How to start a security services company in Nigeria , this blog is designed to help you determine if your security services company business idea is feasible
To identify questions and problems you will face in converting your idea of owing a Security Services Company anywhere in Nigeria into reality and to prepare for starting your security company business.
The Blog Page features all the essential aspects you must consider before you start your security services company business in Nigeria.
This will allow you to predict problems before they happen and keep you from losing your shirt, on Security business ideas.
Operating a successful security services in Nigeria, will depend on the following 4 conventions:
1. A practical plan with a solid foundation.
2. Dedication and willingness to sacrifice to reach your goal.
3. Technical skills
4. Basic knowledge of management finance record-keeping and market analysis
As a new owner, you will need to master these skills, and techniques, if your Security Services business is to be successful.
Identify your reasons Of Starting a Security Services:
As a first and often overlooked step, ask yourself, why you want to own your own Security Services business. check the reasons that apply to you.
1. Freedom from the 9-to-5 daily work routine.
2. Being your own boss.
3. Doing what you want, when you want to do it.
4. Improving your standard of living.
5. Boredom with your present job.
6 Having a product or service, for which you feel there as a demand.
Some reasons are better than others, none are wrong. However, be aware that there are trade-offs: for example, you can escape the 9-to-5 daily routine, but you may replace it, with a 6 a.m. to 8 p.m. routine.
Preliminary Analysis (Major Flaws) In Security Services:
A “Yes” response, to questions such as the following, would indicate that your business idea, has little chance for success.
1. Are there any causes, (such as, restrictions, monopolies, shortages, that make any of the required factors of operation unavailable, (such as, unreasonable cost, or scarce skills)?
2. Our capital requirements for entry, or continuing operations, excessive?
3. Is adequate financing hard to obtain?
4. Are there factors that prevent effective marketing ?
A Self-Analysis Steps Before Starting a Security Services Company In Nigeria.
Starting a Security Services In Nigeria as a business requires certain personal characteristics. This portion of the page deals with you, the individual.
This next group of questions though brief, is vitally important to the success of your plan. it covers the physical, emotional and financial strains you will encounter in starting a Security Services business.
Are you aware that running a Security Services Company In Nigeria, may require working 12 to 16 hours a day, six days a week and maybe even Sundays and holidays.
Do you have the physical stamina, to handle the workload and schedule?
Do you have the emotional strength to withstand the strain ?
Are you prepared if needed, to temporarily lower your standard of living, until your business is firmly established?
Is your family prepared to go along with the strains they too must bear?
Are you prepared to lose your savings, (in case your plan fails) ?
Finding A Niche or Concept In Security Services Business In Nigeria:
Small businesses range in size from a manufacturer, with many employees, and millions of dollars in equipment, to the loan window washer, with a bucket and a sponge.
Obviously the knowledge and skills, required for these two extremes, are far apart, but for success they have one thing in common.
Each has found a business niche, and is filling it.
The most critical problems you will face, in your early planning, will be to find your niche or concept, and determine the feasibility of your idea.
“Get into the right business at the right time” is very good advice, but following that advice, may be difficult.
Many entrepreneurs plunge into a business venture, so blinded by the dream, that they fail to thoroughly evaluate its potential.
Is your Security Services Company idea feasible ?
Before you invest time, effort, and money, the following exercise will help you separate sound ideas, from those bearing a high potential for failure.
Identify and briefly describe, the business you plan to start.
Identify the product or service you plan to sell.
Answering yes, to any of the following 3 questions, means you are on the right track. A negative answer, to all of them, means the road ahead could be rough.
1. Does your product or service satisfy an unfilled need?
2. Will your product or service, serve an existing market, in which demand exceeds supply?.
3. Will your product or service be competitive, based on its quality, selection, price or location?
Market Analysis Before Starting A Security Services Firm In Nigeria.
For a small business to be successful, the owner must know the market. To learn the market, You must analyze it, a process that takes time and effort.
You don’t have to be a trained statistician, to analyze the marketplace, nor does the analysis have to be costly.
Analyzing the market is a way to gather facts, about potential customers, and to determine the demand, for your product or service.
The more information you gather, the greater your chances of capturing a segment of the market. Know the market before investing your time, and money, in any business venture.
The following questions, will help you collect the information necessary to analyze your market, and determine if your product or service will sell .
This brief exercise, will give you a good idea, of the kind of market planning you need to do. An answer of ‘no’ to any of the questions, indicates a weakness in your plan, so do your research until you can answer each question with that “yes”.
