Running a business is a daunting task. It needs a solid plan, decision ability, and capital management which are the keys to unlocking business success. Furthermore, a security guard is another crucial part of the entire operation. You might have a question in mind about how to start a security company.

Whether it is a bank, a corporate company, or a school, security plays a vital role in every place. For this reason, new aspirants in the business field opt for security companies.

According to the BLS, approximately 1,054,400 security guards were hired in the previous year. As far as revenue is concerned, private security services gained 35 billion dollars.

Are you setting up your own security company? If YES, this blog can be your faithful guide. Here, we will unlock all the crucial steps.

How to Start a Security Company? Let’s Begin the Journey

How to Start a Security Company Let's Begin the Journey

Like any other startup company, a security service business requires robust business planning, investment, and a legal structure. Have a look at these key points to begin a security business.

1. Choose a Security Service to Offer

Always decide on the type of security service you will deliver to your business. This will help you ensure that funds and resources are ready for you. There could be a bad ending if you have no clear vision of the type of service you provide.

The types of professional security services are as follows.

  • Cybersecurity for internet technology security
  • Monitoring services and home security
  • Stationary guard services
  • Crisis management
  • Public space surveillance (CCTV)

2. Formulate a Business Roadmap

You must create a business plan that includes all crucial steps of your business. Every startup is incomplete without a business plan. It is a significant tool for managing risk and following proper decision-making. It contains a detailed description of how your business will achieve success from start to end. This will help to create a fine outlook for your business objectives.

For a security company, it must include the following points

  • Company Overview
  • Customer analysis
  • Competitor analysis
  • Marketing plan with 4Ps – Product, Price, Promotion, and Place
  • Operations plan
  • Management Team Information
  • Financial plan with an income statement, cash flow statement, and balance sheet

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3. Form a Legal Structure

Are you thinking about how to start a private security company? Then, don’t forget to include the legal process in your steps. You must register your company details with a reputed authority. If you fail to do so, you will be unable to accomplish crucial tasks like a bank account, loan application, and hiring staff.

You must choose the legal entity type with which you need to register. While doing the legal process, you must get all the documents ready. It is essential to establish your business layout with a name, tax, and plan. You can opt for a corporation, LLC, or a DBA.

4. Name Your Business

You must choose a business name that helps your business stand out in the market. You can use any name, but a personal name could be unprofessional. Instead, you can use words like national or international to incorporate professionalism. It is recommended to use actual government regions because it is illegal.

Your business name should present your business well. Also, the business name should be simple to pronounce and easy to remember for your clients.

The business name should be unrepeatable and not close to your competitors. Words like services, solutions, and consultants are an extra point to note.

Some examples of security company names are listed below

  • Secure America Solutions
  • Liberty Security Solutions

5. Tax Registration

You must register for various state and federal taxes before you open a security guard company. Here, it is mandatory to apply for an EIN (Employee Identification Number). It helps the revenue department to easily track your company. Hence, there is an accurate tax process.

You must contact your accountant or attorney in case you are unsure which state or federal taxes you are liable for.

6. Licensing

The licenses you need can vary according to your location. You must retain basic knowledge of the security industry. You should prove that you have the talent and skills to convey the best security services. For a security business, the following licenses are needed.

Private Patrol Operator License

There is a need for proof to justify your skills for a security guard company. Also, you should have at least 4 years’ experience as a security guard. The license cost will range from $100 to $300 according to the company’s legal points.

Security Guard License

Security guard licenses are proof of a person’s skills to perform security guard duties and responsibilities. For instance, candidates get training to boost their skills from the California Bureau of Security. The process fee is $50 to apply for this kind of license.

Qualified Manager License

This is another license important in a security company. It is essential to note that a qualified person with security manager experience operates your company. The manager should possess two years’ experience consecutively. The application fee of $37 is applicative to apply for this license.

7. Business Insurance

Opting for Insurance is another crucial aspect of the security guard business. There are two types of insurance for a security guard company.

  1. Liability insurance that protects you when your client falls into a mishap.
  2. Bonding insurance when your employee steals your client’s property.

While deciding on an insurance type, you must know your niche. It is also beneficial to compare your insurance plans and consult an insurance broker.

8. Business Bank Account & Credit Card

Open a business bank account for your security company. It helps smooth business transactions and keeps your capital safe. Furthermore, it enhances security measures like multi-factor authentication and encryption.

Also, professionals need to apply for a credit card. This will enhance easy payment and cash flow. It is also applicable to accessing capital and resources easily.

