How to Start a Security Guard Company: Key Steps

Licensing, Staffing, Equipment, and Launch Checklist Basics

A security guard company provides trained people who help protect property, reduce risk, and respond to problems as they happen.

In most cases, you’re providing coverage—someone is on-site, paying attention, and following clear instructions.

This business is often built around contracts. A client wants a guard at a location for a set number of hours, on specific days, with a clear job scope.

Here’s the part many new owners don’t see at first. This isn’t just “show up and stand there.” You’re building a regulated service business where licensing, screening, reporting, and reliability matter right away.

Common Business Models

Security companies don’t all start the same way. Some begin small and stay local. Others build toward multi-site contracts and larger teams.

Your model should match what you can staff and supervise from the start. If you overpromise coverage, you can lose a client fast.

Unarmed Guard Coverage: Fixed-post security for businesses, buildings, and sites.
Mobile Patrol: Scheduled drive-by checks and property walkthroughs on a route.
Access Control: Visitor sign-in, entry checks, and controlled access points.
Construction Site Coverage: After-hours watch and theft deterrence for job sites.
Event Security: Temporary staffing for venues and organizers.
Armed Services: Higher-risk assignments that often require added licensing and training.

Most first-time owners start with unarmed services because it’s simpler to staff. Then they add specialized services once they understand the licensing path and client expectations.

How Does a Security Guard Company Generate Revenue

Most security guard companies earn revenue through hourly coverage contracts. A client pays for a guard to be present for a set schedule.

Some companies also offer route patrol services, which are billed as a monthly service based on the number of checks. Event work is often billed per shift or per event, depending on what the client needs.

If you’re pricing correctly, the work should cover payroll, insurance, equipment, admin time, and still leave enough room to pay you as the owner. That’s the real test.

Is This Business Right for You

Before you think about uniforms or vehicles, start with the bigger question. Are you ready to own and operate a business—and is this business the right fit for you?

A security guard company can look simple from the outside. But you’re stepping into a business where clients expect consistency, fast response, and professional behavior every single day.

Passion matters too. Not because it replaces planning, but because pressure will show up. When something goes wrong—late staff, a client complaint, a tense situation—passion helps you stay in problem-solving mode instead of looking for an exit.

If you need a reminder of why that matters, read why passion matters in business.

Now ask yourself this exact question: “Are you moving toward something or running away from something?”

If you’re only trying to escape a job you hate or a financial squeeze, that pressure can fade fast. You want a reason that holds up when the work gets heavy.

Think about the reality side of ownership too. Income can be uncertain. Hours can run long. Some tasks will feel stressful, repetitive, or uncomfortable.

You’ll likely take fewer vacations at first, and the responsibility sits with you. Is your family or support system on board?

And do you have—or can you learn—the skills you’ll need? Can you secure enough funds to start and operate until the work is steady?

If you want a wider view of what ownership can feel like, spend time with a business inside look. It helps you think through the day-to-day reality before you commit.

Talk to Owners You Will Not Be Competing Against

One of the smartest moves you can make is talking to real security company owners—only if they’re not your direct competitors.

That means you talk to owners in a different city, region, or service area. Only talk to owners you will not be competing against.

Ask questions that help you see what the work is really like:

What type of contract was easiest to win when you first started?
What licensing or compliance step slowed you down the most?
What would you do differently in the first 90 days?

Startup Step 1: Choose Your Service Lane and Starting Size

You can’t start everything at once. Your first job is deciding what you will offer on day one.

Will you focus on unarmed guard coverage, mobile patrol, access control, or event work? Each one has different staffing pressure and different client expectations.

Now decide how big you want to start. A security company can begin small, but only if you pick assignments that one person can realistically cover.

If you plan to cover multiple sites or offer round-the-clock shifts, you’ll need staff fast. That changes your startup cost, your risk, and your setup time.

Startup Step 2: Decide How You’ll Own and Staff the Business

This business can be started solo in some cases, but many owners quickly run into staffing reality. Contracts often require coverage you can’t personally fill every week.

So choose your ownership setup early. Are you going solo, bringing in a partner, or planning to involve investors?

Also decide if you’ll run this full time or part time. Part time can work if you start with a limited service schedule, but security clients often need consistent coverage.

Next, decide how you’ll handle the work. Will you do most tasks yourself at first and hire later, or hire right away and step into a supervisor role early?

