How to Start a Security Company in Ontario and Protect Profits -

In today’s world, security is a paramount concern for individuals, businesses, and communities alike. As threats become more sophisticated and diverse, the demand for reliable and professional security services continues to rise. If you have a passion for protecting others and a drive to become an entrepreneur, starting a security company in Ontario can be a rewarding and lucrative venture.

Let’s dive into the essential knowledge and actionable steps needed to start a security company in Ontario. Together, we’ll lay the foundation for your success in this dynamic and vital industry.

Key Takeaways

Understanding the security industry in Ontario is crucial before starting a security company.
Creating a solid business plan is essential to secure financing, attract investors, and guide your business decisions.
Obtaining necessary licenses and permits, hiring and training security personnel, investing in security equipment, marketing your security company, and maintaining quality and compliance are other crucial steps to starting a security company in Ontario.

1. Understanding the Security Industry in Ontario

Starting a security company in Ontario requires a solid understanding of the industry. The private security and investigative services industry in Ontario is regulated by the Ministry of the Solicitor General’s Private Security and Investigative Services Branch. The ministry sets out the requirements for individuals and companies that want to work in the industry.

To start a security company in Ontario, you need to know the different types of security services that are available. These include:

Security guards
Private investigators
Loss prevention officers
Bodyguards
Crowd controllers

Each type of security service has different requirements for licensing and training. For example, to become a licensed security guard in Ontario, you must complete a basic training course and pass a test. You can find more information about the training and testing requirements on the Government of Ontario’s website.

It’s also important to know the legal requirements for running a security company in Ontario. You need to register your company with the ministry and obtain a license. You must also ensure that all of your employees have the necessary licenses and training. Failure to comply with these requirements can result in fines or even criminal charges.

In addition to the legal requirements, you need to understand the market demand for security services in Ontario. You can research the market by looking at the types of businesses and organizations that require security services. This can include retail stores, banks, hospitals, and event venues. Understanding the market demand can help you determine the types of services to offer and the pricing structure for your company.

2. Legal Requirements and Regulations

Starting a security company in Ontario requires meeting specific legal requirements and regulations. Here are some essential things you need to know to ensure compliance:

Registering Your Business

You must register your security company with the Ministry of the Solicitor General if your business directly employs in-house security guards. However, if your business only uses security guards from a licensed security agency, you do not need to register. You can register or renew your business as an employer by visiting the Ontario.ca website.

Complying with the Private Security and Investigative Services Act

All security guard and private investigator agencies in Ontario must comply with the Private Security and Investigative Services Act (PSISA) and all regulations. Failure to comply can result in fines of up to $250,000. To ensure compliance, you must:

Identify yourself as a security guard or private investigator
Carry your applicable license when on duty
Show your license to anyone who asks to see it, including employers, police, and members of the public

Obtaining a License

To work as a security guard or private investigator in Ontario, you must have a valid license. You can learn how to apply for, renew, or replace a license and check the status of your application by visiting the Ontario.ca website.

Understanding Regulations

As a security company owner, you need to understand the regulations that apply to your business. Private security and investigative services is good place to learn about the regulations and acts pertaining to security agencies and other services.

3. Creating a Business Plan

Starting a security company in Ontario requires a well-thought-out business plan. A business plan is a roadmap that outlines your business idea, short and long-term business goals, and the resources needed to start and operate your business.

Market Analysis

Conducting market research is an essential step in creating a business plan. It helps you understand the security industry and market that you will be operating in. Some key factors to consider include the size of the market, the competition, and the demand for security services in your area. You can gather this information by researching online, attending industry conferences, or speaking with industry experts.

Financial Projections

Financial projections are another critical component of a business plan. They help you understand the financial viability of your business idea and how much funding you will need to get started. Your financial projections should include start-up costs, revenue projections, and cash flow projections. Be sure to include a detailed breakdown of expenses, such as rent, utilities, equipment, and staffing costs.

