Opportunity
Problem
In the current political climate, with increasing fears of terrorist activity, and the current economic climate, which promises an upswing in general and in outsourced services especially, this business is launching at the right time. In order to build a strong client base, the business will initially target large retail outlets and building management firms.
Solution
Batten-Hatchez Security is a company that will take away the worries of clients who need security guards to protect their properties, events, and facilities. They offer excellent customer service and extensive training for their employees.
Market
[Note that marketing information is not current; they are included solely for illustration. Dates have changed.
IBISWorld reports that there were 41,000 security companies in the U.S. with 56,000 employees. According to these numbers, the average company size was $700,000. It means that both small and large companies can be included in this industry. There are not many barriers to entry as long as all the legal requirements are met. The capital investment in the business can be very low. The supply of labor is crucial for this industry, which often uses retired police officers as security personnel.
As security guard services are sold business-to-business, marketing and advertisement is generally targeted on the markets and industries the security companies seek to serve. Security guard providers are usually found online or through referrals by other companies.
Competiton
[Note that marketing information is not current; they are included solely for illustration. Dates have been changed.]
Securitas AB (Allied Security LLC), The Brink’s Company and G4S plc are some of the leading players in this sector. There are many players that provide services to large markets such as governments, chemical and petrochemical companies, colleges, universities, commercial realty, financial institutions, hospitals, health care facilities and manufacturing and industrial communities.
Why Us
Batten-Hatchez Security removes the concern for clients who require security guards at their events, buildings, or facilities. The company provides excellent customer service, as well as in-depth training and support for employees.
Expectations
Forecast
The company expects to achieve respectable sales for the first year, and nearly double that by the third year. The industry average gross margins are based upon guard labor costs vs. bills. After the initial investment and launch, a lean first year, and the establishment of an office and training space in the second year, the business will be poised to expand through its own financing after three years. After the business proves viable in other cities, the founders may sell it to get an exit.
Financial Highlights per Year
Financing Needed
The $76,700 investment as follows:
Louis Giordano $15,000
Jared Case $15,000
Unspecified investment by family/friend: $46,700