Commercial businesses all over the nation are seeking the services of a professional security company.
People who want to change careers or invest in a meaningful business are considering joining this competitive field and evaluating how much it costs to start a security company.
As with any business endeavor, there are numerous costs you’ll need to consider when starting a security company. The following are a few expense considerations you’ll want to keep in mind when launching your new business.
Insurance premiums can cost thousands of dollars a year, but they’re essential for business owners, particularly those in the security field. You’ll need to pay these premiums yourself until you have enough clients to cover the costs of your insurance.
The insurance will cover items such as general liability, workers’ compensation, and car insurance if your security company will have designated vehicles. These costs will vary for each business, but they aren’t unreasonable for a startup company in its first year of business.
You may need a security agency license for your business to operate in your state. Some states require proof of insurance before issuing a license, so keep this in mind before seeking licensure.
In addition to acquiring the proper license or permit in your state, you may also need to register your company as an LLC or a corporation. By registering your business as the proper entity, you can separate your personal assets from the business’ assets, which can be helpful for tax and liability purposes.
However, registering your business as a new entity such an LLC typically costs money and, depending on your state, can cost hundreds of dollars every year to maintain, so keep this in mind when considering how much it costs to start a security company.
Getting clients and building your reputation will cost money when starting your new security business. You’ll need a website as people will search on the internet for services you offer. Without a website, it’ll be harder to establish yourself as a reputable company.
Designing and developing a brand identity is an essential component of starting a business and incorporating that messaging into your online presence. You’ll need to have an advertising budget to help drive traffic to your website, and you’ll need to set up business listings on Google My Business, Yelp, and other sites. These listings allow customers to leave online reviews, further building your brand and establishing your business.
A franchise with Surveillance Secure will provide a website, digital advertising, and a brand that provides industry credibility right from the start.
Your security agency will need to consider the expense of providing uniforms to employees, which can run up to $100 per uniform depending on the design.
You’ll also need an office to operate out of. Having an established office space can help build your reputability and may also be required by your state. Clients may want to meet or you may need a registered address for your business.
You may be able to consider coworking space to save money when first starting your security business.
In addition, a security company can’t function without equipment—whether you’ll be providing cybersecurity services, access control, or surveillance systems, you’ll need the proper tools to provide these services from the start.
You’ll also need to hire the right team members with a technical skillset. These professionals will need a competitive salary, and you’ll need the funds to find good candidates, with either a headhunter or online service, as well as to conduct background checks on those newly hired employees.
With a Surveillance Secure franchise, we help in managing these processes to make starting your own business easier.
Having an emergency fund is an important part of any successful business strategy. You never know what can happen—your insurance premiums may go up, you may need to replace equipment, or you may get several new employees that need uniforms.
In the event that you can’t pay these costs for whatever reason, a contingency fund can help you cover these expenses and still remain in business. A good baseline for an emergency fund is about 10 percent of your business expenses.
Your security business may not need a designated vehicle immediately, but eventually this will be an expense you’ll need to cover as your business grows.
Vehicles are expensive to purchase and maintain, not to mention cover under your insurance policy, so keep these costs in mind when considering the capital you’ll need to start a security company.
Starting any new business is a risky endeavor, especially in the competitive field of private security. While having a business strategy and the right funding can certainly help, these things alone can’t guarantee your success.
If you’re considering starting a security company, it’s easier and less expensive to start a franchise with a company that’s already well-established and can provide you with the resources you need to succeed. With the support of a reputable and successful brand, you can own your own business faster and better control your costs.
Consider opening a Surveillance Secure franchise and become part of a professional security company that’s been delivering on commercial business security needs for over a decade!