How to Start a Locksmith Business in 2024 [10-Step Guide]

1. Get The Required License

Currently, 15 states require an official locksmith license. Depending on the state, you might be required to complete a certification course, pass a background check, pay registration fees, submit insurance, and even complete an apprenticeship.

Even in states with no official industry license, getting certification beforehand is best to build customer trust. For example, many locksmiths decide to get certified with the ALOA Security Professionals Association. 

To get certified, you’ll need to pass locksmith exams. You should register for courses that teach you the skills you need. For example, you can get certified in:

• Residential locksmithing

• Automotive locksmithing

• Safe and vault locksmithing

• Electronic locksmithing

• Commercial locksmithing

• Forensic locksmithing

When you start, it’s often a good idea to focus on building your expertise in one area. In the next section, we’ll discuss what these niches involve in more detail.

2. Decide On Your Services

What services will you provide? That will depend on your skills and what type of work you prefer. As you gain skills, you can branch out into providing other services.

Here are some of the niches you can explore:

Residential locksmiths deal primarily with homeowners and apartment residents who need to install or change locks or return to a home they’ve been locked out of. You might also provide key cutting, lock repair and maintenance, and master key systems for apartment complexes.

Automotive locksmiths most often help people unlock cars they’ve been locked out of, both with older vehicles that use keys and newer keyless remotes. Since car lock technology changes quickly, it’s a rapidly advancing field that you’ll need to keep abreast of. Also, it will often require you to work after hours.

Safe and vault locksmiths unlock safes and vaults, but they often also reset combinations, conduct inspections, and help install safes and vaults. These services can apply to commercial customers (for example, businesses with cash safes) and residential customers.

Electronic locksmiths specialize in smart key and remote locks, which tend to be complex and require more troubleshooting than traditional locks. Since so many residential, commercial, and automotive locks are electronic, there’s some overlap with other services, but if you’re particularly tech-savvy, specializing in this area can set you apart.

Commercial locksmiths provide services similar to residential locksmiths but for businesses. They often deal with complex security systems like punch codes, swipe cards, high-security locks, and consulting services. They also tend to be on the scene swiftly after break-ins to change locks.

Forensic locksmiths serve as consultants on crime scenes. They offer insights into how a break-in may have occurred and what tools were likely used to pick locks. They can also provide expert legal testimony on locks for court cases.

Many locksmiths offer a few of these services, but you can also decide to hone in on one niche at first. Each specialization will require different tools and levels of training, so it’s wise to determine what services you’ll offer (and which ones you won’t) to make a precise business plan.

3. Create Your Locksmith Business Plan

Having a solid locksmith business plan is about more than just getting financing. It’s also your compass to guide you through a new venture's stressful first weeks and months.

Here are a few things you should include:

1. An executive summary that outlines your mission, services, and growth plans. It’s a short version of your entire plan that gives investors an overview of your direction.

2. A company description with basic information, such as the name of your business, your team, and your business structure.

3. Services you offer, including your niche, target market, and service area. You should also mention whether you plan to expand into new services as you grow and what adjacent services you offer.

4. A market analysis where you analyze the market and your competitors, including the addressable, available, and attainable markets in the area you plan to serve. 

5. Your business goals in light of this market analysis, which tells investors how you plan on succeeding and how the funds you’re seeking will help you get there.

6. A marketing strategy highlighting how you’ll generate awareness, build brand trust, and gain new customers.

7. Financial analysis and projections that outline a detailed budget, how you’ll grow, and when you plan on turning a profit. If you’re not financially oriented, hiring an accountant to help you iron out the details is a good idea.

Finally, if there’s anything notable that sets your business apart—whether it’s your team’s combined skill set, certifications, or existing contracts, you’ll want to note this in the relevant section.

You can use ServiceTitan’s Service Business Valuation Calculator to estimate the current value of your business or the Service Business Checkup tool to evaluate the health of your business in just 60 seconds.

Learn more about setting up a successful new business in the ServiceTitan Playbook and learn about ServiceTitan’s Pricebook tool.

Once you have a business plan, you’ll be set to seek funding.

4. Get Financing

Launching a successful locksmith business requires startup capital from investors, business loans, or your bank account. How much capital you’ll need will vary greatly depending on what niche you serve, what courses and certifications you plan on taking, and what equipment you need to buy.

Consider the startup costs of your locksmith business

In your business plan, you’ll ideally have a list of all the expenses you will incur as you start your locksmith business. Make sure you’re meticulously estimating each expense, and factor in a buffer to ensure you have a realistic grasp of your financial requirements. This list will be a valuable reference point when seeking funding or managing your budget.

