Do you want to start a security company? If yes, you have landed at the right place. Here in this article, you will find all the steps to follow to start a successful security business with costs, licenses, how to set up, and more.
The world has turned into an unsafe place over the years. Companies and residences often need to take the help of security firms to help them protect their properties and assets. The security industry is growing rapidly and there is an immense demand for the services. As per the Bureau of Labor Statistics, in the United States alone more than 11 million people are employed in this industry.
If you are planning to start your security firm, there are several aspects you need to take care of. From the legality to funding to promotion, the whole process of setting up a security firm is divided into multiple stages. Here’s a detailed stepwise explanation of how you need to start a security company.
Here are the 12 Steps to Start a Security Company
1. Do Your Market Research
Several companies are operating in the market to offer security services, but most of them fail to deliver quality service. The primary reason is poor market knowledge. You need to understand what your customer wants. You can’t afford to enter the business without any market research. Security needs have evolved and you need a proper strategic business plan.
Before diving into any business venture, it is critical to conduct thorough market research. It will help you to identify the target market, assess the demand for security services in your area, and evaluate the competition. Understanding the market dynamics will help you tailor your services and develop a competitive edge.
2. Select Your Services
Based on the information collected from the market research, decide on the specific security services you want to offer. Some of the services your upcoming security company can offer are as follows;
- Manned Guarding Security
- Access Control Security
- Provide Surveillance Systems Security
- Alarm Response Security
- Event Security Security
- Executive Protection Security
- Provide Security Guards
In addition, you need to define the scope of your services based on market demand and your expertise.
3. Create a Business Plan
A security company can offer an array of services. You can either choose a specific service and specialize in it or offer multiple services at a time. Initially, you can start by offering a single service like data security from the possibility of theft. You can specialize in a single service first and then expand with other specific services. A well-researched business plan will help you to scale up accordingly.
Some of the important topics that must be addressed in your business plan document are the following:
- Type of services offered
- Target customers
- Pricing strategies
- How do you plan to market your security services?
4. Choosing a Proper Location
To get your legal paperwork done, you need to have a physical location. Multiple licensing applications will require a business location and you have to show that you already have a location. Lease a place or rent a business place. While choosing a location for your security company, do compare the prices and locational convenience. Give it a professional look to attract more customers.
In addition, equip it with the necessary technology, communication systems, surveillance equipment, and office furniture.
5. Regsiter your Business
Your firm will also have to follow the standard techniques of business management and networking. Choose an appropriate business structure under which you are going to operate your security company. For example, if you are from the United States, forming an LLC will provide you with certain extra benefits.
6. Obtain Necessary Licenses and Permits
The security business needs several permits and licenses. So, you have to do your complete legal work before operating commercially. The laws differ from one state to another. So make sure all the necessary legal conditions are laid down in this regard. There are some strict rules and regulations for companies offering security services.
You need to research and comply with the licensing and permit requirements for security companies in your jurisdiction. This may involve obtaining security agency licenses, background checks, liability insurance, and adhering to local regulations. It is advised to consult with legal professionals to ensure compliance.
7. Naming Your Business
The name of your business will play a major role in attracting customers. You have to name your security business in a way that an organization can trust you. Remember that your business name should resonate with trust and faith in the customers. Invest your time wisely to finalize a name. Also, make sure it has an online domain available with the same name as other social media handles.
8. Hire Manpower
Next, you need to hire qualified staff, including security personnel, administrative staff, and management team members. Hiring security staff has to go through screening and background checks. Simultaneously, your security firm has to pass the Federal Bureau of Investigation checks to be operational.
9. Invest in Training and Equipment
It is mandatory to invest in the training and certification of your security personnel. Develop comprehensive training programs to ensure they are equipped with the necessary skills to handle various security situations professionally.
You will also need the necessary supplies and equipment for your business as well. This may include cameras, uniforms for staff, monitors, and other stuff. The items will depend on the type of security business.
10. Financing Your Security Firm
As a matter of fact, starting and running a security business involves a sizeable investment, though it largely differs in terms of size and the facilities you will offer. You can opt for a franchise or can start your own independent security business. As a franchise, you will get a proven business model, but if you plan to start your own, you have to work from scratch. If you are from the United States and planning to take up a loan, try opting for a long-term plan.
11. Buy Insurance
You need to have liability insurance to operate commercially. Also, the investment makes sense as it will protect your business firm against any sort of legal compilation. Compare the liability insurance plans available and see which one is viable for your firm.
The coverage is decided by the state, so make sure you follow the state’s regulations.
It’s better to go for a liability insurance plan which has a minimum of $25,000 for bodily injury and $25,000 for property damage.
Just like liability insurance, several states also need workers’ compensation insurance for a license. Many insurance companies offer a combo plan with liability insurance. There is several workers’ compensation insurance available in the market. Compare the prices and reviews to choose a final plan.
12. Promote your Security Company
Now it’s time to promote your business. Start by putting out the world, and initially work on brand awareness. Let people know what you offer and about your facilities. Create a website for your security company. Use social media to build a presence on the internet. Engage with the audience even if they are not your customers. You can also run ads on the Internet to attract more customers.
Finally, it must be mentioned that you need to try your best to differentiate your security company by delivering exceptional service quality and prioritizing customer satisfaction. You have to develop strong communication channels and establish protocols for handling client inquiries and emergencies. Furthermore, try to improve your services based on client feedback. Do remember, the success of a security business lies in its quality of service.
Security agencies take time to be established. Start by building your business and work on offering quality products and security services.
What is the Cost of Starting a Security Company?
The startup investment will depend on various factors. It includes the scale of operations, location, equipment needs, and regulatory requirements. However, on average, the upfront cost to start a small security company will be in the range of $15,000 to $20,000.
What qualifications are required to start a security company?
The qualifications may vary based on your jurisdiction, but generally, you may need to meet specific licensing requirements, undergo background checks, and provide evidence of training and experience in the security industry.
How can I attract clients for my security company?
Utilize various marketing strategies such as networking, online presence, targeted advertising, and referrals. Build relationships with potential clients, emphasize your company’s expertise and reliability, and provide exceptional customer service.
How much can I earn from a security company?
It is without saying, the earnings will depend on the quality and type of security services you offer. It is seen, reputed security companies make around $50,000-$70,000 per security guard in a year. However, you have to include insurance costs, salaries, licenses, and legal costs to find the net profit.
About the Author: 99businessideas.com led by Rupak Chakrabarty is committed to helping beginners, entrepreneurs, and small business owners in starting, managing, and growing their businesses.