Curious about how to start a security company in 2024? Whether it's a long-held ambition or a commitment to public safety, launching a security guard company is a commendable pursuit. 

While there are several challenges to navigate, this step-by-step guide will simplify the process. By following these 11 practical steps, you'll learn how to establish your security company and ensure its ongoing success.

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Should you start a security company in 2024?

Thanks to multiple factors and trends, the security guard industry is poised for significant growth in the coming years. 

The perception of rising crime among American citizens has increased the demand for security services. Businesses and individuals want to ensure their assets and personal safety, leading to a steady demand for security guard companies​.

Advancements in technology like improved surveillance cameras, alarm systems, and access control technologies, make security services more effective and appealing to clients​. Security services have received stricter regulations and higher standards, leading to an increased demand for professional security solutions.

Urbanization and industrialization are also driving growth in the security guard industry. As more people move into urban areas and cities expand, the need for security services in residential, commercial, and industrial spaces increases.

Large-scale construction projects, new business establishments, and expanding urban infrastructure create more opportunities for security companies to provide services.

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Benefits of starting a security company

Starting a security guard company can be very rewarding. It offers a steady income and allows for a variety of services, from residential and commercial security to event security and personal bodyguards.

Providing security services helps improve community safety, which is a meaningful contribution​, making it a reliable business venture with opportunities for growth and diversification​.

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Considerations to keep in mind

As you consider starting a security guard company, first evaluate the local market demand, startup costs, and potential profit growth. 

1. Research your location to identify how many businesses and individuals are already using security guard services. Find out if there's a high need for additional security guards, and identify what specific services are most in demand.
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2. Evaluate your competitors to better understand who they are and what services they offer. Look for gaps in the services they provide that you could fill to help identify your niche and give you a competitive edge.
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3. Calculate startup costs for a security guard company in your state. The average capital necessary for a fully fleshed-out security company in the United States will fall somewhere between $64,000 to $282,000. The amount depends on the location of your business, the scale of your operations, and the specific services you plan to offer. Costs typically include:some text
   • Licensing fees and permits
   • Insurance
   • Uniforms and equipment
   • Office setup​
   • Marketing and online presence
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4. Determine potential profit earnings based on how you choose to price your services, the number of clients available to secure, and how efficiently you can run your operations. Solid resource and personnel management is the key to profitability. Offering high-quality, reliable services can lead to long-term contracts and repeat business.

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How to start a security company: A step-by-step guide

With a positive outlook, some determination, a solid local market, and enough initial startup money, the prospect of starting a security company becomes much more attainable. With these things in mind, you can take your first step toward your goal in 2024.

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Step 1: Identify your niche

The first step in starting a private security company is deciding on the type of security services you want to offer. You have several service options to choose from, including:

• Residential security: Providing security for homes and apartment complexes, including patrolling neighborhoods, monitoring alarm systems, and offering quick response services.
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• Commercial security: Offering services for businesses such as office buildings, retail stores, and industrial sites, which can include patrolling the premises, monitoring CCTV systems, and controlling access points.
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• Event security: Enhancing the safety of attendees at concerts, sporting events, and other large gatherings by providing crowd control, entry screening, and emergency response.
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• Bodyguard services: Providing personal protection for high-profile individuals such as executives, celebrities, and politicians, which involves close protection and sometimes travel security.
  
  These are very broad in range and scope. You may find that you wish to provide more specific, niche services in addition to security guards. This requires you to dig a little deeper and get specific. Examples of more specific security services include:

• Alarm monitoring: Keeping an eye on alarm systems and responding to alerts, either by contacting the authorities or dispatching a security team.
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• Video surveillance: Setting up and monitoring CCTV systems to keep an eye on various locations in real time, helping to deter and detect criminal activity.
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• Access control systems: Managing who can enter certain areas by using keycards, biometric scanners, or other methods to control access to buildings or specific rooms.

It's important to look at the market demand and see what types of security services are most needed in your area. Also, check out your competition to see if there's room for another player in the field.

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Step 2: Develop a business plan

Starting a security guard company requires a clear plan in place. You’ll want to define:

The core purpose of your company. Before thinking about how to start a security guard company, you should consider why you want to start a security guard company.

For example, your mission might be to provide top-notch security services to protect local businesses in your community.

The company’s vision. Where do you see the company going? What accomplishments define success? Maybe you want to be the most trusted security guard provider in your region.

The company’s goals. Set specific, measurable objectives. Your company’s goals could include things like acquiring 10 new clients within the first year or maintaining a 90% client satisfaction rate.

