Starting any new security business requires a well-thought-out business plan. Without a proper plan, it is impossible to build and stabilize an organization, let alone create room for growth and expansion. If you are passionate about private security and thinking about building a successful organization, here are a few key areas that are essential when creating a security company business plan.
Well-Defined Business Concept
When first building your security company business plan, you must consider the services and scope of what you are offering.
- What types of security will you be able to provide?
- Contract security, armed or unarmed officers, executive protection?
- What is your geographical reach?
- Local, regional, intrastate or nationwide?
- What types of properties/organizations will you provide security for?
- Commercial, residential, home owners associations, hospitals, schools or a combination?
- What is the bare-minimum contract size you can secure without losing money?
- What is the biggest contract you can secure while still providing an exceptional level of security and customer service?
Without properly defining these factors, it is difficult for a security company to gain momentum and build a reputation. You will be targeting every business in every sector, failing to provide quality services. A well-defined business plan offers a more focused approach which will help you provide top-quality services in your area of expertise.
Remember, you can always grow your security business, but you can’t always save it.
Licensing & General Liability
Before much can happen with your security company, you will need to obtain a Private Patrol Operators (PPO) License, which is regulated by state run agencies like the Bureau of Security & Investigative Services (BSIS) in California. A PPO license grants the license holder the ability to hire employees that function as security personnel. But in order to be approved for a PPO, you will need to secure general liability insurance.
Getting a PPO license can take some time. When planning out your business’s roadmap, make sure to take these time constraints into consideration, as it will be a big factor for when you can officially launch your security business.
Note: Each state has different rules and regulations pertaining to operating a security company. We are using California policy as an example since they continue to have the strictest employer laws, but and are often responsible for progressing industry standards around the country.