Table of Content

    Do you want to start a Private Security business plan?

    Security is one of the biggest concerns in the world right now. It has always been important to keep not only valuable items but also information secure and out of the wrong hands. Therefore, there is a significant need for investment in the business plan related to private security firms. 

    Developing a business plan for a security company involves much more than coming up with a cool slogan. Much like a window cleaning business plan, you will need to learn how to write a business plan for a security company. 

    Here, we are presenting the business plan for Diamond Phase, a private security firm. You can use this business plan to develop a plan for your own business. So, whatever the scale of your business, this template can act as a great help to design a successful business model.

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    Executive Summary

    2.1 About the Business 

    Diamond Phase will be a security firm started by Jacque Hail. The firm will provide help with business planning process for security systems in different residential and commercial sectors. The company will offer a wide range of services, from securing full-fledged security systems for whole buildings to offering small-scale security services for a particular office or space. 

    2.2 Management of Private Security Firm

    Business plans for security companies need to be very thorough as they provide a very important service. The business needs to be well-managed to ensure proper functioning after the launch. This can be achieved through a security company business plan template like the one given here. 

    You can also refer to professional business plan services to get an operational plan developed. If you possess some experience and you want to develop your plan on your own, you may take guidance from this security guard company business plan. 

    2.3 Customers of Private Security Firm

    The customers of Diamond Phase will belong to different scales of operations. As such, our customers for a basic business plan security are as follows:

    • Residential Community
    • Small/ Large Businesses
    • Jewelry Stores
    • Highly Sensitive Areas

    2.4 Business Target

    The target of Diamond Phase is to establish itself as a major player in the private security business in Portland. We want to be known as the most efficient security solution in Portland within two years of the launch. 

    Furthermore, the financial targets we want to achieve within five years of operation are as follows:

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    Company Summary

    3.1 Company Owner

    The owner of the company will be Jacque Hail. Jacque worked as a security manager in a top security firm for two years. Before this, he attained his education in computer forensics and networks. He realized that he could utilize his experience and education to start a new security firm of its kind. And thus, Diamond Phase was ideated. 

    3.2 History of Diamond Phase

    While working as a security manager, Jacque saw that a lot of his clients required not only physical security measures but also computer network safety. Considering the rapid increase in the penetration of technology in every sector of the market, Jacque decided to present a business model that improved upon existing physical and computer security businesses. 

    3.3 How the Private Security company will be started

    Step1: Ideate the Business

    The first part of any security business plan sample is the description of the company that you are trying to start. Nothing happens without an idea. Therefore, Jacques decided to build on his dream and create a concrete idea for his business plan of a security company. 

    Step2: Research and Analysis

    The next step to starting a business is to look into your market. This will help you filter out your major competitors and entry points in the market which can help you get ahead in the competition. As part of this security company business plan pdf, Jacque did comprehensive research about the security industry to identify his competitors. 

    Step3: Register the Business  

    Once Jacque knew that his business idea was viable, he looked into as many security company business plan examples as he could to learn the process of registration. He not only registered the company name to the state but also registered the space for a main office in the Portland commercial center.

    Step4: Go Online

    One of the best ways to advertise a business is through online ads and social media. Therefore, Jacque decided to hire a sales team with a social media sub-team to help with advertisement and the online existence of the company. 

    Step5: Know Your Finances


    Another important part of any business plan, even a plumbing company business plan, is the financial planning of its operations. To manage this, Diamond Phase will have a financial plan developed by a business consultancy firm.

    Start-up Expenses  
    Legal $118,400
    Consultants $0
    Insurance $25,100
    Rent $31,800
    Research and Development $10,000
    Expensed Equipment $52,200
    Signs $3,400
    Start-up Assets $251,400
    Cash Required $181,000
    Start-up Inventory $35,100
    Other Current Assets $218,000
    Long-term Assets $217,000
    TOTAL ASSETS $902,500
    Total Requirements $1,143,400
    Start-up Expenses to Fund $240,900
    Start-up Assets to Fund $902,500
    Non-cash Assets from Start-up $1,189,000
    Cash Requirements from Start-up $115,800
    Additional Cash Raised $50,000
    Cash Balance on Starting Date $35,000
    TOTAL ASSETS $1,389,800
    Liabilities and Capital
    Liabilities $18,200
    Current Borrowing $0
    Long-term Liabilities $0
    Accounts Payable (Outstanding Bills) $61,580
    Other Current Liabilities (interest-free) $0
    Planned Investment $1,143,400
    Investor 1 $0
    Investor 2 $0
    Other $0
    Additional Investment Requirement $0
    Loss at Start-up (Start-up Expenses) $246,400
    TOTAL CAPITAL $1,389,800
    Total Funding $1,143,400
    Any questions? Get in Touch!