Once you figure out these three things, you can move on to identifying your target market. Understanding your target market is very important. Who needs your services and why?

You could market your company to:

• Retail stores, offices, and industrial complexes
• Residential communities like gated neighborhoods and apartment complexes
• Event organizers who need security for concerts, sports games, and other large gatherings

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Competition and marketing

Next, conduct an analysis of your competitors to see who they are and what services they provide. You’ll want to identify their strengths and weaknesses and capitalize on them.

The analysis should provide enough valuable feedback to figure out where you stand in the market and how you can offer something unique that stands out.

Begin planning marketing and sales strategies that will attract your target market.

Create a professional website optimized for search engines, use social media platforms like Facebook and LinkedIn to establish rapport, and network with local businesses through various relevant organizations, like the Chamber of Commerce.

Incentives such as promotional offerings and discounts can also contribute to attracting the right market for your security business.

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Staffing and procedures

Figure out which roles your company will need to fill, such as:

• Security officers
• Administrative staff
• Salespeople

Think about the skills and qualifications your team will need. Make a list of the equipment you’ll require, like uniforms, radios, and patrol vehicles. Figure out how you’ll buy and maintain this gear so everything is ready to go when you start your business.

Finally, create clear guidelines for your future team, including protocols for handling different types of incidents, reporting procedures, and daily duties, so that everyone knows their responsibilities and how to perform their tasks to standard.

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Step 3: Calculate costs

At this stage, you’ll want to break down all of the startup costs and ongoing operational expenses.

Startup costs

To get started, you'll need to purchase the necessary equipment. Think about the basics first:

• Professional uniforms: Jackets, shirts, pants, hats, and any other gear that makes your security guards easily identifiable is a necessity. It is also wise to invest in body cameras for your guards to maintain accountability and defend yourself against possible future lawsuits.
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• Communication devices: Radios or walkie-talkies help keep your team in touch while on duty. Alternatively, Belfry’s mobile app works perfectly for officers carrying their smartphones on duty. It makes it easy for officers out on patrol to communicate effectively with one another and your control center in real time.
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• Patrol vehicles: Vehicles are essential for mobile patrol services. Consider the cost of the vehicles, as well as insurance, maintenance, and fuel expenses.

Setting up an office is another key initial expense. Things to consider:

• Renting or purchasing a space to manage operations, meet with clients, and conduct training.
• Furniture and supplies, like desks, chairs, filing cabinets, and general office supplies are necessary to create a functional workspace.
• Computers and printers are important tools for daily operational tasks.
• Software for scheduling, payroll, and security management. Belfry provides all of this software in one convenient app, streamlining operations for your company and the guards on shift.

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Ongoing costs

Employee salaries will be one of the biggest ongoing expenses of your business and are essential to keeping operations running smoothly and your employees satisfied.

Office space isn’t free and will require an ongoing rental agreement.

The location and size of your office will likely affect the rent, so consider whether you need a central location for client meetings or if a more affordable space on the outskirts will suffice.

Another major portion of ongoing expenses will be in keeping your insurance coverage paid and up-to-date. There are several types of insurance for a security guard company to keep in mind, with the most necessary being:

• General liability insurance, which protects against accidents and injuries that may occur on the job.
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• Workers' compensation is required for all companies that have employees, and it covers medical expenses and lost wages for said employees who are injured on the job.
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• Firearm insurance is only required if you are looking to add armed security forces to your services. It’s additional coverage with an additional expense but necessary for security companies that provide armed security guards.

Creating a realistic budget enables you to set your security guard company on the path to success on day one. Wisely managing expenses allows you to focus on growing your business while providing top-tier security services to your clients.

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Step 4: Register your business

Now that you have your plan, it’s time to set it in motion. Choose a suitable business structure, such as a Limited Liability Company (LLC) or corporation.

An LLC is best for small to medium-sized businesses looking for flexibility, simpler management, and pass-through taxation.

A corporation is more suitable for larger businesses that plan to raise capital through stock sales, need a formal structure, and are prepared for double taxation.

Next, come up with a name that represents your company well. Make sure it’s unique and not already in use by another business. You can check this on your state-specific business registration website​. 

Register the business with the appropriate state authorities to make it official.

Finalize this step by getting an Employer Identification Number (EIN) from the Internal Revenue Service (IRS). It’s needed for tax purposes, hiring employees, and opening a business bank account. Applying is easy and can be done directly through the IRS website. 

