This is a vital business since many individuals and companies don’t have enough resources to provide security. For the hourly services offered by security guards, fees are typically charged per hour. Based on the number and quality of security guards employed for clients, the prices will go up.
Towards the end of this article, you’ll find answers to some of the most frequently asked questions on how to start a security business…
Now that you have the right business idea, it is time to move on to the next steps. It is not enough to register your security business with the state.
The steps below will help ensure that your security company is adequately planned, registered, and legally compliant.
To be a successful entrepreneur in any industry, you would need a clear business plan. It will help to map out your business and identify potential problems. The following are essential points to be aware of:
It is relatively inexpensive to start a security company. Insurance is the most expensive cost.
It can cost as much as $3,000 for a 6-month contract. Legal and regulatory fees will cost approximately $500.
There are a variety of costs for essential equipment and uniforms. The price for basic equipment and uniforms is minimal if the guards own their firearms. A used handgun can be purchased for as low as $100 or even a few thousand dollars.
Uniforms are about $100 per law enforcement officer/ security guard.
Some laws, both local and national, require that security companies have an office. This can be minimized by using small, shared-space offices. It will cost several hundred dollars a month to rent a shared office, depending on where you are located. The cost of dedicated offices can reach several thousand dollars monthly.
Operating security services doesn’t require a large office. It is essential to only have the space that you need.
Marketing materials for the business will cost anywhere from $1,000 to $2,000.
Websites are an additional cost that you should look into. You can expect to pay between $300 and $500 per website. Hosting should cost less than $100 per year. In many cases, hosting can be purchased for significantly low.
There are very few ongoing expenses in this business. The majority of the costs you will incur are insurance, an office, salary, and other expenses.
Security companies are often hired by wealthy clients with valuable property to protect. These clients typically include businesses that keep helpful information, tangible items, and people within their premises.
In rare cases, an individual could hire a security company to protect them, such as a local or nationally famous person or political figure, or CEO of large companies.
Security guard companies usually have a range in prices depending on the services they offer. An hourly rate for unarmed security is between $10-25. For armed protection, the hourly rate can be as high as $100 if it is a highly-risked event or special.
Clients can also be charged in other ways. A higher total fee can be charged for services when security contracts are included, including both short- and long-term contracts. Companies may charge “by the job,” which means that they are charging a contract fee. These fees may be as high as several thousand dollars per contract.
In some cases, the client may pay monthly, semiannually, or annually to receive services. The contract can be renewed for many years. This is a good scenario and provides stable long-term revenue for the business.
For established clients, per-contract fees are typically reserved.
A job’s security personnel can also affect the amount you can charge clients. Many companies will charge more for additional security guards.
Some of the business structures that are commonly used include sole proprietorships, partnerships, limited liability companies (LLC), and corporations.
If your software development firm is sued, you can avoid personally being liable by forming a business entity, such as an LLC or business corporation.
You can create an LLC independently and only pay the state filing fees or hire an LLC Service provider. Additional fees may apply.
In order to start a business, you must register with multiple federal and state tax authorities. To register for taxes, you must have an EIN.
There are many options available for taxation, depending on what business structure you choose. An example of this is an LLC that could be taxed as an S Corp.
Below are a few guides to help small business owners learn more about taxes:
It is crucial to protect your personal assets by opening dedicated credit and bank accounts for business purposes.
Mixing personal and business accounts places your home, car, and other assets at risk. This is known in business law as piercing your corporate veil.
Furthermore, learning how to build credit for your business can help you get credit cards. You can finance your business with other funding in your company’s name (instead of your own), higher interest rates, better credit lines, and many more.
It is essential to record all expenses and income sources to understand your business’ financial performance. Your annual tax filings will be much easier if you keep accurate and detailed records.
Failure to obtain necessary permits and licenses can lead to heavy penalties or even the termination of your business.
A license or permit from a state may be required to operate a security business. Find out more about licensing requirements in your area by visiting SBA’s reference on state licenses and permits.
Get information about local permits and licenses:
A security guard company should require that clients sign a service agreement before starting any job. This agreement should clearly define client expectations, minimize legal disputes, and include payment terms and service expectations.
Security guard businesses often have an office where clerical functions are performed. Often, Businesses that work from a physical location need a Certificate of Occupancy (CO). A CO verifies that all building codes and zoning laws are met.
If you want to lease a site:
If you want to buy or remodel a place:
Insurance is essential for your business to operate legally and safely. Your company’s financial security is protected in the case of a covered event.
