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Written by Elma Steven | Updated on July, 2024


Find Out- Is Security Company Business Profitable?

The profitability of your Security Company business depends on 4 important factors: Industry Prospects, Investments, Revenue Sources, Cost and Profitability. We have taken a deep dive to find out potential profitability from the Security Company business. 

Security Company Industry Prospects

The global security company market size in 2023 is projected to be valued at approximately $121.65 billion (grandviewresearch). Other sources also provide estimates, with figures ranging from $119.75 billion to $154.94 billion in 2023 (expertmarketresearch). These estimates indicate a substantial market size for the security company business on a global scale in 2023. The market size of the security services industry in the United States is projected to be $48.13 billion in 2023 (ibisworld).


  • Office Space and Facility Improvements: While the purchase or lease of office space is typically considered an operating expense, any initial improvements or renovations to the space (leasehold improvements) to suit your operational needs are CapEx.
  • Security Equipment: Investment in high-quality security equipment, including surveillance cameras, alarm systems, access control systems and monitoring equipment. This also encompasses any specialized tools and technology required for providing security services.
  • Vehicles: Purchase of vehicles for mobile patrols and on-site security services. This includes cars, vans, or bikes, equipped with necessary security signage and equipment.
  • Computer Hardware and Software: Investment in computer systems, servers and specialized security software for incident reporting, client management, scheduling and real-time communication. This also includes cybersecurity measures to protect your and your clients’ data.
  • Communication Devices: Purchase of communication equipment such as two-way radios, smartphones and other devices needed for effective coordination and communication among security personnel and with clients.
  • Uniforms and Gear: Initial stock of uniforms for your security personnel, including any protective gear, badges and other equipment that identifies and equips your team professionally.
  • Training Equipment: If you plan to offer in-house training for your security personnel, investment in training materials and equipment, including simulation tools, defensive tactics equipment and first aid training supplies.
  • Marketing and Branding Materials: Initial costs associated with branding your security company, including logo design, website development, business cards, brochures and signage for your office and vehicles.
  • Licenses and Certifications: Costs associated with obtaining necessary business licenses, security company certifications and any specialized licenses required for your personnel to operate legally in Omaha.
  • Insurance Premiums: Upfront payments for comprehensive insurance coverage, including liability insurance, vehicle insurance and workers’ compensation insurance, crucial for protecting your business and employees.
  • Security Company Software: Investment in industry-specific software for security company management, including client databases, patrol routing, incident reporting systems and workforce management systems.

By carefully budgeting for these CapEx items, you can ensure that your security company is well-equipped and prepared to offer high-quality services from the start. It’s advisable to conduct thorough market research and consult with industry experts or a financial advisor to accurately estimate these costs and plan your investment strategy effectively.


  • Security Guard Services: Offering manned security services for commercial properties, retail establishments, construction sites, events and residential communities. You can charge clients on an hourly rate or fixed contract basis.
  • Mobile Patrol Services: Providing mobile patrol services for neighborhoods, commercial districts and large properties. These services can be charged per patrol, with options for random or scheduled patrols.
  • Installation and Monitoring of Security Systems: Revenue from installing security cameras, alarm systems and access control systems. This can include ongoing monthly fees for system monitoring and emergency response services.
  • Event Security: Offering specialized security services for events, such as concerts, festivals, corporate gatherings and private parties. Pricing can vary based on the event’s size, duration and specific security needs.
  • Executive Protection Services: Providing personal protection services for VIPs, executives, celebrities and other individuals requiring personal security. These services can command premium rates based on the risk level and complexity of the protection plan.
  • Consulting and Risk Assessment Services: Offering security consulting services, including risk assessments, security audits and the development of comprehensive security plans for businesses and organizations.
  • Training Services: Conducting security training programs for other security professionals, businesses and organizations. This can include courses on security awareness, emergency preparedness and specialized security training.
  • Security Technology Sales: Selling security technology products, such as surveillance cameras, alarm systems and access control devices, directly to consumers or businesses. This can also include maintenance and upgrade services for these systems.
  • Alarm Response Services: Providing rapid response services to alarms on behalf of clients who have alarm systems installed. This service offers peace of mind to clients and can be a steady source of income.
  • Loss Prevention Services: Specializing in loss prevention strategies for retail and warehouse settings, helping businesses reduce theft and inventory shrinkage.
  • Cybersecurity Services: If your company has the expertise, offering cybersecurity services, including cyber threat assessments, network security solutions and incident response, can tap into the growing concern over cyber threats.

