How to Start a Security Agency Business in the Philippines
Ever since terrorism has had the whole world shook with acts of terrorism being well known in every country, there has been an increased usage of armed forces to fortify properties in business in case such acts ever take place again.
With a third world country like the Philippines, it is no surprise that when you start a security agency business, people flock just to be provided protection. Indeed, It is a profitable business for many who undertake the security agency business.
All over the country you can see hired private security guards almost everywhere you go, from private business establishments to government buildings. From educational institutions to private subdivisions, they can be visible, wearing the appropriate dress codes, adorning the usual blue and white uniform. Some even take it upon themselves to be discrete and wear civilian clothes to match the urban setting of a normal household.
The Philippine National Police records approximately 500,000 private guards that outnumber those of the Armed Forces or even the PNP itself by 5 to 1. This suggests the importance of security for most people living in the Philippines, where crime is rampant.
If you are an aspiring entrepreneur with a passion to establish a profitable venture, then look no further! Keep on reading to know what you need to start a security agency business in the Philippines!
Get the proper registration for your security agency business
As with all the businesses that is established in the Philippines, you are legally required to get properly registered with the Department of Trade and Industry (DTI) if you are a sole proprietorship or head to the Securities and Exchange Commission (SEC) if you are a partnership or corporation.
Aside from business registration, you will need to acquire several permits to legally operate:
Bureau of Internal Revenue (BIR) – BIR Certificate can be acquired at the Head Office at Quezon City, or at the nearest BIR Office where the business is located.
Mayor’s Permit – You can get this at the local municipal hall where your business is located.
Philippine National Police (PNP) – A very important permit must be acquired from the PNP.
Have the right amount of capital
A private security agency is not like other businesses as you handle personnel and are liable for any damages that may incur. This means that you have to be prepared to invest in a lot of money to operate just the business itself.
According to the Securities and Exchange Commission, a minimum amount of P500,000 is required in order to be fully registered. The keyword here is minimum, as this depends entirely on how big you plan on running your operations, not to mention buying all the firearms (and the license to handle one no less), and a three-month working capital to at least mitigate the likelihood of a crash and burn.
Screen a careful selection of recruits
A security agency business is responsible for giving clients a very safe and reassuring security guard. After all, you would not want a dissatisfied customer or even a fatality to happen under your liability. Which is why it is important to take note of the previous records of any recruit, as they can provide information that may not fit the criteria.
This may sound like common sense, but you should never be able to recruit those who are not capable of handling a firearm, one whose mental health is unstable, or has had a history of violent tendencies. This are people who are going to protect a client, your customers, after all.
Provide alternative services
A security agency is also capable of providing other types of related services such as hiring a private investigator (P.I.), house detective, and a consultant for security. This gives you an opportunity to have other sources of income besides the main one as a security provider.
As with security guards, one must also maintain the same standard procedure when screening out potential candidates for recruitment.
Never stop learning!
An expense incurred for training recruits is an investment in of itself. Not only that, it gives you a competitive edge against other security agencies if you are able to beat them at performance. One aspect of the business you can try your hands on is adding a customer service to handle feedback from you clients.
There is always an opportunity to learn, and that is something that you should never take for granted.
Obey the rules
Unfortunately, most agencies don’t follow protocol when handling employees, especially in the security business. One of the requirements given by the Department of Labor and Employment (DOLE) is the automatic adaptation to any increased wage orders by the DOLE, such as an increased wage salary.
Keeping an eye out for these kinds of rules will make sure that your business is in good hands and raise company morale!