business plan for security agency

Security Company Business Plan Template

Written by Dave Lavinsky

Security Company Business Plan

Over the past 20+ years, we have helped over 500 entrepreneurs and business owners create business plans to start and grow their security companies.

If you’re unfamiliar with creating a security company business plan, you may think creating one will be a time-consuming and frustrating process. For most entrepreneurs it is, but for you, it won’t be since we’re here to help. We have the experience, resources, and knowledge to help you create a great business plan.

In this article, you will learn some background information on why business planning is important. Then, you will learn how to write a security company business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is a Security Company Business Plan?

A business plan provides a snapshot of your security company as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategies for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for a Security Company

If you’re looking to start a security company or grow your existing security company, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your security company to improve your chances of success. Your security company business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Security Companies

With regards to funding, the main sources of funding for a security company are personal savings, credit cards, bank loans, and angel investors. When it comes to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to ensure that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for security companies.

Finish Your Business Plan Today!

How to write a business plan for a security company.

If you want to start a security company or expand your current one, you need a business plan. The guide below details the necessary information for how to write each essential component of your security company business plan.

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your executive summary is to quickly engage the reader. Explain to them the kind of security company you are running and the status. For example, are you a startup, do you have a security company that you would like to grow, or are you operating a chain of security companies?

Next, provide an overview of each of the subsequent sections of your plan.

• Give a brief overview of the security company industry.
• Discuss the type of security company you are operating.
• Detail your direct competitors. Give an overview of your target customers.
• Provide a snapshot of your marketing strategy. Identify the key members of your team.
• Offer an overview of your financial plan.

Company Overview

In your company overview, you will detail the type of security company you are operating.

For example, you might specialize in one of the following types of security companies::

• Crisis management: This type of security business depoys security officers trained in crisis situations such as natural disasters, terrorist attacks, or other emergencies.
• Security guards: This type of security business provides security guards to government or private clients to provide protection against theft or harm to personal or public property.
• Surveillance company: This type of security business provides surveillance equipment and monitoring services that can include security alarms, cameras, and on-call security officers.
• Security patrol: This type of security company deploys security officers who drive around the designated area, patrolling from car, motorcycle, or other vehicle.

In addition to explaining the type of security company you will operate, the company overview needs to provide background on the business.

Include answers to questions such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of customers served, the number of security cameras sold, or reaching $X amount in revenue, etc.
• Your legal business Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry or market analysis, you need to provide an overview of the security company industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the security company industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your marketing strategy, particularly if your analysis identifies market trends.

The third reason is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your security guard business plan:

• How big is the security company industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential target market for your security company? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your security company business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: individuals, schools, families, and corporations.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of security company you operate. Clearly, individuals would respond to different marketing promotions than corporations, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the potential customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can recognize and define these needs, the better you will do in attracting and retaining your customers.

Finish Your Security Company Business Plan in 1 Day!

Don’t you wish there was a faster, easier way to finish your business plan?

With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other security companies..

Indirect competitors are other options that customers have to purchase from that aren’t directly competing with your product or service. This includes other types of security service providers, in-house security personnel, and do-it-yourself security equipment. You need to mention such competition as well.

For each such competitor, provide an overview of their business and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as

• What types of customers do they serve?
• What type of security company are they?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you make it easier for clients to acquire your services?
• Will you offer products or services that your competition doesn’t?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a security guard business plan, your marketing strategy should include the following:

Product : In the product section, you should reiterate the type of security company that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you provide on-call security guard services, crisis management, or surveillance equipment?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your plan, you are presenting the products and/or services you offer and their prices.

Place : Place refers to the site of your security company. Document where your company is situated and mention how the site will impact your success. For example, is your security company located in a busy retail district, a business district, a standalone office, or purely online? Discuss how your site might be the ideal location for your customers.

Promotions : The final part of your security company marketing plan is where you will document how you will drive potential customers to your location(s). The following are some promotional methods you might consider:

• Advertise in local papers, radio stations and/or magazines
• Reach out to websites
• Distribute flyers
• Engage in email marketing
• Advertise on social media platforms
• Improve the SEO (search engine optimization) on your website for targeted keywords

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your security company, including answering calls, scheduling security personnel, billing clients and collecting payments, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to acquire your Xth client, or when you hope to reach $X in revenue. It could also be when you expect to expand your security company to a new city.  

Management Team

To demonstrate your security company’s potential to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally, you and/or your team members have direct experience in managing security businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing a security company.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet, and cash flow statements.

Income Statement

An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenue and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you employ a staff of 10 security officers, and will you charge an hourly fee of $150 for each security officer deployed ? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets

Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your security company, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a lender writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement

Your cash flow statement will help determine how much money you need to start or grow your business, and ensure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

When creating your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a security company:

• Cost of equipment and office supplies
• Payroll or salaries paid to staff
• Business insurance
• Other start-up expenses (if you’re a new business) like legal expenses, permits, computer software, and equipment

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your office location lease or a list of your security guards and their credentials.  

Writing a business plan for your security company is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will understand the security company industry, your competition, and your customers. You will develop a marketing strategy and will understand what it takes to launch and grow a successful security company.  

Security Company Business Plan FAQs

What is the easiest way to complete my security company business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily write your security company business plan.

How Do You Start a Security Company?

Starting a security company business is easy with these 14 steps:

• Choose the Name for Your Security Company
• Create Your Security Company Business Plan
• Choose the Legal Structure for Your Security Company
• Secure Startup Funding for Security Company (If Needed)
• Secure a Location for Your Business
• Register Your Security Company with the IRS
• Open a Business Bank Account
• Get a Business Credit Card
• Get the Required Business Licenses and Permits
• Get Business Insurance for Your Security Company
• Buy or Lease the Right Security Company Equipment
• Develop Your Security Company Marketing Materials
• Purchase and Setup the Software Needed to Run Your Security Company
• Open for Business

Learn more about   how to start your own security company .

Don’t you wish there was a faster, easier way to finish your Security Company business plan?

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.   Click here to see how Growthink’s business planning advisors can create your business plan for you.

Other Helpful Business Plan Articles & Templates

How To Write a Business Plan For a Security Company + Template

Creating a business plan is essential for any business, but it can be especially helpful for security companies who want to improve their strategy and/or raise funding.

A well-crafted business plan not only outlines the vision for your company, but also documents a step-by-step roadmap of how you are going to accomplish it. In order to create an effective business plan, you must first understand the components that are essential to its success.

This article provides an overview of the key elements that every security company  owner should include in their business plan.

Download the Ultimate Business Plan Template

What is a Security Company Business Plan?

A security company business plan is a formal written document that describes your company’s business strategy and its feasibility. It documents the reasons you will be successful, your areas of competitive advantage, and it includes information about your team members. Your business plan is a key document that will convince investors and lenders (if needed) that you are positioned to become a successful venture.

Why Write a Security Company Business Plan?

A security company business plan is required for banks and investors. The document is a clear and concise guide of your business idea and the steps you will take to make it profitable.

Entrepreneurs can also use this as a roadmap when starting their new company or venture, especially if they are inexperienced in starting a business.

Writing an Effective Security Company Business Plan

The following are the key components of a successful security company business plan:

Executive Summary

The executive summary of a security company business plan is a one to two page overview of your entire business plan. It should summarize the main points, which will be presented in full in the rest of your business plan.

• Start with a one-line description of your security company .
• Provide a short summary of the key points in each section of your business plan, which includes information about your company’s management team, industry analysis, competitive analysis, and financial forecast among others.

Company Description

This section should include a brief history of your company. Include a short description of how your company started, and provide a timeline of milestones your company has achieved.

If you are just starting your security company , you may not have a long company history. Instead, you can include information about your professional experience in this industry and how and why you conceived your new venture. If you have worked for a similar company before or have been involved in an entrepreneurial venture before starting your security company , mention this.

Industry Analysis

The industry or market analysis is an important component of a security company business plan. Conduct thorough market research to determine industry trends and document the size of your market. 

Questions to answer include:

• What part of the security company industry are you targeting?
• How big is the market?
• What trends are happening in the industry right now (and if applicable, how do these trends support the success of your company)?

You should also include sources for the information you provide, such as published research reports and expert opinions.

Customer Analysis

This section should include a list of your target audience(s) with demographic and psychographic profiles (e.g., age, gender, income level, profession, job titles, interests). You will need to provide a profile of each customer segment separately, including their needs and wants.

For example, customers of a security company may include:

• Small businesses
• Large businesses
• The military or other government organizations

You should also include information about your target customer’s buying habits. What are their purchasing decisions based on? How often do they purchase your type of product or service?

You can include information about how your customers make the decision to buy from you as well as what keeps them buying from you.

Develop a strategy for targeting those customers who are most likely to buy from you, as well as those who might be influenced to buy your security company services with the right marketing.

Competitive Analysis

The competitive analysis helps you determine how your product or service will be different from competitors, and what your unique selling proposition (USP) might be that will set you apart in this industry.

For each competitor, list their strengths and weaknesses. Next, determine your areas of competitive differentiation and/or advantage; that is, in what ways are you different from and ideally better than your competitors.

Marketing Plan

This part of the business plan is where you determine and document your marketing plan. . Your plan should be clearly laid out, including the following 4 Ps.

• Product/Service : Detail your product/service offerings here. Document their features and benefits.
• Price : Document your pricing strategy here. In addition to stating the prices for your products/services, mention how your pricing compares to your competition.
• Place : Where will your customers find you? What channels of distribution (e.g., partnerships) will you use to reach them if applicable?
• Promotion : How will you reach your target customers? For example, you may use social media, write blog posts, create an email marketing campaign, use pay-per-click advertising, launch a direct mail campaign. Or you may promote your security company via PR, by doing speaking engagements or other events, or by getting involved with industry associations.

Operations Plan

This part of your security company business plan should include the following information:

• How will you deliver your product/service to customers? For example, will you do it in person or over the phone only?
• What infrastructure, equipment, and resources are needed to operate successfully? How can you meet those requirements within budget constraints?

The operations plan is where you also need to include your company’s business policies. You will want to establish policies related to everything from customer service to pricing, to the overall brand image you are trying to present.

Finally, and most importantly, in your Operations Plan, you will lay out the milestones your company hopes to achieve within the next five years. Create a chart that shows the key milestone(s) you hope to achieve each quarter for the next four quarters, and then each year for the following four years. Examples of milestones for a security company include reaching $X in sales. Other examples include adding new services, hiring new employees, opening new locations, and so on.

Management Team

List your team members here including their names and titles, as well as their expertise and experience relevant to your specific security company industry. Include brief biography sketches for each team member.

Particularly if you are seeking funding, the goal of this section is to convince investors and lenders that your team has the expertise and experience to execute on your plan. If you are missing key team members, document the roles and responsibilities you plan to hire for in the future.

Financial Plan

Here you will include a summary of your complete and detailed financial plan (your full financial projections go in the Appendix). 

This includes the following three financial statements:

Income Statement

Your income statement should include:

• Revenue : how much revenue you generate.
• Cost of Goods Sold : These are your direct costs associated with generating revenue. This includes labor costs, as well as the cost of any equipment and supplies used to deliver the product/service offering.
• Net Income (or loss) : Once expenses and revenue are totaled and deducted from each other, this is the net income or loss

Sample Income Statement for a Startup Security Company

Balance Sheet

Include a balance sheet that shows your assets, liabilities, and equity. Your balance sheet should include:

• Assets : All of the things you own (including cash).
• Liabilities : What you owe against your company’s assets, such as accounts payable or loans.
• Equity : The worth of your business after all liabilities and assets are totaled and deducted from each other.

Sample Balance Sheet for a Startup Security Company

Cash Flow Statement

Include a cash flow statement showing how much cash comes in, how much cash goes out and a net cash flow for each year. The cash flow statement should include:

• Cash Flow From Operations
• Cash Flow From Investments
• Cash Flow From Financing

Below is a sample of a projected cash flow statement for a startup security company .

Sample Cash Flow Statement for a Startup Security Company

You will also want to include an appendix section which will include:

• Your complete financial projections.
• A complete list of your company’s business policies and procedures related to the rest of the business plan (marketing, operations, etc.).
• Any other documentation which supports what you included in the body of your business plan.

Writing a good business plan gives you the advantage of being fully prepared to launch and/or grow your security company. It not only outlines your business vision but also provides a step-by-step process of how you are going to accomplish it. A business plan is also a necessity when seeking funding from investors or lenders.  

Finish Your Business Plan in 1 Day!

Wish there was a faster, easier way to finish your business plan?

With our Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

Starting A Security Company Business Plan (PDF)

Starting a security company can be a highly profitable venture in today’s world, where the need for security is ever-increasing. This industry, characterized by its robust demand and attractive profit margins, offers a unique opportunity for entrepreneurs looking to establish a sustainable and financially rewarding business. The rising concerns over personal and corporate safety have fueled a surge in the demand for security services, making it an opportune time to enter this market. The security sector’s appeal lies in its wide-ranging services, from residential security to corporate safety measures, catering to a diverse clientele. This versatility not only broadens the potential customer base but also allows for considerable flexibility in tailoring services to specific market needs. With the right approach and understanding of the market, a security company can achieve significant profitability. This is bolstered by the industry’s inherent scalability, where businesses can start small and expand their offerings as they grow, maintaining healthy profit margins throughout. This article will outline how to start a security company business and the security company business plan (PDF, Word & Excel).

Market Research

Market research plays a pivotal role in the process of launching a security company business. It serves as the compass that guides entrepreneurs through the complex terrain of the security industry. Begin by analyzing the overall security industry. Look into various segments like residential, commercial, event security, and cybersecurity. Evaluate the size of these markets, growth trends, and the major players. Understanding where the industry is headed can help you spot opportunities and potential gaps in the market. Not all security companies are the same. Some focus on physical security guards, while others specialize in advanced technological solutions like surveillance systems or cybersecurity services. Your market research should help you identify a niche that aligns with your expertise and market needs. Whether it’s a specific sector like retail security or a type of service like risk assessment, finding your niche is key to standing out.

A critical part of market research is analyzing your competitors. Who are they? What services do they offer? What are their strengths and weaknesses? This analysis will help you understand your competitive advantage. Pay attention to their customer service, pricing strategies, technological adoption, and client feedback. Knowing what potential clients want and need is paramount. Conduct surveys, interviews, or focus groups with potential customers to gather insights. Look into what businesses or individuals in your target market are looking for in a security service, what they feel is lacking in current offerings, and what would make them choose a new provider. Every industry has its regulations, and security is no exception. Research the legal requirements for starting and operating a security company in your region. This includes licenses, certifications, and any specific laws that pertain to security operations. Budgeting and financial planning are indispensable components of market research. Accurate financial projections, encompassing startup costs, operational expenses, and revenue estimations, are key to securing funding and maintaining financial stability.

Location & Premises

Centrality in area covered and proximity to clients.

The things to consider here for a security company business depends on the nature of your services. Typically you will be deploying guards to certain spots e.g. commercial, industrial, or residential properties. This can be during the day, overnight, or both. The heart of a security company business is a command centre or centre of operations. This means its location must be central to the area you make deployments in. The thrust is to also be generally as close as possible to your deployments or areas you cover. This is of critical importance especially when rapid responses are needed.

Spacious Enough, Secure Enough And Accessible Enough

Consider a security company with a substantial fleet of vehicles – which should be the goal anyways. You would need adequate space for parking and easy access. You also need to consider that a security company’s centre of operations tends to be segmented. There is need for office space, locker room(s), briefing room, and an armory – at the very least. Regardless, the footprint of a command centre need not necessarily be that big. A potential target by organized crime gangs can be your command centre. Thus it is important to ensure the place is secure. If possible, make your centre of operations as inconspicuous as possible. It should also be easy to access and exit in case of rapid response situations. The costs of purchasing or leasing the premises should be included in your security company business plan.

Vehicles And Equipment

Transportation vehicles are required e.g. bicycles, motorbikes, and light motor vehicles. In some cases vehicles might need to be armored. Vehicles are required for patrolling and transporting valuable goods. There is some basic equipment needed for a security company business but it all boils down to the scale and sophistication of your operations. Examples of basic security company equipment are wireless communication devices (e.g. walkie-talkies), uniforms (or apparel), firearms, and defence equipment. Surveillance equipment such as CCTV cameras, drones, binoculars, and the like may be needed. Ancillaries such as baton sticks, hand cuffs, flashlights, and stun guns (or tasers) are needed. Office equipment and supplies are necessary for administrative procedures. The security company business plan should include the costs of purchasing the vehicles and equipment.

Products & Services

The services you can offer as a security company business depend on the type of clients you intend to serve.

Guard & Patrol

This is the easiest and most common security company service to provide. The approaches to this are many and can be tailored to suit client needs. You have residential security where there can be guards stationed somewhere and doing periodic sweeps. The same can also be done for industrial and commercial properties. This can be done overnight mostly or even any time of the day depending on the circumstances. This service is best accompanied by CCTV surveillance monitoring. This can be done from the depot or there can be a command post onsite.

Access Control

This is yet another common security company service. It takes on various forms but the core focus is security personnel controlling access to a property. For instance, guards can be stationed at entrances or inside places such as shopping outlets, banks, and government buildings. It is also common for areas or buildings with restricted access. Access control as a security company service can also be provided at important events. This service also morphs into crowd control where applicable.

Close Protection

This is also known as VIP protection. This entails providing security services for high profile people such as celebrities, politicians, and business moguls. It can also span to anyone who feels they need and can afford close protection. Close protection is a high stakes service but is highly profitable. The service can be provided as once-off or on a retainer basis.

Other Security Products And Services

Other security services that you can offer include Mobile Patrol, K9 security, Cash Handling and Armed Escort Services. The other security products that you can offer include Security Alarms, CCTV Systems, Access Control Systems, Gate Automation and Tracking Systems. Your security services business plan should outline all the products and services that you are going to offer.

Staff & Management

The model of personnel doubling up duties can be employed for a security company business. It is not always the case that everyone is in the field. This means a security guard can also perform administrative or secretarial duties. This goes a long way in keeping your human resources tight to minimize operating costs. You basically need the security guards and office or administrative staff to begin with. The salary costs of all your personell should be included in the security company business plan.

Budgeting and Financial Planning

Budgeting and financial planning form the cornerstone of a prosperous security company business. Irrespective of whether you’re embarking on a startup venture or seeking to expand an existing operation, meticulous financial management is a non-negotiable aspect of success. The process commences with estimating startup costs, meticulously accounting for licensing fees, equipment purchases, marketing expenses, legal and insurance fees, and office space rentals. A well-structured budget serves as a financial road map, facilitating secure funding acquisition and preempting unforeseen financial challenges. Moving forward, the realm of financial planning encompasses a meticulous assessment of operational expenses. Anticipating costs related to employee salaries, insurance premiums, utility bills, vehicle maintenance, and other overheads is vital for financial stability. Accurate revenue projections, based on a thorough understanding of pricing strategies, target market size, and competitive positioning within the security industry, further fortify the financial planning process. These projections provide guidance for budgeting efforts and the establishment of realistic financial objectives.

Cash flow management is equally vital, ensuring that your security company maintains sufficient working capital to cover daily expenses, compensate employees, and seize growth opportunities. Additionally, comprehensive financial planning incorporates contingency measures for unexpected events, a crucial component for safeguarding business operations in the face of unforeseen challenges. When seeking expansion or diversification, the financial plan becomes a strategic tool for evaluating investment opportunities and assessing the sustainability and profitability of growth initiatives. Moreover, tax planning strategies, devised in consultation with tax professionals, can optimize deductions and credits, ultimately enhancing your company’s financial well-being. Periodic reviews and adjustments of the financial plan ensure alignment with evolving market conditions and business objectives, securing the financial health of your security company for the long term.

Marketing Strategies

Marketing Strategies are the backbone of a thriving security company business. In an industry as competitive as security services, it’s vital to employ a diverse range of strategies to attract and retain clients while establishing a robust brand presence. First and foremost, building a compelling online presence through a professional website and employing digital marketing techniques, such as SEO and social media engagement, is imperative. This not only enhances your visibility but also allows you to connect with potential clients and share your expertise. Content marketing is equally crucial, as it positions you as an industry authority. Regularly producing informative blog posts, articles, videos, and infographics related to security topics not only educates your audience but also boosts your website’s SEO and strengthens your brand.

In addition to these digital marketing strategies, don’t underestimate the power of offline tactics like flyers, billboards, and physically approaching potential customers. Flyers can be distributed strategically in local neighborhoods or at community events to raise awareness of your security services. Billboards strategically placed in high-traffic areas can grab the attention of passersby and serve as a constant reminder of your presence. Physically approaching potential customers through door-to-door outreach or participation in local safety workshops and seminars allows for a personal connection and helps build trust within your community. Networking and forming strategic partnerships within the security industry can open doors to collaborative opportunities, such as bundled services or referrals, enhancing your reach. Leveraging customer testimonials and case studies builds trust by showcasing your track record of success. Implementing a referral program encourages satisfied clients to bring in new business. By combining these traditional marketing methods with digital strategies, your security company can create a well-rounded marketing approach that reaches a wider and more diverse audience.

Identifying and catering to potential customers is pivotal for the success of your security company business, as different client segments have distinct security needs. Residential clients, including homeowners and renters, seek services like alarm system installation and home monitoring to protect their families and properties. Meanwhile, commercial businesses, spanning small enterprises to large corporations, require comprehensive security solutions such as access control systems, surveillance, and alarm monitoring to safeguard their premises, assets, and employees. Retail stores also constitute a significant market, seeking services like surveillance systems and loss prevention to address security challenges related to theft prevention and employee safety.

Corporate offices and educational institutions prioritize security as well, with demands for advanced solutions like access control, biometric systems, and security consulting services. Healthcare facilities, including hospitals and clinics, rely on security services encompassing access control, video monitoring, and security personnel to ensure the safety of patients, staff, and sensitive medical information. Financial institutions, including banks, require stringent security measures to protect assets and customer data, necessitating services such as bank security consulting, alarm systems, and security personnel. Government agencies, with their unique security needs, require specialized services that cater to public facility protection and sensitive data security, ensuring compliance with security regulations.

Industrial and manufacturing facilities seek security solutions like access control, surveillance, and security assessments to protect their equipment, facilities, and intellectual property. Event management companies may require security personnel for crowd control, access management, and emergency response during large gatherings, concerts, or festivals. Construction sites also need security services to prevent theft and vandalism, which may include surveillance, on-site security guards, and access control. Property management companies overseeing apartment complexes, gated communities, or commercial buildings often seek security services to ensure the safety of residents and tenants. By understanding and addressing the diverse needs of these potential customer segments, your security company can effectively tailor its services, attracting and retaining clients in a competitive industry while building strong relationships across various sectors.

Keys To Profitability

Unlocking profitability in the security company business requires a multifaceted approach that integrates several key strategies and considerations. First and foremost, effective cost management is crucial to minimize unnecessary expenditures without compromising the quality of our services. This involves optimizing staffing levels, negotiating favorable supplier contracts, and leveraging technology for efficiency gains. Additionally, pricing strategies must strike a balance between competitiveness and profitability, reflecting the value provided while ensuring healthy profit margins. Maintaining strong client relationships through exceptional service and loyalty programs is another pivotal factor. Customer retention is not only cost-effective but also contributes significantly to long-term profitability. Diversifying our service offerings and exploring opportunities for complementary services can open up additional revenue streams.

