How to Start A Security Guard Company in 2021

Rea Regan June 9, 2021 12 min read
How to Start A Security Guard Company in 2021

Quick Guide

    Many businesses are looking for ways to keep their properties, employees, customers, and interests safe. Reasons include theft, violence, cyber-attacks, damage, and more. If you’re considering starting a security company, there are many options available to keep your business safe.

    In the United States alone, security services generated a revenue of $35 billion dollars in 2018. That same year, some 820,000 security guards were employed. 

    Security guards by state
    Courtesy of

    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 11 steps on how to start a security guard company. 

    Follow Our Guide On How To Start A Security Guard Company in 2021

    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.

    You can choose from an LLC, Corporation, or a DBA. Hire a registered agent service in order to help protect your privacy and to stay compliant through the process.

    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 for 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. 

    starting a security company is easy with our 9 steps
    Photo by Phil Hearing on Unsplash

    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.

    Check out our full guide on how to create a security guard training program.

     6. Cost for Equipment

    How to start a security company will depend on what equipment you and your employees need. When on-site, you might need some or all of the following:

    Apparel: As a security guard company, you always want to remain visible so that people know where to find you. Most companies opt for a yellow jacket as the color stands out. Bulletproof vests might be needed for your staff, depending on the location your workers are patrolling. Steel toe cap boots are recommendable for every guard. The shoes must be comfortable and suitable when walking for many hours. 

    Flashlights: flashlights are an essential part of being a security guard working at night or in areas that are not well lit. 

    Defense gear: When starting a security guard company, you may wish to provide weapons for their defense. Weapons are required to keep your workers safe from attacks. These weapons include guns, pepper spray, batons, etc. Be sure to check state rules to find out which defense gear your employees are permitted to use.

    Walkie-talkie: Two-way radios are great if your employees work in a large center or cover broad areas. However, digitizing your communication could be a lot more efficient. Apps such as Connecteam allow you to communicate in a group or single chat.

    7. 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 the establishment of growth. This business plan is a description of exactly how your business will evolve from start to finish. 

    Download our free business plan template to get started.

    There are various plans you draft up. When starting a security company, if you need financial support from an investor or a financial institution, then you need a traditional business plan. Once completed, your investor or the bank will need to review it in order to validate your proposal.

    If you do not require financial support, you can create a simple one-page business plan. The plan will describe how you will achieve success.

    Use Technology to Manage Your Team 

    Opening a new security guard business comes with a lot of responsibilities. You have to ensure that you are as efficient as possible so that you don’t waste time and you can put the focus back on growing your business. 

    In the past, security guard companies used to do everything manually. When it came to scheduling, businesses were using excel to draw up weekly schedules. When it comes to communicating, apps such as WhatsApp invade employees’ privacy. Checklists and forms completed by hand are slow. If there is an issue, it’s only seen hours after. Buddy punching and time theft are very easy when you’re not digitized. Reports often take days to be dealt with, and training new staff is complicated, expensive, and time-wasting.

    Many security guard companies are realizing that they are using many tools to complete each task. Running your business is actually costing you a lot and that’s just for running the business not the staff, that just doesn’t make sense in 2021! 

    Alternatively, security guard companies are realizing that digitizing their business is the way forward. We are now in 2021 and you have one tool that can do all your tasks in one platform:

    security employee management app
    • Time management: Geo-fencing ensures that staff only sign in from the pre-set locations. Set up the locations via GPS, employees will only be able to sign in from the site.
    • Communication: Send messages company-wide or direct messages to an individual employee.
    • Training onboarding, safety: Set up knowledge libraries with the employee handbook, training materials, courses, etc. New staff can go through the manuals and refer back to them as needed. 
    • Scheduling: Manage and schedule shifts, leave open spots for employees to choose. Attach notes, media, etc onto the shift. 
    • Digitized checklists and forms: Digitize equipment safety procedures, incident reports, etc. 

    When thinking about how to start a security guard company in 2021, remember that we are in a modern time. One app can help you run your business, there is no need for several different tools!

    “Connecteam helped us transition from a handful of productivity apps into ONE”

    Connecteam’s security guard app provides a true all-in-one experience for deskless employees, that’s both powerful and easy to use! Start saving time, money, and resources today with Connecteam’s security guard app!

    Learn More
    Security officer app

    Find out how one security guard company saved money and time with Connecteam’s scheduling feature and by streamlining training

    8. 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 your employee.

    Most security guard companies choose the Mechanic Group, an insurance company with more than 25 years of experience in the security industry.

    9. Create An Awesome Logo 

    Your logo is just as important as your company name as it’s the first thing a potential customer sees. If you are starting a security company, make sure your logo represents what your company does. Your logo should also be memorable that your customer associates security with your business.

    Courtesy of

    Remember to keep the logo simple without many colors or fonts. Make sure it’s scalable so that it looks good on a billboard and doesn’t lose any finer details when printed in a smaller or bigger size.

    10. Get Funds For Your Security Guard Company 

    If you can’t contribute 100% of the money when starting a security guard company, you should consider taking out a bank loan or obtaining credit. However, make sure you step into the bank well prepared. Bring all essential documents, such as 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.

    11. 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 a free website builder, such as Wix, 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! Customers will check to see if you’re posting on a regular basis. They will also look at the reviews other clients left, and they might contact you on social media with questions or comments.

    #1 Employee App For Security Companies

    Connecteam’s app provides you everything you need on how to start a security company. From scheduling, digital checklists, reports, time tracking with added GPS, you’ll know exactly where your staff are without having to call or text. Connecteam’s multiple features helps you plan for the future and be productive. 

    Time tracking: Connecteam’s geofencing assists you in knowing that your employees are clocking in from the exact location. You can open the app, and you can view the time your worker clocked in and where. 

    cleaning employees geofencing time clock app

    Scheduling also becomes far simpler when you use a digitized app. You can set hours, drag and drop shifts, and even leave slots open for overtime. You can add notes to the schedule, so your worker knows what they need, and where they need to be. The app can be accessed anytime, anywhere, and on any device. 

    With checklists and forms that are digitized, the possibilities are endless. As soon as your new employee starts, they can sign in to the app and fill out their uniform size and order. Employees starting their job for the day can fill out a checklist that covers any safety procedures before they begin. Workers can report incidents via the forms, and you receive the information in real-time. This means no more time lag! You can instruct via chat or send an update to your team about the hazard. When your guards change, you can have a checklist they must complete before they switch.

    Training new hires is a lot easier. Simply upload the manuals, company policies, and courses onto your knowledge library. Your employee can learn and refer back to the materials at any point in time. 

    Choosing Connecteam when wondering how to start a security company can save you time and help your business be efficient! 

    Connecteam Is the Leading App for Security Companies

    Schedule, track time, communicate, operate, and train your employees with Connecteam’s security guard app.

    See for Yourself

    Now You’re Ready to Start A Security Guard Company 

    We have listed eleven steps that explain how to start a security guard company. By understanding what you must do before you open your doors, it will help you to succeed. First, you need to know what services you will offer, then you need a catchy business name and logo. Once you have decided on all the above, you can create a business plan, and so on.

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