Are you about starting a cyber security company? If YES, here is a complete sample cyber security business plan template & feasibility report you can use for FREE.
Okay, so we have considered all the requirements for starting a cyber security business. We also took it further by analyzing and drafting a sample cyber security business marketing plan template backed up by actionable guerrilla marketing ideas for cyber security businesses. So let’s proceed to the business planning section.
Why Start a Cyber Security Business?
The internet is one innovation that has changed the world; and yet as helpful as the internet has been, it has also caused a lot of problems, as cyber crimes are being committed daily by either individuals or groups of people. The cyber crimes being committed range from financial, personal to national security issues and so many more.
They attack individuals, businesses and even the government by tapping calls, monitoring emails or hacking websites to extract sensitive information, which is why more efforts are being put in place to secure data from those seeking to use them for purposes that are against what the owner intends.
Starting a cyber security business is therefore a lucrative business to go into because individuals, businesses and the government need their data protected. However, to start this kind of business, you will need to have technical skills that will be needed to secure data or stop an ongoing attack for your client.
Due to the technical nature of this business and the need to understand what you will be getting into from the business aspect, it would be wise to consult a business consultant in the area where you intend starting the business. This is to enable the business consultant go through your business concept and advise you on whether to proceed with the business or not. If your business concept is a great one, the business consultant would offer you tips and suggestions on the way forward.
Another important aspect that you would need to take care of before starting your business is writing a comprehensive business plan. A business plan is a document that shows holistically where your business is headed and if you will likely succeed with the business you intend to start.
Writing a business plan is however not an easy task especially the financial aspect, but it is important for your business. You can either hire the services of a business plan writer or go online to get a free business plan template to use as an aid in writing a business plan for your business. Below however is a sample cyber security business plan template for you.
A Sample Cyber Security Business Plan Template
- Business Overview
According to Ponemon Institute, within the year 2015, the costs associated with cyber crime was 19% higher than it was in 2014. Globally, a hack in 2014 cost companies on the average $7.7 million. This has led 20% of companies globally to create cyber crimes budget between $1 million and $4.9 million depending on the scale of the company and ensure its strict implementation.
This has also led to huge investments in cyber security firms, as the first half of 2015 saw investors pumping nearly $1.2 billion into start-ups in this industry. According to forecasts, the investments were likely to reach $77 billion as at the end of 2015. The industry has also been pegged to reach $170 billion by the year 2020.
According to PricewaterhouseCoopers (PwC), globally, 58 percent of companies have an overall security strategy; 49 percent conduct periodic threat assessments, 48 percent monitor and analyze security intelligence actively. However, according to KPMG, 50 percent of CEOs globally with more than $500 million in revenue are usually not prepared as they should for a cyber attack.
However worrisome the threat of an attack externally is, companies now also have to worry about internal attacks from employees. According to a survey by SANS 2015, 74 percent of Chief Information Security Officers, CISOs are more worried about internal than external cyber attacks. According to a survey conducted by PwC, 34 percent of cyber attacks in 2015 were from current employees and 28 percent from former employees.
The damage caused by cyber crime is estimated to hit $6 trillion by the year 2021. This has led to a forecast that there will be an estimated increase in spending by companies for cyber security between the periods of 2017 and 2021 to $1 trillion. According to Gartner, as at 2016, more than $80 billion was spent on products and services related to cyber security. This is however expected to exceed $1 trillion globally within a five year period.
The cyber security industry is one that is fast paced as there is zero percent unemployment rate in this industry. The industry in fact has unfilled positions that are expected to reach 1.5 million by the year 2019. This shows that there is severe shortage of talent especially as more cyber crimes are being committed almost every other day as breaches continue to rise, with security incidents in 2015 at a 38 percent increase than as at 2014.
It has been estimated that by 2020, more than 4 billion people will be susceptible to attacks over the internet. The United States Government between the periods of 2006 and 2016 has spent over $100 billion. It also budgeted a whopping $14 billion in 2016 for cyber security.
According to Intel, the number of devices that will be connected might reach 200 billion in 2020; this is from the 15 billion connected devices in 2015. However, Microsoft and Cisco has countered the report claiming that only 50 billion devices will have been connected by 2020. Regardless of the estimated number, the report points to the same fact that more people will be online and will be vulnerable to cyber attacks.
Cyber Security Business Plan – Executive Summary
Kaboosh Tech is a standard and leading cyber security firm that is based in Mountain View – California here in the United States of America. We are in business to design cyber security solutions for our various clients – domestic and corporate. Asides from our core services, we also offer consultancy, training and technical support to our numerous clients.
Our location here in Mountain View – California is a very strategic one as we are in one of the most engaging tech communities in the whole United States of America, which therefore means that we are close to all the relevant tech companies, and other assorted stakeholders.
