Your own business: making keys. Making keys as a business from A to Z

* The calculations use average data for Russia

150,000 ₽ Starting investment

80,000 - 100,000 ₽ Revenue

60,000 - 75,000 ₽ Net profit

3 months Payback period

Key making is a business with a low barrier to entry and high profits if there is a flow. By investing 150 thousand rubles, you can earn more than 70 thousand rubles per month.

Providing small household services to the population remains a popular line of business. If you are looking for a simple business idea with minimal investment, then a key cutting workshop may be a suitable option. The idea is working, proven over the years, but not so widespread that you have to worry about competition. With proper organization, a workshop can become a stable and profitable business.

Local market analysis

Before you open a business, you should definitely familiarize yourself with the conditions in which you will work. This is why market analysis is necessary. With its help, you will collect information about the industry and your competitors, which will help you in your future work.

At the stage of collecting information, study the market for the presence of competitive companies, decide on the possible scope of work, evaluate the location of the workshop, and become familiar with the price level.

Assess demand and earnings prospects. There is always a demand for making keys, so the key maker’s workshop will not be left without work. Therefore, when opening his own workshop, an entrepreneur can count on a stable, albeit relatively small, income.

Evaluate the benefits of a business idea. Why choose this particular area? Why is it worth opening a key making workshop?

• the demand for such services is constant and does not depend on the season, holidays, etc.;
• income from such activities, although small, is quite stable;
• an initial investment of 150 thousand rubles can pay off in just 3-4 months.
• running such a business is quite simple and can be done alone;
• risks are associated only with subjective factors (low quality of service, wrong choice of location). It is much easier to manage such risks, which means they can be avoided.

Assess your capabilities. Typically, key making workshops are opened by those who already have experience as a tool maker. Despite the simplicity of the business, you need to have skills to fulfill orders efficiently. Then you will earn more. If you do not have such qualifications, you will need to undergo training.

The main secret of success is the correct location. To do this, you need to choose a crowded place that is located away from competitors. The main competitors are other private workshops. To succeed in this business and stand out among competitors, rely on a good location, fast service and competitive prices.

Before we begin

People who already have jobs in this field open their own key-making workshops. If you do not have the proper qualifications, you should undergo training. Some key cutting machine manufacturers offer training on how to use their equipment, but this is clearly not enough.

There is always a demand for making keys; it is only important to locate your workshop as far as possible from the nearest competitor. Study equipment proposals, try to make the most realistic profitability forecasts, and write a business plan.

Registration of a key making workshop

Any business starts with registration. To do this, you need to choose a certain form of business activity and taxation system. For a key making workshop, it will be enough to register an individual entrepreneur, indicating the following OKVED code:

• 28.63 — Production of locks and hinges
• 95.29.42 - Repair of metal haberdashery, keys, license plates, street signs

As a taxation system, you can choose the simplified tax system or UTII in order to submit a minimum of documentation and pay a minimum of taxes. Experienced entrepreneurs advise choosing UTII to simplify work with documents. Then you will have practically no accounting, because it is cash payment and UTII. Just note that the conditions for UTII in different regions are different, so you need to consider this option according to your specific conditions. Also keep in mind: if you plan to use hired labor, then you must register with the extra-budgetary funds of the Pension Fund and the Social Insurance Fund as an employer. In the future, you will transfer insurance premiums for your employees.

This is the main package of documents you will need. No more licenses or certifications are needed to make keys.

How to attract clients?

Opening a key cutting shop is only the initial stage. If 1-2 people apply per day, then even the rental costs will not pay off. It is necessary to promote the project and attract clients.

Key production is a local business aimed at the target audience of a residential area and people passing by, so the media, the Internet and other costly advertising options will be ineffective.

