Locksmith Business Plan

South Kelleton Keys and Locksmith will establish a new locksmith shop within the neighborhood of South Kelleton. This predominantly residential community, including landlords, homeowners, renters, and other businesses, require locks and security products ranging from the simplest locks to padlocks and advanced products. SKelleton Keys will provide products and installations of deadbolts, padlocks, cylinder locks, camlocks and safes. The business will refer clients to security system partners for more advanced security technologies. They will provide on-site security consultations, installations and repairs. They will copy keys and sell key rings and key chain products.

2.1 Company Ownership

South Kelleton Keys and Locksmith is an LLC owned by Padraic Lawkse, an experienced locksmith who worked as a lock installer and salesperson for ten years.

2.2 Start-up Summary

Start-up expenses include initial liability insurance premiums, covering both the store and general liability for work done on-site at customer homes and offices, rent for one month’s security deposit and two months for the build-out and set-up of the store prior to opening, legal and licensing fees, and stationery and print collateral. A $25,000 surety bond must also be secured as well for an estimated $750 per year. Pre-launch marketing expenses are detailed in the marketing plan and include the creation of a website ($1,000), brochure ($2,500), flyers and ads ($3,500), and other activities.

$40,000 in inventory of locks and key products for sale off the shelf must be purchased prior to opening. Current assets pay for shelves and display cases, a computer and necessary software systems. Long-term assets include a cash register system ($2,000), key cutting machines (3 for approximately $1,000 each), outdoor signage ($500), and fixtures and improvements to the store space ($20,000). Additional tools ($4,500) include hand tools (screwdrivers, hammers, saws, chisels), power tools (drills, hole-saws, saws, sanders), letter and number hand stamps to label and number keys, and a short ladder to reach the top of door frames. $10,000 is reserved for the purchase of a used van and its outfitting with racks and drawers to store parts, tools, and a key cutter.