How to Start a Security Company
Table of Contents
Table of Contents
Starting your own security company is an exciting prospect. Whether you’re a former security guard, a private investigator, or an entrepreneur who’s taken an interest in security services, the key to success will always be to understand your industry better than your competitors.
Running a successful security company takes a lot of work, but it’s not impossible. The first step is to analyze the market and decide what type of security services you should provide. From there, you’ll need to assess your budget, develop a brand personality, address licensing and insurance coverage, hire employees, and more.
Here’s our step-by-step guide to how to start a security company.
Table of Contents
Decide What Type of Security Services to Provide
Every business needs a business plan. For a security company, that starts by looking at what type of security services are in high demand in your chosen market.
Some security companies offer a wide range of services. Others focus on niche services, such as:
- Residential home security and monitoring
- Bank security
- Hospital security
- Commercial and retail security
- Fire watch security
- School security
- Investigative services and bodyguard services
- Manufacturing plant security
- Event security
- Cybersecurity services, including data centers
Before you decide what type of business you want to launch, run a market analysis to determine which services are most likely to appeal to your target market. For example, you may determine that there’s an untapped market for bodyguard services, or that your new business will need to offer a general suite of security services to stay competitive.
Get Your Security Company’s Finances in Order
Depending on your security company’s business structure and services, startup costs can range from as little as 5k to as much as 50k or more.
Costs vary based on a variety of factors, including how many guards you need to employ, what type of services you plan to provide, whether you’re hiring armed or unarmed guards, and if you’ll incur additional costs for specific training and certifications.
If you need to take a small business loan to get your company up and running, you’ll need to register your business before you can apply for such a loan.
Create a Brand Identity for Your Security Guard Firm
You need a business name to register your company with your city, state, and federal tax authorities. Once you decide on a name for your company, create a logo that complements it.
Sites like Canva and Looka offer free, easy-to-use logo design tools to help you create your own. You don’t have to be an expert designer or have graphic design experience to use them.
If you’d prefer to hire a professional to create your logo, consider contracting with a freelancer from a platform like Upwork or Fiverr. These freelance platforms let you view portfolios from designers around the world so that you can find great talent at an affordable price.
Keep in mind that your business name and logo are critical for your marketing efforts. Be sure that both are a clear representation of who you are and the services you’ll provide. They should also appeal to your target demographic. For example, the brand and logo for a celebrity security guard company should emphasize brand values like privacy, discretion, and high-end or luxury services.
Register Your Business
With your business name and logo ready to go, create a legal entity, such as an LLC, C Corp, or S Corp. Take a look at this article from the US Chamber of Commerce that explains six steps to incorporating your business.
While many small businesses begin as sole proprietorships, it’s best to set up a security company as a type of corporation. Security businesses carry risk, and sole proprietorships are better suited for small businesses with low risk and low profits.
After you’re legally set up as a corporation, register for taxes with your federal, state, and local tax authorities. You’ll receive an EIN number (employer identification number), which you’ll need if you intend to hire employees.
Depending on your city and state, you may also need to apply for a business license. Requirements vary from state to state and amongst municipalities and counties within each state.
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Get Your Security Guard Card and Security Licenses
Depending on where your business is located and what regions you want to provide security in, you may need to obtain a security guard license or other types of security licenses, such as a private patrol operator license or a qualified manager license.
If you’re planning to provide security in California, read How to Get Your California Guard Card now.
You may also need to obtain additional license and/or permits, such as a:
- Firearms permit
- Zoning permit
- Alarm company license
Before you launch your business, double-check that you’ve complied with all state and local requirements.
Get Insurance
As a business owner, it’s important to protect yourself and your company with the proper types of insurance. There are several policies you’ll need to have in place before you accept your first client and tackle your first assignment.
Liability Insurance
No matter what type of security you provide, you’ll need business liability insurance.
Sometimes referred to as “general liability”, this type of insurance helps to cover the cost of any personal injury or property damage claims made against your business. If someone gets injured in your place of business, liability insurance can help pay for the cost of medical care. If someone’s property gets damaged, it can help pay for the cost to replace those items.
Workers Compensation Insurance
Workers compensation insurance protects your employee when they’re on the job. Workers compensation insurance helps pay for medical costs if an employee gets injured at work. It also pays benefits to employees for the duration of time they cannot work, provided that the injury or illness is work-related.
