Do you want to start a private company of armed security guards? If yes, here is a comprehensive guide to starting a moneyless and inexperienced private armed security guard business .
Okay, so we provide you with an in-depth sample private armed security guard business plan template. We also took it further by analyzing and writing a sample private armed security guard service marketing plan supported by actionable guerilla marketing ideas for private armed security guard companies. In this article, we will consider all the requirements for starting a private armed security guard business. So put on your entrepreneur hat and let’s proceed.
Although the government of the United States of America provides public safety services to its citizens for free, many citizens find it difficult to fully trust them due to the ratio of Citizen Security Officers are really low and this has reduced its efficiency rate.
The US is a country with a high crime rate, so the need for security services for homeowners, entrepreneurs, and public figures in the country cannot be neglected. It is now safer for most people to hire private security firms that are mostly owned and operated by retired government security services personnel, to provide the necessary security services for them.
How To Start A Private Armed Security Guard Company A Complete Guide
- Industry overview
According to a recent research report from ASIS and the Financial Management Institute, the United States’ private security industry is a $ 350 million country. dollar market industry with a growth rate of about 2.4% each year. This growth rate is expected to last for the next 10-15 years.
There are about 90,000 private security organizations in the United States, and the industry employs more than one million American men and women. This employment growth rate is expected to continue to grow in response to increased demand for private security services, which is currently growing at a rate of 5% per year.
US Private Armed Security Industry Facts and Figures
- The United States is the largest user of private security services in the world.
- Some of the largest private armed security companies in the world are based in the United States of America.
- Private armed security guards can earn up to $ 600 per day.
- G4S, a private security company, is the largest employer of the workforce in the world after Walmart.
- In 2016, revenue in the US private security industry exceeded $ 68 billion.
The private armed security industry is growing with new companies formed each year to ensure better service delivery. The industry cannot be classified as oversaturated because there are many niches in the industry that have not yet been fully exploited; then, as a new investor, you would have no problem finding the right clients for your business.
Why You Should Start a Private Armed Security Business in the United States
The demand for private armed security services has continued to increase over the years, making the business very viable.Security is very important to the citizens of the country and they would spare no cost to hire the right kind of security officers to protect their homes and businesses.
With the increasing crime rate in the country, the future outlook for this nature of business is nothing but bright.
Start a Private Armed Security Guard Company Market Feasibility Research
- Demographics and psychographics
It is important to understand the demographic and psychographic makeup of the industry before establishing your own private armed security company.
According to an investigative report from the United States Department of Justice, consumers of private armed security services include shipping companies, oil companies, celebrities, governmental / non-governmental organizations, international organizations, local businesses, and homeowners.
Around 50% of people who hire private security services do so for commercial protection, the other 50% do so for personal protection.
List of Niche Ideas Within the United States Private Armed Security Services Industry
There are some niches that you can specialize in the industry, some of them include:
- Business security services
- Event security
- Security patrol services
- Vehicle surveillance services
- Bodyguard services
- Video surveillance surveillance services
- Accompanying services
- Services for combatants
- Arms trade
- Technical and training services
- Advisory and consulting services
- Aviation related services
- Residential services
The level of competition in the private armed security services industry
The level of competition in the private armed security services industry is quite high, however, in recent times; the industry has had to deal with heavy competition from the alarm monitoring subsector of the private armed security industry.
The demand for alarm monitoring is on the rise and is expected to double through 2021. This means that more home and business owners would opt for alarm monitoring over private security services.
However, the good news is that even with alarm monitoring, you still need to hire security services to respond to alarms and prevent intrusions. This means that both subsectors can hardly exist independently.
List of 20 well-known brands in the private armed security industry
There are many players in the private armed security industry, some of the most popular include:
- Allied barton
- Blackwater Corporation
- CEO Group
- Tyco International
- Risk control
- Executive Results
- Military Professional Resources Inc. (MPRI))
- Olive group
- Triple Canopy
- Sandline International
- Northrop Grumman
It is also imperative to conduct an economic analysis of the private armed security industry before setting up a store. Economic analysis reports in the industry revealed that the increase in industry growth started around 2004 and forecasts show that growth is expected to continue until 2024.