Marketing Strategy

A marketing strategy is crucial for attracting new clients and growing your business. Your marketing strategy should include a detailed plan for reaching your target audience, such as advertising, networking, or social media marketing. You should also consider offering promotions or discounts to attract new clients and retain existing ones.

4. Finding Funding for Your Security Company

When starting a security company in Ontario, funding takes the centre stage due to strict regulatory requirements, specialized equipment needs, and the operational costs of providing professional security services. Here’s why raising capital is so important for a security company in Ontario:

Regulatory compliance and licensing – Must obtain a Private Investigator and Security Guard Agency License through the Ministry of the Solicitor General, meet stringent background checks, and maintain required insurance and bonding. Security guards need individual licenses and training.
Insurance and bonding requirements – Substantial general liability insurance, professional liability coverage, and surety bonds required by law for security service providers.
Equipment and technology – Security cameras, alarm systems, communication equipment, uniforms, vehicles, and potentially specialized equipment like metal detectors or access control systems.
Vehicle fleet and communication – Reliable patrol vehicles, two-way radio systems, GPS tracking, and mobile technology for reporting and client communication. Professional appearance and reliable transportation are crucial for client confidence.
Training and certification costs – Security guard training programs, ongoing professional development, first aid certification, and specialized training for different security sectors (retail, corporate, events).
Working capital for payroll – Security services require immediate payroll for guards while client payments may have 30-60 day terms. Staff scheduling around-the-clock requires substantial payroll management.
Professional services and compliance – Legal fees for contracts, compliance consulting, and potentially investigation services if offering comprehensive security solutions.

Here’s how you can raise funding for your security company in Ontario:

Traditional business financing: Business loans from banks or credit unions can cover licensing, equipment, and vehicle purchases for security operations. Commercial lines of credit help manage payroll cash flow while waiting for client payments. Equipment financing specifically covers security cameras, alarm systems, and communication equipment.
Security industry-specific lenders: Some lenders specialize in security service businesses and understand the unique cash flow patterns and equipment needs. Commercial vehicle financing programs are available for patrol vehicles and fleet management.
Alternative financing: Invoice factoring services help bridge payment gaps between providing security services and receiving client payments. Revenue-based financing tied to security contracts allows flexible repayment based on service volume. Online business lenders offer faster approval for service-based businesses.
Personal and professional financing: Home equity loans provide lower interest rates for substantial startup capital needs. Professional networks within law enforcement or military often include potential investors familiar with security services.
Government Programs: There are many government programs available for starting a new business in Ontario:
- BDC Small Business Loan: A BDC Small Business Loan is designed to help Canadian entrepreneurs like you fund a wide range of business needs, from purchasing equipment to covering payroll or launching marketing campaigns. You can apply easily online for amounts up to $100,000, with approval subject to review.
- BDC Startup Financing: If you’re looking to launch or grow a business in Canada, BDC’s Startup Financing can help get you started with flexible loans up to $150,000. BDC is specifically focused on supporting entrepreneurs and offers advice alongside funding.
- Community Futures program: The program delivers a mix of funding, mentorship, and business advisory and could be a key source of support for your small business. This federally funded initiative focuses on building resilient local economies across Canada.
- Canada Small Business Financing Program: CSBFP is a federal initiative that aims to make it easier for you to get loans from major banks or credit unions by having the government share part of the risk with your lender.
- Thunder Bay Ventures Northwestern Ontario Investment Pool Loans: NWOIP offers loans extending up to $600,000. Thanks to their funding partner FedNor/Industry Canada, these expanded loans support local businesses in starting up or expanding.
- Superior North CDFC: Superior North CFDC administers a local investment fund to help finance new or existing small businesses and social enterprises in the Northwest Region of Ontario.
- RRFDC Equity Investments: Rainy River Future Development Corporation provides equity investments to entrepreneurs in the Northwest Region of Ontario, wishing to expand their businesses or begin a new business.
- Patricia Area Community Endeavours Business Loans: PACE provides access to capital for small businesses in Patricia Region through loans.
- Nishnawbe Aski Development Fund (NADF): NADF delivers Women Entrepreneurship Fund to support Indigenous women entrepreneurs seeking financing to start or grow a business.
- Chukuni Community Development Corporation Business Loans: The Corporation offers financing through equity participation, loans, and loan guarantees to business ventures in its catchment area.
- Community Futures of North & Central Hastings & South Algonquin Business Loans: Community Futures of North & Central Hastings & South Algonquin Business Loans
- ACCFutures ACCTermStartup: The ACCTermStartup Loan, offered by ACCFutures, is a specialized financial solution for startups within Akwesasne, Cornwall, and The United Counties of Stormont, Dundas & Glengarry.
- Orillia Area Community Development Corporation CCBF Grant: The Community Capacity Building Fund is intended to strengthen its communities by supporting projects of both for-profit businesses and non-profit organizations/social enterprises.