    The services of a business are its basis and the reason it exists. Before you start writing business plan for a security service company, you need to be very clear about the types of services you will be offering. This will not only help you to properly write a business plan for a private security company but also guide you throughout the operational years of your business. 

    To write a private security business plan for his company, Jacques decided to lean back on his market research. It is because he knew that each sample business plan for security services decides its services according to market needs. From this research, he decided upon a list of services to include in this template to learn how to start a security company pdf. 

    The general services for a private security firm are listed below. Some of these are identical to those mentioned in the locksmith business plan.

    • Security Guards

    The biggest service offered by Diamond Phase will be to provide teams of security guards for the maintenance of a manual security system in a commercial or residential area. The number and requirements of these guards will be agreed upon by the company and its clients. The guards will be hired and trained by the company and will work on a contract basis for our customers. 

    • Automated Setups

    Many places don’t require huge teams dedicated to security. For instance, security concerns in residential areas and homes can be handled by automated systems with just one physical team on site. To promote the efficient use of resources, Diamond Phase will provide state-of-the-art automated security systems to its customers. 

    • Training

    Not only will the company provide trained security personnel, but it will also provide training for the guards hired by our customers. The customers can hire us to provide regular sessions for proper training of their staff in electronic as well as manual security niche. 

    • Network Security

    As part of its hybrid business model, Diamond Phase will offer not only physical and automated security but also network security and maintenance personnel if needed by its data-sensitive clients.

    Marketing Analysis of Private Security Company

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    A security guard business proposal needs to contain everything from the preliminary idea of the business to the basic viability guarantees of the business. To establish a security business star up, you will need a comprehensive security systems business plan that contains all the details to make the business viable for existence. 

    For his business plan for a security company, Jacque used his market research to build a strong case for starting Diamond Phase. If you want to learn how to start a private security company from scratch, you can follow this business plan for a security company pdf. You can also learn the basic idea from other plans, such as a dog training business plan.

    Here, we will present the marketing analysis and details for Diamond Phase, through which you can learn how to open up a security company that can succeed. 

    5.1 Market Trends

    According to Statista, the private security industry in the US already has a market share of $32 billion, which is a $1 billion increase from 2019. The market is consistently growing with an increase in valuable projects, businesses, and residential areas. Therefore, this is the prime time to learn how to start a security agency as it will help the new business become a part of the growth spurt. 

    5.2 Marketing Segmentation

    The customers targeted by Diamond Phase are as follows:

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    5.2.1 Residential Community

    The main customers of our company will be residential areas that require not only an automated security system in each home but also centralized security teams in place to deal with a breach. We expect to gain about 60% of our customer base from this domain. 

    5.2.2 Small/ Large Businesses

    We will also provide automated systems, network security services, and small batches of guards to small and large businesses. Mostly, these businesses will require a few guards and a basic automatic security system linked to the police. 

    5.2.3 Jewelry Stores

    Our company will also serve Jewelry stores that require a state-of-the-art automatic security system as well as an equipped security team that can respond in a short time. 

    5.2.4 Highly Sensitive Areas

    Lastly, Diamond Phase is aware that there are warehouses and hidden locations that often need security. We expect to come into business contracts with large companies.

    Market Analysis
    Potential Customers Growth Year 1 Year 2 Year 3 Year 4 Year 5 CAGR
    Residential Community 40% 46,110 55,332 66,398 79,678 95,614 10.00%
    Businesses 36% 41,110 49,332 59,198 71,038 85,246 10.00%
    Jewellery Stores 16% 16,140 19,368 23,242 27,890 33,468 10.00%
    Sensitive Areas 8% 19,100 22,920 27,504 33,005 39,606 11.00%
    Total 100% 122,460 146,952 176,342 211,611 253,933 10%


    5.3 Business Target

    • Establish ourselves as an efficient and versatile one-stop solution in the market.
    • To attain a customer satisfaction score of 98% within the first 6 months.
    • To slowly expand our client base to include multinational corporations.

