Security Franchise UK – the TOP 10 MUST KNOWS about finding and running successful UK Security Franchises.
In a nearly future-proof market such as security, smart businesses thrive. But, is buying a safety and security franchise UK a good idea?
Whenever we talk about what franchising is and how it really works, our focus is always on the industry and the sector on the whole. The point of this is to understand what exactly those franchise opportunities bring to the table. As far as we at franchise4u are concerned, the best franchise opportunity is the one that is easy on the capital, turns profitable quickly and offers a decent return on resale. These, as you may know, are the basic expectation of nearly every franchisee who’s looking to invest.
From this point of view, safety and security franchises UK are among the best candidates for seasoned as well as rookie franchisees.
A typical security franchise UK has the benefit of operating in a stable industry which, more or less, is immune to market movements. On the other hand, all security franchises UK are in a constant battle against technological innovations that threaten to disrupt the industry.
Considering all these factors, UK security franchises pose a curious case for franchisees. In this post, we’ll discuss what security franchises are, what they do, how much they cost, how they earn their revenue and what downsides exist to your investments.
Before You Buy A Security Franchise UK – Know Your Numbers!
It’s customary for all franchise4u blogs to start with a quick look at relevant numbers. We will slightly modify this custom while discussing UK security franchises, because there isn’t much data publicly available, and the industry lies heavily fragmented – despite having many multi-billion pound brand names headlining the act.
- The UK security industry is thought to generate annual revenues in excess of £5-5.5 bn.
- Of this nearly £1.5 bn can be directly attributed to the ‘service’ sector of the industry (we will discuss this point in the latter half of this article).
- The overall employment generated by the security industry in the UK lies in the 10,000 to 15,000 Many of these jobs are estimated to be full-time.
- The Security Industry Authority is the designated overseeing authority/regulator for security businesses in the UK.
- As of 2018, over 350,000 SIA licences have been distributed to various security businesses.
- The annual growth rate registered by the industry stands at over 10% – a huge feat, considering the fact that the overall growth rate of the UK economy is under 2%. (2014-2018).
- The UK security industry is heavily dependent on manual labour. While this creates employment at a mass-scale, it also lends a touch of vulnerability to innovations.
Looking at these numbers, it should be clear that buying a security franchise UK means you get to operate in an industry that has an equal share of upsides and downsides. That said, let’s move on to discussing the nitty-gritty details.
UK Security Franchises – Dealing With The Unsavoury Bits Of Life
It’s not often that we, at franchise4u, are required to dig into crime statistics. Analysing the potential of UK security franchises, however, did force our hand – and we weren’t quite thrilled at the outcome.
The overall crime rates in the UK have been more or less predictable over the years, with new ‘types’ of crimes ending up as talking points.
As far as a security franchise UK is concerned, there are two major types of crimes that we need to focus on – theft and robbery.
Theft crimes are usually associated with greater financial losses, while robberies are associated with a combination of financial losses and intimidation, injuries (or worse) to personnel.
The need for having a security franchise UK safeguard domestic/commercial premises comes solely from the fact that businesses understand the gravity of the matter. In 2018, the overall theft rate in England and Wales was estimated to have shot up by about 8%, with a coinciding 2% rise in burglary events.
At the same time, a whopping 22% increase was recorded in the number of robberies.
(We have referred to this report from the Office for National Statistics to record these observations)
Considering these unfortunate trends, it’s safe to say that onboarding homeowners and businesses shouldn’t be too difficult for security franchises UK. Therein also lies the biggest promise for franchisees – the demand forces are stronger than ever, virtually guaranteeing a decent return on investment for well-run private security businesses.
What Do UK Security Franchises Really Do?
Private security is no longer something only the well-to-do have to worry about. A large share of UK households now boast of at least the basic level of security systems, while nearly every business location has to invest in setting up sophisticated security systems. In most cases, private security measures have become mandatory tasks for businesses in order to be able to insure their premises.
So, what does a safety and security franchise really do?
Their job is two-fold:
- To provide adequate ‘manned’ security – This applies to businesses. Uniformed guards, bouncers, doormen are typical examples.
- To provide technical and technological solutions – These have both domestic and business applications. Common examples include CCTV networks, automated sensors, state-of-the-art locks.
