Table of Content

    Do you want to start cyber security business?

    Do you want to start a cyber security business? Well, in the modern world of internet and technology, cybercrimes such as stealing personal, financial or national data are committed by people on every scale by the use of computers and internet.

    Starting a cyber security business  will prove extremely beneficial for you as all business owners know the importance of protecting their sensitive data from expert hackers. In case, you don’t know how to start this business, we are providing you a detailed sample business plan for the cyber security business startup named ‘Fiduciary Tech’.

    Executive Summary

    2.1 The Business

    Fiduciary Tech will be owned by Jack Gosling who is a Masters in Information Security and has revolutionary cyber security business ideas. The business is meant to secure the data of its clients from cybercrimes and unnecessary threats.

    2.2 Management

    Jack has obtained the services of experienced and skilled software and computer engineers.

    2.3 Customers

    Our customers will be the business owners, government agencies, and institutes. We’ll secure our customer’s data by blocking its access to unauthorized users.

    2.4 Business Target

    Our target is to balance the initial cost of the startup with earned profits by the end of the first year and to achieve the net profit margin of $10k per month by the end of the first year.

    Cyber Security Business Plan - 3 Years Profit Forecast

    Bank/SBA Business Plan
    Document for raising debt funding from financial institutions to meet the expectations of the banks, SBA, and government agencies.

    Company Summary

    Jack has a Masters degree in Information Security from Harvard University and is expert in the domain of cyber-security. He has been working in Symantec as a Cryptographer for ten years, but now he has decided to start a cyber-security business .

    3.2 Why the Business is being started

    Jack has always been passionate about learning more about securing data from hackers, by starting a cyber-security business. He has a team of excellent security analysts and vulnerability assessors. He wants to use his and his team’s IT skills to avail the cyber security business opportunities.

    3.3 How the Business will be started

    Jack will rent a large office near the Chinatown, Boston. Latest computers, servers, laptops, intrusion detection and prevention systems, anti-malware and other tech things will be purchased for the startup besides the usual inventory. The company will undertake various measures to make sure that employees and networks are secured from unnecessary threats.

    The startup summary is as follows:

    Cyber Security Business Plan - Startup Cost

    The detailed start-up requirements are given below:

    Start-up Expenses  
    Legal $75,500
    Consultants $0
    Insurance $62,750
    Rent $22,500
    Research and Development $42,750
    Expensed Equipment $42,750
    Signs $1,250
    TOTAL START-UP EXPENSES $247,500
    Start-up Assets $0
    Cash Required $322,500
    Start-up Inventory $52,625
    Other Current Assets $222,500
    Long-term Assets $125,000
    TOTAL ASSETS $121,875
    Total Requirements $245,000
    START-UP FUNDING $0
    START-UP FUNDING $273,125
    Start-up Expenses to Fund $121,875
    Start-up Assets to Fund $195,000
    TOTAL FUNDING REQUIRED $0
    Assets $203,125
    Non-cash Assets from Start-up $118,750
    Cash Requirements from Start-up $0
    Additional Cash Raised $118,750
    Cash Balance on Starting Date $121,875
    TOTAL ASSETS $0
    Liabilities and Capital $0
    Liabilities $0
    Current Borrowing $0
    Long-term Liabilities $0
    Accounts Payable (Outstanding Bills) $0
    Other Current Liabilities (interest-free) $0
    TOTAL LIABILITIES $0
    Capital $0
    Planned Investment $0
    Investor 1 $312,500
    Investor 2 $0
    Other $0
    Additional Investment Requirement $0
    TOTAL PLANNED INVESTMENT $695,000
    Loss at Start-up (Start-up Expenses) $313,125
    TOTAL CAPITAL $221,875
    TOTAL CAPITAL AND LIABILITIES $221,875
    Total Funding $265,000

    Any questions? Get in Touch!

    Services for customers

    If you are starting a computer security business, you must focus on the services, you will provide to your customers. This sample business plan of Fiduciary Tech will guide you how to   start your own cyber security business.