Our vision is to ensure that we are amongst the top five cyber security firms within three years of starting our business. We also intend to be known for our innovativeness in the cyber security world. We also intend to ensure that we are engaged in fair practices, which means that for the kind of business we would run, we intend to hold ourselves to a high standard so that our clients’ confidence in us won’t be misplaced.
In view of this, we are prepared to go the extra mile in ensuring that we build a solid business structure. We are prepared to source for and recruit only the best employees that will help grow and sustain our cyber security business.
Our management team is comprised of individuals with the best skills and experience. All those in the management team know what it means to ensure that a business such as ours is able to attain all its intended goals and objectives. Our management team believe in our values and philosophies and are fully committed to ensuring that we are a force to reckon with.
Due to the fact that we are in a very competitive industry, where being proactive is one of the factors that allows a business exist for long, we are always on the know about the trends in the industry and even intend to create a few trends as well within our one year of operation.
Finally, our Chief Executive Officer, Mr. Kab Oshe is one of the top cyber security men in the industry and has worked in several stints. He is known for not only for being innovative but for his business acumen as well. We are confident that with him at the helm we will be able to achieve all our set goals and objectives.
- Our Products and Services
At Kaboosh Tech we intend to offer our customers forward thinking cyber security services that will enable them to remain ahead in whatever industry they are in.
However, because we are established to not only offer services but also generate revenue as well, we intend to increase our sources of income by offering additional services such as consultancy service and training. We intend to make as much profit as is legally permissible under the laws of the United States of America.
Below therefore are some of the services we intend to offer our various customers;
- System Hardening
- Consultancy and Advisory Services
- Technical Support
Our Vision Statement
Our vision is to ensure that we are amongst the top five cyber security firms within three years of starting our business. We also intend to be known for our innovativeness in the cyber security world.
- Our Mission Statement
In order for us to achieve our vision, we intend to build the best business structure that will see us employing only the best here at Kaboosh Tech.; our intention is to not only meet but exceed the expectations of our customers.
- Our Business Structure
Due to the fact that we intend to build a standard cyber security firm here in Mountain View – California, we have put in place, plans and processes that would ensure that we get it right from the beginning as we intend to go the extra mile in picking the best employees to come and work with us at our firm.
Our management team is comprised of the best hands who have not only had several experiences in the industry that would be of huge benefit to our business but also has been attuned to our corporate goals and objectives and are willing to work to ensure that we are able to attain these goals and objectives.
Due to the fact that we would not be running a conventional cyber security firm especially in regards to the different services that we would be offering, we would be hiring more employees than necessary to handle the various roles and objectives that will crop up.
Below therefore is the business structure which we intend to build for our cyber security firm.
- Chief Executive Officer
- Administrative Manager
- Human Resources Manager
- Chief Information Security Officer
- Security Administrator
- Customer Service Executive
- Marketing and Sales Team
- Security Guard
Roles and Responsibilities
Chief Executive Officer
- Creates the right policies and strategies that will lead the direction of the firm
- Assembles the right management personnel and delegates certain responsibilities to them for the benefit of the firm
- Meets and negotiates with high level clients on behalf of the firm
- Ensure that the administrative functions are performed smoothly
- Ensures that other management staff are aligned with company policies at all times
- In charge of the day-to-day affair of the firm
- Prepares financial information, statements and reports on behalf of the firm
- Carries out internal audit and financial forecast
- Prepares tax documents and ensures that it is submitted to the right authorities
Human Resources Manager
- Sources for, interviews and recruits competent and experienced employees to work for the firm
- Creates human resource policies and ensures that they are strictly adhered to
- Ensures that employees undergo training as at when due and that periodic performance appraisals are also conducted
Chief Information Security Officer
- Responsible for establishing the vision of the organization and creates strategy to ensure that the organization’s information and technologies are protected
- In charge of developing strategies and policies that will handle security related incidents
- Allocates security resources efficiently and for the overall benefit of the organization
- Responsible for creating system defense against unauthorized access or modifications from external threats
- Configure the right security tools such as anti-virus software, firewalls and patch management systems on behalf of the firm
- Performs on behalf of the firm, vulnerability and networking scanning assessments
Customer Service Executive
- Responds correctly to customers inquiries and orders
- Remains aware and informed of company policies as well as industry trends in order to give customers accurate information
- Keeps an updated customer database for the firm
Marketing and Sales Team
- Responsible for conducting market survey that would determine new target markets for the firm
- Meets with and negotiates with clients on behalf of the firm
- Conducts direct marketing and sales with a view to generating revenue and attaining the corporate sales goals of the firm
- Ensures that the premises remains clean at all times
- Ensures that cleaning stock are always in supply and that depleted stock are replenished
- Carry out any other duty as might be assigned by the management
- Patrols the premises and ensures that it is free from any form of trespassers
- Watches the surveillance camera in order to forestall any suspicious activity or person
- Carries out any other duty as might be determined by the management
- Runs official errands on behalf of the firm
- Ensures that traffic rules and regulations are obeyed and a logbook kept on behalf of the firm
- Carries out preventive maintenance on the vehicle on behalf of the firm
Cyber Security Business Plan – SWOT Analysis
Our intention to build a standard and world class cyber security firm here at Mountain View – California has led us to seek the services of a reputable business consultant who understands the market thoroughly to take a look at our business concept and determine if we are likely to survive in the industry we intend going into.
