Key Making Workshop Business Plan

Own business, albeit small, at this time has become far from a pipe dream. Opening a small shop or workshop is not difficult, because you will have to spend a little money on the business. All that is required is a little knowledge in the chosen business, which can be obtained by engaging in self-education. Therefore, a key production business that does not require large investments and experience appears as a good, rather promising idea. This is because keys are an irreplaceable trifle in life, and such trifles are often lost, which makes you turn to the masters.

Business relevance and benefits

Various breakdowns, loss of keys are common things for most citizens. And this is what affects the relevance of the business, which remains popular regardless of the season, holidays, and other factors.

The relevance of the workshop is also determined by the large number of keys that each person has with him. They can be from an apartment, car, summer cottage, garage, and so on. And as a result, the entire bundle disappears without a trace, forcing you to go to the master for duplicates.

Business advantages:

• Small start-up capital – for opening, an amount of 100,000-150,000 rubles will be required, which pays off in 3-4 months of work.
• Simple business design.
• Profitability and return on investment.
• Investments in the process of work are minimized.
• Business expansion opportunity.

At the same time, not to mention the fact that the workshop has no big drawbacks. Perhaps competition and the search for the first clients – but this is expected of any entrepreneur in every area and is decided by the right choice of location and advertising.

Market analysis

A well-thought-out business plan is based not only on one idea, but also on the analysis of the market, target audience, and competitors. The more information you can get, the easier it will be to open a business, set the cost of services, and take a niche.

After analyzing competitors, you can understand that many are choosing an unusual area. Some workshops are no longer oriented towards apartments, but towards private houses, gates, barns.

In the summer, many workshops make not only keys but also barn locks with keys. This approach allows you to increase your profit.

It is necessary to analyze the place where the opening is planned. In practice, many districts of entertainment centers are not occupied by such workshops, so opening in an empty area can be quite promising.

Target audience of the business

At its core, the business of creating keys, locks, sharpening tools is a niche aimed at all categories of individuals. In such a business, cooperation with companies and firms is very rare.

Visitors will mainly be people who need to make a new key in a short period of time. Large orders may come from offices, but they will be quite rare so you shouldn’t rely on them too much.

Business competition

One of the main advantages is considered to be a high margin at a low production cost. Key making is a business that can generate up to 90% of income from one key.

To be a worthy competitor, you need to create quality products at good prices.

One of the most popular products is the sale of flat English keys and intercom keys. Such blanks should always be at hand to ensure fast customer service.

How to advertise a workshop?

An advertising campaign occupies an important place in any business, and a key-making workshop is no exception. In the industry, the best option is to use eye-catching outdoor advertising.

But you can refuse advertising in any media, it will not be so effective under the given conditions.

The main focus is best on:

1. Street pavement signs.
2. Posting ads for the area in which the business is located.
3. Bright signboard.

You can also create a workshop website where the client can view all the services offered and their prices, find out the address and other contact information.

Workshop opening step by step

Before starting a business, you will need to draw up a business plan, which will clearly describe all the nuances and risks of the business. The opening schedule was also drawn up, including design, selection of premises and personnel, purchase of equipment and consumables, recruitment of personnel and an advertising campaign.

It is important to take all points with the utmost seriousness in order to avoid mistakes when starting a business.

Workshop registration, required documents

The first point in starting a business is official registration as an individual entrepreneur or LLC. For small businesses, registration as an individual entrepreneur is suitable; this will require documents:

• Applicant’s passport.
• INN.
• Statement.
• Receipt for payment of state duty (800 rubles).

The form of taxation for the workshop can be selected by the UNDV (single temporary tax).

Also, when registering, you must specify the OKVED codes suitable for work:

• 6 – production of cutlery, knives.
• 63 – making locks, hinges.
• 7 – manufacturing of metal products.
• 4 – retail trade in stores.

Selection of premises

The next step is to rent a workshop space and renovate it if necessary. When choosing a room, you need to pay attention to the flow of people passing by. The place needs to be busy.

You can rent a small space in a shopping center, equip a basement near markets, train stations, universities.

Due to the compactness of the equipment, it is not necessary to rent a large room; it is important to equip the foreman with a workplace and leave space for clients entering. Five square meters will be enough.

The design of the room can be left unchanged because in such a business it is not the room that is important, the proposal is important.

