How to Set up a Successful Security Company in Australia
This article will focus on Australia, but the information contained in it could help even if you are outside Australia. So sit and enjoy this rear gem of an article and be on your way to owning a security company/business.
Starting a new security business in Victoria, Australia, can be daunting and challenging. Yes, it is easy to find information on how to obtain the Private Security Business License on the Victorian Police or other States Police/Departments website or any other website. But getting the Private Security Business License is not as easy as it seems.
There is a lot of paper works involved, a lot of sub-application, registration to be done with other different Government agencies and departments. There are a few meetings and appointments you will have to hold before you even submit your application form. Sometimes that sub-application could be with Overseas Governments (if you had lived overseas), private companies and businesses.
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A respected security professional in Victoria (names withheld) charges up to $15,000 to set up a Private Security Business for his clients, which includes license and website, documentation, etc. I believe that fees may be expensive to some. But after setting up a private security business myself, I realize it is time-consuming and requires a lot of information, documentation, and understanding of the process. And if you are not tough enough it could be frustrating, due to so many bottlenecks, delays and sometimes outright silence from some of the department you will be dealing with.
I would like you to note; you don’t just set-up and get a private security business license within weeks. In my case, because I choose to do it alone and I was a novice. I started the process in January and finally got my private security business license in August.
Getting the license is different from setting up a security business. I once found a company that was selling its security business license for $20,000. Just the license alone.
Setting up a security business and obtaining a private security license are two distinct processes. And it is time-consuming and challenging.
But one thing I like to assure you is, you can do it, it is possible. All you need is lots of free time in your hands, lots of research, patience, dedication, passion and be willing to learn along the way.
Less Than Half The Time
One of the purposes of writing this article is to help you with the basic information that you might need for a start. So, it doesn’t take you 8 Months as it took me. At a point, I almost got denied the License due to naivety and a few mistakes I made in the process.
Also, you must ask yourself a few questions before you start:
- Why do I want to start a Security Guard Company?
- Do I have the passion to run and own a Security Company?
- Is this the right Business for me to go into?
- Do I need a partner or go alone?
- Do I have the money to start a Security Company?
- How much does it take to start a Security company?
The reason I want you to ask yourself a few hard questions is; any venture you start in life with genuine intent, passion and dedication, you are likely to last longer, succeed and stand in the face of adversity that may come your way. Many people start a particular enterprise because they are bored, someone is doing it, or maybe they believe money is in it. Sometimes even with such intent, they succeed. But on most occasions, they give up, the business folds up, or they don’t find happiness in what they are doing. Why so? because the basic fundamental principles of starting that venture might not be. When passion is lacking, the will to sustain the business will be lagging too.
Whatsoever is the reason for starting a private security business; I would like you to know something, put your heart and mind in it and go for it.
Successful Security Business
Now, starting a security business might be a daunting task; but how do you begin a ‘successful’ security business? You have to understand that the security industry is an already saturated industry, there are old players in the game who have cornered all the security jobs, contracts and they have created a brand name and reputation.
How do you create a niche for your business? How do you compete against these established players?
The security industry is one where you find so many people start a business, and they fold up as fast as Usain Bolt.
Some of the reasons why they fold fast?
- They fold up quickly because they have no idea what they are running into
- Because of sharp practices i.e wage theft, not paying taxes to the Government
- Not making enough money
- Lack of understanding of the current business clime of the security Industry
- Lack of good short term and long term strategy.
We have spent a considerable amount of time researching, consulting with other specialist business consultants, and we have come to discover formulas on setting up a successful security business. After making this discovery, we were tempted to write a book about it, like our published security book (Security Adventure Service). But, we felt the information will benefit a much larger number of people for free.
Take note we run a security guards hire and consulting business. So, the information we will be providing here today is to give you a headwind start, so you start better than we did and succeed even more!
Company Name: First think of a company name you would like for your security business. You have to understand we are in a digital age, so you must come up with a creative name that will also serve as a keyword for your business. Gone are the days most businesses were like ‘Jonas & Sons Security Company.’ If you happen to get your security company name right, the more likely you are to stay competitive and succeed.
