Cybersecurity is one of the fastest-growing sectors, with a market value of more than $150 billion today and an estimated increase of more than double by 2026, as technology battles to keep up with hackers. An enormous amount of money can be lost due to a data breach, therefore if you have cybersecurity training, you already know how in-demand your talents are. If you lack the necessary training, obtaining cybersecurity education and certification is not difficult and will be a crucial investment if you decide to launch your own cybersecurity company.
But you also need to have business skills in order to protect your financial investment in your company. Thanks to the wealth of knowledge and advice in this step-by-step manual, you may now start along the road to cybersecurity success.
Step 1: Find Out if this is the Right Business for You?
Positives Vs Negatives
| Large Market – Services will be in high demand Multiple Services: Security analysis, updates, and monitoring Deliver Value – Effective cybersecurity helps organizations save billions | Competition is fierce these days since everyone is investing in cybersecurity. Long hours – Ensuring tech security may require working around the clock |
Industry Trends
- Industry size and past progress: In 2022, the US cybersecurity sector is expected to be worth more than $58 billion.
- Forecast for growth: From now through 2026, the US market is expected to expand at a rate of about 8%. Through 2027, it is anticipated that the $150 billion global cybersecurity market will expand by more than 13% yearly.
- Number of companies: CyberDB, a research platform, claims to have a list of more than 3,500 cybersecurity firms in the US.
- Approximately 140,000 people were working as information security analysts in 2020, according to the Bureau of Labor Statistics, and that number is expected to rise to 33% by 2030.
Cost of Starting Cybersecurity Business
A cybersecurity startup will spend between $7,000 and $20,000 on its initial expenses. An expensive computer system and necessary software are included in the price. The top tier involves training and credentials, if you don’t already have them.
Numerous certificates are available, including those for big data analysis, threat intelligence, cybersecurity specialist, information security analyst, and more. Learn more about the National Initiative for Cybersecurity Careers and Studies.
Investment Items:
- The use of a computer
- Observation tools for network security
- Tools for encrypting
- Scanning tools for web vulnerabilities
- Equipment for penetration testing
- Use an antivirus program
- Network intrusion prevention systems
- Sniffers for packets
Is Cybersecurity Business Profitable?
Prices range from $1,000 to as much as $10,000 for the analysis and implementation of cybersecurity measures. From $1,000 to $10,000 each month is spent on ongoing security monitoring. According to the figures below, each would cost $2,500. You should be able to make 80% or more of your business’s profit if you work from home.
One new client each month at $2,500 upfront can be possible in the first two years of business, as long as you continue to serve three regular clients on average each month. In the event that the assumed 80% margin holds true, this would provide $120,000 in revenue each year and a tidy profit of $96,000.
Sales may increase to 10 new customers per month and 20 customers paying for monitoring as your business becomes more well-known and you begin to receive referrals. Your profit margin would now be around 30% as you would be renting a commercial premises and hiring workers. You might live comfortably on $270,000 with an astounding $900,000 in annual income.
Entry Barriers
- The acquisition of knowledge, expertise, and experience
- Providing full startup funding
Step 2: Create a Strategy
Identify a Gap
Examine the services, costs, and client testimonials of cybersecurity companies in your neighborhood. Finding a market gap to fill is what you’re after. Perhaps a business that provides cutting-edge threat intelligence is lacking from the local market, for example.
Your word-of-mouth advertising may pick up steam as a result, drawing customers in immediately.
Solutions
- According on your qualifications and skill set, your services will vary. You may probably make the most money by offering a comprehensive range of security services, but you might also choose to focus on a particular field, such system analysis.
Pricing
Depending on the size of the system and network, cybersecurity services can vary substantially. System evaluations and the setting up of firewalls and other security measures might cost up to $10,000 or more. For monthly security monitoring, the same figures are used. As a home-based solopreneur, you should strive for a profit margin of roughly 80% as your expenses will be limited to software and marketing.
To calculate your markup and final price point after knowing your costs, utilize this step-by-step profit margin calculator. Keep in mind that the prices you use at launch should be flexible and subject to adjustment as the market demands.
Target Market
Small businesses will be your initial target audience; you can discover them on LinkedIn. Local businesses could also be found on search and review websites like Google Maps and Yelp! and speak with them personally.
Location
You could wish to start your business from home in the beginning to save money. But as your company expands, you’ll probably need to hire personnel for a variety of positions and perhaps even rent an office. Use websites like Craigslist, Crexi, and Instant Offices to find rental opportunities for commercial space in your neighborhood.
These general guidelines may be helpful to remember while selecting a commercial space:
- Central site that is reachable via public transportation
- Large, well-ventilated, and well-lit
- As your firm expands, you can extend your flexible lease.
- Unrequited big repairs or renovations, ready to use space
Step 3: Write a Business Plan
A plan is important for any business. This will help you guide your new business through the launch process and keep your eye on your main goals. A business plan also helps possible partners and investors understand your business and its goals better:
- Executive Summary: A brief outline of the whole business plan that should be written after the plan is done.
- Business Overview: A summary of the company’s goals, vision, purpose, assets, and control structure.
- What we make and what we do: Explain in detail what you’re selling.
- Do a SWOT analysis and look at market trends like changes in demand and growth opportunities.
- Competitive Analysis: Look at your key rivals’ strengths and flaws and make a list of what makes your services better.
- Sales and Marketing: Look at the unique selling points (USPs) of your business and come up with sales, marketing, and promotion plans.
- Management Team: An overview of the team’s tasks and professional backgrounds, as well as a business structure.
- Operations Plan: Your company’s operational plan includes how it will get supplies, where it will put its office, what its most important assets and tools are, and other practical details.
- Financial Plan: A three-year plan for money, including start-up costs, a break-even analysis, predictions of profits and losses, cash flow, and a balance sheet.
- Appendix: Add any other papers related to money or business.
Step 3: Create a Marketing Plan
Some of your business will come from passersby or people who find you online, but you should still spend money on marketing! Getting the word out is especially important for new businesses because it will bring in more customers and make people more aware of the brand.
Link your website to your social media accounts once your site is up and running. Social media is a great way to market your business because you can make posts that are interesting and sell your goods.
- Facebook is a great place for paid ads because it lets you target specific groups, such as guys under 50 in the Cleveland area.
- Instagram has the same perks as Facebook, but it’s for a different crowd.
- Website: Search engine optimization (SEO) will help your website show up higher in appropriate search results, which is a key part of making more sales. Make sure your website has clear calls to action. Try changing the size, color, and placement of calls to action like “Book Now” This could bring in a lot more customers.
- Google and Yelp: Getting mentioned on Yelp and Google My Business can be very important for getting people to know about your business and buying from you.
- Competitions and giveaways: Getting listed on Yelp and Google My Business can be essential for businesses that depend on local customers to spread awareness and attract clients.
- Signage — Put up noticeable signage at your business and on your website.
- In-person Sales — Offer your cybersecurity services to nearby companies.
- Sponsor Events — Events that are related to your target market can be sponsored by you for a fee.
- Email marketing/newsletter — Contact clients and potential clients on a regular basis. Make them your own.
- Make referrals — Encourage consumer recommendations of new clients
- Paid social media advertisements — Should be placed on platforms that will allow you to reach your target audience.
- Pay-per-click advertising — To rank higher in searches, use Google AdWords. First, do some keyword research.
- Create a webinar — Use a video seminar to share your cybersecurity knowledge.