You can attract clients in the following ways:

1. Signboard – it should be moderately large, attractive and noticeable from several viewing angles.
2. Leaflets – the services of a promoter will be of little help in this case, so it is better to post leaflets on bulletin boards in the area where the retail outlet is located, and also distribute them directly to the mailboxes of adjacent apartment buildings.
3. Signposts, signs and other types of outdoor advertising that can be placed along the path of pedestrians.
4. Electronic sign – can be used as a replacement for the main sign or as an addition to it. This advertising ploy is especially effective at night.

The main emphasis when advertising a business should be on the quality of manufactured products and their affordable price.

Key cutting workshop location

High pedestrian traffic is the key to success for this business. 90% of clients search “blindly” and at the right moment remember where they saw the nearest key-making workshop.

Therefore, it is better to look for workshop space in crowded places. This:

• areas near public transport stops, underground passages, shops.
• premises near large markets, public institutions;
• area in a shopping center.

An area of ​​5-10 sq.m. is sufficient for a workshop. The main thing is that the master is comfortable. Machines for making keys are quite compact, but before choosing a room, you should decide on the equipment in order to take into account recommendations for the installation area of ​​each device. For machines, a power supply of 220 V is sufficient.

Renting a room can cost from 3 to 15 thousand rubles per month, depending on the city and the popularity of the place. But if you have capital, you can buy a kiosk where you will place your workshop. You will need 100-150 thousand rubles. This money is enough for a kiosk with an area of ​​2.5x3 m. To operate the rented premises where electrical machines will be installed, the appropriate permission from the fire inspectorate is required. No more permits or licenses are required.

Step-by-step opening of the workshop

Before starting a business, you will need to draw up a business plan, which will clearly outline all the nuances and risks of the business. An opening schedule has also been drawn up, including design, selection of premises and personnel, purchase of equipment and consumables, hiring 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 a small business, registration as an individual entrepreneur is suitable; for this you will need the following documents:

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

You can select the form of taxation for the workshop as UNDV (single temporary tax).

Also, when registering, you must indicate the OKVED codes suitable for the job:

• 6 – production of cutlery and knives.
• 63 – production of locks, hinges.
• 7 – production 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 lively.

You can rent a small room in a shopping center, or arrange a basement near markets, train stations, universities.

Due to the compactness of the equipment, there is no need to rent a large room; it is important to arrange a workplace for the master and leave space for clients coming inside. Five square meters is enough.

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

Purchase of equipment

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

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. Prices for machines may vary due to the range of functions built into them.

In addition to machines, you will also need the most common tools, such as a vice, a file, needle files, and sharpening wheels. You also need to take care of the protection of the master - purchase safety glasses and clothing.

Recruitment

If an entrepreneur has the skills to make keys, locks, and sharpen tools, then he can easily run his own small business. But if such skills are absent, then you will need to find a master who will do the manufacturing.

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

Equipment for a key making workshop

For high-quality and prompt service, the workshop requires special equipment. Different types of keys are made on different machines. There are combination and automated models on the market that are suitable for working with many types of keys. But such equipment costs an order of magnitude more, so it is cheaper to purchase three machines with a narrow focus. To get started you will only need three:

• Vertical machine. The cost is about 30 thousand rubles.
• Universal machine. The average cost is 50 thousand rubles.
• Key duplicator for intercoms. The average cost is 25 thousand rubles.

The market offers a variety of equipment manufactured in different countries. German machines are considered the highest quality, but they are quite expensive. The most budget option is Chinese-made equipment. But their quality is low. Therefore, it is better to purchase domestic equipment - this is the optimal price-quality ratio.

Also for work you will need metalworking tools: files, screwdrivers, vices, sharpening wheels, measuring instruments, a set of needle files, etc. You will have to spend 10-15 thousand rubles to purchase these tools.

To set up a workshop you will need stands, a counter for accepting orders, and a work desk. And this is another plus of 10 thousand rubles to the initial costs. In total, 100-130 thousand rubles will be required for equipment.

