The demand for private security services is increasing by each passing day due to concerns about rising graph of crime and terrorism. More and more businesses and organizations look for the ways to keep their properties and interests safe from violence, robberies, and other crimes. With the security concerns rising, there are more business opportunities opening up for the entrepreneurs who want to start a security company.
However, when you start a security company, you have to meet certain conditions laid down by the authorities. Each state government has its own strict rules and regulations for running the companies that offer modern security services. You must meet the licensing and training requirements. In addition, also follow the techniques of business management and networking to run a security business successfully.
As far as business potential in the field of providing security services is concerned, an enormous opportunity is awaiting your company. According to a study, the revenue of the security service industry in the U.S was estimated to reach to 25 billion dollars in 2014. Security alarm services alone generated 17 billion dollars in the U.S between 2008 and 2014. These stats should encourage you to start your own security company.
Here Are 6 Tips On How To Start A Successful Security Company
1. Decide On The Type Of Security Business
Security companies offer a vast range of security services. Your security startup should pick a category of the services that you would like to provide to the clients. Do not start offering an entire gamut of the services for which you may not have sufficient funds and other resources. Therefore, pick the right type of security business.
For example, many businesses want to secure their data from possibility of a theft. Your company can deliver Internet technology security services, which is a growing field of business. If you have the experts to deal with cyber security issues, think of providing these services.
You can also think of providing home security alarms and monitoring services. You can start offering these services even with small capital in hands.
How about your startup providing security guard services to big or small organizations? For this you will be hiring specialized security personnel.
So, select the type of security services your company would be providing after a thorough research.
2. Pick A Right Business Model
Which of the existing security business models would you prefer to follow?
For example, you can choose to acquire a company that is already doing security business. A benefit with this model is that the company’s customer base, reputation, inventory and perhaps some property is available to you ready-made.
Else you can opt for buying a franchise. This option is good when you want to be an independent business owner. The franchise provider company will offer you the infrastructure such as an office and coaching services. Some of the popular security franchises in the U.S are Signal 88 Security, The AmeriCop and Background Screeners America.
Another option will be to set up your own business with no external controls. When you decide to build your own security business, you are responsible for taking every decision right from the first step to the last. For this, you should be willing to invest a lot of time.
3. Get Permits And Licenses
You must hold some crucial licenses and permits to operate your security business. Each state has its own set of laws. So, find out what are the conditions laid down by your state in this regard.
For example, if you want to operate your security company in California, the state requires you to complete a 40-hour training course. You will also need to pass their background checks from Federal Bureau of Investigation. If the company is to be started in Georgia, you will apply to the Board of Private Detective and Security Agencies for the license.
Visit your state’s Attorney General to find out the specific requirements.
4. Create An Impressive Business Logo
Your customers will identify your security company and its business immediately when they see its logo. A logo is useful for a company’s business in many ways. It becomes a visual symbol of the business and it helps build your brand identity also. Therefore, make sure that your startup company’s security logo design is unique and memorable to make an impact on the potential clients.
If you have no budget to hire expensive graphic designers, then crowdsourcing sites such as Designhill are useful platforms where you can access creative logo designs at affordable costs.
5. Get A Business Plan
Write an accurate business plan well in advance. The plan must give you a clear picture of the market and customers. In addition, it should tell how you would be moving forward in establishing your business.
You should also clearly mention your expectations regarding profitability of the business. There should also be a clear guidelines for locating the potential clients in the market.
The plan must also present an analysis of your competitors. Mention their pricing, marketing material, logos, websites and other things in your business plan.
Do not forget to include a detailed budget for running the security company in the early months. The budget should mention the local insurance rates, the number of employees you will hire and the type of security equipment you will need. Include the cost of opening the office also.
6. Get Some Basic Tasks Done
You will also be required to fulfill certain basic tasks so that your security company starts functioning.
For example, you need a state tax identification number [TIN] to register your business and get the permission for opening the company’s bank account.
You will also need an employee identification number [ EIN ] to register your business with the Internal Revenue Service so that you start hiring people for your company.
Other requirements include opening a bank account in your company name, picking a payment method, deciding if you want to opt for payroll services or modules.
To conclude, work in a systematic way if you want to start a security company. You should do some research to know about the type of security services you would like to offer, given your budget. Make sure that all the requirements such as licensing, infrastructure such as office, and other aspects are taken care of in advance.