The non-residential sector of the market accounts for the vast majority of revenue in the industry. It is expected that as the economy continues to grow and more businesses are created, the industry will grow in direct response. Security consulting and systems integration are also expected to see rapid growth and profits through 2024.
The residential market subsector is expected to be dominated by Personal Emergency Response Alarm Monitoring Systems between 2014 and 2021.
Buying a franchise vs. starting a private armed security business from scratch
There are several established private armed security companies offering franchise opportunities to new investors. Of course, this gives you a greater chance of being successful in business because there is an established and proven business formula that you can take advantage of.
Franchises are also considered lower risk businesses by investors. Buying an existing franchise or private security guard company would also allow you to take advantage of the established credibility, positive reviews, and goodwill the company already enjoys.
You will also be relieved of the stress of training your employees when you buy a franchise.
However, the franchised private armed security company may charge you a lot of money before you agree to a contract. Plus, it would take away your creative freedom, so it’s important to keep them in mind when deciding whether to start your private company of armed security guards from scratch or just buy a franchise.
Possible Threats and Challenges of Starting a Private Armed Security Services Business
The first challenge you may face in this business is finding the right employees for your business.Most armed security service employees are ex-military or police officers and there has been an increase in reported cases of rogues being fired from public service , who were targeting private security companies to offer their services. You should have a solid plan to conduct background checks on potential employees to avoid employing bad guys in your organization.
Another challenge you may face is obtaining a license for the business with Facilitate. The United States government considers this nature of business to be very serious and would not offer licenses to just anyone. Many security checks, background checks, and personality assessments would have to take place before you can be offered a license to start a private armed security company.
Obtaining the necessary equipment for the business is another challenge. Not only would you need a large amount of funds to purchase equipment, you would also need many permits and licenses to handle certain types of security devices, especially firearms.
Starting a company of private armed security guards Legal requirements
The best legal entity to use in a private armed security business
The best legal entity to use for this nature of business is the limited liability company (LLC).
The private armed security services business is very risky and your clients and employees can sue you for damages and negligence at any time. The best way to protect yourself and your business is to establish the business as a limited liability company so that only the assets of the company can be used to offset the liabilities.
There are two types of limited liability companies in the United States-S-corp and C-corp. S-Corp refers to S-corporations, while C-Corp is an acronym for C-Corporations.
The main difference between the two forms of business is that C-Corporations pay taxes twice on their net income and also on dividends. distributions to shareholders, while S corporations only pay taxes on distributions to shareholders. It is very important to contact your accountant and legal advisor for professional advice on how best to structure your business so that you can avoid excessive tax liabilities.
Insurance policy requirements to start a private armed security company
Regardless of the size of your business, it is very important to purchase the necessary insurance policies to protect yourself, your employees and your business.Some of the insurance policies that you would need to obtain for the business include:
- General liability insurance
- Professional liability insurance
- Workers compensation
- Car insurance
- Property insurance
- Product / Operations completed
- Personal Injury / Advertising Injury Insurance
- Legal liability for fire damage
- Extended bodily injury insurance
- Assault and battery
- Errors and omissions
- Medical payment
Intellectual property registration and professional licenses
You should apply for IP protection for some unique aspects of your business, such as your business uniforms, company logo, and any other unique ideas that you have introduced into the business.
Regarding professional licenses, in addition to a business license, your employees would be required to present and pass a private military contractor exam that qualifies them to offer services as private armed security personnel.
Legal documents required to run a private armed security business
The legal requirements to start a private armed security business in the United States vary from state to state; however, some of the more common requirements include:
- Background Checks : Business owners and managers would have to go through a background check to determine if there is any criminal record. Some states like Texas would refuse to license people who have served felony sentences in the past five years.
- Security Guard License : Some states like Texas and Washington also require managers of private armed security companies to have a valid security guard license.
- Ownership Disclosure – Before a business license can be granted, you must file a full business ownership disclosure with the state licensing board.
- Firearms Licenses and Permits : Since you would be running a business where firearms would be used, you would need to ensure that all of your employees have the necessary licenses and permits that allow them to carry weapons and other weapons.
