A security company is a company that provides both armed and unarmed security-related services and expertise to both private and public clients at an agreed fee. According to the United States Bureau of Labor Statistics, a security company is a company that provides security guards (bodyguards, guard dogs, parking security, and security guard services) and patrol services.
The average security outfit can go as far as providing advanced special operations services for special clients when they demand it.
For instance, it is the duty of security companies to provide security-related services such as the prevention of unauthorized activity or entry in a specified perimeter, traffic regulation, access control, fire, theft prevention, and detection et al.
Steps on How to Start a Security Company in Florida
Table of Contents
Conduct Market Research
Conducting market research before starting any business is key to the success of the business hence you must not open a security company without conducting market research. This is because market research provides critical information about your market and your business landscape.
It can tell you how your business is perceived by the customers and clients you want to reach. It can help you determine who and where your customers are, and which customers are most likely to do business with you. In essence, thorough market research will help you understand how your target customers think in order to turn them into regular customers and brand advocates.
a. Who is the Target Market for a Security Company in Florida?
- Celebrities and Public Figures
- Blue Chips Companies
- Insurance companies
- Corporate Organizations
- Religious Organizations
- Political Parties/Politicians
- Landlords
- The Government (Public Sector)
- Schools (High Schools, Colleges, and Universities)
- Sport Organizations
- Estate/Facility Managers.
b. Is a Security Company a Profitable Business in Florida?
Yes, a security company is profitable. This is because there are loads of businesses and individuals that depend on the services of security companies. It is projected that the revenue of the security guards and patrol services industry in Florida will amount to approximately 2.432,0 million U.S. Dollars by 2024.
c. Are There Existing Niches in the Industry?
Yes, there are niche areas in the security business and they are;
- Private security services (bodyguards)
- Security guards and patrol services
- Cyber security services
d. Who are the Major Competitors?
- Invictus Security Services
- AK Security Services
- OSGS Security LLC
- South Florida Security Group
- Fortitude Security Inc.
- USPA Nationwide Security
- Global Security
- 16 Eagle Security & Armed Services LLC
- Sarasota Security Patrol
- Safeway Security Services LLC
- Apex Security
- Fast Guard Service
- Scorpion Protection LLC
- Security Elite Agency
- Madison Security Group
- Trademark Security Services LLC
- Global Protection Agency, LLC
- Delta Five Security
- Marksman Security Corporation
- Excelsior Security Agency.
e. Are There County or State Regulations or Zoning Laws for Security Company in Florida?
Yes, there are county or state regulations or zoning laws for security services, and players in this industry are expected to work with the existing regulations governing similar businesses in the county or state where their business is domiciled.
Please note that in Florida, any person, firm, company, partnership, or corporation that engages in business as a private security agency must have a Class “B” license. A Class “B” license is valid for only one location.
f. Is There a Franchise for Security Company?
Yes, there are franchise opportunities for security services, and here are some of them;
- Security 101
- Signal 88 Security
- SHIELD Security Systems
- AmeriCorps
- SPECIALIZED RISK
- Silbar Security
- Patrol Services International
- Guard-A-Kid
- Off-Duty Police Officer Security Services
- Arrow Security Agency.
g. What Do You Need to Start a Security Company in Florida?
- A Feasibility Report
- Business and Marketing Plans
- Business Licenses and Permits
- Office Space
- Computers, Laptops, and Servers
- EIN (Employer Identification Number)/Federal Tax ID Number.
- A Corporate Bank Account
- Security gadgets
- Employees
- Startup Capital
Choose a Memorable Business Name
When looking to start a business, before you can begin to file the necessary documents with the constituted authorities or start your website, it is necessary that you come up with a name that you will be recognized with. It is essential that the name you come up with can easily be pronounced, is unique and easily memorable.
Some of the catchy business name ideas suitable for a security company are;
Creative Security Firm Business Name ideas
- Ben Zeal© Security Company, Inc.
- Moore® Security Company, LLC
- Green Day© Security Services Corp, Inc.
- Matt Phills® Security Company, Inc.
- MJ Greenwood™ Security Company, Inc.
