There’s more to starting a business than merely filing paperwork with the government. This basic guide to beginning a bodyguard business has been put together by us. These processes will ensure that your new firm is well-planned, legally compliant, and correctly registered.
Looking into your options? Other tiny business ideas can be found here.
On the Startup Savants podcast, actual founders share their startup stories and business insights.
STEP 1: Make a business plan.
Entrepreneurial success requires a well-thought-out strategy. It will assist you in mapping out the details of your company and uncovering some unknowns. Consider the residential security services London following crucial points:
- What are the initial and continuing expenses?
- Who is your intended audience?
- What is the maximum amount you can charge customers?
- What will you call your company?
Fortunately, we’ve already done a lot of the legwork for you.
What are the expenses of starting a bodyguard business?
Starting a bodyguard service might cost anything from $10,000 to $50,000. These monies will be used to:
Advertising Licenses and Permits Office Equipment Training
Business entrepreneurs with low initial funding may be able to cut their office and advertising costs, but saving on other expenses is challenging.
What are the continuing costs of running a bodyguard company?
A bodyguard company’s continuing expenses are significant. Rent, utilities, and employee pay are among them. Client bills frequently include travel charges and other unusual costs.
Who is the intended audience?
Many people could benefit from close protection services. Celebrities, businesspeople, and politicians all have bodyguards. They also safeguard journalists and activists in some locations.
How can you make money as a bodyguard?
Bodyguard companies generate money by charging clients for the close protection they require. Clients may require protection for a single occurrence, a period of time, or an unlimited period of time.
What is the maximum amount you can charge customers?
Bodyguards are not cheap to hire. Individual bodyguards in Hollywood cost between $500 and $1,000 for a day around town. Traveling to another city might raise the cost per guard to more than $2,000 per day.
While firms in other parts of the country may not be able to charge these prices, those that provide foreign services may be able to charge much more.
What is the most profit a bodyguard company can make?
Regardless of the services they give, bodyguard businesses can generate a lot of money. While only protecting clients on weekends, a self-employed business owner with no employees may earn between $1,000 and $2,000 per week. In one weekend, a company that provides services to clients while they are traveling could earn $9,000 or more.
How can you increase the profitability of your company?
By providing extra services to clients, bodyguards can simply enhance their revenue. Because clients are already interested in protective services and trust their bodyguards, selling alarm systems, weapon training sessions, and guard dog training is simple.
Bodyguards may offer these services for a cost, or they may refer you to trusted partners who will pay you a commission.
What will you call your company?
Choosing the appropriate name is crucial and difficult. If you don’t have a name yet, check out our How to Name a Business guide or use our Bodyguard Business Name Generator for inspiration.
If you run a sole proprietorship, you might want to choose a different business name than your own. For further information, see our DBA guide.
When registering a business name, we recommend conducting the following research:
- The business records of your state
- Records of federal and state trademarks
- Platforms for social media
- Availability of web domains.
It’s critical to get your domain name registered before someone else does.
STEP 2: Establish a legal entity.
The sole proprietorship, partnership, limited liability company (LLC), and corporation are the most popular business structures.
If your bodyguard business is sued, forming a legal business entity such as an LLC or corporation protects you from being held personally accountable.
Check out our LLC Formation Guide.
Form your LLC with the help of a professional service.
There are two such dependable services:
For a nominal amount, you can form an LLC yourself and pay only the minimal state LLC fees, or you can employ one of the Best LLC Services.
It’s a good idea to choose a registered agent for your LLC. A complimentary year of registered agent services is frequently included in LLC creation packages. You have the option of using a registered agent or acting on your own.
STEP 3: File your taxes
Before you can start doing business, you’ll need to register for a number of state and federal taxes.
You will need to apply for an EIN in order to register for taxes. It’s really simple and completely free!
You can get your EIN for free by going to the IRS website, faxing it in, or mailing it in. Read our article What is an EIN? for more information on EINs and how they might help your LLC.
Find out what an EIN is and how to get one in our What is an EIN guide, or look up your existing EIN in our EIN lookup guide.
Taxes on Small Businesses
Depending on which business form you choose, you may have different taxation options for your company. Some LLCs, for example, may benefit from being taxed as a S corporation (S corp).
These resources will help you learn more about small business taxes:
- Taxes on LLCs
- LLC vs. Sole Proprietorship
- Corporation vs. LLC
- S Corporation vs. LLC
- How to Form a S Corporation
- S Corporation vs. C Corporation
There may be particular state taxes that apply to your company. Our state sales tax guides can teach you more about state sales taxes and franchise taxes.
STEP 4: Establish a corporate bank account and a credit card
Personal asset protection requires the use of distinct business banking and credit accounts.
Your personal assets (your home, car, and other valuables) are at risk when your personal and business accounts are intermingled. This is known as piercing your company veil in business law.
Learning how to build corporate credit can also help you secure credit cards and other financing in your company’s name (rather than your own), lower interest rates, and increase credit lines.
Open a bank account for your business.
In addition to being a requirement for business loans, opening a business bank account:
- Separates your personal assets from the assets of your firm, which is required for personal asset protection.
- It simplifies bookkeeping and tax reporting.
- Create a net 30 account.
Net 30 accounts are used to establish and grow credit for businesses as well as boost cash flow. A net 30 account allows firms to purchase items and pay for them in full within a 30-day period.
