How to Set Up a Successful Security Company in Australia
This article will focus on Australia, but the information contained in it could assist those outside Australia. So sit and enjoy this rare gem of an article and be on your way to owning a security company/business.
Starting a new security business in Victoria, NSW, NT, QLD, NT, WA, SA, ACT and Australia in general, 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 State’s Police/Departments website or any other website. However, actually obtaining the Private Security Business License is not as easy as it seems.
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There is a lot of paperwork involved, a lot of sub-application, as well as registration with other Government agencies and departments to be completed. 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 have 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 these 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 processes involved. If you are not tough enough it can be quite frustrating due to so many bottlenecks, delays and sometimes outright silence from some of the departments 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 chose to do it alone as 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 would like to assure you of is that you can do it and it is possible. All you need is lots of free time on your hands, research, patience, dedication, passion, and a willingness to learn along the way.
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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 that it doesn’t take you eight months as it took me. At one point, I was almost denied the license due to naivety and a few mistakes that I had 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 will I 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 this; any venture you start in life with genuine intent, passion, and dedication, you are likely to last in 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 there is money 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 true and authentic in nature. When passion is lacking, the will to sustain the business will be lagging too.
Whatever 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 let’s look at how 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 and contracts, and have created a brand name and reputation for themselves.
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 starting a business and they fold up as fast as Usain Bolt.
Some of the reasons why they fold fast:
- They have no idea what they are entering into
- Sharp practices (i.e wage theft, failure to pay taxes to the Government)
- Not making enough money
- Lack of understanding of the current business climate of the security industry
- Lack of good short term and long term strategies
We have spent a considerable amount of time researching, consulting with other specialist business consultants, and 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). However, we felt the information would 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 will give you a head start to start better than we did and succeed even more!
Company Name: First think of a company name that 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 where most businesses were like ‘Jonas & Sons Security Company.’ If you happen to get your security company name right, then you are more likely 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 choose 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 colour you would like to see your security guards’ uniforms, cars, and other equipment in. Decide on something that might be unique 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 a security business plan for sale if you don’t have time to write one yourself.
SOP: Try and get a Standard Operating Procedure for your business and employees. We also offer Australian security standard SOPs for sale if you can’t write one yourself.
ABN/ACN: Get an ABN or ACN depending on the kind of business model you would like to start with (i.e Corporation, Partnership, Soletrader, etc).
Certificate IV: It is good to have a Certificate IV in Security and Risk Management, but if you don’t have that, it shouldn’t be a problem. Make sure you have a Certificate II in Security (Unarmed Guard) and that you been in the security industry for at least five years. If you don’t have either of those, then register as 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 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 In the Application Forms: Go to your State Police website and get the forms by registering 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 Advertisement: A newspaper advertisement will have to be do done seven days after you have submitted your application forms in a state-wide daily publication (Victoria only).
Sub-Contracting: Start networking with more prominent security companies to see if 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 suggest that 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 Nurses, 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. Check your state licensing requirement for Public Liability Insurance.
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, a payment notice will be sent once the application has been submitted. For other states, a payment/check is required whilst submitting your application documents.
Security Enterprise Agreement (Security EBA): To compete for contracts and stay competitive, I will suggest you get a Security Services Enterprise Agreement for your security company. In some states, local and private businesses would only consider your tender proposal or contract bid if you have an Enterprise Agreement. It provides these entities with the assurance that your business is likely to meet its payment obligations to its employees, and that they won’t have to face overtime or weekend rates back payment issues in the future.
To learn more, read the below article/blog:
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 and 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 using the services of other experts then you should have at least $20,000 – $45,000. If you will be doing most of the accounting, marketing, SEO web development yourself, then around $6,000 – $12,000 should do.
As I said, there are categories of security companies but for a proper professional startup security company, the above should be your minimum cost. You don’t necessarily need to have the whole amount at once, but 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: A 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 WorkCover 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, then contact Security Concepts Services Consulting. We promise to help set up your business, help fill paperwork, build your website, design advanced marketing strategy, content writing, SOPs, Business Plans, and other business documents. Take note, we don’t cut corners, we do it cleanly and professionally!
Why you may require our services? We will provide all the services under one roof and also help with documents like Business Plans, SOPs, and other documents that could cost you lots of money to purchase 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 to 8 weeks. You should be able to go for security contracts within 2 to 3 months after this (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 timeframe.
Security Coaching For Your Guards: Our security consultant can come and speak/coach your security team to motivate them to improve output at your client sites. Our coaching does not stop with security. We offer to purchase 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, which is claimable on tax.
Also, see our articles:
- Before you start a security guard company read this
- How much should my security company charge
- Importance of training and inducting every new security employee you hire
Security Company SEO and Marketing
If you require SEO for your security company or SEO for your security business, then please get in touch with us today. We are a Security Guard and Consulting Business with proven results in SEO and SEO marketing content.
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
To purchase our custom design SOPs or to purchase our Security Starter Pack (SOPs, Security Employment Contract Letter, Security Training Manuals, Security Hire Prices and Proposal Template) and instant download, please click on the button below:
Also, see our article:
Please check the following links for details on how to obtain a security business license in each State or Territory:
Also, check out our blog Easy steps to become a private security guard.
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Please email us if you are interested in buying the security, cleaning the side of the business, with 1x contract and multiple ongoing clients.
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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.