Terrorism has increased dramatically since 2011, with over 10,000 terrorist events happening each year. People who are particularly vulnerable to terrorist attacks usually seek additional security and resort to bodyguard services.
Bodyguard companies may provide a variety of close protection services. Some provide security solely during particular occasions, while others provide protection throughout the clock anywhere in the globe. Dealing with paparazzi may be a part of the job for those who work with celebrity clients.
Table of Contents
Follow these ten steps to start a bodyguard business:
Plan your Bodyguard Company
Create a legal entity for your bodyguard business.
Taxes must be registered for your bodyguard business.
Create a Business Bank Account and a Credit Card
Create Accounting for Your Bodyguard Company
Get the Permits and Licenses You Need for Your Bodyguard Business
Purchase Bodyguard Business Insurance.
Create a Bodyguard Business Brand
Make a website for your bodyguard business.
Configure your Business Phone System
Starting a company entails more than just registering it with the state. This basic guide to beginning a bodyguard company has been put together by us. These stages will guarantee that your new company is well-planned, correctly registered, and legally compliant.
STEP 1: Make a business plan.
A well-thought-out strategy is vital for entrepreneur success. It will assist you in mapping out the intricacies of your organisation and uncovering some unknowns. Consider the following crucial topics:
What are the initial and continuing expenses?
Who is your intended audience?
How much money may you charge your customers?
Fortunately, we have done a lot of the legwork for you.
What are the expenses of starting a bodyguard business?
Starting a bodyguard company costs between $10,000 and $50,000. These monies will be used to:
A workplace
Equipment
Training
Permits and licences
Advertising
Business entrepreneurs with low initial funding may be able to cut their office and advertising expenditures, but saving on other expenses is tough.
What are the continuing costs of running a bodyguard business?
A bodyguard firm has significant continuous expenditures. Rent, utilities, and staff pay are among them. Travel fees and other unforeseen charges are often included into customer rates.
Who is the intended audience?
Many persons may need close protective services. Bodyguards protect celebrities, corporate executives, and politicians. They also safeguard journalists and activists in certain locations.
How does a bodyguard company earn money?
Bodyguard companies generate money by charging customers for the close protection services they need. Clients may need coverage for a single incident, a period of time, or on a continuing and indefinite basis.
How much money may you charge your customers?
Bodyguards are not inexpensive to hire. Individual bodyguards in Hollywood cost between $500 and $1,000 a day. 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 allowed to charge these prices, those who provide foreign services may be able to charge much more.
How much money can a bodyguard company make?
Bodyguard firms may generate substantial money regardless of the services they give. A self-employed company owner with no employees might make $1,000 to $2,000 per week while only safeguarding customers on weekends. A firm that provides services to customers while they are travelling may earn $9,000 or more in a single weekend.
How can you increase the profitability of your company?
Bodyguards may simply expand their earnings by providing customers with extra services. Clients are already interested in protective services and trust their bodyguards, so selling alarm systems, pistol training sessions, and guard dog training is simple.
Bodyguards may provide these services themselves for a charge, or they may refer trustworthy partners who offer a commission.
STEP 2: Establish a legal entity
Sole proprietorship, partnership, limited liability company (LLC), and corporation are the most frequent business structure forms.
Establishing a legitimate business organisation, such as an LLC or corporation, shields you from personal liability if your bodyguard company is sued.
STEP 3: File your taxes
Before you can begin for business, you must register for a number of state and federal taxes.
To register for taxes, you will need to get an EIN. It’s really simple and completely free!
Taxes on Small Businesses
Depending on the business form you choose, you may have multiple choices for how your company is taxed. Some LLCs, for example, may benefit from being taxed as a S company (S corp).
These guides will teach you more about small company taxes:
Taxes on LLCs
LLC vs. sole proprietorship
Corporation vs. LLC
S Corp vs. LLC
How to Form a S Corporation
S Corporation vs. C Corporation
There may be state taxes that apply to your company. In our state sales tax guides, you may learn more about state sales taxes and franchise taxes.
STEP 4: Establish a company bank account and credit card
Personal asset protection requires the use of distinct business banking and credit accounts.
When you combine your personal and business accounts, your personal assets (your house, vehicle, and other possessions) are at danger if your company is sued. This is known as penetrating your company veil in business law.
