Many businesses are looking for ways to keep their properties, individuals, and interests safe, whether it’s from theft, violence, cyber-attacks, damage and more. With growing security concerns, there are plenty of opportunities available if you’re considering starting a security company.
With such statistics reported by the Bureau of Labor, it’s no surprise that more and more entrepreneurs are interested in starting a security company. To make the process easier, we list 9 steps on how to start a security guard company.
How to Start A Security Guard Company in 2020
1. Choose a security service to offer
Before starting a security company, you must know which security services you plan to provide. Going into security without knowing what you can offer to your clients will only end poorly. Therefore, you need to know which services you’ll offer so you can ensure you have the funds and resources required.
The following are services you may wish to pursue:
- Internet technology security services, such as cybersecurity
- Home security and monitoring services
- Stationary guard services
- Patrolling services
- Crisis management
When you choose a security service for your company, the rest of the process becomes easier.
2. Create a legal entity
Before launching your security guard company, you must have it registered. Without registration with a legal entity, you cannot open a bank account, apply for loans or hire staff. Therefore, you need to choose a business structure, a company name, and also plan for taxes.
Name your business
Once you’ve chosen which legal entity to pursue, you must choose a killer business name. The CEO of USPA Nationwide Security, Michael Evans, recommends that you don’t use a personal name for your business, like “Joe’s Security”. The reason is that it implies a lack of professionalism.
Instead, use words like “International” or “National” to indicate a high level of experience. However, ensure you don’t ever use actual governmental regions, like“The California State Security Guard Company,” as this is illegal.
3. Register for taxes
Before you can open your security guard company, you must register fo various state and federal taxes. To register for taxes, you must first apply for an EIN (Employee Identification Number) – which is very easy and free to do.
4. Get all licensing
Depending on where you live, the licenses you are required to hold vary. Usually, you will need work experience in the security field – unless you previously worked in law enforcement.
Typically the following licenses are required:
Security Guard License
You must prove that you possess the necessary skills to be a security guard. In California, for example, you must get training in the power to arrest and 32 hours of training in security guard skills from a California Bureau of Security and Investigative Service-approved course.
This is in addition to the initial application fee of $50.
Private Patrol Operator License
You must prove that you have the necessary skills and experience to operate a security guard company. In Michigan, for example, you must be 21 years or older, have a high school diploma or an equivalent and have not been convicted of a felony.
Additionally, you must show at least four years of security guard work experience in a supervisory capacity above the rank of patrolman.
The licensing fee ranges from $100 to $300, depending on the legal organization of your company.
Qualified Manager License
Your security guard company must be run by a person with a qualified manager license in all services your business provides. In Texas, for example, you may provide an armored car, guard, alarm and guard dog services, therefore the qualified manager needs to know how to provide those services with at least two years of consecutive experience in each service.
The application fee starts at $37.
5. Create a business plan
Make sure you create the business plan ahead of time as this acts as a map that will guide your business from all phases – such as startup to establishment to growth. This business plan is a description of exactly how your business will evolve from start to finish.
There are various plans you draft up. For example, if you need financial support from an investor or a financial institution then you need a traditional business plan which is usually long and has sections for investors and banks to review in order to validate your proposal.
However, if you won’t be needing financial support then you can create a simple one-page business plan to describe how you will achieve success.
Use technology to manage your team
Within your business plan, make sure you map out how you will effectively manage your team. Most security companies use an advanced yet inexpensive employee app to manage their employees.
This is crucial as there are many moving parts when managing a security guard company, from your employees to your clients.
With Connecteam’s security guard app, you have the perfect all-in-one solution for your security guards. When your employees are on the go and don’t sit behind a desk all day long, you need a single solution that allows you to communicate, engage, track hours, schedule, on-board and build professional skills, fill forms and reports, and operate your employees from anywhere at any time.
Connecteam helps security companies manage their employees
Sign up today for the free plan with no time limitation to best manage your employees. Schedule, track time, communicate, operate and train your employees from one place with Connecteam’s security guard app, that’s both powerful and easy to use.
6. Get insured
Your security guard company must be effectively protected with proper insurance. However, there are two insurance types you should definitely have when starting a security guard company and beyond.
- Liability insurance to protect yourself if anything should happen to your client
- Bonding insurance in case any of your client’s property is stolen by someone you employ.
Most security guard companies choose the Mechanic Group, an insurance company with more than 25 years of experience in the security industry.
7. Create an awesome logo
Your logo is just as important as your company name as it’s the first thing a potential customer sees before they make a decision to use your service. The symbol you choose as your logo plays a huge part if the brand identity of your company. Therefore, make sure it’s a memorable and gorgeous design.Remember to keep the logo simple without too many colors or fonts – make sure it’s scalable so that it looks amazing on a billboard and doesn’t lose any of the finer details when printed in a smaller or bigger size.
8. Get funds for your security guard company
If you can’t contribute 100% to starting a security guard company then you need to get a bank loan or can spend on credit. However, make sure you step into the bank well prepared. Bring all essential documents, like registration with the authority, mission statement, business plan, and legal papers.
Female 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.
9. Create a website for your business
It’s no secret that establishing your company’s credibility starts with a website. Your potential clients will check your site to see what you’re all about – from the about us section to pricing to customer testimonials and more.
Remember that your website should be compelling – don’t clutter it with too much text or irrelevant images. The loading speed should be quick and navigation should be simple. Use services like Wix, a free website builder, to design a stunning website.
Get on social media
Just like a website is essential, so are social media channels. It’s a great way to promote your business as you’ll just be starting out and need to establish yourself as successful. From Facebook, Twitter, Instagram, etc. there are many channels you can use to reach and connect with clients.
Your customers expect you to be on social media! This is where they check to see if you’re posting on a regular basis and what, what reviews other clients left, and they can even contact you on social media with questions or comments.
Now you’re ready to start a security guard company
We have listed 9 steps that explain how to start a security guard company. By understanding what you must do before you open your doors, you’re well on your way to success. From knowing what services to offer, choosing a business name and logo, the licenses and insurance needed, creating a business plan, implementing an employee app to manage your team, and so on – we answer all these needs and more.
Your security guards have it all-in-one-place
Connecteam’s security guard app provides a true all-in-one experience for deskless employees, that’s both powerful and easy to use. Our security guard management software comes at the most affordable price and with our unique fixed price plans for up to 200 users, so you know exactly what you’re paying for from day one. Or get started with the free for life plan! Start saving time, money and resources today with Connecteam’s security guard app!Start for free