What does it take to set up a security company?

I. Which business doesn't need security guards?

Whether a business owner is looking to protect employees, valuable assets or stop any potential threat before it develops, security guards are always a necessity.
When starting a security services business, there are a few things you need to have in place to get up and running. Here's our detailed guide to everything you need to know about starting your own security business the right way!

II. Why starting a security business in 2023 is a solid business idea

Think about it: the pandemic has (and continues to) change the world as we know it. Security companies have been dubbed the "fourth emergency service", going beyond the stereotype of nightclub bouncers arresting people at the club's doorstep. Establishing a security company gives you the opportunity to operate in many different fields that you may not know about, including:
Bodyguards, armed or not
Public space surveillance (CCTV)
Private investigation
Monitor the transportation of cash and valuables
Door monitoring
The possibilities are endless and can be financially lucrative. In the United States alone, security services generated $35 billion in revenue in 2018. That same year (last date of record), approximately 1,054,400 security guards were employed. But wait… What are the costs involved in starting a security services business?
There are many different potential costs that you need to consider when starting a security services business. But depending on the field you choose, you may not need all of the following:
Insurance for security guards can be up to 6,000 USD for 6 months.
Legal, regulatory and compliance costs can be as high as $500.
Equipment, uniforms (starting at about $100 each), as well as firearms and firearm permits (if required).
Regarding guns, if the guard has his own gun, you will have to reimburse him for the time he used the gun. If not, you can always buy a used gun (for a few hundred dollars). New guns can cost you thousands of dollars.
Office space: We recommend you consider sharing office space with other companies (check for co-working spaces in your area) to save some budget at first.
Marketing materials: Depending on how you market your services, this price can range from a few hundred dollars to a few thousand, at least when you're starting a security services business. Add to that the cost of building and maintaining a website, which can be around $100 per year for hosting, but can be more if you want to hire a freelance graphic designer.
Ongoing costs will likely include insurance, staff, and your office space. The price of a digital security guard management solution can vary depending on the size of your business and the features required. For example, Connecteam is free for security companies with 1 to 10 employees and includes a basic plan of $29 per month for up to 30 users.

III. The Basic 13 Step Guide: How to Start a Security Business

1. Select the security service provided
Before starting a security company, you need to decide what security services you intend to provide. Entering the security business without knowing what you can offer your customers will only end badly. Therefore, you need to know what services you will be providing so that you can ensure that you have the necessary funding and resources. You should consider looking at the following services:
Internet technology security services, such as network security
Home security and surveillance services
Fixed security service
Patrol Service
Crisis management
Once you choose an area of ​​security services to focus on, the rest of the process becomes much easier.

2. Establishment of a legal entity
Before starting a business, especially when starting a security services business, you need to register your business with the competent authority. Without registering with a legal entity, you cannot open a business bank account, apply for a loan, or hire employees.
So you need to choose your business structure, business name and plan for the taxes you will have to pay. You can choose from LLC, Corporation or DBA.

3. Name your business
Once you have decided which legal entity to pursue, you need to choose a business name that highlights your security company. USPA National Security Executive Director Michael Evans advises against using a personal name for your business, such as "Joe's Security." The reason is because it shows a lack of professionalism.
Instead, use words like “International” or “National” to indicate a high level of experience. However, make sure to never use real government sectors, like "California State Security Guard Company", as this is illegal.

4. Tax registration
Before you can open a security business, you must register for a variety of federal and state taxes. To register for taxes, you must first apply for an EIN (employee identification number) – it's simple and free.

5. Get all licenses
Depending on where you live, the license you need will vary. Typically, you will need specialist experience in the security sector – unless you have previously worked in law enforcement. SAME ORIGINAL IMAGES
In general, the following licenses are required:
Security guard license
You must demonstrate that you have the necessary skills to perform all security guard duties and responsibilities. For example, in California, you must complete arrest training and 32 hours of security officer skills training in a course approved by the California Department of Security and Investigative Services.
This fee is in addition to the initial registration fee of 50 USD.
License to operate private patrol
You must demonstrate that you have the necessary skills and experience to operate a secure business, whether private or not. For example, in Michigan, you must be 21 years of age or older, have a high school diploma or equivalent, and have never been convicted of a crime. In addition, you must demonstrate at least four years of professional experience as a security officer in a supervisory position above the rank of patrol officer.
Licensing fees range from $100 to $300, depending on how your business is legally established.
Qualified Management License
Your security company must be managed by an individual with a security management license who is qualified for all services provided by your company. For example, in Texas, you can provide armored vehicle, guard, alarm, and guard dog services. Therefore, a qualified manager must know how to provide these services and have at least two consecutive years of experience in each service. Registration fees start at $37.

