The things you regret most in life are the risks you didn’t take!
The things you regret most in life are the risks you didn’t take!
If you are considering starting a security company, this is the best time for it.
With the rising threats and risks, more and more people are looking for security services that can be trusted to keep their businesses, properties, people, interests, and assets safe. The hike in security concerns has boosted the need for reliable security guard services and hence it is wise to set up a security business if you have the required resources.
Now you may ask what the required resources are and what it takes to set up a security business. Well, this step by step guide is made with the pure intent to help you understand the security industry in which you would operate as a player and also the nitty-gritty of starting a private security company. From knowing different security guard services to creating a security business plan, obtaining a security business license to ensuring all security business checks are done, the guide covers all aspects of security business setup.
So, where do you start? Well, it is recommended that you start by understanding the different types of security services available in the market that you can offer. Here are the details!
One of the important aspects of setting up a security business is having a clear understanding of the security guard services available in the market. Depending upon the type of security services you choose to include in your security services business profile, your company will fall in one of the below-mentioned security company categories:
If you are willing to offer security services to individuals, you would fall under personal security. Providing security to a group of people or working as a bodyguard for an individual is a type of personal security.
Safeguarding the client’s property falls under this category. The security company here uses a range of security gadgets and technologies including cameras, motion sensors, heat sensors, and alarm systems.
Providing technology-based solutions for automobile security is another service vertical of the industry. Under this vertical, companies utilize GPS technology, biometric car locking systems, as well as car locking systems that work with a remote.
Providing security solutions to events, parties, and get together or personal, commercial, or political nature falls under this category.
Under this category, the company offers security services to check the luggage, passengers, and other personnel entering and exiting an airport.
While the market for security services looks shiny from a distance, the stiff competition in the market is not easy to deal with. Setting up a security company is not as easy as you might have thought. From thorough market study and research to a solid security services business plan, understanding of modern security needs of customers to the analysis of the security services companies already operating in the market, a lot goes into setting up a security guard company.
When you set up a security service business, there are several rules and specific demands of the local and national authorities to meet. Different areas/ counties/ districts may have different requirements and depending upon your choice of area, you must be able to fulfill the criteria. Here we have compiled a list of tips that would prove helpful for you in your quest to set up a security guard firm.
What security services will you offer?
As explained previously in this article, there are distinctive security services and you must choose the one you would like to offer. Although you can become a one-stop solution for security guard services and related services, it is recommended to start small at first.
Depending on the services you choose to offer, you will have to obtain a security business license and fulfill other requirements. You can choose to offer aviation security or provide security solutions to businesses as per your capabilities. Conducting a thorough research of the services, their demand, competition, and scope is important to make an informed decision.
What will be the business model?
The choice of security service business model decides your future as a security provider in the market there are several approaches that one can follow. Here are some significant examples of business models:
What permits and licenses will you need?
As soon as you have decided on the security company business model, you must think of the licenses and permits you will need. Different requirements are depending on the state, nation, and special areas you prefer to deal in. There are different sets of laws, and acquiring the license and permits is crucial to operating as a legitimate security services company. For example, if you are setting up a security business firm in British Columbia, you must comply with the security industry licensing requirements. You can approach your state’s Attorney General to get a clear understanding of licenses and permits.
What will be your business plan?
A strategic security services business plan is the backbone of your establishment. The plan includes details of the market you will operate in, what customers you will deal with as well as the competitors you will fight against. The security guard business plan would be your guide to proceed towards a more profitable security business.
Adding your expectations of business growth is also crucial along with the identification target market with ample potential clients. You must also study your competitors in details-what the business model they have, the business plan they follow, their pricing models, marketing strategies, security business technologies they use, as well as service/s they offer.
Finally, the business plan must have a detailed financial budget. The budget must include the cost of operations in the particular areas including the wages of security guards, cost of operations, security equipment required as well as licensing and insurance fees.
Where will you get the funds?
An essential part of your business setup would be the funds you have to fuel your business. You must be able to self-fund the business or have credible investors. Obtaining a handsome working capital and reserve funds in advance is always recommended.
It is noteworthy that self-funding is not an available option for most entrepreneurs. Hence, obtaining funds from lenders and banks is the right way. However, when you approach the lenders, make sure you are well-prepared with a presentation of your business plan as well as a great credit score.
What technology and equipment will you need?
Depending upon the type of services you prefer to offer, you will have to procure equipment and technology. For instance, if you are offering armed security services, you will have to procure arms and arm’s licenses. Similarly, for security at the gates and airports, you will need to invest in metal detectors, luggage scanners, and more.
Also, automation is a modern requirement for many businesses. In terms of the security industry specifically, workforce management software is an important asset. The software allows you to monitor, track, and record, and evaluate your security guards and processes with minimal manual intervention. This saves you resources and at the same time boosts profitability.
How will you market your business?
The final step of the process to set up a security business is marketing. Nowadays, marketing plays a vital role in the success of any business. Top-notch security services combined with solid marketing strategies give you the desired boost in your business. For marketing, some of the essentials you must consider include:
Some additional requirements:
There are several miscellaneous requirements that you will have to fulfill before you kick start your business. This includes procuring an employee identification number (EIN), state tax identification number (TIN), a bank account in your company name, payment method, business insurance, payroll module, and more.
It is not easy to set up a security business but with a systematic approach, it can be done in a hassle-free manner. Effective research and knowledge of licenses and permits play a crucial role. Additionally, you will also need funds and a marketing plan to succeed. Hope this guide proves helpful for you and you have a flourishing security business running in no time.