Starting My own Business

[wheresmykeys?]

Hello,

I am certified locksmith in southern West Virginia, that is trying to open my own business after losing my job as a locksmith at a local resort due to cut backs. I am looking for anyone with tips for my own business and a good idea of advanced tool. Also a good software for invoicing and inventory and customer database

Here is a list of what I have:
HPC 1200
Silca delta
flat steel keys machine
a couple sets of hpc picks
2 sets of hpc computer picks
hpc plug spinner
a key extractor set
a cheap dewalt lockset jig
a tool bag of all your standard tools
a van for sevice calls
laptop and printer in the van

Thank you

[2octops]

We use Quicken.

[wheresmykeys?]

I was looking at the Quickbooks Contractor 2012

[dauce]

My two cents would be to offer the only advice that I have experience in:

-spend a few bucks on a mailing list (list of people in a certain radius around your business, that make X-amount of dollars per year, etc), these lists can usually be purchased quite reasonably

-send them a mail piece with or as a refrigerator magnet offering your services, this way if a problem comes up - there you are and so is your contact info!

I believe its all about making yourself visible in an increasingly difficult market.

Cheers,

[cledry]

We use Quickbooks for estimates, invoices etc. I would recommend spending some time to customize it, such as add your own logo to each item you send out. We do at least 50% paperless, sending PDF estimates and invoices and sometimes faxing.

I would say the tools depends on the anticipated niche. We do a lot of door work so require different tools to someone who does automotive. Niches like safes and doors set you apart from the average guy that relies on fighting for car work or residential. Not that there is anything wrong with those areas, but there are just more people doing them and it is more cutthroat in nature.

[wheresmykeys?]

My two cents would be to offer the only advice that I have experience in:

-spend a few bucks on a mailing list (list of people in a certain radius around your business, that make X-amount of dollars per year, etc), these lists can usually be purchased quite reasonably

-send them a mail piece with or as a refrigerator magnet offering your services, this way if a problem comes up - there you are and so is your contact info!

I believe its all about making yourself visible in an increasingly difficult market.

Cheers,

How do I get a mailing list like what your talking about?

[Hollywoodpick]

I would go after car and home lockouts.

I started over a year ago and spent a lot on equipment that almost never gets used as i get more lockout calls then anything.

I am very happy with what i make just from lockouts plus i do installs and re-pining but not many.

I would add on two long reach tools and two air bags add a door wedge when needed for cars.
For homes add on the thin plastic stuff that works wonders, A set of picks i see you have, A good set of bump keys but buy a auto hammer to use with the bump keys.
Extra home locks and dead bolts.

Advertising is key you need a easy to find website on page one in Google in your area so customers can find you.
I do have a yellow page ad to but i would say 85% of my calls are from my website.

Its just after 11:30 PM and i just got back from another call this was my 5th call today and two of them are from tonight that pay more so it has been a good day. My first call was just after 5AM

I drive a Honda Elament all lettered up for my work truck its good on gas and has has a lot of get up and go.

[2octops]

How do I get a mailing list like what your talking about?

Google "Mailing List"

These list ain't cheap and depending on the source they can be quiet unreliable.

You can get a lot of list from your local library and Secretary of States Office. Some are free but some will cost you a pretty penny.

I wouldn't waste the money personally unless you are looking for something specific. Most folks look at stuff like this as junk mail and just toss it in the trash without ever reading it. I know I do.

Good web presence with proper search engine optimazation will gain you a lot of calls.

A well marked (easy to read at 50 mph or across a parking lot) service vehicle that is constantly on the road will do the same.

I don't know how many service vehicles I pass every day with names and numbers so small that I have no clue what they do or who they are. Simply a waste of money.

[cledry]

5 car or house openings would be $300 a day minimum where I live and more if they are night calls. Assuming you want to clear $800 to $1000 a week which is a good wage here for a locksmith you should be fine after expenses just doing lockouts.

Each of the guys at our shop clears $500 to $2000 a day in jobs. We do 90% commercial work and haven't had a slow day in about 2 years. We have just 4 trucks on the road and expenses run about $2000 a day for wages for 6 people, insurance, vehicles, website, advertising etc...