- Smith™ Security Company, LLC.
- Sure Guard© Security Company, LLC
- Safety First® Security Services Corp., Inc.
- Hilary Jorgen© Security Company, Inc.
- Kelly Gray© Security Company, Inc.
- Mike Kester® Security Company, Inc.
- Union Group® Security Company, Inc.
- TM Morris® Security Company, Inc.
- Tripple Check® Security Company, Inc.
- Nathan Fred® Security Company, Inc.
- Rowland Hyden© Security Company, Inc.
- Clem Investigator™ Security Company, LLC
- Access Group® Security Company, Inc.
- West Plum® Security Company, Inc.
- Daytona Group™ Security Company, Inc.
Register Your Business
a. What Type of Business Structure is Best for Security Company in Florida?
Even though there are several options when it comes to the business structure of a security company, the one that most players in this line of business consider is an LLC. It is common to consider an LLC because providers want to protect themselves from lawsuits.
Please note that an LLC will need an EIN if it has any employees or if it will be required to file any of the excise tax forms listed below.
b. Steps to Form an LLC
- Choose a Name for Your LLC.
- File Articles of Organization.
- Choose a registered agent.
- Decide on member vs. manager management.
- Create an LLC operating agreement.
- Comply with other tax and regulatory requirements.
- File annual reports.
c. What Type of License is Needed to Open a Security Company in Florida?
- General Business License
- Class “B” license
- Firearm License
- Zonal Permits (Applicable in some cities)
- Signage Permit
d. What Type of Certification is Needed to Open a Security Company in Florida?
- Certified Security Project Manager (CSPM)
- Cisco Certified Security Professional (CCSP)
- Certified Security Compliance Specialist (CSCS)
- Certified Information System Security Professional (CISSP)
- Certified Industrial Security Professional Certification (ISP®)
- Global Industrial Cyber Security Professional (GICSP).
e. What Documents are Needed to Open a Security Company in Florida?
- DBA
- EIN
- Business and liability insurance
- Federal Tax Payer’s ID
- State Permit and Building Approval
- Certificate of Incorporation
- Business License
- Business Plan
- Class “B” license
- Firearm License
- Employment Agreement (offer letters)
- Operating Agreement for LLCs
- Insurance Policy
- Online Terms of Use
- Online Privacy Policy Document
- Contract Document
- Company Bylaws
- Memorandum of Understanding (MoU)
f. Do You Need a Trademark, Copyright, or Patent?
If you are considering starting a security company, usually you may not have any need to file for intellectual property protection or trademark. This is because the nature of the business makes it possible for you to successfully run it without having any cause to challenge anybody in court for illegally making use of your company’s intellectual properties.
Cost Analysis and Budgeting
a. How Much Does It Cost to Start a Security Company in Florida?
When it comes to starting a security company, the startup costs could range from $85,000 to over $250,000 depending on how big you want to start the business.
b. What are the Cost Involved in Starting a Security Company in Florida
- The total fee for registering a business in the United States of America – $750.
- Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines, and other software) – $8,300.
- Marketing promotion expenses for the grand opening of the security company – $3,580.
- The total cost for hiring a business consultant including writing a business plan – $2,500.
- The total cost for the purchase of insurance – $4,400.
- The cost for renting or leasing operational office space – $45,000.
- Other start-up expenses include commercial satellite TV subscriptions, stationery ($500), and phone and utility deposits ($2,800).
- Operational cost for the first 3 months (salaries of employees, payments of bills, and software renewal fees et al) – $35,000
- The cost for the purchase of software apps: $5,000
- The cost of launching a website: $2000
- Miscellaneous: $2,000
c. What Factors Determine the Cost of Opening a Security Company in Florida?
- The size of the security company
- The choice of location
- The required licenses and permits
- The type of facility
- The cost for branding, promotion, and marketing of the security company
- The cost of furnishing and equipping the security facility
- The cost of insurance
- The cost of registering the business
- The cost of recruiting and training your staff
- The cost of the purchase and customizing of uniforms, shoes, and caps for your employees
d. Do You Need to Build a Facility? If YES, How Much Will It Cost?
