up a shop I'm only planning on opening interior student door locks and possibly exterior once I have the nexessary experience. I really can't see that even at 15 pound a call out i'd be making a loss since i don't really expect any overheads.

again I re-iterate my point about insurance, also you say "interior inside doors" which would indicate that you'd be working in a dormatory. I would suggest that you get approval from the schools administration because there could already be a service contract at the site and your work could be in breach of said contract which would there by leave you liable for damages or a possible lawsuit from the current contract holder.

[Rockford]

How are you going to advertise ? This costs money, and is an overhead.

How are you going to get to a job ? Figure in vehicle/fuel/bus money/parking, then there is the insurance if you are driving. Again overheads. If travelling by foot/bus - will a customer wait for you to eventually arrive ?

Insurance for your tools/stock ? An overhead.

Are you going to have business cards, pre-printed stationery, invoices ? All overheads.

There are loads more, but just figuring in the above, you cannot expect a profit from charging £15. You'd be better off stacking shelfs.

[Tyler Durden]

Your first post says you have a limited company. A few posts later you say you're an interior door opener????
People here are trying to help you.
If you seriously think you can sustian a locksmith business by opening interior doors you sadly mistaken. I open all types of doors/locks like every other locksmith and i doubt my business would survive on lock out calls alone,and definately not on £15.

[toomush2drink]

By overheads he means hes not giving out receipts (stationary is an overhead) and not declaring hes using the car (thus not insured) for business use or gets the bus for free. £15 a job means you have to do 7 jobs a day to get just over £100 then deduct your tax and ni to get about £75 a day (i assume you dont use an accountant as its an overhead). So just go over it again you need 7 jobs a day to earn approx 25k over a 48 week period.

If you can get 7 jobs a day with no overheads then reactfast better watch out................hmmm yeah right

So 7 jobs a day and they are only easy to open internal door cylinders, can anyone else see any flaws in this business.

[Bump]

Just been away for a while came back not expecting many replies but i c you've all been busy, I object to Bump's comments about tradign standards blah blah blah, if you'd actually read my post instead of getting your nickers in twist i'm advertising as a students' locksmith, i.e a locksmith who opens the interior doors of student housing. I rarely come across lever locks in this situation and find students and landlords also rarely want to spend a minumum call out fee of 50 quid just to have someone open an easy lock. Bump if your not getting enough money out of it maybe you shoudl just listen to waht people are saying instead of just getting angry because someone is using their initative. I'm not a driller and will only be using NDE, i also havea no fix no fee policy which includes teh callout. I really can't see any problems with this, just because you've spent 50 grand to set up a shat business doesn't mean you ahev to get angry when someoen else sets something up. Sorry to be rude but your comments strike me as both rude and elitist and I was under the impression this forum was here in order to share information, not to hoard it. I'll let you all know how it goes. pS i am fully intending to take the information off the customer before turning up and if its a job i dont think i can do then i will pass it on to a locksmith i like, probably someone the exact opposite of you.

Dear natastna2

Thank you for your erudite reply! Its clear that we have something in common, it seems we both left University without finishing our eductaion; Chemistry was my downfall...........Yours?

I really don't care about mates doing favours, it's what I would do, but that's not what your doing...a students' or a student's or a student locksmith? In the meantime Landlords who are raking in the rent and should be paying the full rate for a Locksmith are taking advantage of someone doing the job for beer money; and you think thats right?

I accept that everyone has to start somewhere but most of us don't ask for a meat sandwich in the Lions Den!

By the way, what are you going to do when you arrive and its not just a lockout; it's freezing cold and the customer has got a broken lock?
"Sorry mate I only pick internal doors for £15l You'll have to get a proper Locksmith in the replace it!"

If I was that customer I think I might be just as tactful and polite as you have been.

I'm done with this thread, its going nowhere! Best of luck for the future!

[SEVEN]

natastna2 at 15 pound an opening I think you will make under 2 pound profit per job good luck.Tools,transport,insurance and stock.All the best I hope you succeed and prove us all wrong just think hard and take on board what others have said.

[natastna2]

Ill just repeat what ive said for quite a while now, I don't have any overheads as i will be servicing a local area with such a high population of students that i should be able to walk to most jobs. I didn't fail to get my education I have a degree in english linguistics and sociology from Sheffield uni and this is just going to be a bit of side work. I'm also goign to be advertising for computer help as i have some expereince in this also. I really don't understand how you could say that i would be making aorund 2 quid profit off a job as i have very little overheads. Also why can you not read my posts I'm not going to be working in a dormitory I'm going to be servicing student housing i.e university housing.

[d_goldsmith]

When I first came to this forum I intended on reading every thread, but after reading the first three pages of this one, and following it for days now, I'm not reading page 4. I skimmed over it.

[Romstar]

When I first came to this forum I intended on reading every thread, but after reading the first three pages of this one, and following it for days now, I'm not reading page 4. I skimmed over it.

Well, there is another fellow who learned part of the LP101 survival technique.

Romstar

[Rockford]

Even if you think you've no overheads, you still have to cover the cost of:

Advertising - how are you going to let people know you're there? Local paper ads, business cards, website (hosting etc.), leaflets, Yellow pages ? Even assuming basics of business cards, a leaflet drop (which most will ignore or bin), and a couple of local adverts - lets say £500

Insurance - you should have liability insurance, and I'd advise cover for your tools. Lets say £300

Accountancy - if you're a Ltd company, then you will incur accountancy costs. lets say £500.

Phone - You have to be contactable, and be able to call people. Lets assume mobile contract - £420

Tools - You say you'd like to add a tool per month. You don't say what, but lets assume £1800 (£150 per month, and you won't get much for that!)

Just with the above, you'll need to complete 234 jobs to break even.

We really are trying to give you some good advice here, but if you're intent on pursuing this dream - very best of luck, and no doubt I'll be seeing you around when I clear-up on the jobs you cannot complete.

[natastna2]

Thans for your help, I'm just goign to edge myself into business bit by bit, I do realise taht the best way is to have all teh money first and then go for it but at the moment I simply cannot do that, I've sorted out teh advertising and will be delivering around 4000 leaflets to the local area and am getting A lot of calls. Crap just got a call from a a woman sayign her son has locked his bike up but cannot use the key now. Hey Rockford I woudl happily pass these calls onto you free of charge if you could tell me what locksmith u work for or give me a contact number. She says its a D lock but i suspect its a tubular and I don't have the tools

[natastna2]

I passed her onto a local locksmith called Quicklocks if that rings a bell with anyone, Rockford I appreciate what your saying but I will nto even be attempting any job I do not think that I could do quickly and reliably, that is why my advertisement states interior doors because I can do exterior and 6 pins but not consistenyl enough i feel to offer my services for it.

[UWSDWF]

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