6. Equipment cost
How to start a security services business will depend on the equipment you and your employees need. While you are there, you may need some or all of the following:
Clothing: As a security company, you always want to be visible so people know where to find you. Most companies choose yellow jackets because the color stands out. Armor may be required for your staff, depending on where your workers are patrolling. Steel toe boots should be used for each guard. Shoes should be comfortable and suitable for walking for several hours.
Flashlight: Flashlight is an essential part of security guards working at night or in dimly lit places.
Defensive Equipment: When starting a security guard business, you may want to provide them with weapons to defend against. Weapons are necessary to protect your security guards from attacks. These weapons include handguns, pepper spray, batons, and more. Be sure to check your state regulations to find out what defensive equipment your employees are allowed to use. Walkie-talkies: Two-way radios are ideal if your employees work in a large hub or cover large areas. However, digitizing your communications can be much more effective. Security apps like Connecteam allow you to communicate in a group or an individual chat.

7. Make a business plan
Make sure to create a business plan in advance as it acts as a map that guides your business through all stages – from startup to setting up growth. A business plan is a detailed description of exactly how your business will grow from start to finish.

You make different plans. When starting a stock trading business, if you need financial support from an investor or a financial institution, you need a traditional business plan. Once completed, your investor or bank will need to review it to validate your proposal. If you don't need financial support, you can create a simple one-page business plan. The plan will outline how you will succeed.

8. Rest assured
Your security company must be effectively protected by adequate insurance. However, there are two types of insurance that you absolutely must have when starting a security service business and beyond.
Liability insurance to protect you if something happens to your customers. Deposit insurance in case your employees steal customer assets. Most security companies choose Mechanic Group, an insurance company with more than 25 years of experience in the security industry.

9.Create a great logo
Your company logo is just as important as your business name because it's the first thing potential customers see. If you're starting a security company, make sure your logo represents what your company does. Your logo should also be memorable, and customers should associate security with your business. Remember to keep the logo simple, without many colors or fonts. Make sure it's scalable so it looks good on billboards and doesn't lose any fine detail when printed at smaller or larger sizes.

10. Get funding for your security business
If you cannot contribute 100% when starting a babysitting business, you should consider taking out a bank loan or credit card. However, make sure you enter the bank well prepared. Bring all necessary documents, such as registration with authorities, mission statement, business plan and legal documents.

Women entrepreneurs have access to small business grants that can be explored. When you receive funding, this can also help you determine what your business rates will be.

11. Create a website for your business
It's no secret: building credibility for your business starts with a professional website. Potential customers will visit your website to see what you do – from the “about us” section to pricing, customer testimonials and more.

Remember that your website needs to be attractive: don't clutter it with too much extraneous text or images. Loading speeds should be fast and navigation should be simple. Use a free website builder, such as Wix, to design a stunning website.

12. Access social networks
Just like a website is necessary, so is social media. This is a great way to promote your business because you are just starting out and need to establish yourself to succeed. From Facebook, Twitter, Instagram, etc., there are many channels you can use to reach and connect with customers.

Customers expect you to be on social media! Customers will check to see if you post regularly. They will also review reviews left by other customers and may contact you on social media with questions or comments. Your security guards can also act as advocates for your business.

13. Use technology to manage your team
Opening a new security company comes with a lot of responsibilities, not to mention a lot of unnecessary administrative troubles. You need to make sure you're as productive as possible so you don't waste time and can get back to focusing on growing your business.

Previously, security companies did everything manually, including:

Plan with pen and paper or create timesheets in Excel
Communicate through apps like WhatsApp, which violates employee privacy. Taking employees' word about their coming and going, leading to conflicts with friends and stealing time. All of these create unnecessary obstacles and errors, which can even cost you a lot of money very quickly.

When it comes to training new security personnel, delegating technology is a faster, easier, and more time-saving way to quickly scale and reach the highest possible standards. , anytime.
Most businesses – not just security companies – often use a variety of online tools to complete their tasks, but this is both a terrible waste of resources and energy, not to mention budget. .

All of this leads us to the conclusion that digitizing your business in the first place is the way to go. And there's a great all-in-one solution, tailor-made for security companies.
Connecteam – The #1 app for security company employees
Connecteam is an award-winning employee management software solution that enables security companies to manage the day-to-day lives of security guards more efficiently and effectively.
With a simple, easy-to-use mobile interface that even the least tech-savvy security guards can access, Connecteam ensures that business owners, managers and employees no longer need to. rely on outdated and paper-based traditional methods to manage various aspects of business operations. their business. their security company.

FAQs: Navigating Business Establishment Services

1. What services are typically included in business establishment services with affordable prices?

Affordable services often encompass business registration, legal consultation, document preparation, and guidance on permits and licenses. Additional offerings may include location selection or tax registration.

2. How can I find a business establishment service with competitive prices?

Research online, compare service providers, read customer reviews, and request quotes. Choose a provider that aligns with your budget and needs.

3. Are there potential drawbacks to choosing business establishment services with cheap prices?

While cost-effective, ensure providers possess necessary expertise. Some may cut corners, risking issues with legal compliance or documentation accuracy.

4. How can I verify the credibility and quality of a business establishment service with competitive prices?

To ensure credibility and quality:

• Check Customer Reviews
• Ask for References
• Verify Credentials and Experience
• Review Sample Documents
• Ensure Transparency in Pricing and Services

In conclusion, embarking on the journey of business establishment is a strategic move. By understanding the nuances and exploring affordable services wisely, entrepreneurs can set the stage for a thriving enterprise.