How can small businesses afford security guard services at reasonable rates?

I’m starting a security business and will be providing my own labor to start. My plan is to target small businesses because I think that’s where I have the best chance of securing contracts. The problem is, small businesses don’t have the same budget as larger ones, and charging $40 an hour is hard to justify.

I’m treating this business as a side hustle for now and don’t mind offering a lower rate initially, but how low is too low? I’ve considered offers like $500 for 40 hours, knowing that I’ll be operating at a loss, but I have to start somewhere. How can I find a balance where I’m charging a rate that small businesses can afford without hurting my own bottom line? Thanks for any advice.

Instead of offering a direct guard service, consider offering a route service. Contact multiple small businesses in the same area and offer them a package deal. Your guards can patrol multiple locations on a set route. You can also offer a quick response service where a guard is nearby if something happens.

We had success with this model when working with a security company. You just need to find the right niche and scale accordingly.

@Jess
This is a great idea! I hadn’t thought about offering a patrol route. How could I manage this if I’m the only one providing labor at the start? I don’t have a team yet.

Edit: Thanks again. I’m drafting a plan based on this approach now.

@Hadi
When I used to work in security, we took every job that came our way: retail, hospitality, corporate, you name it. If I were starting my own company, I’d focus on services like vacation/seasonal home watch. It’s something you can scale as you grow.

@Hadi
I’ve seen a few strip malls where the security guard patrols the entire property instead of sticking to one spot. It helps prevent loitering and other issues that could impact the businesses there.

@Hadi
Have you researched what other security companies in your area are doing? Try calling a few and posing as a potential client to see what services they offer and how they price them. You don’t need to reinvent the wheel, just see what’s working and tweak it for your business.

@Hadi
You might also consider offering remote surveillance. Set up security cameras for clients and monitor them. If you see any suspicious activity, you can contact the authorities. It’s a scalable service.

@Yani
Thanks for the suggestion! How would you price remote surveillance if you were offering it?

@Jess
That’s a smart idea—offering a shared service where the costs are spread out among multiple businesses. You could even get tenants in a multi-unit building to share the service, especially if you offer them a discount as more tenants sign on.

You could create a co-op between neighboring businesses. Offer a group rate where they all share the cost of the service. It’s a way to generate income while you build up a client base and secure larger contracts.

Try approaching landlords or property managers. Sometimes security is included as part of the common area maintenance (CAM) fee, so tenants share the cost of the service through their rent.

Rylan said:
Try approaching landlords or property managers. Sometimes security is included as part of the common area maintenance (CAM) fee, so tenants share the cost of the service through their rent.

Thanks! I’ll definitely look into this.

Don’t lower your billing rate. Instead, offer your services to more businesses since your labor costs are already fixed.

Plan carefully. If things start getting rough (looting, etc.), you could be one of the few options for security, which could put you ahead of the competition. Make sure your system is scalable.

Also, you could offer a service where someone swings by twice a night for $40 a day. I’d pay for something like that for my small business, a food truck.

@Zane
Thanks! I’ve noticed that certain areas of my city could really benefit from a security presence. I’ll definitely be reaching out to businesses in those locations.

Hadi said:
@Zane
Thanks! I’ve noticed that certain areas of my city could really benefit from a security presence. I’ll definitely be reaching out to businesses in those locations.

Exactly. There are plenty of businesses that don’t have security but should, like pawn shops, jewelry stores, and even some gas stations. You could fill that gap in your area.

It can be tough to get into security without a law enforcement background, but offering patrol services for small businesses might be a good entry point. You could also talk to contractors—they often want someone to watch over tools and equipment.

$500 for 40 hours is way too low. You’re not valuing your time, and you’re setting an expectation with clients that won’t be sustainable in the long run.

Emerson said:
$500 for 40 hours is way too low. You’re not valuing your time, and you’re setting an expectation with clients that won’t be sustainable in the long run.

You’re right, it’s really low. I thought it would be a starting point, but I know I need to adjust my rates to reflect my overhead and other expenses.

@Hadi
That’s not a good starting point. At $500 for 40 hours, you’re billing $12.50 an hour, and that won’t cover your costs. Don’t forget you’ll owe 15.3% for FICA (Social Security/Medicare), which would leave you with just $423.50.

You’ll also need liability insurance, and security companies usually need to be bonded. Check your state’s requirements for licensing too. And if you’re driving around, you’ll need commercial car insurance, which isn’t cheap. It’s important to factor all of that in when setting your rates.