    Our services will include:

    • Dark Web Monitoring Agent: This system will detect the compromised credentials associated with your personnel and notify to block his access before they breach your data.
    • Next Generation Endpoint Protection: This system will detect zero-day threats and restore the database in case of attack and recover it from error.
    • Firewall & Managed Firewall: This system will monitor your networks, connected with multiple sources and block sophisticated malicious attacks by using Intrusion Detection and Prevention System.
    • Cyber Security & Network Assessment: This system will protect the client by internal threats by strictly controlling the addition of unauthorized users. This system will ensure that unauthorized users can’t access the internet data and can’t make any changes to lockdown servers and computers.

    Marketing Analysis of cyber security business

    The most deciding and important feature of a cyber security business plan is the accurate marketing analysis. A perfect cyber security company business plan  is the one in which you have mentioned your target customers and devised your policies according to them. Correct marketing analysis of IT security consulting business plan will help you by clearly defining whether the market has the potential of your startup or not.

    For the initial startup, you must formulate a small business cyber security plan template, but if you want to expand your business at a bigger scale, you must seek the services by experts to devise you an IT security business plan  according to your finances and location.

    5.1 Market Trends

    The demand for cybersecurity is increasing day by day. According to a report by IBISWorld, the business is growing at a considerable rate of 5.2% annually. There are about 16,000 cybersecurity centers working in the United States.

    Note

    This business is responsible for the employment of more than 70,000 persons in the U.S. and is generating a revenue of $13 billion per year. This statics clearly demonstrate that the demand of cyber-security business is about to reach the optimal peak in the near future.

    5.2 Marketing Segmentation

    Our business has a worldwide scope, however, we will only target the companies and institutes of Boston at the initial stage. The following groups will prove our major customer’s category.

    Cyber Security Business Plan - Market Segmentation

    5.2.1 Corporate Sector & Business Owners: This target group will comprise of all the hotels, restaurants, real estate owners, manufacturers and distributors, branding agencies and most significantly software development firms. The business owners have now acknowledged that the breaches of their data can have drastic consequences and can even lead to the cessation of their business. So, they will acquire our deft execution services and can concentrate on growing their business without the tension of losing sensitive information.

    5.2.2 Institutions & Organizations: Our second target group comprises of institutions and organizations located worldwide including schools, colleges, and universities, government and public-sector organizations, religious and sports organizations, political parties, etc. These organizations will also need our services for securing their network and server to block the access of unauthorized users to the personal data of the members of those institutes.

    5.2.3 Celebrities & Individuals: Our third target group consists of actors, media persons, sportsmen, bloggers and other people who can need our services if some unauthorized user tries to access their accounts.

    The detailed market analysis of our potential customers is given in the following table:

    Market Analysis
    Potential Customers Growth YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 CAGR
    Corporate Sector 48% 22,334 32,344 43,665 52,544 66,432 10.00%
    Institutions & Organizations 18% 11,433 13,344 16,553 18,745 20,545 13.43%
    Customers & Individuals 34% 18,322 19,455 20,655 22,867 24,433 15.32%
    Total 100% 52,089 65,143 80,873 94,156 111,410 9.54%
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    5.3 Business Target

    • To achieve the net profit margin of $10k/month by the first year, $15k by the second year, and $25k by the third year
    • To balance the initial cost of the startup with earned profits by the end of the first year

    5.4 Product Pricing

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    Product pricing is one of the most important factors in deciding the strategy for any business. The cyber-security services are in great demand due to the advancements in technology to prevent the trade of personal data. However, we have almost the same rates as most of the cyber-security businesses in our vicinity.

    Strategy

    If you are going to start cyber security business, and want to expose your business to a wider audience, there is a way which we call improving sales. For gaining lead upon your competitors, you have to make an exceptional cyber security business model.

    The sample sales strategy of Fiduciary Tech is given for your help.

    6.1 Competitive Analysis

    Our biggest competitive edge is that each member of our team is insured and licensed, besides being skilled and expert, and can resolve any issue regarding cyber-security instantly. We are offering a wide range of services to our customers. Moreover, we are located in an area which is the center of small and large businesses and institutes who need their data to be safe and protected.

    6.2 Sales Strategy

    A startup cannot thrive without proper publicity and advertisements; we will adopt various means to advertise our service.

    • We will hold seminars and workshops to aware business owners about the cybersecurity threats
    • We will advertise our business in relevant business magazines, newspapers, TV stations, and social media.
    • We will offer a 10% discount on our services for the first three months of our launch.
    • We will offer our services with a money back guarantee in case of any fault.