Efficient marketing and lead generation strategies, tailored to target ideal clients, must be consistently assessed for effectiveness to allocate resources wisely. Furthermore, investing in employee training and development is crucial, as skilled and motivated staff enhance service quality and efficiency. Embracing technology solutions that improve security operations and client experiences is also essential. Rigorous quality control measures, combined with a culture of continuous improvement, ensure consistent service delivery and client satisfaction. Efficient cash flow management safeguards financial stability, while market expansion into underserved areas or niche segments can lead to new revenue streams. Legal and regulatory compliance is imperative to avoid costly penalties or reputational damage.

Pre-Written Security Company Business Plan (PDF, Word And Excel): Comprehensive Version, Short Funding/Bank Loan Version and Automated Financial Statements

For an in-depth analysis of the security services business, we encourage you to purchase our well-researched and comprehensive security services business plan. We introduced the business plans after discovering that many were venturing into the security business without enough knowledge and understanding of how to run the business, lack of understanding of the financial side of the business, lack of understanding of : the industry, the risks involved , costs and profitability of the business; which often leads to disastrous losses.

The StartupBiz Global security business plan will make it easier for you to launch and run your security company business successfully, fully knowing what you are going into, and what’s needed to succeed in the business. This is a complete business plan for a security company business. It will be easier to plan and budget as you will be aware of all the costs involved in setting up and running the security business.

Uses of the Security Services Business Plan (PDF, Word And Excel)

The security company business plan can be used for many purposes including:

• Raising capital from investors/friends/relatives
• Applying for a bank loan
• Start-up guide to launch your security company business
• As a security company business proposal
• Assessing profitability of the security company business
• Finding a business partner
• Assessing the initial start-up costs so that you know how much to save
• Manual for current business owners to help in business and strategy formulation

Contents of the Security Company Business Plan (PDF, Word And Excel)

The business plan for security company includes, but not limited to:

• Marketing Strategy
• Financial Statements (monthly cash flow projections, income statements, cash flow statements, balance sheets, break even analysis, payback period analysis, start-up costs, financial graphs, revenue and expenses, Bank Loan Amortization)
• Industry Analysis
• Market Analysis
• Risk Analysis
• SWOT & PEST Analysis
• Operational Requirements
• Operational Strategy
• Why some people in the security company business fail, so that you can avoid their mistakes
• Ways to raise capital to start your security company business

The security company business plan package consists of 4 files

• Security Company Business Plan – PDF file (Comprehensive Version – 72 Pages)
• Security Company Business Plan – Editable Word File (Comprehensive Version – 72 Pages)
• Security Company Business Plan Funding/Bank Loan Version- Editable Word File (Short version for applying for a loan/funding – 42 pages)
• Security Company Business Plan Automated Financial Statements – (Editable Excel File)

The business plan can be used in any country and can be easily edited. The financial statements are automated. This implies that you can change eg the costs, salaries etc, and all the other financial statements will automatically adjust to reflect the change. 

Click below to download the Contents Page of the Security Company Business Plan (PDF)

Testimonial 5

I was able to understand the business side of farming because of your business plan. You did extensive research; the business plan was well prepared and fully detailed.  It made everything clear, and I have somewhere to start now. I am confident that I am going to succeed in my business because of the guidance from your business plan.

Testimonial 2

Many thanks for your incredibly efficient service and thorough business plan. I am very impressed with the business plan. Before I bought the business plan, I tried to do my own business plan – it was such a nightmare and it turned out badly, also not to mention the stress it caused me. I wish I knew about your website earlier!

Testimonial 1

StartupBiz Global provided a very professional and comprehensive business plan which I used for my business. The business plan was easy to edit, and I was able to get the funding which I wanted. I highly recommend their business plans.

Testimonial 7

I found Startupbiz Global online when I was in desperate need of a business plan. I was overwhelmed by the quality of the business plan, it’s comprehensive and well researched! I did not have to wait to get the business plan, I got it instantly after payment. I highly recommend Startupbiz Global, and would happily use them again in the future.

Testimonial 6

I purchased a business plan from you, and I’m glad to inform you that I was able to get my loan, and I’m starting my poultry farming business on the 1 st of July. This was made possible because of your business plan. Thank you very much, you made my dream come true.

Testimonial 3

I was extremely lucky to come across StartupBiz Global. Their business plan exceeded my expectations, and most importantly I was able to secure a loan from my bank. Thank you guys, now my dreams are coming true!

Testimonial 8

Just wanted to say I am very happy with the business plan and I will gladly recommend your products, thank you very much and have a great day.

Testimonial 4

The business plan which I purchased from your website saved me TIME and MONEY! The layout of the business plan was excellent. The financial statements were detailed and easy for me to edit. I will come back to purchase another business plan soon.

Get the Security Company Business Plan (PDF, Word And Excel)

Click Buy Now  below to purchase using Paypal, Credit Card, or Debit Card. After you have purchased, you will immediately see the download link for the business plan package on the screen. You will also immediately get an email with the business plan download link. The Pre-written business plan package (PDF, Word, and Excel) costs $30 only!

If you want to purchase multiple business plans at once then click here: Business Plans Store.

The business plan package is a zipped compressed file containing the PDF, Word and Excel documents. To open the package after downloading it, just right click, and select Extract All. If you have any problems in downloading and opening the files, email us on [email protected] and we will assist you.

We wish you the best in your security company business! Check out our collection of business plans  , and more business ideas .

Related Posts

Profitable Poultry Farming Business Ideas

Guide On Livestock Farming Business Plan

Starting Tomato Farming Business Plan (PDF)

Starting Auto Spare Parts Store Business Plan (PDF)

Join our mailing list to receive the latest posts and updates from our website.

You have Successfully Subscribed!

Security Company Business Plan Template

Written by Dave Lavinsky

Security Company Business Plan

You’ve come to the right place to create your Security Company business plan.

We have helped over 5,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Security Companies.

Below is a template to help you create each section of your Security Company business plan.

Executive Summary

Business overview.

KB Security is a new security company located in San Antonio, Texas. KB Security provides security professionals to local establishments that need protection for their business or assets. We train our professionals for numerous situations so they are prepared for any security job. This includes anything from theft prevention to handling crisis situations. Whatever our clients’ concerns are, they can rest assured that they have hired the best security professionals in the San Antonio area.

KB Security is founded by Keith Baldwin, who has been a security professional for ten years. He has worked both as a professional security guard and as a certified trainer. In addition to his experience, he also holds an MBA. Keith’s combination of experience and education have given him the knowledge and skills to run a successful security company.

Product Offering

KB Security provides security professionals that can help businesses with all their security and surveillance needs. These can include but are not limited to:

• Protecting individuals
• Guarding property
• Preventing theft
• Helping with crisis situations

Businesses can sign up with one of our flexible contract programs when hiring our security services. We also offer a discounted trial period for those who are considering a long-term contract and want to test out our services before signing.

Customer Focus

KB Security will target local businesses, government organizations, and individuals located in San Antonio who need to hire security professionals. We expect most of our clients to be retail establishments who need help with theft prevention and guarding property and assets.

Management Team

KB Security is founded by Keith Baldwin, who has been a security professional for ten years. He has worked both as a professional security guard and as a certified trainer and received an MBA from the University of Texas. Keith’s education and experience has given him all the essential skills to run his dream security company. However, he will also hire other administrative staff to help him with the essential day-to-day functions.

Success Factors

KB Security will be able to achieve success by offering the following competitive advantages:

• Expert Security Professionals: KB Security only hires the best security professionals that have extensive training in security protocols.
• Location: KB Security is in a prime location, giving us quick and easy access to prime commercial districts. This is ideal especially when hired to handle crisis situations or alarm response.
• Affordable Pricing: The services offered by KB Security are similar in quality to its most premium-positioned competitors but are offered at a more affordable price.
• Management: Our management team has years of security and business experience that allows us to market to and serve customers in a much more sophisticated manner than our competitors.

Financial Highlights

KB Security is seeking a total funding of $300,000 of debt capital to open its office. The funding will be dedicated towards securing the office space and the office build-out. Funding will also be dedicated towards three months of overhead costs to include payroll of the staff, rent, and working capital. The breakout of the funding is below:

• Office design/build: $100,000
• Three months of overhead expenses (payroll, rent, utilities): $100,000
• Marketing & advertising: $50,000
• Working capital: $50,000

The following graph below outlines the pro forma financial projections for KB Security.

Company Overview

Who is kb security.

  KB Security is founded by Keith Baldwin, who has been a security professional for ten years. He has worked both as a professional security guard and as a certified trainer. In addition to his experience, he also holds an MBA. Keith’s combination of experience and education have given him the knowledge and skills to run a successful security company.

KB Security’s History

After surveying the local customer base, and finding a potential office location, Keith Baldwin incorporated KB Security as an S-Corporation on May 1st, 2023.

Currently, the business is being run out of Keith’s home office, but once the lease on KB Security’s location is finalized, all operations will be run from there.

Since incorporation, KB Security has achieved the following milestones:

• Found a commercial space and signed a Letter of Intent to lease it
• Developed the company’s name, logo, social media accounts, and website
• Began networking with some of the area’s largest companies to understand their security needs
• Began recruiting key employees

KB Security’s Services

Businesses can sign up with one of our flexible contract programs when hiring our security services. We also offer a discounted trial period for those who are considering a long-term contract and want to test out our services before signing.  

Industry Analysis

With increasing illegal events, terrorism, and fraudulent activities happening all around the world, the demand for professional security is greater than ever. Every establishment needs some form of security, whether it be in the form of security professionals or in the form of cybersecurity. As the world continues to navigate its violent challenges, security professionals will be needed to protect important assets and respond to crisis situations.

The security industry has transformed substantially to meet this demand. In addition to hiring security professionals, many businesses also invest in security tech such as cameras, motion sensors, and software. Security companies that offer a mix of security personnel and technology can provide their clients extensive and tight-knit security options that puts their clients’ minds at ease.

According to research, the security industry is expected to grow at a compound annual growth rate of 8% over the next 10 years. This is substantial growth, which shows just how essential the industry will be in the coming decade. Businesses like KB Security will continue to be in high demand and very profitable.

Customer Analysis

Demographic profile of target market.

The demographics for San Antonio, Texas are as follows:

Customer Segmentation

We will primarily target the following customer segments:

• Individuals
• Local businesses
• Government organizations

Competitive Analysis

Direct and indirect competitors.

KB Security will face competition from other companies with similar business profiles. A description of each competitor company is below.

Sky High Security

Sky High Security is a security company that was established in 2002. It provides a large team of security professionals specifically trained to protect high-value assets, such as museum collections and expensive jewelry. Their services include providing in-person officers as well as high-tech surveillance equipment.

Prime Security

Founded in 2003, Prime Security is the best security company in town for those looking for guard and patrol services. Prime Security aims to protect establishments and offer patrols to deter any unwanted visitors. The company has been highly successful and is the largest security company in the region.

First Responders Security

First Responders Security is the most popular security company for those who have more complex security concerns. They offer a wide range of services, including alarm response, theft prevention, and patrolling. Instead of hiring several companies to do several jobs, companies can depend on First Responders Security to manage all of their security concerns.

Competitive Advantage

KB Security will be able to offer the following advantages over their competition:

Marketing Plan

Brand & value proposition.

KB Security will offer the unique value proposition to its clientele:

• Professional security services
• Flexible contracts and a trial period
• Great security services at moderate rates
• Excellent customer service

Promotions Strategy

The promotions strategy for KB Security is as follows:

KB Security understands that the best promotion comes from satisfied customers. The company will encourage its clients to refer other businesses by providing economic or financial incentives for every new client produced. This strategy will increase in effectiveness after the business has already been established.

Social Media

KB Security will invest heavily in a social media advertising campaign. The brand manager will create the company’s social media accounts and invest in ads on all social media platforms. It will use targeted marketing to appeal to the target demographics.

Website/SEO

KB Security will invest heavily in developing a professional website that displays all of the features and benefits of KB Security. It will also invest heavily in SEO so that the brand’s website will appear at the top of search engine results.

Direct Mail

KB Security will blanket businesses with direct mail pieces. These pieces will provide general information on KB Security, offer discounts, and/or provide other incentives for companies to use our services.

KB Security’s pricing will be on par with competitors so clients feel they receive great value when hiring our security services.

Operations Plan

The following will be the operations plan for KB Security.

Operation Functions:

• KB Security will be owned and operated by Keith Baldwin. Keith will oversee the general operations of the company.
• Keith is joined by Jeffrey Liebowitz, who will oversee all financial and accounting aspects of the business, such as accounts payable and receivable, payroll, budgeting, forecasting, and cash flow analysis. Jeffrey will also manage all tax obligations and licensing for KB Security.
• Keith is also joined by Felicia Monroe, who will oversee all marketing and communications for the business. She will handle all in-client calls, appointments, networking, and follow-up. She will manage all advertising aspects with flyers, emails, social media, and the SEO process.
• Keith will hire an Administrative Assistant to help him with general administrative and operations tasks.
• Keith will also hire an extensive staff of security professionals that will help his clients with their security needs. He will also provide these professionals with training as necessary.

Milestones:

KB Security will have the following milestones completed in the next six months.

• 8/1/202X – Finalize contract to lease office space.
• 9/1/202X – Begin build-out and design of staffing agency office.
• 10/1/202X – Begin social media and website advertising campaign.
• 11/1/202X – Attend large industry networking events.
• 12/1/202X – Hire key employees.
• 1/1/202X – Grand opening of KB Security.

Financial Plan

Key revenue & costs.

KB Security’s revenues will come primarily from charging clients for its security services. Depending on the contract in place, KB Security may charge an hourly fee per professional working for the client or a flat fee per month.

The office lease, equipment, supplies, and labor expenses will be the key cost drivers of KB Security. Ongoing marketing expenditures are also notable cost drivers for KB Security, especially in the first few years as the company establishes itself in the market.

Funding Requirements and Use of Funds

Key assumptions.

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and pay off the startup business loan.

• Year 5: 110
• Office Lease per Year: $100,000

Financial Projections

Income statement.

Balance Sheet

Cash Flow Statement

Security Company Business Plan FAQs

What is a security company business plan.

A security company business plan is a plan to start and/or grow your security company business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your Security Company business plan using our Security Company Business Plan Template here .

What are the Main Types of Security Company Businesses?

There are a number of different kinds of security company businesses , some examples include: Crisis management, Security guards, Surveillance company, and Security patrol.

How Do You Get Funding for Your Security Company Business Plan?

Security Companies are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

What are the Steps To Start a Security Company Business?

Starting a security company business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Security Company Business Plan - The first step in starting a business is to create a detailed security company business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your security company business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your security company business is in compliance with local laws.

3. Register Your Security Company Business - Once you have chosen a legal structure, the next step is to register your security company business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.

4. Identify Financing Options - It’s likely that you’ll need some capital to start your security company business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.

7. Acquire Necessary Security Company Equipment & Supplies - In order to start your security company business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation.

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your security company business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.

Learn more about how to start a successful security company :

• How to Start a Security Company

How To Write a Business Plan for Security Agency in 9 Steps: Checklist

By alex ryzhkov, resources on security agency.

• Financial Model
• Business Plan
• Value Proposition
• One-Page Business Plan
• SWOT Analysis
• Business Model
• Marketing Plan
• Bundle Business Plan & Fin Model

Starting a security agency can be a lucrative business, especially with the growing demand for security services in today's uncertain world. According to IBISWorld, the security services industry's revenue is expected to grow by 3.9% in 2021. If you're considering starting a security agency, then this article is for you. In this post, we'll take you through 9 key steps to help you write a winning business plan.

Before you start putting together your business plan, it's important to conduct market research and analysis to identify the current demand for security services in your local area. You need to know your target audience and what types of security services are in high demand. This will help you determine the services you should offer, and how to price them.

Defining your business structure is important as you need to meet legal requirements to start a security agency. You need to choose the right business entity, obtain licenses and permits, and register your business with the appropriate authorities. The legal structure you choose will impact aspects such as taxes, liability, and financing.

Creating a marketing strategy will help you reach your target audience and promote your services. You can use traditional and digital marketing methods that are in line with your target market's preferences.

To ensure your business's success, it's important to assess personnel and hiring needs . You'll need to understand the qualifications, certifications, and experience required for hiring personnel and the cost implications for vetting and training your staff.

Establishing partnerships and collaborations with other security service providers, private investigators, and law enforcement agencies can help you increase the services you can offer to clients while taking advantage of other businesses' expertise.

Finally, it's vital to create a mission and values statement to define what your business stands for and the goals you're working towards. By creating a vision of who you are and what you want to achieve, you'll be able to align your business to your clients' and staff's expectations.

By following these nine tips, you'll be well on your way to writing a winning business plan for your security agency.

Conduct Market Research And Analysis

Starting any business requires extensive research and analysis to ensure its success. Conducting market research is an essential step in developing a successful security agency. Market research enables you to establish the potential demand for your services and discover the competition. Additionally, it can provide you with insights about the industry trends and techniques that your agency can implement to stay ahead of the curve.

One essential factor in conducting market research is identifying your potential target audience . Your security agency may provide services to a wide variety of clients, including small and medium-sized businesses, large corporations, and individuals. Identifying the needs and requirements of your target audience can help you tailor your services and develop marketing campaigns that resonate with them.

Market Research Tips:

• Use industry analysis reports and publications to determine the latest trends in security.
• Competitor analysis can provide an overview of the services provided and pricing structure.
• Utilize online surveys or focus groups to capture essential demographic data about your target clients.
• Explore alternatives for funding your security business.

Furthermore, determining the types of services and pricing is a crucial step in establishing the viability of your business. By conducting surveys and interviews with potential clients, the ideal services package can be identified. The results of this survey will help you develop pricing packages that reflect the price point anticipated by clients.

Another essential aspect of market research is conducting a feasibility study to evaluate the profitability of the business. This study identifies the levels of requirements by clients and the competition, to determine the expected level of competition and revenue. With this information, a revenue model can be developed that incorporates the expected revenue sources for the security agency.

Feasibility Study Tips:

• Evaluate the financial requirements for starting and operating a security agency to obtain the necessary startup capital.
• Analyze the market size, profitability, and growth potential for your business.
• Investigate the required resources and infrastructure needed to start and operate the business successfully.
• Ensure compliance with state and federal regulations, such as legal requirements, licenses, and permits.

Conducting market research requires time and effort, but it's a critical step in launching a successful security agency. It helps you understand the competition, identify your target audience, develop pricing and services packages, and determine the feasibility of your business.

Identify Target Audience

The success of your security agency depends on identifying your target audience . It's important to determine who your potential clients are and what type of security services they require. Understanding your target audience's security needs and preferences can help you develop services that specifically cater to them.

To identify your target audience, research your potential clients using demographic data, market trends, and customer feedback. Consider factors such as location, age, industry, size, and revenue. You can also study your competitors to determine their target audience and what services they offer.

• Consider conducting surveys or focus groups to gain direct feedback from potential clients.
• Use social media analytics to track engagement and determine your audience's interests and behavior.

Once you've identified your target audience, create buyer personas to make your marketing efforts more effective. A buyer persona is a fictional representation of your ideal client based on market research and customer feedback. It should include information such as demographics, behavior, goals, pain points, and objections.

By understanding your target audience and creating buyer personas, you can tailor your marketing messaging, services, and pricing to meet their needs and preferences. This can help you create a competitive advantage in the market and attract and retain clients.

Determine Services And Pricing

Once you have conducted market research and identified your target audience, it's time to determine the services you will offer and how much they will cost.

Define Your Services: Start by determining the services that you want to offer based on the needs of your target audience. As a security agency, you could offer services such as video surveillance, access control, site security, investigation, personal and executive protection, security consulting, and risk assessment. Consider the services that will be in high demand in your niche and those that will be profitable for your business in the long run.

Set Pricing: The next step is to set the prices for your services. You should ensure that your prices are competitive in the market and that they are profitable for your business. Consider the resources that will be required to deliver each service, including labor, materials, and equipment. Take into account the prevailing market rates and adjust your prices up or down accordingly.

Create Packages: To make it easier for clients to choose your services, consider creating packages that combine two or more services. This will not only simplify the decision-making process for clients but also increase the value of your services. You could create different packages for small, medium-sized, and large businesses depending on their needs.

• Ensure that your prices are transparent and that clients know exactly what they are paying for.
• Consider offering discounts to clients who sign long-term contracts.
• Provide a clear breakdown of costs to clients, including labor costs, equipment costs, and any other expenses that may be incurred.
• Continuously review your pricing strategy to ensure that it remains competitive and profitable.

By determining your services and pricing, you will be able to communicate the value of your business to potential clients. Ensure that your pricing strategy is competitive and that your services are designed to meet the needs of your target audience. Remember, pricing is not set in stone, so you may need to adjust your prices from time to time to remain competitive in the market.

Define Business Structure and Legal Requirements

When starting a security agency, it is important to define the business structure and legal requirements. The structure of your business will determine how it is legally organized and operated, and the legal requirements will vary depending on your location and the services you provide.

Choose your business structure: The most common business structures include Sole Proprietorship, Partnership, Limited Liability Company (LLC), and Corporation. Each structure has its own benefits and drawbacks, so research them thoroughly before making a decision. Consider consulting with a business attorney and a financial advisor to make an informed decision on the best structure for your security agency.

• Consider the tax implications of each structure - some may have more favorable tax treatment than others.
• Think about the liability protection each structure provides - you may want to protect your personal assets from business liabilities.
• The structure you choose can affect the ease of obtaining financing and the flexibility in managing your assets and operations.

Register Your Business: Registering your security agency will depend on your location and business structure. Check with your state and local governments to determine the specific requirements for your business. This may include obtaining a business license, registering for a sales tax permit, and other regulatory requirements specific to the security industry.

Obtain Necessary Permits and Licenses: Depending on the services you plan to offer, you may need additional permits and licenses to operate legally. Research and apply for any necessary permits or licenses, such as a private investigator license or a security guard permit.

• Keep in mind that permit and licensing requirements may vary by state and even by municipality, so research those regulations thoroughly.
• Ensure that your team and yourself are properly trained and certified in the services you'll be providing to avoid legal issues.
• Consider obtaining certifications from industry organizations like ASIS International, which can add credibility and increase your knowledge.

Protect your Intellectual Property: Consider protecting your intellectual property, such as your business name or logo, by registering for trademarks and copyrights with the United States Patent and Trademark Office (USPTO) and the Copyright Office.

Have Legal Contracts Prepared: Having legal contracts prepared is crucial for any security agency to ensure that all parties involved are clear about the terms and conditions of the services provided. Consult with an attorney to draft solid contracts, including service agreements, non-disclosure agreements, and any other legally-binding documents that are relevant to your services.

• Be sure to have contracts that are fair and legally binding to both parties.
• Make sure all contracts include detailed information about the services to be provided, payment terms, and any other important details to avoid misunderstandings or disputes.
• Get legal advice when drafting contracts especially when dealing with very important clients.

By defining the business structure and legal requirements of your security agency, you can ensure that your business will operate within the bounds of the law and protect your assets.

