Starting a security company today in the UK is a vastly different undertaking than it was 10, 20, or even 30 years ago. The fundamentals of protecting people, property, and reputation remain the same, but the environment we operate in has evolved — and continues to evolve — at an unprecedented pace.
As someone who has dedicated three decades to the guarding sector, I’ve seen both the best and worst of this industry. Security company start-ups bring fresh energy and innovation, but they also face an uphill battle. From navigating SIA regulations to winning contracts and retaining staff, the barriers to success are significant.
Below, I examine what I believe are the biggest challenges faced by new entrants in today’s UK security industry — and offer some insights on how to navigate them.
Breaking Through a Crowded Market
The UK security industry is saturated. With over 4,000 SIA-approved contractors and countless unapproved operators, standing out is difficult. Many start-ups enter the industry under the impression that reliability and professionalism alone will win them business. Unfortunately, that’s just the baseline. Clients expect more, and they often default to larger, well-established players unless you can offer clear, compelling value.
Security company start-ups must answer a difficult question: What makes us different?
Whether it’s niche market knowledge, use of cutting-edge technology, or superior customer service, start-ups must identify and communicate their USP clearly and relentlessly.
Navigating Regulations and Compliance
SIA licensing, ACS accreditation, GDPR, employment law, health and safety standards — the compliance landscape is complex and constantly shifting. Getting it wrong isn’t just expensive; it can destroy a fledgling business’s reputation before it’s even off the ground.
Too many security company start-ups underestimate the time and cost involved in staying compliant. Some cut corners, only to be caught out later. Others simply lack the experience to implement the correct processes from day one. I always advise new business owners to either invest in experienced SIA compliance personnel or outsource this function to trusted consultants until they can bring it in-house.
Security Recruitment and Retention in a Tight Labour Market
Good security officers are hard to find and even harder to keep. This isn’t a new challenge, but it’s intensified in recent years. Post-pandemic shifts in employment patterns, rising expectations around work/life balance, and cost-of-living pressures mean security workers are more selective than ever.
High staff turnover is common, especially in the event and mobile sectors. If you are not already using the GuardPass system to recruit security officers, I highly recommend you check it out!
For start-ups, this creates a Catch-22. Without a solid pipeline of work, it’s hard to promise regular hours. Without regular hours, it’s hard to attract and retain good officers. Gold start-ups tackle this by building strong candidate relationships early and offering perks beyond pay, such as flexible shifts, transparent communication, and prompt payroll.
Recommended Read: 5 Tips to Attract Security Talent
Winning Contracts Without a Track Record
Procurement departments are risk-averse. Most prefer to stick with suppliers they know, or those with proven experience. This makes it extremely difficult for new firms to secure meaningful contracts, especially in regulated environments like government buildings, transport hubs, or critical infrastructure.
Security company start-ups must be realistic: major public-sector tenders are unlikely in year one. Instead, success often begins with small, local contracts. Proving reliability and quality on a small scale creates the references and case studies needed to pursue larger opportunities. Partnerships and subcontracting can also provide a valuable stepping stone.
Cash Flow and Financial Discipline
Security is a labour-heavy business with tight margins. Most contracts are invoiced monthly, often with 30, 60 or even 90-day payment terms. Meanwhile, staff expect to be paid weekly. This creates a cash flow pinch that has sunk many start-ups.
Financial planning is not optional. Even a profitable business can collapse if it runs out of cash. Accurate forecasting, prudent budgeting, and a robust credit control process are essential from day one. I also recommend that start-ups maintain a contingency fund or access to flexible finance, particularly if pursuing rapid growth.
Insurance and Legal Exposure
Insurance is another area where corners must not be cut. Public liability, employer’s liability, vehicle cover (if doing mobile patrols), and professional indemnity policies are the bare minimum. The right cover protects not just the company’s finances but also its reputation. Many clients won’t even consider a provider without robust, documented insurance arrangements.
Equally important is understanding legal exposure. A poorly worded contract, a lack of documented training, or an unclear assignment instruction can all lead to disputes, injury claims, or regulatory breaches. Experienced legal support may seem like a luxury for a security start-up, but it can save thousands in the long run.
Technology Expectations
Today’s clients expect more than boots on the ground. They want real-time reporting, GPS tracking, and evidence of performance. Large security firms have invested heavily in technology platforms to meet these expectations. Start-ups must find ways to compete, even if on a smaller scale.
The good news is that cloud-based solutions have made guard tour systems, incident reporting apps, and scheduling software more affordable than ever. But tech alone won’t impress; how it’s used, integrated, and explained to the client is what counts.
Cybersecurity and Data Protection
It’s no longer just about physical security. Every security company now handles personal data, staff details, client information, and CCTV footage. This makes them a target for cybercriminals and subject to stringent data protection rules under GDPR.
Start-ups can’t afford to be complacent. Even a small breach can trigger fines and reputation damage. Basic cybersecurity hygiene, secure systems, regular updates, staff training, and professional hosting must be part of the business DNA from day one.
Maintaining Quality Under Pressure
The moment a security company start-up wins a few contracts, it enters a new danger zone: overextension. Taking on too much, too quickly, often leads to service failure. Missed patrols, untrained officers, communication breakdowns, these can undo hard-won client trust in an instant.
It’s essential to scale sustainably. Deliver excellence on what you already have before chasing the next contract. Quality, not quantity, is what will build long-term success and referrals.
How GuardPass Helps Security Company Start-Ups
The challenges for start-ups in the security sector are real — from compliance to cash flow, staffing to scalability. But the good news is, you don’t have to navigate these alone. Platforms like GuardPass are purpose-built to ease the burdens security companies face every day.
GuardPass gives new and growing firms access to pre-vetted and licensed professionals, compliance tools, and the technology to manage hiring fast, all in one place. If you’re serious about growing sustainably, it’s time to stop firefighting and start building.
Read our blog on how GuardPass is streamlining security hiring to learn more.
Final Thoughts
Running a successful security company in today’s climate is not impossible, but it is hugely demanding. Passion, purpose, and professionalism are essential, but not enough on their own. Start-ups must be strategic, compliant, financially disciplined, and above all, client-focused.
After 30 years in the UK security industry, I still believe in its value and its future. New blood is vital. But it must be prepared. The best advice I can give any aspiring security entrepreneur is this: do your homework, seek advice from those who’ve walked the path before you, and never lose sight of the responsibility we carry.
Because in the end, our business is not just about contracts and uniforms. It’s about trust. Explore GuardPass and discover how we help security companies hire better, faster, and smarter.