Locksmith Business Plan

To launch South Kelleton Keys and Locksmith, Pad Lawkse must establish its credibility through a product line of quality lock hardware and expert knowledge about locks and security, as well as its visibility through direct selling to businesses and street/community visibility to homeowners in South Kelleton. Product sales will be achieved through its storefront location and services will be rendered on client sites primarily.

6.1 Competitive Edge

South Kelleton Keys and Locksmith will compete by specializing in lock and security concerns, establishing relationships with other security businesses to create a network of additional vendors to serve clients, and by maintaining its expertise through ALOA training.

By specializing in locks and security rather than carrying other types of home and building hardware, the business will focus on its core strength and expertise and develop a reputation in the neighborhood as a specialist.

To offer high-tech security systems, SKelleton Keys will develop a list of preferred security vendors to whom they are comfortable sending on business requiring more specialized security. These vendors will pay a commission to SKelleton Keys on every sale they make through these referrals.

Padraic Lawkse will develop his locksmithing expertise through additional training with the Associated Locksmiths of America. He is currently a Certified Professional Locksmith and will work towards certification as a Certified Master Locksmith, the highest category available. This will ensure that Pad Lawkse’s expertise in locks and security will make customers confident in the service of the business and allow Pad Lawkse to recommend upgrades as they become available or less expensive, when appropriate.

6.2 Marketing Strategy

South Kelleton Keys and Locksmith will focus on business sales to building management companies and businesses with real estate as well as consumer sales to homeowners. This requires a dual approach to marketing.

The following tactics are part of the business sales focus:

• Design and produce brochures advertising the services offered by South Kelleton Keys and Locksmith
• Develop a list of businesses in the neighborhood and import this list into salesforce.com
• Send brochures by direct mail to this list
• Advertise in trade publications for building management companies
• Search engine marketing: Bid for keywords around business and building security using Google AdWords
• Sales efforts to follow up with businesses (see sales strategy)
• Creating a website for the business and offering additional information beyond the brochure

The following tactics are part of the consumer sales focus:

• Create attractive signage and post outside and in windows of store to build street visibility
• Put ad in local newsletters advertising opening of the store
• Post flyers about the store opening on local bulletin boards in stores and public places
• Decorate the store for its grand opening and offering free gifts of store branded key chains to early visitors while supplies last
• Creating a website for the business with information on store products, hours, location, contact information, etc.

6.3 Sales Strategy

Padraic Lawkse will direct the sales efforts of the business which will focus on business sales. He will generate lists of building management companies and area businesses, and use both phone calls and site visits to make management aware of South Kelleton Keys and Locksmith and to qualify the potential customers for future conversations.

These lists will be kept in a salesforce.com account in order to track sales activities and to collect customer information for those who convert to customers.

6.3.1 Sales Forecast

The sales forecast shows that hardware sales and installations will drive the revenue of the business. While hardware sales are a key driver, services provide a much greater gross margin (80% versus 40%). Commissions on referrals to other security businesses will be extremely profitable as the gross margin on these referral fees nears 100%.

Significant growth is expected over the first year and then 30% annual growth in year 2 and 25% in year 3. This is based on continued saturation of the South Kelleton market as building managers begin to refer tenants to SKelleton Keys. A key assumption is that the current locksmith offerings in South Kelleton are lacking and that businesses, homeowners, and building managers will be eager to work with an experienced locksmith with a local shop.

6.4 Milestones

The milestone chart shows the execution of the pre-launch marketing activities and the use of $10,000 in marketing funding. The expense for the grand opening is to order store-branded key chains as gifts for customers who visit the store while supplies last.