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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 reported an eight per cent drop in crime rates for England and Wales in 2020 – a year of lockdowns – but crime has surged as restrictions lifted. In fact, the ONS reported overall crimes in England and Wales increased by 12 percent between July 2020 and June 2021.
With a stretched police force, there’s more and more demand for private security to help tackle crime.
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 to build experience before setting up your own company.
This means you should have a very 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 officer.
According to the National Careers Service this could involve, among other things:
The National Careers Service says the qualification you’ll need will depend on the type of security work you want to do. For example:
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, so there’s more on this below).
Find out more about licence-linked training courses and approved providers.
You could also look into general business courses, for example bookkeeping.
Reed.co.uk lists the average security guard salary in the UK as £23,052, 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 £15.99 an hour for door supervisors and £12.99 an hour for CCTV monitoring.
It’ll be a good idea to do your market 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 acquired the skills you need over a very 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. Plus, you'll have contacts in the field that already know you give a great service.
These are just some of the niches you could consider:
Is there a gap in the market or can you solve an existing problem with your business?
Your business’s location should also play a part in your eventual decision, because 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.
It can also be useful to do a SWOT analysis to note particular strengths and weaknesses for your business.
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 aims to “raise performance standards and assist the private security industry in developing new opportunities”. 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, partnership, or a limited company? There are pros and cons to each. Our guide explains the difference between sole trader and limited company.
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:
Being able to tailor your insurance policy means you only pay for the cover you need. For example, here at Simply Business we also offer specific [insurance for security guards](https:// /insurance/public-liability/public-liability-insurance-for-security-guards/) as well as self-employed door supervisors and CCTV installers.
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. Uniform helps show your professionalism and can include your logo. 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.
Read more: Three tool theft updates.
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 wages into your financial plans. Research will be key. And when you’re starting out, hiring temporary employees or 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, read on for how to get a security contract and ways you can market your business.
Read our expert guide to marketing for more tips.
Not sure if starting a security company is for you? Here are 10 of the best small business ideas for 2022 for more inspiration.
Are you thinking about starting a security company? Let us know in the comments.
Photograph 1: Andrey Popov/stock.adobe.com
Photograph 2: Pixel-Shot/stock.adobe.com
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