How To Start A Security Business In 11 Easy Steps

Are you looking for some tips on how to start a security business?

You have reached the right place. In this article, you will find everything you need to know about starting your own security business.

Security services are in high demand in our contemporary society. Think about it: Which business or institution does not need security guards? More than businesses, housing societies or condominiums cannot simply do without it.

Even some individual homeowners are looking for security services to protect their property in both urban and rural areas.

A security company is, by definition, a business that offers unarmed and/or armed security services to clients in the public or private sectors.

These businesses primarily provide guard and patrolling services, including bodyguard, parking lot security, guard dog, and security guard services. Several of them even offer advanced special operations services as per client requests.

These companies provide services such as the prevention of unauthorized entry or activity, access control, and traffic regulation, as well as the detection and prevention of theft, burglary, and fire.

Other security services, including roving patrol, bodyguards, and guard dog services, are also included, but they represent a very small portion of the industry. During the COVID-19 pandemic, certain security firms also provided services for the vaccine supply chain.

Whether a business or homeowner seeks to protect their staff, valuables, or assets, or to deter potential threats even before they develop, security services are always necessary. Indeed, the possibilities are limitless and financially lucrative.

The market is growing steadily and rapidly. Alone in the United States, security services generated $35 billion in revenue in 2018. In the same year, approximately 1,054,400 security guards were reportedly employed.

After 2022, the number has increased by 21%, with an indication that it will increase further in the near future. Currently, the security industry is estimated to make $100 billion a year and is projected to grow up to $200 billion by 2025.000000000000000

Clearly, starting a security business has a massive potential to earn profit in the current market environment. But to ensure the desired profit, you need to start the job right.

In other words, you must be aware of the technicalities and legal requirements of starting a security agency and follow them to the T.

As such, there is much more to starting a security business than simply managing a team of guards. Let’s examine how to successfully launch a security company in 11 simple steps.

1. Conduct A Thorough Market Research

If you want to start a business—any business, for that matter—the first task you should take up is conducting market research. Market research will reveal whether your business idea has the potential to be profitable.

This is a method for gathering information about your potential customers and local businesses. Utilize this data to discover a competitive advantage for your security business.

Building on the data you gathered from the research, determine what kind of security services are most in demand in your chosen area, and from that, decide what type of service you are going to offer.

The most sought-after security services are:

Home Security
Personal Security
Automobile Security
Event Security
Armed Security
Unarmed Security
Patrolling Security Services
Bodyguards
Video Surveillance Operator
Aviation Security

Choosing the type of service you are going to offer will also help you identify your target customers and design your marketing strategy.

2. Write A Business Plan

Once you’ve determined your target market or niche, you should begin drafting your business plan. A business plan is a document that describes the organization’s structure, function, and other operational details.

This document can serve as your primary business plan and help banks, investors, and potential business partners better comprehend your company’s objectives.

A professional and well-organized business plan could aid in securing startup capital through loans or investments. If you have never created a business plan before, you can seek the assistance of a business attorney.

Your business plan must include the following sections:

Executive Summary: This section should provide a concise summary of your entire business plan so that readers can quickly grasp the essentials of your concrete business.
Business Overview: This section discusses the history of your concrete company and the type of security business you operate. For instance, are you an armed or unarmed security service? Are you going to provide security for residential or commercial properties? These responses will assist you in shaping your business.
Industry Analysis: Here you will find essential information regarding the security industry. Conduct market research and document the industry’s size and influencing trends.
Market Analysis: In this section, you will describe the demographics of your ideal or target market. For example, what is their age? Where are they located? What do they value most when purchasing products or services similar to those you will provide?
Competitive Analysis: In this section, you will outline the direct and indirect competitors you will face, as well as how you will gain a competitive advantage.
Marketing Plan: Your marketing strategy should address the four Ps: product, price, promotions, and place.

Often referred to as the marketing mix, these four components will help you develop a marketing strategy for the security business, considering a wide range of factors like what customers want, how the service meets or fails to meet those demands, how your service is perceived around the world, how it stands out from the competition, and how the company interacts with its customers.
Financial Plan: More than anything else, you need to develop a clear financial plan for your security agency. You can start by answering the following questions:

What initial expenses will you incur?
How will your concrete company generate revenue?
What are your sales and expenses projections for the next five years?
Do you require funding for the launch of your business?

