How to start a Security guard services company in Nigeria

How to start a security guard services company in Nigeria

How to start a Security guard services company in Nigeria

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HOW TO START A SECURITY GUARD SERVICES COMPANY IN NIGERIA

Starting a new business is never easy, it involves lots of preparation, steps, strategies, finances and other relevant needs.  The demand for security guard services is on the rise due to the increasing need for protection of assets and personnel from various security threats and potential criminal activities. Criminal activities have been on the rise at an alarming rate in the past years in Nigeria and the one of the ways to prevent this is by acquiring the services of a security guard company

The private security guard companies are supervised by the Nigerian Security and the Civil Defence Corps (NSCDC).

There are various security guard services that one can render. These include

  • Close protection (body guarding)
  • Maritime security
  • Guarding cash and valuables in transit
  • Door supervision(Bouncers)
  • Public space surveillance (CCTV)
  • Security guarding
  • Key holding
  • Commercial security
  • Retail security
  • Residential security
  • Mobile patrols
  • Manned security guards
  • Guard dog handlers
  • Home security alarms
  • Vehicle parking security
  • Event security
  • Banks Logistic services

The key customers in security guard services includes

  • Retail and Leisure
  • Residential
  • Government clients
  • Financial Institutions
  • Corporations
  • Event planners

The following guide below consists of the process, steps, measures, and all the essential information needed before starting a security guard business

  • Decide on the type of security guard services you want to provide

The first step the business owner has to do is to decide on the type of security guard services he or she can offer. It is advisable for a new start-up to specialise in one or two areas in order to provide excellent services. Providing excellent services will grow the reputation of the business therefore leading to growth and expansion, after which they company can decide to indulge in other services.

  • Develop a business plan

This is one of the most relevant step any start up business must take to ensure its prosperity and growth. Before you do anything else, formulate a business plan according to your specification. A business plan is a guide, blueprint or a roadmap that allows business owners to clearly state their business goals, procedures and measures they will take in order to achieve them and they funds needed to implement the business goals and objectives. It will consider the following

  1. Executive summary (This will be done after the plan is written)
  • Business Overview
  • Market Overview: The Opportunity & Solution
  • Competition
  • Financial Highlights
  • Our Ask
  1. The company overview

This is the introduction and description of your company. It covers the following details

  • Mission and vision
  • Overview of company history/capabilities
  • Product description and present stage of development
  • Competitive advantage (what’s different or better than competition)
  • Past customers and performance (if applicable)
  • Legal entity, hours of operation, location description and attributes
  • Structure & Ownership
  • Management Team
  • Intellectual property status (if applicable)
  • Commercialization strategies (if applicable – timeframe and actions to move from idea to marketplace
  1. Product and services

This covers the following:

  • Definition of Products or Services to be Sold
  • Product Viability
  • Technology
  1. Industry analysis, market analysis and marketing strategy
  2. Swot analysis
  3. Market analysis
  • Market size(Estimate of the total market size for the product or service and trends
  • Quantification of the size of each market segment in terms of (Naira spent, units used, number of people, percent of income etc.)
  • Competition to the business
  • Market Segmentation and Demographics
  • Customer Profile(Actual and potential purchasers of product or services by market segments)
  • Barriers to Entry
  1. Marketing/sales plan
  2. Management and operations
  3. Summary of risks involved
  4. Professional and advisors
  5. Financials
  • Cash flow projection and/or existing (3 years) with breakeven analysis
  • Income/Expense projection and/or existing (3 years with ratios and benchmarks to industry)
  • Sources and uses of funds (funds needed, owner equity, how funds will be used/start-up cost analysis
  1. Funding
  • Amount of Money Sought
  • Use of Proceeds
  1. Project implementation schedule if any
  • Location
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Another aspect in providing security guard services is considering a good and suitable location for your business.  As a business owner, you will need to analyse and identify where your services are required the most. Take for example, starting a security guard services in a very rural area will lead to the closure of the business because people there will rarely patronise you.  Body guard services and CCTV monitoring are highly demanded in cities or states like Lagos, Abuja, and Port-Harcourt. This will also serve as a place where administrative duties are carried out