1. Do you know who your customers will be?
2. Do you understand their needs and desires?
3. Do you know where they live?
4. Will you offering the kind of products or services that they will buy? .
5. Will your prices be competitive, in quality and value ?
6. Will your promotional program be effective?
7. Do you understand how your business compares, with your competitors?
8. Will your business be conveniently located, for the people you plan to serve?
9. Will there be adequate parking facilities, for the people you plan to serve?
Planning Your Startup (Quick Guide On Security Services Start-Up In Nigeria)
So far this page has helped you identify questions, and problems you will face, converting your idea into reality, and determining if your idea is feasible.
Through self-analysis you have learned of your personal qualifications, and deficiencies, and through market analysis. you have learned if there is a demand for your product or service.
The following questions are grouped according to function; they are designed to help you prepare for “Opening Day”
Name And Legal Structure
1. Have you chosen a name for your business?
2. Have you chosen to operate as sole proprietorship, partnership or corporation?
Business Premises And Location
1. Have you found a suitable building in a location convenient for your customers?
2. Can the building be modified for your needs, at a reasonable cost?
3. Will you have a lawyer check the zoning regulations & Lease?
Merchandise Plan On Security Services:
1. Have you decided what items you will sell, or produce or what services, you will provide?
2. Have you made a merchandise plan, based upon estimated sales, to determine the amount of inventory you will need, to control purchases?
3. Have you found reliable suppliers, who will assist you in the startup?
4. Have you compared the prices, quality, and credit terms, of suppliers?
Business Records Ideas For Security Services In Nigeria:
Are you prepared to maintain complete records, of sales, income and expenses, accounts payable, and receivables ?
Have you determined how to handle payroll records, tax reports, and payments?
Do you know what financial reports, should be prepared, and how to prepare them?
Finances Aspect Of Opening a Security Services Company:
A large number of small businesses, fail each year. There are a number of reasons for these failures, but one of the main reasons as insufficient funds.
To many entrepreneurs, try to start and operate a business, without sufficient capital, (money).
To avoid this dilemma, you can review your situation by analyzing the following 3 questions:
1. How much money do you have?
2. How much money will you need to start your business?
3. How much money will you need to stay in business?
In order to answer the second question, (How much money will you need to start your business?), you need to prepare an estimate of all your startup-costs.
Here is a list of items, you may need to take into account. Note that this list is for a retail business.
Items will vary for service, construction manufacturing or online firms.
Decorating and remodeling, fixtures and equipment, installing fixtures and equipment, Services and supplies, Beginning inventory cost, legal professional fees, licenses and permits, Telephone utility deposits, insurance, Signs, Advertising for opening, Unanticipated expenses.
Now the answer to the third question, (How much money will you need to stay in business?), must be divided into two parts: immediate costs and future costs.
From the moment the door to your new business opens, a certain amount of income may come in. However, this income should not be projected, in your operating expenses.
You will need enough money available, to cover costs for at least the first three months of operation.
The following list, will help you project your operating expenses, on a monthly basis.
Typical expenses for one month may include:
- Your living costs
- employee Wages
Now sum up the total estimated monthly expenses, and multiply it by three; this is the amount of cash you will need to cover operating expenses for 3 months.
Deposit this amount in a savings account before opening your business; Use it only for those purposes listed in the above list, because this money will ensure that you will be able to continue in business, during the crucial early stages.
By adding the total startup costs, to the total expenses for 3 months, you can learn what the estimated costs will be to start, and operate your business for 3 months.
By subtracting the totals of the lists, from the cash available, you can determine the amount of additional financing, you may need, if any.
Now you will need to estimate, your operating expenses for the first year after startup.
The first step in determining your annual expenses, is to estimate your sales volume, month by month. Next, determine the cost of sales. You may want to use a spreadsheet to do this.
Security Services After Start-up Guide:
The primary source of revenue in your Security Services Company, will be from sales, but your sales will vary from month to month, because of seasonal patterns, and other factors.
It is important to determine if your monthly sales will produce enough income to pay each month bills.
An estimated cash flow projection will show if the monthly cash balance is going to be subject to such factors as the following: Failure to recognize seasonal trends.
Excessive cash taken from the business for living expenses. Too rapid expansion. And Slow collection of accounts, if credit is extended to customers.
If you have carefully answered all the questions on this page, you have seriously thought about your goal.
However, there may be some things, you may feel you need to know more about. Owning and running a security services company business is a continuous learning process.
Research your idea, and do as much as you can yourself, but don’t hesitate to seek help from people who can tell you what you need to know.