A security firm business plan needs to address much more than just the type of security you provide. Whether it's IT security or physical security, the market opportunity needs to be made clear. If you serve business sector clients, you have to identify the number of adequately-sized companies in your target market by using Census Bureau data or another source to list out the companies you could market to. The business plan for a security firm also needs to broach the subject of marketing; will you rely on referrals and repeat business, or launch an entire campaign? If you have a new marketing strategy in the wings, how does it make use of the Internet, print ads, promotions, public relations, and so forth? Demonstrating that you have a clear implementation plan is vital for potential investors or loan officers considering extending a line of credit. Some other considerations for a security business plan:
• What is your target market segment strategy? If you work mainly with one industry sector, or cater only to companies making a certain amount per year, you should also be able to identify these by number.
• Can you define the current market need for your precise type of security service?
• Who will the primary competitors be? What are their strengths and weaknesses relative to your own model?
• What are your anticipated staffing needs for the first 3-5 years after funding? Can you show that the salaries you offer are in line with industry averages?
Your security firm business plan should include a complete set of pro forma financial projections showing your revenue expectations and your likely expenses over a period of their three years (for a bank loan) or five years (if you're seeking private investment). The full model should show an anticipated use of funds, key metrics/ratios, an assumptions table, revenue forecast, personnel plan, revenue forecast, cash flow tables, break-even analysis, balance sheet, a sensitivity analysis, and a complete appendix showing key tables month-by-month for the first year. It sounds like a lot, and if you don't have all the tools you need, it is. But MasterPlans can help. Since 2002 we have been building customized business plans for start-up and existing businesses alike. Call 877-453-2011 to speak with a consultant today.