    5.4 Product Pricing

    The prices of our products will be competitive with the market baselines. We will offer a wide range of services to choose from so that our clients don’t have to look towards any other firm for full-coverage security solutions.


    Setting up a security firm can be tough from a market standpoint. Most places already have trusted firms that they use for security systems. So, it can be hard starting a private security company in such an environment. To deal with these hardships, Jacque decided to come up with competitive advantages from the very beginning. His compelling sales strategy and competitive advantages are given in this business plan of a security company.

    So, just as a dog daycare business plan can help a dog daycare business prosper, a business plan targeted at a security firm can help it succeed as well. Therefore, if you want to learn how to start a private security firm, you can go through the plan developed by Jacque for Diamond Phase. 

    6.1 Competitive Analysis

    • We have a versatile business that offers security in 3 dimensions: manual, automatic, and communication network.
    • Our customers can get one-stop solutions at our company, eliminating the need for multiple security systems.
    • We have systems in place for training clients’ own employees and guards.

    6.2 Sales Strategy

    • We will offer comprehensive security packages based on a client’s needs.
    • The services of our security analyst to design the security system will be free for clients.
    • We will offer a money-back guarantee in case of any issues within the first year.

    6.3 Sales Monthly

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    6.4 Sales Yearly

    6.5 Sales Forecast

    Sales Forecast      
    Unit Sales Year 1 Year 2 Year 3
    Security Guards 350 371 393
    Automated Setups 450 477 506
    Training 250 265 281
    Network Security 450 477 506
    TOTAL UNIT SALES 1,500 1,590 1,685
    Unit Prices Year 1 Year 2 Year 3
    Security Guards $2,500.00 $2,900.00 $3,364.00
    Automated Setups $2,000.00 $2,320.00 $2,691.20
    Training $3,500.00 $4,060.00 $4,709.60
    Network Security $2,550.00 $2,958.00 $3,431.28
    Security Guards $875,000.00 $1,075,900.00 $1,322,926.64
    Automated Setups $900,000.00 $1,106,640.00 $1,360,724.54
    Training $875,000.00 $1,075,900.00 $1,322,926.64
    Network Security $1,147,500.00 $1,410,966.00 $1,734,923.79
    TOTAL SALES $3,797,500.00 $4,669,406.00 $5,741,501.62
    Direct Unit Costs Year 1 Year 2 Year 3
    Security Guards $1,000.00 $1,100.00 $1,155.00
    Automated Setups $1,250.00 $1,375.00 $1,443.75
    Training $1,200.00 $1,320.00 $1,386.00
    Network Security $1,500.00 $1,650.00 $1,732.50
    Direct Cost of Sales
    Security Guards $350,000.00 $408,100.00 $454,215.30
    Automated Setups $562,500.00 $655,875.00 $729,988.88
    Training $300,000.00 $349,800.00 $389,327.40
    Network Security $675,000.00 $787,050.00 $875,986.65
    Subtotal Direct Cost of Sales $1,887,500.00 $2,200,825.00 $2,449,518.23

    Personnel plan

    When learning how to open up a security company, you need to go into details such as which type of workforce can help you maintain and run the business. Every private security company business plan contains these details.

    The employees Jacque decided to hire for Diamond Phase are listed below in this business plan for a security company pdf. 

    7.1 Company Staff

    • 1 Co-Manager to help in overall operations
    • 20 Trained Guards
    • 2 Trainers
    • 2 Sales Executives to promote sales
    • 1 Accountant
    • 3 Drivers
    • 1 Receptionist

    7.2 Average Salary of Employees

     Personnel Plan      
    Year 1 Year 2 Year 3
    Manager $30,000 $33,000 $36,300
    Trained Guards $445,000 $489,500 $538,450
    Trainers $62,500 $68,750 $75,625
    Sales Executives $62,500 $68,750 $75,625
    Accountant $22,500 $24,750 $27,225
    Drivers $62,500 $68,750 $75,625
    Receptionist $22,500 $24,750 $27,225
    Total Salaries $707,500 $778,250 $856,075


    Financial Plan

    If you are new to the security domain, you may be wondering what you need to start a security company. The truth is, there are a lot of components that make a business plan security company successful. One of the essential components is the financial planning of the business. 

