Business Plan for ISS (International Security Service)
OWNERS
Igor Titarenko
Chad Brubaker
International Security Service (ISS)
137 East Weber Ave.
San Diego, CA
(000) – 123-456-7890
Fax 824134523
iss@yahoo.com
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I.
Table of Contents
I.
Table of Contents .................................................................................................................................... 2
II.
Executive Summary ................................................................................................................................ 3
III.
General Company Description ............................................................................................................. 4
IV.
Products and Services ............................................................................................................................. 5
V.
Marketing Plan ......................................................................................................................................... 6
VI.
Operational Plan .................................................................................................................................... 11
VII.
Management and Organization ........................................................................................................... 14
VIII. Personal Financial Statement............................................................................................................... 15
IX.
Startup Expenses and Capitalization .................................................................................................. 16
X.
Financial Plan ......................................................................................................................................... 17
XI.
Appendices ............................................................................................................................................. 20
XII.
Refining the Plan .............................................................................. Error! Bookmark not defined.
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II.
Executive Summary
Write this section last.
We suggest that you make it two pages or fewer.
Include everything that you would cover in a five-minute interview.
Explain the fundamentals of the proposed business: What will your product be? Who will your customers
be? Who are the owners? What do you think the future holds for your business and your industry?
Make it enthusiastic, professional, complete, and concise.
If applying for a loan, state clearly how much you want, precisely how you are going to use it, and how the
money will make your business more profitable, thereby ensuring repayment.
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III. General Company Description
International Security Service (ISS) - Bodyguard services (personal protection), Home Security Systems,
Video Surveillance, and service for other businesses.
Mission Statement: The goal of ISS is to ensure the safety and security of all of our clients. This will be
accomplished through our superb bodyguards, intricate home security systems, and high quality cameras.
Company Goals and Objectives: We want our business to start small and local in California, but over time we
expect to expand all over the US and eventually, to the whole world. We will begin renting out a building to
get started. Here we will hire professional and specialized individuals to train and educate our employees to
be strong, physically, emotionally, and mentally prepared, bodyguards that “are willing to risk their lives.”
We will ensure that our firm is a close family and that our customers are always satisfied with our services.
We are aiming for 200-300 clients by the end of our first year.
Business Philosophy: Customer protection and satisfaction, taking knowledgeable risks, and extremely polite
employees.
We want the public as a whole and its individuals to feel and be protected and secure from all dangers of the
world.
The security industry is constantly growing as terrorists emerge from everywhere in the world. As global
terror causes more and more scare, our multiple security services will be needed more and more. Crime rates
are extremely high, and we are here to stop bad things from happening to good people. Our business will
skyrocket as the need for bodyguards and other security systems rises. Our company’s numerous means of
protection will differentiate us from other companies and the various options and choices we will provide will
put us ahead of other companies for convenience alone.
Stability and quality are our strongest suits. Our business will have well-trained, smart, and hard-working
employees. Our private service for the clients will be our main profit gain.
Legal form of ownership: We will become a big corporation with time, however it is a partnership for the
time being.
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IV. Products and Services
ISS works hard to protect citizens from impending danger. With our top-of-the-line bodyguards, security
systems, video-surveillance, and services for other businesses, we will dominate the industry of security
service. We will defend and protect anybody from celebrities to Average Joes.
There are humungous risks in the line of duty for a bodyguard, so when business takes off, we will ensure
that our employees are more than well paid. Our services being so widespread for clients in society allow us
to diversify and gain the respect of the nation for bottom-dollar protection of the innocent.
The price of one of our bodyguard’s services will have differentiating prices depending on the level of risk
involved in the client’s profile. The minimum is $13,999 per month, the maximum is $27,999 for our
bodyguard services.
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V.
Marketing Plan
Economics
Facts about our industry:

100’s of competitive markets in the security industry around the world, however we plan to become
one of the best and most needed service there is.

11% percent share of the market we will eventually possess.

The need for security is higher than ever, and we will be needed in the industry.

There are over 1 million employed guards in the United States alone.

Guard services are more and more popular among the private lives of citizens and for use of other
corporations
Product
Features and Benefits
For each product or service:

Our business has private bodyguard services, surveillance, home security systems.

We will also supply other businesses with our services as joint operations and business allies.

Our customers will have the satisfaction of quality protection.

Our bodyguards can teach the client self-defense techniques while they are working with the
individual.

Our guards can also be professional chauffeurs

Some of our specialized employees will be proficient with technology (computers, laptops, etc.)

Our multi-lingual guards will be prepared for any difficulty in communication. (with our client,
contacts, international affairs, etc.)

