Looking to get into the business of executive protection services? If you want to capitalize on this growing market and build a profitable business, there’s probably a burning question in your mind right now. 

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Is starting an executive protection company a good idea in 2024?

The demand for high-quality executive protection services is soaring. More companies are realizing that having an integral service that covers every aspect of protecting VIPs is the way to go. 

That's where your opportunity lies. 

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Let's break down why 2024 could be the perfect year to launch your executive protection venture:

Growing demand fueled by increasing threats

The upward trend toward heightened security concerns among high-profile individuals remains evident. Business leaders, celebrities, activists, and journalists are increasingly aware of the potential risks they face, driving the need for professional executive protection.

Globally, the private security market was valued at $235.37 billion in 2023 and is projected to grow from $247.75 billion in 2024 to $385.32 billion by 2032. 

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Market opportunities abound

In the executive protection space, there's ample space for new companies to flourish. With a growing market of businesses and high-net-worth individuals seeking specialized security services, the opportunities are ripe for the taking. 

You could focus on close protection for corporate executives or even security consulting — the choice is yours.

Identifying your target market and tailoring your services to their unique needs is key. By offering a unique value proposition and delivering exceptional service, you can quickly establish yourself as a trusted name in this thriving industry.

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A premium service commands a premium price

Executive protection is a premium service, and clients who require this level of security understand its value. They are willing to invest in the peace of mind that comes with knowing their safety is in expert hands. 

While starting any business requires an initial investment (more on this later), executive protection can provide significant returns. By effectively managing your costs and implementing a smart pricing strategy, you can build a profitable and long-standing business. 

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How to start an executive protection company in 8 steps

Let’s do a quick breakdown of the steps you’ll need to follow to get your executive protection business off the ground: 

Step 1: Understand the executive protection industry

Before diving in, it's crucial to get a firm grasp of the executive protection landscape. This involves:

• Understanding the diverse range of services offered, from close personal protection and threat assessments to travel security and secure transportation.
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• Identifying the clientele who seek these services, which typically include high-net-worth individuals, corporate executives, celebrities, and public figures facing potential risks.

Market research is your compass here. Look into the demand for executive protection in your target area, assess the competitive landscape, and uncover untapped opportunities. 

This research will be invaluable in shaping your business strategy and positioning you for success.

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Step 2: Develop a business plan

Your business plan is the blueprint for your company's future. Start with a compelling executive summary that outlines your mission, vision, and goals. Then, dive deeper into your target market analysis, detailing the specific types of clients you'll cater to.

Clearly define the services you'll offer. You could specialize in close protection, or you could extend your offerings to:

• Corporate security
• Event security
• Protective intelligence and investigations

Once you've established your service portfolio, create detailed financial projections. This includes estimating startup costs, ongoing operational expenses, and your projected revenue.

Finally, don't forget your marketing strategy. How will you reach your target clients and convince them that your services are the best fit for their needs? Your business plan should outline your approach to marketing and client acquisition.

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Step 3: Choose a business structure and register your company

Now, it's time to make it official. Decide on the legal structure that best suits your business — whether it's a Limited Liability Company (LLC) or a corporation. Once you've made your choice, register your company with the appropriate state authority.

Selecting a memorable and unique business name is essential. Make sure it's available for registration, and consider trademarking it to protect your brand identity. Finally, get an Employer Identification Number (EIN) from the IRS for tax purposes.

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Step 4: Get all necessary licenses and permits

The executive protection industry is regulated, so getting the necessary licenses and permits is a non-negotiable. Start by applying for a security company license through your state's regulatory agency.

The specific requirements vary by state, but typically involve the following:

• Security company license: Apply for a security company license through your state's regulatory agency. For example, in California, you would need to obtain a Private Patrol Operator (PPO) license from the Bureau of Security and Investigative Services (BSIS). 
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• Background checks: Ensure all employees undergo thorough background checks as required by law. This often includes fingerprinting and criminal history checks.
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• Insurance: Obtain liability insurance, workers' compensation, and other necessary coverage to protect your business and employees. The minimum coverage amounts may vary by state.