5. Obtaining Necessary Licenses and Permits

Starting a security company in Ontario requires obtaining necessary licenses and permits. It is essential to ensure that you comply with federal, provincial, and municipal regulations. Below are some of the licenses and permits that you may need to obtain:

Security Guard License: To operate a security company in Ontario, you must have a valid security guard license issued by the Ontario Government. You can apply for a license online or by mail. The application fee is $80, and you must also provide a recent photograph, fingerprints, and a criminal record check.
Business License: You may also need to obtain a business license from the municipality where your business is located. The requirements and fees vary depending on the location and type of business. You can use BizPal, a free online tool, to find the licenses and permits you need for your business.
Insurance: It is crucial to have liability insurance to protect your business from lawsuits and claims. You may also need to have workers’ compensation insurance if you have employees.
Firearms License: If you plan to provide armed security services, you must obtain a firearms license from the Canadian Firearms Program. The application process is relatively simple, and you can apply online or by mail. You must also complete a firearms safety course and pass a test.
Other Permits: Depending on the nature of your business, you may need to obtain additional permits, such as a permit to operate a patrol vehicle or a permit to install security cameras.

6. Hiring and Training Security Personnel

Recruitment Process

When it comes to hiring security personnel for your company, it’s essential to find the right candidates who can effectively carry out the duties of a security guard. The recruitment process should include background checks, reference checks, and interviews to ensure that you are hiring reliable, trustworthy, and competent individuals.

To attract top talent, you can post job vacancies on job boards, social media platforms, and your company website. You can also leverage your network and ask for referrals from current employees, industry associations, and training schools.

Training Programs

Training is a critical component of preparing security personnel for their roles. In Ontario, all security guards must complete basic training and pass a ministry test before applying for a license. Private investigators also require specialized training. You can partner with a registered training provider to offer your employees the necessary training programs.

In addition to the mandatory training, you can provide ongoing training to your security personnel to enhance their skills and knowledge. This can include training on emergency response, conflict resolution, report writing, and more.

Investing in your employees’ training and development can help improve their job satisfaction, increase their loyalty to your company, and ultimately improve your clients’ satisfaction with your services.

7. Investing in Security Equipment

When starting a security company in Ontario, investing in security equipment is a crucial step. The right equipment can help you provide better security services to your clients and give you a competitive edge in the market. Here are some essential security equipment that you should consider investing in:

Surveillance Cameras

Surveillance cameras are a must-have security equipment for any security company. They help you monitor and record activities in a specific area, which can be crucial in identifying and preventing security threats. Make sure to invest in high-quality cameras that provide clear images and have features like night vision and motion detection.

Alarm Systems

Alarm systems are another important security equipment that you should consider investing in. They can detect and alert you of any unauthorized entry or security breach, allowing you to take action immediately. Make sure to choose an alarm system that is reliable, easy to use, and can be integrated with other security equipment.

Access Control Systems

Access control systems are an effective way to restrict access to specific areas or buildings. They can help you manage and monitor who enters and exits a particular location, reducing the risk of security breaches. Consider investing in access control systems like keypads, card readers, or biometric scanners.

