First Steps to Take After Licensure

[Elijah]

Hey everyone,

I was a rather active member of this forum a while back under either the name HumEschatos or Pontifex (I forgot which so I had to re-register). I am now a graduate of Foley-Belsaw Institute and working as a locksmith for the University of Connecticut.

First off, I can't help but say that working as a locksmith is basically a dream come true. I love every part of the job, even when I'm forced to cut keys, clean up brass scraps, and go to the salvage yard all day. Some days, I go on academic re-keys with the senior locksmiths (We enter an academic building, and often replace all the locks and/or the hardware itself after someone loses a Grand Master key or because we're trying to standardize the key and lock system on campus). Even though I have to wake up before sunrise to get to work, I couldn't be less than elated to do so--in fact, I wouldn't mind it if I NEVER left the workshop, so much so that I've even considered halting my University education. Over the past 6 months, I have been finishing up some basic training all the while eating, breathing, sleeping, and thinking like a locksmith. This is the best job I've ever had and I enjoy doing everything as best as I possibly can!

For the sake of brevity, I'll get to the point now. I'm leaving the University in August and want to know the next step to take to become a recognized locksmith in the states... "in the books," so to speak. I may or may not ever run my own business, but it is a dream of mine to have SOMETHING to fall back on, even if just a hobby. I live in Connecticut and I need to know who I must register with and what steps I need to take if I were to begin running a lockout service or something similar. What supplies would I need to buy? What types of forms, ledgers, etc. should I look into before stepping into the field independently? For the record, I've seen all the sticky's here more than a handful of times and done a huge amount of external research--I've simply never found ample information about the first 'big step.' Any help you could provide would be GREATLY appreciated and could help put a trustworthy and hardworking locky in business!

Thanks for reading the horrendously long post!

[Elijah]

Also, not to be a pest but I would like information about locksmith identification. Is there any type of state licensure which provides indentification--Any state sponsored locksmith tests? Or is identification a company-specific choice? Thanks again!

[Elijah]

Ahh, thanks MCM. You've opened up some of the questions I've had for a while but never wanted to ask.

What exactly does it mean to become bonded and how can one become bonded?

Also, if anyone can provide links or information to the ALOA or the BBB it would be greatly appreciated. I'm going to start researching the two this very instant. Thanks again!

[master in training]

sorry im from the UK, so things may be totally different, but here there is nothing to stop you renting a shop premises and taking out an advert calling yourself a locksmith, theres no formal tests or anything.

when coming out of uni here, most people have between 10 and 15 thousand pounds worth of debt, it may be different there, but i know you will need a very large amount of money to get set up, tools are expensive, then you need loads of replacement locks, pins, keyblanks etc, a van to put it all in and a shop to call your office. theres a thread in the euro section talking about becoming a locky, its about setting up in the UK, but ignore the parts about lever locks and it should give you a bit of an idea.

then you would need to go to a stationers and get some stuff printed up, letter heads, self carbonating receipts, etc. you'll need advertising as well, set up a website (if you're a uni a friend could do one as a project for their course for you, so you get it for free?), take out an Ad in the yellow pages and stuff like that.

all these costs will mount up, it may be an idea to work with a locksmith for a while before setting up on your own, but as you've already done the FB course, you can pretty much call yourself a professional locksmith i would think, i've seen people with much less training call themselves professional.

im not sure if all that helps at all, but its what i can add to help, hopefully it answers a few questions!

good luck!

~ Master in Training ~

p.s. is the FB course only for those in the US, or could i do it in the UK, if i could, is it worth doing or is it US based anyway and therefore not of enough relevance? i know it costs quite a bit and would be out of my budget for a very long time, but im stil wondering, i've heard its a good, enjoyable course.

[master in training]

i didnt realise that was such a long post!

by the time i'd typed it there were another 2 posts!!

[Elijah]

Thanks for the good info, MIT! I would say Foley-Belsaw was well worth the money! In regards to the huge debts you mentioned, that happens here in the states too--most people who go for one or more degree programs owe at least $20,000 USD. I've been saving and making fairly good financial decisions over the past decade, so I've been paying for University, Foley-Belsaw, and my expensive hobby out of my bank account. I run an eBay business at the moment (selling vintage video games and computer hardware--another hobby of mine), and that is what I use for funding the locksmith interest. I'm hoping to graduate from this University without a single penny of debt, even if I leave without a penny to my name.

I like your website idea, and I already have two domains registered to my name. Creating a locky site wouldn't be too hard, but it takes many MANY months for the site to attract traffic from major search engines, and often the intricacies of meta tagging and choosing the right content causes you to be overlooked by your target audience. I won't even go into how hard it is to find an effective domain name for a business such as this =)

Yellow pages, on the other hand, have always been on my mind =) Imagine this: you get locked out of your car or house. First thing you do? Find a phone book! I am absolutely positive that the yellow pages are one of the best investments you can make as a locksmith, and I will go all out to attract the most traffic from my ad.

Keep the info flowing, guys. I love this stuff!

