How to Start a Small Security Guard Business in Australia - Example

Name Instructor Date Business Plan Any individual interested or intending to start a small security guard company in Australia ought to ensure that they adequately meet all the legal requirements expected of a security guard business as per the Australian Law. Some of the legal requirements include licensing, insurance, fair trading and the health and safety policies for the business. Also in order for the business to remain operational and succeed the company will need a human resource plan and an operational plan as well. This paper looks at the detailed requirements needed to start a small security guard business in Australia; in reference to the legalities, the human resource plan, and the operational plan. Legal Requirements According to the Queensland Government law, on security any security company or firm must first obtain a security firm license and then apply to be an approved security industry association. This security company in question will have to obtain the application for a security’s firm license form, known as form 2 under the Security Providers Act 1993. If the company decides to pick the Class 1 license, then they will have to pay a flat fee of $1355 for a yearly license. They will only pay $2727 if they choose a three-year license; licenses strictly renewed at the end of their stipulated time. The company should also note that these license fees changes yearly in the month of July. Obtaining a security license for the firm is not enough, before the company can legally operate and extend its services to the public each employee will have to complete the Security Provider’s Form 1-1. This form will allow them to perform their personal functions. The license mentioned above will require that the company becomes a member of the approved security industry association (Rowe p.3). Additionally, the partners should have attained 18 years and above; and be individuals who do not pose a risk to the public safety. One can easily obtain the form online or by the Queensland Government Offices and drop the complete forms in the same office. Insurance AON exists as the leading insurance broker for most companies in the Australian security industry because it is a trusted body by the Australian Security Industry Association (ASIAL). Due to the daily horrors that face businesses today the security firm can obtain the Secure A cover, which provides the company with a competitive cover for its business and business operations. This cover includes the public liability and another extension of Errors and Omissions coverage. However, in Australia the Rural and General Insurance Brokers (RGIB) remains the leading and most trusted business insurance broker especially for small security firm businesses and agents. This insurance broker will best suit our business because they understand the cost factor behind most of the insurance decisions for small companies. Also, their insurance cover comes at the most affordable premium and in a wide covers range. RGIB also offers a cover for the security guards or employees of the company for instance they extend a public liability insurance cover plus a professional indemnity to each employee of the company. Their Error Omissions cover includes claims arising from public injury or loss, damage to property and injuries caused by patrons and crowd participants. For example, security guards in Sydney covered by RGIB pay $1199 per year for the Public Liability Insurance at $10,000,000 + $1m Professional Indemnity package. On the other hand, they pay $2038 for the Public Liability Insurance at $20,000,000 + $1m Professional Indemnity. Fair trading The Office of Fair Trading provides the adequate protection for consumers and ensures fairness and safety in the security industry. This reason is why the Queensland Government oversees the security industry regulation that requires that every security company must obtain a security (technical) license or a security firm license, at least once every three years. Based on the Australian law on fair trading the Office of Fair Trading requires that any company supplying security services to the public must have the Class 1 license; according to the Security Providers Act 1993. Violating this legal policy may lead to a company facing a minimum of $55,000 for a maximum of 500 penalty units to 1000; accumulating a total fine of $110,000 or 18 months imprisonment (Grant p. 1). Health and Safety Based on the OHS rules and regulations governing the security industry in Australia, it is mandatory that security firms obtain a H6 Company License; in order for them to obtain firearms for their employees. This license ensures that the company completes a thorough risk assessment to eliminate the risks or find options towards the same and also identify potential risks in their line of work. An assessment must always be undertaken for any assignment regardless of the client or type of activity involved. The security personnel OHS also require that the company should have adequate measures put in place to minimize health and safety risk to employees, as well as the public. For example, the security guards must undergo proper manhandling training, availability of evacuation procedures, first aid kits, appropriate job planning and adequate induction for their job specificity. Human Resource Plan This company will deploy both static and patrol guards to stay in stagnant watch, and patrol as well as inspect the clients’ property; offering protection services against vandalism, terrorism, theft and any other illegal activities. Based on the standard Australian pay scale for a security guard, this company will allocate a minimum wage of AU$20.65 per hour. This salary is subject to revision depending on the individual experience and expertise ranging up to AU$26.42. According to the Australian law on security guard salary, at least 50% of the guards get an average rate of 20.73 per