The private security sector is exciting, and has the potential to become quite lucrative—if managed well.
Security services are always in demand, and in California—where pockets of extreme wealth and notoriety exist in the same sphere as crime—people constantly hire security guards to protect their assets.
Yet starting a security business is not as easy as it may sound, and it’s imperative to have a firm grasp on the full scope of the licensing and regulatory requirements.
For those looking for security business advice in California, here’s a rundown of what you need to know.
Because laws and regulations are subject to change, anyone hoping to start a business in security should check local business resources and seek legal advice.
What are Some of the Security Business Niches in California?
Here is a list of some of the areas security guards train for and specialize in:
- Armed guard services (for banks, jewelry stores, etc.)
- Event Security (for concerts, sporting events, etc.)
- Private personal security (for high-profile people)
- Property surveillance and fire watch security (to provide 24-hour property surveillance)
- Residential patrol (for gated communities)
- Corporate security
In California, there are plenty of opportunities to specialize in one or more of these areas. The training guards have to undergo may vary, depending on what aspect of security they choose to specialize in.
How Much Does It Cost to Start a Security Business in California?
It’s estimated that the initial startup cost for a security business can range from $10,000 to $50,000 and beyond.
Of course, the size and scope of the business are huge factors in the cost.
Startup costs cover things like license and registration fees, investments made in the necessary equipment and technology, employee training, and business marketing costs.
What Regulatory Compliance is Required for a Security Business in California?
Just like any California business, security business owners in the state must follow the California Labor Code. They must establish a workplace that aligns with all the necessary safety regulations, and act in accordance with state mandated fair employment practices.
In addition, security business owners are required to maintain employee records.
What Legal Requirements Are Necessary for a Security Business in California?
The security business must be registered with the California Secretary of State.
In addition, all security businesses in California must have a private patrol operator license (obtained through California Bureau of Security and Investigative Services) in order to legally operate in the state.
Any staff hired must complete a background check, and be trained in accordance with the type of security services they’re providing. This can include a baton permit, firearms permit—even a First Aid/CPR certification.
Make sure that you have all the necessary licenses and permits for the aspects of security you want to specialize in.
What are the Insurance Requirements for a Security Business in California?
California law requires that every business provide workers compensation insurance to all their employees.
Other insurance includes bonding insurance—which some clients require—which essentially guarantees the service will be rendered—and if not, the bond will reimburse the client for any subsequent financial loss.
Commercial auto insurance is required for any vehicles owned and used by the business.
Other insurance coverage which is not necessary but can be beneficial includes umbrella insurance, which typically offers extra liability coverage beyond your general coverage. In addition, there’s professional liability insurance which covers your business should there be any job-related negligence or mishaps, and lastly, general liability insurance is another option.
What Licensing and Certification is Needed for Security Guards in California?
In order to operate as a security guard in California individuals must:
- Undergo and pass a comprehensive background investigation
- Have at minimum completed an 8-hour training course
- Be registered with the Bureau of Security and Investigative Services (BSIS)
- Renew any applicable licenses annually and be current on continuing education requirements
What Business Operations Need to be Considered for a Security Business in California?
Drafting both a detailed business plan and a clearly defined comprehensive training and operational protocol handbook is important for any new business.
Profitability varies depending on location and type of services offered, and you can always modify your business plan when the business starts to grow.
Securing an accountant and CPA is helpful, and developing a strategy to recruit potential employees and market your business should not be overlooked.
Create an onboarding process to help new employees assimilate, and ensure each promising applicant is thoroughly vetted and able to pass a background check before you hire them.
Investing in up to date equipment and staying informed on new security-related technology is also important, and of course adhering to all the requirements set forth by the State should be treated seriously and strictly adhered to.
Conclusion:
When starting a business, the more research you do, the better prepared you’ll be. If you’re unsure about something, never assume. It’s important to get clarity—ideally from the people or agencies who have the authority to answer your questions.