    6.3 Sales Monthly

    Cyber Security Business Plan - Sales Monthly

    6.4 Sales Yearly

    Cyber Security Business Plan - Sales Yearly

    6.5 Sales Forecast

    Cyber Security Business Plan - Unit Sales

    Sales Forecast      
    Unit Sales Year 1 Year 2 Year 3
    Cyber Security 187,330 260,320 258,240
    Network Assessment 802,370 815,430 823,540
    Firewall & Managed Firewall 539,320 770230 1,002,310
    Next Generation Endpoint Protection 265,450 322,390 393,320
    Dark Web Monitoring Agent 1,435,320 1,250,430 1,762,450
    TOTAL UNIT SALES 3,229,790 3,418,800 4,239,860
    Unit Prices Year 1 Year 2 Year 3
    Cyber Security $140.00 $150.00 $160.00
    Network Assessment $600.00 $800.00 $1,000.00
    Firewall & Managed Firewall $700.00 $800.00 $900.00
    Next Generation Endpoint Protection $650.00 $750.00 $850.00
    Dark Web Monitoring Agent $140.00 $120.00 $100.00
    Sales
    Cyber Security $214,800 $274,000 $333,200
    Network Assessment $120,050 $194,500 $268,500
    Firewall & Managed Firewall $50,110 $71,600 $93,000
    Next Generation Endpoint Protection $139,350 $194,600 $249,850
    Dark Web Monitoring Agent $62,350 $72,300 $82,250
    TOTAL SALES
    Direct Unit Costs Year 1 Year 2 Year 3
    Cyber Security $0.70 $0.80 $0.90
    Network Assessment $0.40 $0.45 $0.50
    Firewall & Managed Firewall $0.30 $0.35 $0.40
    Next Generation Endpoint Protection $3.00 $3.50 $4.00
    Dark Web Monitoring Agent $0.70 $0.75 $0.80
    Direct Cost of Sales
    Cyber Security $98,300 $183,000 $267,700
    Network Assessment $66,600 $119,900 $173,200
    Firewall & Managed Firewall $17,900 $35,000 $52,100
    Next Generation Endpoint Protection $19,400 $67,600 $115,800
    Dark Web Monitoring Agent $27,700 $69,200 $110,700
    Subtotal Direct Cost of Sales $294,100 $699,400 $1,104,700

    Any questions? Get in Touch!

    Personnel plan

    After knowing the basics of how to start a cyber security business, the most important step is to hire hard-working, skilled and honest professionals to assist you in running your business. Here is the sample personnel plan of Fiduciary Tech.

    7.1 Company Staff

    Jack will be the manager himself, however, he’ll hire the following staff:

    • 1 Accountant to maintain financial and other records
    • 5 Security Engineers and Architects for developing security software
    • 3 Technicians to operate the servers and other machines
    • 4 Cryptographers & Cryptanalysts for encrypting algorithms
    • 4 Virus Technicians & Vulnerability Officers for analyzing new viruses
    • 2 Managing Assistants to manage the company’s official website
    • 5 Penetration Testers/Ethical Hackers
    • 4 Customer Representatives to interact with customers and record their orders

    7.2 Average Salary of Employees

     Personnel Plan      
    Year 1 Year 2 Year 3
    Accountant $85,000 $95,000 $105,000
    Security engineers $133,000 $166,000 $199,000
    Technicians $35,000 $42,000 $59,000
    Cryptographers $100,000 $133,000 $170,000
    Virus Technicians $63,300 $70,000 $76,700
    Managing Assistants $85,000 $92,000 $109,000
    Penetration Testers $100,000 $133,000 $166,000
    Customer Representatives $85,000 $95,000 $105,000
    Total Salaries $331,300 $411,000 $504,700

    Financial Plan

    If you are going to start your own cyber security business, then make sure you will pay special attention to your financial plan. Your financial plan should include the details about how will you manage your incomes and expenses, and how will you recover investments group business plan from the profit etc. So, you should focus on your financial plan if you want to expand your business at a large scale.

    For if you don’t know how to write an effective financial plan, you can take help from this sample business plan on how to start your own cyber security business. However, it is always better to hire experts for devising you a financial plan, for if you want accurate figures of your business in your financial plan.