Develop A Marketing Strategy

Now that you’ve determined your target audience, services, and pricing, it’s time to develop a marketing strategy to reach potential clients. Your marketing plan will outline how you plan to promote your security agency and how you can differentiate yourself from competitors.

Identify Marketing Tactics: Start by identifying the marketing tactics you plan to use. This might include creating a website, business cards, brochures, social media, advertising, and attending industry conferences. Be sure to choose tactics that will reach your target audience effectively.

• Include CTA (Call To Action) buttons on all of your marketing materials, prompting potential clients to contact you.
• Utilize paid advertising, including Google Ads or Facebook Ads, to reach a larger audience.
• Consider sponsoring local events to increase brand awareness.

Create a Content Strategy: Developing a content strategy and creating valuable content showcases your expertise and attracts potential clients. This might include blog posts, white papers, videos, case studies, and social media posts. Choose topics that are relevant to your target audience and provide helpful information that positions you as a knowledgeable resource.

• Research keywords and use them in your content to improve your website’s search engine optimization (SEO).
• Utilize social media channels to distribute content and engage with potential clients.
• Encourage satisfied clients to leave reviews on Google or social media to increase your company’s online presence.

Monitor and Adjust: Regularly monitor the effectiveness of your marketing plan so you can adjust as needed. This can include analyzing website traffic, measuring engagement on social media, and tracking leads. Use this data to make informed decisions on what is working and what needs to be changed.

• Create campaigns and track their performance (e.g. ROI) to evaluate which are most effective.
• Stay up-to-date on industry trends and adjust your strategy accordingly.

Determine Financial Projections And Funding Sources

One of the most crucial steps in starting a security agency is determining your financial projections and identifying potential funding sources . This will help you understand the financial viability of your business and get the necessary funding to start and sustain the business.

Financial Projections: To create your financial projections, you need to estimate your revenue, expenses, and expected profits for the first few years of operations. This will help you make informed decisions about the capital you'll need to start and grow your business, such as identifying if you'll need a loan or investors.

• Use accurate and realistic numbers based on market research and analysis.
• Be conservative in your estimates to avoid overestimating your revenue and underestimating your expenses.
• Consider hiring an accountant or financial advisor to help you with your financial projections.

Funding Sources: There are different funding options to consider when starting a security agency. Some of the available options include your personal savings, bank loans, venture capitalists, angel investors, and crowdfunding platforms.

• Research and compare funding options before making a decision.
• Be prepared to provide a solid business plan, financial projections, and possible return on investment to potential investors and lenders.
• Consider seeking the help of a financial advisor to assist you in selecting the financing option that best meets your needs and budget.

It's worth noting that starting a security agency requires a considerable financial commitment, and it may take some time before the business starts making a profit. Plan for potential setbacks and ensure you have a backup plan in case the business doesn't perform as expected.

Remember, financial projections and funding sources play a crucial role in determining the success of your business. Take the time to carefully consider your options and seek professional advice when necessary.

Assess Personnel And Hiring Needs

In order to ensure that our security agency is efficient and reliable, it's important that we assess our personnel and hiring needs early on. This will help us determine the number of employees required, the necessary qualifications, and the overall structure of our team.

We can begin by outlining the roles and responsibilities we need to fill . For instance, we might need surveillance officers, site security personnel, personal and executive protection specialists, or security consultants. By outlining these roles, we can gain a clearer understanding of the skills, training, and experience required for each.

It's also important to determine the number of employees we need to hire . This will depend on the size and scope of our operations and the number of clients we anticipate serving. We must ensure that we have enough personnel to provide round-the-clock security services to customers. Additionally, we should consider hiring backup personnel to cover any potential sick days or vacation periods of our main team members.

We must define the qualifications and certifications necessary for each role . This ensures that all personnel hired meet our quality standards and the needs of our clients. We might require a specific degree or qualification in criminology or previous work experience in a similar role.

The hiring process should also be considered carefully . We need to determine the recruitment process, job descriptions and qualifications for each position and compensation rates. A well-organized hiring process ensures that we hire the right people, with the right skill sets, which in turn strengthens the reputation and quality of our security agency.

• Consider hiring personnel with a range of languages proficiency as they can cater to clients who speak other languages.
• Require personnel to maintain certification and remain up to date with training.
• Consider conducting background checks on potential hires for safety and security purposes.

Assessing our personnel needs early on can save us money and headaches in the long run by ensuring we hire the right people for our business objectives.

Establish Partnerships And Collaborations

One important step in starting a successful security agency is to establish partnerships and collaborations. This not only helps your business grow but also enhances the quality of your services and raises your credibility in the market. Here are some things to consider when building partnerships:

• Identify potential partners - Look for companies or individuals in the security industry who complement your services, share your values, and have a proven track record of success.
• Build relationships - Reach out to potential partners and establish relationships by attending industry events, joining professional organizations, or setting up meetings.
• Define partnership goals - Clearly define the purpose of the partnership and identify mutual benefits to both parties. Outline specific goals, deliverables, and timelines to ensure a successful partnership.
• Establish terms and agreements - Once you have identified the right partner, negotiate mutually beneficial terms and agreements that outline expectations, responsibilities, and financial arrangements.
• Ensure compatibility - Ensure that the partnering company has a culture, values, and working style that is compatible with your business.
• Consider long-term partnerships - Look for long-term partnerships instead of short-term collaborations to build a sustainable business model.
• Research potential partners thoroughly to ensure that they fit your business vision and values.
• Don't rush into partnerships - take the time to establish a strong relationship and ensure compatibility before entering into any agreement.
• Be transparent and discuss any concerns or conflicts upfront to avoid misunderstandings later on.
• Keep communication lines open during the partnership to track progress and make adjustments as needed.

Building partnerships and collaborations can be a challenging process, but it can also be a rewarding one. It can help you to expand your services, enhance your capabilities, and build a strong brand reputation. By investing time and effort into establishing the right partnerships, you can set your security agency on the path to success.

Create A Mission And Values Statement

Creating a mission and values statement is a crucial step in defining the purpose and direction of your security agency. A mission statement sets out the overall goals and objectives of your company, while a values statement outlines the guiding principles and beliefs that will govern your business decisions and operations.

Your mission and values statement should be clear, concise, and memorable. It should reflect the unique identity and vision of your security agency and communicate your commitment to delivering high-quality security services to your clients.

Tips for Creating a Mission and Values Statement:

• Involve your team in the process to ensure buy-in and alignment with your company's values and mission
• Keep it short and to the point. A concise statement is easy to remember and communicate to stakeholders
• Make it aspirational. Your mission and values statement should inspire your team and clients to strive for excellence and uphold your core beliefs
• Ensure consistency. Your mission and values statement should align with your company culture, brand identity, and marketing messaging
• Revisit and revise your mission and values statement periodically to ensure it remains relevant and effective in guiding your company's decisions and operations

To create your mission statement, consider the following questions: What does your security agency stand for? What are your core values and beliefs? How can you best deliver value to your clients?

To create your values statement, consider the following questions: What behaviors and actions do you expect from your team members? What standards of excellence do you strive to achieve? How can you create a culture of trust, integrity, and respect within your organization?

Remember, your mission and values statement will serve as the foundation for your business strategy and operations. By clearly defining your purpose, beliefs, and goals upfront, you can establish a strong and sustainable security agency that meets the needs of your clients and team members alike.

Writing a business plan is an essential step in starting and running any successful venture, and creating a plan for a security agency is no different. By following these nine steps, you can develop a comprehensive and effective business plan that outlines your market research, target audience, services, pricing, legal requirements, marketing strategies, financial projections, personnel needs, partnerships, and mission statement. With a well-crafted plan, you can increase your chances of success and help ensure the safety and security of your clients.

$169.00 $99.00 Get Template

Related Blogs

• Starting a Business
• KPI Metrics
• Running Expenses
• Startup Costs
• Pitch Deck Example
• Increasing Profitability
• Sales Strategy
• Rising Capital
• Valuing a Business
• How Much Makes
• Sell a Business
• Business Idea
• How To Avoid Mistakes

Leave a comment

Your email address will not be published. Required fields are marked *

Please note, comments must be approved before they are published

ZenBusinessPlans

Home » Sample Business Plans » Security

A Sample Security Guard Business Plan Template

Are you about starting a security guard company? If YES, here is a complete sample security guard business plan template & feasibility report you can use for FREE . There is hardly any corporate building, business facility or highbrow residential estate that doesn’t have security guards. This goes to show that the security industry is an integral part of our world especially in periods such as this when crime and terrorism has reached an all – time high.

A security guard company is any company that provides both armed and unarmed security related services to both private and public clients at an agreed fee. According to the united states of Bureau of Labor Statistics, a private security company engages in services like providing security guards (bodyguard, guard dog, parking security and security guard services) and patrol services et al.

A Sample Security Guard Company Business Plan Template

1. industry overview.

The private security industry that security guard business falls under is indeed a fast – growing industry, at present there are about 2 million full – time security workers in the United States of America and this number is expected to grow by an estimate of 21 percent by 2022.

The global private security services industry was worth approximately 96 billion U.S. dollars in 2013 and statistics has it that the largest share of this market was held by Europe at almost 30 percent, then followed by Asia (with the exception of Japan) and North America.

The income of the private security services industry was set to reach an estimate of about 25 billion U.S. dollars in the United States in 2014. Security alarm services alone in the United States of America generated a whooping sum of 17 billion U.S. dollars per year between 2008 and 2014.

Statistics shows that in 2013, the money generated by the global security technology and related services market rose to just over 67 billion U.S. dollars and it was projected to reach an estimate of about 86 billion by the year 2016. Statistics also has it that the global spending on ICT related security services was set to reach approximately 50 billion U.S. dollars in 2015.

The private security industry is indeed a large industry which is why some of the leading private security companies worldwide such as UK-based G4S, Sweden-based Securitas AB and U.S.-based ADT Corporation – in 2013 could boast of generating 12.08 billion, 10.12 billion and 3.31 billion U.S. dollars respectively in just a calendar year.

In the United States of America, the fastest growing private security company in 2013 was Innovative Surveillance Solutions with a three – year combined revenue growth of about 5,605 percent.

The private security industry is one industry that is growing despite the fact that the government of various countries are not relenting when it comes to providing security for her citizens. One thing is certain, the private security industry is an evolving one and new technology and approaches are being employed when it comes to delivering standard and safer security services.

The industry can’t be said to be oversaturated simply because there are different areas (niches) a private security company can specialize in and if you are good with what you do, then you won’t struggle much to attract clients.

The factors that encourage entrepreneurs to venture into the private security industry is the ability to get good returns on their investment with minimal risks. For example, when you secure a contract to provide security guards for an event or an organization, the norm is that you will be financially mobilized before executing the contract.

People also get encouraged start their own private security companies because on the average it is cost effective to manage the business. It is the practice for private security outfits to recruit and train security guards, body guards and security dogs et al only when they have a security contract to execute which is why they don’t usually maintain a large workforce.

2. Executive Summary

Triple Protect® Security Guard, Inc. is an international security guard company that will be based in Beverly Hills – California. We have been able to secure all the required security clearance to run a security guard company in the United States.

We are aware that to run a standard security guard outfit can be demanding which is why we are well trained and equipped to perform excellently well. Triple Protect® Security Guard, Inc. is a client-focused and result driven security guard company that provides broad-based security services at an affordable fee that won’t in any way put a hole in the pocket of our clients.

We will offer standard and professional security services such as the prevention of unauthorized activity or entry in a specified perimeter, traffic regulation, access control, fire and theft prevention and detection, security advisory and consultancy services, roving patrol, bodyguard, and guard dog services et al to all our clients at local, state, national, and international level.

We will ensure that we work hard to meet and surpass our clients’ expectations whenever they contract their security concerns to our organization.

At Triple Protect® Security Guard, 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 private security services.

Triple Protect® Security Guard, Inc. will at all times demonstrate her commitment to sustainability, both individually and as a firm, by actively participating in our communities and integrating sustainable business practices wherever possible. We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely.

Our plan is to position Triple Protect® Security Guard, Inc. to become one of the leading brands in the private security services industry in the whole of California, and also to be amongst the top 10 security guards company in the United States of America within the first 10 years of operation.

This might look too tall a dream but we are optimistic that this will surely come to pass because we have done our research and feasibility studies and we are enthusiastic and confident that Beverly Hills – California is the right place to launch our security guard business before spreading to other parts of the United States.

Triple Protect® Security Guard, Inc. is private – partnership business that is owned by Nicholas Johnson and his friend and business partner Leonardo Michael. The organization will be managed by both of them. Mr. Nicholas Johnson and Leonardo Michael graduated from the University of California – Berkley (First Degree), and University of Harvard (MBA).

Nicholas Johnson is a Certified Security Project Manager (CSPM), Cisco Certified Security Professional (CCSP), Certified Security Compliance Specialist (CSCS), and Certified Information System Security Professional (CISSP), while Leonardo Michael is certified Industrial Security Professional (ISP®) and Global Industrial Cyber Security Professional (GICSP).

They have combined to help build Triple Protect® Security Guard, Inc. to favorably compete with leading players in the private security industry in the United States of America and on the global stage.

3. Our Products and Services

Triple Protect® Security Guard, Inc. is going to offer varieties of services within the scope of the private security services industry in the United States of America. Our intention of starting our security guard company is to make profits from the industry and we will do all that is permitted by the law in the US to achieve our aim and ambition.

Our business offerings are listed below;

• Supply of bodyguard and guard dogs
• 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

4. Our Mission and Vision Statement

• Our vision is to build a security guard company brand that will become the number one choice for both individual and corporate clients in the whole of Beverly Hills – California.
• Our mission is to provide professional and trusted private security services that will assist individuals, businesses and non-profit organizations.
• We will position the business to become the leading brand in the private security services industry in the whole of California, and also to be amongst the top 10 security guard companies in the United States of America within the first 10 years of operations.

Our Business Structure

Triple Protect® Security Guard, Inc. is a standard security guard company that intends to start small in Beverly Hills – California, but looks to grow big in order to compete with leading security guard companies both in the United States and on a global stage.

We are aware of the importance of building a solid business structure that can support the kind of world class business we want to own, this is why we are committed to only hiring the best hands within our area of operations. At Triple Protect® Security Guard, Inc., we will ensure that we hire people that are qualified, hardworking, creative, customer centric and are ready to work to help us build a prosperous business that will benefit all our stake holders.

As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more as agreed by the board of trustees of the company. In view of the above, we have decided to hire qualified and competent hands to occupy the following positions;

• Chief Executive Officer

Chief Security Officer/Manager

Security Consultant

Admin and HR Manager

Marketing and Sales Executive

• Customer Services Executive
• Security Guards

5. Job Roles and Responsibilities

Chief Executive Office:

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
• Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• In charge of fixing prices and signing business deals
• Responsible for providing direction for the business
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization
• Reports to the board
• Manages the overall activities of security staff members and equipment
• Achieves maximum profitability and over-all success by controlling costs and quality of service
• Schedule employees as necessary to ensure adequate and consistent levels of security service
• Responsible for security control policies and completion of necessary forms
• Co-ordinates the general execution of security services as requested by clients
• Summit security reports on a regular basis to the management of the organization and give professional advice as at when due
• Responsible for interviewing and hiring security guards, vendors, selecting and ordering materials, negotiating rates, coordinating the sequence of events as it relates to security services
• Plans, designs and produces security solutions (software and hardware et al) while managing all project delivery elements within time limits
• Liaises with clients to identify their security needs and to ensure customer satisfaction
• Conduct market research, gather information and negotiate contracts prior to closing any deals
• Provides security feedback and periodic reports to stakeholders
• Ensures compliance with insurance, legal, health and safety obligations
• Specifies staff requirements and coordinate their activities
• Cooperates with marketing and PR to promote and publicize safety concerns
• Proactively handle any arising issues and troubleshoot any emerging problems on the event day
• Conducts pre- and post – security evaluations and report on outcomes
• Offers security advisory and consultancy services to clients
• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Designs job descriptions with KPI to drive performance management for clients
• Regularly hold meetings with key stakeholders to review the effectiveness of HR Policies, Procedures and Processes
• Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
• Defines job positions for recruitment and managing interviewing process
• Carries out induction of new team members
• Responsible for training, evaluation and assessment of employees
• Responsible for arranging travel, meetings and appointments
• Oversees the smooth running of the daily office activities
• Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
• Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects.
• Responsible for handling business research, marker surveys and feasibility studies for clients
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Develops, executes and evaluates new plans for expanding sales
• Documents all customer contact and information
• Represents the company in strategic meetings
• Helps to increase sales and growth for the company
• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting for one or more properties.
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensures compliance with taxation legislation
• Handles all financial transactions for the company
• Serves as internal auditor for the company

Client Service Executive

• Welcomes guests and clients by greeting them in person or on the telephone; answering or directing inquiries.
• Ensures that all contacts with clients provide the client with a personalized customer service experience of the highest level
• Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
• Manages administrative duties assigned by the manager in an effective and timely manner
• Consistently stays abreast of any new information on the company’s products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries

Security Guards:

• Responsible for prevention of unauthorized activity or entry in a specified perimeter
• Handles traffic regulation services
• In charge of access control services
• Responsible for fire and theft prevention and detection services
• Part of the roving patrol services team
• Offers bodyguard services

6. SWOT Analysis

Due to our drive for excellence, we were able to engage some of the finest business consultants in Beverly Hills – California to look through our business concept and together we were able to critically examine the prospect of the business and access ourselves to be sure that we have what it takes to run a standard security guard company.

In view of that, we were able to take stock of our strengths, weakness, opportunities and also the threats that we are likely going to be exposed to in Beverly Hills – California. Here is a of what we got from the critically conducted SWOT Analysis Triple Protect® Security Guard, Inc.;

Aside from the fact that our security guard company is of world – class standard and the business is well positioned and well-equipped to meet the 21 st century demand of both high profile corporate and individual clients, we have a team that can go all the way to give our clients value for their money; a team that are trained and equipped to pay attention to details as regard security concerns. We are well positioned and we know we will attract loads of clients from the first day we open our doors for business.

As a new private security outfit, it might take some time for our organization to break into the market and gain acceptance from corporate clients in the already saturated private security services industry; that is perhaps our major weakness.

• Opportunities:

The opportunities in the private security services industry is massive considering the number of corporate and individual clients who can’t afford to leave the security of the properties and lives to government security agencies. As a standard security guard company, we are ready to take advantage of any opportunity that comes our way.

Some of the threats that we may likely face as a security guard company operating in the United States are unfavorable government policies , the arrival of a competitor within our location of operation and global economic downturn which usually affects purchasing cum spending power. There is hardly anything we can do as regards these threats other than to be optimistic that things will continue to work for our good.

7. MARKET ANALYSIS

• Market Trends

The security industry is one of the industries that are highly regulated so as to prevent costly security breaches. So, if you are looking towards starting a security guard company, then you should acquire international security certifications; it will give you an edge over your competitors. The truth is that the more relevant security certifications that you and your team have, the easier it is for you to convince people to patronize your services.

Although if you are able to build a successful security company, you can pitch your business in any part of the world and still make success especially if you run a security consultancy and advisory business. But if you are just starting out; especially if you are a newbie in the security industry, it is important that you locate your business in an area with healthy business activities.

Social media has now become one of the most important tools security guard companies leverage on to disseminate information about their security concerns, solicit feedback, and create year-round engagement with their target audience. Furthermore, new software apps and emerging technology have made it easier for security guard companies to gather all the needed data and information that will help them plan and project for the future.

8. Our Target Market

Even though Triple Protect® Security Guard, Inc. will initially serve small to medium sized businesses, from new ventures to well established businesses and individual clients, but that does not in any way stop us from growing to compete with the leading security guard companies in the United States.

As a well – equipped security guard company, Triple Protect® Security Guard, Inc. offers a wide range of security guard services hence we are well trained and equipped to service a wide range of clientele. Our target market cuts across people of different classes and people from all walks of life.

We are coming into the industry with a business concept that will enable us work with highly placed people and companies in the country and at the same with lowly placed people and smaller businesses. Below is a list of the people and organizations that we have specifically design our services for;

• Blue Chips Companies
• Corporate Organizations
• Religious Organizations
• Political Parties/Politicians
• Estates and Communities
• Celebrities
• Schools (High Schools, Colleges and Universities)
• Sport Organizations
• Entrepreneurs and Start – Ups

Our Competitive Advantage

Surviving in the business world as a security guard company requires more than your expertise, but also how to network with key people that matters.

There are loads of big time investors such as Halliburton et al that have stakes in the private security industry, but one thing is certain, there is room big enough to accommodate both the large and small security guard companies.

What smaller security guard companies need to do to survive in the industry is to concentrate on providing security services to households, event planners, estates, communities, schools, hospitals and hotels et al before bidding for big security contracts from corporations.

Triple Protect® Security Guard, Inc. might be a new entrant into the private security services industry in the United States of America, but the management staff and owners of the business are considered gurus. They are highly qualified private security experts in the United States.

Lastly, our employees will be well taken care of, and their welfare package will be amongst the best within our category in the industry, meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Triple Protect® Security Guard, Inc. is established with the aim of maximizing profits in the private security services industry and we are going to go all the way to ensure that we do all it takes to attract clients on a regular basis. Triple Protect® Security Guard, Inc. will generate income by offering the following security guard services for individuals and for corporate organizations;

• Bodyguard, and guard dog services

10. Sales Forecast

One thing is certain, there would always be corporate and individual clients who can’t afford to leave the security of their properties and lives to government security agencies.

We are well positioned to take on the available market in Beverly Hills – California and we are quite optimistic that we will meet our set target of generating enough profits from the first six months of operation and grow the business and our clientele base beyond Beverly Hills to other cities in California and other states in the U.S.

We have been able to critically examine the security guard services market and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to startups in Beverly Hills – California.

Below are the sales projection for Triple Protect® Security Guard, Inc., it is based on the location of our business and the wide range of security guard services that we will be offering;

• First Fiscal Year: $350,000
• Second Fiscal Year: $750,000
• Third Fiscal Year: $1.25 Million

N.B : This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown within the period stated above, and there won’t be any major competitor offering same services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

• Marketing Strategy and Sales Strategy

We are mindful of the fact that there is stiff competition amongst security guard companies in the United States of America; hence we have been able to hire some of the best business developers to handle our sales and marketing concerns.

Our sales and marketing team will be recruited based on their vast experience in the industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall goal of the organization. We will also ensure that our excellent job deliveries speak for us in the market place; we want to build a standard security guard services business that will leverage on word of mouth advertisement from satisfied clients.

Our goal is to grow our security guard services company to become one of the top 10 security guard services companies in the United States of America which is why we have mapped out a strategy that will help us take advantage of the available market and grow to become a major force to reckon with not only in Beverly Hills – California but also in other cities in the United States of America.

Triple Protect® Security Guard, Inc. is set to make use of the following marketing and sales strategies to attract clients;

• Introduce our business by sending introductory letters alongside our brochure to corporate organizations, religious organizations, schools, households and key stake holders in and around Beverly Hills – California
• Promptness in bidding for private security services contracts from the government and other cooperate organizations
• Advertise our business in relevant magazines, newspapers, TV and radio stations
• List our business on yellow pages ads (local directories)
• Attend relevant international and local expos, seminars, and business fairs et al
• Create different packages for different category of clients in order to work with their budgets and still deliver quality private security services to them
• Leverage on the internet to promote our business
• Engage in direct marketing approach
• Encourage word of mouth marketing from loyal and satisfied clients

11. Publicity and Advertising Strategy

We have been able to work with our brand and publicity consultants to help us map out publicity and advertising strategies that will help us penetrate our target market. We are set to take the private security services industry by storm which is why we have made provisions for effective publicity and advertisement of our security guard company.

