security business

bigtomw

Hi guys,

Looking for a bit of advice and information on starting a security business, I have some experience working in the sector but I am now working in a completely different industry,

I am in the early stages of thinking about starting a security company, maybe targeting doorman work and events, and then if it dies Ok maybe moving onto static guarding, I know this is a cut throat industry, which is why I would like to start small and try not to invest too much ar the beginning,
I would also like to try and keep my current job fir a while, but I know this could complicate things, but I am normally finished by 1 o'clock,
If anyone has any information about setting up a business like this and how much of a budget I should have and any other general advice I would be very grateful

bigtomw

* does not dies

antoinolachtnai

Well, you need to get all your PSA paperwork for starters. In general, PSA paperwork is not particularly cheap.

You need a group of customers who have confidence in you. You really need to plan everything from there.

By the budget I think you mean the financing. The problem is you have to pay for a lot of things up-front or weekly, but you only get paid a month or two later by your customers. You need to bridge this gap. How big the gap will be will depend on your actual business.

The fact that you will start small is by and large a disadvantage. Your unit overheads will be far higher than your large competitors and they will have access to bank finance. You have to find some way to turn that disadvantage into an advantage.

connundrum

Unless you have one or two strong potential clients who will come along with you from the beginning, you're really at nothing.

I know of several guys who started a security company with one client, and who eventually ended up working as a static guard/doorman for that client in the end in an attempt to keep costs low.

Also, be aware that in an effort to gain more market share, we've seen several 'big players' go in for contracts at a loss, or at a bare minimum %. This is not good for the small players at all, as even though a client might not like the thought of these big gun companies - they can provide staff with better training & HR services along with being able to provide better cover in the event of illness or holiday leave for regular staff.

If you do decide to go for it, set yourself up by concentrating on a distinguising USP i.e. your staff will be better trained in aspects other than security, you'll bring a new technology to the table or you'll be able to save the client money on other services.

Have a look at this, so you'll be looking at €1000 for your company license and whatever it will cost to set yourself up besides.

http://www.psa.gov.ie/Website/psa/psa.nsf/agentvw?Openform&vw=psaLicensing

Just to add to antoinolachtnai's point above, it is not uncommon for invoices to be paid between 60 and 90 days after invoicing, which is a huge gap. For some reason, clients feel that soft service providers are well equipped to carry the debt better than other creditors. This needs to be taken into account.