Using four major attributes to analyze our business – strengths, weaknesses, opportunities and threats – the business consultant was able to bring our some facts that we are going to use in determining how well placed we are to start this business.
Therefore the results of the SWOT analysis conducted on behalf of Kaboosh Tech are;
Our strength lies in the fact that we are offering various services to all our customers, which has made us get a huge share of the market and to effectively compete against our competitors. Our employees are not only creative but very capable in ensuring that we are not only able to meet the demands of our customers but that we are able to surpass them as well.
Our employees are amongst the best paid in the industry of cyber security and especially amongst start-ups, this has led to our brand becoming well known in the short while that we have started. Our chief executive officer has a vast experience in this industry and has worked in various capacities in other cyber security firms and will therefore bring the right experience to bear for our firm, thereby allowing us to attain our goals and objectives.
The cyber security business is a crowded one and so it will not be so easy for us to break into this market, even as strategic as our location is. Also, because we are basically a new business, we do not have the staff strength and financial resources that will enable us effectively compete against our competitors.
The cyber security market is one that has plenty of opportunities both at making a name or at making money and we fully intend to explore both. We will conduct a market research that will enlighten us more on the opportunities available to us and how we can use that to our advantage.
There are several threats that we are likely to face when starting or running the business and the first is the fact that we are going to face competitors with similar services coming to our location to start up their business. Another threat we are likely to face is with changing trends, but we will ensure that we do all we can to always be proactive so that we can easily adapt to trends.
Cyber Security Business Plan – MARKET ANALYSIS
- Market Trends
The healthcare sector was not spared in 2015 as it was struck by major breaches that saw 80 million records being compromised. This didn’t just start in 2015, because since 2009, close to one-third of Americans have been victims of breaches in several healthcare companies. This act has led many healthcare companies to invest more in cyber security so as to protect the data of their customers.
There are majorly two types of threats that companies face, and there are inside and outside threats. Inside threats are usually carried out by a company’s current or former employee. According to PricewaterhouseCoopers (PwC), more than 34 percent of the cyber attacks that occurred in 2015 were from current employees who were still working with the firm while about 28 percent were from former employees.
Outside cyber attacks however are often carried out by hackers, activists, government agencies and organized crime outfits amongst other kinds of people and they are usually carried out within minutes while using several methods such as RAM scraping, phishing, spyware or credential theft.
- Our Target Market
Almost everyone who has connected devices is susceptible to cyber attacks, which would be basically everyone in the United States of America. However, in order to have an accurate data as regarding those who we would be focusing on, we intend to conduct a market research that will allow us know who our true target market are and who might be our target market in the near future.
The market research we intend to conduct however will allow us identify what is expected from us by the target market and what we should expect from them as well. In view of this, we are therefore in the cyber security market to offer our services to the following groups of people and businesses;
- Healthcare companies
- Financial institutions
- Government agencies
- Tech Companies
- Small businesses
- Educational institutions
- Political organizations
Our Competitive Advantage
Our intention of starting Kaboosh Tech is to ensure that we offer our clients cyber security services that will allow them remain proactive ahead of their attackers. We intend to be amongst the top five preferred brands by our target market and among the top three cyber security firms in the United States of America. However, in order for us to achieve this feat, we have come up with several competitive strategies that will allow us to favorably compete against our competitors.
We understand the cyber security market and most of our products are preventive in nature, which causes more companies to prefer our security designs that will allow them remain proactive in business.
We have a vast number of experienced people on board who understand the cyber security market and who know how to bring our start-up from scratch to become a major force to be reckoned with in the industry and amongst consumers. We are constantly ensuring that our employees remain stimulated enough in order to not only meet but exceed the expectations of our clients; both corporate and domestic.
We have ensured that not only is our facility strategically located here in Mountain View – California but also that we create an environment that is not only conducive but one that mentally stimulates and brings out the creative juices for the sustainability and growth of our business.
Our employees are also well paid better than what similar start-ups here in Mountain View, Palo Alto, and Silicon Valley are paying their employees. Also, we are in tune with trends and ensure that all our employees go through training and attend seminars every now and then so as to enhance their skills, thereby boosting productivity for our company.