Below are the platforms we intend to leverage on to promote and advertise Triple Protect® Security Guard, Inc.;

• Place adverts on both print (community based newspapers and magazines) and electronic media platforms
• Sponsor relevant community based events/programs
• Leverage on the internet and social media platforms like Instagram, Facebook, twitter, YouTube, Google + et al to promote our brand
• Install our billboards in strategic locations all around Beverly Hills – California
• Distribute our fliers and handbills in target areas
• Ensure that all our workers wear our branded shirts and all our vehicles are well branded with our company’s logo et al.

12. Our Pricing Strategy

Just like in services and consulting businesses, hourly billing for private security services is also a long – time tradition in the industry. However, for some types of contracts or clients, flat fees make more sense because they allow clients to better predict the overall service charges.

As a result of this, Triple Protect® Security Guard, Inc. will charge our clients both flat fee and hourly billing as long as it favors both parties. At Triple Protect® Security Guard, Inc. we will keep our fees below the average market rate for all of our clients.

In addition, we will also offer special discounted rates to startups, nonprofits, cooperatives, and small social enterprises. We are aware that there are some clients that would need regular security guard services or related security consulting services, we will offer flat rate for such services that will be tailored to take care of such clients’ needs.

• Payment Options

The payment policy adopted by Triple Protect® Security Guard, Inc. is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.

Here are the payment options that Triple Protect® Security Guard, Inc. will make available to her clients;

• Payment via bank transfer
• Payment with cash
• Payment via POS
• Payment via online bank transfer
• Payment via check
• Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our client make payment for services rendered without any stress on their part. Our bank account numbers will be made available on our website and promotional materials.

13. Startup Expenditure (Budget)

When it comes to starting any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting a place, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.

The resources and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked. As for the detailed cost analysis for starting a security guard services company; it might differ in other countries due to the value of their money.

These are the key areas where we will spend our startup capital;

• The total fee for incorporating the business in the United States of America – $750
• The budget for basic insurance policy covers, permits and business license – $2,500
• The amount needed to acquire a suitable office facility (Re – Construction of the facility inclusive) – $150,000
• The Cost for equipping the office (computers, software applications, printers, fax machines, furniture, telephones, filing cabins, security and safety gadgets and electronics et al) – $5,000
• The Cost of Launching an official Website – $600
• The cost for the purchase of 21 st century security gadgets, software and guard dogs et al – $100,000
• Budget for paying employees for 2 months plus utility bills – $100,000
• Additional Expenditure (Business cards, Signage, Adverts and Promotions et al) – $2,500
• Miscellaneous: $5,000

Going by the report from the market research and feasibility studies conducted, we will need about four hundred and fifty thousand ( 450,000 ) U.S. dollars to successfully set up a medium scale but standard private security company in the United States of America.

Generating Startup Capital for Triple Protect® Security Guard, Inc.

Triple Protect® Security Guard, Inc. is a private partnership business that will be owned by Nicholas Johnson and his friend Leonardo Michael. They are the sole financiers of the firm, but may likely welcome partners later which is why they decided to restrict the sourcing of startup capital for the business to just three major sources.

These are the areas we intend generating our startup capital;

• Generate part of the startup capital from personal savings
• Source for soft loans from family members and friends
• Apply for loan from the Bank

N.B: We have been able to generate about $150,000 ( Personal savings $100,000 and soft loan from family members $50,000 ) and we are at the final stages of obtaining a loan facility of $300,000 from our bank. All the papers and documents have been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.

14. Sustainability and Expansion Strategy

The survival and profitability of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and the business structure. One of our major goals of starting Triple Protect® Security Guard, Inc. is to build a business that will survive off its own cash flow without injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to offer our security guard services a little bit lower than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.

Triple Protect® Security Guard, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re training of our workforce is at the top burner.

We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List/Milestone

• Business Name Availability Check: Completed
• Business Incorporation: Completed
• Opening of Corporate Bank Accounts various banks in the United States: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of all forms of Insurance for the Business: Completed
• Securing a standard office facility and reconstruction inclusive: In Progress
• Conducting Feasibility Studies: Completed
• Generating part of the startup capital from the founder: Completed
• Applications for Loan from our Bankers: In Progress
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents: In Progress
• Design of The Company’s Logo: Completed
• Graphic Designs and Printing of Promotional Materials: Completed
• Recruitment of employees: In Progress
• Purchase of the needed security gadgets, patrol vans, security software application, guard dogs, uniforms, furniture, office equipment, electronic appliances and facility facelift: In progress
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business (Business PR): In Progress
• Health and Safety and Fire Safety Arrangement: In Progress
• Establishing business relationship with vendors and key players in the industry: In Progress

More on Security

This site uses cookies to deliver and enhance the quality of its services and to analyze traffic.

Security Company Business Plan Template

Document description.

This security company business plan template has 31 pages and is a MS Word file type listed under our business plan kit documents.

Sample of our security company business plan template:

Security Company Business Plan [YOUR NAME] [YOUR TITLE] Phone: [YOUR PHONE NUMBER] Email: [[email protected]] [YOUR WEBSITE ADDRESS] Confidentiality Agreement The undersigned reader acknowledges that the information provided by [YOUR COMPANY NAME] in this business plan is confidential; therefore, reader agrees not to disclose it without the express written permission of [YOUR COMPANY NAME]. It is acknowledged by reader that information to be furnished in this business plan is in all respects confidential in nature, other than information which is in the public domain through other means and that any disclosure or use of same by reader may cause serious harm or damage to [YOUR COMPANY NAME]. Upon request, this document is to be immediately returned to [YOUR COMPANY NAME].

Related documents

3,000+ templates & tools to help you start, run & grow your business, all the templates you need to plan, start, organize, manage, finance & grow your business, in one place., templates and tools to manage every aspect of your business., 8 business management modules, in 1 place., document types included.

We earn commissions if you shop through the links below.  Read more

Security Guard Business

Back to All Business Ideas

How to Start a Security Guard Business

Written by: Carolyn Young

Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.

Edited by: David Lepeska

David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.

Published on June 3, 2022 Updated on June 5, 2024

Investment range

$13,050 - $25,600

Revenue potential

$208,000 - $624,000 p.a.

Time to build

Profit potential

$42,000 - $125,000 p.a.

Industry trend

Strong security is absolutely crucial to the success of countless businesses and the safety of family homes. The US security services industry expanded more than 40% in the past decade and that growth is expected to continue, which means now is a great time to get in on the action with your own security guard business. 

You’d be protecting property — and potentially people’s lives — while making a good living. But before you start, there’s much to learn about starting a business. Luckily, this step-by-step guide has you covered with all the information you need to launch a successful security guard business.

Looking to register your business? A limited liability company (LLC) is the best legal structure for new businesses because it is fast and simple.

Form your business immediately using ZenBusiness LLC formation service or hire one of the Best LLC Services .

Step 1: Decide if the Business Is Right for You

Pros and cons.

Starting a security guard business has pros and cons to consider before deciding if it’s right for you.

• Provide Value – Security is essential to any community
• Good Money – Charge about $40 per hour per guard
• Growing Market – Demand for security services is growing
• Licensing Requirements – Pass background check, meet other requirements
• Dangerous – Danger inherently exists in the security business

Security guard industry trends

Industry size and growth.

• Industry size and past growth – The US security services industry is worth $49.9 billion in 2022 after expanding 42% in the last decade.(( https://www.ibisworld.com/industry-statistics/market-size/security-services-united-states/ )) 
• Growth forecast – The US security services industry is projected to grow by 3.6% in 2022. 
• Number of businesses – In 2022, 11,213 security services businesses are operating in the US.(( https://www.ibisworld.com/industry-statistics/number-of-businesses/security-services-united-states/ )) 
• Number of people employed – In 2022, the US security services industry employs 927,449 people.(( https://www.ibisworld.com/industry-statistics/employment/security-services-united-states ))

Trends and challenges

Trends in the security guard industry include:

• Advancing technology is allowing security guards to monitor premises more fully, without having to constantly check every room, corridor and corner. These include the ability to monitor spaces on their smart phones through the use of digital cameras, and drones that monitor spaces and send alerts to the guards.
• More security companies are providing pre-assessment services, meaning they check the premises for possible threats before implementing security.

Challenges in the security guard industry include:

• Labor shortages in the security industry have businesses turning to off-duty police officers to act as security guards.
• Security technologies may soon advance to the point that a physical security guard is no longer needed. 

Demand hotspots

• Most popular states – The most popular states for security guards are Hawaii, Minnesota, and Washington.(( https://www.zippia.com/security-guard-jobs/best-states/#louisiana )) 
• Least popular states – The least popular states for security guards are West Virginia, Louisiana, and Arkansas. 

What kind of people work in security guard businesses?

• Gender – 28% of security guards are female, while 72% are male.(( https://www.zippia.com/security-guard-jobs/demographics/ ))
• Average level of education – The average security guard is high school educated.
• Average age -The average security guard in the US is 44 years old.

How much does it cost to start a security guard business?

Startup costs for a security guard business range from $13,000 to $25,000. Costs include a website, uniforms and firearms if necessary, and a labor and operating budget. The higher-end also includes office space, as some states require security guard companies to have offices. 

If you need security guard training or firearms training, you should be able to find a training school near you. Licensing is required for security guard companies per each state’s private security services act and each state has its own education and experience requirements. Check with your state to see what is needed. 

You’ll need a handful of items to successfully launch your security guard business, including: 

• Firearms if you’re going to have armed guards

How much can you earn from a security guard business?

The average rate for a security guard company is $40 per hour per guard. You’ll pay your employees about $15 to $20 per hour, and you’ll also have the costs of rent, overhead, and insurance, so your profit margin should be about 20%. 

In your first year or two, you might get 100 guard hours of work per week, bringing in $208,000 in annual revenue. This would mean $42,000 in profit, assuming that 20% margin. As your business gains traction you might triple those numbers. With annual revenue of $624,000, you’d make an outstanding profit of $125,000.

What barriers to entry are there?

There are a few barriers to entry for a security guard business. Your biggest challenges will be:

• The startup costs of the business, particularly the labor and operating budget
• Meeting the strict security guard licensing requirements of your state

Related Business Ideas

How to Start a Cybersecurity Business

How to Start a Private Investigation Business

How to Start an Insurance Agency

Step 2: hone your idea.

Now that you know what’s involved in starting a security guard business, it’s a good idea to hone your concept in preparation to enter a competitive market. 

Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape.

Why? Identify an opportunity

Research security guard businesses in your area and online to examine their services, price points, and customer reviews. You’re looking for a market gap to fill. For instance, maybe the local market is missing a security agency that offers personal security guard services, aka bodyguards, or armed security guards. 

You might consider targeting a niche market by specializing in a certain aspect of your industry, such as public protection security services or private patrol officers for office buildings.

This could jumpstart your word-of-mouth marketing and attract clients right away. 

What? Determine your services

You can decide whether you want to have armed or unarmed security services, and if you want to specialize in business security or personal security. Many security guard businesses also have private investigators to offer additional services.

Instead of charging hourly, you might instead want to enter into security contracts with your clients and have them pay a set monthly fee. 

How much should you charge for security guard services?

The average rate charged by security guard companies is $40 per hour. Your profit margin after labor, rent, and overhead should be about 20%. 

Once you know your costs, you can use this Step By Step profit margin calculator to determine your mark-up and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.

Who? Identify your target market

Your target market will most likely be businesses. You can connect with business owners on LinkedIn or find them on Google or Yelp and call them directly. 

Where? Choose your business premises

In the early stages, you may want to run your business from home to keep costs low. But as your business grows, you’ll likely need to hire workers for various roles and may need to rent out an office, or you may be required by your state to have one. You can find commercial space to rent in your area on sites such as Craigslist , Crexi , and Instant Offices .

When choosing a commercial space, you may want to follow these rules of thumb:

• Central location accessible via public transport
• Ventilated and spacious, with good natural light
• Flexible lease that can be extended as your business grows
• Ready-to-use space with no major renovations or repairs needed

Step 3: Brainstorm a Security Company Name

Here are some ideas for brainstorming your business name:

• Short, unique, and catchy names tend to stand out
• Names that are easy to say and spell tend to do better 
• Name should be relevant to your product or service offerings
• Ask around — family, friends, colleagues, social media — for suggestions
• Including keywords, such as “security guards” or “security services”, boosts SEO
• Name should allow for expansion, for ex: “Guardian Shield Security” over “Campus Security Services” or “School Safety Patrol”
• A location-based name can help establish a strong connection with your local community and help with the SEO but might hinder future expansion

Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these. 

Find a Domain

Powered by GoDaddy.com

Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that sets your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.

Step 4: Create a Security Company Business Plan

Here are the key components of a business plan:

• Executive Summary: Highlight the scope and objectives of your security company, emphasizing the protection services offered to clients and the strategic approach to market penetration.
• Business Overview: Describe the security services your company will provide, including residential, commercial, and event security solutions.
• Product and Services: List the specific services such as armed and unarmed guards, surveillance systems installation, and security audits.
• Market Analysis: Examine the demand for security services in your target area and the sectors you aim to serve, like businesses or gated communities.
• Competitive Analysis: Identify and assess the strengths and weaknesses of other security firms in the area to position your company competitively.
• Sales and Marketing: Detail your plan for attracting clients, which could involve direct marketing, partnerships with businesses, and online campaigns.
• Management Team: Present the expertise and background of your management team, especially their experience in law enforcement or military service.
• Operations Plan: Outline how your security services will be delivered, staffed, and managed on a day-to-day basis.
• Financial Plan: Provide a financial strategy, including pricing, cost management, funding, and revenue projections.
• Appendix: Include supplementary documents like licenses, insurance policies, and contracts that underpin the legitimacy and preparedness of your security company.

If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.

Step 5: Register Your Business

Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business! 

Choose where to register your company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you’re planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to security guard businesses. 

If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state. 

Choose your business structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your security guard business will shape your taxes, personal liability, and business registration requirements, so choose wisely. 

Here are the main options:

• Sole Proprietorship – The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
• General Partnership – Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
• Limited Liability Company (LLC) – Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
• C Corp – Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
• S Corp – An S-Corporation refers to the tax classification of the business but is not a business entity. An S-Corp can be either a corporation or an LLC , which just need to elect to be an S-Corp for tax status. In an S-Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization , and answer any questions you might have. 

Form Your LLC

Choose Your State

We recommend ZenBusiness as the Best LLC Service for 2024

Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number , or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN. 

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

The IRS website also offers a tax-payers checklist , and taxes can be filed online.

It is important to consult an accountant or other professional to help you with your taxes to ensure you’re completing them correctly.

Step 7: Fund your Business

Securing financing is your next step and there are plenty of ways to raise capital:

• Bank loans: This is the most common method but getting approved requires a rock-solid business plan and strong credit history.
• SBA-guaranteed loans: The Small Business Administration can act as guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan .
• Government grants: A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
• Friends and Family: Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
• Crowdfunding: Websites like Kickstarter and Indiegogo offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
• Personal: Self-fund your business via your savings or the sale of property or other assets.

Bank and SBA loans are probably the best option, other than friends and family, for funding a security guard business. 

Step 8: Apply for Security Guard Business Licenses and Permits

Starting a security guard business requires obtaining a number of licenses and permits from local, state, and federal governments.

Each state has their own private security services act that sets out the licensing rules for both security guards and security guard businesses. Check with your state for requirements. 

Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration ( OSHA ), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits. 

You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more. 

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package . They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money, you’ll need a place to keep it, and that requires opening a bank account .

Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your security guard business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account. 

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

• General liability: The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
• Business Property: Provides coverage for your equipment and supplies.
• Equipment Breakdown Insurance: Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
• Worker’s compensation: Provides compensation to employees injured on the job.
• Property: Covers your physical space, whether it is a cart, storefront, or office.
• Commercial auto: Protection for your company-owned vehicle.
• Professional liability: Protects against claims from a client who says they suffered a loss due to an error or omission in your work.
• Business owner’s policy (BOP): This is an insurance plan that acts as an all-in-one insurance policy, a combination of the above insurance types.

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business. 

Essential software and tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks. 

You may want to use industry-specific software, such as Guards Pro , GuardMetrics , or Officer Reports , to manage your reporting, schedule, timesheets, and billing. 

• Popular web-based accounting programs for smaller businesses include Quickbooks , Freshbooks , and Xero . 
• If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences for filing incorrect tax documents can be harsh, so accuracy is crucial.

Develop your website

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.

You can create your own website using services like WordPress, Wix, or Squarespace . This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.

They are unlikely to find your website, however, unless you follow Search Engine Optimization ( SEO ) practices. These are steps that help pages rank higher in the results of top search engines like Google. 

Here are some powerful marketing strategies for your future business:

• Localized Social Media Campaigns: Leverage social media platforms to target specific localities, engaging with community groups and sharing content that highlights the importance of security in the neighborhood.
• Community Sponsorships and Partnerships: Invest in local events, sponsor community gatherings, or partner with neighborhood associations to build trust and visibility, showcasing your commitment to the safety of the community.
• Referral Programs: Implement a referral program that incentivizes existing clients, employees, and even community members to refer potential clients, creating a word-of-mouth network that fosters trust.
• Specialized Training Workshops: Host workshops on safety and security for local businesses or schools, positioning your company as an expert in the field while creating opportunities for direct interactions with potential clients.
• Targeted Direct Mail Campaigns: Develop targeted direct mail campaigns, sending informative brochures or postcards to businesses and residences in specific areas, emphasizing the unique value your security services bring to their safety.
• Online Reviews and Testimonials: Encourage satisfied clients to leave positive reviews on online platforms. Showcase these testimonials on your website and in marketing materials to build credibility and establish a track record of success.
• 24/7 Availability Promotion: Emphasize your company’s round-the-clock availability in marketing materials, underlining the commitment to providing security solutions at any time, which can be a critical differentiator in emergencies.
• Content Marketing with Safety Tips: Develop a blog or video series on safety tips for businesses and individuals, positioning your brand as an authority in security matters and creating shareable content that extends your reach.
• Mobile Marketing: Utilize mobile advertising to target specific geographic areas, ensuring your business appears on the screens of potential clients in proximity, reinforcing the idea of local security support.
• Attend Industry-Specific Trade Shows: Participate in trade shows or conferences related to security and safety, providing an opportunity to network with other businesses and showcase your services to a targeted audience already interested in security solutions.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that sets it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your security guard business  meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire. 

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your security guard business could be: 

• Reliable 24-hour security to protect your business and property
• Armed security guards to protect your home and family
• Person security services for high profile people

You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a security guard business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in security guard businesses for years and can offer invaluable insight and industry connections. 

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in security guards. You’ll probably generate new customers or find companies with which you could establish a partnership. 

Step 12: Build Your Team

If you’re starting out small from a home office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for a security guard business include:

• Security Guards – provide security services
• General Manager – scheduling, accounting
• Marketing Lead – SEO strategies, social media

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need. 

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed , Glassdoor , or ZipRecruiter . Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent. 

Step 13: Run a Security Company – Start Making Money!

Our need for security may be unfortunate, but it’s a fact of modern life — and a legitimate business opportunity. The industry is seeing steady growth, so if you have a passion for protection, you could start a security guard business and make a good living while providing an essential service.

You’ve learned what you need to know about the business now, so it’s time to get out there and start protecting people and businesses — and securing your future. 

• Security Guard Business FAQs

Security guard services can be very profitable. The key is to provide reliable security services and great customer service, and you can be successful.

Networking and building relationships with local businesses, property management companies, event organizers, and government agencies can lead to referrals and contracts. Utilize online platforms and social media to showcase your services, expertise, and client testimonials.

Security guards are needed in various industries and locations. Some common areas where security guards are in high demand include:

• Commercial properties: Office buildings, shopping centers, and retail stores.
• Residential properties: Gated communities, apartment complexes, and condominiums.
• Industrial facilities: Manufacturing plants, warehouses, and distribution centers.
• Healthcare facilities: Hospitals, clinics, and medical centers.
• Educational institutions: Schools, colleges, and universities.
• Event venues: Concert halls, sports arenas, and convention centers.
• Government buildings: Courthouses, embassies, and public offices.
• Transportation hubs: Airports, train stations, and ports.

Advertise job openings on relevant job boards, industry-specific websites, and social media platforms. Screen applicants carefully by conducting thorough background checks, verifying licenses, and checking references. Develop a robust training program that covers essential security procedures, emergency response protocols, customer service skills, and legal aspects of the job.

To differentiate your security guard business from competitors, focus on providing exceptional service and customization. Emphasize a customer-centric approach by understanding and meeting the unique security needs of each client. Offer specialized security solutions for specific industries or niche markets, such as retail loss prevention or healthcare security.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Save my name, email, and website in this browser for the next time I comment.

• Decide if the Business Is Right for You
• Hone Your Idea
• Brainstorm a Security Company Name
• Create a Security Company Business Plan
• Register Your Business
• Register for Taxes
• Fund your Business
• Apply for Security Guard Business Licenses and Permits
• Open a Business Bank Account
• Get Business Insurance
• Prepare to Launch
• Build Your Team
• Run a Security Company - Start Making Money!

Subscribe to Our Newsletter

Featured resources.

57 Best Service Business Ideas

David Lepeska

Published on December 1, 2022

The services sector is undoubtedly the biggest economic sector in the US as it accounts for nearly 70% of the country’s gross domestic product. It ...

10 Best Security Business Ideas

Published on November 4, 2022

The security services industry in the US is estimated to be worth $50 billion and expected to grow steadily in the next five years. Demand forsecuri ...

14 Small Business Ideas For Veterans

Published on July 21, 2022

Military veterans have discipline, perform well under pressure, and are willing to make sacrifices, so it should come as no surprise that they often ...

No thanks, I don't want to stay up to date on industry trends and news.

How to Start a Security Guard Company

This is a needed business because companies and individuals often don’t have the resources to perform their own security detail. Security guard services usually charge hourly fees for the services being provided. The prices charged will increase based on the number of security guards provided for the clients.

Learn how to start your own Security Guard Company and whether it is the right fit for you.

Ready to form your LLC? Check out the Top LLC Formation Services .

Start a security guard company by following these 10 steps:

• Plan your Security Guard Company
• Form your Security Guard Company into a Legal Entity
• Register your Security Guard Company for Taxes
• Open a Business Bank Account & Credit Card
• Set up Accounting for your Security Guard Company
• Get the Necessary Permits & Licenses for your Security Guard Company
• Get Security Guard Company Insurance
• Define your Security Guard Company Brand
• Create your Security Guard Company Website
• Set up your Business Phone System

We have put together this simple guide to starting your security guard company. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Exploring your options? Check out other small business ideas .

STEP 1: Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

What will you name your business?

• What are the startup and ongoing costs?
• Who is your target market?

How much can you charge customers?

Luckily we have done a lot of this research for you.