Patrol Vehicles

Patrol vehicles are an essential security equipment for security companies that offer mobile patrol services. They allow you to cover a large area quickly and respond to security threats promptly. Make sure to invest in reliable and well-maintained vehicles that have the necessary security features like GPS tracking and two-way communication systems.

8. Marketing Your Security Company

Marketing is crucial to the success of any business, and your security company is no exception. You need to promote your services to potential clients in order to attract business. Here are some tips on how to create an effectively market strategy for your security company:

Build a Website

Creating a website is an essential step in marketing your security company. Your website should be professional, easy to navigate, and provide clear information about your services. It should also have a contact page with your phone number, email address, and physical address. This will make it easy for potential clients to contact you.

Social Media

Social media is a great way to promote your security company. You can use platforms like Facebook, Twitter, and LinkedIn to share information about your services and connect with potential clients. You can also use social media to share news and updates about your company.

Networking

Networking is another effective way to market your security company. Attend trade shows, conferences, and other events where you can meet potential clients and other professionals in the security industry. You can also join industry associations and organizations to network with other professionals.

Referrals

Referral marketing is a powerful marketing tool. Encourage your satisfied clients to refer their friends and colleagues to your company. You can also offer incentives for referrals, such as discounts on services.

Advertising

Advertising can be an effective way to promote your security company. Consider placing ads in local newspapers, magazines, and online publications. You can also use Google AdWords to target potential clients who are searching for security services online.

9. Maintaining Quality and Compliance

Maintaining quality and compliance is crucial for the success of your security company in Ontario. Here are some tips to help you ensure that your business is always in compliance with the law and delivering high-quality services to your clients:

Stay up-to-date with regulations

As a security company owner, it is your responsibility to stay up-to-date with the latest regulations and requirements set forth by the Private Security and Investigative Services Act (PSISA) and all regulations. Failure to comply can result in fines of up to $250,000.

Train your staff

All new security guards and private investigators must complete a basic training course and pass the basic ministry test before applying for a license. It is your responsibility to ensure that your staff is trained to meet the requirements set forth by the PSISA. You can learn about the different or combined basic training courses for security guards and private investigators on the Ontario government’s website.

Conduct regular audits

Regular audits can help you identify areas where your business may be falling short of compliance or quality standards. You can use audits to identify training needs, areas for improvement, and potential risks. Regular audits can help you maintain the quality of your services and ensure that your business is always in compliance with the law.

Seek feedback from clients

Seeking feedback from your clients can help you identify areas where your business is excelling and areas where it may need improvement. You can use client feedback to improve the quality of your services and ensure that your business is meeting the needs of your clients. Consider using surveys or other feedback tools to gather information from your clients.

By staying up-to-date with regulations, training your staff, conducting regular audits, and seeking feedback from your clients, you can maintain the quality of your services and ensure that your business is always in compliance with the law.

Frequently Asked Questions

To start a security company in Ontario, you need to comply with PSISA and all other regulations. You’ll need to register as an employer for private security and investigative services, and all new security guards and private investigators must complete a basic training course and pass the basic ministry test before applying for a license.

To get a security agency license in Ontario, you must complete the application process. You’ll need to provide proof of insurance, a business plan, and other relevant documents.

To get a security agency license in Ontario, you must complete the application process through Ministry of the Solicitor General’s Private Security and Investigative Services Branch. You’ll need to provide proof of insurance, a business plan, and other relevant documents.

The process for obtaining a security business license in Ontario involves completing an application through the Ministry of Community Safety and Correctional Services. You’ll need to provide personal information, proof of insurance, a business plan, and other relevant documents.

The Ministry-approved security guard training in Ontario is a basic training course that covers topics such as legal authorities, emergency response, and communication skills. The course is designed to prepare individuals for the responsibilities of a security guard or private investigator.

Starting a security company in Ontario can present some challenges, such as competition from established security companies and navigating the regulatory requirements. However, with a solid business plan and a commitment to providing quality services, you can overcome these challenges and build a successful security company in Ontario.