A staffed security company can require roughly $30,000 to $138,000 in first-year setup and working capital under the assumptions in the table below. A lean owner-operated operation can start for less. The spread depends on whether your officers are armed, how many vehicles you run, and how long you carry officer wages before client invoices clear.
That last item is the one most new owners underestimate, and it is the reason a security company can be profitable on paper while running out of cash. Worth knowing upfront: Delta Capital Group’s current minimums are 6 months in business, $15,000 in monthly revenue, and a 500 credit score, so Delta’s products are aimed at businesses that are already operating rather than pre-revenue launches.
The Cost Breakdown
| Category | Planning range used in this breakdown |
| State and company licensing | $1,000 to $5,000 |
| Owner qualifying agent training and exam | $500 to $2,000 |
| Insurance and surety bond, first year | $3,500 to $14,000 |
| Uniforms and officer equipment | $2,000 to $6,000 |
| Vehicles | $5,000 to $35,000 |
| Scheduling, reporting and monitoring software | $1,200 to $6,000 |
| Office, phones, website and marketing | $2,000 to $10,000 |
| Working capital for the first billing cycles | $15,000 to $60,000 |
| Total | $30,200 to $138,000 |
An unarmed, single-vehicle operation working a handful of commercial accounts sits near the bottom. An armed company with patrol vehicles and a larger officer roster sits near the top.
Need Funds Quickly?
Licensing Is the First Real Gate
Most states regulate security companies, guards, or both at the state level, while some rely partly on local requirements, and requirements vary more than in most trades. Many states require a qualifying agent or qualified manager with documented industry experience, which means the owner either holds that experience or hires someone who does. Depending on the state, requirements may include fingerprinting, background checks, a company license, individual guard credentials, and a qualifying manager.
Armed work may add firearms permits, qualification, and requalification requirements. Budget for the recurring cost, not only the initial one.
Check with your own state’s licensing authority before committing to a budget. Requirements in one state tell you very little about the next.
Insurance and Bonding
General liability is the baseline, and clients will ask for a certificate before they sign. Commercial auto coverage follows if you run vehicles. Workers’ compensation requirements vary by state and employee count, and rates for security work run higher than for office roles.
Armed operations can materially increase insurance, training, licensing, and equipment costs. Many commercial contracts also specify minimum coverage limits, so read the client’s requirements before you buy a policy, rather than buying a policy and hoping it satisfies them.
The Cash Flow Gap Nobody Budgets For
Here is the pattern that catches new owners. You win a commercial contract, hire and license officers, and put them on site. Officers are paid weekly or every two weeks. The client is invoiced monthly and pays on net 30 terms.
If officers begin work immediately, the company invoices monthly and the client then pays on net-30 terms; the first cash receipt can arrive roughly six to eight weeks after work begins. Win a second contract while the first is still ramping, and the gap widens rather than closes. This is a growth problem rather than a distress signal, but it consumes cash all the same.
Sizing that gap is straightforward. Multiply your weekly wage cost per contract by the number of weeks between the first shift worked and the first payment received, then add a margin for late payers.
The Market You Are Entering
Security is a large and stable employment sector. According to the Bureau of Labor Statistics, security guards and gambling surveillance officers held about 1,304,000 jobs in 2025, with median pay of $38,050 per year and employment projected to grow 1 percent from 2025 to 2035.
The 1 percent projection shows a mature employment market, but it does not determine the opportunity or profitability of an individual security firm.
Funding a Growing Security Company
Once you are operating, the funding question shifts from startup costs to covering the gap between wage outlay and client payment. A business line of credit suits that pattern, since you draw when a contract ramps and repay when the invoice clears. A working capital loan fits a single large contract with a known ramp period.
Businesses under two years old have narrower options. Our guide to business loans for companies with less than two years of history sets out what is realistic.
Fund Your Security Company with Delta Capital Group
Delta Capital Group provides unsecured working capital from $5,000 to $5,000,000 to business owners across the country. No collateral required. Approvals happen in as little as 24 hours, and 95 percent of approved applicants are funded within 48 hours. Minimum qualifications are 6 months in business, $15,000 in monthly revenue, and a 500 credit score. Apply at deltacapitalgroup.com.
Frequently Asked Questions
Can you start a security company for under $20,000?
It is possible for a very lean owner-operated, unarmed business, particularly with a vehicle already owned. Staffing, vehicles, and working-capital needs can push the requirement materially higher once you add employees and a second contract.
Do you need a license to start a security company?
Many states require a company-level license and individual guard credentials, but the structure varies by state. Some also require a qualifying manager with documented experience. Confirm with your state licensing authority, since the requirements differ substantially.
Is a security company profitable?
Profitability depends heavily on the spread between contract pricing and officer wages, plus overtime, insurance, supervision, and vehicle costs. Those cost lines are what a bid has to cover before anything reaches the bottom line.
How much working capital do you need to start?
Enough to cover officer wages for the full period between the first shift and the first client payment, plus a margin. The required buffer depends on payroll frequency, billing cycle, and customer payment terms. Running two contracts at once increases it accordingly.
Can a new security company get financing?
Delta Capital Group does not qualify pre-revenue startups because its minimum is six months in business and $15,000 in monthly revenue. Other startup-funding options have different requirements. Once you are past that point, the revenue from existing contracts is what supports the application.
