How to Open a Private Security Company

To prevent property crimes from occuring, some businesses and homeowners hire private security companies to protect them.

With more than 9.8 million property crimes committed in the U.S. in 2007, according to the Federal Bureau of Investigation (FBI), security has become a concern for many businesses and homeowners. While installing a security camera or surveillance system is one solution, some opt to hire a security business. You can cash in on this growing need and learn how to open a private security company.

Instructions

1. Write a business plan. Outline the amount of necessary capital to start and operate as well as a strategy for how to obtain the funding. Address how you plan to market and promote your business and manage it daily. Determine what services you will offer and your rates. For help in drafting your business plan, use the resources available from the website of the U.S. Small Business Administration (SBA).

2. Obtain funding. Review the information on the SBA website to learn if you qualify for low-interest or guaranteed loans. Find out your credit score and determine if you qualify for a business loan from a bank or credit union. Consider taking on a partner who has the capital to pay the start-up and operation costs until your firm can become profitable.

3. Register your business. Contact the state professional licensing department to learn if any special licenses or regulations apply. Complete any paperwork and background checks. Pay your state licensing fee. Obtain a business license from your city or county government while also registering with the federal government. This means obtaining an Employer Identification Number (EIN) from the Internal Revenue Service, whose website lists four ways to apply.

4. Find a facility. Seek a commercial or office location. Search online listings of properties via the website LoopNet, or hire a real estate agent. Ensure sufficient space exists to meet your needs.

5. Promote your business. Network with small business owners at Chamber of Commerce events and other business leader gatherings. Provide free consultations and walkthroughs of businesses to assess security lapses and how you could improve security. Create a special service for homeowners that monitors their property and provides security while they are away. Advertise this service through neighborhood newsletters during peak travel times such as around the holidays and during the summer.

6. Hire staff. Add personnel as events warrant. Consider hiring a receptionist or administrative assistant to handle billing, answering the phone and managing payroll. This will free you for promotion and more meetings with prospective clients. Before extending an offer of employment to anyone, complete a background check. Hiring someone with a criminal history could jeopardize your chances for success.

References

• Federal Bureau of Investigation: Property Crime Statistics

Resources

• U.S. Small Business Administration: Writing a Business Plan
• U.S. Small Business Administration: Small Business Loans
• Internal Revenue Service: Employer Identification Number
• LoopNet: Commercial Property Listings