Decide how to finance your business

You may use one of these common financing options or a combination to raise the amount you need to get started.

• Personal savings: Accessing personal savings to launch a business provides a great way to avoid taking on debt while maintaining control over the company.

• SBA loans: The Small Business Administration (SBA) offers small business loans and investment capital options that help you fund your locksmith business. If approved, these loans offer lower interest rates and longer repayment periods than traditional loans, making them an excellent option for new business owners.

• Bank loans: Banks offer loans to small businesses, but they may be more difficult to qualify for than SBA loans and typically offer less favorable terms. Some bank loans may require you to provide collateral, such as business assets or personal assets, to secure the loan.

• Investors: If you have a strong business plan and a proven track record, you may be able to attract investors to finance your business. Investors can provide you with the capital you need to get started, but they will also expect a share of the profits.

Once you have financing in place, it’s time to officially register your business.

5. Register Your Locksmith Business

Although many states don’t require you to get an official locksmith certification, you’ll still need to go through the business registration process. That starts with choosing an official name for your locksmith business that’s creative, unique, and descriptive.

Choose a Name for Your Locksmith Business

Your locksmith business name should convey professionalism while being catchy enough to pique potential customers’ interest. When you decide on a name, Google it first to ensure it’s not taken. You can also double-check existing business names on the SEC website, which has business name info dating back to 1994.  

Register Your Business

Once you decide on a name, it’s time to register your new business. Registering your business provides legal recognition and establishes your entity's identity. It also allows you to operate under your chosen business name.

The registration process typically involves filing the necessary paperwork with your state or local government authorities. The specific requirements depend on your location and business structure (sole proprietorship, LLC, corporation). 

Obtain Your Small Business License

Research whether you need any small-business licensing in your area. Different local jurisdictions will have different requirements for business registration. 

Once you’ve registered your business, it’s time to move on to how you’ll manage finances.

6. Handle Finances and Accounting

Managing your finances well is crucial for success. When your finances are in order, you can accurately monitor your profitability and make more informed business decisions about allocating resources.

Open a business bank account

First, open a business account to separate personal and professional expenses—you’ll thank yourself when it’s time to file your taxes. This also lets you apply for a business credit card to cover minor expenses and build your credit score to qualify for business loans.

Use professional accounting tools

Using professional accounting tools also helps you track payments, manage vendors, create invoices, and generate comprehensive financial reports for an overview of your business’s financial health.

QuickBooks and Xero are two common options, but having multiple software subscriptions can be pricey.

Instead, you can use ServiceTitan’s all-in-one platform with accounting features. With ServiceTitan, you can automate day-to-day accounting tasks and focus on the big picture. It includes features like:

Accounting for the Front Office

With ServiceTitan, you can easily send proposals and quotes, process timesheets, and manage payments and billings from your mobile phone. That makes estimates and payments convenient and instant when on an emergency call in the field.

This information integrates with your back-office reporting to eliminate the extra data entry steps for you (or your admin team).

Accounting Periods

You can also create statements and perform monthly reconciliations from within ServiceTitan to keep on top of your business’s financial health. It integrates with QuickBooks, Intacct, and Viewpoint Vista to keep your finance team in the loop.

Accounts Payable

You’ll probably need to upgrade your tools, pay for overhead office expenses, and manage any subscription fees to keep your business running smoothly. With ServiceTitan’s accounts payable feature, you can keep up with vendor payments and earn one percent cash back on qualified transactions.

Accounts Receivable

You can also easily track overdue income in ServiceTitan to maintain a stable cash flow. The Accounts Receivable feature lets you see who owes you money and how long your invoices are overdue for efficient collections.

Finally, ServiceTitan’s Accounting Platform automatically creates different financial reports, which you can schedule to be delivered directly to your inbox.

Together, these different accounting functions empower locksmiths to track their finances better and protect their bottom line to ensure profitability.

7. Purchase Equipment & Assets

As a locksmith, you’ll need some important tools to get started. In addition to tools like key extractors, a key cutter, lockout kits, and lock pick sets, you’ll need a company vehicle to ensure you’re on-site quickly for customer emergencies.

However, the best locksmith tools will partially depend on your specialization. For example, you may also need:

• Padlock shims

• A handheld scope

• A universal gas cap

• An auto wedge set

• An auto shutter tool kit

• A lock and safe scope

• A thermic lance

Remember that you’ll also need to replace tools every once in a while to stay efficient.

