Every business needs security. If you’re in doubt, name one that doesn’t need a security team. Whether the business is looking to protect its employees, valuables, or other assets, having a level of security within a business’s establishment is always a necessity. This in-depth guide will show you everything you need to know about how to start a security company. So if it’s something that you’ve always had in mind, sit back, relax, and read on!
Security helps deter potential threats and ensures that everyone feels safe and secure. It may not receive much praise or attention, but it’s definitely in high demand. So, if you’re looking to venture towards the business realm and make a name for yourself, why not consider the one thing every business needs?
So you’ve now fixated your mind on establishing a security company. But where or how do you start from here? What are the things you need to consider to hit the ground running? Establishing a security company is no easy task. You need to take into account many things, and it’s definitely not as simple as putting up a few signs and hiring some guards. You’ll need to have an understanding of the industry, your local laws and regulations, and what services you want to offer.
Why Start a Security Company?
It may not seem obvious, but starting a security company right now is a solid business idea. Just think about it: the global health crisis continues to change the way people live and work. Now, businesses are looking to fortify their security measures more than ever before.
This is where you come in! You can offer professional security services to help businesses protect their employees, customers, and assets. And if you’re well-prepared for the industry changes that are sure to come, you’ll be in a great position to succeed in this growing market.
Starting a security company gives you the opportunity to operate your business in a range of different niches, including:
- Bodyguarding (armed or unarmed)
- Public surveillance (CCTV)
- Private investigation
- Event security
- Mobile patrol
- Loss prevention
- Asset protection
- Corporate security
The possibilities are vast, making this business venture quite a lucrative one. In fact, a recent 2018 survey claims that the security service generated a revenue of $35 billion in the United States alone.
At the same time, around 1,500,000 security guards were employed throughout the country. So not only are you earning a fortune, but you’re also helping the community by offering jobs to people.
Costs Involved in Starting a Security Company
At this point, you’re probably wondering just how much money it will take to start a security company. Truthfully, the costs involved can vary greatly depending on what services you want to offer and the size of your business.
Generally speaking, you’ll need to set aside around $20,000 for licensing and insurance fees, as well as for marketing and advertising your business. You’ll also need to purchase equipment and uniforms for your security guards, as well as security cameras and other surveillance systems.
Depending on the size of your company, you may also need to consider hiring employees (or contracting them out). And don’t forget about office space! All of these costs can quickly add up, so it’s essential to have a clear idea of your budget and what you’re aiming to achieve with your security company.
Steps On How To Start a Security Company
Now that you have a better understanding of what’s involved in starting a security company, it’s time to get started! Here are the basic steps you need to take:
1. Choose a Security Service to Offer
Before starting your security company, you will have to decide what services you want to offer. Do your research and find out what types of security services are in demand in your area.
2. Get Licensed and Insured
To legally operate a security company, you must obtain the necessary licenses and insurance. This can vary depending on your location, so be sure to do your research beforehand.
3. Create a Legal Entity
To protect your assets, it’s essential to create a legal entity for your security company. This can be anything from a Limited Liability Company (LLC) to a Corporation.
4. Set Up Your Business Structure and Operations
Once you have your legal entity in place, you will need to set up your security company’s business structure and operations. This includes hiring employees, setting up a billing system, and creating standard operating procedures.
5. Name Your Business
Once you have created your legal entity, it’s time to choose a name for your security company. Make sure the name is catchy and easy to remember.
6. Register for Taxes
Before starting operating your security company, you’ll need to register for various state and federal taxes. This can include income tax, FICA tax, and unemployment tax. Visit the IRS website for more information.
7. Set Up a Business Bank Account
To keep your finances separate from your accounts, you’ll need to set up a business bank account for your security company.
8. Purchase Equipment and uniforms
Once you have registered for taxes, it’s time to purchase your security guards’ necessary equipment and uniforms. This includes handcuffs, batons, firearms (if needed), and of course, the all-important security guard uniform!
9. Market and Advertise Your Business
It’s essential to market and advertises your business to attract customers. Use online marketing tools, print advertising, or even word-of-mouth marketing to get the word out there.
10. Get Proper Licensing
Depending on where you will be providing security services, you may need to obtain additional licenses and permits. Be sure to research this ahead of time to avoid any surprises. Potential licenses that you’ll need to acquire include a Security Guard License, Private Patrol Operator License, and a Qualified Manager License.
11. Secure the Proper Equipment
Your security company will depend on the equipment you and your employees will need. For example, you might need some of the following: Apparel, Flashlights, Defense Gear, Handcuffs, Surveillance Cameras, and Systems.
12. Create a Business Plan
It’s always essential for any business to have a business plan in place. This will help you track your progress and stay on track with your goals and objectives.
13. Get Insurance
Your company also needs to have liability insurance to protect you from potential lawsuits. That way, you can rest assured knowing that you’re covered in case of any unfortunate incidents.
14. Get Funds for Your Company
If you can’t provide 100% of the money you need to start and run your security company, you can always look for funding options. There are several grants and loans available specifically for small businesses.
15. Establish an Online Presence for Your Business
To get the maximum reach for your security company, it’s essential to have a strong online presence. This includes creating a website and social media profiles for your business.
16. Create an Employee Handbook
To ensure that your employees are properly trained and know what is expected of them, you’ll need to create an employee handbook. This will outline the policies and procedures of your security company.
17. Train Your Employees
Once you have all the necessary equipment and training, it’s time to start training your employees. This will include dealing with difficult situations, how to use firearms (if needed) properly, and first-aid training.
18. Secure your Billing
At the end of the day, the goal of every business is to get paid. That’s why it’s also essential to make sure that you have a secure billing system in place for your security company. This could include invoicing, online payments, or even credit card processing.
Automate Your Security Company Billing With ReliaBills
To guarantee that your security company stays open for business, you need to have consistent and reliable cash flow. So if you’re already serving multiple clients regularly, you should consider fortifying your billing capabilities by incorporating the quickness and efficiency of automation. That’s where ReliaBills comes in – we make it easy for you to get paid on time, every time so that your company can keep running smoothly without any interruption.
If you’re looking for a simple and effective way to automate your billing process, then look no further than ReliaBills! You can easily send invoices, process payments, and receive the money owed to you in minutes with our service.
When you upgrade to ReliaBills PLUS, you also get to enjoy additional features like recurring billing, which will help to ensure that your security company stays afloat. So why wait? Sign up for ReliaBills today and start getting paid faster, easier, and more securely!
Wrapping Up
Providing security services is one of the hottest businesses right now. If you’re sold on the potential of this line of business, then don’t hesitate to try it out and see what opportunities lie ahead of you and your business goals. Use this article as a guide to help you get from starting to running your security business as soon as possible!
