With crime rates front of mind for lots of people, now could be a good time to set up a business that makes the public feel safer. Starting a security company is one way to do that.
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The BBC has reported that overall crimes in the UK increased by 7 per cent in the 12 months ending September 2018, with 5,723,182 offences recorded.
With a stretched police force, there’s more and more demand for private security to help tackle crime – the Guardian reports that some call the industry the UK’s “fourth emergency service”.
Whether you’re already working in security and want to start your own security company, or are starting from scratch, this guide should help.
The security industry is tough, in more ways than one, and it’s important you have experience before setting up your own company.
This will mean you’ll have the particular set of skills to deal with whatever comes your way, as well as the contacts needed to give your business a head start.
In this section we talk about what it takes to become a security guard if you don’t already have experience. If you just want to know how to set up your business, skip to our step-by-step guide.
There are different aspects to running a security business. If you’re new to the industry, you might start by getting employed as a security guard.
According to UCAS, among other things this could involve:
You don’t need a qualification to become a security officer, but UCAS says a good standard of education would be helpful.
They also say that previous experience in the armed forces or the police would be useful. You may need an SIA licence (you’ll definitely need the SIA licences when you’re starting your own security company – there’s more on this below).
Reed.co.uk list the average security guard salary in the UK as £24,880, but this is for employed security guards.
Naturally this will be different if you’re running your own business, plus it depends on the type of security business you eventually set up. You also need to factor in your costs, including hiring staff and training.
In terms of rates, what you charge clients will also depend on the type of job required. For example, London Security Services charges £14.50 an hour for door supervisors and £10.50 an hour for CCTV monitoring.
It’ll be a good idea to carry out your own research, speaking to local security firms to find out what they charge before deciding what rates to set. This research will also inform how much you pay any employees you end up hiring.
So you’ve already developed the skills you need over a long career, and now you want to start your own security company. Here are five steps to get going:
As with any business, it’s important to have a niche – and the first place to look when deciding on a specialism is your own experience. You’ll know first-hand how that particular type of security should be run, and your contacts in the field might already know you as someone who gives a great service.
These are just some of the niches you could consider:
Your business’s location should also play a part in your eventual decision – as with any business, it needs to meet an existing demand.
For example, if there’s no need for door security in your region, that niche might not be worth pursuing. Carry out some research into existing security businesses and the needs of your potential clients in the area.
This kind of research will likely form part of your business plan. Every new business needs a business plan, so you should write one before you set out. Here you can explain your vision and what you hope to achieve, adding information like a financial plan and market research.
The Security Industry Authority (SIA) is a good place to start when getting to grips with legalities.
As they’re the people responsible for regulating the private security industry, you’ll need the relevant training and licensing.
There are different licences available for front-line and non front-line staff so it’s worth spending time on their website, researching the options available and what you’ll ultimately need to apply for.
When setting up your own company, it might also be a good idea to look at the SIA’s Approved Contractor Scheme (ACS). The SIA say the scheme “gives your organisation the opportunity to distinguish itself as one of the best providers of private security services in the UK”. For micro security businesses with up to 10 licensable staff, it costs £400 to apply for the scheme and there’s an annual registration fee of £15 “per licensable individual deployed”.
You can also get other certificates and accreditations, including the NSI, ISO 9001, SafeContractor scheme, and CHAS (Contractors Health and Safety Assessment Scheme).
You should also choose a legal structure for your business – will you set up as a sole trader or a limited company? There are pros and cons to each. You also need to register as self-employed with HMRC.
With the day-to-day risks involved in running a business, getting the right insurance policy is important. Here are some of the key covers that will make up security company business insurance:
This depends on the type of service you’re giving. But essential equipment can include:
And keep in mind that if you do hire staff, they’ll need specialist clothing. Firstly, uniform helps show your professionalism and can include your logo. And make sure you’ve thought about things like protective vests, durable footwear and high-visibility jackets.
You might struggle to carry out your day-to-day work and fulfil commitments to clients if your tools and equipment get lost, stolen or damaged.
That’s why it’s a good idea to think about adding protection for your equipment to a business insurance policy – it can help you get back on your feet quickly should anything happen.
You might not need employees when you start out but they could come in a number of guises as your company grows, from front-line security guards to someone helping out in your office. But regardless of the type of employee, it’s important to hire the best people.
When it comes to attracting potential recruits, you can post on your website, social media accounts and both general and specialist job boards. You can also call on existing contacts, who might be suited to the role or know someone who fits the bill.
Keep in mind that security guards need the right licences and training. You should ask about their experience in interviews, carrying out due diligence – this will involve running background checks to make sure potential employees don’t have a criminal record. Being thorough at the start of the hiring process could save you hassle down the line.
You’ll also need to know how much to pay your staff, factoring it in to your financial plans. Research will be key. And when you’re starting out, hiring freelance staff of subcontractors could be a better option financially than hiring full-time employees.
You’ve chosen your niche. You’re up to speed on all the rules and regulations. You’ve gone ahead and set up your company – now you need to find clients.
This is where your experience comes in handy, because your existing contacts may be eager to hire you. Beyond that, here are some ways you can market your business:
We create this content for general information purposes and it should not be taken as advice. Always take professional advice. Read our full disclaimer
26 June 2020 • 3-minute read
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