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Step 5: Secure funding

Starting a business requires capital. Determine how much funding you'll need and explore various options. 

This could include tapping into your personal savings, securing loans from financial institutions, or seeking investments from venture capitalists and other investors.

Investigate potential funding options specifically tailored for security businesses. While grants specifically for executive protection companies might be limited, there are several avenues you can explore:

• Small business administration (SBA) loans: The SBA offers various loan programs that can be utilized by security businesses, including 7(a) loans and microloans. These loans often have favorable terms and interest rates.
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• State and local grants: Some state and local governments offer grants to businesses in specific industries, including security. Research opportunities in your area.
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• Industry-specific financing: Some financial institutions or lenders specialize in financing security businesses. They understand the unique needs and risks associated with this industry.

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Here are some examples of lenders that work in the security industry:

• Crestmont Capital: Specializes in providing funding solutions for security guard companies, including SBA loans and traditional business loans.
    
• Celtic Bank: Offers various financing options for security businesses, including equipment financing and working capital loans.
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• Kapitus: Provides financing solutions for small businesses, including those in the security industry, with options like term loans and lines of credit.

Remember to thoroughly research and compare different funding options to find the best fit for your executive protection company.

Note that the availability of specific grants and loans can vary depending on your location and the current economic climate. Therefore, it's crucial to consult with financial advisors and relevant government agencies for the most up-to-date information.

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Step 6: Set up your team and operations

Recruiting the right team is paramount. Look for highly trained and experienced security personnel, including:

• Former law enforcement officers
• Military veterans
• Individuals with specialized skills in areas like defensive driving and tactical medicine

Many clients in the executive protection (EP) industry prioritize hiring former military personnel because of their extensive experience, reliability, and leadership qualities. 

This is such a common occurrence that there’s a specific Military and Veteran group in ASIS Connect. It’s touted as a community for all military members and veterans interested in the security industry.

Military veterans bring a disciplined approach and high-stakes operational experience that is particularly suited to executive protection roles. For example, companies like LawDog Security highlight that military training provides a solid foundation for the complex demands of EP.

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Step 7: Create policies and procedures

Establishing clear policies and procedures is essential for the smooth running of your business. 

Develop comprehensive standard operating procedures (SOPs) that cover every aspect of your operations, from security protocols and incident reporting to client interaction guidelines.

Equally important is having detailed emergency response plans in place. These plans should address various security scenarios, guaranteeing your team is prepared to react swiftly and effectively in any situation.

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Step 8: Market your business

Spreading the word about your executive protection company is important for attracting clients. Build a professional website that showcases your services and expertise. Leverage the power of social media platforms to increase your online visibility and engage with potential clients.

Networking is your secret weapon. Join industry associations and attend relevant events to connect with potential clients and partners. 

Word-of-mouth marketing can go a long way — encourage satisfied clients to share their positive experiences through testimonials, which can be invaluable in building credibility and attracting new business.

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Taking the first step with Belfry

Now that you know how to start an executive protection company, it's time to equip yourself with the tools to set you apart from the competition. At Belfry, we offer a suite of features that will simplify your operations and help you deliver high-class security. 

Here's how Belfry can help you elevate your executive protection company:

• Easier scheduling: Manage complex schedules with ease, ensuring optimal staffing levels for every assignment and eliminating conflicts.
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• Direct client communication: Keep clients informed and engaged through automated notifications, detailed reports, and secure communication channels.
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• Real-time tracking and monitoring: Use GPS tracking to monitor the movements of your protection teams and vehicles, enabling swift responses to any emergency.
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• Mobile accessibility: Give your team on-the-go access to critical information and tools through the Belfry app, ensuring constant connectivity and responsiveness.

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Schedule a Free Demo Today.