- Services contract
- Business registration documents
- Business plan
- Insurance policy documents
- Employee contracts
- Operating agreement
- Tax compliance documents
Financing your private armed security business in the United States
It would take between $ 200,000 and $ 500,000 to establish a private armed security company in the United States. This is a large financial commitment that you may not be able to pay for yourself. You can explore any of the following financing options if you cannot finance the business on your own:
- Partnership – One of the best ways to finance your business is to find a partner who would be interested in committing some funds to the business in exchange for equity in the business. This would help you avoid paying huge interest rates on loans.
- Use your credit card : If you have a credit card, you can use it to buy some of the equipment you would use. they need to run the business.
- Bank and credit union loans : Credit unions generally offer loans to their members at very low interest rates. You may consider becoming a member of one or you may consider borrowing from your bank if you have good credit with them.
- Home Equity Financing : Another financing option you may consider is Home Equity Line of Credit Financing (HELOC), a program that allows you to obtain loans using your home as collateral.
- Equipment Financing : For equipment such as surveillance vehicles and other security devices, you can look for equipment financing companies that offer you credit facilities so that you can spread payments over a long period of time. time frame.
Choosing the perfect location for your private company of armed security guards
There are many factors to consider before choosing a location for your business. The zoning law is first on the list because many neighborhoods would not allow you to locate a security company in your neighborhood. So the first thing to do is check and make sure there are no such restrictions in your preferred location.
You would also need a location with plenty of space for regular workouts and physical exercises for your employees. . A shooting range may also be necessary as your employees would carry guns and ammunition.
Proximity to potential customers is another important factor to consider because your employees may need to commute between your office and their service stations, so make sure your office is not too far from your area’s central business district.
Starting a Private Armed Security Guard Company Technical and Manpower Requirements
The technical requirements for starting a private armed security guard business in the United States depend on the niche you choose. However, some basic things that you would need for the business include:
- Office team
- Bulletproof vests
- High Visibility Clothing
- Defense equipment such as pepper spray, batons, and guns
- Digital cameras
- Alarm systems
- Surveillance equipment
- Communication gadgets like two-way radios
- Mobile phones
- Heavy Duty Seat Belts
- NFC Tags
- Patrol vehicles
- Guard dogs
- First aid kits
In terms of manpower requirements, you would need:
- Authorized and trained security guards
- Patrol Vans and Surveillance Vehicle Drivers
- IT staff
- Reception officers
- Dispatch officers
- Human resources manager
- Training trainers or consultants
- Security manager
- Legal advisers
- First aid officers
You don’t necessarily have to hire too many staff to get started. You can start with 5 security guards and then as your business expands you can start hiring more people. You may also consider outsourcing some of the administrative and accounting services until you can afford to hire your own staff.
Start a marketing plan for a company of private armed security guards
Marketing is vital. of your security business, but sometimes it’s challenging because unlike other types of businesses, you can’t sit back and wait for your customers to find you. You would have to search for your clients most of the time.
Some effective marketing ideas you can employ for your business include:
- Hire a Marketing Firm or Consultant – Most private security guard companies rely on the services of marketing experts for guidance on the most effective ways to market their business. A professional marketing company would cost you a lot of money, but they have the experience you need to catapult your business to the forefront, especially in the early stages of the business.
- Direct mail and cold pitch : Through the help of digital marketing, you can easily get details of customers who may be interested in your services and speak cold to them by sending cover letters and regular correspondence about your business.
- Social Media Marketing and Search Engine Optimization – Building pages for your business on social media can also help you reach millions of potential customers on social media. You may also consider paying for ads on social media, especially in Facebook as it helps you target customers that fit your specific demographics.
You would also need to create a search engine optimized website for your business to help more clients get to know your business and easily hire you.
- Hire a Marketing Officer : A marketing officer can help you get clients for your business faster because they can meet and talk with potential clients, trying to understand what their needs are, and then offer them the best price and package that meets their needs.
- Brand Your Business – You must use effective branding strategies for your business. You would have to have a unique uniform for your employees, as an attractive uniform can attract customers to your business. You also need to ensure that your commercial vehicles are branded and easy to differentiate from the competition.
- Price Matching : It also helps to be flexible and competitive with your prices to make them attractive to potential customers.
An important key to success in the private armed security services business is the proper training of your employees. Your employees have to learn to temper excesses, behave in the right manner at all times, and pursue the best interests of their customers and the public at all times.Having well-educated and well-trained employees would give your business the correct public image it needs. to position your business at the forefront of the industry.