Many insurance policies can be used to protect different types of businesses and various risks. General Liability Insurance can help you determine the risks your business faces. This coverage is what small businesses most commonly need. It’s an excellent place for you to start.
Another crucial insurance policy that businesses require is Workers’ Compensation Insurance. In most states, workers’ compensation insurance is required.
Your brand is your company’s identity. Your business image also depends on how the public perceives it. A strong brand can help you distinguish yourself from other companies.
Security companies often rely on referrals, social media, and direct mail to get business. Ask your local mail list broker for information about businesses that have previously hired security companies. Send your offer to these companies. Sending flyers and handing out business cards can be another option.
It’s an excellent way for security companies to stand out among the crowd. What number of companies hold special events in your locality? If you are the only one doing special events in your area, you will get all of the business. Your area will definitely require for an event security provider.
Once you have defined your brand and designed your logo, you will need to make a website for your business.
Some people may be afraid of creating a website, even though it is an important step. Although this was a reasonable concern back in 2015, it has become much less common in recent years.
These are the main reasons to build your website now:
Having your own company phone line helps keep your personal and business lives separate.
Aside from helping you automate your business, it also gives it credibility, and it makes finding and contacting potential customers easier.
Entrepreneurs can choose from a variety of services to set up their business phone system.
This business is for those who are passionate about personal and professional security. If you are this person, you can definitely start a security company. There’s no need to study criminal law to qualify.
However, you may need to work extra hours or have unusual schedules like weekends and nights.
The business might not be suitable for those with family obligations and other obligations outside the traditional 9-5 workday.
SecurityOfficerHQ estimates that a startup security company will cost $7,500 to set up. This includes an upfront investment in insurance, shared office space, six-month licensing and legal registrations, and equipment marketing and website development. As per BPlans, the estimated startup cost is approximately $77,000..
Starting a security business can be lucrative. Security companies can earn from approximately $40,000 to $60,000 per security guard every year. You may be able to generate $300,000. If you have 5 security guards in your startup, that’s a potential revenue of $300,000. Your insurance costs, labor cost, and regulatory costs affect your net profit.
The global security services industry in 2018 was valued at 128 million U.S. Dollars.
Although security services are indeed in high demand, starting a company can be difficult. First, there is a lot of competition in the security sector. A lot of entrepreneurs enter this industry in the hopes of achieving early success.
Security officers are considered private citizens and are subject to the same laws as the citizenry they are hired to serve. Because of this, they are not permitted to present themselves as law enforcement officers or police officers and are prohibited from doing so.
It is relatively inexpensive to start a security business. For $10,00, you can start your security company. Insurance is the most considerable expense to launch your own business. The cost of insurance will depend on where you live.
Start a security guard company in 10 steps:
Our review team has come across a program in the real estate industry that is next level!
Although it’s not real estate in the traditional sense, it’s all digital.
With this digital real estate program, you can have the ability to completely walk away from manual labor!
Sound too good to be true?
Of course it does!
But it isn’t…in fact, business owners wish they had this skill!
All you have to do is build and rank a website and forward the jobs off to a business owner in town, you could even email it to them!
This works for literally any service based business, tree service, plumbing, towing, etc.
Simple, after you forward the jobs off to a business owner and he makes some money off of them, you simply ask to make the deal beneficial for each other.
A fair price to charge per lead, depending on the industry is 10-20%…let’s just use the tree service industry for example and go by worst case scenario.
Let’s say you build and rank the site and only 20 jobs a month come in. The average tree service job is anywhere from $500-$2000!
That means at bare minimum you have an asset worth $1000 a month!
See why they call it digital real estate now?
That’s a rent payment.
The great thing is how easy it is to scale. You don’t have to answer the phone…all you have to do is get the phone to ring.
Unlike the passive income ideas I mentioned earlier…
This one actually allows you to collect that without working in a brick and mortar business all day.
Truly passive income!
The training program takes making money online to a whole other level. The owner of the program walks you through how to build and rank a site hand in hand, with the occasional voice over when he is sharing his screen.
You will learn the importance of keywords, website name, how to send call notifications via email, backlinking, etc.
Once the training program is completed you will also have access to a Facebook group where you can ask questions and be in a community with others on the same journey as you.
Digital real estate allows you to have passive income with most of your day being spent OUT of the brick and mortar landscape.
Now, I know you probably have tons of questions… So, check this out to learn more.