The security industry is booming. In the U.S., this market has been steadily growing since 2014, nearing $50 billion in 2020. If you have experience in the field and want to capitalize on this opportunity, it’s a great time to do so.

While the industry’s outlook is solid, you can’t expect to succeed without proper preparation. In that spirit, here are five points to cover as you start your security company.

1. Determine a Niche

First, you need to decide on a niche. Given the industry’s growth, there are a lot of security companies out there to compete with. You need to determine what sets you apart from the rest, either in a specific market you serve or a unique solution to a problem.

Start with deciding whether you’re a cybersecurity or physical security company. Maybe you offer both services. Do you serve consumer or commercial customers? Is your pricing model different from competitors? What can clients expect from you that they can’t get elsewhere? Answering questions like these will help you find more success in an increasingly crowded market.

2. Obtain All Necessary Permits and Licenses

One area in which starting a security company can differ from other businesses is licensing. Like any company, you’ll need to register as a legitimate business, but you’ll need additional permits, too. For example, to be a security guard in California, you’ll have to pass state and federal background checks and complete a training course.

You may also need firearms licenses, investigative permits and other certifications. Check your local laws to see what you need and if your employees require specific licensing, too. You may also want to obtain some certificates that aren’t legally required but can make your business look better.

3. Properly Equip Employees

If you’re running a security guard company, you’ll need to get your employees the right equipment. New microlattice materials consist of as little as 0.01% solid material but deliver the same safety benefits, making them ideal for protective padding. Depending on the service you offer, you may want to check out these options.

You probably also want some tech to ensure efficient, clear communication. Portable antennas can let you call or message miles away from cell towers, which could be helpful. Other tools to consider are any necessary weapons, uniforms, earpieces or vehicles.

4. Get the Right Insurance

Any business should get insurance, and that goes doubly for a field as risky as security. Whether you’re in data or physical security, you run the risk of causing some damage in some situations. Getting the right coverage can help protect your business if an issue arises.

At the very least, you’ll need general liability insurance to protect against things like injuries and property damage. You may also want bonding insurance to ensure you get paid and protect your finances. Other types of coverage to consider include property, auto, workers’ compensation and cybersecurity insurance.

5. Create a Long-Term Business Plan

It’s also crucial to write out a long-term business plan. This may seem unnecessary at first, but 70% of businesses that survive their first five years follow a strategic plan. Having a specific guide makes it far easier to pursue your long-term goals and adapt to growth and challenges.

Your business plan should include growth expectations, goals, guidelines for finding clients, a detailed budget and an analysis of competitors. When you have all this information in one place, you can make informed decisions. As more people try to make it in the security industry, that could give you a needed edge.

Ensure Success From the Start

When you follow these steps, you can prepare your security company for success from the beginning. Taking the time to go through these considerations early will help you overcome challenges that may arise later.

The security industry, in both physical and cyber fields, can be a profitable business. Remember, though, that success is not a guarantee. With the right planning, you can make the most of what the sector has to offer.