Startup Step 3: Confirm Demand and Check If Profit Is Realistic

Demand can look obvious—businesses want security, right? But you still need to confirm it in your area.

Start by identifying who hires guards nearby. Think property managers, construction sites, warehouses, and event venues.

Then look at the competition. How many security companies already serve those clients? What do they specialize in?

This is also where you verify profit. Your pricing has to cover wages, insurance, equipment, admin time, and still pay you as the owner.

If the numbers only work when everything goes perfectly, that’s a warning sign. A business needs breathing room.

To help you think through this step, review supply and demand basics so you can judge whether the market can support one more provider.

Startup Step 4: Learn the Licensing Path Before You Spend Money

Security guard businesses are often regulated at the state level. That means the company may need a license, and individual guards may need registration or training.

Your safest move is to research this before you buy equipment or sign contracts. If licensing takes longer than expected, you don’t want money locked up in gear you can’t use yet.

Start by finding your state’s licensing agency. In some states, private security is regulated through a public safety department. Texas, for example, regulates private security through the Texas Department of Public Safety. California licenses Private Patrol Operators through the Bureau of Security and Investigative Services.

Once you find the right agency, look for the business license requirements and the individual guard requirements. If anything is unclear, call the licensing office before moving forward.

Startup Step 5: Build Your Skills Plan Before You Hire Anyone

Even if you plan to hire guards quickly, your first job is being the person who sets standards.

You’ll need basic skills in screening, scheduling, documentation, communication, and client expectations. You don’t have to master everything, but you do need a plan.

If you’re weak in a skill area, you have options. You can learn it, bring in a professional, or build a small support team around you.

Many new owners get relief by building a professional support circle early, like a bookkeeper, attorney, or insurance agent. A good guide for this is building a team of professional advisors.

Startup Step 6: Build Your Essential Gear List and Price It Out

Your startup cost will depend on your starting size. One guard covering one location needs far less than a company trying to staff multiple shifts.

The easiest way to stay grounded is to list what you truly need on day one, then collect pricing estimates for each item.

You’ll also want to price the less obvious needs, like insurance, licensing fees, uniforms, and basic office setup. Scale drives your total cost, so keep your first version realistic.

If you want a method for building a clean startup cost list, use this startup cost estimating guide as your framework.

Startup Step 7: Choose Your Business Structure and Register the Company

At this point, you’re ready to make it real. That means forming the business and registering it correctly.

Many small businesses start as sole proprietorships because it’s simple. Then they form a limited liability company as they grow because it can add liability protection and a clearer structure.

This choice depends on your risk level, your plan for hiring, and what your state requires for licensing. If you want a guided overview, start with how to register a business.

Once you register, keep your business name consistent across filings, banking, and licensing. Small inconsistencies can slow approvals.

Startup Step 8: Get Your Tax Setup in Place Early

Most owners get this step done right after forming the business. It keeps your paperwork clean and helps you open accounts.

You’ll likely need an Employer Identification Number from the Internal Revenue Service. It’s commonly used for taxes, hiring, and business banking.

Then you’ll register for any state tax accounts that apply to your setup. This varies based on whether you have employees and what your state requires.

Startup Step 9: Apply for Security Business Licensing and Guard Credentials

This is the part that makes security different from many other service businesses. You may need a license for the company, and your guards may need separate registration.

Some states also require background checks and fingerprinting as part of the process. Others require exams, specific experience, or a qualified manager.

Don’t assume your business can legally operate just because you formed it. You want your licensing approvals in place before you advertise and sign coverage contracts.

Startup Step 10: Set Up Banking, Billing, and a Simple Paper Trail

If you want clients to take you seriously, you need clean business basics. That means business banking, invoicing, and a system for collecting and storing reports.

Open your business accounts at a financial institution and keep your business income separate from personal spending. This helps with recordkeeping and lowers confusion later.

Even if you’re not seeking funding, you still want a basic business plan. It forces you to think through services, staffing, costs, and pricing.

If you want guidance, use this business plan resource to structure your plan in a way that’s practical.

Startup Step 11: Choose a Name, Domain, and Online Presence

Your name matters because it’s tied to trust. Security is a business where clients want confidence before they sign anything.

Start by choosing a business name that fits your service lane. Then check if a matching domain name and social handles are available.

