How To Start A Cybersecurity Company

Cyber-Security / May 20, 2021 / 12 minutes of reading
How To Start A Cybersecurity Company
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If you have a plan of starting a cybersecurity company, start with the basics. Then, to ensure your performance, make sure you get the necessary certifications, financing, organisation, and business strategy.

It’s no wonder that cybercrime is on the rise in a progressively digital environment. The cost of doing business is also increasing. According to a 2019 IBM survey, the annual data breach pays $3.92 million.

Because of the heavy cash stakes, there is a high appetite for cybersecurity services. As a result, large corporations have the resources to employ cybersecurity professionals. However, most small and medium-sized companies cannot hire full-time cybersecurity workers.

That’s where your cybersecurity skills will help you launch a profitable security solutions company.

You will assist with protecting these small businesses against security threats such as data hacks, cyberattacks, phishing scams, ransomware, among other digital threats.

Companies are paying $150 per hour or more than for seasoned cybersecurity experts to help protect infrastructure and networks against cybercrime, as per PayScale reports.

If you’re starting a cybersecurity company, you can put your talents to use and get a slice of this lucrative market. First but, you must take the following steps to set the foundation for a profitable market.

Obtain The Required Technical Certifications.

Before they recruit you, they must have faith in your ability to complete the job correctly. In addition, a bachelor’s degree in computer science, information technology, or a related field indicates that you have the necessary skills to begin an IT-related company or cybersecurity.

However, degrees do not have the real-world insight that clients need. Therefore, certifications are another way to establish your credentials and demonstrate that your qualifications are realistic and essential.

The following are among the most common cybersecurity certifications:

  • Certified Ethical Hacker Certification: The EC-Council provides this credential to cybersecurity experts who monitor networks or devices for security flaws. The exam costs $100, has 125 questions, and requires about 4 hours to finish.
  • GIAC Security Essentials Certification (GSEC): Global Information Assurance Certification (GIAC) provides this certification, which validates IT practitioners’ understanding of information security. The exam lasts approximately five hours, contains 180 questions, and pays $150.
  • CISSP (Certified Information Systems Security Professional): The CISSP is awarded by (ISC)2, demonstrating your ability to plan, execute, and manage an efficient cybersecurity program and security services. The exam is limited to 150 questions, lasts 3 hours, and charges $699.
  • CCSP (Certified Cloud Security Professional): This credential is also issued by the (ISC)2, and it tells prospective customers that you have the expertise to plan, manage, and protect cloud data, infrastructure, and software. This examination costs $599, has 125 questions, and takes 4 hours to finish.
  • CompTIA CySA+ (CompTIA Cybersecurity Analyst): The CompTIA CySA+ exam measures candidates’ capacity to detect threats, evaluate and interpret data, and identify security issues. The exam lasts less than 3 hours, contains up to 85 questions, and charges $359.
  • ISACA’s CGEIT (Certified in the Governance of Enterprise IT): The CGEIT credential validates the competence of the test taker to inspect, monitor, and safeguard information systems. The test costs $760 for non-ISACA participants and $575 for ISACA participants. The test lasts 4 hours and consists of 150 questions.
  •  ISACA’s Certified Information Security Manager (CISM): ISACA also issues the CISM. This credential demonstrates that you possess the professional knowledge required to handle IT security and information systems. Nonmembers pay $760 for the exam, while members pay $575. It has 150 questions which take 4 hours to finish.

While certifications and skills are essential, they are the only effective ways of starting a cybersecurity company startup strategy. You should also develop and implement a business strategy.

  • Create a cyber security-specific business strategy.
  • A business plan serves as a simple roadmap for the company. It should provide information about the company’s organization, project, goals, and budget, among other things. The Small Business Administration (SBA) of the United States has compiled the following valuable recommendations for much of what your business strategy should also include:
  • an executive report that outlines starting a cybersecurity company and why it can succeed
  • a detailed overview of your company
  • Competitive competition research will help you determine the target market and classify your rivals, which could be specialized cybersecurity experts or general IT service providers.
  • a regulatory framework for the company
  • the goods or services you want to provide
  • your distribution and promotion policy
  • your budget/funding strategy
  • economic forecasts on what the business would be profitable

Let’s take a deeper look at some of the other business plan’s core elements.