In addition to physical tools, you’ll need locksmith software that centralizes information across your business in the office and the field. 

Get real-time information on the job

ServiceTitan’s Field Service App lets you take your pricebook wherever you go, on a tablet or mobile phone, so you and your techs can arrive with all the right information.

ServiceTitan's Field Service App allows field technicians to access a customer’s service history, including the installed equipment. This mobile application gives on-site techs real-time access to customer details.

It also lets your customers pay you on-site, so you don’t have to worry about chasing payments for months after the work is complete.

Having the right physical and digital tools on hand is crucial to staying efficient—so it’s vital to ensure that you keep track of them. Fortunately, you can also rely on ServiceTitan to help manage your inventory.

How inventory software can help

ServiceTitan’s inventory software helps you manage your equipment and know when to purchase new ones, so your team has everything they need to get the job done right.

Here’s how:

Equipment Tracking

With equipment tracking, you can tag customer-owned equipment, such as alarm panels, with barcodes to give the customer, office, and field technician a richer history of their equipment.

Materials Tracking

You can also use the materials tracking feature to ensure your techs arrive on-site with the right tools. It tracks stock in company vehicles and tells you when to replenish it.

Purchase Order Management

Use the purchase order management feature to track and manage purchase orders and stay current on the status of new equipment purchases. That way, you can connect new purchases to vendor contact details, pricing, and the exact purchase date.

Inventory Management

With inventory management, you can maintain inventory, track it on an item-by-item basis, and let your techs reserve and request new tools for different jobs.

Equipment History

Finally, the equipment history feature lets your technicians access the customer’s equipment history to understand what tools you use on the job for recurring customers.

With all your equipment ready and managed correctly, it’s time to consider how you’d like to price your services.

8. Decide On Your Pricing

Your pricing strategy is a key part of whether or not customers decide to work with you. If your service is priced too high for the market, you risk losing business. Too low, and you’ll struggle to cover your expenses (and ensure healthy profit margins).

To start, do some competitor research to understand what others charge in your area. Figure out the average price for locksmiths and whether or not that price makes sense, given your overhead costs.

Then, decide which pricing strategy to use:

• Hourly rate: Hourly pricing, also known as time and materials pricing, charges clients based on the time spent working on a project and the cost of materials used. This strategy has the advantage of transparency, but the downside is that clients might be concerned about the total cost, and techs might be incentivized to work more slowly to bring in higher fees.

• Flat rate: Flat-rate pricing offers clients a fixed, upfront price for a specific service or job, regardless of the time it takes to complete. Locksmiths typically establish a price list for routine jobs, which makes it easier for customers to decide on a service based on their budget.

• Labor and materials pricing: Labor and materials pricing is a hybrid approach that itemizes the cost of labor and materials separately on the invoice. Clients see a breakdown of the technician's hourly rate and the cost of materials used for the job.

Flat-rate pricing is a common approach rather than hourly because it incentivizes techs to execute jobs more efficiently, leaves no room for customers to haggling over the price, and ultimately results in higher average tickets. 

To streamline pricing, check out ServiceTitan Pricebook Pro. It shows regional pricing averages for your services to see where you stand in your market. 

Pricebook Pro’s Smart Start automatically adds a few hundred common services personalized for you. Once you’re set up, Pricebook Pro delivers regular content updates on costs, images, descriptions, and sold hours. A simple and professional pricebook enables techs to find, show, and sell services in the field. You can also use our labor rate calculator to understand how your employee’s wages affect your bottom line. 

But before you start in the field, you’ll definitely want insurance coverage.

9. Get Locksmith Business Insurance

Since you’re working with customer property, insurance is a must. If you accidentally damage a customer’s car while you’re working, for example, your insurance will cover it, making unlocking an expensive car much less nerve-racking. 

Additionally, on-the-job injuries, accidents, and stolen tools are all important emergencies that can leave you paying thousands out of pocket if you’re not insured. And as we’ve mentioned earlier, you’ll need locksmith business insurance in many states to register your business in the first place.

You’ll want to consider:

• Business owners’ policy: This combines general liability insurance and commercial property insurance. General liability insurance covers the legal costs of property damage, non-employee personal injury, and the consequences of false advertising. In contrast, commercial property insurance covers things like your office space and inventory.

• Workers’ compensation insurance: If hiring employees, you’ll need workers’ compensation for medical bills and the costs of employee injuries. Every state except Texas requires you to maintain workers’ compensation to protect your workers.

• Commercial auto insurance: Since general liability insurance doesn’t cover business vehicles, you’ll need additional insurance for your commercial vehicles. 