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Step 5: Obtain necessary licenses and permits

To legally run your private security company, you will need the necessary licenses and permits. The following two licenses are non-negotiable:

• General business license: The basic license needed to operate any business legally. It’s verification that your company is poised to operate as a business. Without it, your company won’t be recognized as a legal entity. It’s a straightforward process and can usually be acquired from your local city or county government office.
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• Security business license: Since you’re providing security services, you’ll need a specific license for your business. This license often requires you to show proof of insurance, like general liability insurance, to protect your clients and employees. Each state has its own rules, so you’ll need to check with your state’s regulatory body to understand the exact requirements.
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• Private security license: Whereas a security business license focuses on the general business operations for a security company, a private security license focuses on industry-specific regulations and standards. It will require mandatory (and ongoing) training for security personnel, background checks, and specialized certifications.

All of these licenses provide legal recognition and promote client trust in your business. It shows that you are a legitimate and professional security company that is compliant with local and state regulations.

Depending on state or local requirements, individual security guards may need to be registered or licensed separately. Each guard will likely require background checks, fingerprinting, and the completion of specific training programs.

Always check with your local government and state regulatory agencies to make sure you have the necessary paperwork in order. This allows you to focus on growing your business without worrying about legal complications.

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Step 6: Secure insurance coverage

We’ve already covered the non-negotiable insurance required for your security company in Step 3: Calculating costs. Here’s a brief overview:

• General liability insurance: Covers accidents and injuries.
• Workers’ compensation: Mandatory if you have employees.
• Firearm insurance: Necessary if offering armed security services​​.

Now is the time to get these for your company to ensure proper coverage. There are additional types of insurance that may benefit your business or may be required based on the type of services you offer.

Two of the more common ones include:

• Professional liability insurance: Covers claims of negligence, mistakes, or failure to perform professional duties.
• Commercial auto insurance: Needed if your company uses vehicles for patrols or transportation.

Identify the potential risks associated with your security services, such as on-site injuries, property damage, and legal liabilities from clients or third parties. Consider the different services you plan to offer, as this will determine the types of coverage your company will need.

It is recommended to seek the assistance of an insurance broker who specializes in security guard companies. They can provide valuable advice on the best coverage options for your business's specific needs.

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Policy details

You’ll want to find a reputable insurance provider and fully read up and understand the policy details regarding coverage limits and exclusions.

Coverage limits should be adequate for your business needs. Higher limits offer more protection but may come with higher premiums.

Carefully read through the policy to understand what is and what is not covered. It should help in identifying gaps in coverage that you may need to address with additional policies.

Remember to conduct annual reviews of the policies you choose for your company. Each policy should still meet business necessities as your company grows and evolves. Update your coverage if you add new services, hire more employees, or purchase additional equipment.

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Step 7: Set up your office

Choose a location for your business operations and equip your office with the necessary technology and equipment. Pick a spot that's convenient for your team and clients. Look for a location with good access to public transport and parking. The area itself should reflect well on your business.

Set up phones and email systems to communicate with your team members and clients. 

Arrange the office so that it sets the stage for optimal operations, including a dedicated area for team briefings and client meetings. The point is to establish a functional environment that promotes efficiency and makes a good impression on visitors.

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Step 8: Hire and train employees

A stellar security guard company demands hiring and training the right employees for the job. It’s best to define job roles and responsibilities clearly and immediately. Start by clearly outlining what each position entails, making sure everyone knows their duties and what’s expected of them.

Security guards need to be trustworthy, reliable, and up to the task. Perform comprehensive background checks on all potential hires, which includes:

• Criminal records
• Past employment
• Drug testing
• Verifying identification
• Verifying references​
• Verifying licenses and certifications
• Physical fitness assessment

What kinds of training will your company offer?

Comprehensive training is a must for a well-prepared security team. Your training regimen should offer a mix of initial training and continuous learning programs to keep their skills sharp.

Basic training should cover essential topics, such as:

• Patrolling techniques
• Incident report writing
• Customer service

Depending on the state, guards may need certain certifications for things like:

• First aid
• CPR
• Firearms training

Ongoing training could consist of scenario-based training, training on new, emerging technologies, and advanced de-escalation techniques.

Regular evaluations of duties, skills, and capabilities should be conducted to maintain security guard performance. It will also help determine any weaknesses or areas in need of additional training to have the team consistently meet standards.

If unions are involved, make sure you know and follow their rules. These could affect how you hire, how much you pay, the work conditions, and other job terms set by the union agreements.

The company must comply with OSHA regulations and any other relevant health and safety standards to protect employees.