Cybersecurity Company

But, first, define And Evaluate The Target Market.

You must decide on the emphasis of starting a cybersecurity company early on.

Any companies want to become an expert in a particular area or market. If you’re going to target a specific sector, such as banking or healthcare, for example?

Others prefer to position themselves in a specific field of cybersecurity. Regardless of the business, they may like to recognize their extensive knowledge of network security or access control.

This judgment must be based not just on the skill set, as well as on market research. You will find new openings if you are familiar with the market.

Inc. has described the following essential questions to assist you in evaluating the competition:

  • Who are your new rivals?
  • What are the advantages and disadvantages of your competitors?
  • What sets you apart from the rivalry?
  • How do you steal market share from your competitors?
  • How would your rivals respond if you join the market?
  • A SWOT analysis, which stands for capabilities, shortcomings, openings, and risks, may also be performed. It is a tried-and-true way of evaluating a business, commodity, or service on the market. It functions similarly to a risk appraisal for the new cybersecurity strategies.

After deciding on a priority and assessing the market, you must choose a legal framework for your business.

Your company’s legal system is vital. It affects everything, from day-to-day activities to taxation and financial threats. According to the SBA, the following are the five most traditional business structures:

  • Sole Proprietorship: It’s the most basic arrangement and the hardest to set it up, so there is almost nothing to arrange. It is a one-person corporation that records company gains and liabilities on an annual tax return. Even so, since there is no legal distinction between you and your company, you will be held individually responsible for its obligations and debts.
  • Partnership: The most basic arrangement for businesses shared by two or more people. Profits reports on personal tax returns by each individual. Limited liability partnerships (LLP) and Private partnerships (LP) are the two most common forms of partnerships. Except with at least one specific partner, most LP partners may have restricted liability.  However, those non-liability partners still have limited autonomy. In LLPs, each partner has reduced liability and get covered from the partnership’s debts.
  • LLC (Limited Liability Company): An LLC is a cross between a partnership and a sole proprietorship. It reduces the responsibility of the owners and divides your personal property from your company. However, operators must also declare all company revenue and expenditures on their individual income tax form.
  • S corporation: You give yourself a fee as an S corporation and are liable for all payroll taxes. Any residual income paid as dividends to the owner(s). The benefit is a reduced tax rate on dividends, but there are additional costs, laws, and paperwork for this alternative.
  • C corporation: The company, under this system, is a different legal body that can benefit, be charged, and be considered morally responsible. It may provide an infinite number of partners and no responsibility for its debts, but all profits can be taxable.

Before deciding on a framework, consult with company advisors, accountants, and lawyers to determine which structure is proper for you.

Obtain A Business Bank Account, A Business Licence, And A Credit Card For The Company.

To access the cybersecurity company, you’ll have to verify with local and state agencies to see what company permits or licenses are needed. Unlike in many other professions, you do not require a federal permit (yet).

Many states may also expect you to provide general obligation insurance before issuing you a license. In addition, if you have jobs, you must carry workers’ compensation benefits.

When it comes to opening a business account, you can be inclined to open an account at a personal bank. Not too quickly!

Consider fee-free bank accounts offered by national, online, or local banks. 

You should also think about getting a company credit card, which would allow you to maintain your personal and business finances apart.

A corporate credit card usually has better conditions and higher limitations than a personal credit card. However, it would provide you with a flexible line of credit that will usually come with benefits such as loyalty points and cash reward bonuses.

Any small business, regardless of legal structure, can obtain business credit cards. However, the offers and cards available to sole proprietors, yet most new companies, will be determined by your credit score.

Establish A Budget And Raise Funds

A variety of funding choices are available to assist you in getting your company off the ground. Aside from your own money, you may look at grants, loans, and private investors.

Many cyber startups are interested in these solutions. According to a new estimate, venture capital investment for cybersecurity startups has reached $5.3 billion.

These funds advertise that they are looking for cybersecurity firms to invest in:

  • ForgePoint Capital
  • Strategic Cyber Ventures
  • Intel Capital
  • TenEleven Ventures
  • Cyber Capital Partners
  • AllegisCyber Capital

Setting and adhering to a budget is often essential when launching a new cybersecurity business. The Balance provides helpful money-management advice, such as:

  • Set sales revenue targets.
  • Recognize your running costs.
  • Keep track of the cash balance.
  • Set funds aside for an emergency fund.