Property Insurance
Property insurance is similar to homeowner’s insurance. If you own the building from which you operate your business, it will cover the premises, dwelling, and any personal property or inventory inside. If you rent the building or office, it will cover your inventory and personal business property from damage and theft.
Insurance Bonding
Bonding reimburses customers for any mistakes you or your employees make while on the job. While rules and regulations for bonding vary across the country, most security companies are required to be bonded.
Open a Business Bank Account and Credit Card
Unless you’ve set up your business as a sole proprietorship, which we don’t recommend, you’ll need a business bank account to accept client payments and a credit card to make all business-related purchases.
Every penny you spend and earn should use these business accounts. That includes paying for all insurance premiums, payroll, equipment costs, and other business expenses.
Purchase Your Security Equipment
The equipment you’ll need will vary based on the type of security you provide and may include some or all of the following:
- Uniforms
- Firearms
- Flashlights
- Defensive gear
- Office furniture
- Vehicles
- Phones
- Two-way radios
- CCTV cameras
You should also purchase software to better manage your team and customers. For internal processes, look at software solutions that help with scheduling, tracking time, managing inventory, and processing payroll.
Consider investing in customer relationship management (CRM) software as well. CRMs can help you monitor and track leads, build and maintain customer relations, improve your marketing efforts, and more.
Hire Employees
Your employees can make or break your business, so be sure to staff your company with professional, high-quality team members that are trustworthy and dedicated to the job. While anyone can be trained to do the job right, former law enforcement officials and ex-military personnel often work on private security teams.
It’s important to establish and follow the same protocols every time you hire a new employee. Do background checks and drug screens on everyone you hire. Check references and verify identities. Setting and adhering to high standards can help you grow your business.
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Create a Website
Creating a professional website can position you as an authority in your industry, even if you’re new to the game.
You can build your own website with free site builders like Wix or Squarespace. Or you can hire a web development and design team to build one for you.
Building your own free site requires you to invest your time. Hiring a development team to build one for you requires a monetary investment. Either way, this is an investment you can’t afford to overlook. Without a website, your business won’t look credible.
Market Your Security Business
There are many different marketing strategies you can employ to find potential clients and build your business. Ideally, once your business has grown and become successful, you’ll be able to find new clients through word-of-mouth marketing and referrals.
Some of the best ways and places to market your security guard services include:
Social Media
Social media is one of the easiest and most cost-effective ways to promote your company. Set up social pages for your business and you can promote your company for free by creating and sharing engaging posts with people in your local community.
Another approach is to place targeted ads on various social platforms and search engines to reach your desired audience. Either way, social media makes it easy to reach a lot of potential customers in a short amount of time.
Security Company Platforms
Another great way to get noticed is to join a regional security service platform like Security Explorer. Security Explorer is an industry-specific platform that makes it easy for potential customers to find the private security services they need in California.
When you join Security Explorer, clients can find you based on location, learn a little bit about the security services you provide, and contact you for more details. But one of the other big benefits is that potential clients will see your name alongside top competitors that have more years of experience in the private security industry.
P.S. interested in a premium placement to maximize your customers? Contact us today to learn more.
Security Explorer is also a resource for security companies and posts informational articles that can help you grow your business, such as How to Win More Security Contracts for Your Security Company.
Your Own Website
Your business’ website can be an incredible marketing tool if you build it and maintain it with SEO in mind. SEO is search engine optimization — a series of strategies and principles that can make your website appear at the top of search engine results when someone does Google searches terms like:
- Security companies in [your area]
- Best security guards in [your area]
- Where to hire private security in [your area]
SEO requires an investment of either time or money, but it’s an invaluable tool that can increase your visibility every time someone performs an online search for the services you provide. Consider working with a content marketing company like Intergrowth.
Email Marketing
With targeted messaging to your specific audience, email marketing is an effective way to attract new leads and build upon the relationships you’ve already developed. Email marketing can convert leads to customers, increase traffic to your website, help you build credibility within your industry, and more.
Traditional Marketing Tactics
Traditional marketing strategies, like taking out print ads, purchasing billboards, and buying radio and TV spots, are a great way to get your name out there. These tactics can be expensive, but they work. If you have room in your budget, consider mixing some of these traditional methods and marketing materials with the social and digital strategies discussed above.
Getting your security business off the ground will take time, money, and effort. As you advance the process, refer to this roadmap to make sure you’re ticking all the boxes and tackling every important step.
Visit Security Explorer now to join the platform and market your security business in California.