    Financial planning can include details ranging from how much it costs to start a security company to the rates for your services. For the financial planning of the Diamond Phase, Jacque dived deep into the profit vs. cost analysis of services to ensure the sustainable working of the business.

    The financial plan for the Diamond Phase with all its details is demonstrated below for a better understanding.

    8.1 Important Assumptions

     General Assumptions      
    Year 1 Year 2 Year 3
    Plan Month 1 2 3
    Current Interest Rate 8.12% 8.20% 8.26%
    Long-term Interest Rate 8.40% 8.44% 8.47%
    Tax Rate 24.03% 24.21% 24.60%
    Other 0 0 0
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    8.2 Break-even Analysis

     Break-Even Analysis  
    Monthly Units Break-even 5340
    Monthly Revenue Break-even $132,500
    Average Per-Unit Revenue $231.00
    Average Per-Unit Variable Cost $0.62
    Estimated Monthly Fixed Cost $163,800

    8.3 Projected Profit and Loss

     Pro Forma Profit And Loss    
    Year 1 Year 2 Year 3
    Sales $3,797,500 $4,669,406 $5,741,502
    Direct Cost of Sales $1,887,500 $2,200,825 $2,449,518
    Other $0 $0 $0
    TOTAL COST OF SALES $1,887,500 $2,200,825 $2,449,518
    Gross Margin $1,910,000 $2,468,581 $3,291,983
    Gross Margin % 50.30% 52.87% 57.34%
    Payroll $707,500 $778,250 $856,075
    Sales and Marketing and Other Expenses $145,000 $148,000 $156,000
    Depreciation $2,300 $2,350 $2,500
    Leased Equipment $0 $0 $0
    Utilities $2,900 $3,000 $3,100
    Insurance $2,100 $2,100 $2,100
    Rent $2,900 $3,000 $3,200
    Payroll Taxes $24,000 $25,000 $27,000
    Other $0 $0 $0
    Total Operating Expenses $886,700 $961,700 $1,049,975
    Profit Before Interest and Taxes $1,023,300 $1,506,881 $2,242,008
    EBITDA $1,023,300 $1,506,881 $2,242,008
    Interest Expense $0 $0 $0
    Taxes Incurred $204,660 $301,376 $448,402
    Net Profit $818,640 $1,205,505 $1,793,607
    Net Profit/Sales 21.56% 25.82% 31.24%

    8.3.1 Profit Monthly

    8.3.2 Profit Yearly

    8.3.3 Gross Margin Monthly

    8.3.4 Gross Margin Yearly

    8.4 Projected Cash Flow

     Pro Forma Cash Flow      
    Cash Received Year 1 Year 2 Year 3
    Cash from Operations
    Cash Sales $51,000 $55,080 $59,486
    Cash from Receivables $22,000 $23,760 $25,661
    SUBTOTAL CASH FROM OPERATIONS $73,000 $79,570 $85,936
    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 $74,000 $79,000 $85,000
    Expenditures Year 1 Year 2 Year 3
    Expenditures from Operations
    Cash Spending $42,000 $42,000 $45,000
    Bill Payments $27,000 $28,000 $31,000
    SUBTOTAL SPENT ON OPERATIONS $69,000 $70,000 $76,000
    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 $69,000 $74,520 $80,482
    Net Cash Flow $21,000 $23,000 $25,000
    Cash Balance $27,000 $30,000 $33,000