Locate The Proper Spot.

Fortunately, businesses all over the world need cybersecurity resources. But, of note, Hawaii can only accommodate a limited number of cybersecurity consultants.

When determining where to build a shop, you can consider your start-up money, what you need to recruit, and the size of your market, in addition to your optimal spot.  You have the following options:

  • Working at home: It has many benefits for small businesses. There is no long commute or office disruptions, and you have a better work-life balance. However, it could be lonely, and staying focused needs self-discipline.
  • Co-working spaces: This alternative provides convenience and a variety of benefits and services, and the business experience that working from home can not have. However, the fixed hours, lack of anonymity, and restricted space for growth will not be compatible with your ambitions.
  • Leasing or purchasing office space: Using a commercial workspace for your company has fixed expenses and tax savings, but the initial costs may be high. This choice would also not offer the same level of versatility as a  co-working room or a home office.

If you lease or rent a space, you must also provide commercial land insurance. This strategy, which is usually necessary for the rental agreement, would cover the company’s house, furniture, materials, and appliances.

Irrespective of where the location of the cybersecurity firm is, you can need commercial car insurance whether you or your workers fly to your clients’ offices or provide on-site facilities. When you use your car for work, your private vehicle insurance will not be sufficient.

Promote Your Products And Services.

Customers are the only thing your company cannot exist without. And promotion is the vehicle by which they delivered.

If you do not intend to do your marketing, try recruiting or contracting marketing to specialists in the industry. You will need their assistance in launching your brand, services, and product.

Begin with the fundamentals of advertising before branching out. So for a cybersecurity firm, a well-designed webpage is the starting point.

Since your online presence is undoubtedly your most valuable marketing tool, you must get it correct. Avoid the following widespread website blunders. You’ll also need to choose an appropriate domain name, design an appealing user interface, optimize the search engine ranking, and more.

When you do not want to do the job yourself, the outsourced or in-house marketer will inform you. However, if you put in the effort, Google will be your best friend.

Customers could identify your website via social media networks and search engines. You should have an engaging social media profile on websites such as Facebook, Twitter, and LinkedIn. Use them to support your own company and to distribute cybersecurity news and articles. Unless your budget requires it, you may employ a content developer to assist you in writing a blog.

Offline ads can explore by cybersecurity companies. Finally, networking is an essential method for every new company. Cybersecurity conferences have excellent ways to network with new collaborators and customers.

Safety Magazine keeps track of the best cybersecurity conferences. You might get lucky at conferences like Women in Cybersecurity,  RSA, the National Cyber Summit or InfoSec World.

Prepare Client Contracts With Care.

Sign a customer service agreement before beginning any new project. This contract must clearly describe your and your customers ’ expectations. Even if it were not your error, a botched assignment lacking legal safeguards would derail your career.

The arrangement should specify the nature of work, payment provisions, intellectual property rights, and indemnification/liabilities to minimize the lawsuit risk. To secure the sides, have an attorney study or draft client contracts for you.

Many customer contracts may necessitate you to obtain cyber responsibility insurance to handle potential losses in the event of a data breach.

Even if it is not stated explicitly in the contract, you should think about technology errors and omissions(E&O) insurance. For example, This policy would protect you if you prosecuted for a mistake at work. Cyber liability insurance uses the majority of technology E&O plans.

Hire Quality Staff

Congratulations on expanding your business to the point that you can recruit staff! The SBA has valuable recommendations for setting up your employee training procedure without an HR representative.

Conduct in-depth interviews, as well as background checks on prospective, hires to confirm their qualifications and expertise. Be sure to follow both federal and state rules while doing these reviews. When you start hiring jobs, you’ll want workers’ compensation benefits to cover your employees and yourself.

You should also consider purchasing fidelity bonds to safeguard against fraud, employee theft, or unauthorized data access.

Safeguard Your Future And Your Savings.

A new company is an opportunity for an individual in the future and yourself. We specialize in assisting cybersecurity companies in protecting themselves and limiting their danger. Our certified insurance brokers will be delighted to explore your company’s condition and identify the best ways to meet your requirements.

Thank you for reading!