Security Guard Sample Business Plan - Market Analysis - Bplans

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Security Guard Business Plan

Batten-Hatchez Security
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Market Analysis Summary

The market for security guard services includes building management companies, retail
businesses, event venues, and other businesses. IBISworld.com reports that the
security services industry as a whole was $29.7 billion in 2008. While this number
includes investigative services and armored car services, it is estimated that security
guards accounted for $22.3 billion. This represents approximately 540,000 employees
in the security guard industry.

Plan Outline
1.0 Executive Summary
2.0 Company Summary
3.0 Services
4.0 Market Analysis Summary
Market Segmentation
Target Market Segment Strategy
Service Business Analysis
Competition and Buying Patterns
5.0 Strategy and Implementation Summary
6.0 Management Summary
7.0 Financial Plan

While market revenue has dropped 2% in 2008 due to the recession, it is expected that
the market will rise again due to increasing outsourcing of security services by
companies who will delay hiring their own full-time employees as the recession ends.
The continuing and growing concerns about security brought on by international
terrorism are also expected to contribute to growth in the industry.
Of the potential targets available in Coastalburg Batten-Hatchez Security will focus on
building management companies and retail businesses at the outset. These businesses
require steady security needs and serving them is simpler than serving special events.

Appendix

Market Segmentation

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The market analysis table shows the market segmentation for Coastalburg among the
major market segments for security guard services. Growth is slow among these
markets as new development is not prevalent in Coastalburg currently.

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Building management companies generally install surveillance equipment and employ

security guards to monitor that equipment, to staff front desks/security checks, and
sometimes for general patrol. These companies often work with a number of
commercial or residential buildings and look to establish a relationship with one reliable
vendor for all of their security guard needs. While some buildings require night-shift
guards, others require only day coverage.
Large retail businesses use security guards to deter theft and to provide safety. These
include department stores and other retail stores over 4,000 square feet, although some
smaller stores may use security guards if they sell high-priced items (designer fashion,
jewelry, technology, etc.). Retailers require more guards during the day. Some simply
lock the store at night while some larger department stores use night patrols as well.
Event venues use security guards to monitor guest lists and fire capacities and to
organize emergency response. Nightclubs and bars may be included in this category.
However, most nightclubs and bars employ their own security personnel (or "bouncers")
directly and do not use vendors. Event security has the same risks as other security, but
there is limited time for security audits and situations change fast, making this a higher
stress business that requires better trained guards. Events tend to happen in the
evenings with weekday nights for corporate events and weekend nights for private
events.

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Educational institutions, such as primary and secondary schools and colleges,

generally employ security officers to guard and patrol their buildings and campuses.
Often these institutions employ their own in-house security staff, but they will
sometimes use outsources security vendors. These institutions require night and day
patrols.

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Market Analysis
Year 1

Year 2

Year 3

Year 4

Year 5

0%

500

500

500

500

500

0.00%

Large Retail Businesses

1%

900

905

910

915

920

0.55%

Event Venues

1%

100

101

102

103

104

0.99%

Educational Institutions

0%

75

75

75

75

75

0.00%

0.38%

1,575

1,581

1,587

1,593

1,599

0.38%

Potential Customers

Growth

Building Management

CAGR

Companies

Total

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Target Market Segment Strategy

Batten-Hatchez Security will target the first two of these target markets initially, building
management companies and retail businesses. Both segments require ongoing security
vendors and are eager to establish long-term relationships. Once relationships are
established, good customer service, quality assurance, and competitive pricing can
ensure that the relationships are retained and that the security provider is considered a
true partner in the protection of the building or businesses' assets and people.
Furthermore, the other two target markets listed will be taken on at a later date, if at all.
Event venues require more specialized services and may be a slower market to tackle.
Educational institutions are often eager to establish their own security staffs, making
this a difficult market to establish a strong foothold in as well.

Service Business Analysis

According to IBISWorld, there were 41,000 security services firms in the U.S. in 2008
running 56,000 establishments. The average size of a firm was $700,000 revenue per
year based on these numbers, meaning that the industry includes both small and larger
companies. There are few barriers to entry, as long as basic legal requirements are met,
as the capital investment in the business is very low. The industry depends on a supply
of labor, often using retired police officers as security guards.
As security guard services are sold business-to-business, marketing and advertisement
is generally targeted on the markets and industries the security companies seek to
serve. Businesses generally search for security guard providers on the Internet or
through referrals from other companies they trust.

Competition and Buying Patterns

Top players in the industry include Securitas AB, Allied Security LLC, The Brink's
Company, and G4S plc. Huge players provide services for a huge range of markets,
including governments, chemical and petrochemical, colleges and universities,
commercial real estate, financial institutions, health care facilities, manufacturing and
industrial, residential communities, shopping centers, and temporary security services.
Smaller security companies achieve success based on the expertise and reputation of
their founding managers and the growth of a team with a similar track record. The
continued success of a company depends on client satisfaction, leading to referrals.
Larger institutions and governments may receive several bids for security contracts,

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while smaller businesses (such as many that Batten-Hatchez Security will target) often
prefer to try out security companies and move on if they do not meet expectations.
The smaller the amount of assets being protected, the more willing a company will be to
risk their security on educated hunches about a security company without feeling the
need to do due diligence on a number of options.
IBISworld reports the following about the security industry:
While the public's perception of the rising crime rate assists revenue, the most
significant factor which increases the demand for this industry's services is a breach of
an existing security system, a break-in or a near break in. The economic crisis has hurt
demand over the past two years but things will soon begin to improve.
In Coastalburg, security guard service competitors include securityguard.com, Top
Guard Security, US Security Guard Services, and Trend Security Corporation.

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