[mcm757207]

http://www.aloa.org/highspeed/ << Assosiated Locksmiths of America
http://www.bbb.com/ << Better Business Bureau

[master in training]

glad i could be of help

well done for not having any debts! thats some going!

here we have loads of directory enquiry services, like the yellow pages buy you phone them, it would be good to try and get your business in with these sorts of people too, most people wont have a yellow pages to hand but will have a mobile(cell) phone.

as for attracting interest in your site, you can submit it to many search engines like google and get it listed on other sites similar to lp101 and lists of lockies and other tradesmen, so that people can look for one near them, i cant remember the name of such sites though.

yellow pages ads are expensive ads to take out though, so i'd still recommed working with a normal locky at first, then try and get as much repo/police work or anything like that as you can in the early days to cover costs.

[mcm757207]

Yellow pages are a *must* if you plan on doing lockout services. IMO Yellow pages are 10x more valuable than any website you would create.

[vector40]

Some states do have licensing requirements. California certainly does; it involves background checks, fingerprinting, and the like. Check around; your state's website should have info.

Registering as a business is the first step. And The National Locksmith and The Locksmith Ledger (the two biggie locksmith periodicals) both offer an identification card and a $15,000 bond upon subscription. Those are Good Things.

At the least, I'd say, you'll want to have invoice forms for billing, waivers for possibly-damaging processes (or certainly damaging ones like drilling), and some kind of records so you can keep track of your jobs.

Decide what you're going to do -- a mobile full-service lockout business (doing installations, rekeying, selling stock, and the like, all from a van)? A mobile lockout-only business (just getting folks into places)? Will you actually have a storefront? That's a whole 'nother can of worms. Will you do auto work? Auto lockouts are fairly straightforward; full auto locksmithing (replacing locks/ignitions, rekeying them, handling transponders, etc.) is a mega investment in training and gear.

There's a variety of threads regarding equipment. Search around Varjeal has a good one.

Learn how to run a business and manage money, even just the basics; you'll pick up the rest as you go.

Research the area you live in to see what kind of doors are popular, what kind of locks, what kind of cars.

Advertise, advertise, advertise. That means real advertising, but also word-of-mouth kind of stuff; tell everyone you know you're starting a locksmithing business, give 'em your number, and so on. But only once you're ready to go, of course. You don't want to get a call and not be able to deal with it.

Just some thoughts. I'm no expert myself.

[Romstar]

The following web site contains the information you will require for licensing in the state of Connecticut.

http://www.cga.ct.gov/olr/ba2000/2000HB ... 663-BA.htm

As you can see, there are certain requirements that need to be met.

You may want to look at this as well:

http://www.ct.gov/drs/cwp/view.asp?a=1512&q=269832

The main Connecticut governmental website is located at: http://www.ct.gov/

Another person mentioned bonding, and this is very important, but there are three types of insurance you want to look into depending on the requirements of your state. These are: 1. Automotive insurance for a business vehicle (frequently different from private vehicle insurance) 2. Liability insurance. This is especially important if you have a store front. 3. Insurance for errors and omissions.

In some cases, you will be able to combine the insurance under a single catch all policy. However, some brokers do not offer such packages, and you may find that it is cheaper to have seperate insurance providers for each of your needs. Never incorporate your personal vehicle or home owners insurance with your business insurance. In many cases, despite it being illegal in most places some insurance companies will try to recoup any losses from one policy by raising the rates on all your policies. This is something to be aware of as you are shopping for insurance.

I notice that in Connecticut there is a requirement for sales and use tax, and you will most definately want to get in touch with the Connecticut state revenue agency. In most cases it seems that you will be covered under the building and contractors section. Although there does seem to be some mention of Locksmithing services in the general guide. You can read an non-official version of the guide here:
http://www.ct.gov/drs/cwp/view.asp?a=1510&q=288432

Bear in mind that as you are setting up. the taxation and revenue agency may be able to provide you with specifc perks concerning your initial outlay for tools and essentials. This will be important material for you to examine as you get closer to starting your business.

Because of the necessity of keeping accurate records, I would serious recomend the use of a computerized accounting package. As your business grows, you will want to consider the services of a good accountant who is familiar with the building trades.

Forms are another necessary evil that you should always have with you. Reguardless of whether it is a lock-out business, a full service mobile business or a store front.
You will be providing necessary and sensative service to equipment and mechanisms that protect valuable property or lives. As such, it is important that you be sure that the person requesting the work is authorized to do so, and that you have a signed form for most of the services you provide. This is especially important on all lock-outs that you do.
Speak to the local police about what they would consider due dilligence in your area, and back up any information you receive from them with information provided to you by a competent lawyer.

Take a good hard look at the skills and knowledge you have gather so far. Don't be afraid of new things, but know what it is that you can do comfortably. Then consider the tools, equipment and supplies that you have available to you. If you plan to offer only lock-out services, you must have the necessary tools and information to do those jobs.
This will include lock picks, pick gun (regular and electric) vehicle opening tools, (including slim jims, rod tools, through car tools and speciality picks) and information on the proper way to open a wide variety of vehicles.
If you offer premesis services, you will need to expand not only your tools, but also carry an invantory of certain products with you at all times. You may be called upon to re-key, repair or replace locks after hours when you can't run to your local supplier.