  • Obtain funding

Before setting up a security guard services, the funding must be adequate and available.  A budget should be made that will cover all your expenses including office rent, staff training costs, insurance, uniforms, equipment, printing of pamphlets and business cards etc. and how much money you’ll need to make each month, quarter, or year, to cover your regular outgoings and make a profit. A well written business plan will ensure that you secure funding from investors or through bank loans. A business owner can obtain funds from the following means

  1. Self-financing
  2. Families and friends
  3. Bank loans
  4. Investors
  5. Venture capital
  6. Selling shares of the company to the public
  • Incorporate your company

Incorporating your company deals with registering your company which will ensure that it is treated as a separate legal entity that is different from its owners. This will ensure that your personal liability is protected if your company is sued.

  • Know the legal requirements

The private security guard companies are supervised by the Nigerian Security and the Civil Defence Corps (NSCDC). The NSCDC is charged with the responsibility of licensing, monitoring and the supervision of private securities companies in Nigeria according to Section 3 of the Nigeria Security and Civil Defense Corp Act No. 2 of 2003.

The first is compulsory licensing for the private security industry. This helps ensure that those working within the industry are fit and proper persons who have received adequate vocational training for the role they perform. Until a license is granted by the NSDC, a private security company cannot begin operations and before any license can be granted by the NSCDC, the company must first be registered by the Corporate Affairs Commission. This will also include acquisition of gun permits

  • Obtain insurance

The next step is to obtain a liability insurance. Security guard services is one of those specific businesses that are required to obtain insurance in order to  protect your business assets from lawsuits, without which legal claims can force your company out of business entirely.

The insurance will cover property damage, injuries to staff, personal liabilities and legal defence. Obtaining an insurance means that you are complying with the statutory requirements, assures your customers and employees of their safety and covers your business against costly issues

  • Invest in a security management software

The next step is to acquire a security management software that will ensure supervision of the day to day activities of the security patrol with clients and guards

  • Market and brand your company

The next step to implement is to promote your security guard services to your target market through various mediums of media such as billboards, newspapers, social media, radios, pamphlets etc. This will help you build a strong brand name that will distinguish you from your competitors and will give you the edge over them. Acquiring a website for the company will also promote your reputation, allow your customers to know the services that you are offering and attract new customers to your security guard services business

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You’ll start with formulating an attractive name that is eye catching to the customers and designing an appropriate logo is part of the marketing strategies one can employ in order to boost the business

  • Develop a sales strategy

After marketing and branding your security guard services to your customers, the next step to take is to develop a sales strategy. This includes bidding on various security contracts from both private and public companies, the bid will include proposals, cost reviews, face to face meetings and pitching your business that will ensure that people are willing to patronize your business

As a business owner, you can also contact clients individually and approach them with the services you offer. Another sales strategy is through referrals, after performing an excellent service to your company, you can ask your clients to refer you to an individual or a company that will also require your services.

  • Get the necessary and relevant equipment

When starting a security guard company, the equipment you will purchase depends on the services you are rendering. Various equipment used by Security Guard Services Company includes:

  1. A walkie talkie, special microphones that will be used as a means of communication between staffs
  2. A tool belt to hold a fire arm, taser gun other items in order to make the hands free
  3. Uniforms with your company logo that will allow your business appear professional
  • Hire and train employees

The business owner cannot perform all the services and will need hire personnel. This is another step that may make or break your company when done wrong. The business owner must invest time into hiring both experienced and new security guards and managers. You’ll also need to run background checks on potential security staff to confirm they have a clean criminal background. Personnel can be gotten through