Our clients could attend our schools, (such as firearms or other self-defense classes) and upon
completion they will receive a certificate of their accomplishments.
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Customers
Our clients will range from any age, any nationality, or any social status. We will serve and protect anyone
who comes to us, given they possess the necessary funds.
You may have more than one customer group. Identify the most important groups. Then, for each customer
group, construct what is called a demographic profile:

Age - 18 or older

Gender – No preferences

Location – Depends on client preferences

Income level – High enough to afford minimum payment

Social class and occupation – No preferences

Education – No preferences

Other - No extreme criminal background
For business customers, the demographic factors might be:

The security service industry

Location – Starting in California, subject to expansion

Firm is beginning small, subject to expansion

High quality, up-to-date technology, fair rates within our industry

The closer to our offices the more benefits our clients will receive.
Competition
Other security companies and bodyguard businesses will compete will our firm.
List your major competitors:
Thomas Dale & Associates
Investigations and Security
869 North Douglas Street, El Segundo, CA 90245
Phone: (310) 615-9990
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TDA Overseas Security Advising & Consulting
869 North Douglas Street, El Segundo, CA 90245
Phone: (310) 615-9990
Galahad Protective Services Incorporated.
14320 Ventura Blvd., Ste 612, Sherman Oaks, CA 91423
Phone: (818) 780-1818, Fax: (818) 780-4848
Email: csq@galahadinc.com
These companies will compete with our products, however, they do not have the wide variety of services we
have, and they lack the conveniences that we possess.
Schools of self-defense and military training will be our indirect competitors, however we are more varied and
specialized resulting in a more complete arsenal of skills.
We have unique employees because they are required to have 6+ years of combat-oriented experience(s).
Our variety of services also sets us apart from the competition.
Table 1: Competitive Analysis
FACTOR
Me
Strength
Weakness
Competitor A
Competitor B
Importance to
Customer
Products
Surveillance
Equipment
High Quality
Footage
Pricy for us
Lower Quality
Less features
2
Below Average
Affordable
Lower profits
Higher price
Higher price
2
2nd to none
High Quality
Price of
Production
Average
Quality
Different
Resources
1
Varied
Many options
Less specifically
specialized
Less options
More
specialized
3
Protection
Customer
Safety
Risks/Dangers
Lower Quality
of Product
Less varied in
Services
1
Very
Loyalty
Lack of trained
employees
Not as much
care for clients
Employees less
qualified
2
Credit Owed
Expensive
Prices
Products
2
Price
Quality
Selection
Service
Reliability
Stable in our
Finances
Stability
Financial
Expertise
Field
Experience
Combat skills
Risk
Less
specialization
Less variation
2
Responsibility
Trustworthy
Not yet well
known
Less
trustworthy
More Accidents
3
Company
Reputation
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FACTOR
Me
Strength
Weakness
Competitor A
Competitor B
Importance to
Customer
Location
High
Population
More
Clients/profit
Not enough
employees
Climate
Population
4
Sales Method
Advertising
Many viewers
Expenses
Potential
customers
Profit
4
Credit
Policies
Gradually
Repaid
Economically
Stable
Debt still at
large
Lower Debts
More
experience
3
Advertising
Internet,
Magazines,
Billboards
Location with
high demand
Expenses
Less “out
there”
Authorization
3
Formal
Respect
Expensive
Uniform
Advertising
N/A
3
Image
Now, write a short paragraph stating your competitive advantages and disadvantages.
Niche
We fit into the security industry as an all-around protective services unit. We have surveillance systems,
personal body guards, and home security systems. Unlike our competitors who only have one type of these
services. This allows for us to be very convenient and for the consumer to get all of the protection they need
in one place.
Strategy
Promotion
We will advertise in the newspapers dealing with business and regular newspapers such as the Wall Street
Journal.
We will also advertise on TV for individual customers as well as other businesses. We will be targeting
individual homeowners and business owners with our security and protection.
We will use other methods to advertise, posters, billboards, and internet networking. We will also hire
marketers to go around everywhere such as hotels, restaurants, banks, and promote ISS.
We will show ourselves as a high quality reputation, with a reasonable price.
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In addition to advertising, what plans do you have for graphic image support? This includes things like logo
design, cards and letterhead, brochures, signage, and interior design (if customers come to your place of
business).
Our logo will be
We will keep records of our customers, and a valued customer reward system that will lower their fees.
Promotional Budget
How much will you spend on the items listed above?
Before startup? (These numbers will go into your startup budget.)
Ongoing? (These numbers will go into your operating plan budget.)
Pricing
Our prices will be slightly lower than average, this will get us more customers and in turn, more profits.
Distribution Channels
Our security systems will be channeled from ADT. Our distribution is primarily supplied directly to the
customer.
Sales Forecast
In our first year we predict to have around 200-300 clients. Over the duration of the next 3 years by our
prediction there will be an increase of 15% in our customers.
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VI. Operational Plan
Production
Our product is divided into security services, and personal bodyguard protection.