I have seen locksmiths called to the scene of a domestic disturbance, and they were unable to repair the damage because they did not have a door reinforcement or another necessary piece of hardware. Please bear these possibilities in mind.

Varjeal has created quite the extensive list of tools required for the average locksmith, and you will find it quite useful. You will also find that there are things that aren't included on the list. Be ready for this possibility. You can't cover everything all the time, but you should be ready to improvise if you have to.

At any rate, read the information that I have provided to you, and feel free to post again if you have any further questions.

Good luck,
Romstar

[Elijah]

That was quite a fantastic post. Those links to the CT code regarding locksmiths seemed impossible for me to find - I can't seem to navigate the government websites efficiently. I've bookmarked all those links as well as ALOA and BBB, and hopefully someday before this decade is over I can open up my own shop. Storefront or not, I just enjoy owning and operating a successful business.

One last question that is quite simple yet eludes me: Define EXACTLY what bonding means. I gather it is much like insurance or liability for your company, but I could never really find out. Please reply! Thanks again!

-Elijah

[Romstar]

Bonding is like an insurance that covers you if you or an employee steal something.

Its called bonding, because once upon a time you used to just pony up the cash, and it was held on your behalf as an insurance for your honesty.

These days, its just one more type of insurance.

Romstar

[ufd538]

It really amounts to how much you want to get into it, and what you have for start up costs.

If it is you by yourself, don't even think about a shop...the money to be had is on the road. It is a waste to have a shop and do road work if you are by yourself. We have a pretty busy shop, and almost always a guy on the road does more than a guy in the shop, also a shop needs to stock more stuff.

Doing lockouts only....low start up costs. Might get boring after a while. You don't need a van, just the cheapest most fuel efficient car you can find...hopefully nice looking, image is alot. Low costs mean you don't have to charge as much as a full service locksmith might have to. Here is what you do to get business really going and to get locksmiths mad at you:

find out the lowest prices on lockouts in your area...in our area one company charges37.50, we charge 40, and other companies can go all the way up to 90. So if it were in my area, you would run your yellow page add with your name and number, lockouts, home, commercial, auto and here is the kicker, list a price cheaper than anyone else $30, or whatever it would be in your area. Just be sure to list it as $30 in your city, so people 30 miles away don't call wanting that price.

Bad news is unless you are in a pretty populated area, lockouts won't keep you going. Also, if you come across that lock that won't pick, you can't drill as you do not have cylinders and pinning kit to replace cylinder.

Now doing lockouts along with residential and commercial work will require more of a monetary commitment. A van, decent key machine, pinning kit, some tools, and some stock....a nice plus would be a framon, but not necessary, but you will need to order precuts, or depth and space keys for rekeys. bad news is when economy drops off business probably will too.

Automotive work can be VERY expensive!!! It sounds as though you mostly have knowledge in the commercial, residential area, so this is probably not for you. To acquire knowledge you would probably need to go to work for a locksmith that does, and pick it up from him....or her. You really have to keep up on things to do automotive, things always change.

Good news, business doesn't drop with economy...at least not for us.

If I had my druthers, I would not do anything but automotive, but if you have all those tools for that, you might as well do home and commercial, as all you need to do it, in addition to what you would have is a pin kit, some tools, some keys and some locks.

Hope this helps. Remember, 20% of the locksmiths do 80% of the work, find a way to be in the 20%. To compete in business, you must either offer a better product/service, or offer a better price, or both....unfortunately, this day in age people don't respond so much to better product/service as much as they respond to price.

[Varjeal]

I would advise you to consider something else as well...be VERY careful of price structuring. Don't undercut the competition so bad that you are not making any money yourself. It's a lot easier to raise your labor rate a dollar or two a year than it is to jump $10.

Not only that, but if you intend on having anything remotely close to a friendly relationship with your fellow lockies in the area, undercutting is definitely not the way to go.

There are basically two styles of thought when people compare your pricing to others (and they WILL do it too.)

1. They will look at your price and go "wow, look how cheap he is, we need to call THAT guy."

2. The other will go "wow, look how cheap he is, I wonder if he'll be able to do the work and what kind of service (if any) I'll get?"

My advise as someone starting up would be to find the rates of your competitors, then beat that rate by perhaps $2 or $3 dollars. This will appear to be being price competitive as opposed to cut-throat. When people ask why you are less expensive than the others you can say "less overhead" or some other excuse that doesn't make you look like you are deliberately undercutting the competition. This will also make it easier in communcations with other lockies as they will be less likely to look at you as a "cut-throat".

Btw, don't stay at that low rate for more than a couple years. At least match others as time goes on.

In my case, I deliberately kept my rates the lowest for a year and a half as I first started, but not outrageously so. Most people that called me (after price shopping) mentioned that my rates were lower. I would say something like, "yeah, I'm a fully mobile shop and have less overhead than my competitors." Once the client experienced my level of service and skill, they paid me feeling like they had truly gotten a fair deal. Even now when I go back to repeat customers (with my increased rates) they do not complain since my service and performance are excellent each and every time, and I'm still a few dollars less expensive than my competition in labor rate, though some of my other prices match theirs.