  1. Posting about the vacancy on your website and across any social media or email marketing channels
  2. Asking your business network, as well as friends and family if they know anyone suitable
  3. Adding the vacancy to general recruitment websites e.g. Indeed
  4. Advertising the vacancy in industry trade media or local newspapers
  5. Contacting local training establishments that offer relevant security courses to share with newly qualified students or alumni
  • Launch your business and maintain your reputation

After all the above steps have been taken, the final step to take is to launch the business and maintain a good reputation with customers by delivering excellent services. After getting jobs, words will spread about your company and the value of its delivery. If the security guard services company has a good value delivery, it will give them the edge over all their competitors

HOW TO REGISTER A SECURITY GUARD COMPANY IN NIGERIA

The steps in registering a security guard company in Nigeria must be commenced with the registration of a private limited liability company.

The Nigeria Security and Civil Defense (NSCDC)  is charged with the responsibility of licensing, monitoring and the supervision of private securities companies in Nigeria according to Section 3 of the Nigeria Security and Civil Defense Corp Act No. 2 of 2003

Requirements for registering a private security guard company

The following are the requirements for registering a private security guard company in Nigeria:

  • The proposed name of the private security company (at most 2 names must be submitted)
  • The address of the private security company
  • The objectives of the private security company.
  • Particulars of the 2 directors and shareholders of the company ( this will include copies of their identification card, which could be National passport or National Identity card or Driver’s license or voters card)
  • Phone numbers, email address and residential address of the 2 directors and shareholders.
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Requirements for obtaining a Private Security License from NSCDC

The following are the requirements for obtaining a private security license from NSDC:

  • Application for private guard license addressed to the Commandant General
  • CTC of Memorandum and Article of Association (2 copies)
  • Photocopies of certificates of incorporation (2 copies)
  • Payment of prescribed fees
  • Tax Clearance Certificate
  • Statement of account
  • Letter from a legal adviser
  • Letter from an auditor
  • Proposed training program
  • Proposed salary structure
  • Veterinary certificate (optional)
  • Personal History Statement (PHS) forms at One Hundred Thousand Naira (N100, 000) only. All directors must obtain one.
  • Credentials of directors (2 copies) to be attached with PHS form.
  • Letter from bankers
  • Eight (8) passport photographs for each of the Directors
  • Eight (8) full photographs (postcard 5 x7 inches) of each of the Directors with a white background, with five fingers print and signature signed at the back of the postcard (photograph) in the presence of Nigeria Security and Civil Defence Corps Officers.
  • Photocopy of the signature page of the Directors in the international passport or National ID Card or Driver’s License and this should be stapled at the back cover of the file jacket.,
  • PHS form must be adequately filled by the Directors stating Nil or Not Applicable to portions they do not have answers to and no column should be left unfiled.
  • Attestation letters from referees for each Directors
  • One uniform sample with a photograph of a guard in Uniform (2 copies). All uniforms and accoutrement must not have the semblance of any government agency or similar to any other PGCs.
  • The minimum authorized share capital for a private security company/ consultant must not be less than N10 Million authorized share capital.

CONCLUSION

Individuals and organizations now require the services of private security guard companies in order to keep their assets and lives safe from any threat. This is due to the increase in criminal activities in the country. Launching a security guard services company in Nigeria is sophisticated and requires in-depth planning, time, resources and financial investments.

Having the right source of information coupled with a guide or a consultant to take you through the process of starting up your security guard services company in Nigeria which will go a long way in ensuring that your business develops and grows. It is very important for the business owner to seek consultancy services from experienced people. Starting a security guard services company could be on a small or a large scale depending on the funds available.For more information on how to start a security guard services company in Nigeria, contact us on  08023200801, 08075765799, Email: info@qeeva.com

About the author

Onamakinde Dare Daniel is a highly motivated accountant with knowledge in Accounting, Taxation, Management, Audit, Costing and Research. He is keen on tax matters due to its ever dynamic nature.

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