Starting a PPO in NM or AK

[Sparky]

First, let me state that I am sorry if this has been asked before. I have tried top search, but I didn't see anything helpful.

So, after speaking to a few good friends of mine, the idea was once again passed about that we could potentially start our own PPO (private security company). Well, being nerdy guys, this came along after talking about security equipment and the like.

Anyway, we get to it, and it was suggested that we go to another state to start out because CA seems to be full of companies, and another state might have less, so more opportunities. After grilling him about where, he has AK and NM in mind, with AZ and CO as follow ups to those. So, I've tried Google, as I wanted to show them what would be needed to start said company. I can't find it, so I'm hoping ya'all can help me out here.

Thanks for the help in advance.

[N. A. Corbier]

First, let me state that I am sorry if this has been asked before. I have tried top search, but I didn't see anything helpful.

So, after speaking to a few good friends of mine, the idea was once again passed about that we could potentially start our own PPO (private security company). Well, being nerdy guys, this came along after talking about security equipment and the like.

Anyway, we get to it, and it was suggested that we go to another state to start out because CA seems to be full of companies, and another state might have less, so more opportunities. After grilling him about where, he has AK and NM in mind, with AZ and CO as follow ups to those. So, I've tried Google, as I wanted to show them what would be needed to start said company. I can't find it, so I'm hoping ya'all can help me out here.

Thanks for the help in advance.

Off the top of my head, CO has no licensing at the state level. Cities do, and CO Springs mandates you will carry a 38 revolver with no additional ammo, and no spray. (I put an article about it on this forum)

BTW: All 50 states are FULL of security companies. Its nothing new. You won't even compete with different people, you'll still compete with the same multi-national companies in those states too. Find a way to be better, fill a niche, etc.

[Sparky]

WEll, to be more specific, he said CA is "over-flowing with so many companies, there is no way to get a slice of the pie."

Thanks, I'll bear that in mind and pass it on.

I also told them that we'd be seeing teh same companies state to state. There not budging on that fact.

[SecTrainer]

It's not clear to me whether you're talking about a security guard company or a security systems company (alarms, CCTV, etc.), or preferably one that does both. If the latter (both), I'd start with systems sales and add guard services later rather than the other way around. There are several reasons for making this recommendation.

Either way, as I always do, I recommend obtaining a professional market analysis (MA) as the only rational basis for identifying and ranking the opportunities realistically. Since MA's can be expensive, I can suggest some "proxies" for MA's that you can use instead with a fair degree of confidence, and which are cheap-to-free.

Shoot me a PM if you'd like to kick this around.

[FireRanger]

I can't say much about any state but Colorado, competition here is tight. Out of the big three, only my company has 3 branch offices, Wakenhut and Allied run only one officer and US Security Associates run one or two depending on whom you ask. Denver, Greeley and Colorado Springs require security companies to be licensed, though my state doesn't use the term PPO. Some counties like Weld, require only armed guards to be licensed, if you are going to come here, you need to be different. You need to stand out, heck my company had a 4th branch because we thought we could exploit a new market here, but it failed horribly and got shutdown with its existing accounts split up between two branches. I am not trying to discourage you but if you don't know the market here, it will eat you up and spit you out. In some ways the lack of regulation throughout most of the state makes it harder for a small company to play the game. A big company like Wakenhut can cut prices for a low wage area and then go charge higher prices at their national account hi-tech clients. This allows them to make a profit and still be competitive, a small local provider doesn't have that kind of buying power to go after national accounts. Heck I can tell you my client will only consider companies who can service all 50 states and leans towards those who can also do international services. Anyways, I do wish you the best of luck.

[N. A. Corbier]

You need to stand out, heck my company had a 4th branch because we thought we could exploit a new market here, but it failed horribly and got shutdown with its existing accounts split up between two branches. I am not trying to discourage you but if you don't know the market here, it will eat you up and spit you out.

You need a niche no matter where you are. If your company is not too afraid of liability, I always recommend providing actual protective services rather than passive observation services. If clients want a guard to stand there in a uniform and write notes on stuff, they'll hire Securitas or Allied Barton. They provide this service effectively and cheaply. If they want more, such as actual protective services, rules enforcement, criminal suppression, or other services where there is a risk of liability to the company, they'll pay more because you're cheaper than the cops and their bottom line is hurting.

The problem with offering these types of services is:

1. It costs more to recruit and hire employees. You are letting them use actual authority, such as citizen's arrest statutes, or writing stuff that can get people evicted. They have to demonstrate that they can handle this actual authority and not go crazy with it, generating liability for you.

2. It costs more to train them. Especially in a state with no training standard. They need to understand how to use citizen's arrest powers so that the arrests will hold up in court. They need to understand how to interface with communities and people effectively. They need to understand state law. And they need to understand when a client's interests are served by an arrest (like getting drug dealers on property into the system so that they can be put away removing their influence from the community) or by civil matters (like getting a drug dealing resident or a resident who entertains drug dealers evicted through the management company so that the unit can be turned over to a person who pays rent, and the people next to that unit aren't gonna leave in the middle of the night after being too afraid for too long.)

3. It costs more to ensure that they actually have practical training if they are going to make arrests or negatively interact with people. I usually talk about residential. If you're going to be writing paper on people with the intent of eviction, you will become a target. In the years I worked residential, all of my interpersonal contacts which resulted in violence were payback for people being evicted or sent to jail. You are a snitch for the man, and our popular rap music culture reminds us that "snitches get stitches" or whatever it is. Some people won't think twice of beating down a security guard. They may not shoot at you, but they'll fist fight you, stab you, or try to kick your skull in with a pair of boots. Ensure your employees are ready for it.

4. Ensure your employees do more than private law enforcement. I would recommend that if you have a patrol division, invest in AEDs for the patrol officers. This fosters good community relations (The guards aren't there to just harass us, they also save our lives), get first responder for law enforcement training or professional rescuer training for all guards, and ensure that your liability coverage includes medical services. You will basically be the first on scene on static posts, or even mobile patrol posts. Do some good while you're waiting for EMS to show up.

I've waited over 5 minutes for EMS response. In that time, I've done patient assessment, developed a patient history from people with the victim, maintained ABCs, and performed BLS.

I've done CPR (with a mask and BLS bag) on stroke victims. I've maintained airway on idiot raver kids doing the grand mals on X. These are positive citizen contacts, and people remember them.

5. Know that it will cost more to run operations like this. You can do this in CA, AK, NM, CO, SC, IL, wherever. You are a small company doing things that the big companies want lots of money for, and will try to convince clients asking about them that they should hire an unarmed warm body guard to call the government to perform these services for free. Except that if you call the government too much, they'll declare your ass a public nuisance and start billing.

[N. A. Corbier]

It's not clear to me whether you're talking about a security guard company or a security systems company (alarms, CCTV, etc.), or preferably one that does both. If the latter (both), I'd start with systems sales and add guard services later rather than the other way around. There are several reasons for making this recommendation.

Either way, as I always do, I recommend obtaining a professional market analysis (MA) as the only rational basis for identifying and ranking the opportunities realistically. Since MA's can be expensive, I can suggest some "proxies" for MA's that you can use instead with a fair degree of confidence, and which are cheap-to-free.

Shoot me a PM if you'd like to kick this around.

While its not a security company, I wouldn't mind getting a hold of some more resources for market analysis. My company has just entered into another market, and I want to expand into a third.

[SecTrainer]

While its not a security company, I wouldn't mind getting a hold of some more resources for market analysis. My company has just entered into another market, and I want to expand into a third.

Sent you a PM, Nate.