The Security Guard Business From A To Z

With a changing world and changing government policies, there’s never been a better time to launch a security guard business. Whether you’re looking to pick up contracts for your guards to work with retail companies, manufacturing, or even the government, the opportunities are ripe and ready for picking.

Obtaining knowledge of how to start and manage an effective and efficient operation is often just out of one’s comfort zone. It’s especially true if you’ve never managed or run a labor-intensive operation before. That’s why we’ve put together this comprehensive guide to get you and your dream on the right track. In this resource, we’ll cover the following:

  1. What Is A Security Guard Firm?
  2. How To Start A Security Guard Business
  3. Managing A Security Guard Business Effectively
  4. Marketing A Security Guard Business For Success
  5. Providing Value To Your Clients
  6. Leveraging Technology In Your Daily Operations
  7. Security Guard Safety

If you’re already running a security firm, skip the next couple of sections. Otherwise, just keep reading to get started from scratch. But make sure you bookmark this resource, because you’ll likely want to come back to ensure your operating decisions are on point. Let’s dive in.

What Is A Security Guard Firm?

Depending on your specific industry experience, a security firm may have different definitions. You might define it as digital security, like the kind you’d use on your computer. Or cybersecurity, which many a corporation regularly contends with. Or you may think of security guard firms that employ real-life guards. But what exactly is a security guard firm?

A security guard firm, according to Wikipedia, is a private company that provides armed and unarmed security services to private- and public-sector clients. It might include providing bodyguards to celebrities or government officials. Or perhaps the company will provide security officers to bars or event managers for events like concerts. And during pandemics, retailers may hire guards to enforce new laws addressing mask use or limiting building occupancy.

No matter the type of contracts, a security guard firm essentially serves one purpose: to provide security personnel to assist with security at a physical location. And if you have a background in law enforcement, you’re already aware of many things required for security firms to know, giving you a noticeable advantage.

How To Start A Security Guard Business

Starting a security guard business during these times of change is an excellent idea. With so many businesses clamoring for security to help maintain order, there has never been a better time to profit from the changing economy. The question is, how do you start a business like security? Well, we’ve got some great tips, pointers, and solutions to help you on your entrepreneurial journey.

The following steps are recommended for any new business, not just security. However, this list is critical to follow for the security firm owner who wishes to hire guards and enter the business as a guarding security agency. When starting a security guard business, there are five primary considerations:

  1. Research and Planning
  2. Training, Licensing, and Permits
  3. Insurance, P.O.S., and Banking
  4. Equipment, Labor, and Office
  5. Hire, Train, and Market

Research and Planning

You’ve made it to this page, so research is already a part of your plan. It is essential for a successful entrepreneur or manager to learn as much as possible about the industry before committing income or time to a new business.

You may have heard the saying, ‘He with the best paperwork wins.’ This saying is true for many things, and in the case of launching or managing a successful security guard agency, it couldn’t be more accurate.

Planning a business before launch is vital for your success. Research your target clients. Understand their needs and the value you want your company to provide.

Make a solid business plan. A part of your planning must involve finding answers for many aspects of your business. From how you will find clients to how you will receive payment, there are a multitude of things that you must determine before launch.

One of the most vital components of the planning process is figuring out which business form your business will take. Most security companies are formed as either an L.L.C. or a Corporation. A security company is rarely a sole proprietorship. Keep in mind that there are benefits to every form of business, but, given the nature of security work, limiting liability is always a wise decision.

Training, Licensing, and Permits

Many regions across North America, whether it’s a Canadian province or a U.S. state, require unique licensing for security companies and for security officers individually. For example, in Texas, a security officer must complete 30 hours of training, undergo an FBI background check, pass a drug screening, and meet other requirements to qualify for a security guard license. (source)

In Ontario, the requirements are similar to those in Texas. The applicant must be 18 years of age, pass a criminal record check, complete 40 hours of training, and meet various other requirements. (source)

As a new owner of a security guard agency, you will need to obtain a special license to operate it. There will be several specific requirements that may or may not include:

  • Clean criminal record
  • Minimum 1-million liability insurance

The requirements to get licensed are different from province to province and from state to state, so a part of the ongoing research is to determine what requirements must be met where you intend to operate your business.

It isn’t just the guards who must face legal ‘red tape.’ The business will require registration, and possible licensing or permits may be required. You will want to consider the form of your business. Will you form an L.L.C. or a Corporation? And lastly, will you require any special permits for your place of business? If your guards carry guns, your company might need special permits or licensing to facilitate gun control and management. 