You will also have to spend money on consumables – key blanks. At the start, you need to stock up on various types of blanks worth 10 thousand rubles. Often, blanks are sold in large sets, which will last you for several months of work. But here it is important to figure out which blanks you will need, since different ones are suitable for each key and machine. To begin with, you can purchase minimum sets of all types and in practice determine which ones diverge during the work process.

To summarize: to fully equip a workshop you will need capital in the amount of 120-140 thousand rubles.

Relevance and benefits of business

Various breakdowns and loss of keys are a common occurrence for most citizens. And this is precisely 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 carries with him. They can be from an apartment, car, cottage, garage and so on. And as a result, the entire bunch disappears without a trace, forcing you to go to the master for duplicates.

Business advantages:

• Small start-up capital - to open you will need an amount of 100,000-150,000 rubles, which pays off in 3-4 months of work.
• Simple business registration.
• Profitability and payback.
• Investments during the work process are kept to a minimum.
• Possibility of business expansion.

At the same time, not to mention that the workshop has no big disadvantages. Perhaps competition and the search for first clients - but this awaits any entrepreneur in every field and is decided by the right choice of location and advertising.

Key cutting workshop services

If you don't know how to make keys, then there are several options to learn how to do it. You can get a temporary job as an assistant foreman and gain experience. Another way is to seek specialized training from machine tool manufacturers. The third, most expensive, but reliable option is to purchase a ready-made turnkey business. In this case, you will not only master the skills of a key holder, but also receive valuable advice on running a business. But you shouldn’t hope that a “ready-made turnkey business” is a guarantee of success. They can only give you the basics, but you will have to work with all this.

A key cutting shop can provide a variety of services. Usually, masters are not limited to just one service. This way the business has a better chance of paying off. The main services are:

• production of apartment keys;
• programming “locks” for intercoms;
• key recovery;
• production of duplicate keys;
• wholesale orders for hotels and various institutions.

You can expand your scope of activities and offer additional services to your clients. Their list is determined based on the skills of the master. How can a key keeper earn extra profit? Add as services:

• sharpening knives, scissors, etc.;
• repair of umbrellas, shoes, accessories;
• watch repair;
• emergency opening of apartments, cars, etc.

To provide additional services, you will have to purchase additional equipment, but the profit from them will cover the costs. In addition, expanding the list of services will make the business more stable.

Technology for making keys and duplicates

The principle of making keys is simple, because the main work is performed automatically on a machine. The operator only needs to set up the equipment and control the process. The sequence of actions is as follows:

1. The original key is placed in a special compartment of the machine, where it is securely fixed with a vice.
2. The workpiece is placed in another compartment.
3. The copying mechanism of the milling machine reads the configuration of the original, after which the key pattern is repeated on the workpiece.
4. The second side is processed in a similar way.
5. The final stage is cleaning the duplicate from burrs and microchips to prevent human injury during operation.

It takes no more than 5–10 minutes to recreate one key.

Help: making duplicates of intercoms and other electronic keys uses a similar technology, but it is based not on a physical repetition of the original drawing, but on copying electronic information from a medium to a copy.

Master key holder: is one enough?

Usually the key maker is the entrepreneur himself. But as the business develops, you can hire a qualified assistant or a replacement, because you will have to work every day. The salary of a hired key master in the regions is about 15 thousand rubles.

Making a spare key is usually required urgently. If a person comes to your workshop and it is closed, then the order will go to your competitor. Therefore, think over your work schedule in advance.

Here the question arises, which is more profitable? Save on wages for an assistant or cut down on workshop work by doing everything alone? There is no definite answer, since in each case the result may be different. Only practice will reveal which option is the most profitable. But experienced entrepreneurs advise not to rush into hiring staff. In the first months, the profit will be minimal - and it is not a fact that you will have funds left to pay the labor of hired personnel. This is only relevant if you consider the workshop as an additional source of income and do not intend to fulfill orders yourself. Then you will have to look for a qualified craftsman.

