Security Company Business Plan Template
If you want to start a security business or expand your current security company, you need a business plan.
Fortunately, you’re in the right place. Our team has helped develop over 100,000 business plans over the past 20 years, including thousands of security company business plans.
The following security business plan template and example gives you the key elements you must include in your plan. In our experience speaking with lenders and investors, the template is organized in the precise format they want.
Sample Business Plan For Security Businesses
I. Executive Summary
Business Overview
[Company Name] is a new security company located in [Location]. [Company Name] provides security professionals to local establishments that need protection for their business or assets. We train our professionals for numerous situations so they are prepared for any security job. This includes anything from theft prevention to handling crisis situations. Whatever our clients’ concerns are, they can rest assured that they have hired the best security professionals in the [Location] area.
Services Offered
[Company Name] provides security professionals that can help businesses with all their security and surveillance needs. These can include but are not limited to:
- Protecting individuals
- Guarding property
- Theft prevention
- Help with crisis situations
Businesses can sign up with one of our flexible contract programs when hiring our security services. We also offer a discounted trial period for those who are considering a long-term contract and want to test out our services before signing.
Customer Focus
[Company Name] will primarily serve the businesses and residents of [Location]. The demographics of this area are as follows:
- 428,146 residents
- 25,000 businesses
- Average income of $64,000
- 24% married
- Median age of 38 years
Management Team
[Company Name] is founded by [Founder’s Name], who has been a security professional for [X] years. He has worked both as a professional security guard and as a certified trainer and received an MBA from [University]. [Founder’s Name]’s education and experience has given him all the essential skills to run his dream security company. He will also hire other administrative staff to help him with the essential day-to-day functions.
Success Factors
[Company Name] is uniquely qualified to succeed due to the following reasons:
- Our location is in a high-volume area with easy access from multiple commercial district areas.
- The management team has a track record of success in security services.
- Offering security services is a proven business and has succeeded in different communities throughout the United States.
Financial Highlights
[Company Name] is seeking a total funding of $300,000 of debt capital to open its office. Specifically, these funds will be used as follows:
- Office design/build: $100,000
- Working capital: $200,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even
Top line projections over the next five years are as follows:
| Financial Summary | FY 1 | FY 2 | FY 3 | FY 4 | FY 5 |
|---|---|---|---|---|---|
| Revenue | $560,401 | $782,152 | $1,069,331 | $1,379,434 | $1,699,644 |
| Total Expenses | $328,233 | $391,429 | $552,149 | $696,577 | $776,687 |
| EBITDA | $232,168 | $390,722 | $517,182 | $682,858 | $922,956 |
| Depreciation | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 |
| EBIT | $225,168 | $383,722 | $510,182 | $675,858 | $915,956 |
| Interest | $6,016 | $5,264 | $4,512 | $3,760 | $3,008 |
| Pre Tax Income | $219,152 | $378,458 | $505,670 | $672,098 | $912,948 |
| Income Tax Expense | $76,703 | $132,460 | $176,985 | $235,234 | $319,532 |
| Net Income | $142,449 | $245,998 | $328,686 | $436,864 | $593,416 |
| Net Profit Margin | 25% | 31% | 31% | 32% | 35% |
II. Company Overview
Who is [Company Name]?
[Company Name] is a new security company located in [Location]. [Company Name] provides security professionals to local establishments that need protection for their business or assets. We train our professionals for numerous situations so they are prepared for any security job. This includes anything from theft prevention to handling crisis situations. Whatever our clients’ concerns are, they can rest assured that they have hired the best security professionals in the [Location] area.
[Company Name]’s History
After surveying the local customer base, and finding a potential office location, [Founder’s Name] incorporated [Company Name] as an S-Corporation on [date of incorporation].
Currently, the business is being run out of [Founder’s Name]’s home office, but once the lease on [Company Name]’s location is finalized, all operations will be run from there.
Since incorporation, [Company Name] has achieved the following milestones:
- Found a commercial space and signed a Letter of Intent to lease it
- Developed the company’s name, logo, social media accounts, and website located at [website]
- Began recruiting key employees
[Company Name]’s Products/Services
[Company Name] provides security professionals that can help businesses with all their security and surveillance needs. These can include but are not limited to:
- Protecting individuals
- Guarding property
- Theft prevention
- Help with crisis situations
Businesses can sign up with one of our flexible contract programs when hiring our security services. We also offer a discounted trial period for those who are considering a long-term contract and want to test out our services before signing.
III. Industry Analysis
You can download our Business Plan Template (including a full, customizable financial model) to your computer here.
With increasing illegal events, terrorism, and fraudulent activities happening all around the world, the demand for professional security is greater than ever. Every establishment needs some form of security, whether it be in the form of security professionals or in the form of cybersecurity. As the world continues to navigate its violent challenges, security professionals will be needed to protect important assets and respond to crisis situations.
According to Grand View Research, the security industry is expected to grow at a compound annual growth rate of 8% from now until 2030. This is substantial growth, which shows just how essential the industry will be in the coming decade. Businesses like [Company Name] will continue to be in high demand and very profitable.