However, you must have all the documents clear and ready for opening a bank account and credit card.

Documents required for bank account opening

  • Employer Identification Number (EIN)
  • Documents of business formation
  • Business License
  • Ownership agreement

Documents to apply credit card

  • Name of the business
  • Address and contact information
  • Annual business revenue
  • Business introduction or description
  • Employer Identification Number (EIN)
  • Estimate of monthly spending

9. Business Logo

A business logo is as valuable as a business name. It is because it helps in branding your business. The private security business logo should be close to your business niche. The logo should be memorable.

Along with relevancy, the logo should be simple and sober. It should be in such a design that it looks professional and catchy while advertising. For this, you can do competitor research and use logo design software.

10. Use Proper Invoicing Software

Use Proper Invoicing Software

A proper invoicing process is crucial to smoothening your business. It builds trust among your customers. However, the traditional method of creating an invoice can be the wrong option to choose. Proper invoicing software is a boon to ensuring a proper invoicing process.

Moon Invoice is the perfect platform that provides numerous invoice templates. It speeds up the invoicing procedure with already-made templates for every business size. With the top invoicing software, it is easy to generate bulk invoices with the correct data and calculations. Find the right security invoice template to quicken your payment. Simplify the invoicing with Moon Invoice.

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11. Cost of Equipment

There are types of equipment that are important to consider when finding the answer to how to start a security company. Some of them are as follows.


The most essential part of a security guard is a flashlight. It is helpful for security guard professionals who perform night duty.


It is essential to define a dress code for security guards. The color of the uniform or jacket will be as per the location. The security guard should wear steel-toe cap boots.


Two-way radios are essential if your employee works in a large area. Digitized communication is more efficient.

Defense Gear

It is a good idea to provide a weapon for your security guards for their self-defense. You can give pepper spray, guns, and batons to your security guards. However, you must check your state’s rules before providing defense gear.

12. Hire Required Employees

It’s time to enhance your workforce in business. After covering all the essential steps like business plan development, selecting a business niche, and legal activities, it is now time to hire employees. The core thing to note here is to hire a knowledgeable employee along with soft skills. This will enhance your company’s customer relationship. It is because a soft-skilled security guard knows how to deal with customers in the right way.

The other crucial point to note is checking the candidate’s background. The deserving candidate should have no crime record in the past. The candidate should know basic ethics when working as a security guard.

13. Investment to Start a Security Guard Company

You are about to initiate a security service business, so capital management is a crucial task in your professional journey. There are investment needs like purchasing equipment or operating expenses. You must have clear investment undertakings for your business.

14. Business Website Development

A website is a way to showcase your business worldwide. It will help you in acquiring leads while providing a way to connect your customers with you. With a website, a user could gain entire information about your business providing security services. If you have your own security business, a website is a must. It is a great platform to let your clients discover everything about your business. The typical things to include on a website are specified as below.

  • The home page is where the user will land
  • About Us page that includes all information about the company
  • Service page that will define the types of services your company
  • Contact Us page with email ID and contact number
  • Google Maps to navigate your users to your office
  • Privacy policy
  • Terms and conditions
  • Social media buttons connected to the account links

The website should be highly user-friendly with easy navigation. You must have high-quality graphics with a professional focus. Also, it should be mobile-friendly with a high loading speed.

How Much Does it Cost to Start a Security Company?

How Much Does it Cost to Start a Security Company

Do you discuss with your close ones about how to start a security company? Then you must also think about its investment. Purchasing equipment, employees’ salaries, and operating costs are certain activities where investment is applicable. The estimated investment cost of this business is between $10K and $50K USD.

Capital investments are of two types in a business.
Start-up costs – These investments apply to business establishments. Hiring personnel and purchasing equipment come under start-up costs.

Ongoing operating costs – These types of expenses are operating costs. It includes insurance, rent, and payroll operations.

Moreover, the different investments are pointed below.

  • Around $6000 for 6 months of insurance for security guard insurance
  • The investment in legal, regulatory, and compliance can be around $500.
  • Uniforms and equipment are around $100 each.
  • Expenditure on marketing like building and running a website, can be an annual charge of $100. It could be even more when hiring professionals to manage the website.
  • The cost of buying management software for a digital security guard is $29 per month.

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Initiating a private security business can be a successful journey but with dedication and proper planning. Along with this, managing your finances is another crucial thing to include. Also, you should follow an automated operation wherever possible to avail maximum profit.

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