You don’t need to build a facility for your security company because it is a business that can be operated from a leased or rented office or a home office.
e. What are the Ongoing Expenses of a Security Company?
- Utility bills (internet subscriptions, phone bills, signage, and software renewal fees et al)
- Rent
- Training
- Food and medications for guard dogs
- Salaries of employees
f. What is the Average Salary of your Staff?
- Chief Executive Officer (Chief Investigator) – $45,000 Per Year
- Human Resources and Admin Manager – $35,000 Per Year
- Security Consultants – $35,000 Per Year
- Accountant – $32,000 Per Year
- Marketing Sales Officer – $32,000 Per Year
- Client Service Executive (Help Desk Office) -$28,000 Per Year
- Security Guards – $24,000 Per Year
g. How Do You Get Funding to Start a Security Company in Florida
- Raising money from personal savings and sale of personal stocks and properties
- Raising money from investors and business partners
- Sell shares to interested investors
- Applying for a loan from your bank/banks
- Pitching your business idea and applying for business grants and seed funding from the government, donor organizations, and angel investors
- Source for soft loans from your family members and friends.
Write a Business Plan
a. Executive Summary
Shaun McAllister® Security Services Company, Inc. is a registered and licensed security company. The business will be based in West Palm Beach, Florida and we are able to secure a well-positioned and standard office facility in one of the most patronized office complexes in West Palm Beach.
We will provide top-notch security services at different locations throughout West Palm Beach and beyond. It is our goal to offer low rates and reliable, fast, and courteous service to our customers.
At Shaun McAllister® Security Services Company, Inc., our client’s best interest would always come first, and everything we do will be guided by our values and professional ethics. We will ensure that we hire professionals who are well experienced in a wide variety of security services (bodyguard, guard dog, parking security, and security guard services).
b. Services
- Prevention of unauthorized activity or entry in a specified perimeter
- Traffic regulation services
- Access control services
- Fire and theft prevention and detection services
- Security advisory and consultancy services
- Roving patrol services
- Bodyguard, and guard dog services.
c. Mission Statement
Our mission is to provide professional and trusted security services that will assist individuals and businesses. We are to position the business to become the leading brand in the security services industry in West Palm Beach, and also to be amongst the top 5 security outfits in Florida within the first 10 years of operation.
Vision Statement
Our vision is to build a security company that will become the number one choice for individuals, families, and corporate clients in West Palm Beach, Florida.
d. Goals and Objectives
The goals and objectives of the security company are to provide both armed and unarmed security-related services to both private and public clients at an agreed fee.
e. Organizational Structure
- Chief Executive Officer (Chief Investigator)
- Human Resources and Admin Manager
- Security Consultants
- Accountant
- Marketing Sales Officer
- Client Service Executive (Help Desk Office)
- Security Guards
Marketing Plan
a. SWOT Analysis
Strength:
- Effective structure in place
- Highly experienced and qualified employees and management
- Reliable security prevention strategies
- Support from relevant organizations
- Water-tight strategies on how to expand beyond the major markets.
Weakness:
- Financial constraints
- A new business that will be competing with well-established security companies
- Inability to retain our highly experienced and qualified employees longer than we want.
Opportunities:
- Partnerships and mergers between established companies.
- Good support structure for security companies in Florida.
Threat:
- The arrival of a new security company within our market space
- Unfavorable government policy and regulations.
- Differences in management and culture
- Liability problems
- Continuously changing consumer demands especially as it relates to how they expect security companies to serve them.
b. How Do Security Companies Make Money?
Security companies make money by charging clients for services such as;
- Prevention of unauthorized activity or entry in a specified perimeter
- Traffic regulation services
- Access control services
- Fire and theft prevention and detection services
- Security advisory and consultancy services
- Roving patrol services
- Bodyguard, and guard dog services.
c. Payment Options
- Payment via bank transfer
- Payment with cash
- Payment via credit cards/Point of Sale Machines (POS Machines)
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
- Payment via bank draft
d. Sales & Advertising Strategies
- Introduce your security company and the services your offer by sending introductory letters alongside your brochure to corporate organizations, celebrities, small business owners, landlords, and other key stakeholders throughout the city where your security company is located.