hour; however experience does not have much influence on the pay. An organizational chart in a security business or company is a simple diagram showing the structural organization of the company’s departments, relative ranks and the relationship of different positions in the company. Our company organizational chart will include the following ranks; detailing how the company intends to structure it is operations: Performance Management entails activities promote the accomplishment of goals in an effective and consistent manner. In this case, our security company intends to focus on the departmental organization and employee motivation because those two areas directly impact the business operation. The company’s top management will create a work plan that equally distributed responsibilities in each department and then each department will have a supervisor to evaluate the employees’ performances. This way each employee will have a department head to answer to and can follow up on their performance progress to also grow in the company. Finally, the performance of each department will undergo an equal evaluation to measure the ratings and input if each sector in the organizational overall structure. After which, the excelling employees and department will get rewarded; compensated or promoted. This way the company will effectively manage the performance of the weaker department and maintain the strong ones as well. Operational Plan The Australian law passed the working or trading hours for security firms including the extension for them to work over holidays and weekends. Our company will be operating for 24 hours each day but with two separate shifts as stipulated in the Aus. law. The trading hours will be from 6.a.m to 6 p.m. and again from 6p.m to 6a.m. This way the law ensures safety and safe work in the security industry. Looking at the standard overview for security provision in the current market, more risks tend to happen at night than during the day. Therefore our menu pricing will assume the standard provision condition, hence the estimation of the day and night security prices. For example during the day a client may pay AUS$1500 and at night AUS $3100 for services provided. The company plans to manage its costs through distributing its expenses throughout each department and offering more variety of security services; to generate more profit. For instance, the company plans to provide mobile patrol security, specialized security such as VIP protection, home guards, and commercial guards. Since our company aims to provide the best quality in security services, our policy will focus on providing the highest integrity and character of security guards; both in sensitive positions and trusted assignments. A condition for employment in this company will involve a complete police clearance form filled and verified up to ten years and a thorough history check. The procedure for recruitment will also include checking to ascertain previous references and applicants suitability for the job. Our main policy aims to attract and retain the best possible individuals as part of our security team. The screening procedure for staff will also include physical fitness assessment, individual security license, proper training, grooming and discipline work ethics. Technology dominates the security industry and eliminating it from our business operation seems inevitable. Therefore, the company intends to borrow the commercial systems technology, home monitoring technology and alarm, response technology to foster the quality of service offered to the public. For instance, the mobile patrol can have the alarm response units installed in their cars so that they can easily and effectively respond to clients’ alarms when the need arises. In relation to food safety, our company intends to pick the grab and go food and beverage program which will offer the guards a fast and better solution when working. Otherwise, in situations where the guard remains stationary at their workplace, the company will cater for delivery services; so that the business operation remains uninterrupted. Works Cited "Legal Requirements for the Security Industry." Legal Requirements for the Security Industry. The State of Queensland; Queensland Government. Web. 6 May 2015. https://www.qld.gov.au/law/laws-regulated-industries-and-accountability/queensland- laws-and-regulations/regulated-industries-and-licensing/regulated-industries-licensing- and-legislation/security-industry-regulation/legal-requirements-for-the-security-industry/ Occupational Health, Safety & Welfare Guidelines for the Security Industry in South Australia, including Guards and Patrols, Cash in Transit and Electronic Security System Installations. Adelaide: Workplace Services, Dept. for Administrative and Information Services [and] WorkCover, 2001. Print. Rasmussen, Grant. "Compliance Investigations." Queensland Government. 8 Feb. 2013. Web. 6 May 2015. http://www.nsaaqld.com.au/downloads/OFT%20reply%20- %20NSAA%20incoming%2024.1.13.pdf Rowe, Peter. Security Industry Law: Law and Practice in the Australasian Security and Crowd Control Industry. Lavington, N.S.W.: P. Rowe, 1993. Print. "Security Guards Insurance Australia :: RGIB Security Guard and Mercantile Agent Insurance." Rural and General RGIB. Rural & General Insurance Broking Pty Ltd., 2012. Web. 6 May 2015. http://www.ruralandgeneral.com.au/security-guards-mercantile-agents- insurance.php. "Security Personnel OHS - Static Guarding & Patrol Work." Security Personnel OHS - Static Guarding & Patrol Work. WorkSafe Victoria, 5 June 2005. Web. 6 May 2015. http://www.worksafe.vic.gov.au/forms-and-publications/forms-and-publications/security- personnel-ohs-static-guarding-and-patrol-work "Security Companies." SAPOL -. South Australia Police, 2014. Web. 6 May 2015. https://www.police.sa.gov.au/services-and-events/firearms-and-weapons/security- companies Workers' Compensation in Australia. Canberra, A.C.T.: AGPS, 1994. Print. Read More