Last updated on August 29th, 2019
The business of a security company is to provide a host of services aimed at giving protection to residential and commercial properties and even to individuals. However, if you are thinking how to start a company to provide security services, you need to take careful steps. When starting the enterprise, every move right from taking legal permission to arranging of funds and promoting the business needs to be made precisely.
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.
The security industry is growing fast with the increasing need to secure properties and individuals from potential threats and criminal activities. Now, the industry is providing cyber security services also, which has widened the scope of business. In the U.S, the security services industry generated a revenue of 34 billion dollars in 2017. During the year, the global security services industry earned around 116 billion U.S dollars of revenue. These statistics encourage entrepreneurs to enter in the field of providing security services.
Few Things To Keep In Mind
While it is true that the demand for security services is increasing rapidly, still, starting a security company is not an easy task. First, the competition in the industry is tough. Many entrepreneurs enter this field in the hope of getting an early success. But most fail to give their company a good start simply because they could not succeed the competition.
A common reason why many such companies fail is that they ignored some basics. Many of them entered the business without researching the market. They had little understanding of new security needs of people. Such companies had no strategic business plans. Learning from their failures, you should first have an insight of the security industry. This will help you in deciding on some specific services that are more useful to your customers. Overall, you must have all details of the industry, business, and market.
When you start a security business, 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.
Wondering how to start a security company?
Here Are 10 Tips On How To Start A Successful Security Company
01. Decide On The Type Of Security Business
When starting a security company, the 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 a 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 a thorough research.
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02. 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 of 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 security company with no external controls. When you decide to build the best security company of your own, 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.
03. Get Permits And Licenses
One of the very first things that you think when you plan how to start a company is to get the required 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.
04. Create An Impressive Business Logo
Customers first see a logo on a product or service before buying it. They do so to establish the authenticity of what they are buying. The business symbol plays a crucial role in building a brand identity of a company. Therefore, make it a point that logo design of your security startup is unique, memorable, and stunning.
When creating the logo, make sure that it is a simple design, having only a few colors and fonts. It should also be scalable so that it looks great on billboards and does not lose the fine details when printed in a smaller size.
05. 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 the profitability of the business. There should also be 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.
06. Obtain Funds
You cannot run your security company without first securing a good amount of fund. All private security companies that are doing well these days had good amount of fund before starting off. Gathering money from own sources is often difficult. Not many relatives and friends are willing to contribute towards a business whose credentials are not established yet. So, most entrepreneurs depend on a bank loan, which is not difficult to get. If you boast of many years of experience, banks will surely consider you for a loan.
However, go to a bank well prepared. Take all the essential documents of your business such as registration with the authority, and legal papers. Do not forget to bring your mission statement to the bank. If you have already a list of clients, take that also along with you as it will be an extra help in getting an approval of the loan.
The bank may also require you to display your business plan in graphics such as slides. So, get online graphic design services of experienced professionals, to present your plan in a simple but attractive graphics to present your case strongly.
07. Put Your Business On A Website
Having a website to establish your business credential is necessary for these days when everyone is using the web to search and shop. Your potential clients would like to visit your website to get your company details before they contact you. In fact, most of them will consider your company as the best security company and make their mind to hire your services after getting the details online.
But not all websites compel people to buy services. If it takes more time to load, the visitors will click some other site. If the site pages have irrelevant images and insufficient information, it fails to retain visitors for a longer time and won’t drive customers.
So, get a creative website design for your business. Such a site stands out in many ways from your competitors’ sites. Not only the design concept is unique, the layout of images and text also is strategically planned.
08. Promote On Social Media
Social media has become the essential business promotional tool not just for startups, but even for well-established companies. They use different social channels including Facebook and Twitter, the two most popular for marketing, to connect with people. You can find potential buyers of your services on different social channels. All you need to do is to post some information or attractive price offers on your Twitter page or Facebook page etc. You will soon build a good following on these pages. Many of them may inquire about your services.
However, your social media page design stands out so that it makes a good impression about your venture. There are many social pages on the web. But your page should look unique because of its design layout to display images and text content that has a visual appeal.
09. Build A Solid Customer Base
Winning the trust of your customers is important for your security company. They must have full faith in your ability to protect their residential and commercial properties. If they have some doubts about the security technology you use or they consider your company unprofessional, it will ruin your business prospects. So, make sure that your clients are fully satisfied with your services. Such clients will recommend the services to others. This helps in building your solid customer base in the end.
So, conduct your business in a professional manner. For example, when your clients meet you, present them your contact details in your card. That is your opportunity to make a good impression on them. But your business card design should be created to impress your clients. Its design must be unique and memorable. Similarly, create your other brand identities such as logos that stand out and convey your company’s brand message.
10. 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. All private security companies, or any company, as a matter of fact, should have this EIN.
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.
After you are ready to launch your security company, you will need to create a wide range of visual identities such as a logo, business cards, website, etc. To create these identities, one of the trusted platforms for small businesses like yours is Designhill.
You can start your design contest on the crowdsourcing platform to get dozens of new designs from as many designers. You are able to get a winning design in a short period and at a low price.
Other requirements include opening a bank account in your company name, picking a payment method, business insurance, deciding if you want to opt for payroll services or modules, etc. Buying a business insurance can be complex. But Cubit Insurance, one of the leading business insurance companies makes it quick and easy for companies.
Work in a systematic way if you are thinking how 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.