Choosing the right name is important and challenging. If you don’t already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our Security Guard Company Name Generator

If you operate a sole proprietorship , you might want to operate under a business name other than your own name. Visit our DBA guide to learn more.

When registering a business name , we recommend researching your business name by checking:

• Your state's business records
• Federal and state trademark records
• Social media platforms
• Web domain availability .

It's very important to secure your domain name before someone else does.

Want some help naming your security guard company?

Business name generator, what are the costs involved in opening a security guard company.

Costs for starting a security guard business are minimal. The largest cost is insurance, which can be up to $3,000 for a 6-month term. Legal and regulatory costs will run about $500. The cost for basic equipment and uniforms varies. If guards have their own firearms or force equipment, then the cost will be minimal. If not, they can range from just a couple hundred dollars for a used handgun to several thousand dollars.

Uniforms will run about $100 per guard or officer.

Some local and state laws require security companies to maintain an office. Minimize these costs by using shared-space small offices. A shared office will cost several hundred dollars per month, depending on where you live. Dedicated offices can run several thousand per month.

This is a business where having a large office isn’t important. Only get as much office space as you absolutely need.

Marketing materials for the new business will likely run $1,000 to $2,000.

Websites are another cost you should consider. They will run you between $300 and $500 for a basic website. Hosting should cost no more than $100 per year. In many cases, you can find hosting for much less.

What are the ongoing expenses for a security guard company?

Normal ongoing expenses for this business are minimal. Mostly, you’re paying for insurance, an office, a security team’s salary (and related expenses).

Who is the target market?

Security companies typically work with wealthier clients who have valuable property to protect. These clients are usually businesses that guard valuable information, tangible items, or individuals within their premises.

On rare occasions, a company might be hired to protect an individual, like a local or national celebrity, a political figure, or CEO of a large company.

How does a security guard company make money?

Most security companies charge clients an hourly rate or flat fee for services. Larger security guard companies have corporate or commercial clients. The ideal client is one who signs a multi-year service contract. However, when you’re just starting out, these types of clients are hard to get.

Security guard companies tend to have a range of prices, depending on the services they’re offering. For unarmed security, you can charge between $10 and $25 per hour. For armed security, you can charge from $35, up to even $100, if it’s a special or high-risk event.

However, this is not the only way to charge clients. Security contracts, including both short and long-term contracts, can fetch a much higher total fee for services. Some companies will charge “by the job,” in which case the company is charging a contract fee. These fees can amount to several thousand dollars per contract.

In some cases, a client pays monthly, semi-annually, or annually for services and renews the contract for many years. This is an ideal scenario, and produces stable long-term income for the business.

Per-contract fees are usually reserved for established clients, however.

Another factor affecting what you can charge clients is the number of security personnel on-site for a job. Most companies charge more if there are more guards on-site.

How much profit can a security guard company make?

Security companies can generate approximately $40,000-$60,000 per security guard, per year. If you hire a team of 5 security guards at startup, then you may be able to clear $300,000 in revenue. Net profits vary based on your insurance costs, labor costs, and regulatory costs in your state.

How can you make your business more profitable?

Most security businesses could benefit from specialization and charging higher prices. Closing higher-paying clients will also bring in more money.

For example, instead of offering generic security services to a local business, try specializing in bodyguard services, mall services, or catered event services for politicians. If your company becomes known for providing security for high-profile clients, you’ll have very little competition.

Also, a security guard typically has all the skills necessary to provide bodyguard services as well. However, the term “bodyguard” typically connotes a larger, muscular person who is capable of intimidating potential threats to the client’s person. If you feel as though you can provide these services--which typically involve protection of individual people--this is an effective way to increase clientele.

Want a more guided approach? Access TRUiC's free Small Business Startup Guide - a step-by-step course for turning your business idea into reality. Get started today!

STEP 2: Form a legal entity

The most common business structure types are the sole proprietorship , partnership , limited liability company (LLC) , and corporation .

Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your security guard company is sued.

Form Your LLC

Read our Guide to Form Your Own LLC

Have a Professional Service Form your LLC for You

Two such reliable services:

You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.

Recommended: You will need to elect a registered agent for your LLC. LLC formation packages usually include a free year of registered agent services . You can choose to hire a registered agent or act as your own.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It's really easy and free!

You can acquire your EIN through the IRS website . If you would like to learn more about EINs, read our article, What is an EIN?

There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil .

Open a business bank account

Besides being a requirement when applying for business loans, opening a business bank account:

• Separates your personal assets from your company's assets, which is necessary for personal asset protection.
• Makes accounting and tax filing easier.

Recommended: Read our Best Banks for Small Business review to find the best national bank or credit union.

Get a business credit card

Getting a business credit card helps you:

• Separate personal and business expenses by putting your business' expenses all in one place.
• Build your company's credit history , which can be useful to raise money later on.

Recommended: Apply for an easy approval business credit card from BILL and build your business credit quickly.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

Make LLC accounting easy with our LLC Expenses Cheat Sheet.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

State & Local Business Licensing Requirements

In most states, it is necessary to obtain a license to work as a security guard. Certain other state permits and licenses may be needed to operate a security guard business. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits.

Most businesses are required to collect sales tax on the goods or services they provide. To learn more about how sales tax will affect your business, read our article, Sales Tax for Small Businesses .

Service Contract

Security guard businesses should require clients to sign a service agreement before starting a new project. This agreement should clarify client expectations and minimize risk of legal disputes by setting out payment terms and conditions, and service level expectations.

Recommended: Rocket Lawyer makes it easy to create a professional service agreement for your security guard business when you sign up for their premium membership. For $39.95 per month, members receive access to hundreds of legal agreements and on call attorneys to get complimentary legal advice.

Certificate of Occupancy

A security guard business typically features an office from which clerical operations are carried out. Businesses operating out of a physical location typically require a Certificate of Occupancy (CO). A CO confirms that all building codes, zoning laws and government regulations have been met.

• If you plan to lease a location:
• It is generally the landlord’s responsibility to obtain a CO.
• Before leasing, confirm that your landlord has or can obtain a valid CO that is applicable to a security guard business.
• After a major renovation, a new CO often needs to be issued. If your place of business will be renovated before opening, it is recommended to include language in your lease agreement stating that lease payments will not commence until a valid CO is issued.
• If you plan to purchase or build a location:
• You will be responsible for obtaining a valid CO from a local government authority.
• Review all building codes and zoning requirements for your business’ location to ensure your security guard business will be in compliance and able to obtain a CO.

Miscellaneous Considerations

Here is a list of relevant considerations when starting a security guard service from Cornell University Law School’s website.

STEP 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance . This is the most common coverage that small businesses need, so it’s a great place to start for your business.

Another notable insurance policy that many businesses need is Workers’ Compensation Insurance . If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.

FInd out what types of insurance your Security Guard Company needs and how much it will cost you by reading our guide Business Insurance for Security Guard Company.

STEP 8: Define your brand

Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.

If you aren't feeling confident about designing your small business logo, then check out our Design Guides for Beginners , we'll give you helpful tips and advice for creating the best unique logo for your business.

Recommended : Get a logo using Truic's free logo Generator no email or sign up required, or use a Premium Logo Maker .

If you already have a logo, you can also add it to a QR code with our Free QR Code Generator . Choose from 13 QR code types to create a code for your business cards and publications, or to help spread awareness for your new website.

How to promote & market a security guard company

Many security companies rely on direct mail, social media, and referrals for business. Contact your local mailing list broker and ask about lists of businesses that have hired security companies in the past. Mail these companies with your offer. You can also try sending out fliers and handing out business cards to local companies.

How to keep customers coming back

Specialization is a great way to stand out from the crowd. How many companies do special events in your area? If you’re the only one, then you’ll get all the business in that niche.

STEP 9: Create your business website

After defining your brand and creating your logo the next step is to create a website for your business .

While creating a website is an essential step, some may fear that it’s out of their reach because they don’t have any website-building experience. While this may have been a reasonable fear back in 2015, web technology has seen huge advancements in the past few years that makes the lives of small business owners much simpler.

Here are the main reasons why you shouldn’t delay building your website:

• All legitimate businesses have websites - full stop. The size or industry of your business does not matter when it comes to getting your business online.
• Social media accounts like Facebook pages or LinkedIn business profiles are not a replacement for a business website that you own.
• Website builder tools like the GoDaddy Website Builder have made creating a basic website extremely simple. You don’t need to hire a web developer or designer to create a website that you can be proud of.

Recommended : Get started today using our recommended website builder or check out our review of the Best Website Builders .

Other popular website builders are: WordPress , WIX , Weebly , Squarespace , and Shopify .

STEP 10: Set up your business phone system

Getting a phone set up for your business is one of the best ways to help keep your personal life and business life separate and private. That’s not the only benefit; it also helps you make your business more automated, gives your business legitimacy, and makes it easier for potential customers to find and contact you.

There are many services available to entrepreneurs who want to set up a business phone system. We’ve reviewed the top companies and rated them based on price, features, and ease of use. Check out our review of the Best Business Phone Systems 2023 to find the best phone service for your small business.

Recommended Business Phone Service: Phone.com

Phone.com is our top choice for small business phone numbers because of all the features it offers for small businesses and it's fair pricing.

Is this Business Right For You?

This business is suitable for individuals who are passionate about personal security and want to help others feel more secure in their homes and businesses. It may require working long hours or unusual schedules, like nights and weekends. Because of this, the business may not be suitable for individuals with family commitments or other obligations that fall outside of traditional 9-5 work days.

Want to know if you are cut out to be an entrepreneur?

Take our Entrepreneurship Quiz to find out!

Entrepreneurship Quiz

What happens during a typical day at a security guard company?

Day-to-day activities of a security company include preparing security-related documents like incident reports and proposals, strategic or tactical initiatives and reviewing these documents. Management also needs to provide ongoing training and education for subordinates, plan security detail for special and high-risk events, and review financial reports to make sure security operations are never in jeopardy.

A security company’s management also needs to maintain its budget for security operations, order security-related supplies and equipment, coordinate operations and activities with law enforcement (and other agencies), and attend meetings and professional seminars. In rare circumstances, you may also have to coordinate and provide support during emergencies.

What are some skills and experiences that will help you build a successful security guard company?

Security guards typically have some form of formal training from combat fields such as policing, military service, etc. In addition to this, security professionals should a have a private patrol operator’s license and extensive knowledge of law enforcement techniques.

What is the growth potential for a security guard company?

These businesses can be run at a small or large scale. A small security business can be run by just a handful of individuals. When operating a small company, the biggest concern is usually cost control and recouping the startup costs, like insurance, office space, and equipment.

All other things being equal, it’s easier to recoup these costs with a minimum staff of 5 people than with 3. The more guards you can hire, the better.

Large operations are more expensive to run, but also tend to have more stable income and more lucrative service contracts because they are more likely to land large multi-year corporate contracts.

TRUiC's YouTube Channel

For fun informative videos about starting a business visit the TRUiC YouTube Channel or subscribe to view later.

Take the Next Step

Find a business mentor.

One of the greatest resources an entrepreneur can have is quality mentorship. As you start planning your business, connect with a free business resource near you to get the help you need.

Having a support network in place to turn to during tough times is a major factor of success for new business owners.

Learn from other business owners

Want to learn more about starting a business from entrepreneurs themselves? Visit Startup Savant’s startup founder series to gain entrepreneurial insights, lessons, and advice from founders themselves.

Resources to Help Women in Business

There are many resources out there specifically for women entrepreneurs. We’ve gathered necessary and useful information to help you succeed both professionally and personally:

If you’re a woman looking for some guidance in entrepreneurship, check out this great new series Women in Business created by the women of our partner Startup Savant.

What are some insider tips for jump starting a security guard company?

Partnering with local HOAs, landlords, and local businesses could help you secure your initial security contracts. Try to keep costs associated with office space to a minimum. In most cases, you won’t need a large office when you’re just starting out.

How and when to build a team

In most cases, it makes sense to take on a team of 3 to 5 security professionals when you’re first starting out. Not only does this help you recover the initial startup costs, it helps build your revenue stream faster, since you can take on more work. As your company grows and becomes more well-known, you can hire additional security guards as finances allow.

Useful Links

Industry opportunities.

• National Association of Security Companies
• National Council of Investigation and Security Services

Real World Examples

• American Guard Services

Further Reading

• PoliceOne Services

Have a Question? Leave a Comment!

Security Business Plans

Security guard business plan.

Batten-Hatchez Security will remove worries for clients who require security guards for their buildings, facilities, and events by providing excellent customer service for clients and in-depth training for their employees.

Video Documentation Service Business Plan

Safe Keeping is a start-up business offering video documentation of home or business belongings for customer's insurance purposes.

Online and physical security is a necessary measure for businesses to keep their employees, clients, and data secure. Whether you’re providing trained security staffing or the technology to upgrade security measures, you’ll need a business plan to do it. Check out our library of security-based sample plans to ensure your business plan is as well established as the security measures you provide.

The quickest way to turn a business idea into a business plan

Fill-in-the-blanks and automatic financials make it easy.

No thanks, I prefer writing 40-page documents.

Discover the world’s #1 plan building software

Security Consulting Business Plan Template & Guidebook

How to write a security consulting business plan in 7 steps:, 1. describe the purpose of your security consulting business..

It also helps to include a vision statement so that readers can understand what type of company you want to build.

2. Products & Services Offered by Your Security Consulting Business.

When you think about the products and services that you offer, it's helpful to ask yourself the following questions:

3. Build a Creative Marketing Stratgey.

If you don't have a marketing plan for your security consulting business, it's time to write one. Your marketing plan should be part of your business plan and be a roadmap to your goals. 

Target market

Customer base , product or service description, competitive analysis, marketing channels, form an llc in your state, 4. write your operational plan., what equipment, supplies, or permits are needed to run a security consulting business.

In addition to these items, it is also important for the business to have knowledgeable and experienced employees who are trained in security analysis and assessment techniques.

5. Management & Organization of Your Security Consulting Business.

6. security consulting business startup expenses & captial needed..

This section should be broken down by month and year. If you are still in the planning stage of your business, it may be helpful to estimate how much money will be needed each month until you reach profitability.

Running costs refer to ongoing expenses related directly with operating your business over time like electricity bills or salaries paid out each month. These types of expenses will vary greatly depending on multiple variables such as location, team size, utility costs, etc.

7. Financial Plan & Projections

A financial plan is an important part of any business plan, as it outlines how the business will generate revenue and profit, and how it will use that profit to grow and sustain itself. To devise a financial plan for your security consulting business, you will need to consider a number of factors, including your start-up costs, operating costs, projected revenue, and expenses. 

Frequently Asked Questions About Security Consulting Business Plans:

Why do you need a business plan for a security consulting business.

A business plan is a document that outlines the goals and objectives of a business, as well as the strategies and tactics that will be used to achieve those goals. It is important to have a business plan for your security consulting business because it helps to focus the efforts of the company, communicate the business's goals and objectives to potential investors, and provide a roadmap for the business to follow. Additionally, a business plan can be used to help secure funding from investors or lenders, who will want to see that the business has a solid plan in place before they provide funding.

How to write a business plan for your security consulting business?)

Can you write a security consulting business plan yourself.

Yes, you can write a security consulting business plan yourself. Writing a business plan is a valuable exercise that can help you clarify your business idea, identify potential challenges and opportunities, and develop a roadmap for success. While there are many resources and templates available to help you write a business plan, the process of creating one is ultimately up to you.

Related Business Plans

Home inventory business plan template & guidebook, home inspection business plan template & guidebook, home decor business plan template & guidebook, health and wellness business plan template & guidebook, hauling business plan template & guidebook, hardware business plan template & guidebook, handyman business plan template & guidebook, hair extension business plan template & guidebook, handbag business plan template & guidebook.

I'm Nick, co-founder of newfoundr.com, dedicated to helping aspiring entrepreneurs succeed. As a small business owner with over five years of experience, I have garnered valuable knowledge and insights across a diverse range of industries. My passion for entrepreneurship drives me to share my expertise with aspiring entrepreneurs, empowering them to turn their business dreams into reality.

Need a business plan? Call now:

Talk to our experts:

• Business Plan for Investors
• Bank/SBA Business Plan
• Operational/Strategic Planning
• L1 Visa Business Plan
• E1 Treaty Trader Visa Business Plan
• E2 Treaty Investor Visa Business Plan
• EB1 Business Plan
• EB2 Visa Business Plan
• EB5 Business Plan
• Innovator Founder Visa Business Plan
• UK Start-Up Visa Business Plan
• UK Expansion Worker Visa Business Plan
• Manitoba MPNP Visa Business Plan
• Start-Up Visa Business Plan
• Nova Scotia NSNP Visa Business Plan
• British Columbia BC PNP Visa Business Plan
• Self-Employed Visa Business Plan
• OINP Entrepreneur Stream Business Plan
• LMIA Owner Operator Business Plan
• ICT Work Permit Business Plan
• LMIA Mobility Program – C11 Entrepreneur Business Plan
• USMCA (ex-NAFTA) Business Plan
• Franchise Business Planning 
• Landlord Business Plan 
• Nonprofit Start-Up Business Plan 
• USDA Business Plan
• Cannabis business plan 
• eCommerce business plan
• Online Boutique Business Plan
• Mobile Application Business Plan
• Daycare business plan
• Restaurant business plan
• Food Delivery Business Plan
• Real Estate Business Plan
• Business Continuity Plan
• Buy Side Due Diligence Services
• ICO whitepaper
• ICO consulting services
• Confidential Information Memorandum
• Private Placement Memorandum
• Feasibility study
• Fractional CFO
• How it works
• Business Plan Examples

Private Security Company Business Plan Template

Published Mar.20, 2017

Updated Apr.23, 2024

By: Jakub Babkins

Average rating 3.5 / 5. Vote count: 12

No votes so far! Be the first to rate this post.

Table of Content

Do you want to start a Private Security business plan?

Security is one of the biggest concerns in the world right now. It has always been important to keep not only valuable items but also information secure and out of the wrong hands. Therefore, there is a significant need for investment in the business plan related to private security firms. 

Developing a business plan for a security company involves much more than coming up with a cool slogan. Much like a window cleaning business plan , you will need to learn how to write a business plan for a security company. 

Here, we are presenting the business plan for Diamond Phase, a private security firm. You can use this business plan to develop a plan for your own business. So, whatever the scale of your business, this template can act as a great help to design a successful business model.

Executive Summary

2.1 about the business .

Diamond Phase will be a security firm started by Jacque Hail. The firm will provide help with business planning process for security systems in different residential and commercial sectors. The company will offer a wide range of services, from securing full-fledged security systems for whole buildings to offering small-scale security services for a particular office or space. 

2.2 Management of Private Security Firm

Business plans for security companies need to be very thorough as they provide a very important service. The business needs to be well-managed to ensure proper functioning after the launch. This can be achieved through a security company business plan template like the one given here. 

You can also refer to professional business plan services to get an operational plan developed. If you possess some experience and you want to develop your plan on your own, you may take guidance from this security guard company business plan. 

2.3 Customers of Private Security Firm

The customers of Diamond Phase will belong to different scales of operations. As such, our customers for a basic business plan security are as follows:

• Residential Community
• Small/ Large Businesses
• Jewelry Stores
• Highly Sensitive Areas

2.4 Business Target

The target of Diamond Phase is to establish itself as a major player in the private security business in Portland. We want to be known as the most efficient security solution in Portland within two years of the launch. 

Furthermore, the financial targets we want to achieve within five years of operation are as follows:

Company Summary

3.1 company owner.

The owner of the company will be Jacque Hail. Jacque worked as a security manager in a top security firm for two years. Before this, he attained his education in computer forensics and networks. He realized that he could utilize his experience and education to start a new security firm of its kind. And thus, Diamond Phase was ideated. 

3.2 History of Diamond Phase

While working as a security manager, Jacque saw that a lot of his clients required not only physical security measures but also computer network safety. Considering the rapid increase in the penetration of technology in every sector of the market, Jacque decided to present a business model that improved upon existing physical and computer security businesses. 

3.3 How the Private Security company will be started

Step1: Ideate the Business

The first part of any security business plan sample is the description of the company that you are trying to start. Nothing happens without an idea. Therefore, Jacques decided to build on his dream and create a concrete idea for his business plan of a security company.  

Step2: Research and Analysis

The next step to starting a business is to look into your market. This will help you filter out your major competitors and entry points in the market which can help you get ahead in the competition. As part of this security company business plan pdf, Jacque did comprehensive research about the security industry to identify his competitors. 

Step3: Register the Business  

Once Jacque knew that his business idea was viable, he looked into as many security company business plan examples as he could to learn the process of registration. He not only registered the company name to the state but also registered the space for a main office in the Portland commercial center.

Step4: Go Online

One of the best ways to advertise a business is through online ads and social media. Therefore, Jacque decided to hire a sales team with a social media sub-team to help with advertisement and the online existence of the company. 

Step5: Know Your Finances

Another important part of any business plan, even a plumbing company business plan, is the financial planning of its operations. To manage this, Diamond Phase will have a financial plan developed by a business consultancy firm.

Services 

The services of a business are its basis and the reason it exists. Before you start writing business plan for a security service company, you need to be very clear about the types of services you will be offering. This will not only help you to properly write a business plan for a private security company but also guide you throughout the operational years of your business. 

To write a private security business plan for his company, Jacques decided to lean back on his market research. It is because he knew that each sample business plan for security services decides its services according to market needs. From this research, he decided upon a list of services to include in this template to learn how to start a security company pdf. 

The general services for a private security firm are listed below. Some of these are identical to those mentioned in the locksmith business plan .

• Security Guards

The biggest service offered by Diamond Phase will be to provide teams of security guards for the maintenance of a manual security system in a commercial or residential area. The number and requirements of these guards will be agreed upon by the company and its clients. The guards will be hired and trained by the company and will work on a contract basis for our customers. 

• Automated Setups

Many places don’t require huge teams dedicated to security. For instance, security concerns in residential areas and homes can be handled by automated systems with just one physical team on site. To promote the efficient use of resources, Diamond Phase will provide state-of-the-art automated security systems to its customers. 

Not only will the company provide trained security personnel, but it will also provide training for the guards hired by our customers. The customers can hire us to provide regular sessions for proper training of their staff in electronic as well as manual security niche. 

• Network Security

As part of its hybrid business model, Diamond Phase will offer not only physical and automated security but also network security and maintenance personnel if needed by its data-sensitive clients.

Marketing Analysis of Private Security Company

Excellent work.

excellent work, competent advice. Alex is very friendly, great communication. 100% I recommend CGS capital. Thank you so much for your hard work!

A security guard business proposal needs to contain everything from the preliminary idea of the business to the basic viability guarantees of the business. To establish a security business star up , you will need a comprehensive security systems business plan that contains all the details to make the business viable for existence. 

For his business plan for a security company , Jacque used his market research to build a strong case for starting Diamond Phase. If you want to learn how to start a private security company from scratch, you can follow this business plan for a security company pdf. You can also learn the basic idea from other plans, such as a dog training business plan .

Here, we will present the marketing analysis and details for Diamond Phase, through which you can learn how to open up a security company that can succeed. 

