Sample business plan
Security Guard Company business plan
A complete sample plan for Bastion Point Security Services, a fictional security guard company in a mid-sized US city. Startup budget: $17,900–$52,300. Use it as a template — adjust the calculator below with your own numbers.
Executive summary
Bastion Point Security Services is a state-licensed uniformed security guard company that provides unarmed patrol and stationary guard services to apartment communities, construction sites, retail centers, and small industrial properties in a mid-sized US city. The founder is a retired police sergeant with 22 years of experience and holds the qualifying manager credential required by the state. The company bills by the hour and focuses on reliability, written reports, and clear post orders.
Startup funding of about $36,000 covers licensing, insurance deposits, uniforms, scheduling software, and a payroll float. The average bill rate is $31 per guard hour. The company expects to reach 1,000 billed hours per month by month twelve, producing about $31,000 in monthly revenue with a gross margin near 26 percent after wages, payroll taxes, and workers’ compensation.
Company description
Bastion Point Security Services LLC is licensed by the state private security board and operates under the qualifying manager’s supervision. All guards are employees, not contractors, and must pass background checks, hold the required state registration, and complete company training in report writing, access control, de-escalation, and emergency procedures.
The company starts with unarmed services only. Armed service is a possible expansion after the first year, subject to additional licensing, insurance, and firearms training requirements. Guards use a mobile app for tour checkpoints and incident reporting, and each client receives a weekly activity summary and immediate notice of significant incidents.
Market analysis
Property owners and managers hire security to deter theft, trespassing, and vandalism, to meet insurance requirements, and to reassure tenants or employees. Construction sites need overnight and weekend coverage to protect equipment. Apartment communities want visible patrols and parking enforcement. Retail centers may need evening coverage during peak hours.
Buyers care about reliability, professionalism, insurance, and responsiveness more than price alone, although they compare hourly rates. Staffing is the main operating challenge because guard turnover is common and a no-show damages trust. Contracts are typically recurring and often renew annually, which provides predictable revenue when service is consistent.
Target customers
Apartment and condo communities
Property managers needing evening and overnight patrols, gate coverage, and parking enforcement.
Construction contractors
General contractors and developers who need overnight watch for tools, materials, and equipment on active sites.
Retail centers and small industrial parks
Owners who want visible security during peak shopping hours or after-hours property checks.
Products, services & pricing
| Offering | Price | What’s included |
|---|---|---|
| Stationary guard | $31 per hour | A uniformed officer at a fixed post such as a gate, lobby, or construction entrance, with a daily activity report. |
| Mobile patrol | $28 per hour equivalent | Vehicle patrols with checkpoint scans at scheduled intervals across several properties. |
| Event and special coverage | $34 per hour, four-hour minimum | Short-term officers for grand openings, parking lots, and special events. |
| Security assessment | $450 | On-site review of lighting, access points, and camera coverage with a written recommendation, credited to the first month’s contract. |
Competition
The market includes large national guard companies, regional firms, and several small local operators. National firms have name recognition and broad insurance programs but often have high turnover and little flexibility for small accounts. Small local operators compete on price but may lack systematic training or backup coverage.
Bastion Point differentiates through a former police supervisor’s oversight, detailed post orders, real-time reporting, and a guarantee that missed shifts will be covered or the client will not be billed for that time. It prices in the middle of the market and avoids bidding for sites that cannot support a living wage for officers.
Marketing plan
The sales approach is direct. The founder will visit property managers, general contractors, and shopping center owners within a 25-mile radius and provide a short capability statement, proof of insurance, and a sample report. A local security assessment is offered to prospects as a low-risk first step.
Referral partners include insurance brokers, property management associations, and local police contacts. A basic website with a request-a-quote form, a Google Business Profile, and printed capability statements support the sales effort. The company aims to sign at least one new contract each month during the first year, with a marketing budget of about $700 monthly.
Operations plan
Guards are scheduled through workforce software that issues shift alerts and requires clock-in by GPS at the post. A supervisor, initially the founder, checks sites on random visits and is on call overnight. Each post has written post orders reviewed with the guard before the first shift.
Payroll runs weekly through a payroll service that handles taxes and workers’ compensation. Client invoices are issued weekly or every two weeks with net-15 terms. The company keeps a bench of four trained backup guards to cover absences and maintains uniforms, radios, and flashlights as standard equipment. Incident reports are reviewed by the founder within 24 hours.
Team
- Founder and qualifying manager — Holds the state credential, sells contracts, trains guards, and acts as the on-call supervisor.
- Operations and scheduling coordinator (from month 4) — Manages the schedule, payroll inputs, and guard hiring, working 30 hours a week at $20 per hour.
- Security officers (6 to 12 part-time and full-time employees) — Registered officers paid $16 to $19 per hour who staff posts and patrol routes.
Startup costs & year-one financials
Toggle optional items, slide between a frugal and comfortable launch, and change price and demand to see when Bastion Point Security Services breaks even.
Startup costs
$26,790- $2,375
- $5,750
- $1,025
- $2,200
- $5,425
- $1,090
- $1,700
- $1,350
- $2,025
- $475
- $8,800
Monthly fixed costs after launch: $5,030
Year-one projection
Monthly revenue · bars turn orange once cumulative cash is positive
- Month 12 revenue
- $31,000
- Month 12 profit
- $3,030
- Break-even
- After yr 1
Illustrative estimate based on the sample plan’s assumptions — not financial advice. Your costs and results will differ.
Milestones
- Month 1Receive the company license, finalize insurance, and sign the first construction site contract.
- Month 3Reach 400 billed hours a month across three clients and hire a bench of backup officers.
- Month 6Bill 550 hours monthly and hire an operations coordinator.
- Month 9Win the first apartment community contract and implement a supervisor visit schedule.
- Month 12Reach 1,000 billed hours and positive monthly profit, with client retention above 85 percent.
Risks & mitigations
Guard turnover or no-shows damage service quality
→ Pay above the local minimum, keep a bench of backup officers, use GPS clock-in, and cover missed shifts at no charge to the client.
Liability from an incident involving an officer
→ Maintain strong insurance, run thorough background checks, train de-escalation, and keep written policies on use of force.
Thin margins make cash flow tight when clients pay late
→ Keep a line of credit or float, invoice weekly, and use net-15 terms with late fees in contracts.
Frequently asked questions
What licensing details belong in a security company plan?
List the state board, the company license type, the qualifying manager, and the officer registration process. Include timelines and fees so the reader sees you have a realistic start date.
How do I calculate gross margin?
Start with the bill rate, subtract hourly wages, payroll taxes, workers’ compensation, and supervision costs. In many markets the resulting gross margin is in the 20 to 30 percent range.
Should I include armed services?
Treat armed services as a later phase. They require extra licensing, insurance, and training, and they should not be assumed in year-one revenue.
How do I describe the competition?
Describe how large and small competitors serve your target accounts and where they fall short, such as turnover, response time, or reporting quality.