    8.5 Projected Balance Sheet

     Pro Forma Balance Sheet    
    Assets Year 1 Year 2 Year 3
    Current Assets
    Cash $275,000 $308,000 $338,800
    Accounts Receivable $24,000 $26,880 $30,213
    Inventory $4,300 $4,816 $4,900
    Other Current Assets $1,000 $1,000 $1,000
    TOTAL CURRENT ASSETS $282,000 $315,840 $355,004
    Long-term Assets
    Long-term Assets $10,000 $10,000 $10,000
    Accumulated Depreciation $19,400 $21,728 $24,444
    TOTAL LONG-TERM ASSETS $24,400 $27,328 $30,744
    TOTAL ASSETS $294,000 $329,280 $370,440
    Liabilities and Capital Year 4 Year 5 Year 6
    Current Liabilities
    Accounts Payable $18,700 $20,944 $23,541
    Current Borrowing $0 $0 $0
    Other Current Liabilities $0 $0 $0
    SUBTOTAL CURRENT LIABILITIES $19,000 $21,280 $23,919
    Long-term Liabilities $0 $0 $0
    TOTAL LIABILITIES $15,000 $16,800 $18,883
    Paid-in Capital $30,000 $30,000 $31,000
    Retained Earnings $53,000 $57,770 $63,547
    Earnings $193,400 $210,806 $231,887
    TOTAL CAPITAL $285,000 $310,650 $341,715
    TOTAL LIABILITIES AND CAPITAL $300,000 $329,280 $370,440
    Net Worth $293,400 $319,806 $351,787

    8.6 Business Ratios

     Ratio Analysis        
    Year 1 Year 2 Year 3 INDUSTRY PROFILE
    Sales Growth 7.25% 8.03% 8.90% 3.00%
    Percent of Total Assets
    Accounts Receivable 9.21% 10.20% 11.31% 9.80%
    Inventory 5.39% 5.97% 6.62% 9.90%
    Other Current Assets 2.11% 2.34% 2.59% 2.40%
    Total Current Assets 149.80% 151.00% 152.00% 158.00%
    Long-term Assets 11.55% 11.60% 11.64% 12.00%
    TOTAL ASSETS 100.00% 100.00% 100.00% 100.00%
    Current Liabilities 4.90% 4.94% 4.98% 4.34%
    Long-term Liabilities 0.00% 0.00% 0.00% 0.00%
    Total Liabilities 7.59% 7.65% 7.72% 7.38%
    NET WORTH 100.45% 101.25% 102.19% 110.00%
    Percent of Sales
    Sales 100.00% 100.00% 100.00% 100.00%
    Gross Margin 94.60% 97.15% 99.87% 99.00%
    Selling, General & Administrative Expenses 93.56% 96.09% 98.78% 97.80%
    Advertising Expenses 1.52% 1.56% 1.60% 1.40%
    Profit Before Interest and Taxes 41.50% 42.62% 43.81% 33.90%
    Main Ratios
    Current 34 35 36 32
    Quick 33 33.8 34.645 33
    Total Debt to Total Assets 0.18% 0.18% 0.17% 0.40%
    Pre-tax Return on Net Worth 74.08% 74.89% 75.00% 75.00%
    Pre-tax Return on Assets 96.30% 101.12% 106.17% 111.30%
    Additional Ratios Year 1 Year 2 Year 3
    Net Profit Margin 33.56% 34.60% 35.67% N.A.
    Return on Equity 55.80% 57.53% 59.31% N.A.
    Activity Ratios
    Accounts Receivable Turnover 7.7 7.8 7.8 N.A.
    Collection Days 100 100 100 N.A.
    Inventory Turnover 32.4 34.02 35 N.A.
    Accounts Payable Turnover 15.6 16 16.3 N.A.
    Payment Days 27 27 27 N.A.
    Total Asset Turnover 2.5 2.5 2.6 N.A.
    Debt Ratios
    Debt to Net Worth -0.04 -0.03 -0.04 N.A.
    Current Liab. to Liab. 1 1 1 N.A.
    Liquidity Ratios
    Net Working Capital $244,000 $257,664 $272,093 N.A.
    Interest Coverage 0 0 0 N.A.
    Additional Ratios
    Assets to Sales 0.85 0.87 0.89 N.A.
    Current Debt/Total Assets 1% 0% 0% N.A.
    Acid Test 29 29.12 29.16 N.A.
    Sales/Net Worth 2.1 2.2 2.2 N.A.
    Dividend Payout 0 0 0 N.A.


    • How do I write a business proposal for a security company?

    You can learn how to write a business proposal for a security company through the example of a business plan for a security company given above. 

    • How do you write an executive summary for a security company?

    An executive summary is an important part of all security company business plans. To write one, you can look into the security company business plan template given above. 

    • What are the goals of a security company?

    The goals of a security company are dependent on many factors such as location, owner’s expectation, target market, investment, etc., all of which are demonstrated in the business plan for a security company.


    Download sample a business plan for a security company pdf