The common price of a data breach has climbed to an all-time excessive of $4.35 million. They also cause downtime and a loss of trust.
As IT security risks increase, so will the need for IT security companies. If you’ve ever wanted to start one, strike while the cyber landscape is hot.
Read on for five tips for starting an IT security business.
Make a Business Plan
A clear business plan helps you determine what your business is and what goals for it. Many banks and investors require one.
Outline the IT security services you offer. Will you perform modern penetration testing iso 27001 or simple tech support? Do you want to specialize in mobile security or work on a range of devices?
Determine the right business structure for you. This choice affects how much money and paperwork you’ll need to get started. It also affects your personal and tax liability.
Your business plan should also include your:
Company summary
DBA or doing business as name
Competitive market analysis
Funding sources
Budget
Financial projections
Marketing strategy
Target audience
Hiring strategy
Research Your Customers and Competitors
Find out the demand for the IT services your business offers. Choose a location where it’s needed.
Do a competitive analysis to see who your local competitors are and how you can distinguish yourself from them. You could establish your company as experts in a certain area or industry. You could also provide extra services that they don’t.
When you know your competitors, start getting to know your audience. Develop a profile for the type of customers you want to pursue. Where are they, and why do they need your products or services?
Hire a Team
IT security may seem like a solitary job, but managing an IT security business means working with a qualified team. It’s a necessary but dangerous step, as 52% of executives consider employees their greatest cybersecurity threat.
Give every applicant a thorough background check. Get worker’s comp insurance and fidelity bonds to protect against theft, fraud, and illegal data access.
Consider the Costs
Estimate your monthly, quarterly, and annual revenue. Calculate a profit margin after subtracting all potential costs, including:
Loans
Rent
Software
Website or application hosting
Funding options include loans, grants, and angel investors. Venture capital funding for IT security companies is worth over $21.8 billion.
Create a business bank account you keep separate from your personal expenses. This makes bookkeeping and taxes less complicated. You may also want to apply for a business credit card. It comes with higher limits and better terms and perks.
Start Marketing and Networking
Once you begin running a cybersecurity business, you need to get the word out about it with marketing.
Create a well-designed website that shows your command of the digital world. Work to boost your SEO rankings so that it’s always the first business customers see when they search for the services you provide. Get on social media as well.
Doing work to know your customers means you can create targeted ads. Personalize them to their likes and location.
Network with colleagues that also own an IT cybersecurity business. You can also start new relationships on sites such as LinkedIn.
Launch Your IT Security Business
IT security is essential in the modern age and a viable field to create a business. Start with a clear plan and consider the costs. Research your competitors and customers. Hire a team to help you, and don’t forget marketing and networking. Read the rest of our content for more tips on growing a business.