Furthermore, understanding how to develop corporate credit may help you get credit cards and other financing in your company’s name (rather than your own), lower interest rates, larger lines of credit, and other benefits.
Establish a business bank account.
Opening a business bank account is not only required when asking for business financing, but it also:
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 develop and grow company credit while also increasing cash flow. Businesses use a net 30 account to purchase items and refund the whole debt within a 30-day period.
Many net 30 credit suppliers submit information to the main business credit agencies (Dun & Bradstreet, Experian Business, and Equifax Business Credit). This is how firms establish business credit in order to get approved for credit cards and other lines of credit.
Apply for a business credit card.
Obtaining a business credit card benefits you in the following ways:
Put all of your company’s costs in one location to separate personal and business spending.
Build your company’s credit history, which will be important for raising funds in the future.
STEP 5: Establish business accounting
Recording your numerous costs and sources of revenue is crucial to assessing your company’s financial status. Keeping precise and thorough accounting also makes yearly tax filing much easier.
STEP 6: Obtain all required permissions and licences
Failure to get appropriate permissions and licences may result in significant penalties or possibly the closure of your firm.
Requirements for State and Local Business Licensing
To run a bodyguard company, certain state permissions and licences may be required. Visit the SBA’s reference to state licences and permits to learn more about licencing requirements in your state.
For information on local licences and permissions, visit:
Check with the clerk’s office in your town, city, or county.
Contact one of the local organisations mentioned in the US Small Business Associations database of local business resources for help.
Occupancy Certificate
A bodyguard company is usually conducted from an office. A Certificate of Occupancy is often required for businesses that operate from a physical site (CO). A certificate of occupancy certifies that all building rules, zoning laws, and government requirements have been satisfied.
If you intend to rent a space:
In most cases, it is the landlord’s obligation to get a CO.
Before leasing, ensure that your landlord has or can get a valid CO for a bodyguard company.
A new CO is often required after a big remodelling. If your location will be refurbished before opening, incorporate wording in your leasing agreement saying that lease payments would not begin until a valid CO is given.
If you intend to buy or create a location:
It is your responsibility to secure a valid CO from a local government entity.
Examine all building laws and zoning standards for your business’s location to verify that your bodyguard company is in compliance and may receive a CO.
Contracts for Services
Before beginning a new project, bodyguard companies might consider asking customers 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 licences and permits, is required for your company to operate safely and legally. In the case of a covered loss, business insurance protects your company’s financial well-being.
There are several sorts of insurance plans designed for various types of companies with varying risks. If you are unaware about the hazards that your company may encounter, start with General Liability Insurance. This is the most popular coverage required by small companies, so it’s a good place to start for yours.
Workers’ Compensation Insurance is another important insurance product that many companies need. If your company will have workers, your state may require you to purchase Workers’ Compensation insurance.
STEP 8: Establish your brand
Your company’s brand is what it stands for, as well as how the public perceives it. A strong brand will help your company stand out from the crowd.
How to Promote and Market a Bodyguard Company
Business owners may acquire customers by writing personal letters to high-profile persons and networking with police officers, in addition to having a solid website and employing local advertising. Many persons in need of bodyguards may contact the police at some time, allowing authorities to make vital references.
How to Keep Customers Returning
Bodyguard companies who offer exceptional service often have a large percentage of repeat customers. People who seek security continue to employ the organisation in which they have faith.
STEP 9: Create your company’s website.
After you’ve defined your brand and designed your logo, the next step is to build a website for your company.
While developing a website is an important step, some may be concerned that it is out of their grasp due to a lack of website-building skills. While this was a fair concern in 2015, online technology has made significant advances in recent years, making the lives of small company owners considerably easier.
The following are the primary reasons why you should not put off developing your website:
Every genuine company has a website, period. When it comes to bringing your company online, it doesn’t matter what size or sector it is.
Social media accounts, such as Facebook pages or LinkedIn company profiles, are not a substitute for your own business website.
STEP 10: Install your company phone system.
Getting a phone for your company is one of the finest methods to keep your personal and professional lives distinct and private. That isn’t the only advantage; it also helps you automate your company, provides it legitimacy, and makes it simpler for prospective clients to identify and contact you.