A helpful step-by-step is this guide to selecting a business name.

Once the name is set, build a basic online presence. It doesn’t need to be fancy, but it does need to look professional.

If you need a starting point, use an overview of building a business website.

Startup Step 12: Set Insurance and Risk Protection Before You Work

Security work comes with risk. A client expects you to protect their property, but they also expect you to protect your business from liability problems.

General liability insurance is a core starting point. You may also need coverage for vehicles, equipment, and employee-related risk depending on how you operate.

Some states require specific insurance levels or surety bonds as part of licensing. So this step is not only smart—it may be required.

You can learn the basics through this business insurance guide.

Startup Step 13: Build Your Brand Basics and Printed Materials

Security is a trust business. Small details like clean uniforms, clear identification, and professional documents affect how clients see you.

Start with a logo, business cards, and basic signage if needed. Add letterhead and a simple service sheet that explains what you do.

If you want support building this correctly, review corporate identity considerations.

Business cards still matter in local business-to-business promptions. If you want the basics, see what to know about business cards.

Startup Step 14: Set Your Pricing and Define What’s Included

Pricing is not just about being competitive. It’s about making sure the job pays you and supports the business.

Start by defining what your price includes. Does it include incident reports? A supervisor check-in? A guard replacement if someone calls out?

Then build pricing around real costs. Payroll, insurance, licensing, uniforms, admin time, and equipment all need to fit inside your rate.

If you want a grounded approach, use pricing your products and services as a guide.

Startup Step 15: Line Up Your Suppliers and Equipment Sources

Security companies rely on dependable suppliers. Uniforms, radios, flashlights, and safety gear all need to be consistent and replaceable.

Even if you start small, you want a simple supplier list with two options for key items. That way you’re not stuck if something goes out of stock.

This also applies to any services you use, like payroll processing or background screening support. The goal is reliability, not complexity.

Startup Step 16: Choose Your Base Location and Set Up the Office Basics

Most security companies don’t need a storefront. But you do need a base of operations—somewhere to store gear, handle paperwork, and run scheduling.

You might run this from home at first, depending on local rules. Or you might lease a small office if clients expect a business location.

If you’re choosing a location, convenience matters. You want to be close enough to serve clients quickly, especially if you plan to do patrol work.

If you need help thinking this through, use this business location guide.

Startup Step 17: Build Your Hiring and Screening Process

If you plan to hire guards, this is a make-or-break step. You’re placing people in client environments, often unsupervised.

Your hiring process needs to support licensing rules and client expectations. That usually means background screening, identity verification, and clear standards for behavior and reporting.

If you use a consumer reporting agency for screening, you need to follow federal rules under the Fair Credit Reporting Act. You also want to avoid discrimination issues when using criminal history.

If you want help thinking through early staffing, review how and when to hire.

Startup Step 18: Prepare Contracts, Post Orders, and Reporting Templates

This is where you set yourself apart fast. Clients don’t just want a guard. They want a guard who follows instructions and documents what happens.

Create a simple service agreement and a scope template you can customize per location. Then create post orders that explain what the guard should do at that site.

Also prepare reporting templates, like incident reports and daily logs. When a client asks for proof, you want a clean system ready.

Startup Step 19: Plan Your Marketing for Landing Your First Contracts

Security contracts are usually won through local relationships and direct outreach. Think property managers, construction firms, and local business owners who already hire vendors.

Your goal is to look credible from the start. A basic website, a clean service sheet, and a professional phone presence helps.

If you want to make a public announcement when you launch, you can borrow ideas from grand opening planning and shape it into a service-business launch message.

And before you spend on ads, review business startup considerations so your marketing fits your budget and your readiness.

Startup Step 20: Run a Pre-Opening Checklist Before Your First Shift

This step saves you from a rough first week. Before you accept your first contract, confirm every key item is ready.

You want your licensing, insurance, equipment, staffing plan, and paperwork lined up so the first shift feels controlled, not chaotic.

Also do a final review of common startup errors. It’s easy to skip small steps when you’re excited. A simple reminder is what to avoid when starting.

Essential Equipment and Startup Essentials

Security guard companies don’t need heavy machinery, but you do need essentials that support safety, professionalism, and reporting.

Use this list as your starting point. Then collect pricing estimates from suppliers so you can build your startup cost list based on your actual starting size.

