How to Start a Locksmith Business

Starting your own locksmith business may be the key to unlock your earning potential and freedom over your work/life balance. If you’ve got a few years of locksmithing under your belt and are thinking about going out on your own, you’re not alone. Your trade skills are essential, but they’re only one part of running a successful locksmith business. You also need to understand legal obligations, set up the right business structure, market your services, and build reliable support systems.

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Low on time? Skip ahead!

1. Decide why you want to run a locksmith business
2. Figuring out the finances
3. Make sure you're legally compliant
4. Set yourself up with the right tools — on and off the job
5. Don’t forget your digital toolkit
6. Go solo, partner up, or hire help
7. Market your locksmith business
8. Review, reflect, and grow

1. Decide why you want to run a locksmith business

Starting a business is a huge step, one that will likely impact your life for years to come. Before diving into business setup, it’s important to define your “why.” This guiding principle will help you shape decisions around pricing, workload, investment, and growth — and keep you going when the pressures and stress begin to rise. 

Ask yourself:

• Do you want the freedom to choose your hours and clients?
• Are you hoping to make more money than your current job allows?
• Are you building a business you can sell, franchise, or pass on?
• Do you want to scale up quickly and employ a team?
• Or do you want a steady solo business that gives you time for travel or family?

There’s no wrong answer — but being clear about your motivations will help you stay focused when things get busy. It also impacts practical choices like:

• Whether you’ll work weekends or after-hours.
• How you’ll price your services.
• Whether you’ll take on help or go it alone.
• The type of marketing that will work best for your audience.

2. Figuring out the finances

A solid financial foundation is one of the most important parts of starting your trade business. Understanding what it costs to run your business — and what you need to earn to stay afloat — will help you make smart decisions from day one.

Start with your setup and running costs

List out all the expenses involved in getting started and keeping things running:

• Tools and equipment.
• Vehicle and fuel.
• Business insurance.
• Marketing and admin costs.
• Job management software.
• Licences and certifications.
• Taxes and superannuation.

This gives you a clear picture of your break-even point — the minimum you need to earn to cover your costs.

Tradify’s Charge-Out Rate Calculator

Know what you need to earn

Once you understand your costs, work backwards from your income goals to set a charge-out rate or project pricing. This helps you avoid undercharging and makes sure you're earning enough to support your lifestyle and reinvest in the business.

Your pricing shouldn’t be guesswork. It should be based on real numbers — and reviewed regularly.

Profit Margin Calculator

Make time for regular financial check-ins

No time spent planning is wasted. Setting aside time to review your business finances every month or quarter helps you stay in control — and ensures the decisions you make align with your long-term goals.

Reviewing your numbers can help you:

• Spot cash flow issues early.
• Adjust your pricing as costs change.
• Plan for slow seasons or big investments.
• Avoid burnout by identifying low-margin work.

Use an accounting tool

Have you thought about how you're going to stay on top of your books? Perhaps you'll transfer your business data to accounting software, hire an accountant — or both.

To make things even easier, Tradify also integrates with your favourite accounting software:

• Xero
• Sage
• MYOB
• QuickBooks

Tools for financial planning:

• Cash Flow Template
• Performance Review Template
• Business Plan Template

3. Make sure you're legally compliant

Once you’re clear on why you’re starting your business, the next step is to get everything set up properly from a legal and financial perspective. This part might not be as exciting as branding or buying new tools, but it’s essential to protect your business and avoid costly mistakes later on.|

Choose the right business structure

You’ll need to decide how your business will operate legally. Common options include:

• Sole trader – simple to set up and run, ideal for one-person operations.
• Partnership – suited for two or more people running the business together.
• Limited company – more complex but offers liability protection and may suit larger operations.

Each structure comes with different tax obligations, admin responsibilities, and risk levels, so it’s worth getting professional advice from an accountant or business advisor.

Understand licensing and compliance

Locksmiths often need specific licences, especially if your work involves security systems or access to restricted areas. Requirements vary depending on your region or country. You may also need a current police check or security clearance.

If you're unsure, check your local industry authority, licensing body, or small business association to ensure you're meeting all legal requirements.

Register for taxes and get insured

Make sure you:

• Apply for an ABN or equivalent business number (e.g. NZBN in New Zealand).
• Register for GST/VAT if your earnings exceed the threshold.
• Set up a business bank account to keep your finances clean.

Insurance is a must-have. At minimum, you’ll want:

• Public liability insurance – to protect against accidental damage or injury.
• Tool insurance – especially important if you carry expensive equipment.
• Income protection or business interruption insurance – to safeguard your income if you can’t work due to injury or illness.

Need more help with insurance? Check out Tradify's Business Insurance Guide for Tradespeople

Get your paperwork in order

Using job management software like Tradify from the start can help you stay organised. You’ll need a way to:

• Track expenses and payments.
• Send professional quotes and invoices.
• Manage your jobs and customer communication.

Tradify helps thousands of tradies streamline their admin and stay compliant — without getting bogged down in paperwork.

Useful tools and resources:

• Business Plan Template
• Starting a Trade Business Checklist

4. Set yourself up with the right tools — on and off the job

Whether you’re cutting keys, rekeying locks, or installing access control systems, you’ll need a solid collection of tools and equipment. Think beyond the basics — your work vehicle is also a mobile workspace, so fit it out for efficiency and security.

At a minimum, you’ll need:

• Lock pick sets and tension tools.
• Key cutting machine and blank key stock.
• Rekeying kits and impressioning tools.
• Drills, extractors, and pinning kits.
• Secure tool storage in your vehicle.

