Security services is one of the niches which is high in demand and now is classed as specialist service. It can be manned security, dog security or just CCTV; everyone of these services need specialist set of training. As accountants for security company, we have full insight knowledge about sector. We are very passionate about our clients and always discuss operations in order to save costs and enhance profitability of the business. Its very important that basis and foundation of the business should be strong from very beginning a business plan should be in place before even spending any penny on business start-up. As accountants for security company we have prepared this start-up guide in order to give you an idea what you would need to start a security company. This is not comprehensive, and we would advice to book an appointment or talk to us about your business venture before hand about your business plan.
Security Business Niche
Robberies have increased in United Kingdom by 29% in 2018 according to BBC report with violent crime up by 20%. Besides, terrorism threats have been o high alert in past few years. Because of these factors there has been high demand for private security services. If you already have experience within security sector, you can organise and supply top notch security services to your clients. This is the opportunity in time which should never be missed.
Security Business Ideas
There are three major type of security services business
- Private security businesses. Providing guard and patrol security services. This include security guards, guard dogs, parking security, CCTV monitoring, bodyguards and more.
- Security consultancies. As name suggest, it’s a consultancy business which advice on recognising and managing security threats and help to devise security strategies and budgets.
- Cybersecurity companies. In todays world, most sophisticated type of crime happens on internet. Cybersecurity firms investigate and eliminate security threats on the internet and networks.
Your Security Business
We have put together a simple guide to start Private Security Business. Depending on the experience in this kind of business you would need to choose your speciality. The ability to offer every service in private security will cost a fortune in terms of compliance, training and employee retentions. Thus, its advisable to choose one area to specialise and to start with.
If you want to narrow down your services to a sector, you may also choose to provide services to only construction, agriculture, residential or retail sector. Even government is one of the big buyers of private security. But for public sector, you would need at least two years of trading history and past references.
Choosing your niche
When it comes to security business, its very important you choose or select area in which you have experience. Personal experience is the key to make business smooth, professional and successful. You would also know the demand for your services in your local area or trade.
You can run a local focus group with business and organisations asking them about their needs for security. You can also look at your competitors operating in your area.
Licenses and Regulations
Security industry is heavily regulated and there are strict licencing requirements to comply with. In order to run a private security, you would need licences from SIA. SIA is abbreviation of Security Industry Authority and is regulator of security industry in United Kingdom.
SIA offers licences for different range of security activities. So you should make sure which activity you will be applying for or for all those which your business will offer.
Security staff you hire would also need to hold licence from SIA in the relevant category. As an employer its not your responsibility to organise training for untrained staff. But its your job to make sure you don’t send unqualified and untrained person out on job.
As a security company you would need insurance to cover your business, your employees and third-party legal costs. Having insurance would assure your potential clients that you are operating responsibly. To make this easy, check insurance providers specialising in providing tailor made packages to security industry.
As a security company you should consider public liability insurance, professional indemnity insurance, contractual liability cover and employers liability insurance.
Costs and Equipment
You would need to budget for the equipment for your security staff. Equipment cost will depend upon what type of services you are providing. But in general, you should have a communication device, a digital camera, a tool belt to keep all stuff and a notebook to record any incidents ready for your security staff.
You would also need to provide uniforms to your staff and keep record of what is been provided. Depending on the services, uniforms can also vary. For example, you may need to provide high vis jacket and helmet to your security staff.
Security industry have different rates of salaries for different type of security. You should budget for salaries when making business plan for your business. It’s the big expense in you budget and should pay more attention to this and its operational system in order to save costs on salaries.
At the Accountancy Solutions we provide payroll services to variety of security companies. It ranges from fixed salaries to zero-hour contract. You should also be aware of workplace pensions and other regulations regarding sick pay and maternity pay. Its vitally important that you should provide for before you put through any quotes to your clients. As accountants for security company we have comprehensive knowledge about working environment and key performance indexes of the business. Come talk to us before you embark on your journey of business.
Accounting and Tax Compliance
We can manage your bookkeeping and accounting in a very cost-effective way, giving you time to concentrate on developing your business. You are always welcome to ask for an advice if you are applying for a contract and we can make budget for you.
As a security business, we always advice to form a limited company. Your company would need to be VAT registered once you have passed threshold. Profit margin is the key to observe. You can have turnover in millions with very little profit.
Our accounting and tax team specialise in tax compliance and planning for security business. Give us a call today to inquire about our services.