5.1 Market Trends

According to Statista, the private security industry in the US already has a market share of $32 billion, which is a $1 billion increase from 2019. The market is consistently growing with an increase in valuable projects, businesses, and residential areas. Therefore, this is the prime time to learn how to start a security agency as it will help the new business become a part of the growth spurt. 

5.2 Marketing Segmentation

The customers targeted by Diamond Phase are as follows:

Business plan for investors

5.2.1 residential community.

The main customers of our company will be residential areas that require not only an automated security system in each home but also centralized security teams in place to deal with a breach. We expect to gain about 60% of our customer base from this domain. 

5.2.2 Small/ Large Businesses

We will also provide automated systems, network security services, and small batches of guards to small and large businesses. Mostly, these businesses will require a few guards and a basic automatic security system linked to the police. 

5.2.3 Jewelry Stores

Our company will also serve Jewelry stores that require a state-of-the-art automatic security system as well as an equipped security team that can respond in a short time. 

5.2.4 Highly Sensitive Areas

Lastly, Diamond Phase is aware that there are warehouses and hidden locations that often need security. We expect to come into business contracts with large companies.

5.3 Business Target

• Establish ourselves as an efficient and versatile one-stop solution in the market.
• To attain a customer satisfaction score of 98% within the first 6 months.
• To slowly expand our client base to include multinational corporations.

5.4 Product Pricing

The prices of our products will be competitive with the market baselines. We will offer a wide range of services to choose from so that our clients don’t have to look towards any other firm for full-coverage security solutions.

Strategy 

Setting up a security firm can be tough from a market standpoint. Most places already have trusted firms that they use for security systems. So, it can be hard starting a private security company in such an environment. To deal with these hardships, Jacque decided to come up with competitive advantages from the very beginning. His compelling sales strategy and competitive advantages are given in this business plan of a security company.

So, just as a dog daycare business plan can help a dog daycare business prosper, a business plan targeted at a security firm can help it succeed as well. Therefore, if you want to learn how to start a private security firm, you can go through the plan developed by Jacque for Diamond Phase. 

6.1 Competitive Analysis

• We have a versatile business that offers security in 3 dimensions: manual, automatic, and communication network.
• Our customers can get one-stop solutions at our company, eliminating the need for multiple security systems.
• We have systems in place for training clients’ own employees and guards.

6.2 Sales Strategy

• We will offer comprehensive security packages based on a client’s needs.
• The services of our security analyst to design the security system will be free for clients.
• We will offer a money-back guarantee in case of any issues within the first year.

6.3 Sales Monthly

6.4 Sales Yearly

6.5 Sales Forecast

Personnel plan

When learning how to open up a security company, you need to go into details such as which type of workforce can help you maintain and run the business. Every private security company business plan contains these details.

The employees Jacque decided to hire for Diamond Phase are listed below in this business plan for a security company pdf. 

7.1 Company Staff

• 1 Co-Manager to help in overall operations
• 20 Trained Guards
• 2 Sales Executives to promote sales
• 1 Accountant
• 1 Receptionist

7.2 Average Salary of Employees

Financial Plan

If you are new to the security domain, you may be wondering what you need to start a security company. The truth is, there are a lot of components that make a business plan security company successful. One of the essential components is the financial planning of the business. 

Financial planning can include details ranging from how much it costs to start a security company to the rates for your services. For the financial planning of the Diamond Phase, Jacque dived deep into the profit vs. cost analysis of services to ensure the sustainable working of the business.

The financial plan for the Diamond Phase with all its details is demonstrated below for a better understanding.

8.1 Important Assumptions

8.2 Break-even Analysis

8.3 Projected Profit and Loss

8.3.1 Profit Monthly

8.3.2 Profit Yearly

8.3.3 Gross Margin Monthly

8.3.4 Gross Margin Yearly

8.4 Projected Cash Flow

8.5 Projected Balance Sheet

8.6 Business Ratios

• How do I write a business proposal for a security company?

You can learn how to write a business proposal for a security company through the example of a business plan for a security company given above. 

• How do you write an executive summary for a security company?

An executive summary is an important part of all security company business plans. To write one, you can look into the security company business plan template given above. 

• What are the goals of a security company?

The goals of a security company are dependent on many factors such as location, owner’s expectation, target market, investment, etc., all of which are demonstrated in the business plan for a security company.

Download sample a business plan for a security company pdf

OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.

Ice Vending Machine Business Plan

OGScapital at the National Citizenship and Immigration Conference

How to Start a Plumbing Business in 2024: A Detailed Guide

Vegetable Farming Business Plan

Trading Business Plan

How To Write A Textile Manufacturing Business Plan

Any questions? Get in Touch!

We have been mentioned in the press:

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Save my name, email, and website in this browser for the next time I comment.

Search the site:

An official website of the United States government

Here’s how you know

Official websites use .gov A .gov website belongs to an official government organization in the United States.

Secure .gov websites use HTTPS A lock ( Lock A locked padlock ) or https:// means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.

Disasters and Emergencies

Know what disasters and hazards could affect your area, how to get  emergency alerts , and where you would go if you and your family need to evacuate.  Make sure your family has a plan and practices it often.

Download the FEMA App to get preparedness strategies, real-time weather and emergency alerts.

Order Free Preparedness Materials

Order free preparedness materials from FEMA’s online ordering platform . These materials can be shipped directly to you at no cost.

Hazard Information Sheets

Use these two-sided information sheets to learn more about how to prepare for, keep safe during, and respond to hazards. Learn more about the research behind these information sheets on FEMA’s Protective Actions Research site .

Hazard Information Sheets: Download the Full Suite or download individual sheets for Active Shooter , Avalanche , Cyberattack , Earthquake , Extreme Heat , Financial Emergency , Flood , Hurricane , Landslide , Novel Pandemic , Nuclear Explosion , Power Outage , Thunderstorm, Lightning, and Hail , Tornado , Tsunami , Volcano , Wildfire , Winter Storm .

Are You Ready? Guide

This comprehensive guide provides detailed information on how best to prepare for disasters within families and communities. Learn general disaster preparedness tips and best practices to inform your planning.

Are You Ready? Guide in English or additional languages .

Document and Insure Your Property (PDF)

Disasters are a matter of when, not if. Make sure you’re prepared by documenting your property and ensuring that you have the insurance coverage you need.

Document and Insure Your Property  in  English  or

Additional Languages

Know Your Alerts and Warnings (PDF)

When disaster strikes, know who to turn to for updates, alerts, and warnings. This guide outlines the U.S. alert and warning systems and the information you can expect to receive from each source.

Know Your Alerts and Warnings  in  English  or

A Guide for Alerts and Warnings (PDF)

Learn what to do when you get a hazard alert at home or in the car! The Guide for Alerts and Warnings has information about 17 hazards, their alerts, and the protective actions you can take to stay safe.

Download A Guide for Alerts and Warnings or order a booklet copy with a magnetic strip for the fridge

Safeguard Critical Documents and Valuables (PDF)

Be prepared for any disaster by safeguarding documents and valuables. This guide includes a checklist to help you prepare your documents should you need to file an insurance claim after a disaster.

Safeguard Critical Documents and Valuables  in  English

or  Additional Languages

12 Ways to Prepare (PDF)

This 9” x 6” cardstock postcard describes 12 key ways that you can prepare for disasters. Just add a USPS mailing sticker to the back to send to community members.

12 Ways to Prepare  in  English  or

Last Updated: 03/11/2024

Return to top

Private Security Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business ideas » Security Industry » Private Security Company

Are you about starting a private security agency ? If YES, here is a complete sample private security company business plan template & feasibility report you can use for FREE .

The security industry is an integral part of our world- especially in periods such as this when crime and terrorism has been taken to an all – time high. As a matter of fact, The united states and of course all the countries of the world spend fortunes annually on security; the budget for security is always on the increase every New Year because people that perpetuate crimes and terror are becoming sophisticated as the year goes by.

Basically, a private security company is any company that provides both armed and unarmed security related services and expertise to both private clients and public clients at an agreed fee.

According to the United States of Bureau of Labor Statistics, a private security company is a company that engages in services like providing security guards (bodyguard, guard dog, parking security and security guard services) and patrol services et al.

The average private security outfit can go as far as providing advanced special operations services for special clients when they make demand of 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, and fire and theft prevention and detection et al.

These services can be largely described as the protection of personnel and/or assets.  Private security outfits can also offer security related services such as roving patrol, bodyguard, and guard dog services et al.

A Sample Private Security Company Business Plan Template

1. industry overview.

It is obvious that the private security industry is indeed a fast growing industry, at present there are about 2 million full-time security workers in the United States of America and this number is expected to grow by an estimate of 21 percent by 2022.

The worldwide private security services industry was approximately 96 billion U.S. dollars in size way back 2013 and statistics has it that the largest share of this market was held by Europe at almost 30 percent,  then followed by Asia (with the exception of Japan) and North America.

The income of the private security services industry was set to reach an estimate of about 25 billion U.S. dollars in the United States in 2014. Security alarm services alone in the United States of America generated whooping sum of 17 billion U.S. dollars per year between 2008 and 2014.

It is on record that in 2013, the money generated by the global security technology and related services market rose just over 67 billion U.S. dollars and was projected to reach an estimate of about 86 billion by the year 2016. Statistics also has it that the global spending on ICT related security services was set to reach approximately 50 billion U.S. dollars in 2015.

Without doubt, the private security industry is indeed a large industry which is why some of the leading private security companies worldwide such as UK-based G4S, Sweden-based Securitas AB and U.S.-based ADT Corporation – in 2013 could boast of generating 12.08 billion, 10.12 billion and 3.31 billion U.S. dollars respectively in just a calendar year.

Whereas in the United States of America, the fastest-growing private security company in 2013 was Innovative Surveillance Solutions with a three-year combined revenue growth of about 5,605 percent.

It is on record that of the 15 fastest-growing private security companies, Datto (A Connecticut-based Company specializes in hardware-based backup, disaster recovery and business continuity services) generated the most revenue that year with 48.9 million U.S. dollars.

Statistics also has it that in 2010, the revenue of security services in the United States of America is estimated to be at about 25.2 billion U.S. dollars.

Without mincing words, the private security industry is one industry that is growing despite the point that the government of various countries are not relenting when it comes to providing security for her citizens. One thing is certain, the private security industry is an evolving one and new technology and approaches are being employed when it comes to delivering standard and safer security services.

The industry can’t be said to be oversaturated simply because there are different areas (niches) a private security company can specialize in and if you are good with what you do, then you won’t struggle much to continue to attract clients both nationally and internationally.

The factors and incentives that encourage entrepreneurs to venture into the private security industry are the ability to get good returns on your investment with minimal risks. For example, when you secure a contract to provide security for an event or an organization, the norm is that you will be financially mobilized before executing the contract.

People also get encouraged to go into starting their own private security companies because on the average it is cost effective to manage the business / workforce. It is the practice for private security outfits to recruit and trained security guards, bodyguards and security dogs et al when only when they have a security contract to execute which is why they don’t usually maintain a large workforce.

2. Executive Summary

Stevenson & Gabby® Security Solutions is a first – class and licensed private security company that will be based in Carson City – Nevada. We have been able to secure all the required security clearance to and office facility to run a private security company in the United States.

We are aware that to run a standard private security outfit can be demanding which is why we are well trained and equipped to perform excellently well. Stevenson & Gabby® Security Solutions is a client-focused and result driven private security outfit that provides broad-based security services at an affordable fee that won’t in any way put a hole in the pocket of our clients.

We will offer a standard and professional security services such as the prevention of unauthorized activity or entry in a specified perimeter, traffic regulation, access control, and fire and theft prevention and detection, security advisory and consultancy services, roving patrol, bodyguard, and guard dog services et alto all our individual clients, and corporate clients at local, state, national, and international level.

We will ensure that we work hard to meet and surpass our clients’ expectations whenever they contract their security concerns to our organization.

At Stevenson & Gabby® Security Solutions, our client’s best interest would always come first, and everything we do is guided by our values and professional ethics. We will ensure that we hire professionals who are well experienced in a wide variety of private security services.

Stevenson & Gabby® Security Solutions will at all times demonstrate her commitment to sustainability, both individually and as a firm, by actively participating in our communities and integrating sustainable business practices wherever possible.

We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely. We will cultivate a working environment that provides a human, sustainable approach to earning a living, and living in our world, for our partners, employees and for our clients.

Our plan is to position Stevenson & Gabby® Security Solutions to become one of the leading brands in the private security services industry in the whole of Nevada, and also to be amongst the top 20 private security outfits in the United States of America within the first 10 years of operations.

This might look too tall a dream but we are optimistic that this will surely come to pass because we have done our research and feasibility studies and we are enthusiastic and confident that Carson City – Nevada is the right place to launch our private security business before spreading to other parts of the United States.

Stevenson & Gabby® Security Solutions is private – partnership business that is owned by Stevenson Murray and his friend and business partner Gabby Larry – White. The organization will be managed by both of them.  Mr. Stevenson Murray and Gabby Larry – White graduated from both The University of California – Berkley (First Degree), and University of Harvard (MBA).

Stevenson Murray is a Certified Security Project Manager (CSPM), Cisco Certified Security Professional (CCSP), Certified Security Compliance Specialist (CSCS), and Certified Information System Security Professional (CISSP), while Gabby Larry – White is certified Industrial Security Professional Certification (ISP®) and Global Industrial Cyber Security Professional (GICSP). They have combined hands on experience to help build Stevenson & Gabby® Security Solutions.

3. Our Products and Services

Stevenson & Gabby® Security Solutions is going to offer varieties of services within the scope of private security services industry in the United States of America. Our intention of starting our private security outfit is to make profits from the industry and we will do all that is permitted by the law in the US to achieve our aim and ambition.

Our business offering are listed below;

• 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

4. Our Mission and Vision Statement

• Our vision is to build a private security company brand that will become the number one choice for both individual clients and corporate clients in the whole of Carson City – Nevada.
• Our vision reflects our values: integrity, service, excellence and teamwork.
• Our mission is to provide professional and trusted private security services that assist individuals, businesses and non-profit organizations.
• We are to position the business to become the leading brand in the private security services industry in the whole of Nevada, and also to be amongst the top 20 private security outfits in the United States of America within the first 10 years of operations.

Our Business Structure

Stevenson & Gabby® Security Solutions is a standard private security services outfit that intends to start small in Carson City – Nevada, but looks to grow big in order to compete favorably with leading private security services outfits both in the United States and on a global stage.

We are aware of the importance of building a solid business structure that can support the picture of the kind of world class business we want to own. This is why we are committed to only hiring the best hands within our area of operations.

At Stevenson & Gabby® Security Solutions, we will ensure that we hire people that are qualified, hardworking, creative, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders (the owners, workforce, and customers).

As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more as agreed by the board of trustees of the company. In view of the above, we have decided to hire qualified and competent hands to occupy the following positions;

• Chief Executive Officer

Chief Security Officer / Manager

Security Consultant

Admin and HR Manager

Marketing and Sales Executive

• Customer Services Executive
• Security Guards

5. Job Roles and Responsibilities

Chief Executive Office:

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
• Responsible for providing direction for the business
• Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization
• Manages the overall activities of security staff members and equipment
• Achieves maximum profitability and over-all success by controlling costs and quality of service.
• Completes weekly schedules. Schedule employees as necessary to ensure adequate and consistent levels of security service.
• Supervises weekly schedules. Schedule staff as necessary to ensure adequate and consistent levels of service
• Responsible for security control policies and completion of necessary forms.
• Co-ordinates the general execution of security services as requested by clients.
• Summit security reports on a regular basis to the management of the organization and give professional advice as at when due.
• Responsible for interviewing and hiring security guards, vendors, selecting and ordering materials, negotiating rates, coordinating the sequence of events as it relates to security services
• Plans, designs and produces security solutions (software and hardware et al) while managing all project delivery elements within time limits
• Liaises with clients to identify their security needs and to ensure customer satisfaction
• Conducts market research, gather information and negotiate contracts prior to closing any deals
• Provides security feedback and periodic reports to stakeholders
• Proposes ideas to improve provided security services
• Ensures compliance with insurance, legal, health and safety obligations
• Specifies staff requirements and coordinate their activities
• Cooperates with marketing and PR to promote and publicize safety concerns
• Proactively handle any arising issues and troubleshoot any emerging problems on the event day
• Conducts pre- and post – security evaluations and report on outcomes
• Research market, identifies security services opportunities and generate interest
• Offers security advisory and consultancy services to clients
• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Designs job descriptions with KPI to drive performance management for clients
• Regularly hold meetings with key stakeholders to review the effectiveness of HR Policies, Procedures and Processes
• Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
• Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
• Defines job positions for recruitment and managing interviewing process
• Carries out staff induction for new team members
• Responsible for training, evaluation and assessment of employees
• Responsible for arranging travel, meetings and appointments
• Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.
• Oversees the smooth running of the daily office activities.
• Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
• Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects.
• Writes winning proposal documents, negotiate fees and rates in line with company policy
• Responsible for handling business research, marker surveys and feasibility studies for clients
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Develops, executes and evaluates new plans for expanding increase sales
• Documents all customer contact and information
• Represents the company in strategic meetings
• Helps to increase sales and growth for the company
• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting for one or more properties.
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensures compliance with taxation legislation
• Handles all financial transactions for the company
• Serves as internal auditor for the company

Client Service Executive

• Welcomes guests and clients by greeting them in person or on the telephone; answering or directing inquiries.
• Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
• Manages administrative duties assigned by the manager in an effective and timely manner
• Consistently stays abreast of any new information on the company’s products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries

Security Guards:

• Responsible for prevention of unauthorized activity or entry in a specified perimeter
• Handle traffic regulation services
• In charge of access control services
• Responsible for fire and theft prevention and detection services
• Part of the roving patrol services team
• Offer bodyguard , and guard dog services

6. SWOT Analysis

Because of our drive for excellence when it comes to running a standard private security services business, we were able to engage some of the finest business consultants in Carson City – Nevada to look through our business concept and together we were able to critically examine the prospect of the business and to access ourselves to be sure we have what it takes to run a standard private security outfit

In view of that, we were able to take stock of our strengths, our weakness, our opportunities and also the threats that we are likely going to be exposed to in Carson City – Nevada. Here is a of what we got from the critically conducted SWOT Analysis Stevenson & Gabby® Security Solutions;

Aside from the reality that all our private security company is of world – class standard and the business is well positioned and well – equipped to meet the 21 st century demand of both high profile corporate and individual clients, we have a team that can go all the way to give our clients value for their money; a team that are trained and equipped to pay attention to details as regard security concerns. We are well positioned and we know we will attract loads of clients from the first day we open our doors for business.

As a new private security outfit, it might take some time for our organization to break into the market and gain acceptance in the already saturated private security services industry; that is perhaps our major weakness.

• Opportunities:

The opportunities in the private security services industry is massive considering the number of corporate clients and individual clients who can’t afford to leave the security of the properties and lives to government security agencies. As a standard and world – class private security outfit, we are ready to take advantage of any opportunity that comes our way.

Some of the threats that we may likely face as a private security outfit operating in the United States are unfavorable government policies, the arrival of a competitor within our location of operations and global economic downturn which usually affects purchasing cum spending power.

There is hardly anything we can do as regards these threats other than to be optimistic that things will continue to work for our good.

7. MARKET ANALYSIS

• Market Trends

The security industry is one of the industries that is highly regulated so as to prevent costly security breaches that endanger the security of a country. So if you are looking towards starting a private security company, then you should acquire international security certifications; it will give you edge amongst your competitors.

The truth is that, the more relevant security certifications that you and your team have, the easier it is for you to convince people to patronize your services. Although if you are able to build a successful security company brand, you can pitch your business in any part of the world and still make success out of the business especially if you run a security consultancy and advisory business.

But if you are just starting out; especially if you are a newbie in the security industry, it is important that you locate your business in an area with healthy business activities.

As a matter of fact, social media has now become one of the most important tools private security outfits leverage on to disseminate information about their security concerns, solicit feedback, and create year-round engagement with their target audience.

Furthermore, new software apps and emerging technology have made it easier for private security outfits to gather all the needed data and information that will help them plan and project for the future.

8. Our Target Market

Although Stevenson & Gabby® Security Solutions will initially serve small to medium sized business, from new ventures to well established businesses and individual clients, but that does not in any way stop us from growing to be able to compete with the leading private security companies in the United States.

As a standard and well – equipped private security company, Stevenson & Gabby® Security Solutions offers a wide range of private security services hence we are well trained and equipped to services a wide range of clientele base. Our target market cuts across people of different class and people from all walks of life, local and international organizations as well.

We are coming into the industry with a business concept that will enable us work with the highly placed people and companies in the country and at the same with the lowly placed people and smaller businesses. Below is a list of the people and organizations that we have specifically design our products and services for;

• Blue Chips Companies
• Corporate Organizations
• Religious Organizations
• Political Parties / Politicians
• Households / Families
• Estates and Communities
• Celebrities
• The Government (Public Sector)
• Schools (High Schools, Colleges and Universities)
• Sport Organizations
• Entrepreneurs and Start – Ups

Our Competitive Advantage

Surviving in the business world as a private security company requires more than, your expertise, knowing how to deliver standard security contracts but also how to network with key people that matters; decision makers that can decide who a security contract is giving to and all that.

No doubt there are loads of big time investors such as Halliburton et al that have a stake in the private security industry, but one thing is certain, there is room big enough to accommodate both the big private security companies and the small private security companies.

What smaller private security companies need to do to survive in the industry is to concentrate on providing security services to households, event planners, estates, communities, schools, hospitals and hotels et al before bidding for big security contracts from corporations and government agencies.

Stevenson & Gabby® Security Solutions might be a new entrant into the private security services industry in the United States of America, but the management staffs and owners of the business are considered gurus. They are people who are core professionals and licensed and highly qualified private security experts in the United States.

We are a world – class and standard private security business that is well positioned and well – equipped to meet the 21 st century security demand of both high profile corporate and individual clients. These are part of what will count as a competitive advantage for us.

Lastly, our employees will be well taken care of, and their welfare package will be amongst the best within our category (startups private security services companies) in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Stevenson & Gabby® Security Solutions is established with the aim of maximizing profits in the private security services industry and we are going to go all the way to ensure that we do all it takes to attract clients on a regular basis and sign retainer – ship with most of our clients.

Stevenson & Gabby® Security Solutions will generate income by offering the following private security services for individuals and for corporate organizations;

10. Sales Forecast

One thing is certain, there would always be corporate clients and individual clients who may not be able to afford to leave the security of the properties and lives to government security agencies. As a standard and world – class private security outfit, we are ready to take advantage of any opportunity that comes our way.

We are well positioned to take on the available market in Carson City – Nevada and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six month of operations and grow the business and our clientele base beyond Carson City to other cities in Nevada and other states in the U.S.

We have been able to critically examine the private security services market and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to startups in Carson City – Nevada.

Below are the sales projection for Stevenson & Gabby® Security Solutions, it is based on the location of our business and the wide range of private security services that we will be offering;

• First Fiscal Year-: $350,000
• Second Fiscal Year-: $750,000
• Third Fiscal Year-: $1.25 Million

N.B : This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and natural disasters within the period stated above. There won’t be any major competitor offering same additional services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

• Marketing Strategy and Sales Strategy

We are mindful of the fact that there is stiffer competition amongst private security services companies in the United States of America; hence we have been able to hire some of the best business developer to handle our sales and marketing concerns.