Insurance, P.O.S., and Banking

There are some other vital points to ponder when delving further into your business setup. For example, your agency will require insurance. In an industry like security, there is a high chance that your officers will face impending danger or even physical harm at some point. And your company needs to be ready for it. From having an incident reporting process in place to having your insurance in order, liability needs to be addressed.

The next consideration is that you will need to collect payment from your clients. If you were selling products in a store, you would have a P.O.S. (point of sale) system to collect payment. Most security companies do not require a P.O.S., per se, but instead, often collect via cheque. However, in today’s changing economy, you may need to receive payment via credit card or even cryptocurrency, depending on your clientele. A payment gateway will likely be required.

Now that we’ve discussed paying for insurance and receiving payment from clients, the infamous banking stage becomes relevant. Your business will require a business bank account. A copy of your Master Business License, personal identification, and even a sworn statement on company letterhead stating your ability to act on behalf of the Corporation or L.L.C. will typically be required for bank account setup.

Don’t forget to register your business with your local tax service, either. You’ll have payroll taxes, tax to remit on services, or other taxes to pay, depending on your state or province. It’s not exactly banking, but it’s just as essential to make sure it’s set up correctly.

Location, Equipment, and Office

Now that most of the formal paperwork is out of the way, there are more considerations, and this section is all about the physical ones. Security guard companies that have staff require a physical location. The nature of the business and the model you follow will determine the size and type of location required. For example, if your company plans to operate a fleet of security vehicles, you may need a specific parking area.

Considering your business’s location is also essential. You will need to weigh the costs of leasing versus the distance to your target client’s facilities. It doesn’t make much sense if your officers have to pick up their vehicles at your office and drive for an hour to reach a client’s site. The high cost of labor (not to mention gas and vehicle wear and tear) won’t help your bottom line.

If we’re going to discuss fleet costs, let’s talk more about the equipment. Not only will you potentially require purchasing vehicles, but there are many other expenses that you will also need to consider, such as:

  • Office equipment
  • Phones
  • Radios
  • Uniforms
  • Vehicles
  • Personal protective equipment
  • Bodycams

You’ll also need to consider how your officers will file their daily reports. Will you provide paper pads and physical reports for your staff, or choose an efficient digital reporting solution?

Labor, Training, and Marketing

Lastly, the staff needs to be hired and trained. Assuming your agency operates in a state or province that requires security officers to hold a government-issued license, you may or may not want to offer paid training. It will likely be determined more by the available workforce in your region than anything else. 

Training within the confines of your specific business model will inevitably be one of the primary requirements of your time. New staff need to learn how your company operates. So, you will need to create procedures for each position within the company. Depending on your business model’s structure, this might take up a significant portion of your time in the early stages of your security agency’s existence.

Once you have your staff in place and trained, the only real thing left to do is make sure there’s work for everyone. And therefore, marketing and sales are the last primary components you need to address. 

Now you also should consider that marketing and sales are, by no means, the last thing you need to do to start and operate a security guard firm. Often, small companies start humbly, and one of, if not the first, things they do is take on a client who wants to pay them for their services. Without clients, you only have an idea, so marketing and sales are vital parts of the equation.

Try the 1st Reporting application with your security teams.

Managing A Security Guard Business Effectively

Any type of business requires organized, efficient management to be successful. A strong and effective leader who manages with a firm yet fair management style can effectively move a company from humble beginnings to a vast enterprise operating like a well-oiled machine.

Each aspect of your security operation must have processes and procedures in place. It is no small feat to create a health and safety manual, especially when security officers may face a range of situations. However, a well-prepared business is one that faces challenges head-on.

However, there’s so much more to operating a business than having a comprehensive health and safety manual. As mentioned earlier, each position within the company ought to have a procedures manual that outlines the day-to-day activities, duties, and role of the position.

While efficiency and procedures are paramount, business owners and managers must view their operations as a chain. Each link connects to the two links beside it in an interconnecting pathway. If one link is weak, the entire chain breaks down.

Andrew Grove, former Chairman and C.E.O. of Intel, said it best by describing the process of managing a company as viewing it from inside a little box at each stage of its processes. When you step back from the process and look at any particular stage as though it were alone within the black box, with the rest of the process invisible behind the box’s wall, you can see how that ‘section of chain’ operates.

Identifying weaknesses in the process through analysis will allow you to adjust your company’s procedures to create a more profitable scenario.

