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.

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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
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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 
Research and Development$42,750
Expensed Equipment$42,750
Start-up Assets$0
Cash Required$322,500
Start-up Inventory$52,625
Other Current Assets$222,500
Long-term Assets$125,000
Total Requirements$245,000
Start-up Expenses to Fund$121,875
Start-up Assets to Fund$195,000
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
Liabilities and Capital$0
Current Borrowing$0
Long-term Liabilities$0
Accounts Payable (Outstanding Bills)$0
Other Current Liabilities (interest-free)$0
Planned Investment$0
Investor 1$312,500
Investor 2$0
Additional Investment Requirement$0
Loss at Start-up (Start-up Expenses)$313,125
Total Funding$265,000
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    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.


    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 CustomersGrowthYEAR 1YEAR 2YEAR 3YEAR 4YEAR 5CAGR
    Corporate Sector48%22,33432,34443,66552,54466,43210.00%
    Institutions & Organizations18%11,43313,34416,55318,74520,54513.43%
    Customers & Individuals34%18,32219,45520,65522,86724,43315.32%
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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

    Marc Jacobs

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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.


    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 SalesYear 1Year 2Year 3
    Cyber Security187,330260,320258,240
    Network Assessment802,370815,430823,540
    Firewall & Managed Firewall539,3207702301,002,310
    Next Generation Endpoint Protection265,450322,390393,320
    Dark Web Monitoring Agent1,435,3201,250,4301,762,450
    TOTAL UNIT SALES3,229,7903,418,8004,239,860
    Unit PricesYear 1Year 2Year 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
    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
    Direct Unit CostsYear 1Year 2Year 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 1Year 2Year 3
      Security engineers$133,000$166,000$199,000
      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 1Year 2Year 3
      Plan Month123
      Current Interest Rate10.00%11.00%12.00%
      Long-term Interest Rate10.00%10.00%10.00%
      Tax Rate26.42%27.76%28.12%

      8.2 Brake-even Analysis

      Cyber Security Business Plan - Brake-even Analysis
       Brake-Even Analysis 
      Monthly Units Break-even5530
      Monthly Revenue Break-even$159,740
      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 1Year 2Year 3
      Direct Cost of Sales$15,100$19,153$23,206
      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%
      Sales and Marketing and Other Expenses$1,850$2,000$2,150
      Leased Equipment$0$0$0
      Payroll Taxes$34,510$40,726$46,942
      Total Operating Expenses$188,766$220,744$252,722
      Profit Before Interest and Taxes$105,205$146,040$186,875
      Interest Expense$0$0$0
      Taxes Incurred$26,838$37,315$47,792
      Net Profit$78,367$108,725$139,083
      Net Profit/Sales30.00%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 ReceivedYear 1Year 2Year 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
      ExpendituresYear 1Year 2Year 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
      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   
      AssetsYear 1Year 2Year 3
      Current Assets   
      Accounts Receivable$12,613$14,493$16,373
      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 CapitalYear 1Year 2Year 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
      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 1Year 2Year 3Industry Profile
      Sales Growth4.35%30.82%63.29%4.00%
      Percent of Total Assets    
      Accounts Receivable5.61%4.71%3.81%9.70%
      Other Current Assets1.75%2.02%2.29%27.40%
      Total Current Assets138.53%150.99%163.45%54.60%
      Long-term Assets-9.47%-21.01%-32.55%58.40%
      TOTAL ASSETS100.00%100.00%100.00%100.00%
      Current Liabilities4.68%3.04%2.76%27.30%
      Long-term Liabilities0.00%0.00%0.00%25.80%
      Total Liabilities4.68%3.04%2.76%54.10%
      NET WORTH99.32%101.04%102.76%44.90%
      Percent of Sales    
      Gross Margin94.18%93.85%93.52%0.00%
      Selling, General & Administrative Expenses74.29%71.83%69.37%65.20%
      Advertising Expenses2.06%1.11%0.28%1.40%
      Profit Before Interest and Taxes26.47%29.30%32.13%2.86%
      Main Ratios    
      Total Debt to Total Assets2.68%1.04%0.76%67.10%
      Pre-tax Return on Net Worth66.83%71.26%75.69%4.40%
      Pre-tax Return on Assets64.88%69.75%74.62%9.00%
      Additional RatiosYear 1Year 2Year 3 
      Net Profit Margin19.20%21.16%23.12%N.A.
      Return on Equity47.79%50.53%53.27%N.A.
      Activity Ratios    
      Accounts Receivable Turnover4.564.564.56N.A.
      Collection Days9299106N.A.
      Inventory Turnover19.722.5525.4N.A.
      Accounts Payable Turnover14.1714.6715.17N.A.
      Payment Days272727N.A.
      Total Asset Turnover1.841.551.26N.A.
      Debt Ratios    
      Debt to Net Worth0-0.02-0.04N.A.
      Current Liab. to Liab.111N.A.
      Liquidity Ratios    
      Net Working Capital$120,943$140,664$160,385N.A.
      Interest Coverage000N.A.
      Additional Ratios    
      Assets to Sales0.450.480.51N.A.
      Current Debt/Total Assets4%3%2%N.A.
      Acid Test23.6627.0130.36N.A.
      Sales/Net Worth1.681.290.9N.A.
      Dividend Payout000N.A.

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