The major commercial credit bureaus receive reports from several net 30 credit providers (Dun & Bradstreet, Experian Business, and Equifax Business Credit). This is how companies establish company credit in order to obtain credit cards and other lines of credit.
Apply for a business credit card.
Obtaining a company credit card provides the following benefits:
- Put all of your company spending in one location to separate personal and business expenses.
- Build your company’s credit history, which can come in handy if you ever need to raise money.
- Recommended: Apply for a Divvy business credit card with speedy approval and start building your business credit.
STEP 5: Create a business accounting system.
Understanding your business’s financial performance requires keeping track of your numerous expenses and sources of money. Maintaining precise and complete records also makes annual tax filing much easier.
STEP 6: Secure the required permits and licenses
Failure to get required permissions and licenses can result in significant fines or possibly the closure of your firm.
State and local licensing requirements for businesses
Operating a bodyguard business may necessitate the acquisition of certain state licences and licenses. Visit the SBA’s reference to state licenses and permits to learn more about your state’s licensing requirements.
On the goods or services they supply, most businesses are required to collect sales tax. Read our article, Sales Tax for Small Businesses, to discover more about how sales tax will influence your firm.
To learn more about local licenses and permits, go to:
- Consult the clerk’s office in your town, city, or county.
- Contact one of the local associations mentioned in the US Small Business Associations database of local business resources for assistance.
- Occupation Certificate
A bodyguard business is usually managed from a location. A Certificate of Occupancy is usually required for businesses that operate from a physical site (CO). All building codes, zoning laws, and government restrictions have been met, according to a CO.
- If you plan to rent a space, the landlord is usually responsible for obtaining a CO.
- Before signing a lease, make sure your landlord has or can get a valid CO for a bodyguard business.
- A new CO is frequently required after a big refurbishment. If your business will be refurbished before opening, insert wording in your leasing agreement that states that lease payments will not begin until a valid CO has been obtained.
- You will be responsible for acquiring a valid CO from a local government entity if you plan to buy or build a location.
- To guarantee that your bodyguard business is in compliance and may receive a CO, review all building codes and zoning standards for the location of your business.
Contracts for Services
Before beginning a new project, bodyguard companies might consider requiring clients to sign a services agreement. By defining payment terms and conditions, service level expectations, and so on, this agreement should explain client expectations and reduce the possibility of legal problems.
STEP 7: Obtain commercial insurance
Insurance, like licenses and permits, is required for your business to operate safely and legally. In the case of a covered loss, business insurance protects your company’s financial well-being.
There are several insurance policies designed for various sorts of organizations with various risks. If you’re not sure what kinds of dangers your company might face, start with General Liability Insurance. This is the most frequent type of coverage required by small businesses, so it’s a good place to start.
Get more information on General Liability Insurance.
Workers’ Compensation Insurance is another important insurance product that many businesses require. If your company has employees, it’s likely that your state may require you to carry Workers’ Compensation Insurance.
STEP 8: Create a brand
Your company’s brand is both what it stands for and how the general public perceives it. A strong brand will set your company out from the competition.
If you’re not sure how to design a logo for your small business, check out our Develop Guides for Beginners. We’ll provide you useful tips and guidance on how to design the greatest distinctive logo for your company.
If you already have a logo, you can use our Free QR Code Generator to convert it to a QR code. Choose from 13 different types of QR codes to produce a code for your business cards and publications, or to help promote your new website.
How to sell and develop a bodyguard business
Business owners can acquire clients by writing personal letters to high-profile individuals and networking with police officers, in addition to having a solid website and using local advertising. Many persons who require bodyguards will contact the police at some point, allowing officials to make helpful recommendations.
How to keep consumers returning
Repeat customers are common among bodyguard companies that give exceptional service. People who require security continue to hire the same firm.
Still undecided on what type of business to start? Check out the most recent Small Business Trends to get some ideas.
STEP 9: Make a website for your company.
The next step after defining your brand and designing your logo is to create a website for your company.
While developing a website is a necessary step, some people may believe it is out of their grasp since they lack website-building skills. While this may have been a valid concern in 2015, web technology has advanced significantly in recent years, making the lives of small business owners much easier.
The following are the key reasons why you should not put off developing your website:
- Websites are required for any reputable businesses. When it comes to getting your business online, it doesn’t matter what size or industry you’re in.
- Social media accounts, such as Facebook pages or LinkedIn business profiles, are not a substitute for having your own website.
The GoDaddy Website Builder, for example, has made constructing a basic website quite straightforward. To make a website you can be proud of, you don’t need to pay a web developer or designer.
The process will be quick and pleasant if you use our website building tips, and it should take no more than 2-3 hours to complete.
WordPress, WIX, Weebly, Squarespace, and Shopify are some more popular website builders.
STEP 10: Configure your company telephone system
Getting a business phone is one of the most effective strategies to keep your personal and professional lives distinct and private. That isn’t the only advantage; it also aids in the automation of your organization, provides respectability to your company, and makes it easier for potential consumers to locate and contact you.
Entrepreneurs that wish to set up a business phone system can choose from a variety of options. We compared and ranked the top firms based on price, features, and simplicity of use. To choose the best phone service for your small business, read our analysis of the Best Business Phone Systems 2022.