One way security companies are effectively managing their businesses is by using new technologies. For example, in the past, security guards used pen and paper to fill out daily shift reports, incident reports, and other reports (as the situation warranted). 

This inefficient way of doing ‘paperwork’ used a great deal of time. Reports take time to fill out and then more time to file, thereby being a major cause of labor expense for security firms. Utilizing a digital reporting solution is one way many security companies are gaining an edge over their old-fashioned competitors.

More Security Resources

Marketing A Security Guard Business For Success

Setting up ads or marketing campaigns for your security guard business is no simple task. Yet, it doesn’t have to be a colossal deal-breaker either. The first thing you need to do is to identify your target market. To achieve this, you’ll need to understand the types of clients and their needs. Let’s start with the types of clients.

Types Of Clients

A savvy business owner is one who finds opportunities where others don’t. So, to give you a light in the proverbial darkness, we’ve identified some great opportunities for security guard firms. Take a look at the list below, which details some of the types of clients you may be interested in pursuing for contracts. Remember, this list is not exhaustive; you will likely find even more opportunities when you put your mind to it.

  • Insurance required
  • Legally required
  • Retail establishments
  • Event planners and facilities
  • Construction sites
  • Property management
  • Government facilities

Insurance Required

Most States and Provinces have specific laws regarding security requirements. Think of high-end jewelry stores, automotive dealerships, or even manufacturers in the aerospace or tech industries as a few examples. Often, insurance companies that cover large-ticket items for a retailer or manufacturer include a clause in the insurance contract requiring paid third-party security.

Legally Required

Legally required security contracts are, like insurance, the bread and butter of many security guard firms. These clients have no choice but to hire security firms due to legal requirements.

Retail Establishments

Many retail establishments hire security officers. They might be insurance required or legally required. They may also merely be trying to achieve better loss prevention or alleviate the staff from dealing with specific situations. Consider an established business that needs to mandate a new policy, such as requiring masks or limiting the number of clients in the building.

The COVID-19 pandemic of 2020-2021 has made this a reality for many businesses. And businesses that don’t want their staff involved in altercations with frustrated members of the general public may hire security firms, even if, legally, a security officer is not required.

Event Planners And Facilities

Have you ever been to a concert, professional sports, or amusement park? Likely you have, and likely you noticed security on site. Most areas have laws that require any event hosting X number of people to have X number of security personnel, or even paid police on site. These clients often fall into the realm of legally required security, so such contracts can be very lucrative for a security guard firm.

Construction Sites

Often, new construction —primarily subdivision builds —hires security to patrol the site in the off-hours. Many copper water lines and wiring have been stolen from new construction sites, and to avoid this loss, most big construction firms and general contractors hire a third-party security firm.

Property Management

Properties such as condominium buildings usually have 24/7 security on the premises. The firms awarded these contracts often do well, as the facilities require 24-hour staffing. Security personnel are often stationed at these sites on a semi-permanent basis, so tenants will recognize and get to know the on-site security. These security contracts are often required for many years, making them very lucrative and simple to manage from a staffing perspective.

Manufacturing Facilities

Many manufacturing companies hire a third-party security firm to handle on-site security at their facilities. Think of aerospace companies as an example. These manufacturers often have millions of dollars’ worth of product on-site. They typically fall into the insurance-required security client category and can therefore be quite lucrative for a security firm to pick up.

Providing Value To Your Clients

One aspect of marketing your business that you will find essential to your success is the proof of value. When most businesses consider paying for security services, they often do so out of obligation. It means they are likely to go for the lowest bidder unless they can be shown value. 

When a client sees value-added service in your business, you can command a higher rate. Providing value can be done in a few ways. 

  1. Customer service
  2. Customer’s client support
  3. Proactive liability defense

Customer Service

Providing the best possible level of customer service is essential to a successful pitch. Clients want to pay for value, not pay because they have no choice. Just think of paying for your car insurance. No one wants to pay it, but we all have to. What if that car insurance included free roadside assistance at no additional cost? That would take the sting off the price, wouldn’t it?

Customer Client Support

In any client scenario where the general public is involved, or your client has clients who come and go, adding extra value can mean being helpful to the end consumers. Take a property management company, for example. Assume they hire your security firm. If you train your officers to extend a helping hand to the residents, it can make all the difference in contract renewal time. 

Whether it’s helping them by merely opening a door or jumping the car, they left the lights on. A security officer can quickly receive a strong testimonial from a tenant. That testimonial could make the difference when bidding against a competitor for a contract renewal. It’s an added value.

