How To Start A Security Agency Business
There is a tremendous demand for security guards to protect establishments and homes. This is a venture that has a great potential to be very profitable as long as you operate the business well.
Starting a security agency has many similar steps to other businesses, but since the personnel to be deployed will be provided with firearms, there are legal procedures that must be strictly complied with, as well as unique operational issues. The following is a list of basic tips on planning and starting this business:
Study the current state of the industry. This helps you determine how to best position your planned security agency. Look at the opportunities, competitors, present laws, as well as pending legislation. Get a broad feel for the market so that you can develop a good competitive strategy.
Look up all the government agencies to register your security agency business. Determine if your business will be a sole proprietorship (register with DTI), a partnership or corporation (register with the Securities and Exchange Commission). Besides the usual government agencies like the BIR, municipality, etc., you need to get a permit from the Philippine National Police.
Estimate your needed capitalization. As of July 7, 2013, the amount of P500,000 was indicated as the minimum amount to be registered. This was according to data in the Securities and Exchange Commission website. However, this is just the minimum requirement. It is very possible that you may need much more capital depending on the scale of your operations, as the cost of firearms and working capital is very considerable.
Plan your recruitment carefully. The proper screening and training of your security guards is crucial to your success in this business. Also, note that not only those with bad records but also those who are mentally unstable or with violent tendencies must not be recruited.
Have other sources of income. Besides your core service of providing security guards, you may also offer related services. Some of these are security consultancy, house detectives and private investigation.
Marketing strategies. Know how to source clients and how to make a proposal. Learn the ways to promote your business and how to negotiate and close the agreement. It is important that you are not entirely dependent on a single client since losing this client would threaten the existence of your business.
Invest well in continuous training. Training should not be considered as just an expense; it is the area where you should strive to get a competitive advantage. For example, instead of just focusing on the security function, you can also add customer service training to give you the edge over other agencies.
The security agency business can be your passport to success. If you work hard and know what you are doing, there is an excellent chance of fulfilling your dreams.
To know more about the security agency business, BusinessCoach, Inc., a leading business seminar provider, will be conducting a seminar entitled, “How to Start and Manage a Security Agency.” Contact (02) 727-5628, (02) 727-8860, (0915) 205-0133 or visit www.businesscoachphil.com for details.
Click here to view details of the seminar: How to Start and Manage a Security Agency »
*Originally published by the Manila Bulletin. C-6, Sunday, July 14, 2013. Written by Ruben Anlacan, Jr. (President, BusinessCoach, Inc.) All rights reserved. May not be reproduced or copied without express written permission of the copyright holders.