You should know precisely how much money you need to launch your private security business, as well as how much you’ll need to earn each month, quarter, or year to cover your expenses and generate a profit.

The launch budget should account for all anticipated expenses, such as office space rental, staff training costs, insurance, uniforms, specialized equipment, business card printing, etc.

Additionally, you should map out your sales projections for the first three years, as well as appropriate time intervals, such as monthly. Once you have these numbers, you will be able to determine what funding you need to secure to launch your business.

You could utilize personal savings, private loans from family and friends, bank loans, loans from specialized lenders, or a combination of these.

3. Choose A Name for Your Security Business

Choosing a business name is the first step in launching your security agency.

This is a crucial decision, as your company name will serve as your brand for the duration of your business. Ideally, you should select a meaningful and memorable name.

Here are some guidelines for naming your own concrete business:

Check to see if the name is available: Check trademark databases and your state’s list of registered business names to see if your desired name is available. Check whether an appropriate domain name is available.
Keep it simple: The best names are often those that are easy to remember, spell, and pronounce.
Consider marketing: Create a name for your business that reflects the desired brand and/or focus.

4. Choose A Legal Structure

Next, you must choose a suitable legal business structure for your new concrete business and register it along with your business name with the Secretary of State in each state in which you operate.

You may select from the following five common business structures:

Sole proprietorship
Partnership
Limited liability partnership (LLP)
C Corporation
S Corporation

5. Register Your Business

Once you have picked the right name and business structure for your security agency, it is time to register your organization and make it official.

The majority of small businesses can register their business by registering their business name with state and local governments. Some states allow you to register online, and some states make you file paper documents in person or through the mail.

In the majority of states, you must register with the Secretary of State, a business bureau, or a business agency. Remember that if you fail to register your business, you could lose personal liability protection, tax benefits, and legal advantages.

6. Get the Necessary Permits and Licensure

Unless you have previously worked in law enforcement, you will typically need experience in the security field. Further, certain permits and licenses may be required to operate a security business in a given state. Before beginning operations, you must obtain the following general permits:

Registering your company’s name: Work with the Small Business Administration (SBA) to register the name of your business.
Get your EIN: Your EIN (Employer Identification Number) is your Employer Identification Number. Comparable to a Social Security Number (SSN) for your company. Your EIN provides multiple advantages, so obtain one immediately.
Get your business license: Verify with your state to obtain a business license.
Compliance with the Occupational Safety and Health Administration (OSHA): To maintain compliance, review OSHA’s specific training requirements, and ensure that you have met them all to maintain compliance.

Apart from these general permits, you need to secure a few special licenses if you want to start a security business. Depending on your location, different licenses may be required of you. This includes
Security Guard License: You must demonstrate that you are capable of performing all security guard duties and responsibilities. In California, for instance, training in the power to arrest and 32 hours of training in security guard skills must be obtained through a course approved by the California Bureau of Security and Investigative Service.
Private Patrol Operator License: You must demonstrate that you have the necessary skills and experience to operate a private or public security guard company. In Michigan, for instance, you must be at least 21 years old, possess a high school diploma or its equivalent, and have no felony convictions.

Additionally, you must have at least four years of experience as a security guard supervisor above the rank of patrolman.
Qualified Manager License: Your security guard company must be managed by an individual who possesses a valid security manager license for all services your company offers. For instance, you may offer armored car, guard, alarm, and guard dog services in Texas. Consequently, the qualified manager must have at least two years of consecutive experience in each service.

Ensure that you have all the necessary documentation for each of the licenses listed above! To avoid unanticipated costs, be sure to verify the fees applicable to both options.

7. Open A Business Bank Account And Apply For A Business Credit Card

Using business-specific banking and credit accounts is essential for protecting personal assets.

When you combine your personal and business accounts, your personal assets (such as your home, car, and other valuables) are at risk if your business is sued. This is referred to as “piercing the corporation’s veil” in business law.

In addition, learning how to establish business credit can help you obtain credit cards and other financings in the name of your business (rather than your own), better interest rates, larger credit lines, and more.

8. Get Insured

Similar to licenses and permits, your business requires insurance to operate legally and safely. Your company’s financial security is safeguarded by business insurance in the event of a covered loss.