    8.1 Important Assumptions

     General Assumptions      
    Year 1 Year 2 Year 3
    Plan Month 1 2 3
    Current Interest Rate 10.00% 11.00% 12.00%
    Long-term Interest Rate 10.00% 10.00% 10.00%
    Tax Rate 26.42% 27.76% 28.12%
    Other 0 0 0

     

    8.2 Brake-even Analysis

    Cyber Security Business Plan - Brake-even Analysis

     Brake-Even Analysis  
    Monthly Units Break-even 5530
    Monthly Revenue Break-even $159,740
    Assumptions:
    Average Per-Unit Revenue $260.87
    Average Per-Unit Variable Cost $0.89
    Estimated Monthly Fixed Cost $196,410

     

    8.3 Projected Profit and Loss

     Pro Forma Profit And Loss      
    Year 1 Year 2 Year 3
    Sales $309,069 $385,934 $462,799
    Direct Cost of Sales $15,100 $19,153 $23,206
    Other $0 $0 $0
    TOTAL COST OF SALES $15,100 $19,153 $23,206
    Gross Margin $293,969 $366,781 $439,593
    Gross Margin % 94.98% 94.72% 94.46%
    Expenses
    Payroll $138,036 $162,898 $187,760
    Sales and Marketing and Other Expenses $1,850 $2,000 $2,150
    Depreciation $2,070 $2,070 $2,070
    Leased Equipment $0 $0 $0
    Utilities $4,000 $4,250 $4,500
    Insurance $1,800 $1,800 $1,800
    Rent $6,500 $7,000 $7,500
    Payroll Taxes $34,510 $40,726 $46,942
    Other $0 $0 $0
    Total Operating Expenses $188,766 $220,744 $252,722
    Profit Before Interest and Taxes $105,205 $146,040 $186,875
    EBITDA $107,275 $148,110 $188,945
    Interest Expense $0 $0 $0
    Taxes Incurred $26,838 $37,315 $47,792
    Net Profit $78,367 $108,725 $139,083
    Net Profit/Sales 30.00% 39.32% 48.64%

    8.3.1 Profit Monthly

    Cyber Security Business Plan - Profit Monthly

    8.3.2 Profit Yearly

    Cyber Security Business Plan - Profit Yearly

    8.3.3 Gross Margin Monthly

    Cyber Security Business Plan - Gross Margin Monthly

    8.3.4 Gross Margin Yearly

    Cyber Security Business Plan - Gross Margin Yearly

    8.4 Projected Cash Flow

    Cyber Security Business Plan - Projected Cash Flow

     Pro Forma Cash Flow      
    Cash Received Year 1 Year 2 Year 3
    Cash from Operations
    Cash Sales $40,124 $45,046 $50,068
    Cash from Receivables $7,023 $8,610 $9,297
    SUBTOTAL CASH FROM OPERATIONS $47,143 $53,651 $59,359
    Additional Cash Received
    Sales Tax, VAT, HST/GST Received $0 $0 $0
    New Current Borrowing $0 $0 $0
    New Other Liabilities (interest-free) $0 $0 $0
    New Long-term Liabilities $0 $0 $0
    Sales of Other Current Assets $0 $0 $0
    Sales of Long-term Assets $0 $0 $0
    New Investment Received $0 $0 $0
    SUBTOTAL CASH RECEIVED $47,143 $53,651 $55,359
    Expenditures Year 1 Year 2 Year 3
    Expenditures from Operations
    Cash Spending $21,647 $24,204 $26,951
    Bill Payments $13,539 $15,385 $170,631
    SUBTOTAL SPENT ON OPERATIONS $35,296 $39,549 $43,582
    Additional Cash Spent
    Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
    Principal Repayment of Current Borrowing $0 $0 $0
    Other Liabilities Principal Repayment $0 $0 $0
    Long-term Liabilities Principal Repayment $0 $0 $0
    Purchase Other Current Assets $0 $0 $0
    Purchase Long-term Assets $0 $0 $0
    Dividends $0 $0 $0
    SUBTOTAL CASH SPENT $35,296 $35,489 $43,882
    Net Cash Flow $11,551 $13,167 $15,683
    Cash Balance $21,823 $22,381 $28,239

