Cybercrime is on the rise as the world becomes more digital. Businesses are also feeling the pinch financially. Data breaches can cost an average of $3.92 million, according to a report from IBM in 2019.
Cybersecurity services are in high demand because of the increased financial stakes involved. Large organizations can afford to hire cybersecurity experts. However, full-time cybersecurity employees are usually out of reach for small and medium-sized businesses.
This is where your cybersecurity knowledge can lead to a lucrative security solutions business.
These smaller companies can benefit from your assistance in guarding against online dangers such as data loss, hacking, malware, phishing scams, etc.
To protect systems and networks from cybercrime, businesses are shelling out $150 per hour or more, PayScale data shows.
It’s a great time to get into the cybersecurity business if you’ve been thinking about it. To ensure that your business succeeds, you must first follow these steps.
- Prepare for the future of your company’s cybersecurity.
- Form a Legal Entity for Your Cybersecurity Company.
- Obtain a Tax ID Number for your Cybersecurity Company.
- You need to secure the necessary permits and licenses for your cyber security business.
- Obtain Insurance for Your Cybersecurity Business
- Define the brand of your cybersecurity firm
- Set up a website for your cyber security company
Prepare for the future of your company’s cybersecurity.
An entrepreneur’s success depends on having a well-thought-out strategy in place. Your business’s specifics will be mapped out, and some unknowns discovered. Here are a few things to keep in mind:
- What are the costs of starting and maintaining the business?
- Who are you trying to reach?
- How much money can you make from your clients?
- What are your plans for the name of your company?
The good news is that we’ve already done a lot of the legwork for you.
How much does it cost to start a cybersecurity firm?
You’ve already made the first investment in your business, even if you’re not aware of your education. As previously stated, certifications are more important to potential clients than formal education. Even if you spend $1,000 on a single certificate, you’ll see a significant return on your investment over time.
Form a Legal Entity for Your Cybersecurity Company
Limited liability companies (LLCs), sole proprietorships, and corporations are the most common business entity structures.
If your Cybersecurity Company is sued, establishing a legal business entity like an LLC or corporation protects you from being held personally responsible.
Alternatively, you can hire one of the Best LLC Services for a small additional fee to form an LLC and pay only the minimal state LLC costs.
Obtain a Tax ID Number for your Cybersecurity Company
Before you can open for business, you will need to register for various state and federal taxes.
You’ll need an EIN if you want to file your taxes. It’s a breeze and completely free!
Taxes on Small Business
You may be able to defer some or all of your company’s taxes, depending on the structure you select. Some LLCs, for example, may benefit from tax treatment as an S corporation (S corp).
Small business tax information can be found in these guides:
- Limited Liability Company Taxes
- LLC vs. Single-Proprietorship
- Incorporation vs. LLC
- Limited liability company vs. S corporation
- Starting an S Corporation
- S Corp vs. C Corp
You may be subject to state taxes depending on the nature of your business. Our state sales tax guides offer more information on state sales taxes and franchise fees.
You need to secure the necessary permits and licenses for your cyber security business.
Your business could be shut down if you don’t have the required permits and licenses.
Obtain Insurance for Your Cybersecurity Business
If you want to run your business legally and safely, you’ll need insurance. In a covered loss, business insurance safeguards your company’s financial stability.
Insurance policies are available in various forms to cover a wide range of business types and levels of risk. Consider starting with General Liability Insurance if you’re unsure what kinds of risks your company faces. Your business should begin with this type of insurance because it is the most common type of coverage that small businesses require.
Workers’ Compensation Insurance is another essential insurance policy for many businesses. If you plan to employ people, your state may require you to purchase Workers’ Compensation Insurance.
Define the brand of your cybersecurity firm
The public’s perception of your company can be summed up in “brand.” There are many benefits to having a solid brand.
Use our Free QR Code Generator to create a QR code that features your company’s logo. Choose from 13 QR code types to develop a code for your business cards and publications or to help promote your new website.
Strategies for Building a Cybersecurity Company’s Brand
To reach their intended audience, top cybersecurity professionals use a wide range of advertising techniques. Customers can be contacted and educated about internet dangers through webinars, videos, and blogs. Social media sites like LinkedIn and Twitter are excellent places to disseminate content. As a result, guest blogging spots on relevant websites and print publications can help establish your business as an industry authority. At least once a week, you should send an email to your subscribers with helpful advice.
Set up a website for your cyber security company
The next step is to build a website for your business after establishing your brand and designing your logo.
Even though building a website is a necessary step, many think it’s beyond their abilities because they lack website-building knowledge. Back in 2015, this was a legitimate concern; however, web technology has made tremendous strides recently and is now much more convenient for small-business owners than before.