By leveraging these diverse revenue sources, your security company can cater to a wide range of customer needs, enhancing your marketability and the sustainability of your business. It’s important to continuously evaluate the demand for your services, adjust your offerings based on market trends and ensure your team is trained and equipped to deliver high-quality services across all these areas.

Cost of Services Sold

  • Personnel Costs: Wages or salaries paid to your security guards and personnel, including overtime pay, are the most significant part of your CoS. These costs vary with the number of personnel deployed and the hours they work.
  • Uniforms and Equipment: Costs for purchasing uniforms, footwear and any special gear (like bulletproof vests for high-risk assignments) that your security personnel need. This also includes the cost of maintenance or replacement due to wear and tear.
  • Training and Certification: Expenses related to the training and certification of your security staff, including ongoing professional development to comply with industry standards and regulations. While some training costs may be fixed, additional training for specialized services varies with the scope of services offered.
  • Vehicle Expenses: For mobile patrol services, costs include fuel, maintenance, insurance and depreciation of vehicles used in providing the service. These expenses fluctuate based on patrol frequency and distances covered.
  • Communication Devices: Costs for purchasing and maintaining communication equipment such as two-way radios, cell phones and other technology used by your personnel to coordinate and report activities during their shifts.
  • Security Equipment for Clients: For services that include the installation of security systems (cameras, alarms, access control), the cost of purchasing these systems and any consumables used in the installation process. While part of these costs might be billed directly to the client, any discounts or warranties provided could affect your CoS.
  • Licensing and Insurance: Variable costs associated with maintaining necessary business licenses and insurance specifically related to the provision of security services. While basic insurance premiums might be considered an operating expense, additional coverage for specific contracts or high-risk assignments adds to the CoS.
  • Subcontractor Fees: If your company outsources certain services or hires subcontractors for specialized tasks (e.g., cybersecurity, executive protection), the fees paid to these subcontractors are part of your variable costs.
  • Alarm Monitoring Software: For companies that offer alarm monitoring services, the cost of software or platform subscriptions necessary to provide real-time monitoring services.

By carefully tracking and managing these variable costs, you can ensure that your pricing model covers your expenses while remaining competitive in the market. Strategies such as optimizing personnel deployment, maintaining efficient vehicle operations and negotiating favorable terms with equipment suppliers can help control these costs and improve your overall profitability.

Operating Expenses

  • Rent or Lease Payments: Costs associated with leasing office space or storage facilities for equipment. This fixed expense is crucial for operations but does not fluctuate with the volume of service provided.
  • Utilities: Monthly expenses for electricity, water, gas, internet and telephone services necessary to maintain an operational office and support staff.
  • Salaries and Wages: Payments to administrative staff, sales personnel and any other employees not directly involved in providing security services to clients. This includes payroll taxes, health insurance, retirement benefits and other employee-related expenses.
  • Insurance: Premiums for general liability insurance, property insurance, professional liability insurance and any other insurance policies required to protect the business from general operational risks.
  • Marketing and Advertising: Costs associated with promoting the security company, including website maintenance, online advertising, print materials, trade shows and promotional events to attract new clients.
  • Professional Services: Fees for services provided by accountants, lawyers, consultants and other professionals who assist with the legal, financial and operational aspects of running the business.
  • Office Supplies and Equipment: Expenses for office supplies (paper, ink, etc.) and equipment (computers, printers, furniture) necessary for administrative functions.
  • Software Subscriptions: Ongoing costs for software used in managing the business, including accounting software, customer relationship management (CRM) systems, scheduling software and any other operational management tools.
  • Vehicle Expenses: For administrative vehicles (not directly used for client services), costs include lease payments, fuel, maintenance and insurance.
  • Training and Development: Costs associated with non-billable training for administrative staff or for developing internal systems and processes, not directly related to client services.
  • Depreciation: Non-cash expense that reflects the reduction in value of capital assets (such as office equipment and vehicles) over time, due to use or obsolescence.
  • Travel and Entertainment: Expenses related to business travel, client meetings, or staff events that are not billable to clients but are necessary for business development and operations.
  • Bank Fees and Interest: Fees for banking services and interest payments on business loans or credit lines, excluding the principal repayment of loans.

Efficiently managing these operating expenses is crucial for maintaining the profitability of your security company. Regular review and optimization of these costs, seeking cost-effective solutions and strategic investments in areas that contribute to business growth and client satisfaction can help manage OpEx effectively.

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