We will ensure that our guards are top-of-the-line and professional. Our image will be carried by our
workers, so we will keep them organized and embroidered with high quality.

We are a security-alarm retail store that doesn’t keep inventory.
Location
We are starting in California, with hopes to expand.
Physical requirements:

135 x 155 sq. ft.

Rental Brick Offices

Electric, water, gas heating
Access:
No requirements for location in regards to other businesses.
To start we will rent a building, but eventually once we begin to gain profits, we will have a building
constructed elsewhere.
Cost: Approximately $2, 325 per month for rent, and about $27,900 per year.
Building will open Monday through Friday from 6:00am-7pm. Our guards will work accordingly with the
clients 24 hours/7 days a week.
Legal Environment
Describe the following:

Licensing and bonding requirements

Permits

Health, workplace, or environmental regulations
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
Special regulations covering your industry or profession

Zoning or building code requirements

Insurance coverage

Trademarks, copyrights, or patents (pending, existing, or purchased)
Personnel

5 to 7 guards to start

Type of labor: professional

We will recruit our guards from the armed forces, professional martial artists, bodyguard schools, and
specialized police units

2 to 3 years of experience in any protective service

Starting salary: Around $50,000 – $60,000 depending on their clients.

Armed forces ( active duty), professional martial artists, bodyguard schools, and specialized police
units

We will manage our own finances and deal the systems through other marketing channels, and our
bodyguards will serve our clients.

Our employees must promise to perform any act necessary to protect the well-being of the client.
Inventory

We will have no physical inventory of our product, however we will keep records of our clients.
Suppliers

ADT will supply us our equipment and Headhunters will assist us with our employee search.
Credit Policies

For our products(service) we will allow customers to use credit, for our guards, we expect up-front
payment.

Some of our product will be pricy, so payment in full at the time of purchase may be difficult for
most clientele.

We will check their credit score, and if it is adequate enough along with their proposed budget.
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
Depending on the amount of credit needed, their charged rates will differ along with the time period
of the payment.
Managing Your Accounts Receivable
If you do extend credit, you should do an aging at least monthly to track how much of your money is tied up
in credit given to customers and to alert you to slow payment problems. A receivables aging looks like the
following table:
Accounts
Receivable
Aging
Total
Current
30 Days
60 Days
90 Days
Over 90 Days
$50,000
$10,000
$20,000
$10,000
$10,000
4% interest rate
added
You will need a policy for dealing with slow-paying customers:

We call them after 30 days

After 60 days we will send a letter

After 120 days we will get an attorney after our client.
Managing Your Accounts Payable
You should also age your accounts payable, what you owe to your suppliers. This helps you plan whom to
pay and when. Paying too early depletes your cash, but paying late can cost you valuable discounts and can
damage your credit. (Hint: If you know you will be late making a payment, call the creditor before the due
date.)
Do your proposed vendors offer prompt payment discounts?
A payables aging looks like the following table.
Accounts
Payable Aging
Total
Current
30 Days
60 Days
90 Days
Over 90 Days
$35,000
$5,000
$10,000
$10,000
$10,000
Fully paid
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VII. Management and Organization
Igor and Chad will manage the business on a day to day basis. We have college degrees in NBA, along with
military active duty experience, and bodyguard schooling.
Professional and Advisory Support
List the following:

President: Igor Titarenko

Vice-President: Chad Brubaker

Board of directors: Jonathan Overbeck and Brian Kelgen

Management advisory board: Nicolas Dames and Terry Johnson

Attorney: Jack Daniels

Accountant: Rodney Thompson

Insurance agent: Tony Bundy

Banker: Igor Titarenko

Consultant or consultants: Chad Brubaker

Mentors and key advisors: Brian Devers and Brian Muhollan
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VIII. Personal Financial Statement
We will have approximately 300-400 shares of stocks. We will own 51% percent of the company’s stock
share divided within the two of us. The other 49% will go to our investors. This 49% will be distributed
among our investors so they can control a part of the company. 17
% of our profit each month will go towards paying back our borrowed credit.
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IX. Startup Expenses and Capitalization
You will have many expenses before you even begin operating your business. It’s important to estimate these
expenses accurately and then to plan where you will get sufficient capital. This is a research project, and the
more thorough your research efforts, the less chance that you will leave out important expenses or
underestimate them.
Even with the best of research, however, opening a new business has a way of costing more than you
anticipate. There are two ways to make allowances for surprise expenses. The first is to add a little “padding”
to each item in the budget. The problem with that approach, however, is that it destroys the accuracy of your
carefully wrought plan. The second approach is to add a separate line item, called contingencies, to account
for the unforeseeable. This is the approach we recommend.
Talk to others who have started similar businesses to get a good idea of how much to allow for contingencies.
If you cannot get good information, we recommend a rule of thumb that contingencies should equal at least
20 percent of the total of all other start-up expenses.
Explain your research and how you arrived at your forecasts of expenses. Give sources, amounts, and terms
of proposed loans. Also explain in detail how much will be contributed by each investor and what percent
ownership each will have.
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X.
Financial Plan
The financial plan consists of a 12-month profit and loss projection, a four-year profit and loss projection
(optional), a cash-flow projection, a projected balance sheet, and a break-even calculation. Together they
constitute a reasonable estimate of your company's financial future. More important, the process of thinking
through the financial plan will improve your insight into the inner financial workings of your company.
12-Month Profit and Loss Projection
Many business owners think of the 12-month profit and loss projection as the centerpiece of their plan. This
is where you put it all together in numbers and get an idea of what it will take to make a profit and be
successful.
Your sales projections will come from a sales forecast in which you forecast sales, cost of goods sold,
expenses, and profit month-by-month for one year.
Profit projections should be accompanied by a narrative explaining the major assumptions used to estimate
company income and expenses.
Research Notes: Keep careful notes on your research and assumptions, so that you can explain them later if
necessary, and also so that you can go back to your sources when it’s time to revise your plan.
Four-Year Profit Projection (Optional)
The 12-month projection is the heart of your financial plan. This section is for those who want to carry their
forecasts beyond the first year.
Of course, keep notes of your key assumptions, especially about things that you expect will change
dramatically after the first year.
Projected Cash Flow
If the profit projection is the heart of your business plan, cash flow is the blood. Businesses fail because they
cannot pay their bills. Every part of your business plan is important, but none of it means a thing if you run
out of cash.
The point of this worksheet is to plan how much you need before startup, for preliminary expenses, operating
expenses, and reserves. You should keep updating it and using it afterward. It will enable you to foresee
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shortages in time to do something about them—perhaps cut expenses, or perhaps negotiate a loan. But
foremost, you shouldn’t be taken by surprise.
There is no great trick to preparing it: The cash-flow projection is just a forward look at your checking
account.
For each item, determine when you actually expect to receive cash (for sales) or when you will actually have
to write a check (for expense items).
You should track essential operating data, which is not necessarily part of cash flow but allows you to track
items that have a heavy impact on cash flow, such as sales and inventory purchases.
You should also track cash outlays prior to opening in a pre-startup column. You should have already
researched those for your startup expenses plan.
Your cash flow will show you whether your working capital is adequate. Clearly, if your projected cash
balance ever goes negative, you will need more start-up capital. This plan will also predict just when and how
much you will need to borrow.
Explain your major assumptions, especially those that make the cash flow differ from the Profit and Loss Projection.
For example, if you make a sale in month one, when do you actually collect the cash? When you buy
inventory or materials, do you pay in advance, upon delivery, or much later? How will this affect cash flow?
Are some expenses payable in advance? When?
Are there irregular expenses, such as quarterly tax payments, maintenance and repairs, or seasonal inventory
buildup, that should be budgeted?
Loan payments, equipment purchases, and owner's draws usually do not show on profit and loss statements
but definitely do take cash out. Be sure to include them.
And of course, depreciation does not appear in the cash flow at all because you never write a check for it.
Opening Day Balance Sheet
A balance sheet is one of the fundamental financial reports that any business needs for reporting and financial
management. A balance sheet shows what items of value are held by the company (assets), and what its debts
are (liabilities). When liabilities are subtracted from assets, the remainder is owners’ equity.
Use a startup expenses and capitalization spreadsheet as a guide to preparing a balance sheet as of opening
day. Then detail how you calculated the account balances on your opening day balance sheet.
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Optional: Some people want to add a projected balance sheet showing the estimated financial position of the
company at the end of the first year. This is especially useful when selling your proposal to investors.
Break-Even Analysis
A break-even analysis predicts the sales volume, at a given price, required to recover total costs. In other
words, it’s the sales level that is the dividing line between operating at a loss and operating at a profit.
Expressed as a formula, break-even is:
Breakeven Sales
=
Fixed Costs
1- Variable Costs
(Where fixed costs are expressed in dollars, but variable costs are expressed as a percent of total sales.)
Include all assumptions upon which your break-even calculation is based.
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XI. Appendices
Include details and studies used in your business plan; for example:

Brochures and advertising materials

Industry studies

Blueprints and plans

Maps and photos of location

Magazine or other articles

Detailed lists of equipment owned or to be purchased

Copies of leases and contracts

Letters of support from future customers

Any other materials needed to support the assumptions in this plan

Market research studies

List of assets available as collateral for a loan
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