5. Don’t forget your digital toolkit

Running a professional locksmith business means staying on top of scheduling, quoting, and paperwork — especially as your workload grows. Using spreadsheets or paper job sheets might work for a while, but they’ll quickly become time-consuming and error-prone.

A job management app like Tradify can help you:

• Send quotes and invoices quickly, even while on-site.
• Book jobs and track appointments.
• Keep customer details and job history in one place.
• Record time, materials, and costs accurately.

Tradify also makes it easier to manage emergency callouts and last-minute schedule changes — common in locksmithing work.

“Using Tradify has taken the stress out of managing jobs and helped me present a more professional image to customers.”  — Joshua Roberts, Shield Locksmiths

Helpful resources:

• Job Sheet Template
• Receipt Template

6. Go solo, partner up, or hire help?

Once you’ve got your business legally set up and your tools in place, you’ll need to decide how you want to operate day-to-day. Will you run the business solo? Bring in a business partner? Or hire someone to help with the workload?

Each option has pros and cons — and the right choice will depend on your goals, how busy you are, and how much responsibility you’re willing to take on.

Going solo

Many locksmiths start out solo — it’s low risk, straightforward to manage, and allows full control over your work. You keep all the profits and can stay flexible with your schedule. However, you’ll be doing everything yourself: quoting, invoicing, marketing, and the actual labour.

Solo operation is a great fit if:

• You want a lifestyle-first business.
• You’re confident managing all parts of the job.
• You’re not ready to commit to extra admin or legal responsibilities.

Working with a partner

A business partner can help share the workload and bring complementary skills — for example, one of you might focus on site work while the other handles admin and marketing. Just make sure you have a written agreement in place outlining roles, responsibilities, and how you'll split the profits.

This option is best when:

• You already work well with the person.
• You’re aligned on business goals and values.
• You want to grow quickly without hiring staff.

Hiring an employee or subcontractor

If you’re getting consistent work but can’t keep up with demand, bringing in help could free you up to focus on expanding your businesses or increasing the amount of jobs you can take on. But hiring comes with added responsibilities like payroll, insurance, and employment law compliance.

Before you decide, make sure you understand the difference between employees and contractors. It’s not just about how you pay them — it affects legal obligations, tax, and the type of relationship you’re setting up.

For more help check out:

• The Difference Between Employees and Contractors
• How and When to Hire Your First Employee 

Supporting tools:

• Employee Cost Calculator
• Job Description Template
• Interview Questions Template

Tip: Even if you're not ready to hire right away, tracking how many jobs you're turning down or how much admin time you’re losing can help you decide when it's time to bring someone on.

7. Market your locksmith business

Getting your business set up is only half the battle — now it’s time to get the word out. Whether you want to focus on emergency callouts, residential rekeys, or commercial access control, marketing helps customers find you and builds trust in your brand. Map your local locksmith market—are there suburbs with long wait times or no 24/7 service? You may find pockets of demand worth targeting with tailored marketing or emergency call‑out pricing.

You don’t need to be everywhere — just pick the channels that suit your business and your customers.

Build your online presence

Start with the basics:

• Set up a professional website or landing page.
• Claim your Google Business Profile (so you show up in Maps and local searches).
• Add your business to online directories.
  • USA Small Business Directories
  • UK Small Business Directories
  • AU Small Business Directories
  • NZ Small Business Directories
• Use social media to attract local customers.

Social media is a powerful tool for small trade businesses — especially in visual or trust-based industries like locksmithing.

• Facebook: Great for local targeting, customer reviews, and promoting time-sensitive offers.
  How to Market Your Trade Business on Facebook
• Instagram: Ideal for before-and-after photos, lockouts, rekeys, or showcasing specialist work.
  How to Market Your Trade Business on Instagram
• TikTok: Perfect for showing behind-the-scenes skills, tool tips, or quick wins that make you stand out.
  TikTok for Tradies: How to Market Your Business

Consistency is key. Posting once a week with quality content will beat daily spammy posts every time.

Don’t underestimate offline marketing

While digital is important, offline marketing still works — especially in your local community.

• Use branded vehicle wraps so people see your business while you’re out on jobs.
• Drop flyers at local businesses, real estate agencies, and building sites.
• Offer referral discounts to loyal customers or property managers.
• Leave professional-looking business cards or magnets with every completed job.

Offline Marketing Ideas for Trade Businesses

Handy templates:

• Flyer Template
• Business Card Template

Marketing doesn’t need to be expensive — but it does need to be intentional. Set aside time each month to track what’s working and adjust your efforts accordingly.

8. Review, reflect, and grow

Starting a locksmith business isn’t a one-time event — it’s an ongoing process of learning, adjusting, and improving. The most successful business owners regularly step back to reflect on how things are going and where they want to head next.

This doesn’t need to be complicated or time-consuming. Set aside time every month or quarter to ask yourself a few key questions:

• Are you hitting your income goals?
• Which types of jobs are most profitable or enjoyable?
• Is your schedule sustainable, or are you burning out?
• What systems are slowing you down or could be improved?
• Are your marketing efforts bringing in the right kind of work?

If something isn’t working, adjust. Your goals may evolve over time — and that’s a good thing! The freedom to shape your business around your life is one of the biggest advantages of working for yourself.

Starting a locksmith business is a big step, but with the right preparation, tools, and mindset, it’s one that can lead to a rewarding and flexible career. From legal setup to quoting, marketing, and growing your team — you don’t have to do it all at once. Start where you are, plan carefully, and keep adjusting as you go.

Tradify is here to support you every step of the way. Whether you're a solo operator or planning to grow a full team, our all-in-one job management software is built to help trade businesses thrive.

Start your free 14-day trial of Tradify or book a free demo.