Start a Small Security Guard Company

Property managers, construction firms, apartment and condo associations, small retailers and businesses with after-hours risks.

You bill the client an hourly rate per guard and pay the guard a lower hourly wage. The difference covers insurance, payroll costs, supervision and your profit.

• Reliable and professional manner
• Scheduling and staffing
• Selling to property managers and business owners
• Calm under pressure

• Most states license security companies and guards separately, and requirements vary widely, so check with your state's licensing board
• Whether guards may be armed in your state, which usually adds training, permits and insurance cost; many start unarmed
• Workers' compensation and payroll taxes once you hire; check how your state treats guards as employees versus contractors
• Liability if a guard is involved in an incident, so check insurance coverage carefully
• Contracts are paid after invoicing, so you must cover guard wages before the client pays

Estimates put startup costs at typically around $3,000 to $15,000, depending on your state's licensing requirements, insurance and whether guards are armed. Armed guards usually add training, permits and insurance cost, so many owners start unarmed.

Estimated monthly revenue is typically around $3,000 to $15,000, depending on how many contracts you win and how many guards you staff. Contracts are paid after invoicing, so you need cash to cover guard wages before clients pay.

Most states license security companies and guards separately, and requirements vary widely, so check with your state's licensing board. Also check whether guards may be armed, and how your state treats guards as employees versus contractors.