Uniforms and Identification

Uniform standards matter because clients expect a visible professional presence. Your gear should match the work environment and any client rules.

Uniform shirts and pants
Outerwear for weather (jacket, rain gear)
High-visibility vest for low-light or traffic areas
Duty belt (if used)
Company identification badge or credential
Name patches or company patches (if used)

Communication Gear

Clients expect guards to report issues fast. Communication is not optional, even in small contracts.

Company-managed mobile phone or controlled business line
Two-way radios (if you have multiple posts or patrols)
Radio chargers and spare batteries
Hands-free earpiece (optional, site-dependent)

Lighting and Safety Basics

Many security shifts happen at night or in low-light areas. A guard without proper lighting is limited and less safe.

Primary flashlight
Backup flashlight
Basic first aid kit
Protective gloves
Eye protection (site-dependent)

Reporting and Documentation Tools

Documentation is a core part of the service. Your reporting system can be paper or digital, but it must be consistent.

Incident report templates
Daily activity log templates
Visitor log or access log templates
Timekeeping method (paper, app, or system)
Secure file storage for records

Mobile Patrol Essentials (If Offered)

Mobile patrol is a separate setup. You’ll need a safe vehicle plan and equipment that supports quick, documented checks.

Patrol vehicle (owned or leased)
Vehicle charger or mount for work device
Reflective cones or roadside safety triangles
Patrol checkpoint method (if required by client)

Optional Duty Gear (Depends on State and Contract)

Some tools are allowed in some states and restricted in others. Never assume these are permitted without checking rules and client policy.

Body camera (if permitted and required)
Handcuffs (only if allowed and trained)
Baton or defensive spray (only if allowed and trained)
Firearm and holster (armed assignments only, with required licensing)

Skills You’ll Need to Launch Strong

You don’t need to be a security expert to start, but you do need the basics handled correctly. Your job is to build a system that supports safe, legal coverage.

If you’re missing a skill, learn it or bring in support. What matters is that the work is handled properly.

Clear communication and calm decision-making
Writing and documentation for reports and logs
Customer service presence in public-facing roles
Hiring and screening discipline
Scheduling and coverage planning
Basic business admin skills (billing, contracts, records)
Understanding licensing rules and staying compliant

What Your Day-to-Day Will Include

Even before you launch, it helps to understand what you’re building toward. You’re not just providing hours. You’re providing reliability and documentation.

That means your setup has to support consistent coverage and clean reporting from day one.

Confirming shift schedules and coverage
Reviewing post orders and site instructions
Handling client check-ins and updates
Managing incident reports and daily logs
Issuing uniforms and gear
Replacing staff when someone calls out
Billing and payment follow-up

A Day in the Life of a Security Guard Company Owner

Some days feel calm, and some days feel like you’re putting out small fires. That’s normal in a coverage business.

The more systems you build early, the less stressful the day feels.

Review overnight reports and follow up on incidents
Confirm today’s staffing and backup coverage
Handle client calls and new quote requests
Prepare post orders for a new site
Check guard credential status and onboarding progress
Send invoices and track payments
Order replacement uniforms or gear

Pros and Cons of Owning a Security Guard Company

This business can grow, but it grows through responsibility. You’re providing a service clients rely on when something goes wrong.

So it helps to see both sides before you commit.

Pros: Contract-based revenue, scalable staffing, many niche options, repeat clients.
Cons: Licensing rules, staffing pressure, strict client expectations, liability risk.

Red Flags to Watch for Before You Commit

Security work attracts good clients and risky clients. It also attracts strong applicants and risky applicants.

Pay attention early. The problems you ignore at launch usually get louder later.

Client red flags: Refuses clear scope, demands results beyond your authority, expects coverage you can’t staff, pressures you to skip paperwork.
Staff red flags: Can’t qualify for licensing, avoids documentation, unreliable availability, poor communication under pressure.

Varies by Jurisdiction

Security guard businesses are regulated differently across the country. Your state may require a company license, guard registration, specific training, fingerprints, insurance, or bonding.

Instead of guessing, verify locally using official sources. This keeps you compliant and saves time.

Check your Secretary of State site for business registration and name rules.
Check your state licensing agency for private security licensing and guard credential rules.
Check your state revenue agency for tax registration requirements.
Check your city or county licensing portal for local business license rules.
Check planning and zoning for home-based office rules and any Certificate of Occupancy requirements if you lease a space.