- Advertise on the internet on blogs and forums, and also on social media like Twitter, Facebook, and LinkedIn to get your message across
- Create a basic website for your business so as to give your business an online presence
- Directly market your services
- Advertise your business in community-based newspapers, local TV and radio stations
- List your business on yellow pages ads (local directories)
- Encourage the use of word-of-mouth marketing (referrals)
Financial Projection
a. How Much Should You Charge for your Product/Service?
The average cost to hire a security guard is approximately $35-$50 per hour. However, depending on factors such as location, experience, and risk level, you could pay anywhere from $10-$100 per hour.
b. How Much Profit Do Security Company Owners Make a Year in Florida?
A typical security company owner in Florida will make between $40,000 to over $100,000 per year.
c. What Factors Determine the Amount of Profit to Be Made?
- The capacity of the security company
- The location the security company is covering
- The management style of the security company
- The business approach of the security company
- The advertising and marketing strategies adopted by the security company
- The number of years the security company is in business
d. What is the Profit Margin of a Security Company?
The profit margin of a security company is not fixed. It could range between 40% and 75%.
e. What is the Sales Forecast?
Below is the sales forecast for a security company. It is based on the location of the business and other factors as it relates to such startups in Florida;
- First Fiscal Year (FY1): $350,000
- Second Fiscal Year (FY2): $480,000
- Third Fiscal Year (FY3): $600,000
Set Up your Office
a. How Do You Choose a Perfect Location for a Security Company in Florida?
- The demography of the location
- The demand for the services of security companies in the location (rate of insecurity in the location)
- The purchasing power of businesses and residents of the location
- Accessibility of the location
- The number of security companies in the location
- The local laws and regulations in the community/state
- Traffic, parking and security et al
b. What City is Best to Open a Security Company in Florida?
- Tallahassee, Florida
- Pensacola, Florida
- Bradenton, Florida
- Jacksonville, Florida
- Pompano Beach, Florida
- Hialeah, Florida
- Riverview, Florida
- Fort Lauderdale, Florida
- Miami, Florida
- Saint Cloud, Florida.
c. What Equipment is Needed to Operate a Security Company?
You should be prepared to purchase security software applications, batons, firearms, and patrol vehicles. So also, you will definitely need computers/laptops, internet facility, telephone, fax machine and office furniture (chairs, tables, and shelves) amongst others and all these can be gotten as fairly used.
Hire Employees
When it comes to hiring employees for a standard Security company, you should make plans to hire a competent Chief Executive Officer (Chief Investigator), Human Resources and Admin Manager, Account Manager, Marketing and Sales Officer, Security Consultants, Security Guards, and Client Service Executive (Help Desk Office).
Launch the Business Proper
In recent times, no security company opens its door for business without first organizing an opening party to officially launch the business. You can choose to do a soft opening if you are operating on a low budget or you can go for a grand opening party.
With the proper launching of the security company, you will officially inform people in your city that your security company is open for business.
a. What Makes a Security Company Successful?
- Ability to identify good deals
- Willingness to take chances
- Tenacity
- Customer-centric business approach
- Good marketing and sales approach
- Strong vision
- Passionate leadership
- Innovative ideas.
b. What Happens During a Typical Day at a Security Company?
- The office is open for the day’s work
- Employees go straight to their job description (some to places where they are expected to provide security services)
- Marketers go out to market the service offerings of the company
- Reports are written and submitted to superior officers
- The business is closed for the day.
c. What Skills and Experience Do You Need to Build a Security Company?
- Excellent security skills
- Excellent investigative skills
- Excellent marketing skills
- Excellent computer skills
- Ability to Pay Attention to Details
- Good managerial and human development skills
- Good Accounting and Bookkeeping Skills
- Visionary Leadership
- Team-building & Interpersonal Skills
- Excellent communication and negotiation skills
- Organizational skills
- Problem-solving ability
- Good supervisory skills
- Experience in managing security services business
- Experience in business administration
- Experience in handling relevant software.