Purchase of equipment

One of the most costly parts of a business plan is purchasing the necessary equipment to create a workplace for the foreman.

You will need to buy:

• Vertical machine – 35,000 rubles.
• Universal machine – 55,000 rubles.
• Key duplicator for intercom – 25,000 rubles.
• A set of tools – 10-15,000 rubles.

You can buy used equipment, but no one can guarantee how long it will last. Machine prices may vary due to the set of built-in functions.

In addition to machine tools, you will also need the most common tools, such as a vice, a file, needle files, and sharpening circles. You also need to take care of the protection of the master – purchase protective glasses and clothing.

Staff recruitment

If an entrepreneur has the skills to make keys, locks, sharpen tools, then he may well run his own small business. But if such skills are absent, then you will need to find a master who will be engaged in manufacturing.

It is best to hire an already experienced foreman so that there are no hiccups in production and you do not have to train him from scratch.

What services to provide?

Often such workshops do not work, focusing only on making keys. A standard set of offers:

• Production of keys for apartments, private houses, from the intercom.
• Creation of car keys.
• Production of duplicate locks for safes.
• Service of emergency opening of door and safe locks.

Additionally, the workshops offer:

• Sharpening of knives and scissors, various tools.
• Refueling lighters.
• Repair of watches, shoes, umbrellas.
• Retail trade in accessories – key chains, key cases.

Usually, you won’t earn much by making only keys, so entrepreneurs are forced to take additional measures to increase profits.

Financial plan

Any business plan contains an important part with the calculation of expenses and income, payback, and profitability of the business.

You should not neglect its preparation, because this may affect the future opening when the entrepreneur’s start-up capital, for example, may not be enough and the business will stall halfway.

Initial investment in the business

To open a workshop, you will need a start-up capital to solve the following issues:

1. Business registration – 800 rubles. (IP) or 4000r. (LTD).
2. Rent of premises for two months – 15,000-30,000 rubles.
3. Purchase and installation of equipment – 120,000 rubles.
4. Advertising campaign – 5,000 rubles.
5. Purchase of consumables – 10,000 rubles.

In total, to open your own workshop for making keys, you will need a start-up capital of 160,000 rubles.

Monthly expenses

Monthly or recurring expenses are easy enough to calculate. Based on average prices, you will need:

• Rent payment – 15,000.
• The salary for the master is 10-20,000 rubles.
• Additional purchase of material for manufacturing – 5,000 rubles.

The amount of regular spending will be 40,000 rubles.

Workshop income

Key making business with average profitability. On average, for one key made, the master takes 100-120 rubles, with a cost price of 10-20 rubles. The profit of such a business depends on the number of customers who come to the workshop and place an order.

By installing a workshop in a place with high traffic, you can get from 50 clients per day, which on average will bring a monthly income of 70-80,000 rubles. You can get a net profit of 30-40,000 rubles a month.

Potential risks in business

Such a case is quite relevant, the demand for it does not fall. At the same time, demand does not depend on the season, holidays, and other circumstances.

The risks in the workshop are focused on one possible problem – the experience of the craftsman and the quality of the completed orders. Not the best option for saving on the equipment used and the purchase of material. If your product breaks or deteriorates, the buyer will never return.

The location chosen for the opening is also important – a location close to competitors or a point of low traffic can be a fatal decision for the owner.

Expansion prospects

A key-making workshop is exactly the kind of business that is easy enough to expand. It is not difficult to create such establishments throughout the city, even from the deferred profit of the first point.

It is important to establish yourself among clients, come up with a catchy name and trick.

High-quality services at a reasonable price, speed of order fulfillment will be the main advantages that should be given maximum emphasis, having a desire to expand your own network.

From all that has been said, it becomes clear that the production of keys as a business is an urgent matter, which has all the prerequisites for the stable development of the network and reaching a large profit. The industry is well developed, which makes it easy to open. It is important that such a business will flourish for many years to come because the population’s need for keys and similar services do not dry out. All possible risks are associated mainly with the experience of the master, which is solved by a careful selection of employees. The rest of the business is attractive, whatever you look at it. With a small start-up investment, it pays off in 3-4 months of work and begins to bring net profit to the owner. Of course, it is impossible to get a lot of revenue from one workshop, but no one bothers to develop in the chosen direction.