Company Logo: Think of what you would like included in your security company logo. If you can’t think of anything, then ask the logo designer to present a few design options to chose from.
Pricing: This is one of the most challenging parts, setting up the correct pricing for your business clients. Make sure you get it right from the get-go. Security Concepts Services can help you create a 2x-x3 price list if you are unable to do it yourself.
Company Colours: Think of what color you would like to see your security guards’ uniforms, cars in. Decide on something that might be unique just to your business or something that could be easy to purchase but also stands out from the rest.
Business Plan: Try and write a business plan, what you aim to achieve, and how you think the business will run and be like in a few years; we also offer security business plan for sale if you don’t have time to write one yourself.
SOP: Try and get a Standard Operating Procedures for your business and employees, we also offer Australian security standard SOP for sale if you cant write one yourself.
ABN/ACN: Get an ABN or ACN number depending on the kind of business model you would like to start with (i.e Corporation, Partnership, Soletrader, etc).
Cert IV: It is good to have Certificate IV in Security and Risk Management, but if you don’t have that, that shouldn’t be a problem. Make sure you have Cert II in Security (unarmed guard) and at least been in the Security Industry for up to five years. If you don’t have either of those, then register and be a member of ASIAL or any recognized security Industry body in Australia and that should do.
Registered for GST: Register your business for GST, either from the get-go, or later on when you cross a certain income threshold.
National Police Check: You will need to apply for a National Police Check. If you haven’t been fingerprinted before, you will have to be fingerprinted, and Police Checked. National Police Check/Fingerprint should be one of the first things done before filling up the forms. You will not require a Police Check in Victoria if you hold a valid Private security guard license.
Also, you must provide a copy of the Police Clearance Certificate from each Country you have lived in for more than 12 months in the past 5-10 years.
Fill Up Application Forms: Go to your State Police website and get the forms, register in their ePortal; all applications may be submitted online or hard copies depending on your State. Please check the bottom of this blog for your State or Territory.
Business Viability: Evidence of financial viability and declaration by a Chartered accountant
Newspaper Add: A Newspaper add will have to be do done, seven days after you have submitted your application forms on a state-wide daily ( Victoria only).
Sub Contracting: Start networking with more prominent security companies and see how you can be their sub-contractor. But only do that once you have been issued with a copy of your security business license.
Eligibility: If you have been Insolvent, bankrupt or had any conviction or criminal records in the past five years, you may be refused a private security business license. Also, if you held a Private Security License that was canceled, suspended or denied renewal, I will suggest you contact your State Private Security Licensing Department and inform them of your situation.
Suitability Reference: You may also require 2x referees to fill in reference forms (Close Friend (WA only), Medical Doctors, Registered Nurse, School Principal Accountants, etc.)
Residency: You must be a Citizen, Permanent Resident or hold a Visa that permits you to start a business in Australia.
Competency Requirements: You must show you are competent to run a security business (Resume, Business Plan, SOP, Training Course)
Employer Responsibility: Stating you understand your responsibility to pay employees the right wages, superannuation, taxes, Insurance, etc.
Evidence of Public Liability Insurance: Certificate of Currency with the listed sub-activities on the License application. Take note-using only insurance companies that are specialists in the security industry, if not they will charge you astronomical fees that you can’t afford.
Reference Certifying Identity Documents: Identity documents and copies must be certified by your reference or JP etc.(Passports, Evidence of Residency, Birth Certificate etc.)
Payment Notice: In Victoria payment notice will be sent once the application has been submitted, other, other states require payment/check whilst submitting your application documents.
How Much Does it Cost to Start a Security Company?
So many factors have to be considered first; such as the scale of the security company, the location of the security company. Whether you are starting from home or you want to rent a security office. You may also ask yourself whether you will be using the services of payroll officers, marketing companies, web developers, etc.
I will put it this way, if you will be requiring the services of other experts then you should have at list $20,000 – $45,000. If you will be doing most of the accounting, marketing, SEO web development stuff yourself, then around $6,000 – $12,000 should do.
