Once you have worked in security for some time and gained skills and experience, the opportunities are endless. You could even become the boss of your very own security business!
In this blog, we’ll look at how you can do that, but let’s first discover why the security industry is booming despite an economic downturn.
Ever since the pandemic restrictions in the UK ended, the security industry is now in high demand. A cost-of-living crisis has meant there are more robberies and burglaries. In short, businesses need to protect their assets when the chips are down like they currently are, and the security industry always does well, even in a recession. Now is a perfect time to capitalise on the demand for security and start up a security business.
Here are the steps you’ll need to take to set up a security business in 2024.
Find your niche
First of all, you need to decide what type of security you will offer. There are several services you could provide. You may have experience in many sectors, or if you have the most experience in one sector, that would be your natural fit. However, you do need to research whether there is local demand and potential clients that want and need your security service. Options include:
- Manned security guards
- Mobile patrols
- Guard dog handlers
- Door supervisors
- Event security
- Close protection bodyguard
- CCTV monitoring
- Vehicle parking security
- Key holding response
You may also choose to provide your service to a particular sector, such as residential or commercial, or provide services to clients in an exact geographical location.
Get your licence
To run a private security business, you’ll need an SIA licence. If you’ve been working in security, this is just the standard SIA licence you keep up-to-date every three years by attending your top-up training. It might be a door supervisor or security guard licence, but you must have that; otherwise, you can be fined and prosecuted further. There are, however, no special additional courses you need to take to run a security company. It is your obligation to check that anyone that you employ also has a valid SIA licence. If you send an unlicensed guard out to work from your company once again, there could be severe penalties, not least the damage to your company’s reputation.
Get insured
You must obtain insurance when you run a private security business. Unfortunately, it’s a business where things could go wrong. In the event of some accident, it’s essential that you cover yourself for liabilities. You will also find that if companies know you are not insured, they will not use your service.
The types of insurance applicable to a private security firm include:
- Public liability insurance
- Employers liability insurance (a legal necessity if you hire staff)
- Efficacy and contractual liability cover
- Professional indemnity insurance
All of this can seem daunting, but if you contact an insurer that specialises in the security industry, they will be able to provide you with a package that covers your needs and business liabilities.
Decide on a business model
In terms of a business model, there are three main paths you could go down. You could buy an already existing security firm. If the business has staff, premises, branding, and a customer base and is making money, this could be a good option. However, this is also an expensive option. You could consider franchising which also has benefits such as branding and training.
Alternatively, the cheapest option would be to set up a new business. But to do this, you will have to work hard to get a loyal customer base so that the business thrives.
Write a business plan
A business plan is a must for a new business, and you will certainly need one if you wish to secure funding from a bank. A business plan contains many elements, such as information about yourself, your experience, skills and education. A business plan should also cover an overview of your business with covers a name, operational model, and SWOT analysis, along with your business vision, mission and values. Other things that should be included in a business plan include details of finances, market research, sales strategy and pricing.
Secure funding and manage your finances
Launching a security business will require a certain level of funding to cover costs such as rent for premises, vehicles, uniforms, staff wages, marketing, branding and a website. When you have calculated what budget you need, you must also calculate what business you will need to bring in and create a three-year forecast. Funding might come from personal savings, friends and family or bank loans. If you are borrowing money from a bank, you will need to provide the loan approver with your business plan and how you expect to be able to repay the loan and the interest.
Going forward, you must ensure you have a business bank account where you can pay suppliers and be paid. Late and unpaid invoices have ruined many fledgling businesses. Ensure you only work with credit-checked good payers and set up a system such as direct debit retainers so that you are not chasing late and non-payers.
Create a marketing strategy
To begin with, you need to consider branding and a name. For example, “Steve’s Security” is unsuitable for this industry. The logo and the branding should be serious and professional. You will see from the top 20 UK security companies that security business names often include UK, Group, Services, or Security. Words such as Knight, Shield, and Kingdom also have a serious but professional meaning around protection.
All your logo and branding should be consistent across business cards, your website, business cards, vans, and uniforms. Drawing up a buyer persona of your typical client can help you better understand and target your services to their needs.
Develop a sales strategy
You must develop a sales strategy to get your name out to potential customers. You could target your ideal clients and get out there by pitching your services face-to-face with industry decision-makers. This can often involve a lot of calls, research, and emails before you get that all-important meeting.
Using our job board is also a great way to network a new security business and pitch your services to clients in the industry.
Hire and train staff
Of course, you can’t run a business without staff. It might be that because of your experience in the industry, you might know people who will work for you. However, when the business starts rolling in, you’ll need a cost-effective way to find quality SIA-licensed staff. That is where Get Licensed can help. Our job board is the perfect place to post a vacancy and get it filled fast.
Because the Get Licensed job board is purpose-built for the security industry, you’ll find it far more effective than larger job platforms such as Indeed and Reed. In a trial, it was found that Get Licensed attracted more than four times the candidates than other competitors. And while Reed, Indeed and CV Library took 5-18 hours for applicants to apply, Get Licensed provided candidates within 12 minutes of posting a vacancy.
This means there is far less logging out and logging back in to see if anyone has responded to an urgent vacancy. And that could make the difference between you doing business and not.
You’ll also benefit from tons of features using the Get Licensed job board. You will get notifications when applicants apply, there are CVs, including video profiles, and we check all the SIA licence details ourselves, so you don’t have to. You will get your own dedicated account manager, and when you set up your account, you can post your first ten vacancies for free. This could be a significant boost to a new business when trying to keep your costs to a minimum before your first invoices are paid.
It’s no easy feat to set up a security business, but with experience and contacts in the security industry and using this step-by-step guide, you could be your own boss. Get Licensed is a great networking tool for those wanting to meet clients and staff, and our blog will keep you updated with all the security industry news, so stay connected!
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