Workshop schedule and prices

In the service sector, demand and stable income depend on the ability of customers to contact them on any day and at a time convenient for them. The best schedule is from 8 a.m. to 9 p.m. Depending on the morning and evening rush hours in the city, the time can be shifted.

Customers will appreciate a master who can give the order to before work and pick it up after. There certainly should be holidays and weekends. If an entrepreneur works alone, it is better to develop one scheme: Saturday until 15.00, Sunday from 13.00, or Saturday is a day off, Sunday - from 9.00 to 17.00.

You will have to set the prices yourself. On average, the markup on finished products is 90%: a blank costs 10 rubles, and a finished key is sold for 100 rubles.

How to advertise your services

A key making workshop is a specific business from an advertising point of view. It does not require expensive marketing to attract customers. All that is relied on is a favorable location and outdoor advertising. At the same time, advertising is extremely important for this business. Because the workshop can only make a profit if a large number of people know about it. What should you do for this?

• Choose the right location;
• Placing advertisements in elevators is a low-cost but effective way;
• Use outdoor advertising: signboard, stand-up pillar, banners, etc.;
• Indicate the address of your workshop on various city portals and directories.

All other advertising will be ineffective and will bring you nothing but expenses. Sometimes masters forget about one very effective method of promotion. This is quality work. Use good materials and high-quality equipment, complete orders quickly so that word of mouth will work for you.

Expansion prospects

A key making workshop is exactly the type of business that is quite easy to expand. It is not difficult to create similar establishments throughout the city, even with the deferred profit of the first point.

It’s important to establish yourself among clients, come up with a memorable name and get the job done.

High-quality services at an affordable price and speed of order fulfillment will be the main advantages that you should put maximum emphasis on if you want to expand your own network.

From all that has been said, it becomes clear that key production as a business is a pressing matter, which has all the prerequisites for the stable development of the network and achieving greater profits. The industry is quite 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 does not dry up. All possible risks are associated mainly with the experience of the master, which is solved by careful selection of employees. The rest of the business is attractive, no matter how you look at it. With a small initial investment, it pays off in 3-4 months of operation 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 is stopping you from developing in your chosen direction.

How much can you earn making keys?

The profit of a key cutting shop depends on the number of customers. Since the order price is small, the entrepreneur will have to fulfill many orders per day - only then will he be able to earn normal money. And here we have to repeat ourselves - place workshops in accessible places. Such a point can serve 50-70 clients per day. With an average order price of 120 rubles, daily revenue will be 6-8 thousand rubles. But in practice, it turns out that a more realistic and achievable amount is approximately 4 thousand rubles per day. With a 5-day work schedule, you can receive revenue in the amount of 80-100 thousand rubles per month.

To calculate net profit, let's determine expenses:

• The cost of blanks is 10 thousand rubles;
• Rent of premises – 8 thousand rubles;
• Tax – 6 thousand rubles

Thus, our net profit for the month is equal to: 80,000 – 24,000 = 56,000 rubles per month.

Please note that you should not expect such profits before 2-3 months of work. People should get used to you, advertising should give the desired effect over time. In the beginning, most of your customers will be people passing by. Now let's calculate the payback period of the initial investment. To open a workshop you will need capital in the amount of 150 thousand rubles. This money will be used to purchase equipment, register a business, purchase supplies and pay for the first month of rent for the premises.

Payback period:

150,000 / 56,000 = 2.7.
That is, it will take 3-5 months to recoup the investment. These are quite optimistic figures. Return on investment:
56,000 / 150,000 = 37.3%. This level of profitability for a small workshop is a good result.

If you are planning to develop a business, then you should think about opening several points in the city. 3-4 workshops with a good location will allow you to earn decent money and minimize risks. But in this case, you will have to look for qualified craftsmen and add labor costs to the costs. However, all costs will be recouped in a few months.

Profitability

The price of one blank ranges from 10-17 rubles, depending on the type of key. The cost of making a duplicate for the client is 90-120 rubles. For the production of one key, a master earns 80-100 rubles.

