“How do I start my own security company?” This is a question I get from many people. The easy answer is contact the state, take the test, then apply for licensure. The truth is there’s a bit more to it than that.

Let’s begin with licensure. As stated in my easy answer, in order to be licensed in New York State one must first take and pass an examination and then meet the minimum experience qualifications, submit and application which includes documented work history and references. Oh don’t forget the fee of $300-$400 depending on your business structure.

Prior to sending in your application you will have to determine a few things: Will you work under your own name or a trade name? Will the business be a Sole Proprietorship, Corporation or Limited Liability Corporation? If you’re unsure or don’t understand these terms, seek legal assistance.

Next, how will you finance your new enterprise? The old saying, “It takes money to make money” rings true when trying to start your own business. Unless you have access to a credit line you will find yourself paying for a lot of expenses out of pocket and this can be taxing in more ways than one.

At a minimum you will need to be bonded and insured. Bonding is a simple process but the insurance is much more involved. New York State has statutory minimums for General Liability Insurance as well as Workers Compensation and Disability Insurance. I recommend you speak to the appropriate state agencies and a qualified insurance agent for more information on these topics.

Once you have the appropriate insurance in place, you will need to establish federal and state tax accounts, unemployment insurance and other administrative functions. To do this make sure you contact an accountant or business attorney for help in these areas.

Next question, will you rent office space or will you work from a home office. There are pros and cons for each. Working from a home office could cut down overhead which is advantageous for a new startup but working from a home office may not allow for taking meetings with prospective clients or employees. Renting office space allows a company to present a professional image but the cost of maintaining an office cuts into the financial bottom line.

These are just some of the considerations that go into the decision of whether or not to own your own security guard company. This process takes place before you even bid on your first contract.

More detailed information on starting a business in New York State can be found at https://www.businessexpress.ny.gov/.

Before striking out on your own you may choose to work under the license of another to gain experience. At Enterprise Security Consulting and Training Inc. we help workers become owners. Contact us at 585-484-7745 or by email at admin@esctroc.com.