IV. Customer Analysis
Demographic Profile of Target Market
[Company Name] will primarily serve the businesses and residents of [Location] and surrounding areas. The demographics of this area are as follows:
- 428,146 residents
- 25,000 businesses
- Average income of $64,000
- 24% married
- Median age of 38 years
Customer Segmentation
We will primarily target the following customer segments:
- Private Individuals: Some individuals may find themselves in danger or at risk of being robbed. We will offer personal protection to keep these individuals safe.
- Local Businesses: Our largest customer segment will be local businesses. They have a variety of security needs, from needing protection to preventing theft. We can help them with any security concerns they may have.
- Government Organizations: We will also collaborate with local government organizations to assist them with their unique security needs.
V. Competitive Analysis
Direct & Indirect Competitors
The following establishments are within a 10-mile radius of [Company Name] and therefore are direct or indirect competition.
Sky High Security
Sky High Security is a security company that was established in 2002. It provides a large team of security professionals specifically trained to protect high-value assets, such as museum collections and expensive jewelry. Their services include providing in-person officers as well as high-tech surveillance equipment.
Prime Security
Founded in 2003, Prime Security is the best security company in town for those looking for guard and patrol services. Prime Security aims to protect establishments and offer patrols to deter any unwanted visitors. The company has been highly successful and is the largest security company in the region.
First Responders Security
First Responders Security is the most popular security company for those who have more complex security concerns. They offer a wide range of services, including alarm response, theft prevention, and patrolling. Instead of hiring several companies to do several jobs, companies can depend on First Responders Security to manage all of their security concerns.
Competitive Advantage
[Company Name] has several advantages over its competitors. The following are some of its major advantages:
- Expert Security Professionals: [Company Name] only hires the best personal security professionals that have extensive training.
- Location: [Company Name]’s location is in a prime location, giving us quick and easy access to prime commercial districts. This is ideal especially when hired to handle crisis situations or alarm response.
- Affordable Pricing: The services offered by [Company Name] are similar in quality to its most premium-positioned competitor and [Company Name] can offer them at a lesser price.
- Management: Our management team has years of security and business experience that allows us to market to and serve customers in a much more sophisticated manner than our competitors.
VI. Marketing Plan
The [Company Name] Brand
The [Company Name] brand will focus on the company’s unique value proposition:
- Professional security services
- Flexible contracts and a trial period
- Excellent customer service
Promotions Strategy
[Company Name] expects its initial target market to be businesses within a 10-mile radius of its location. [Company Name]’s promotion strategy to reach these individuals includes:
Targeted Cold Calls
[Company Name] will initially invest significant time and energy into contacting potential clients via telephone. In order to improve the effectiveness of this phase of the marketing strategy, a highly-focused call list will be used, targeting startups and small businesses. As this is a very time-consuming process, it will primarily be used during the startup phase to build an initial client base.
Referrals
[Company Name] understands that the best promotion comes from satisfied customers. The company will encourage its clients to refer other businesses by providing economic or financial incentives for every new client produced. This strategy will increase in effectiveness after the business has already been established.
Social Media
[Company Name] will invest heavily in a social media advertising campaign. The brand manager will create the company’s social media accounts and invest in ads on all social media platforms. It will use targeted marketing to appeal to the target demographics.
Publications
The company will place print advertisements in key local publications, including newspapers, area magazines, and business newsletters. Additionally, [Company Name] will print brochures and place them in specific locations frequented by target individuals, such as small business development centers.
Website/SEO
[Company Name] will invest heavily in developing a professional website that displays all of the features and benefits of [Company Name]. It will also invest heavily in SEO so that the brand’s website will appear at the top of search engine results.
Direct Mail
[Company Name] will blanket businesses with direct mail pieces. These pieces will provide general information on [Company Name], offer discounts, and/or provide other incentives for companies to use our services.
Pricing Strategy
[Company Name]’s pricing will be on par with competitors so clients feel they receive great value when hiring our security services.
VII. Operations Plan
Functional Roles
In order to execute [Company Name]’s business model, the company needs to perform many functions including the following:
Administrative Functions
- Bookkeeping
- Marketing
- General administrative functions
- Hiring and training staff
Service Functions
- Offer professional security services
- Draft contracts and invoices
- Train security staff
Milestones
The following are a series of steps that lead to our vision of long-term success. [Company Name] expects to achieve the following milestones in the following [xyz] months:
| Date | Milestone |
|---|---|
| [Date 1] | Finalize lease agreement |
| [Date 2] | Design and build out [Company Name] |
| [Date 3] | Hire and train initial staff |
| [Date 4] | Kickoff of promotional campaign |
| [Date 5] | Launch [Company Name] |
| [Date 6] | Reach break-even |
VIII. Management Team
Management Team Members
[Company Name] is founded by [Founder’s Name], who has been a security professional for [X] years. He has worked both as a professional security guard and as a certified trainer and received an MBA from [University]. [Founder’s Name]’s education and experience has given him all the essential skills to run his dream security company. He will also hire other administrative staff to help him with the essential day-to-day functions.