Profit directly depends on the number of clients. In a walk-through location you can serve 50-70 clients per day. The norm is a monthly income of 60,000-80,000 rubles. These are very average, but very significant figures. Many entrepreneurs achieve payback after 3-4 months of work.

Risks of business in key production

When planning a business, you must take into account the risks that you may encounter. If you know about them in advance, you can take action. And this is much cheaper and easier than fixing problems in the future.

Risks specific to a key cutting workshop:

• errors when choosing a location. Since the right location is the key to the success of a given business, the wrong location can ruin the whole business. To prevent this, analyze each potential point. Decide who your target audience is and select the places where it is concentrated;
• active competition in the area. If there are competitors, you will lose orders and, accordingly, profit. Therefore, when choosing a location, take into account the proximity of competitors. It makes no sense to open next to another workshop. But no matter how you win with a place, there will still be competition in the market. To combat it, offer competitive prices, fast service, and high-quality work. Earn the trust of customers - and then it will be much more difficult for potential competitors.
• In order to open a key business and make money from it, you need to be a specialist in this field and have certain skills.

Choosing a location for a workshop

It is very important to choose the right location for your business. The number of clients, orders, the need for additional advertising, and therefore the profitability of the idea will largely depend on this. Choose crowded streets, close to public transport stops, metro, and train stations. You can open an establishment in a residential area, but it should be visible from afar and easy to find if necessary.

Pay attention to where your competitors are located. It is undesirable for 2-3 workshops with the same line of work to be located in the same area, on the same street. Today, it is more popular to rent space in shopping centers. If the cost for it is not too high, then you can choose this option.

The room size is 3-4 square meters. m. should be enough for a small workshop. But here a lot depends on how much work you are going to do per day and how much equipment is available. Each device is placed so that it is easy to approach.

Development prospects

Over time, when you gain a foothold in a given business sector, it is advisable to open several more points. In a small town, it is hardly worth holding several workshops, since no one can guarantee a significant increase in profits. At the same time, the costs of retaining them will increase significantly due to the hiring of new craftsmen, rental of premises and purchase of equipment.

Both individuals and representatives of various institutions (hotels, shopping centers, etc.) can use your services. Therefore, in some cases, making keys in bulk can attract additional customers.

It is advisable to expand the scope of services provided. You shouldn’t stop at just making keys. Here you can also provide services for repairing shoes, clothing, installing locks, sharpening knives, selling accessories and more.

Expenses and income

At this point, we will calculate the total costs, analyze investments and potential income, starting from 2-3 months, when the normal flow of customers begins. We will also calculate profitability, profitability and payback period of investments.

Start-up costs

Expense item	Amount, rub.
Decor	5 000
Rent of premises for 2 months	40 000
Repair (painting)	5 000
Purchase of commercial equipment and raw materials	115 000
Marketing and advertising	18 000
Total	183 000

Monthly expenses

Expense item	Amount, rub.
Renting premises	20 000
Communal payments	5 000
Salary Fund	15 000
Additional purchase of blanks	10 000
Advertising and Marketing	5 000
Total	55 000

In total, monthly expenses should be taken into account in the amount of 55 thousand rubles. In this case, it is necessary to set a service sales plan of at least this figure.

Income

For the first 1-2 months there will be a minimum of clients, most of them are people passing by who may need this service. Advertising will show results only after 2 months. So, for the 3rd month of work, the service sales plan is:

Name	price, rub.	Quantity	Amount, rub.
Finnish key	300	20	6 000
Flat single-sided key	250	50	7 500
Flat double-sided key	300	50	15 000
Cross key	300	10	3 000
Safe type key	400	3	1 200
Apartment special key	450	15	6 750
Simple tubular key	350	3	1 050
Tubular key complex	600	5	3 000
Electronic keys	1 000	5	5 000
Profile car key	700	10	7 000
Complex lever keys	1500	10	15 000
Punched keys	1500	5	7 500
Total	78 000

Next, we calculate the level of return on investment and the payback period.