As I said, there are categories of security companies; but a proper professional startup security company, the above should be your minimum cost. You don’t necessarily need to have the whole cash at once, you could be injecting the cash little by little to get to that amount.
Essential Things to do Before you Start Operating Your Security Business:
- Labour Hire Registration: Few states in Australia classify security as a Labour Hire Business. So, that means you must have a Labour Hire License from these states (3) and Territory before you can operate a security guard company. Failure to register your security business as a Labour Hire Business can lead to a fine of between $50,000 – $500,000 :
- Victoria Labour Hire Authority
- Labour Hire License Queensland
- South Australia Labour Hire
- Canberra (to start in 2021)
- Western Australia (Soon to be introduced)
- Tas, NT, NSW (none at the moment)
- Work Cover: It is important to have a work cover certificate of your state and Territory:
- Victoria WorkCover
- NSW WorkCover
- QLD WorkCover
- WA WorkCover
- SA WorkCover
- NT WorkCover
- TAS Work Cover
- ACT WorkCover
- Victoria Portable Long Service Leave Authority; in the state of Victoria, your security business must be registered for Portable Long Service Leave:
Security Business and Security License Set Up Services
We can help cut all these long processes short for you. If you are unable to set up your security business/license due to time constraints, or any other challenges or you want it done professionally. Contact Security Concepts Services Consulting. We promise to help set up your business, help fill paperwork, build your website, design advanced marketing strategy, contents writing, SOP, Business Plan, and other business documents. Take note we don’t take corners we do it cleanly and professionally!
Why you may require our services? We will provide all the services under one roof, we will also help with documents like Business Plan, SOPs and other documents that could cost you lots of money to get them separately. We will also help create New Employee Documents, Client Rates, and Booking Forms and offer you free start-up advice for 1-3 months after you secure your license or start your business.
Our Promise: We will help you get your license within 4 weeks to 8 weeks. And you should be able to go for security contracts within 2 to 3 months after(we will help you with the process and materials you will need).
Conditions: You must have a smooth record to obtain the license and you must be prepared to work with us in the process to achieve this timeline.
Send us an email today and learn of more about our security business, master and agent license package, we only charge a fraction of what other agents charge and we will deliver a far superior service and result for you in a short time frame.
Security Coaching For Your Guards: Our security consultant can come and speak/coach your security team- motivate them to help improve output at your client sites. Our coaching does not stop with security. We offer ‘For Sale’ our Award-nominated security guard book ‘ Security Adventure Service.’ This book is a vital training resource for your security officers, and we offer massive warehouse discount prices for large quantity orders from security companies, and you can claim it on tax.
Also, see our article:
Security Company SEO and Marketing
If you require SEO for your security company or SEO for your security business, please get in touch with us today. We are security Guards and Consulting Business, we have proven results for SEO and SEO marketing contents.
We can also OFFER SEO for other industries aside from security.
Security Companies Start-Up Documents
We have for sale the following documents, and they are standard documents that will meet Police or any Government regulatory agencies standards for Security Business License Application. Please send us an email to inquire.
- Security Company Business Plan (Business Plan for Security Companies)
- Security Company Site Operating Procedures (SOP for Security Companies)
- Business Plan for Cleaning Business
- SOP for Cleaning Business
Also, see our article:
Please check the following links for details of how to obtain security business license in each
Also, check out our blog ‘ Easy steps to become a private security Guard.’
NOTE: If you are in Victoria and you have got a Security Contract/Retainer that has bee made available to you and you don’t have a security company/license. Send us an email and will be willing to take on the Contract/Retainer, and we will split the Margin 50/50 throughout the Contract/Retainer. Take note we pay all our guard’s award Wage. We may consider Interstate opportunities and every agreement will be on paper and signed by both parties.
If you require other security guarding services or security consulting services please contact us today: firstname.lastname@example.org or call 1300 044 989.
Disclaimer: security concepts services-consulting does not issue security business license of any kind, we only assist individuals/entities in their application process to get a security business license.