• Equipment insurance: Equipment insurance can help you cover the cost of repairing and replacing your tools, including smaller tools like lock-picking kits. Since locksmithing tools are vulnerable to theft, this type of insurance is invaluable for locksmiths.

• Professional liability insurance: This covers the cost of professional errors, such as negligence and employee errors. For example, if one of your technicians leaves a lock vulnerable and it results in a break-in, PLI may cover the cost of the legal claim your client could make.

We recommend you chat with an insurance broker to establish the best insurance plan and ensure you don’t overpay.

With insurance in place, you’re all set to start saving the day for your clients! But to reach them, you’ll need an effective marketing strategy.

10. Market Your Locksmith Business

Marketing helps set you apart in the industry. With a good locksmith marketing strategy, you can attract and retain customers, establish your brand, and ultimately grow your business. ServiceTitan’s marketing software offers tools to help you attract and convert new customers, as well as track the ROI with real-time data.

Consider the following marketing tactics when launching your locksmithing business:

• Create a website: Many customers find a locksmith by searching for one online. If you don’t have a business website, you’re likely to be invisible to a large segment of customers—and many others may see you as less credible. 

• Run ads: Consider using platforms like Google Ads and social media advertising to target potential customers searching for locksmith services in your area. ServiceTitan’s Ads feature integrates Google Ads and Analytics with ServiceTitan data to help put your ads in front of the right audience. 

The Local Services integration helps you book more jobs directly from Google searches since Google will show results based on your customer’s location.

• Consider traditional marketing methods: While digital marketing is essential, don't underestimate the effectiveness of traditional methods. Direct mail, flyers, business cards, and local newspaper advertisements can reach local customers who may not be actively searching online. ServiceTitan’s Direct Mail feature lets you build acquisition audiences based on property data, like the age of the home or property type, to target customers with specific locksmithing needs.

• Leverage social media: A consistent social media presence can boost brand awareness and trust while allowing you to engage with your audience and showcase your expertise. Pick a few platforms to start, like Facebook, Instagram, and LinkedIn, and consider posting helpful content—how a better lock can help boost security, for example, or what to do if you’re locked out of your home.

• Consider SEO: Invest in SEO strategies to improve your website's ranking on search engines. Use tools like Google Trends, Semrush, and Answer the Public to find out what people are searching for and then incorporate those keywords into your website content. 

• Use email marketing: Email marketing is an effective way to nurture relationships with existing and potential customers. Send regular updates, tips, promotions, and newsletters to keep your locksmith business top-of-mind. Use ServiceTitan’s Email feature to identify segmented audiences, build templates, automate your email campaigns, and track true ROI all from one place.

Manage your reputation: With ServiceTitan’s Reputation feature, you can request reviews from customers, monitor customer reviews on your dashboard, respond to reviews, and match them to individual techs. A well-managed online reputation can help you drive growth through social proof as customers sing your praises.

If you need help getting started, consult with a marketing agency. It can help you identify the right strategies for your business and create campaigns to target your ideal customers so you can watch the service requests roll in!

Over to You

Locksmithing can be an exciting and lucrative business if you plan it successfully, market your business, and use the best tools for the job. Having a solid foundation will help you put your best foot forward as you start earning the trust of your community as a valuable service provider who helps keep them safe.

At ServiceTitan, we’re here to help you succeed with all the digital tools you need to organize your locksmith business from the ground up.

ServiceTitan is an all-in-one platform for end-to-end locksmith business management. From front-office services like accounting, equipment management, and lead generation to field operations, payments, and management insights, ServiceTitan is your A to Z tool to unlock better performance.

Frequently Asked Questions (FAQs)

Still mulling over whether or not to take the plunge and start a locksmith business? Here are a few common questions new business owners have before they start.

How profitable are locksmith businesses?

As a locksmith business owner, you can make anywhere from $3,000 to $10,000 per month in revenue—but profit isn’t guaranteed. How much you’ll earn will depend on the quality of your locksmith services, how well you market your business, your management and operations approach, and the strength of your team.

How much does it cost to start a locksmith

business?

Startup costs can range from $6,300 to $29,200 depending on the property, training, and equipment you invest in. It will also vary significantly depending on where you’re starting out, whether you intend to hire people immediately, and whether you need a company vehicle.

Is it hard to become a locksmith?

That depends on several factors, including your prior experience and what you already know about locksmithing. You’ll likely need to complete a training program or apprenticeship if you haven’t already, but with the right experience, you can become a locksmith in as little as three months.