More and more companies and organizations are looking for ways to protect their property and interests from violence, robbery and other crimes. As security concerns increase, more and more business opportunities are opening up for entrepreneurs who want to start a security business.
The security industry is growing rapidly as the need to protect real estate and individuals from potential threats and criminal activity grows. Now the industry is also delivering cyber security services, which has expanded the business scope.
In the U.S., the security services industry generated $34 billion in revenue in 2017. During the year, the global security services industry generated approximately $116 billion in revenue. These statistics encourage entrepreneurs to engage in the provision of security services.
Just a few things to keep in mind
While it is true that the demand for security services is growing rapidly, setting up a security company is not an easy task. First, competition in the industry is fierce. Many entrepreneurs enter this field in the hope of early success. But most fail to get their business off to a good start simply because they have been unable to compete.
A common reason why many such companies fail is that they have ignored some fundamentals. Many of them entered the business without exploring the market. They had little understanding of people’s new security needs. Such companies had no strategic business plans. If you learn from their mistakes, you should first get an insight into the security industry. This will help you choose services that are more useful to your customers. Overall, you need to know all the details of the industry, the business and the market.
When you start a security company, you must meet certain conditions set by the authorities. Each state government has its own strict rules and regulations for the operation of companies providing modern security services. They must meet licensing and training requirements. In addition, you will also follow corporate governance and networking techniques to successfully run a security company.
Are you wondering how you can start a security company?
Here are 10 tips on how to start a successful security company.
01. Decide on the type of security transaction you want to set up.
When you start a security company, the startup should select a category of services you want to offer to customers. Don’t start by offering a whole range of services for which you may not have sufficient funds and other resources. So choose the right type of security company.
For example, many companies want to protect their data from possible theft. Your company can offer security services for Internet technology, which is a growing business. If you have the experts who deal with cyber security issues, think about deploying these services.
You can also consider deploying alerts and monitoring services for internal security. You can start by offering these services even with small capital in your hands.
How about your startup offering security services to large or small businesses? To do this, you hire specialized security personnel.
So choose the type of security services your company would provide for in-depth research.
02. choose the right business model
Which of the existing security business models would you prefer to pursue?
For example, you can choose to acquire a company that is already active in the security business. One advantage of this model is that the company’s customer base, reputation, inventory and perhaps some property is ready-made for you.
Otherwise, you can decide to buy a franchise. This option is good if you want to be an independent business owner. The franchise company offers you the infrastructure such as office and coaching.
Another option is to set up your security company without external controls. If you decide to build your own best security company, you are responsible for making every decision from the first to the last step. For this you should be prepared to invest a lot of time.
03. receive approvals and licenses
One of the first things you think when you plan how to start a business is to get the necessary permits and licenses. You need to have some important licenses and permits to run your security business. Each state has its own laws. So, find out what are the conditions that have been set by your state in this regard.
For example, if you want to run your security business in California, the state requires you to complete a 40-hour training course. You must also pass your background checks from the Federal Bureau of Investigation. If the company is to be incorporated in Georgia, apply for a license from the Board of Private Detective and Security Agencies. Visit your country’s public prosecutor to find out about the specific requirements.
04. create an impressive corporate logo.
Customers first see a logo on a product or service before they buy it. They do this to determine the authenticity of what they are buying. The corporate symbol plays a crucial role in building a company’s brand identity. So make it a point that the logo design of your security startup is unique, memorable and stunning.
05. receive a business plan
Create a precise business plan in good time. The plan must give you a clear picture of the market and the customers. In addition, it should show how you would make progress in setting up your business.
You should also clearly mention your expectations regarding the profitability of the company. There should also be clear guidelines for locating potential customers in the marketplace.
06. raising funds
You cannot run your security business without first securing a good amount of capital. All the private security companies that are doing well these days had a good amount of capital before they were founded. Collecting money from your own sources is often difficult. Not many relatives and friends are willing to contribute to a company whose references have not yet been established. Most entrepreneurs are dependent on a bank loan that is not difficult to obtain. If you have many years of experience, banks will certainly consider you for a loan.
But go to a bank well prepared. Take all the important documents of your company with you, such as registration with the authorities and legal documents. Don’t forget to hand in your mission statement to the bank. If you already have a list of clients, take this with you, as it will be an additional help in getting the loan approved.
07. put your business on a website
Having a website to track your business numbers is necessary these days when everyone uses the Internet to search and shop. Your potential customers want to visit your site to get your company information before they contact you. In fact, most of them will consider your company the best security company and make their decision to rent your services after receiving the details online.
But not all websites force people to buy services. When it takes more time to load, visitors click on another site. If the site’s pages contain irrelevant images and inadequate information, visitors will no longer be tied to themselves and customers will not be driven.
08. advertising in social media
Social media has become an indispensable instrument for promoting business not only for start-ups, but also for established companies. They use various social channels such as Facebook and Twitter, the two most popular for marketing, to get in touch with people. You can find potential buyers of your services on different social channels. All you have to do is publish some information or attractive price offers on your Twitter or Facebook page etc. On these pages you will soon build a good fan community. Many of them can inform themselves about your services.
09. building a solid customer base
Winning the trust of your customers is important for your security company. You must have complete confidence in your ability to protect your residential and commercial properties. If they have any doubts about the security technology you use or think your business is unprofessional, it will ruin your business opportunities. So make sure your customers are fully satisfied with your services. Such customers will recommend the services to others. This will ultimately help you build a solid customer base.
10. Perform some basic tasks
You also need to perform certain basic tasks so that your security company can get up and running.
For example, you need a State Tax Identification Number (TIN) to register your company and obtain permission to open the company’s bank account.
You will also need an Employee Identification Number (EIN) to register your company with the tax office so that you can start hiring employees for your company. All private security companies, or indeed any company, should have an EIN.
Further requirements are the opening of a bank account in your company name, the selection of a means of payment and the decision as to whether you want to opt for payroll services or modules.
Work systematically when thinking about how to start a security company. You should do some research to know about the type of security services you want to offer, given your budget. Make sure that all requirements like licensing, infrastructure like office and other aspects are done in advance.