Hiring Plan
[Founder] will serve as the CEO of [Company Name]. In order to launch, he needs to hire the following personnel:
- Administrative staff (1 to start)
- Security personnel (10 to start)
- Marketing manager (1 to start)
IX. Financial Plan
Revenue and Cost Drivers
[Company Name]’s revenues will come primarily from charging for its security services. Depending on the contract in place, [Company Name] may charge an hourly fee per professional working for the client or a flat fee per month.
The office lease, equipment, supplies, and labor expenses will be the key cost drivers of [Company Name]. Ongoing marketing expenditures are also notable cost drivers for [Company Name], especially in the first few years as the company establishes itself in the market.
Capital Requirements and Use of Funds
[Company Name] is seeking a total funding of $300,000 of debt capital to open its office. Specifically, these funds will be used as follows:
- Office design/build: $100,000
- Working capital: $200,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even
Key Assumptions
The following table reflects the key revenue and cost assumptions made in the financial model:
| Number of Clients | Average |
|---|---|
| FY 1 | 120 |
| FY 2 | 150 |
| FY 3 | 180 |
| FY 4 | 200 |
| FY 5 | 220 |
5 Year Annual Income Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| Revenues | ||||||
| Product/Service A | $151,200 | $333,396 | $367,569 | $405,245 | $446,783 | |
| Product/Service B | $100,800 | $222,264 | $245,046 | $270,163 | $297,855 | |
| Total Revenues | $252,000 | $555,660 | $612,615 | $675,408 | $744,638 | |
| Expenses & Costs | ||||||
| Cost of goods sold | $57,960 | $122,245 | $122,523 | $128,328 | $134,035 | |
| Lease | $60,000 | $61,500 | $63,038 | $64,613 | $66,229 | |
| Marketing | $20,000 | $25,000 | $25,000 | $25,000 | $25,000 | |
| Salaries | $133,890 | $204,030 | $224,943 | $236,190 | $248,000 | |
| Other Expenses | $3,500 | $4,000 | $4,500 | $5,000 | $5,500 | |
| Total Expenses & Costs | $271,850 | $412,775 | $435,504 | $454,131 | $473,263 | |
| EBITDA | ($19,850) | $142,885 | $177,112 | $221,277 | $271,374 | |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 | |
| EBIT | ($56,810) | $105,925 | $140,152 | $184,317 | $234,414 | |
| Interest | $23,621 | $20,668 | $17,716 | $14,763 | $11,810 | |
| PRETAX INCOME | ($80,431) | $85,257 | $122,436 | $169,554 | $222,604 | |
| Net Operating Loss | ($80,431) | ($80,431) | $0 | $0 | $0 | |
| Income Tax Expense | $0 | $1,689 | $42,853 | $59,344 | $77,911 | |
| NET INCOME | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 | |
| Net Profit Margin (%) | - | 15.00% | 13.00% | 16.30% | 19.40% |
5 Year Annual Balance Sheet
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Cash | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 | |
| Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
| Inventory | $21,000 | $23,153 | $25,526 | $28,142 | $31,027 | |
| Total Current Assets | $37,710 | $113,340 | $184,482 | $286,712 | $423,416 | |
| Fixed assets | $246,450 | $246,450 | $246,450 | $246,450 | $246,450 | |
| Depreciation | $36,960 | $73,920 | $110,880 | $147,840 | $184,800 | |
| Net fixed assets | $209,490 | $172,530 | $135,570 | $98,610 | $61,650 | |
| TOTAL ASSETS | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 | |
| LIABILITIES & EQUITY | ||||||
| Debt | $317,971 | $272,546 | $227,122 | $181,698 | $136,273 | |
| Accounts payable | $9,660 | $10,187 | $10,210 | $10,694 | $11,170 | |
| Total Liabilities | $327,631 | $282,733 | $237,332 | $192,391 | $147,443 | |
| Share Capital | $0 | $0 | $0 | $0 | $0 | |
| Retained earnings | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| Total Equity | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| TOTAL LIABILITIES & EQUITY | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 |
5 Year Annual Cash Flow Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| CASH FLOW FROM OPERATIONS | |||||
| Net Income (Loss) | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 |
| Change in working capital | ($11,340) | ($1,625) | ($2,350) | ($2,133) | ($2,409) |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 |
| Net Cash Flow from Operations | ($54,811) | $118,902 | $114,193 | $145,037 | $179,244 |
| CASH FLOW FROM INVESTMENTS | |||||
| Investment | ($246,450) | $0 | $0 | $0 | $0 |
| Net Cash Flow from Investments | ($246,450) | $0 | $0 | $0 | $0 |
| CASH FLOW FROM FINANCING | |||||
| Cash from equity | $0 | $0 | $0 | $0 | $0 |
| Cash from debt | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| Net Cash Flow from Financing | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| SUMMARY | |||||
| Net Cash Flow | $16,710 | $73,478 | $68,769 | $99,613 | $133,819 |
| Cash at Beginning of Period | $0 | $16,710 | $90,188 | $158,957 | $258,570 |
| Cash at End of Period | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 |