There are a variety of insurance policies designed for various business types with varying risks. Start with general liability insurance if you are uncertain about the types of risks your business may face.

This is the most common coverage that small businesses require, so it is an excellent starting point for your company. Workers’ compensation insurance is another important policy that many businesses require.

If your business will have employees, your state will likely require you to carry Workers’ Compensation insurance.

9. Create A Marketing Strategy

To launch your private security agency successfully, you need to first consider branding. This should include a memorable name and a professional, eye-catching logo.

The logo can then be used on all marketing materials, such as uniforms, business cards, and vans, as well as your website, social media pages, and any promotional activity.

Your marketing strategy must include tactics for targeting the appropriate audience with the most pertinent message. This may involve digital or print media advertising, email marketing, direct mail, or social media.

As part of your business plan, you should have determined who your target market is, what publications they read, and where they search for new security suppliers.

This information should be utilized to its maximum potential in your marketing plan to increase awareness of your business and its offerings.

The essential marketing materials you will need are:

Logo: Invest time and effort in creating an attractive logo for your security company. Your logo will be printed on business stationery, business cards, and other marketing materials. The right logo can increase customer confidence and brand recognition.
Website: Similarly, a professional website for a concrete business provides prospective clients with information about the products and/or services you provide, as well as your company’s history and contact information. Importantly, keep in mind that the design of your website will affect how your customers perceive you.
Social Media Accounts: Create social media accounts in the name of your company. Accounts on Facebook, Twitter, LinkedIn, and/or other social media networks assist customers and others in locating and interacting with your security company.
Business Listings: List your business on Google My Business and other listing sites such as Yelp, Yelloowpages, etc.

10. Gather Your Resources

To start your security business, you need to hire the right security team. All frontline security personnel must possess the appropriate SIA qualifications and licenses; therefore, either hire individuals who already possess these or develop a training plan.

You must also conduct background checks on prospective security personnel to ensure they have no criminal history. A thorough screening procedure at the outset ensures that you hire the most qualified candidates and avoid fines and problems in the future.

Other than security guards and camera operators, you will also need some tools and equipment. Some of the commonly used equipment for a security agency includes

Uniforms
Badges
Identity Cards
Walkie-Talkie
CCTV Cameras
Digital Cameras
Flashlights / Penlights
Notepads and Pen
Batons
Pepper Spray
Tasers
Guns (for armed security)

11. Sign Up for A Security Business Management Software

In the same way that you need the proper equipment to run your business, you will also need digital tools to conduct your operations efficiently. This is a terrible waste of time, money, and resources for most businesses, including security firms.

All of this points to the conclusion that automating your business from day one is the best way to get off to a quick start and increase profitability.

Therefore, choose the fantastic, all-inclusive solution designed specifically for security guard companies, known as security business management software.

Essentially, it is a tool that helps automate and streamline your business processes. Utilizing the tool, you can increase the efficacy of tasks such as scheduling and dispatching, monitoring, time-tracking, business analysis, reporting, billing, and invoicing, etc.

It also offers advanced features such as GPS tracking for real-time employee monitoring, cloud storage for managing and accessing databases from anywhere, and Quickbooks integrations. It can also be used as estimating software due to its superior estimation capabilities.

Using this software will, in a nutshell, significantly increase your productivity and efficiency. Moreover, this smart digital tool will streamline your workflow, allowing you to focus on more important tasks such as expanding your business and attracting new customers.

Wrapping Up

In any industry, starting a new business takes a lot of time, work, and, most importantly, money. However, by breaking it down into simple, actionable tasks, the prospect seems less daunting.

Now that you have read our 11-point guide on how to start a security company, why not turn your passion for offering extraordinary services into a thriving security business?

Author Bio:
My name is Joy Gomez, My world is made up of codes. It is the central element that drives my universe. I am a self-taught, process-driven programmer with a creative bent of mind. Since I was an engineering student, I dreamt of creating something unique.

To satiate my creative appetite, I took to coding. Blessed with abundant support and generous scholarships from my employers, I simultaneously worked full-time and pursued my dream.

My passion and high productivity helped me in my journey as well. Finally, I created Field Promax to follow my drive of coding and streamlining processes; and do more of what I know best—coding.