    8.5 Projected Balance Sheet

     Pro Forma Balance Sheet      
    Assets Year 1 Year 2 Year 3
    Current Assets
    Cash $184,666 $218,525 $252,384
    Accounts Receivable $12,613 $14,493 $16,373
    Inventory $2,980 $3,450 $3,920
    Other Current Assets $1,000 $1,000 $1,000
    TOTAL CURRENT ASSETS $201,259 $237,468 $273,677
    Long-term Assets
    Long-term Assets $10,000 $10,000 $10,000
    Accumulated Depreciation $12,420 $14,490 $16,560
    TOTAL LONG-TERM ASSETS $980 $610 $240
    TOTAL ASSETS $198,839 $232,978 $267,117
    Liabilities and Capital Year 1 Year 2 Year 3
    Current Liabilities
    Accounts Payable $9,482 $10,792 $12,102
    Current Borrowing $0 $0 $0
    Other Current Liabilities $0 $0 $0
    SUBTOTAL CURRENT LIABILITIES $9,482 $10,792 $12,102
    Long-term Liabilities $0 $0 $0
    TOTAL LIABILITIES $9,482 $10,792 $12,102
    Paid-in Capital $30,000 $30,000 $30,000
    Retained Earnings $48,651 $72,636 $96,621
    Earnings $100,709 $119,555 $138,401
    TOTAL CAPITAL $189,360 $222,190 $255,020
    TOTAL LIABILITIES AND CAPITAL $198,839 $232,978 $267,117
    Net Worth $182,060 $226,240 $270,420

     

    8.6 Business Ratios

     Ratio Analysis        
    Year 1 Year 2 Year 3 Industry Profile
    Sales Growth 4.35% 30.82% 63.29% 4.00%
    Percent of Total Assets
    Accounts Receivable 5.61% 4.71% 3.81% 9.70%
    Inventory 1.85% 1.82% 1.79% 9.80%
    Other Current Assets 1.75% 2.02% 2.29% 27.40%
    Total Current Assets 138.53% 150.99% 163.45% 54.60%
    Long-term Assets -9.47% -21.01% -32.55% 58.40%
    TOTAL ASSETS 100.00% 100.00% 100.00% 100.00%
    Current Liabilities 4.68% 3.04% 2.76% 27.30%
    Long-term Liabilities 0.00% 0.00% 0.00% 25.80%
    Total Liabilities 4.68% 3.04% 2.76% 54.10%
    NET WORTH 99.32% 101.04% 102.76% 44.90%
    Percent of Sales
    Sales 100.00% 100.00% 100.00% 100.00%
    Gross Margin 94.18% 93.85% 93.52% 0.00%
    Selling, General & Administrative Expenses 74.29% 71.83% 69.37% 65.20%
    Advertising Expenses 2.06% 1.11% 0.28% 1.40%
    Profit Before Interest and Taxes 26.47% 29.30% 32.13% 2.86%
    Main Ratios
    Current 25.86 29.39 32.92 1.63
    Quick 25.4 28.88 32.36 0.84
    Total Debt to Total Assets 2.68% 1.04% 0.76% 67.10%
    Pre-tax Return on Net Worth 66.83% 71.26% 75.69% 4.40%
    Pre-tax Return on Assets 64.88% 69.75% 74.62% 9.00%
    Additional Ratios Year 1 Year 2 Year 3
    Net Profit Margin 19.20% 21.16% 23.12% N.A.
    Return on Equity 47.79% 50.53% 53.27% N.A.
    Activity Ratios
    Accounts Receivable Turnover 4.56 4.56 4.56 N.A.
    Collection Days 92 99 106 N.A.
    Inventory Turnover 19.7 22.55 25.4 N.A.
    Accounts Payable Turnover 14.17 14.67 15.17 N.A.
    Payment Days 27 27 27 N.A.
    Total Asset Turnover 1.84 1.55 1.26 N.A.
    Debt Ratios
    Debt to Net Worth 0 -0.02 -0.04 N.A.
    Current Liab. to Liab. 1 1 1 N.A.
    Liquidity Ratios
    Net Working Capital $120,943 $140,664 $160,385 N.A.
    Interest Coverage 0 0 0 N.A.
    Additional Ratios
    Assets to Sales 0.45 0.48 0.51 N.A.
    Current Debt/Total Assets 4% 3% 2% N.A.
    Acid Test 23.66 27.01 30.36 N.A.
    Sales/Net Worth 1.68 1.29 0.9 N.A.
    Dividend Payout 0 0 0 N.A.

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