If you call an agency, keep your questions specific:

Do I need a license for the security company itself, or only for guards?
Do guards need registration before working their first shift?
Are there required insurance or bonding levels tied to licensing?

Pre-Opening Checklist

Before you accept your first contract, walk through this list. It helps you confirm you’re truly ready.

A smooth launch is usually the result of small things being handled ahead of time.

Business registered and tax setup complete
Required security licensing submitted or approved
Insurance coverage active (and any client certificates ready)
Uniforms and identification ready for issue
Reporting templates created and tested
Contracts and post orders prepared
Billing method ready to accept payment
Basic website and contact methods live
First client outreach plan ready

101 Tips to Consider for a Security Guard Company

These tips are here to help you from planning through the daily realities of running your company.

Use them as options, not requirements, and focus on the ones that match your goals and risk level.

Save this page so you can come back when you need a quick reminder or a fresh idea.

Try one change at a time so you can tell what’s improving your results.

What to Do Before Starting

1. Decide whether you’re offering unarmed coverage, mobile patrol, access control, event security, or something else first. Picking one lane makes licensing, staffing, and pricing easier to control.

2. Look up your state’s requirements for both the security company and individual guards before you spend money. In many states, your business can’t legally operate until approvals are in place.

3. Build a simple “first contract” target so you don’t chase everything. For example: one commercial property, one construction site, or one weekly event client.

4. Write your “what we do and don’t do” list in plain language. This helps you avoid risky client expectations and prevents scope creep later.

5. Confirm how many hours you can cover without burning out. A contract sounds great until you realize it requires nights, weekends, and backup coverage every week.

6. Make a staffing decision early: owner-operated, partner-supported, or staff-first. Your setup changes based on whether you can personally fill shifts.

7. Price your services using real costs, not hope. Your rate must cover pay, insurance, admin time, and still leave room for profit.

8. Ask yourself what happens if someone calls out one hour before shift start. If you can’t answer that clearly, you’re not ready to promise coverage.

9. Create a basic contract template before you take on a new client. Even a simple service agreement helps prevent “That’s not what we agreed to” disputes.

10. Prepare a site walk-through checklist to use before accepting a job. You want to see lighting, entrances, traffic flow, and any high-risk areas.

11. Create a post orders template and keep it short and clear. Your guard needs step-by-step direction, not vague goals.

12. Decide what your incident reporting will look like before the first shift. Clients want written documentation when something happens.

13. Choose how you’ll track time and attendance from day one. If your time data is messy, payroll and invoices get messy too.

14. Set up a separate business bank account as soon as you form the business. Keeping business and personal transactions separate helps you stay organized.

15. If you plan to hire early, outline your screening steps in writing. You want consistency, not random decisions based on pressure.

16. Decide if you’ll work only in one city at first or cover a wider area. Wider coverage can raise travel time, fuel use, and supervision challenges.

17. Create a “minimum gear” standard for every guard assignment. A guard without basic equipment can’t do the job well.

18. Make a list of the top five risks in your service lane and plan around them. Examples include trespassing, theft, vandalism, and conflicts at entry points.

19. Define your response boundaries in writing. Security work often involves observation, reporting, and contacting the right people, not acting like law enforcement.

20. Start building relationships with non-competing owners in other areas. One honest conversation can save you weeks of trial and error.

What Successful Security Guard Company Owners Do

21. They treat clear instructions as a product, not an extra. Strong post orders make performance more consistent across different guards.

22. They standardize how guards check in and check out each shift. A simple routine reduces missed coverage and confusion.

23. They keep reporting consistent across every site. Clients trust patterns, not random notes written differently each day.

24. They document everything that matters and keep it easy to find. When a client questions what happened, you need proof fast.

25. They build service packages around outcomes clients care about, like fewer incidents and better access control. Then they back it up with reports and logs.

26. They use site walk-throughs to prevent bad contracts. Seeing the location first helps you price correctly and avoid surprises.

27. They verify guard qualifications before scheduling anyone on a site. If a guard isn’t eligible to work, you don’t want to find out after a complaint.

28. They create a simple escalation plan for every client. Guards should know who to call, when to call, and what details to report.