We calculate the difference between expenses and income to determine tax deductions:

78 000 – 55 000 = 23 000.

Accordingly, tax deductions are equal to:

23,000 x 0.15 = 3,450 rubles.

Thus, our net profit is:

23,000–3,450 = 19,550 rubles per month.

We determine the return on monthly investment in our workshop:

(19,550 / 55,000) x 100 = 35.54%.

This profitability is generally acceptable for a small workshop. Every month it is planned to increase the number of customers and the volume of orders. We expect 100% profitability by 6-7 months.

Let's calculate the payback period for the money invested in the workshop:

183,000 / 19,550 = 9.3 months.

Within 9 months, the initial investment will pay off, even if the net profit does not increase, however, we predict a significant increase in the average check due to attracting more customers through advertising.

Market description and analysis

In order to draw up a clear business plan, you need to:

• analyze the market;
• find out information about competitors;
• study the pricing policy in the field of key production;
• calculate all possible costs at the beginning of the journey.

Reliable and up-to-date information will help you prepare a high-quality business plan and avoid unnecessary costs when organizing your own business.

Analysis of competitors shows that not everyone chooses the usual work pattern. Some workshops choose a seasonal system.

Orientation is carried out on:

• country houses;
• subsidiary farms;
• private sector houses.

At the beginning of the summer season, workshops make barn locks and keys for them. This allows you to get maximum income at minimum costs.

As for the choice of location, practice shows that key workshops are not located in all shopping centers and markets. Therefore, the services of such a business can become very popular in a particular area.

The target audience

Key production is a business whose consumers are most often individuals. Companies use such services much less often.

You need to understand that long-term orders (for example, when a company places an order for one hundred keys and picks it up a week later) will be rare. More often grandmothers, mothers with children and students who need to make a duplicate here and now will come to the workshop.

Competitive advantages

The main advantage of a key manufacturing business is that the profit from one duplicate can reach up to 90%. The cost of raw materials for the manufacture of a product is approximately 20%, and rental payments in comparison with the profit received are small.

Key blanks are most often purchased abroad, so their cost depends on the exchange rate. Accordingly, the sale of English flat and intercom keys is the most profitable.

And in order to outshine your business competitors, you need to strictly control the quality of the services provided by the workshop and make special offers to visitors.

Advertising campaign

The best solution is to focus on outdoor advertising. Expensive advertising in the media will not bring the desired result. A budding entrepreneur should consider placing a bright and informative sign in his business plan.

Guaranteed to attract new customers:

• pillars;
• advertisements on pedestals in nearby areas;
• spectacular workshop website design.

AFFILIATE PROGRAM

General information:

This program is designed for everyone who is engaged in, or wants to engage in, the business of manufacturing intercom keys. We offer to expand the range of services provided using our funds and specialists! After which we will work for you!! You continue to work and make a profit, but with greater monetary returns.

Advantages of cooperation:

• Having an ID and introducing yourself as Intercom Service increases the client’s level of trust in you, and as a result, more real orders! Please note that the certificate gives you the right to be considered a fixed-term employee
• A correctly composed ad, with the help of our consultants, increases the number of clients and, as a result, the amount of income!
• Legal support makes you savvy to any work situation and gives you confidence.
• A wide range of services is more popular among potential clients, as a result more calls, more profit

What we pay for:

We pay for 1 line in your advertising medium, this leaflet is pasted or thrown into a box, or handed out during an oral survey, or distributed in business card format.

The line is approximately this: “Installation/repair of modern handsets, video intercoms!”

They simply accepted the call and passed it on to us, and immediately received 20% of the order. This is on average from 500 to 5000 rubles per application, and there can be from 1 to 10 per day!

Regular, fair payments are your stability and our reputation!