How Much Does A Security Franchise UK Cost?
At the very beginning of this article, we mentioned that UK security franchises are among the handful of franchise businesses that bring on board maximum value for reasonable investment for franchisees.
This statement begs the question – how much does a security franchise UK really cost?
“Our analysis of over two dozen UK security franchises shows that the average minimum investment falls in the £25,000 to £80,000 range.”
This is not to say that you need to invest in this range to buy and run a security franchise. You can easily find security franchise opportunities of lower potential at much smaller price tags. Please follow us through to the end of this article where we shortlist some of the most popular safety and security franchises UK.
Types of Safety And Security Franchises UK
As is the case with most franchise businesses, the security industry is divided into two major parts: security as a service and security as a product.
Security As A Service
Providing security solutions as an ongoing service – especially to businesses – is the biggest ‘rainmaker’ for private security businesses. All top 5 security companies in the UK primarily target this market by offering customised security services to office complexes, warehouses, factories and other business locations.
Since these operations eventually hinge on the availability of manpower, security companies can afford to optimise their cashflow by balancing the demand with the supply. Moreover, the manpower component also makes sure that there’s always enough room for businesses to draw profits from.
In the franchising context, this boils down to you – as a franchisee – hiring staff that represents your unit. Your role in the business will ultimately be limited to networking, administration, finance and management. If these are among your strong suits, you should definitely consider such franchise opportunities.
Security As A Product
Security as a product businesses target domestic as well as commercial markets. The size of the business and the investment required will depend solely upon the composition of these two markets.
The operations include drawing up customised security and surveillance plans for households and businesses in accordance with the applicable codes and laws. Most security businesses also act as ‘retainers’ for their customers, providing ongoing maintenance, repair and upgradation services.
Again, you don’t really need to possess any previous industry experience to run such franchise units successfully. Do keep an eye on the level of training provided by the franchisor to your staff (and you) – poor installation and maintenance are often responsible for security businesses losing their customers.
Going Out Of The Box – Digital Security Is The New Normal
The entire point for a homeowner or a business to invest in security is to look after their financial interests and safety.
So, it’s fair to take a look at how ‘security’ has been evolving from the real world to the digital world – because ‘bad actors’ have definitely made this move long ago.
The UK businesses have been at the receiving end of financial cybercrimes a lot more than one would think. Nearly half of them fell prey to data breaches and other digital thefts in 2018, with an average hitjob costing in excess of £3,100.
Therefore, as a franchisee interested in exploring the security market, it’s essential not to ignore the cybersecurity market – especially if you already have experience in the field. More about such businesses has been discussed in our Computer And IT Franchises guide.
Top UK Security Franchises
To better understand the features of security franchises UK, we have shortlisted and reviewed some of the most popular options:
- Minimum Initial Investment: £4,900 (plus VAT)
- USP: State of the art locksmith services
- Operate in the domestic as well as commercial sector
- Proven business model
- Full training provided
- Home-based opportunity – ideal if you want to carry out on-site jobs yourself
- Tools and equipment
- Branded uniform
- Minimum Initial Investment: £39,500 (plus VAT)
- USP: Bespoke fire and security services
- In business for over 25 years
- Franchise finance may be available
- Ideal for individuals with strong management and admin background
- Full training provided
- Associate BFA Member
- Minimum Initial Investment: £25,000 (plus VAT)
- USP: Full range of home security services
- Operational for over 12 years
- 1-week initial training
- Ongoing business and operations assistance
- Finance support may be available
- Minimum Initial Investment: £20,000 (plus VAT)
- USP: Customised fencing solutions
- Unique and proven business model
- In business for over 25 years
- Full training on offer
- Full BFA Member
- Minimum Initial Investment: £9,000 (plus VAT)
- USP: Professional locksmith services
- Comprehensive training programme for franchisees
- Efficient marketing system
- Tried and tested launch programme
UK Security Franchises – The Takeaways
- Before buying a security franchise UK, make sure you’re familiar with the pros and cons of franchising.
- If you plan on running a home-based franchise business in the security industry, make sure you’re aware of the demands of the business.
- Hire your staff responsibly.
- Have your business insured against liability.
- There’s no alternative to in-depth market research.
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