29. They make professionalism visible with clean uniforms and clear identification. The goal is a confident presence that reassures clients and discourages trouble.

30. They set a written standard for shift notes and incident reports. If it isn’t written, it didn’t happen in the client’s mind.

31. They avoid vague promises like “We’ll handle everything.” Instead, they explain exactly what actions the guard will take in common situations.

32. They keep equipment simple and reliable. Fancy tools don’t matter if batteries are dead or gear is missing.

33. They build a backup roster before they “need” it. The first time you scramble for coverage, you’ll wish you had it ready.

34. They keep client expectations realistic by confirming the scope in writing. A clear scope protects both sides when the pressure hits.

35. They review new client requests for risk and staffing impact before saying yes. Growing too fast can break the quality that earned the contract.

Running the Business (Operations, Staffing, SOPs)

36. Create a master schedule that shows every post, every shift, and every guard assignment in one view. If you can’t see gaps quickly, you’ll miss them.

37. Use a call-out procedure that starts with the fastest option first. You need a system that works at 2 a.m., not just during business hours.

38. Require guards to confirm arrival in a consistent way, every time. A simple “arrived on site” check reduces client complaints.

39. Set a minimum standard for shift readiness, like uniform on, equipment checked, and post orders reviewed. These small steps prevent big failures.

40. Store post orders in a place guards can access without confusion. If they can’t find the instructions, they’ll improvise.

41. Use a daily activity log format that guides what to write. Good logs show time, location, activity, and observations.

42. Create an incident report template that captures the basics: who, what, when, where, and what actions were taken. Consistency matters more than long writing.

43. Set a rule for when a guard must contact a supervisor immediately. This protects your client and keeps guard decisions from drifting.

44. Keep supervisor contact information updated and easy to find. A guard shouldn’t waste time searching for phone numbers during an incident.

45. Decide how clients receive reports and how often. Some want daily reports, others want only incidents, and you should confirm that upfront.

46. Track all equipment issued to each guard. When items disappear, you want a record of who had what and when.

47. Build a uniform policy that matches each site’s expectations. A construction site post may require different gear than a lobby post.

48. If you offer mobile patrol, create a written vehicle policy. Include safe driving rules, fuel procedures, and what to do in a breakdown.

49. Use a standard shift handoff note so important details don’t get lost. “Nothing happened” is not the same as “Here’s what I checked.”

50. Create a plan for handling late arrivals. Even a ten-minute delay can create a client complaint, so you need a clear response.

51. Keep a record of client contacts and their preferred communication method. Some want calls for urgent issues and email for everything else.

52. Set a guideline for guard phone use on post. If you don’t define what’s acceptable, clients will define it for you.

53. Require guards to document unusual activity even if it seems minor. Small patterns can turn into bigger issues later.

54. Train guards to describe facts, not opinions, in reports. Facts hold up better if a client needs documentation for insurance or law enforcement.

55. Build a simple process for replacing a guard who isn’t a good fit for a site. One bad match can damage the whole client relationship.

56. Create a “site rules” checklist for every new contract. Items like access badges, sign-in procedures, and restricted areas should be clarified early.

57. Confirm whether the client expects key control or key logs. If keys are involved, your process must be strict and documented.

58. Keep personnel files organized from day one. A regulated industry can require proof that your hiring and credentials are in order.

59. If you use an outside background screening provider, follow required notice and authorization steps. Keep signed forms stored securely.

60. Set a clear pay schedule and time submission deadline. Late time data can lead to late payroll and low guard retention.

61. Build a billing checklist so invoices match hours worked. If billing is sloppy, you’ll lose trust and delay payment.

62. Create a standard client onboarding routine. Cover the scope, site contacts, reporting expectations, and what “success” looks like.

63. Use a short weekly review to catch problems early. Look for late arrivals, missing logs, and recurring client questions.

64. Keep a written policy for conflicts and de-escalation. Guards should have clear guidance for staying calm and calling for help when needed.

65. Protect private records and client information. Store files securely and limit access to people who truly need it.

What to Know About the Industry (Rules, Seasons, Supply, Risks)

66. Expect licensing rules to vary by state and sometimes by city. Verify requirements with your state licensing office before you advertise services.

67. Many states regulate both the agency and individual guard credentials. Plan for approvals to take time, especially if background checks are involved.

