There are over 3,500 security companies in the US.
A profession in security is a great option for those who are looking to work more flexible hours, but are open to working odd hours.
If you have a special interest in home security, and a great way with people, a security company may be the perfect business for you.
Most of your days will be spent monitoring accounts, installing new systems for clients, and handling incoming service calls. While it is a personal business, it will require some technical expertise in your field.
Starting up a security company requires high ethical standards. You will also need to obtain the right licensing, as the business is involved in protecting that is most precious to people.
Here are some thoughts on where to begin.
1. To Franchise Or Not To Franchise
Starting a security business that is part of a franchise has its advantages. You will have access to a business structure and marketing model. It can introduce you to products and services and help you become an expert on the services you will provide.
A franchise will, however, dictate the minimum and maximum wages you can charge for your services.
An independent security company, by contrast, can charge whatever it wishes. You may want to choose a special area for your business, such as door alarms for the elderly or cybersecurity. This may help you to outshine the competition in your niche.
2. Get The Right Licensing
Many states require licensing, a minimum age, background checks, and fingerprinting. Nineteen states, however, are exempt from this requirement, so it is important to check on your own state regulations first. Some other states have additional security requirements.
Your state may also require you to obtain a surety bond from an insurance company. It is a good idea to get general liability coverage.
A bonding company will perform a thorough verification of the security company. If the home security system fails to function, a homeowner may file a claim with the bond company.
You will probably also have to obtain a tax ID number, get an employer ID number from the IRS, and get a certification test. If licensing and certification are not required by your state, you may want to get it anyway in order to strengthen your company’s reputation.
3. Do Your Homework
Research your competition and find out their locations. If there is another home security company in your town, for example, what services do they offer? Could you offer a specialty that they would be unable to provide?
Now is also a good time to research your franchise. Look at their track record and try to figure out what training and other resources are offered.
Be sure to discuss terms and fees with your potential franchisors. They will likely be able to help you find the right insurance and prospective employees.
4. Choose A Location
You will want to consider your competition when choosing a location for your business. Thank about demographics, visibility, and location. You should consider whether renting or buying is better for the long-term health of your company.
If you have a place to store your supplies, a security company can be run from a home office. On average, the cost to start up a home security company is around $20,000.
5. Create A Business Plan
You will need to figure out how you are going to secure the funds to begin your business. Common sources are small business loans and 401k rollovers. Some security companies offer in-house funding, with excellent repayment and competitive rates.
You will need to present a detailed plan for your lender. It will improve your credibility and increase your chances of obtaining funding.
You should also determine how you will process payments. If you will allow credit cards, you may wish to consider automating payments from your top clients. You may also want to invest in an automated accounting program.
6. Search For Employees
Look for employees by taking out ads online. Some may have experience and expertise in installing and repairing security systems. Others may need training.
Be sure that you have a streamlined process for finding employees. It may need to be documented. If training is required, make sure that you have the required videos and documents ready for employees to read.
7. Search For Customers
You may wish to design an implement a web optimization strategy or find a service that can do this for you. You will want to attract customers who are searching for the kinds of products and services you offer.
If you are a franchise, your franchisor should be able to supply you with a basic marketing strategy and advertising opportunities.
Your main target should be upper-middle-class families with kids. Those in poor neighborhoods need security systems but may be less likely to purchase them.
Consider word-of-mouth and social media as ways to reach your immediate circle in search of clients. Post great reviews by customers, and any mention you might get from other businesses.
Those who provide services to new homeowners, such as real estate agents or contractors, are good people to make friends with. They can recommend your business when folks move and are looking to secure their homes.
Your Security Company
Starting a security company can be a great way to make a living. It is a flexible, solid source of income that provides families with a service they will always deem necessary.
For more information on local businesses, check out some of our other blog posts.