Starting a Security Services Business
Secure your livelihood in this industry that has few barriers to entry
By Geoff Kohl, Editor-in-Chief SecurityInfoWatch.com
Ever wanted to own your own business? Security guard and patrol services businesses are an increasingly popular choice among start-up entrepreneurs, especially since 9/11 renewed concerns about safety and security. Getting started is relatively simple—you’ll need some licenses and general business acumen, but beyond that, you need only the business skills you’d need in any business—organization, a good work ethic, and the ability to communicate well with clients. Of course, it’s a good idea to have some sort of security background, whether it’s private security, law enforcement, or military. Not only are these credentials that prove your value, but these kinds of backgrounds mean you already understand some of the tools of the trade, including threat assessments, verbal de-escalation, investigations, and physical protection. A security services business can take on many forms, including:
- A guard-staffing firm that places security officers at predetermined locations, such as a guard shack, a corporate lobby, or a surveillance video-monitoring center.
- A patrol services model where you put your officers in vehicles to patrol a wide corporate campus, a major retailer, or a number of businesses or residences.
- Executive protection, such as “bodyguard” services and event security.
- A mix of these types of services, though this tends to happen as security services companies mature and spread into different markets.
Find your employees
The thing about manned security is that it requires people to be present. You need enough employees to cover for sick employees, too. If Officer Jones can’t report for duty, that guard position can’t just go empty like a desk in an office. Hire as you land the business to keep initial costs low.
Try: Advertise to your local police department that you’re hiring. Officer.com has a good jobs board for police officers if you want to expand your horizons or if you’re in a town too big to know the local police personally. Keep in mind that some departments have rules on private security jobs for fully sworn police officers. You may also consider going through a national jobs site like CareerBuilder.com or Monster.com. My own site, SecurityInfoWatch.com has a Guard Services forum that includes a free job board as well. Bodyguardcareers.com is a great place to advertise executive protection types of jobs.
Screen your employees
It wouldn’t be good if the guards themselves were committing the incidents your officers are supposed to prevent. So you need to vet your employees. No drugs. No alcohol use on shift. No felonies. Define which misdemeanors you’d allow for potential hires. Then hire a background screening company to do the work for you.
Try: First Advantage is a company that can do your screening for you – background, fingerprints, driving records, physical fitness, and so on. Verifications Inc., ChoicePoint, TrueScreen or PreScreen America also can help you in this process.
Research what licenses you need
Security companies typically have to hold a state license. Usually it’s solely the state license that is required, but check with your local government to see if there are municipal requirements as well. Sometimes only the business itself may need the license, and other times each of your employees may need a security license.
Try: Every state is different, but I really like the website the State of Texas has put together on this topic. It’s clear and offers everything linked from a single page. I can’t guide you to every state, but here’s what California requires of guards before they get a license: 18 years of age, 40 hours training, fingerprints, background check, and license fee. There are additional licenses you’ll need if your guards will be carrying a weapon. These differ from state to state.
Create an operational policy
Despite common depictions of security guards as lazy (there is a lot of boredom in some positions), security services is serious business and creates issues of liability that you, as an owner, will have to examine.
Try: Don’t go through this process alone. A few hours with a consultant like Dickinson & Associates or Hamilton Consulting Services should help get you on the right track and can recommend how to navigate the process, what to put in your business plan as you seek investors, and even now to obtain licenses and handle background processes. A good consultant should also be able to help put together an officer manual and a training program.
Find insurance
Security companies need to carry insurance to protect themselves from liabilities. It’s required by most states, whether they enforce it closely or not.
Try: Consider partnering with an insurance company that has direct experience in the industry so they understand the risks and pricing that guard companies are commonly offered. El Dorado Insurance Agency is one such company. Brownyard Programs Ltd. also offers insurance specialized for security and investigation companies. National-level companies also are adept at writing small business policies; The Hartford Group is one such insurance provider. However, security business liability is most often considered “specialty coverage”, so you may not be able to go with traditional providers.
Suit Up
A professional security company will put its guards in professional outfits. Sometimes officers have to pay for their own uniforms and duty belts; sometimes these costs are covered by the employer.
Try: UniformsWarehouse.com is a full-service e-shop for guard services equipment and uniforms. Quartermaster is another such provider of uniforms and duty belt equipment for security officers, police, and other such public safety positions. You can turn to a company like Aramark for uniform rentals and leasing if needed.
Create your business contracts
This is another area where that consultant could help you out, or you may have generic contracts as models from previous security work you’ve done.
Try: Hire a lawyer to review your contracts, but you can find some example contracts online. Here’s a safe downloadable example of a contract between a security company and a college fraternity for security. Envision SBS’s Business-in-a-Box document compilation includes a number of standards contracts that small businesses may need. ASIS sells a helpful kit of information and contracts you’ll need for working with private security guards.
Do the training
The last thing you want is for your business to get out of control and become a bunch of cowboys running around with badges. Put in the time for the training.
Try: Ralph Brislin’s Effective Security Officer’s Training Manual is worth the money. Consider looking for applicants out of a criminal justice program. The Protection Officer Training Manual can be picked up at Amazon and has received solid reviews from industry magazines.
- Weapons, cuffs and batons are an entire topic in themselves. Most security companies start up as unarmed because it drops the employee costs as well as insurance costs and gear costs. Many security positions do not require more than “observation and reporting” – meaning that the guards call sworn police officers for assistance. At the very least, going unarmed saves you some costs and you can add those services once you get some clients to give your business a steady base.
- Focus on training. Often the difference between retaining a client and losing one is how well you and your officers are trained. Devote the hours; this also translates directly into liability issues for your business.