68. Some states require specific insurance coverage or proof of coverage to maintain a license. Treat insurance as part of your readiness checklist, not an afterthought.

69. If you use consumer reports in hiring, you must follow federal rules that apply to employment background checks. Build compliance into your hiring paperwork so it’s consistent.

70. Be careful with how you use criminal history in hiring decisions. Policies that aren’t job-related or aren’t applied consistently can create legal risk.

71. Avoid anything that makes your guards look like law enforcement. Many jurisdictions restrict uniforms, markings, and words that could mislead the public.

72. Understand your authority limits before you write post orders. In most settings, guards observe, report, and contact the right people rather than enforcing laws.

73. Expect clients to ask for proof of insurance and proof of licensing. Keep these documents updated and ready to share when requested.

74. Some clients require guards to follow strict site safety rules, especially in construction or industrial locations. Verify site requirements before accepting the assignment.

75. Workplace violence risk is real in security roles. Create a prevention and response approach that includes training, reporting, and clear escalation steps.

76. Plan for high-risk times like late nights, weekends, and events with alcohol. These assignments often require stronger staffing and tighter reporting.

77. Understand that one serious incident can become a reputation problem. Strong documentation and professional response protect your business during disputes.

78. Don’t assume every contract is worth taking. A client who expects unrealistic results or refuses a clear scope can cost you more than they pay.

79. Budget for equipment replacement and uniform wear. Security gear gets used hard, and a worn look can reduce client confidence.

80. Track changing rules in your state licensing program. Licensing requirements and renewal steps can shift over time, and you want to stay current.

Marketing (Local, Digital, Offers, Community)

81. Build a simple capability statement that explains your services, coverage area, and how clients receive reports. Keep it short so busy managers actually read it.

82. Create a website that makes it easy to contact you and understand your service lane. A confusing site can make you look unprepared.

83. Use clear service descriptions instead of vague claims. Clients want to know what your guards will do on site, not just that you’re “professional.”

84. Focus outreach on roles that buy security services, like property managers and construction supervisors. Reaching the right person matters more than reaching more people.

85. Keep a standard quote process so pricing stays consistent. If every quote is different for the same service, you’ll lose trust.

86. Offer a site walk-through before final pricing. It shows you take risk seriously and helps you avoid underpricing.

87. Collect references and testimonials only from real clients and keep them specific. “Showed up on time and reported daily” is more useful than “great service.”

88. Use local networking where business owners gather, like chambers of commerce and property management events. Many security contracts start through relationships.

89. If you bid on larger opportunities, learn the basics of responding to requests for proposals. Clean documentation can matter as much as price.

90. Create a simple follow-up routine after sending a quote. A polite check-in often turns “maybe later” into a signed contract.

Dealing with Customers (Trust, Education, Retention)

91. Confirm client expectations in writing before the first shift starts. If a client expects tasks you didn’t price for, you want to know early.

92. Ask clients what “success” means to them on that site. Some want fewer incidents, while others want better visitor control and clear reporting.

93. Set reporting frequency up front and stick to it. Consistent updates build trust and reduce surprise calls.

94. Use an escalation contact list for every site. If a situation becomes urgent, guards should know exactly who to call.

95. Keep client communication professional and factual. When emotions run high after an incident, facts protect your business.

96. Handle scope changes with a written update, not a handshake. If the client adds responsibilities, your contract and pricing should reflect it.

97. Schedule a short check-in after the first week of service. Early feedback can prevent long-term frustration and contract loss.

What Not to Do

98. Don’t start taking contracts before you understand your licensing requirements. Operating without required approvals can create penalties and contract problems.

99. Don’t accept a schedule you can’t consistently cover. Missed shifts and late arrivals damage your reputation fast.

100. Don’t underprice to win work and hope it works out later. If your rate can’t support payroll and insurance, the contract becomes a trap.

101. Don’t let reporting become optional. If you can’t prove what happened on a shift, you can’t defend your service quality.

If you’re new to business ownership, don’t try to master all 101 tips at once.

Pick a few that reduce risk first—licensing, clear scope, consistent reporting, and reliable coverage.

Then build from there, one solid system at a time.

FAQs

Question: Do I need a license to start a security guard company?

Answer: In many states, yes, the company needs a license and the guards need separate registration or credentials.