Lastly, foster open communication and provide ample support for your employees. A positive work environment can easily increase job satisfaction and performance. Be sure to hold regular meetings to discuss any issues, resolve them, and gather feedback.

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Step 9: Implement security management systems

It’s time to invest in security management software to streamline your operations and increase your chances of business success.

Look for security management software that fits your company’s needs. Belfry, for example, offers tools specifically designed for scheduling, reporting, and monitoring your security guards.

With good security management software, creating and managing guard schedules becomes much simpler. The software can help you assign shifts based on availability, skill sets, and locations, ensuring that the right guards are in the right places at the right times.

Security management software allows your guards to log their activities, incidents, and any other relevant information directly into the system, creating a detailed record that you can easily access and review.

Detailed records are great for keeping operations transparent with clients so that they can easily see that all incidents are documented and addressed.

Belfry also offers real-time monitoring that allows you to track your guards through GPS and other tools. You’ll know where your guards are and what they’re doing in real time, making quick responses to any incidents lightning fast.

Once the software is in place, the only thing left to do is train employees on how to use it.

Every guard should know how to:

• Log in
• Use the scheduling features
• Report incidents
• Check their assignments

An investment like this can be a serious game-changer for your organization right from the beginning and well into the future.

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Step 10: Market your business

Build a professional website that is search-engine optimized and clearly outlines your services, expertise, and contact information. It should be user-friendly, especially for mobile users, and include any possible client testimonials and case studies you receive.

You may want to add a blog full of tips and tricks, security updates, success stories, and any other information relevant to your business.

Use relevant social media platforms to build word of mouth for your business. Interact with potential and recurring customers regularly to foster a sense of community. Ask satisfied clients to leave positive reviews of your business on Google My Business, Yelp, and other review platforms to help build credibility.

Try to network locally by attending business events, trade shows, and community meetings. You can even sponsor or set up a booth at events relevant to your target market for additional chances at meeting potential clients.

Form partnerships with local businesses that can refer clients to you, such as property management companies, event planners, and construction firms. These partnerships can lead to a steady stream of referrals.

Get your brand out there using various marketing tactics, such as:

• Professional signage and branding
• Content marketing
• Email marketing
• Online advertising

Finally, track and analyze everything you do in your marketing efforts. Tools like Google Analytics and social media insights can help to track the performance of your marketing campaigns.

Adjust your strategies based on what works best to maximize your return on investment.

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Step 11: Monitor and scale your business

You’ve made it! Your security guard company should be up and running. Now it’s up to you to keep it that way. Set aside time each month to go over your business's performance.

Look at key metrics like:

• Client retention rates: How many clients stick with you over time? If you’re losing clients, try to find out why.
• Incident reports: Track the number and types of incidents your guards handle. Are there patterns or recurring issues?
• Guard performance: Evaluate how well your guards are doing. Are they following protocols? Are there any complaints?

Use this data to pinpoint areas where your company is excelling and where things might need to improve.

Client opinion can make or break any business. It’s important to take feedback to heart and address any issues raised as quickly as possible.

To make the most of client feedback:

• Send out regular surveys asking for feedback on your services. Keep them short and to the point to encourage participation.
• Have periodic meetings or calls with your clients to discuss their satisfaction and any concerns they might have.
• Monitor online reviews on sites like Google and Yelp. Respond to feedback, both positive and negative, to show that you care.

Stay up to date with the latest market trends in the security industry by regularly reading up on industry publications and following relevant news.

Continue to network with local businesses or security industry associations that may be able to provide insights into what’s working for others.

Explore opportunities for business expansion by considering adding new services, opening new physical locations, and doubling-down on local business partnerships.

You might choose to diversify the services you offer to reach more clients and reduce dependency on a single revenue stream.

Continue to monitor your efforts and adjust your strategies accordingly.

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Build a security business with Belfry’s help

Knowing how to start a security company is only the beginning. Making it last takes effort and having the right building blocks in place to serve as a sturdy foundation.

Belfry’s all-in-one platform is designed to help security guard companies manage their operations by combining logistics management, back-office administration, officer engagement, and client interaction into a single, easy-to-use application.

Belfry can help your security company get up and running in no time with:

• Scheduling and operations: Our system automates shift scheduling and real-time management, keeping everyone updated instantly.
• Easy payroll: Belfry’s payroll system handles all tax filings and compliance, including certified payroll for government contracts.
• Client portal: Clients can access real-time reports and interact with on-site officers through our client portal.
• Billing and payments: We automate invoicing and payment processing, streamlining your accounts receivable.

‍Schedule a Free Demo Today.