Cost For Starting A Cyber Security Company

Cybersecurity is a booming industry, with the global market expected to reach $203 billion by 2022. Starting a cyber security company is challenging – you’ll need to plan for startup costs and ensure your business is set up properly before launching.

Costs for starting a cyber security company include setting up a business name and corporation, a budget for employees, business licenses and permits, insurance, business cards and brochures, website setup, computer system, software, and education and certification.

What is the Startup Cost for a Cyber Security Company?

There is no set amount of startup cost for a cyber security company. The cost of starting a cyber security company will vary depending on several factors, such as the size and location of your business. It’s also important to consider how much money you want to invest in getting paid now versus growing your business while spending less money upfront.

Here are some general estimates:

Cost For Starting A Cyber Security Company
  • Small businesses with fewer owners can start with less than $10,000 in startup costs
  • Medium-sized businesses may need between $20,000 and $50,000
  • Large companies may require more than $100 million in initial funding.

Setting up a Business Name and Corporation

Setting up a business name and corporation is the first step to getting your cyber security company off the ground. A business name is simply what you call your company but choosing something easy to remember and relevant to what you do is important. For example, if your business is setting up security measures for software businesses, then “Security Solutions” might not be a good choice because it doesn’t tell customers exactly what they’re getting into. However, “Cyber Security” would be more appropriate because it describes your company’s services.

The process of registering a corporation can vary depending on where you live; however, most states require a filing fee and will require an attorney or tax professional to assist with setting up all necessary legal documents, such as articles of incorporation (which serve as proof that there is an entity using that name) or bylaws (which describe how decisions are made within an organization). 

So always consider how long-term impacts could affect everything else! For example: If someone wanted their child’s lemonade stand run under a corporate legal structure instead of being registered under their names, this could cause quite a few issues when deciding who gets paid or owns anything if needed later.

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Budget for Employees

Whether you hire a team of engineers or just one, you’ll need to budget for employee salaries and benefits. And remember about training costs: if the right employees are hard to find and culture is important to your business, then investing in training can help keep your workers happy and productive.

  • Employee turnover is expensive. Employee turnover can cost your company hundreds of thousands of dollars annually. According to research from Business News Daily, the average cost per employee who resigns ranges from $19,000 (entry-level positions) to $34,000 (executive positions). These figures include onboarding new hires, training them on company processes and policies, and even advertising their position externally before replacing them with another candidate.
  • Training programs last longer than one year. Many companies offer training programs that last one year or less; however, most IT certifications take two years or more! So, if someone starts at 18 but doesn’t finish getting their certification until 20 years old, do they have time left?

Business licenses and permits

A business license is called a “Certificate of Occupancy” in the United States. This is required for all businesses that operate in the state. The certificate of occupancy must be renewed annually.

A business permit is required when you want to run any service or store location in your home or office. If you want to sell products from home, you will need a sales tax license and an occupational tax number (or “business tax certificate”).

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You’ll need to invest in insurance, a business requirement. Insurance protects you from financial loss and includes cyber liability insurance that protects you from legal action due to cyber-attacks.

It’s important to note that some states also require cyber liability coverage. Suppose your business operates in one of these states (like California). In that case, it’s even more important to have this coverage because there could be serious consequences if anything goes wrong without it.

Cyber liability insurance costs can range between $1,000 and $5,000 depending on the type of organization you run and how much risk exposure it has.

Business cards and brochures

Business cards and brochures are other forms of advertising. They can be used to promote your company, its services, and even an upcoming event or conference. Business cards typically include your organization’s name, contact information (such as phone number), and a logo or image representing your work. 

Make sure your business card has color contrast to stand out from the other cards in the stack! Business card paper quality is important because it makes a good first impression on potential customers if they see it right away in their hands when they meet you at a trade show or networking event.

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Website setup

Your website is the first thing people see regarding your business. It’s a critical part of your brand, and you want it to look professional. This means:

Cost For Starting A Cyber Security Company
  • Looking good across all devices
  • Keeping security in mind and implementing HTTPS everywhere possible
  • Making sure that content updates can be done quickly and easily by anyone on your team

If you are going to invest in a custom design for your site, make sure that the designer has experience with tech startups. They should have worked with companies like yours before, so they know what’s needed for SEO (search engine optimization). This is important because Google uses factors like mobile friendliness when ranking sites in search results.

Computer System

Now that you’ve decided to start a cybersecurity company, it’s time to figure out how much it will cost. The first step is to purchase the necessary computer equipment. Computer equipment includes servers and workstations, printers, and network equipment like routers, switches, and firewalls. It also involves software such as antivirus programs or other utilities for protecting your clients’ computers against hackers or malware attacks. 

You’ll also need basic office equipment such as filing cabinets and desks for your employees (but not the fancy ergonomic chairs).

Once you have all this stuff set up in your offices, you’ll probably want some advertising materials printed out, so people know about what services you offer when they encounter your company image online through websites like Facebook or Twitter pages.

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Software is essential to the success of a cybersecurity company, and you will need to invest in it if you plan to hire employees. The following software tools are examples of what you can use to protect your network:

  • Firewall
  • Antivirus/anti-malware/anti-spyware
  • IDS (Intrusion Detection Systems)
  • IPS (Intrusion Prevention Systems)

The costs for these programs vary based on the type of software, quantity purchased, and whether it is enterprise level. You can save money by purchasing licensing agreements through Cisco’s SmartNet program or Microsoft’s Open Value Subscription with Software Assurance Agreement. Still, most companies choose commercial licenses because they come with technical support included.

Education and certification

  • Education and certification are critical to starting a cyber security company.
  • Some certifications are better than others. It’s important to research your options and determine which ones will help you do the job.
  • If you have an online business, you can often get certifications online without attending classes or taking tests in person.
  • Many colleges offer certification programs as well; this may be an option if you prefer more personal instruction from instructors who know what they’re talking about.

We hope we’ve helped you to get a better idea of what it takes to start a cyber security company. There are many things to consider, but with the right knowledge and resources, you can be on your way to success in no time!

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Frequently Asked Questions

How Much Insurance Do You Need For Your Accounting and Payroll Business?
  • What is the best way to start a cybersecurity company?

The first things you should do are research what your target market needs. If you have an idea for a product or service that has yet to be done, create it! Look at how other companies in the industry are doing things and see if there’s anything you can improve on.

  • Should I pursue cyber security?

If you have a passion for technology, then yes. Cybersecurity is an important field that will grow as technology becomes more advanced. You can make a difference in the world by helping people protect themselves from cyber attacks and data breaches.

  • What are some good books to read about cyber security?

We’ve found some great books: Hacking Exposed: Network Security Secrets and Solutions, Hacking Exposed: Web Applications, 2nd Edition, and Hacking: The Art of Exploitation.

To learn more on how to plan your own cyber security business click here!

Please note that the contents of this blog are for informational and entertainment purposes only and should not be construed as legal advice. Any action taken based on the information provided in this blog is solely at your own risk. Additionally, all images used in this blog are generated under the CC0 license of Creative Commons, which means they are free to use for any purpose without attribution.