Start by checking your state’s licensing agency for “private security” or “private patrol operator” requirements.

Question: Can I start this business as a one-person company?

Answer: Sometimes, yes, if you take a small contract you can personally cover and your state allows it.

Many owners start small, then hire when they need backup coverage and steady scheduling.

Question: What business structure should I choose at the start?

Answer: Many small businesses start as a sole proprietorship and later form a limited liability company as they grow.

Your choice can affect liability, licensing, and banking, so verify what your state allows for security licensing.

Question: Do I need an Employer Identification Number?

Answer: Many owners get an Employer Identification Number early because it helps with banking, taxes, and hiring.

You can apply directly through the Internal Revenue Service website.

Question: What permits or local approvals might apply besides state licensing?

Answer: Many cities and counties require a general business license to operate locally.

If you lease an office, the building department may require inspections and a Certificate of Occupancy before you move in.

Question: What insurance should I plan for before signing contracts?

Answer: General liability insurance is a common requirement for security contracts and risk protection.

Some states also require proof of insurance or bonding as part of licensing, so confirm that before you apply.

Question: What equipment do I need to launch with the basics covered?

Answer: At minimum, plan for uniforms, clear identification, reliable communication, lighting, and a simple reporting system.

If you offer mobile patrol, add a vehicle plan and roadside safety items.

Question: How do I estimate startup costs for a security guard company?

Answer: Start by listing the essentials you must have on day one, then get real price quotes for each item.

Your totals will change based on scale, staffing, insurance requirements, and how many sites you cover.

Question: How should I set my hourly rate for guard services?

Answer: Your rate must cover wages, insurance, equipment, admin time, and still leave profit for the business.

Build your rate from costs first, then compare it to what the local market supports for your service type.

Question: What should be in my contract before the first shift starts?

Answer: Include the schedule, scope of work, reporting expectations, and what happens if the client requests changes.

Also define how incidents are handled and who the guard contacts for urgent issues.

Question: What are “post orders,” and why do they matter?

Answer: Post orders are written site instructions that tell the guard exactly what to do and what to report.

They reduce confusion and help your service stay consistent even when staffing changes.

Question: How do I screen guards legally if I use background checks?

Answer: If you use a consumer reporting agency, you must follow Fair Credit Reporting Act steps like disclosure and authorization.

Be careful with how you use criminal history, and apply your rules consistently.

Question: Should I hire employees right away or subcontract coverage?

Answer: Some owners start by covering shifts themselves and hiring later, while others hire early for multi-shift contracts.

Subcontracting can be restricted by state rules or client terms, so verify both before choosing that route.

Question: What systems should I set up to run daily operations smoothly?

Answer: Set up scheduling, time tracking, equipment issue records, and a consistent report workflow.

Keep it simple so guards can follow it under pressure.

Question: What reports do clients usually expect from a security company?

Answer: Many clients expect daily activity logs and incident reports when something happens.

Confirm how often they want reports and how they want them delivered before service begins.

Question: How do I prevent coverage failures like late arrivals and no-shows?

Answer: Create a check-in rule for every shift and a backup plan for call-outs.

A coverage business needs a fast replacement process that works any time of day.

Question: How do I market a security guard company without wasting money?

Answer: Focus on direct outreach to decision-makers like property managers, site supervisors, and facility managers.

Offer site walk-throughs and clear scopes, because trust and clarity close more deals than flashy ads.

Question: What numbers should I track to know if the business is healthy?

Answer: Track filled shifts, late starts, incident volume, client complaints, and invoice aging.

These signals help you catch quality issues and cash flow problems early.

Question: What are common mistakes new security company owners make?

Answer: The big ones are taking contracts they can’t staff, underpricing, and starting without clear reporting rules.

Clear scope and consistent documentation protect you when clients ask questions later.

Sources:

California Bureau of Security and Investigative Services: Private Patrol Operators, PPO Insurance Requirement, PPO Fact Sheet
Equal Employment Opportunity Commission: Arrest Conviction Guidance
Federal Trade Commission: Background Screening FCRA, Background Checks Employers
Internal Revenue Service: Get Employer ID Number
New York Department of State: Watch Guard Patrol License
Occupational Safety and Health Administration: Workplace Violence Overview
Texas Department of Public Safety: Private Security Overview
U.S. Small Business Administration: Choose Business Structure