[maintenanceguy]

I've owned several businesses. Some made money and some didn't. I own three small businesses now. I've made all the mistakes that can be made. I'd like to warn you about my #1 mistake made by good technicians who decide to make the leap into business (it's one I made several times - I'm a slow learner).

The #1 mistake: believing that a locksmith (or insert any trade) business is about being a locksmith. Owning a business is about business first and about the specific trade that business practices second. Unfortunately, most of the time great tradespeople don't make great business owners because they're too busy being great tradespeople.

Your customers could care less if you're a great locksmith. They care about an easy, comfortable buying experience. Most locksmith's who own businesses work for wages - or less. They focus on being good at the trade instead of focusing on providing an easy buying experience. Locksmiths that run businesses don't usually do well. Business people who run locksmith shops do.

And I'll throw in my #1 rule of running a successful business: Make it easy for the customer to buy. In your business that probably means answering the phone on the first call, being available 24 hours a day with a very short wait time for service, providing great, simple, non-technical sounding advice, showing up when you say you will, charging what you say you will charge, and cleaning up after yourself. If you want a successful business, analyze every single interaction with each customer and ask yourself how you could have made that easier for the customer. Keep fixing it until you are the easiest company to work with.

my #2 rule for running a successful business: Understand that you can provide good service, fast service, or cheap service but only two of those at the same time. So decide if you want to be good, fast, and expensive; poor quality, fast, and cheap, or good, slow, and cheap. Different businesses have survived using any of these three models but business that try to provide good, fast, and cheap service won't make it. I prefer to provide good service, fast service, and expensive service. That means I simply am not able to provide service to people looking for cheap.

[globallockytoo]

excellent advice from maintenanceguy there. that is one of your best posts I reckon, mate!

I couldnt agree more. I know a great many locksmiths who are excellent technicians but have no clue about charging what they're worth. many times I have seen employees decide to go out on their own, thinking they can do the job better than their bosses, only to find a rude awakening that the costs for being in business are sufficiently greater than the measly amount received in the average service call.

many locksmiths barely eake out a living. it is tough to make ends meet, especially of you undercharge. undercharging also creates animosity within the trade, because technically, you are hurting all your competition as well as yourself by not charging prices that reflect your knowledge, training, equipment purchase, tools and running costs.

I have been going 5 years now, in a beat down economy. I have survived by the skin of my teeth, because I refused to spend enormous $$$ on everything. I am a little more expensive than others around me (and I dont have the networks that they have spent 40+ years developing), but customers who do choose me, get experienced tradespeople with product knowledge spanning multiple countries and experience from working on 4 continents.

I can barely get a car opening for $75 at night in my town (and my regular charge is $90). I dont advertise 24/7. I dont want the garbage price shoppers. I leave that work to the shonky's and low ballers. I get many returning customers who often choose me because of a referral or because of sensational reviews on third party contracting sites (reviews that cannot be faked). I fix many clients problems that were originally attempted by another "so called" tradesperson technician. those tech's dont carry insurance, dont have any warranty or guarantees and dont know how to talk to the customer.

I suggest that if you want to be in this business for a long time, consider doing all the other parts of the trade apart from openings. openings are the cream between the Oreo cookies. They will rarely make you significant money because most users of that service will delete your number immediately after you leave them.

(my 2c)

[cledry]

globallockytoo I suppose if surviving in this economy is considered being good at business rather than going out of business. I consider these economic times one of the best for our trade. Our business is booming, we had a drop in trade just prior to the last Presidental elections but that is normal. However since then we have trouble keeping up. Of course I don't think the economy is nearly as bad as people reckon. All the shops around here are full, the restaurants still have lines to be seated, and the hotels and attractions are full. Most small businesses we deal with are doing great as well. I suppose a lot of it is what region you are in and how big your potential market is.

I should add that our owner is a former banker and our VP is a salesman turned locksmith. So the advice about locksmiths generally not good at charging what they are worth is a very valid one.