There are many benefits why cybersecurity services are in high demand.
Recognizing such demands, you can take advantage of starting or franchising your own cybersecurity company. This article shows you the basics of creating such a business.
You only need to read along for vital tips.
Starting a Cybersecurity Company
Due to growing cyber crimes, the need for critical cyber security infrastructure is highly vital as it serves a wide range of functions.
Some of these include the prevention of financial fraud and embezzlement, the prevention of cyber espionage, as well as data protection from unauthorized access, deletion, or loss.
Like any business venture, you need to know what you’re going into.
A cybersecurity company would usually require an investment range of around $7,050 to $19,100. The investment amount depends on your company’s scale and location, amongst other things.
It’s a growing industry that requires flexible commitment. In terms of revenue potential, starting a cybersecurity company can fetch you anywhere from $120,000 to $900,000 per annum.
It takes 0 to 12 months to establish and has a profit potential of around $96,000 to $270,000 per annum.
How to Start a Cybersecurity Business
Establishing a cybersecurity company requires deciding on what approach to take.
Speaking of approach, there are two main options: investing in a cybersecurity franchise or starting one from scratch.
Each of these has unique benefits that may be suitable for specific needs.
i. Investing in a Cybersecurity Franchise
There are tons of cybersecurity companies that offer opportunities to investors to own part of their business. This is provided in the form of a franchise.
In other words, you get to own a part of the business, which is typically successful. The benefit here is that you become part of a successful cybersecurity brand.
Some great examples include Cybereason, Palo Alto Networks, Forcepoint, Check Point, Trend Micro, and Fortinet.
Others include Proofpoint, McAfee, CyberArk, AlgoSec, Sophos, Code42, Netskope, Webroot, Lookout, Cimcor, Inc., Lookout, Orca Security, RiskIQ, etc.
Qualifying as a franchisee will require looking up the requirements for such. These mainly include financials as well as an appreciable level of experience in the field of cybersecurity or other related areas.
You benefit from using the company’s successful business model to run your operations.
ii. Starting a Cybersecurity Company from Scratch
Starting a cybersecurity company from scratch requires much more commitment than buying a franchise.
Here, you’ll need to carefully establish all the necessary structures to support the business and guarantee its smooth takeoff and operation.
Of course, relevant education, training, and experience will be necessary. The same applies to sourcing sufficient startup capital.
All of these actions will have to be carefully coordinated with the help of a business plan.
The Business Plan
The plan sets the stage for the careful and strategic implementation of all actions leading to the successful takeoff of your cybersecurity business.
An excellent cybersecurity business plan can be created for your business with the help of a business consultant or other business professionals.
Due to the importance of the plan, key sections must be added and followed. These usually include the executive summary, company description, and market analysis.
Others include competitive analysis, a description of management & organization, and a breakdown of services & products.
More sections to include in your business plan include the sales strategy, marketing plan, request for funding, and financial projections.
Each area covers an essential aspect of your operations and shouldn’t be rushed.
The Funding Aspect of a Cybersecurity Company
Sufficient funding is another critical requirement for a cybersecurity company’s successful launch and operation.
While there are many funding sources to consider, you need to know how to get or secure these. Luckily there are multiple ways to go about securing such funding.
With good digital PR strategies, you can build credibility; demonstrate your cybersecurity service’s unique value while fostering thought leadership.
These improve your chances of securing the needed funding for your cybersecurity company.
Funding sources include incubator & accelerator programs, startup competitions, venture capital, and bootstrapping.
You might find specific funding sources more suitable to your needs than others. The ease of access is one factor you need to look out for.
Having the Right Professional Certifications
As mentioned earlier, a cybersecurity startup will require the proper training and experience to succeed. Here, the right professional certifications come into play.
All IT-related businesses need this.
Some of the most popular certifications you may need to include the Global Information Assurance Certification (GIAC) and the Certified Ethical Hacker Certification.
Others include the Certified Cloud Security Professional (CCSP) and Certified Information Systems Security Professional (CISSP).
Certified Information Security Manager (CISM), CompTIA Cybersecurity Analyst (CompTIA CySA+), and Certified in the Governance of Enterprise IT (CGEIT) are some other certifications you may need to get.
Asking the Right Questions
Still, on how to start a cybersecurity company, there are vital questions you need to ask. The answers to these will determine the direction or step you take.
How can you gain a fair share of the market? Who are your current competitors? How will competitors react to your entry or launch?
Is your cybersecurity business any different from those of your competitors? Does it offer value? What are your competitor’s strengths and weaknesses?
A SWOT test is a great way to identify your weaknesses and strengths and take advantage of the findings.
Choose a Suitable Legal Structure
Another step you need to take in setting up your cybersecurity company is to pick your preferred legal structure.
There are different types of legal structures that offer certain advantages. You’ll need to have a detailed understanding of each to choose the right one.
The most common are sole proprietorship, partnership, limited liability company (LLC), S corporation, and C corporation.
Each of these serves a purpose. You might want to seek legal help in identifying the most suitable legal structure for your cybersecurity company.
These are the basics of how to start a cybersecurity company. Successful business takeoff will also require obtaining a business license, opening a business bank account, and getting a company credit card.
What more? Getting the right location and marketing your services is vital.