If you haven’t already, it’s time to get started on your website:
- It’s a given that all legitimate businesses have websites. When getting your business online, it doesn’t matter what kind of business you run or what industry you’re in.
- Facebook pages and LinkedIn business profiles are not a substitute for a website you own.
- Tools like the GoDaddy Website Builder have simplified building an essential website. To create a website that you can be proud of, you don’t need to hire an expert.
Starting A Cybersecurity Business Ideas
A cybersecurity business can do anything from the most basic to the most complex tasks. Some of our clients have been doing this for a long time and are now expanding their businesses. It all comes down to what you can provide, such as firewalls, anti-virus, dark-web scanning, alien-vault devices, monitoring log management, and so on… All the equipment you can afford, in my opinion.
When starting a business, investing in your team and your tools are necessary.
Find out what your customers need now and in the future in terms of cybersecurity solutions. Before you open your doors for business, make sure you know who you’re selling to and what they need. You need to be aware of your limits. The more money you invest in security, the less likely your customers will be harmed. This must be weighed against your financial resources.
Starting a business without a clear understanding of the market can be disastrous.
Develop a business strategy outlining the issues you hope to address and the people you wish to assist. A team and tools are necessary to get started only when you have a plan. As a result, you must know who you’re marketing to, what they expect, and what you’re capable of.
Make a plan for what you can and cannot provide, how you will build your services, and what your cybersecurity company will look like a year from now. There’s a price to pay, as there always is. Everything is out of your reach. Even if you cannot prevent every breach or attack, you can still reduce the harm they cause. According to Gartner Analyst Earl Perkins, you should spend some of your budgets on detection and response solutions for security. “But my small customers don’t need all that,” I often hear MSPs say. I tell them to stop “cheapening your client.” You never know what cybercrime will bring, so it is better to have security measures that you don’t currently need. Please take a look at what your customers need now and go above and beyond to ensure that they are safe from any threats.
Ultimately, what can my customers hope to gain from working with me?
Relieved stress. They’ll expect nothing to happen to their data, even though you know you can’t guarantee it. You’ll have to tell them there are no guarantees, unfortunately. It is your responsibility to ensure that nothing gets through if you do not. Even the best security measures can go wrong from time to time. Being upfront and telling them they’ll have to pay extra for more excellent protection is the best course of action. Even if they don’t like it, it’s the reality. Credibility is critical when it comes to cybersecurity. In this equation, trust is also vital, but faith must be reciprocated. Your clients’ employees should receive security training and education from you, so make sure to do so. If they don’t know how to identify phishing attempts and other cybersecurity threats, your efforts will be in vain. If they don’t accept your training, you can’t be held entirely responsible if the rules are broken.
What about the promotion of a business engaged in cybersecurity?
Stop selling and start building relationships. Selling becomes a lot easier after that. Twitter, Facebook, and LinkedIn can all be used for free. MSPs need to think of themselves as a “Technology Marketing Company” rather than just an IT service provider. Media use in marketing is critical today, so I will rename this company a “Media Company that Specializes in Tech.” This is true. Use media such as videos, webinars, blogs, and more to reach out to potential customers and educate them about cybersecurity. To promote your services, give them easy-to-follow cybersecurity advice. This will give you an advantage over other MSPs in the market. Send them one cybersecurity tip a week via email or your website, hold cybersecurity webinars or live seminars in your area, and provide them with downloadable cybersecurity reports via email or your website. A Facebook ad campaign is the best way to spend money on social media today. To succeed in this industry, you need to establish yourself as a trusted cybersecurity expert. In addition, it will help you gain entry into the company.
What can I do to get the most out of my webinars? You can do a lot with a webinar once you have one set up. It’s up to you to spread the word. Send them a free webinar if you have a company you want to reach out to. Employees will be able to watch it whenever they have the opportunity. Brand recognition and trust are built when your name appears on the webinar. Educate employees on the importance of using strong passwords and how to spot phishing emails and other helpful information that can go a long way toward improving the company’s overall cybersecurity. They might not need you now, but they will remember you when the time comes. Having helped them overcome a problem, you’ve become a trusted business partner and will be their go-to security firm in the future.
What else can we do to promote our company?
Attend local business events and the like. Make connections with the people who can help you achieve your goals. Invite local businesses to participate in educational seminars. Do not forget to focus on cultivating personal relationships. You can then ask them to put you in touch with their contacts. Get to know the people in your neighborhood who can help you make a difference. Email them your webinars, send them interesting articles that they’ll appreciate, and keep “selling” without actually “selling” once you’ve established a relationship with them. They’ll come to you first if they know what you do and when they need it. Some people are born with the ability to build relationships. If it doesn’t, you’ll have to put in the time and effort yourself or hire someone else.