Proactive Liability Defense

Training your security officers to always be vigilant for potential near-miss incidents and to note any safety-leading indicators during their shift is imperative for providing value-added service. This proactive approach to security guard processes can help reduce the client’s liability. 

If your security officer notices a leaking drainpipe at a client facility that creates a large ice patch where end consumers or even staff might slip and fall, should they not advise the client? This sort of action might show the client how your company is helping to prevent accidents. 

Perhaps your guard moves a pylon to the area to caution pedestrians and notifies your client’s maintenance staff. A simple act of awareness and reporting might not only prevent an accident but also prevent someone from getting hurt. And in doing so, it is a strong defense against liability incidents for your client. That’s another excellent form of added value your company can use to sell its services and demonstrate the value it provides.

Security Guard Safety Concerns

Security work can get a little precarious at times. Ask any veteran of the security industry, and they will usually have at least a few tales to tell of crazy or even dangerous situations they’ve encountered. Now consider that you will have to manage the potential incidents as the business owner or manager.

Safety is no joke, and if your company is guarding, it is guarding against threats. Threats can take many forms, as the 2020 pandemic has taught all of us. And keeping your security staff safe is also limiting your liability. But we know that your first concern is the safety of your security officers.

The following steps are essential for training and refreshing your staff to increase your officers’ safety on the job. One of the best safety rules in the industry is to follow the P.A.N.A.M.A. security rule. It’s a simple way to keep your staff safe and also helps them to remember their training.

  1. Patrol at random
  2. Always be prepared to call.
  3. Never leave your defensive gear behind.
  4. Always pay attention to your surroundings.
  5. Maintain a minimum safe distance
  6. Always understand the procedure

Using the rule of Panama will keep your staff from harm and you from liability. Developing a training system that includes this rule can help you, as the owner or manager, fulfill your due diligence to keep your staff safe. It’s also an easy way for your officers to remember to keep themselves safe, making your training process that much easier.

Leveraging Technology In Your Daily Operations

Security Guard Business leverages technology for success
Leverage Technology with 1st Reporting.

We briefly discussed the use of technology in modern, successful security guard firms. But today’s businesses are doing more than just digital reporting. These successful security firms are using technology in new and exciting ways.

Body Cameras

As technology becomes smaller and cheaper and the potential for lawsuits looms around every corner, it’s wise to adopt body camera technology. Security firms that use body cams protect themselves because when an incident is caught on camera, there is hard evidence to support documentation.

Smartphones

Everyone has a smartphone. And these magnificent devices are so useful in many ways. Not only can smartphones be used for traditional phone calls, but they can also be used as a notepad for your security officers. Although these devices are considerably more expensive than a notepad, you will need to equip your security guards with phones regardless, so you might as well take advantage of the technology.

Smartphones allow you to use digital reporting solutions to achieve a level of efficiency not seen before in the industry. Using a mobile app reporting system incorporated into your operations can provide near-instant notifications to you and other managers. 

Just think about how you would use a solution for your officer’s reporting that lets you file incident reports, shift reports, and other reports digitally and submit them right from the job site. The new technology lets you put an end to the archaic use of paper reports.

Other notable features of a digital reporting solution, such as that offered by 1st Reporting, add value to your reports and, thus, to your services. Allow uploading images, video, and audio directly into the report. This ability is something not seen before in the security industry until very recently. The use of this technology allows your company to demonstrate the absolute value of your services to clients. A picture speaks a thousand words, after all.

G.P.S.

One of the best technological developments of the last fifty years is the global positioning system. Managing a fleet of security officers can be daunting. But using this technology, your officers can find their way onto reports with the push of a button.

Tracking employee positions may not be allowed depending on the state or province where you reside, so always check with local labor codes before implementing such a system. However, tracking company vehicles and equipment may be a different story.

One of the benefits of GPS is that the technology has been around for a while. That means that most phones, smartphones, and even tablets can use this technology. Digital reporting apps can also leverage this technology through the hardware on which they run.

This marriage of old and new technologies means you can monitor your officers’ reports and locations, and pinpoint where incidents occur. You can provide added value to your clients.

If there were ever a time to start a security business, now would be the best. Whether you are an owner or manager, security is a great business and can be quite lucrative. At least, it can be quite lucrative for those willing to put efficiency and organization at the forefront.

For a deep dive on every aspect of this topic, read our Ultimate Guide to Digital Reporting for Security Guard Operations.

References

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