Our sales and marketing team will be recruited based on their vast experience in the industry and they will be trained on a regular basis, so as to be well equipped to meet their targets and the overall goal of the organization.

We will also ensure that our excellent job deliveries speaks for us in the market place; we want to build a standard private security services business that will leverage on word of mouth advertisement from satisfied clients (both individuals and corporate organizations).

Our goal is to grow our private security services company to become one of the top 20 private security services companies in the United States of America which is why we have mapped out strategy that will help us take advantage of the available market and grow to become a major force to reckon with not only in the Carson City – Nevada but also in other cities in the United States of America.

Stevenson & Gabby® Security Solutions is set to make use of the following marketing and sales strategies to attract clients;

• Introduce our business by sending introductory letters alongside our brochure to corporate organizations, religious organizations, schools, households and key stake holders in Lincoln and other cities in Carson City – Nevada
• Promptness in bidding for private security services contracts from the government and other cooperate organizations
• Advertise our business in relevant magazines, newspapers, TV stations, and radio station.
• List our business on yellow pages ads (local directories)
• Attend relevant international and local expos, seminars, and business fairs et al
• Create different packages for different category of clients in order to work with their budgets and still deliver quality private security services to them
• Leverage on the internet to promote our business
• Engage direct marketing approach
• Encourage word of mouth marketing from loyal and satisfied clients

11. Publicity and Advertising Strategy

We have been able to work with our brand and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market.

We are set to take the private security services industry by storm which is why we have made provisions for effective publicity and advertisement of our private security services outfit. Below are the platforms we intend to leverage on to promote and advertise Stevenson & Gabby® Security Solutions;

• Place adverts on both print (community based newspapers and magazines) and electronic media platforms
• Sponsor relevant community based events / programs
• Leverage on the internet and social media platforms like; Instagram, Facebook , twitter, YouTube, Google + et al to promote our brand
• Install our Bill Boards on strategic locations all around Carson City – Nevada
• Engage in road show from time to time in target neighborhoods
• Distribute our fliers and handbills in target areas
• Ensure that all our workers wear our branded shirts and all our vehicles are well branded with our company’s logo et al.

12. Our Pricing Strategy

Just like in services and consulting business, hourly billing for private security services is also a long – time tradition in the industry.  However, for some types of contracts or clients flat fees make more sense because they allow clients to better predict the overall service charges.

As a result of this, Stevenson & Gabby® Security Solutions charge our clients both flat fee and hourly billing as long as it favors both parties. At Stevenson & Gabby® Security Solutions we will keep our fees below the average market rate for all of our clients by keeping our overhead low and by collecting payment in advance.

In addition, we will also offer special discounted rates to start – ups, nonprofits, cooperatives, and small social enterprises. We are aware that there are some clients that would need regular access to private security services, we will offer flat rate for such services that will be tailored to take care of such clients’ needs.

• Payment Options

The payment policy adopted by Stevenson & Gabby® Security Solutions is an all-inclusive one because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.

Here are the payment options that Stevenson & Gabby® Security Solutions will make available to her clients;

• Payment via bank transfer
• Payment with cash
• Payment via POS
• Payment via online bank transfer
• Payment via check
• Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our client make payment for farm produces purchase without any stress on their part. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash or make online transfer for our services.

13. Startup Expenditure (Budget)

In setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting a place, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.

This means that the start-up can either be low or high depending on your goals, vision and aspirations for your business. The tools and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked.

As for the detailed cost analysis for starting a private security services company; it might differ in other countries due to the value of their money. These are the key areas where we will spend our start – up capital;

• The total fee for incorporating the business in the United States of America- $750.
• The budget for basic insurance policy covers, permits and business license – $2,500
• The amount needed to acquire a suitable office facility (Re – Construction of the facility inclusive) – $150,000.
• The Cost for equipping the office (computers, software applications, printers, fax machines, furniture, telephones, filing cabins, security and safety gadgets and electronics et al) – $5,000
• The Cost of Launching an official Website – $600
• The cost for the purchase of 21 st century security gadgets, software and guard dogs et al – $100,000
• Budget for paying  employees for 2 months plus utility bills – $100,000
• Additional Expenditure (Business cards, Signage, Adverts and Promotions et al) – $2,500
• Miscellaneous: $5,000

Going by the report from the market research and feasibility studies conducted, we will need about seven hundred and fifty thousand ( 450,000 ) U.S. dollars to successfully set – up a medium scale but standard private security company in the United States of America.

Generating Funding / Startup Capital for Stevenson & Gabby® Security Solutions

Stevenson & Gabby® Security Solutions is a private – partnership business that will be owned by Stevenson Murray and his friend and business partner Gabby Larry – White. They are the sole financial of the firm, but may likely welcome partners later which is why they decided to restrict the sourcing of the start – up capital for the business to just three major sources.

These are the areas we intend generating our start – up capital;

• Generate part of the start – up capital from personal savings
• Source for soft loans from family members and friends
• Apply for loan from my Bank

N.B: We have been able to generate about $150,000 (Personal savings $100,000 and soft loan from family members $50,000) and we are at the final stages of obtaining a loan facility of $300,000 from our bank. All the papers and document has been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.

14. Sustainability and Expansion Strategy

The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.

One of our major goals of starting Stevenson & Gabby® Security Solutions is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to offer our private security services a little bit lower than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.

Stevenson & Gabby® Security Solutions will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of six years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List / Milestone

• Business Name Availability Check:>Completed
• Business Incorporation: Completed
• Opening of Corporate Bank Accounts various banks in the United States: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of All form of Insurance for the Business: Completed
• Securing a standard office facility and reconstruction inclusive: In Progress
• Conducting Feasibility Studies: Completed
• Generating part of the start – up capital from the founder: Completed
• Applications for Loan from our Bankers: In Progress
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents: In Progress
• Design of The Company’s Logo: Completed
• Graphic Designs and Printing of Packaging Marketing / Promotional Materials: Completed
• Recruitment of employees: In Progress
• Purchase of the needed security gadgets, patrol vans, security software application, security / guard dogs, uniforms, furniture, office equipment, electronic appliances and facility facelift: In progress
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business (Business PR): In Progress
• Health and Safety and Fire Safety Arrangement: In Progress
• Establishing business relationship with vendors and key players in the industry: In Progress

Related Posts:

• Indoor Shooting Range Business Plan [Sample Template]
• Gun Shooting Range Business Plan [Sample Template]
• Locksmith Business Plan [Sample Template]
• Gun Shop Business Plan [Sample Template]
• Cyber Security Business Plan [Sample Template]

7 Organizational Structure Types (With Examples)

Updated: May 29, 2024, 5:39pm

Table of Contents

What is an organizational structure, 4 common types of organizational structures, 3 alternative organizational structures, how to choose the best organizational structure, frequently asked questions (faqs).

Every company needs an organizational structure—whether they realize it or not. The organizational structure is how the company delegates roles, responsibilities, job functions, accountability and decision-making authority. The organizational structure often shows the “chain of command” and how information moves within the company. Having an organizational structure that aligns with your company’s goals and objectives is crucial. This article describes the various types of organizational structures, the benefits of creating one for your business and specific elements that should be included.

Employees want to understand their job responsibilities, whom they report to, what decisions they can and should make and how they interact with other people and teams within the company. An organizational structure creates this framework. Organizational structures can be centralized or decentralized, hierarchical or circular, flat or vertical.

Centralized vs. Decentralized

Many companies use the traditional model of a centralized organizational structure. With centralized leadership, there is a transparent chain of command and each role has well-defined responsibilities.

Conversely, with a decentralized organizational structure, teams have more autonomy to make decisions and there may be cross-collaboration between groups. Decentralized leadership can help companies remain agile and adapt to changing needs.

Hierarchical vs. Circular

A hierarchical organization structure is the pyramid-shaped organization chart many people are used to seeing. There is one role at the top of the pyramid and the chain of command moves down, with each level decreasing in responsibilities and authority.

On the other hand, a circular organization chart looks like concentric circles with company leadership in the center circle. Instead of information flowing down to the next “level,” information flows out to the next ring of management.

Vertical vs. Flat

A vertical organizational chart has a clear chain of command with a small group of leaders at the top—or in the center, in the case of a circular structure—and each subsequent tier has less authority and responsibility. As discussed below, functional, product-based, market-based and geographical organizational structures are vertical structures.

With a flat organization structure, a person may report to more than one person and there may be cross-department responsibilities and decision-making authority. The matrix organizational structure described below is an example of a flat structure.

Benefits of Creating an Organizational Structure

There are many benefits to creating an organizational structure that aligns with the company’s operations, goals and objectives. Clearly disseminating this information to employees:

• Provides accountability
• Clarifies expectations
• Documents criteria for promotion
• Designates decision-making authority
• Creates efficiency
• Fosters collaboration

Essential Elements of Clear Organizational Structure

Regardless of the special type of organizational structure you choose, it should have the following components:

• Chain of command
• Roles and responsibilities
• Scope of control
• Decision-making authority
• Departments or teams within the organization

Functional/Role-Based Structure

A functional—or role-based—structure is one of the most common organizational structures. This structure has centralized leadership and the vertical, hierarchical structure has clearly defined roles, job functions, chains of command and decision-making authority. A functional structure facilitates specialization, scalability and accountability. It also establishes clear expectations and has a well-defined chain of command. However, this structure runs the risk of being too confining and it can impede employee growth. It also has the potential for a lack of cross-department communication and collaboration.

Product- or Market-Based Structure

Along with the functional structure, the product- or market-based structure is hierarchical, vertical and centralized. However, instead of being structured around typical roles and job functions, it is structured around the company’s products or markets. This kind of structure can benefit companies that have several product lines or markets, but it can be challenging to scale. It can also foster inefficiency if product or market teams have similar functions, and without good communication across teams, companies run the risk of incompatibility among various product/market teams.

Geographical Structure

The geographical structure is a good option for companies with a broad geographic footprint in an industry where it is essential to be close to their customers and suppliers. The geographical structure enables the company to create bespoke organizational structures that align with the location’s culture, language and professional systems. From a broad perspective, it appears very similar to the product-based structure above.

Process-Based Structure

Similar to the functional structure, the process-based structure is structured in a way that follows a product’s or service’s life cycle. For instance, the structure can be broken down into R&D, product creation, order fulfillment, billing and customer services. This structure can foster efficiency, teamwork and specialization, but it can also create barriers between the teams if communication isn’t prioritized.

Matrix Structure

With a matrix organizational structure, there are multiple reporting obligations. For instance, a marketing specialist may have reporting obligations within the marketing and product teams. A matrix structure offers flexibility, enables shared resources and fosters collaboration within the company. However, the organizational structure can be complex, so it can cause confusion about accountability and communication, especially among new employees.

Circular Structure

Similar to the functional and product-based structure, a circular structure is also centralized and hierarchical, but instead of responsibility and decision-making authority flowing down vertically, responsibility and decision-making authority flow out from the center. A circular structure can promote communication and collaboration but can also be confusing, especially for new employees, because there is no clear chain of command.

Organic Structure

Unlike vertical structures, this structure facilitates communication between and among all staff. It is the most complex, but it can also be the most productive. Although it can be challenging to know who has ultimate decision-making authority, it can also foster a positive company culture because employees don’t feel like they have “superiors.” This structure can also be more cost-efficient because it reduces the need for middle managers.

There is no one “right” organizational structure. When deciding which structure will work best for your company, consider the following:

• Current roles and teams within the company. How are job functions currently organized? Does it foster communication and productivity? Does it impede or encourage employee growth?
• Your strategic plan. What are your company’s goals for the short-term and long-term?
• Feedback from employees, leadership and other stakeholders. What do those within your company say about how the company is structured? What feedback do you have from other stakeholders, such as customers and suppliers?
• Alignment. What structure will best support your strategic plans and address any feedback received?

What is the most common organizational structure?

A functional organizational structure is one of the most common organizational structures. If you are still determining what kind of structure to use, this organizational structure can be an excellent place to start.

What is the difference between an organizational structure and an organizational chart?

An organizational chart is a graphic that depicts the organizational structure. The chart may include job titles or it can be personalized to include names and photos.

What are the four types of organizational structures?

A functional—or role-based—structure is one of the most common organizational structures. The second type—the product- or market-based structure—is also hierarchical, vertical and centralized. Similar to these is the third structure—the process-based structure—which is structured in a way that follows a product’s or service’s life cycle. Lastly, the geographical structure is suitable for businesses with a broad geographic footprint.

• Best HR Software
• Best HCM Software
• Best HRIS Systems
• Best Employee Management Software
• Best Onboarding Software
• Best Talent Management Software
• Best HR Outsourcing Services
• Best Workforce Management Software
• Best Time And Attendance Software
• Best Employee Scheduling Software
• Best Employee Time Tracking Apps
• Best Free Time Tracking Apps
• Best Employee Training Software
• Best Employee Monitoring Software
• Best Enterprise Learning Management Systems
• Best Time Clock Software
• Best ERP Systems
• Zenefits Review
• Oracle HCM Review
• UKG Pro Review
• IntelliHR Review
• ADP Workforce Now Review
• ADP TotalSource Review
• SuccessFactors Review
• Connecteam Review
• What is Human Resources?
• Employee Benefits Guide
• What is Workforce Management?
• What is a PEO?
• What is Human Capital Management?
• HR Compliance Guide
• Strategic Human Resource Management
• Onboarding Checklist
• Benefits Administration Guide
• What Is Employee Training?
• Employee Development Plan
• 30-60-90 Day Plan Guide
• How To Calculate Overtime
• What Is Outplacement?
• New Hire Orientation Checklist
• HR Analytics Guide

Next Up In Business

• 10 Management Styles Of Effective Leaders
• Recruitment Process Outsourcing: The Ultimate Guide
• Attendance Policy Template
• What Is Rightsizing?
• Administrative Assistant Job Description
• What Are Voluntary Benefits?

How To Start A Print On Demand Business In 2024

HR For Small Businesses: The Ultimate Guide

How One Company Is Using AI To Transform Manufacturing

Not-For-Profit Vs. Nonprofit: What’s The Difference?

How To Develop an SEO Strategy in 2024

How To Make Money On Social Media in 2024

Christine is a non-practicing attorney, freelance writer, and author. She has written legal and marketing content and communications for a wide range of law firms for more than 15 years. She has also written extensively on parenting and current events for the website Scary Mommy. She earned her J.D. and B.A. from University of Wisconsin–Madison, and she lives in the Chicago area with her family.

An official website of the United States government

Here’s how you know

Official websites use .gov A .gov website belongs to an official government organization in the United States.

Secure .gov websites use HTTPS A lock ( Lock A locked padlock ) or https:// means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.

• Cybersecurity

The Department of Homeland Security and its components play a lead role in strengthening cybersecurity resilience across the nation and sectors, investigating malicious cyber activity, and advancing cybersecurity alongside our democratic values and principles.

President Biden has made cybersecurity a top priority for the Biden-Harris Administration at all levels of government. To advance the President’s commitment, and to reflect that enhancing the nation’s cybersecurity resilience is a top priority for DHS, Secretary Mayorkas issued a call for action dedicated to cybersecurity in his first month in office. This call for action focused on tackling the immediate threat of ransomware and on building a more robust and diverse workforce.

In March 2021, Secretary Mayorkas outlined his broader vision and a roadmap for the Department’s cybersecurity efforts in a virtual address hosted by RSA Conference, in partnership with Hampton University and the Girl Scouts of the USA.

View Transcript | View Original "Confronting Realities: A Vision for Cybersecurity Resilience" video

After his presentation, the Secretary was joined by Judith Batty, Interim CEO of the Girls Scouts, for a fireside chat to discuss the unprecedented cybersecurity challenges currently facing the United States. Dr. Chutima Boonthum-Denecke from Hampton University’s Computer Science Department introduced the Secretary and facilitated a Q&A to close the program.

What DHS is Doing

Cybersecurity and infrastructure security agency (cisa).

The Cybersecurity and Infrastructure Security Agency (CISA) leads the national effort to understand, manage, and reduce risk to our cyber and physical infrastructure. The agency connects its stakeholders in industry and government to each other and to resources, analyses, and tools to help them fortify their cyber, communications, and physical security and resilience, which strengthens the cybersecurity posture of the nation.   

CISA is at the center of the exchange of cyber defense information and defensive operational collaboration among the federal government, and state, local, tribal and territorial (SLTT) governments, the private sector, and international partners. The agency has two primary operational functions. First, CISA is the operational lead for federal cybersecurity, charged with protecting and defending federal civilian executive branch networks in close partnership with the Office of Management and Budget, the Office of the National Cyber Director, and federal agency Chief Information Officers and Chief Information Security Officers. Second, CISA is the national coordinator for critical infrastructure security and resilience, working with partners across government and industry to protect and defend the nation’s critical infrastructure.

• Learn more about how CISA is coordinating DHS’s broad cyber mission .

Cyber Safety Review Board (CSRB)

The Cyber Safety Review Board (CSRB) , an independent public-private advisory body administered by DHS through CISA, brings together public and private sector cyber experts/leaders to review and draw lessons learned from the most significant cyber incidents. Under the leadership of the Board’s Chair, DHS Under Secretary for Policy Robert Silvers, and Deputy Chair, Google VP for Security Engineering Heather Adkins, the CSRB recently published its first report on the Log4j software vulnerability. The report included 19 actionable recommendations for the public and private sectors to work together to build a more secure software ecosystem. DHS is already leading by example to implement the recommendations, through CISA guidance and Office of the Chief Information Officer initiatives to enhance open source software security and invest in open source software maintenance.

Transportation Security Agency (TSA)

The Transportation Security Agency (TSA) is charged with securing the nation’s transportation systems, which includes aviation, intermodal and surface transportation. The network of surface transportation operators include highway and motor carriers, freight and passenger railroad carriers, pipeline owners and operators, and mass transit carriers. In close coordination with CISA, TSA uses a combination of regulation and public-private partnerships to strengthen cyber resilience across the broad transportation network. TSA’s efforts include a combination of cybersecurity assessments and engagements; stakeholder education; publication of cybersecurity guidance and best practices; and use of its regulatory authority to mandate appropriate and durable cybersecurity measures.

United States Coast Guard (USCG)

The United States Coast Guard (USCG) enables operations at sea, in the air, on land and space by delivering effects and capabilities in and through cyberspace. It is the nation’s lead federal agency for securing and safeguarding the maritime domain. In its role as a military, law enforcement, and regulatory agency, the Coast Guard has broad authority to combat cyber threats and protect U.S. maritime interests both domestically and abroad. In support of the Maritime Transportation System (MTS), the Coast Guard continually promotes best practices, identifies potential cyber-related vulnerabilities, implements risk management strategies, and has in place key mechanisms for coordinating cyber incident responses.

United States Secret Service (USSS)

The United States Secret Service (USSS) investigates a range of cyber-enabled crime with a particular focus on protecting the nation’s financial infrastructure. The Secret Service cybercrime mission focuses on acts that target and threaten the American financial system, such as network intrusions and ransomware, access device fraud, ATM and point-of-sale system attacks, illicit financing operations and money laundering, identity theft, social engineering scams, and business email compromises. Through the agency’s Cyber Fraud Task Forces (CFTF), the Secret Service brings together critical partners, to include other law enforcement agencies, prosecutors, private industry, and academia, to pursue a comprehensive response to the threat.

Immigration and Customs Enforcement - Homeland Security Investigations (ICE HSI)

Immigration and Customs Enforcement - Homeland Security Investigations (ICE HSI) is a worldwide law enforcement leader in dark net and other cyber-related criminal investigations. HSI's Cyber Crimes Center (C3) delivers computer-based technical services to support domestic and international investigations into cross-border crime. C3's Child Exploitation Investigations Unit (CEIU) is a powerful tool in the fight against the sexual exploitation of children; the production, advertisement and distribution of child pornography; and child sex tourism.

Office of the Chief Information Officer (OCIO)

The Office of the Chief Information Officer (OCIO) ensures strong cybersecurity practices within DHS, so that the Department may lead by example. OCIO works with component agencies to mature the cybersecurity posture of the Department as a whole. OCIO continues to secure and strengthen the Department of Homeland Security’s cybersecurity posture by implementing and managing the DHS Information Security Program and ensuring DHS' compliance with applicable federal laws, executive orders, directives, policies, and regulations.

Office of Policy

The Office of Policy is leading the whole of federal government effort to coordinate, de-conflict, and harmonize cyber incident reporting requirements through the Cyber Incident Reporting Council. Established under the bipartisan Cyber Incident Reporting for Critical Infrastructure Act, the Council brings together federal departments and independent regulators. Through the Council, the Office of Policy is extensively engaging with private sector stakeholders to ensure that we hear from the stakeholders themselves who will benefit from streamlined reporting requirements to ensure greater quality, quantity, and timeliness.

FY22 Cybersecurity Sprints

In his March 31, 2021, address, Secretary Mayorkas outlined a bold vision for the Department’s cybersecurity efforts to confront the growing threat of cyber-attacks, including a series of 60-day sprints to operationalize his vision, to drive action in the coming year, and to raise public awareness about key cybersecurity priorities.

• Learn more about the FY22 Cybersecurity Sprints

Overview of Additional Ongoing Cybersecurity Priorities

In addition to the series of 60-day sprints, the Secretary will focus on four ongoing priorities: (1) cementing the resilience of democratic institutions, including the integrity of elections and institutions outside of the executive branch, (2) building back better to strengthen the protection of civilian federal government networks, (3) advancing a risk-based approach to supply chain security and exploring new technologies to increase resilience, and (4) preparing for strategic, on-the-horizon challenges and emerging technology such as the transition to post-quantum encryption algorithms.

Resilience of Democratic Institutions

Fair and free elections are a hallmark of American democracy. The American people’s confidence in the value of their vote is principally reliant on the security and resilience of the infrastructure that makes the Nation’s elections possible. Accordingly, an electoral process that is both secure and resilient is a vital national interest and one of the Department of Homeland Security’s highest priorities. The Department’s Cybersecurity and Infrastructure Security Agency (CISA) is committed to working collaboratively with those on the front lines of elections—state and local governments, election officials, federal partners, and vendors—to manage risks to the Nation’s election infrastructure. CISA will remain transparent and agile in its vigorous efforts to secure America’s election infrastructure from new and evolving threats.

• Learn more about DHS efforts on election security

Protecting the Civilian Federal Government

On May 12, 2021, President Biden signed an Executive Order to improve the nation’s cybersecurity and protect federal government networks following recent cybersecurity incidents exploiting SolarWinds and Microsoft Exchange. This Executive Order makes a significant contribution toward modernizing cybersecurity defenses by protecting federal networks, improving information-sharing between the U.S. government and the private sector on cyber issues, and strengthening the United States’ ability to respond to incidents when they occur. DHS encourages private sector companies to follow the Federal government’s lead and take ambitious measures to augment and align cybersecurity investments with the goal of minimizing future incidents.

Most of the actions outlined in the Executive Order are to be implemented by the Department of Homeland Security, namely CISA. In addition, Congress provided CISA with new authorities in the 2021 National Defense Authorization Act (NDAA) and with a down payment to improve the protection of civilian federal government networks with the funding provided through the American Rescue Plan. This ongoing priority will therefore focus on implementing the Executive Order, the NDAA, and the funding provided by Congress in an effective and timely manner.

