Crime and safety in South Africa are major factors for expats considering moving to the country. Much of the country’s crime is linked to income inequality. On a daily basis, theft-related crimes are likely to be the most cause for concern. A security business plan is essential to starting a new, expanding your current, or buying an existing security business.
The South African Security Industry
The South African security industry has been in existence for many decades and is one of the most sophisticated in the world. The South African security industry increased by an annual 30% in the 1970s, 1980s and 1990s, and the current growth rate is estimated to be at 15%. Whilst the security market itself comprises of many segments, the South African industry today can justifiably be said to consist of 4 key technology segments namely access control, CCTV surveillance, intrusion detection and alarms, and fire protection.
The South African private security sector is a multi-billion rand industry, with citizens paying up to R45 billion a year for private protection.
Other important and competitive sectors include asset tagging (primarily in the retails sector), physical and perimeter security, vehicle security and IT security. According to latest statistics, the overall security industry in South Africa -commercial, industry and domestic- is estimated to be worth an annual turnover of US$6-billion. The country has some 300 000 registered security officers and 4500 registered businesses. In this regard, the percentage of security income turnover to gross domestic product is said to be one of the highest in the world.
Originally mainly an importer of security products, South Africa is now a vibrant exporter of security services and products; i.e.: riot gear, electrified fencing, razor wire fencing, traffic barriers, electronic access control systems, remotes, outdoor beams, radio transmission systems, security uniforms and footwear, alarm control software, safes, bullet resistant doors and screening, fire resistant safes and cabinets, vaults and doors, access control booths, access control panels, security seals, and two way radio equipment.
The industry has also recently seen the emergence of inventors who have produced a wide range of access control systems that continue to rejuvenate the industry.
Given the above backdrop, it is clear that the security industry in South Africa is poised for growth due to opportunities presented by the local market, which have translated into competitiveness at an international level.
Types of security and security companies include:
•Security guards;
•Reaction services;
•Security guards (cash-in-transit);
•Special events;
•Entertainment/Venue control;
•Body guards;
•Security consultants;
•Security control rooms;
•Security equipment installers;
•Rendering of security services;
•Trainers;
•Private investigators;
•Car watchers;
•Manufacturers of security equipment;
•Locksmiths and key cutters;
•Insurance;
•Security and loss control;
•Alarm installations;
•Fire prevention and detection;
•Consulting engineers;
•Dog trainers; and
•Anti-poaching.
Key elements for a comprehensive Security Business Plan include:
•Executive summary: This is an overview of your business and your plans. It includes your objectives, mission, and keys to success.
•Services and/or Products: State the services and/or products your company will be providing.
•Market analysis summary: This section includes information on market segmentation, a target market segment strategy, a service business analysis, and information on your competition as well as buying patterns.
•Strategy and implementation summary: Discuss your competitive edge, marketing strategy, sales strategy, sales forecast, and milestones to be achieved.
•Management summary: Describes how your business is structured, introduces who is involved, outlines external resources, and explains how the business is managed.
•Financial projections: Documents comprising of the management account, income statement, balance sheet, cash flow, cash forecast, break even analysis, loan amortisation schedule, and fixed asset schedule. This includes charts, ratios, graphs, and calculations.
•Annexures: Statutory information needed by funders in an application. This includes the CV’s and ID’s of management personnel, tax returns, and other supporting documents.
At Dream Team Capital…
We understand the complexities of the criteria and requirements for an accurate and customised business plan. Our developments are used regularly to create a vision, secure funding, secure non-repayable business grants, attract team members and/or manage the Company. Whether you are using the plan to raise funding and/or non-repayable business grants, we guide you through the process and provide access to our extensive network of funders.
Let us develop your Security Business Plan today!
For more information and assistance – Contact us