• Learn more about President Biden’s Executive Order

Strengthening Supply Chain Security

The Executive Order signed by President Biden in May 2021 focuses on improving software supply chain security by establishing baseline security standards for development of software sold to the government, including requiring developers to maintain greater visibility into their software and making security data publicly available. It stands up a concurrent public-private process to develop new and innovative approaches to secure software development and uses the power of Federal procurement to incentivize the market. Finally, it creates a pilot program to create an “energy star” type of label so the government – and the public at large – can quickly determine whether software was developed securely.

Too much of software, including critical software, is shipped with significant vulnerabilities that can be exploited by cyber criminals. The Federal Government will use its purchasing power to drive the market to build security into all software from the ground up.

This ongoing priority will focus on implementing this part of the Executive Order.

• “CISA Announces Renewal of the Information and Communications Technology (ICT) Supply Chain Risk Management Task Force” (August 2, 2021)

Preparing for On-the-Horizon Challenges

In his March 31, 2021 speech, Secretary Mayorkas stressed the need for senior leaders to focus on strategic, on-the-horizon challenges and emerging technology. He specifically highlighted the importance of the transition to post-quantum encryption algorithms pointing out that the transition is as much dependent on the development of such algorithms as it is on their adoption. While the former is already ongoing, planning for the latter remains in its infancy. The government and industry must prepare for it now to protect the confidentiality of data that already exists today and remains sensitive in the future.

Together with its interagency partners, DHS is developing a plan for how the Department can help facilitate this transition. Considering the scale, implementation will be driven by the private sector, but the government can help ensure the transition will occur equitably, and that nobody will be left behind. DHS will focus on three pillars to drive this work forward, working in close coordination with NIST and other Federal and nonfederal stakeholders: (1) Planning for DHS’s own transition to quantum resistant encryption, (2) Cooperating with NIST on tools to help individual entities prepare for and manage the transition, and (3) Developing a risks and needs-based assessment of priority sectors and entities and engagement plan.

• Launch of DHS Guidance, Roadmap, and FAQs in partnership with NIST

Additional Information

• Cybersecurity Resources | CISA.gov
• Ransomware Resources | CISA.gov
• Cybersecurity Jobs | CISA.gov
• E.O. on Improving the Nation’s Cybersecurity

Latest Cybersecurity News

Dhs, cisa announce membership changes to the cyber safety review board, statement from secretary mayorkas on microsoft's announcement of security updates following csrb recommendations, dhs publishes guidelines and report to secure critical infrastructure and weapons of mass destruction from ai-related threats.

• Best for customer satisfaction
• Best for older adults
• Best for long-term care
• Best for high returns
• Best for agent support
• Best for term life
• Why you should trust us

Best Life Insurance of June 2024

Affiliate links for the products on this page are from partners that compensate us (see our advertiser disclosure with our list of partners for more details). However, our opinions are our own. See how we rate insurance products to write unbiased product reviews.

Life insurance is as complicated as the policyholders and beneficiaries who use it. That means there's no single "best" life insurance company. Instead, you can find the best option based on what you want or what you prioritize.

Summary of the Best Life Insurance Companies

• Best for customer satisfaction:   State Farm Life Insurance
• Best for older adults:   Prudential Life Insurance
• Best for agent support:   New York Life Insurance
• Best for long-term care:   Columbus Life
• Best for high returns:   Allianz Life
• Best for term life:   North American Company

Best Life Insurance Companies of 2024

While there is no such thing as the objective best life insurance policy, you will be able to find the best insurance policy for your specific needs. Here are our picks for the best life insurance companies, whether you want to use your life insurance policy to build wealth through cash value or you're just looking for a term life insurance policy .

Best Life Insurance for Customer Satisfaction: State Farm Life Insurance

Bundling is standard, and agents often quote with multiple discounts.

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Best in JD Power customer service ratings
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Company offers a range of different insurance products to meet buyer needs
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Agents are knowledgeable about its products
• con icon Two crossed lines that form an 'X'. Life insurance products are conservative and limited
• con icon Two crossed lines that form an 'X'. Buyers may be subject to multi-year waiting periods before they qualify for full payouts on life insurance policies
• con icon Two crossed lines that form an 'X'. State Farm agents cannot offer alternative options if State Farm is unable to bind a life insurance policy

State Farm is one of the insurance industry's most prominent insurers offering auto, home, and other insurance. Bundling is standard, and agents often quote with multiple discounts. Its term, universal, and whole life insurance products are no exception.

• Life insurance products include term and permanent life
• Ranks highly for customer satisfaction

State Farm Life Insurance gets the best life insurance ranking in J.D Power's Individual Life Insurance Study, with a score of 843/1,000. The company is also ranked A++ with AM Best for its financial stability with term, universal, and whole life insurance options. 

All State Farm policies have to be purchased through a State Farm agent. Your agent can help you bundle and save or buy one policy. State Farm is also among the companies offering "survivorship universal life insurance ," which means the policy covers two people, and it kicks in after the second person dies. Couples looking to maximize their death benefit for beneficiaries with one premium payment each month may enjoy lower overall costs.

State Farm agents can run quotes and compare options to find the right plans for each applicant. The range of options, discounts, and familiar name all contribute to the popularity of State Farm's life insurance.

Read our State Farm Life Insurance review here.

Best Life Insurance for Older Adults: Prudential VUL Protector Life Insurance

Offers aggressive financial plans.

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Available in all 50 states (New York residents may have different plans)
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Buyers can withdraw money to pay for nursing home bills due to severe illness or disability
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Knowledgeable agents who can walk you through your options
• con icon Two crossed lines that form an 'X'. Financial returns are limited
• con icon Two crossed lines that form an 'X'. Limited policy options for seniors and other groups who might struggle to find life insurance

The aggressive financial plans offered by Prudential may appeal to many younger buyers and those with a stable income. However, those with lower income or buyers who aren't sure about the financial system may be more hesitant to engage with Prudential. Like many other industry giants, Prudential is working to change this perception.

Prudential Life Insurance is available in all states except New York. New York residents can buy the Pruco Life of New Jersey VUL Protector plan. This plan allows buyers to pull money out of their plan to pay for nursing home expenses. Cash value policy premiums are fixed, so you won't have to worry about extra costs later on. Internal costs are low, which minimizes risk. Due to age, many older adults want a safe investment option for their money. Prudential VUL Protector invests to avoid loss. That also means you're not as likely to see big increases in your available funds outside of what you deposit.

Read our Prudential Life Insurance review here.

Best Life Insurance for Long-Term Care: Columbus Life Insurance

Offers lien method to makes it easier to calculate the financial impact of pulling money out early.

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Buyers can pull money out for medical and other bills in the event of disease or disability
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Columbus uses lien method to simplify accelerated death payments
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Company offers a wide range of riders to customize policies
• con icon Two crossed lines that form an 'X'. Premiums may be higher than competitors
• con icon Two crossed lines that form an 'X'. Term policies are not guaranteed to be converted to whole

Best for long-term care and accelerated death benefits.

Columbus Life offers a wide range of riders to customize your policy with affordable premiums. The company also allows you to convert term policies to whole life insurance policies until the end of your term (generally around age 70). For this and many other reasons, customer satisfaction is high.

When using living health benefits (otherwise known as accelerated death benefits), buyers are allowed to pull money from policies early to pay for medical bills, living costs, etc. under certain circumstances. Most companies use a discounted death benefit, which reduces your final payout using two models. Columbus uses the lien method, which makes it easier to calculate the financial impact of pulling money out early.

Best Life Insurance for High Returns on Income: Allianz Life Insurance

Offers life insurance policies for foreign nationals with H-1B visas.

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Plans offer high returns on investment
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Great for investment and long-term retirement planning
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. May increase your income by as much as 20%
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Allianz offers plans for foreign nationals including H-1B visas
• con icon Two crossed lines that form an 'X'. Plans are meant specifically for high-income adults, alternatives may not be offered

Best for investing and high returns on income.

Allianz Life plans are geared towards high-income adults looking for more tax-free income. Allianz offers a 40% multiplier bonus with a 1% annual assets charge. In short, the professionals managing your investments take 10%. Overall, your investments would pull in an extra 14%-1% asset charge. This means you end up with 3% more than what you deposit every year your life policy is active. This plan offers strong returns when using a life policy to supplement your retirement savings. Allianz also offers specialized plans to grow your income by as much as 20% according to some estimates.

Of note: Allianz also offers plans for foreign nationals, including those with H-1B visas.

Best Life Insurance for Agent Support: New York Life Insurance

Offers aggressive financial products and extensively trained agents.

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Strong life insurance options for financial planning and wealth building
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Policies available nationwide
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Knowledgeable life insurance agents
• con icon Two crossed lines that form an 'X'. May require a medical exam
• con icon Two crossed lines that form an 'X'. Buyers looking for more modest policies may not find the most competitive pricing

If you're preparing for a comfortable retirement or looking to build generational wealth, New York Life is one of the strongest options. If you have questions or genuinely want to understand your life insurance options, New York Life agents are among the most qualified professionals in the business.

• Life insurance provider with policies available across the US

New York Life Insurance agents go through extensive training before they ever hit the sales floor. What does this get you? Policies vary widely, and New York Life offers both large and small payouts. Some policies have significant penalties for early withdrawal, but taking a loan offers more options. Whatever your questions, New York Life agents are trained to offer comprehensive support giving you accurate information about its policies every time. The company comes in at position eight in J.D. Power's latest life insurance customer satisfaction study.

Read our New York Life Insurance review here.

Best Life Insurance for Term Life: North American Life Insurance

Offers term policies alongside accelerated death benefits for critical, chronic, and terminal illnesses and more.

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Offers accelerated death benefits for critical, chronic, and terminal illnesses
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Offers conversion for life policies up to 70 years old
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Term policies can be renewed up to age 95 for qualifying applicants
• con icon Two crossed lines that form an 'X'. Not all term policies qualify for renewal or conversion

Best Term Policy.

North American Company offers term policies alongside accelerated death benefits for critical, chronic, and terminal illnesses and more. The company allows one conversion on a 20-year policy at 15 years or 70 years old (whichever is earlier). The conversion cannot happen later than the five-year marker regardless of which policy you choose or the length. North American Company also offers a term policy with a lower premium renewable up to the age of 95 for qualifying insureds.

Types of Life Insurance

While there's many different types of life insurance policies , broadly speaking, there are two types of life insurance: temporary and permanent. Let's go over each in detail.

Temporary life insurance

Temporary life insurance is often called term life insurance. This type of policy covers you for a set amount of time before expiring, usually between 10-30 years. If you pass away after your policy expires, your family won't receive any benefits. Additionally, your policy won't accrue cash value like a permanent policy. That said, some term life insurance policies offer a conversion from term to whole life insurance, so you can extend your coverage. 

Because its benefits aren't guaranteed, term life policies are generally cheaper than permanent life insurance. That said, the vast majority of term life insurance policies never pay out. on

Permanent life insurance

Permanent life insurance is an umbrella term for a variety of life insurance policies that will insure you indefinitely and guarantee a payout as long as you maintain your policy. Policy types that fall under permanent life insurance includes:

• Whole life insurance
• Universal life insurance
• Variable life insurance
• Variable universal life insurance
• Simplified life insurance
• Guaranteed issue life insurance

These policies vary widely in purpose and intended buyers, but all guarantee death benefits to your loved ones. Some permanent life insurance policies, like whole, universal, and variable have a cash value component , which you can use as a savings tool or to leave your heirs a larger death benefit.

How to Pick the Best Life Insurance Policy for You

Finding the right fit in life insurance starts with finding a trusted insurance agent. Because there are so many state regulations, shopping for homeowners or auto insurance can be easily done online. Life insurance is not required. So it's a voluntary purchase. Many buyers don't know what they need or when they need it. Before making your selection, consider a few things:

Some companies will sell you a policy for your child as soon as they're born. While this may seem morbid, early sign-up means lower rates for a policy your child could enjoy in the future. Regardless, early sign-up equates to more policy for lower premiums and a higher likelihood of acceptance. At 20, you may be healthier and be able to pay into the policy for a longer period compared to when you're 50 with more age-related conditions.

As a general rule, never agree to more than you can afford. For the average life insurance agent, their job is to sell you a large policy with a large commission. Consider not only how much you make now, but how likely your current income is to continue. If you work on a project basis and your project is scheduled to end in 12 months, you may want to reconsider a policy premium outside your monthly savings.

How much are you prepared to buy? Some people only want a small policy to cover funerals and other end-of-life expenses. Others build a life policy into their retirement plan. Whatever direction you're going, involving a financial planner could help you make the right decisions. Depending on the carrier, customers can also compare set limits with index universal life policies, which set no limit. These policies never expire, and the value builds over the entirety of your life.

Living Benefits

Life happens unexpectedly. You could be healthy one day and in the hospital the next. Many life policies offer living benefits. These allow you to draw a limited amount out of your policy to cover medical and other bills you cannot pay while sick.

Much like a 401(k), many life insurance policies have penalties for early withdrawal. No matter what policy you want, this question is critical to an informed decision. It's a question of how early you can withdraw and how much you'll lose from the total to have the money in 10 years instead of 30 or after death.

Some policies require insured parties to pay premiums for at least one year before any significant payout would be available. Suicide exclusions are common. Even with no medical exam policies, the company may still do a check for known conditions. An insurance company has to mitigate its risk.

Flexibility

Once you've been denied a life insurance policy, a mark goes on your record. No matter the reasons, other insurance companies may deny you coverage based on the first denial. So consider your whole situation and choose your policy carefully before you submit any applications. Some policies have greater flexibility if you lose your job or otherwise can't make payments. Others will lapse if you miss even one payment.

Payment Type

Even within whole life or term life insurance policies, customers have the option to choose guaranteed fixed or variable rates. Some have guaranteed payouts, but you'll need to ask your agent for details.

What is your intended use? Why are you shopping for a life insurance policy in the first place, and what are your goals? Many successful financial planners also have a background in life insurance. So while they may not be able to find you a specific life insurance policy, financial planners can help you set out a blueprint for your purchase.

Why You Should Trust Us: How We Reviewed the Best Life Insurance Companies

In life insurance, it's easy to get "sold a bill of goods." Many life insurance agents pass a state test to be thrown into the deep end. Agents sell the company product, but not all know the products. In this vein, we look at the products each company offers. We also look at agent training.

A good life insurance agent may not volunteer all facts upfront. But a company's agents should answer questions about its products accurately and in a way the average consumer can digest. Agents should be able to inform you about the long-term benefits and limitations. This will help customers find the right policy for their long-term plan.

We consider affordability, policy sizes available, and performance for a comprehensive assessment in our insurance rating methodology . If you can, we recommend also working with a financial advisor to make a plan for your future with life insurance.

Our Expert Panel for The Best Life Insurance Companies

To inform our choices for the best life insurance companies, we spoke with the following experts:

• Paul LaPiana , head of product at MassMutual
• Barbara Pietrangelo , CFP, CLU, and chair of the nonprofit Life Happens
• Wykeeta Peel , Corporate Vice President and Market Manager, African American Market Unit at New York Life

The Experts' Advice on Choosing The Best Life Insurance for You

How much life insurance coverage do you believe the average buyer should have.

Paul LaPiana, Head of Product at MassMutual

"There are different approaches to determining how much life insurance you need. One is the 'human life' approach, which estimates the current value of your future earning potential. Another is securing specific coverage to pay off debts such as a mortgage or provide for the education of children. A comprehensive protection plan should provide the right amount of coverage over the course of your working life and into retirement."

Barbara A. Pietrangelo, Chair of Life Happens

"There is no one-size-fits-all life insurance policy because everyone is different. One way to get a rough estimate is to multiply your income by 10 to 15; another is adding $100,00 to that amount, should you have a child and anticipate college education expenses.

Your best bet is to talk to a financial professional or use the Life Insurance Needs Calculator on LifeHappens.org to analyze what's right for you."

Wykeeta Peel, Corporate Vice President & Market Manager African American Market Unit at New York Life

"As you consider what policy best meets your needs, it can help to answer four key questions: First, how much death benefit do you need? Second, how long will you need that coverage? Third, what is your budget (or how much monthly premium can you afford to pay?), and finally, what is your investment risk tolerance?

To determine how much death benefit makes sense, it's helpful to think beyond using life insurance to cover funeral expenses and consider whether anyone is relying on the policy owner's income to maintain a lifestyle, pay rent or a mortgage, or fund a child's education and for how long.

There are various rules of thumb regarding the right amount of Life insurance coverage. Some tips can be found online, but they only provide an estimate and don't necessarily factor in an individual's specific needs. In my opinion, human guidance, powered by technology, is required. Basically, it comes down to how much money your loved ones would need to remain on firm financial ground if your earnings were no longer in the picture and that is different for everyone."

What is the biggest opportunity you see for improvement in the life insurance industry?

"Increased accessibility through digital and other channels as well as through underwriting enhancements. Increased tailoring of products and features. And an increased emphasis on health and wellness programs."

"Having enough qualified insurance professionals to walk potential buyers through the multiple benefits of life insurance will be pivotal to the growth of the industry. Education is a key factor here, as professional agents also need to be able to explain life insurance and its benefits in an easy, digestible way, especially when there are so many misconceptions about life insurance."

"The need for life insurance is greater than ever. In fact, a recent New York Life Wealth Watch survey found that 37% of adults have been thinking about life insurance more often these days – and half of adults report that financial products that provide protection (50%) and reliability (50%) are more important now compared to last year. This may be especially true for middle-market and Cultural Market families.

Our organizational structure of having Cultural Market agents embedded in the communities where we live and work allows us to understand the needs of diverse communities and develop solutions that resonate with them."

What advice would you give to buyers who are debating whether or not to buy life insurance?

"It is difficult to say with any certainty how healthy you will be years from now. That's why securing life insurance, and insuring your insurability, today, when you are the youngest you'll ever be again, and perhaps your healthiest is a wise decision."

"Do you love someone? If the answer is yes, then life insurance is certainly something you should consider. Many buy gifts and experiences to express their love, but haven't considered that life insurance is just another way to say I love you. Nothing says support like ensuring your family's financial security and peace of mind."

"If you have someone depending on your income, you should consider purchasing life insurance. A death benefit from a life insurance policy can replace income from the loss of a breadwinner, ensure a family can stay in their home, fund educational or retirement expenses, address debt and so much more.

A life insurance policy can also help you grow your family's wealth over time. Once the risk of an unexpected loss has been managed, you can begin to think more broadly about your family's financial future. Life insurance can enable your mindset to shift from death to growth."

What's the most important thing buyers should look for when choosing a life insurance agent/company to buy from?

"With life insurance, you are securing a future commitment that may be decades away. Research the company behind the policy to ensure it has high financial strength ratings, longevity, and an excellent track record of paying claims."

"When looking for an insurance agent or company, be sure to do your research. When comparing companies, be sure to remember that the policy features that fit you and your loved ones best is the most important factor. Don't automatically assume you should buy from the higher-rated company.

If the policy from the other company has more of what you're looking for, it might be the better choice. If you're unsure where to start, try the Life Happens Agent Locator to find an insurance professional in your area."

• "The insurers' track record: At its core, life insurance is protection - a hedge against the unexpected - and you are paying premiums in exchange for the promise that the insurer will be there when you need them, so the financial strength and track record of the company backing your policy is critical.
• Customer service: Are service professionals available by phone and digital channels? Is there is an online dashboard where you can manage your policy? Beyond ensuring assistance is available after you purchase a policy, it's also critical to ensure you have access to trusted advice and guidance before you buy.
• Flexibility in conversion: How easy is it to change? Life can be unpredictable and while term insurance can cover your loved ones through a critical period of time, you may decide that access to cash value is an important piece of your strategy.
• Accelerated online applications : Online applications are convenient but don't replace human guidance. Keep in mind that accelerated online applications may have a maximum coverage amount, meaning that you may not be able to get all the coverage you may need exclusively through an online process.
• A range of payment options: It's important to understand how often you're required to make premium payments and whether and how often you can change the frequency of payments."

Best Life Insurance FAQs

According to JD Power's 2023 life insurance study, State Farm is the highest-rated life insurance company when it comes to overall customer satisfaction. However, you still may want to shop around for quotes from various insurers if you're looking to purchase a new policy.

There isn't one best life insurance company, because the best option for you will depend on the type of policy you're looking for. It's best to work with a qualified insurance agent to help you find the best coverage. If you're deciding between multiple similar options, it's also worth consulting J.D. Power's life insurance customer satisfaction study . The latest study ranks State Farm as the top pick for individual life insurance, outpacing Nationwide by three points.

The best type of life insurance policy for you will differ from someone else's, as your policy should be tailored to your needs. The best policy for you will be affordable and will offer the benefits best suited to your situation. For example, some policies are only meant to cover end-of-life expenses such as burial and funeral arrangements, whereas others include living benefits like a cash value insurance plan , which you can borrow against during your lifetime.

Some life insurance policies are advertised as "no medical exam." This doesn't mean the insurer won't ask you about known conditions or look at medical records. Policies with no medical exam also tend to offer lower benefits with higher premiums. Most companies have a network of medical examiners, some of whom can come to your home. You can find our guide on the best no exam life insurance here.

Each situation is different and requires a knowledgeable life insurance agent to assess your best options. Bring all your questions and the coverage you're looking for to an insurance agent near you to explore your options.

Editorial Note: Any opinions, analyses, reviews, or recommendations expressed in this article are the author’s alone, and have not been reviewed, approved, or otherwise endorsed by any card issuer. Read our editorial standards .

Please note: While the offers mentioned above are accurate at the time of publication, they're subject to change at any time and may have changed, or may no longer be available.

**Enrollment required.

• Main content

An official website of the United States government

Here’s how you know

Official websites use .gov A .gov website belongs to an official government organization in the United States.

Secure .gov websites use HTTPS A lock ( Lock Locked padlock icon ) or https:// means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.

International travel documents for children

See what documents a child needs to travel to or from the U.S. alone or with a parent or relative.

Children traveling to the U.S.

All children, including infants, must have their own travel documents such as a passport or document from a Trusted Traveler Program to enter the U.S. If you travel or are going to travel with a child, consider taking the following documents:

• If the child is traveling with only one of their custodial parents, they must have a letter of consent, preferably in English and notarized, from the other parent or signed by both parents. The letter should say "I acknowledge that my son/daughter is traveling outside the country with [the name of the adult] with my permission."
• If one parent has sole custody of the child, a copy of the custody document can take the place of the other parent's letter.
• Parents who frequently cross the border by land with a minor must always carry a letter of permission from the other parent.

U.S. citizen children traveling abroad

Ports of entry in many countries have security measures to prevent international child abduction . If you are traveling alone with your child, you may be required to present documentation proving you are the parent or legal guardian. You may also need a letter of permission from the other parent for your child to travel. 

If your child travels alone, depending on the country, they may be required to present a notarized letter from both parents or their legal guardian. If a minor is traveling abroad and is not accompanied by both parents or a legal guardian, contact the embassy or consulate of the country you will be visiting and ask about entry and exit requirements for that country.

LAST UPDATED: December 6, 2023

Have a question?

Ask a real person any government-related question for free. They will get you the answer or let you know where to find it.