Cyber Security Business Plan – SALES AND MARKETING STRATEGY
- Sources of Income
Kaboosh Tech is a cyber security firm that has been established with the sole intention of generating revenue and maximizing profit in the cyber security industry here in Mountain View – California. We intend to ensure that we make as much profits as we can not only in the United States of America but all over the world as well.
Kabbosh Tech will therefore generate income by offering the following services;
- System Hardening
- Consultancy and Advisory Services
- Technical Support
Cyber crimes have led to a lot of companies and individuals investing more in cyber security in order to protect their data and sensitive information.
Our location in Mountain View – California is very strategic as we are in one of the tech communities and so have a lot of opportunity to generate the necessary revenue that will not only sustain our business but have us making enough profits in our first six months of operation.
We however carried out a critical examination of the cyber crime market cum software and tech industry in order to determine our chances in the market and what our sales forecast is likely to be. In conducting our sales forecast, we made use of information and assumptions from similar start-ups not only here in Mountain View but also in other tech communities here in California.
Therefore, the sales projections for Kaboosh Tech based on the data and information gathered are as follows;
- First Fiscal Year-: $500.000
- Second Fiscal Year-: $950,000
- Third Fiscal Year-: $2,000,000
N.B: Our projected sale is very moderate compared to what we are actually going to make but we chose to be on the safe side. The assumptions used in this instance were that there won’t be any competitor within the time period and that we would not change locations too. Should however any of the assumptions change, the sales projected figures would either increase or decrease.
- Marketing and Sales Strategy
Marketing is a very important aspect for any business either new or existing as this is where revenue for the business is not only generated in order to sustain and grow the business, but awareness for both existing and new customers for the business is created as well. The importance of marketing has seen businesses keeping a separate budget and creating marketing policies and strategies that will allow it to stand out in the market place.
In view of this, we are conducting a thorough marketing strategy that will enable us know who our target market is, what it is they want from us, and what we should expect from them. The marketing research is also essential because it would allow us know what strategies would be effective in the short and long run and how much we would need to set aside as a marketing budget that will allow us compete favorably against our competitors.
In this regard, we have engaged the services of a reputable marketing consulting firm here in Mountain View who have dealt with firms such as ours and created marketing strategies that were effective for them. Our choice of using a marketing consulting firm rose from the fact that as this is an intensely competitive industry, we would need all the help we can get to position our business to a standard that will allow us to achieve all our goals and objectives.
We also intend to empower our marketing and sales team to ensure that marketing strategies created for the firm are in line with our core values, goals and philosophies and will seek to promote our brands at all times. Our marketing team has the right therefore to modify or remove ineffective strategies that might harm the firm in the long run.
Therefore, the following are the marketing strategies that we will adopt at Kaboosh Tech;
- Formally introduce our cyber security firm by sending introductory letter to healthcare companies, financial institutions, government agencies, tech companies and other stakeholders in the cyber security market
- Throw an elaborate party to launch our cyber security firm in such a way as to generate awareness about our firm
- Place adverts in local and national newspapers and tech magazines as well as on radio and television stations about our cyber security firm
- Engage in direct marketing and sales by negotiating with clients
- Install billboards in strategic locations all around Mountain View and around California as well
- Use our social media platforms and other tech platforms to vigorously market our cyber security firm
Cyber Security Business Plan – Publicity and Advertising Strategy
Due to the intense competition in this industry, cyber security firms that do not engage in the right publicity are bound not to survive long in the business. While publicity and advertising is very important for any business, knowing the right strategies to use due to the nature of the business will ensure that corporate goals and objectives are easily adhered to.
In regards to this, we have engaged the services of a reputable publicity consulting firm here in Mountain View – California with the right knowledge and expertise to help us draft strategies that will not only promote the brand of our company, positively communicate our brand and allow us stand out but one that will allow us to compete favorably against our competitors.
Therefore, some of the publicity and advertising strategies that we would use to promote Kaboosh Tech are;
- Attend seminars and relevant tech and software conferences in order to network and increase awareness about our brand
- Develop trial versions of our cyber security products for users and have them buy the original as soon as they are satisfied with the services from our products
- Use social media platforms such as Facebook, Linkedin, Google Plus and Twitter to vigorously promote our brand
- Create an interactive website and promote contests from our brand or from other brands
- Participate in and sponsor relevant community programs here in Mountain View – California
- Distribute handbills and fliers in strategic locations here in Mountain View
Our Pricing Strategy
Determining the right price for our products and services here at Kaboosh Tech will depend on a whole lot of factors such as how strong our products are, what category of products and services our customers will be demanding, how unique the products are, what our competitors are offering and what our overhead and running expenses would be.
Because of how competitive the market is, we intend to offer discounted price on some of our products as well as other incentives for the first two months of operation in order to increase the awareness for our product and attract more customers to purchase from us. Even though we would be offering a discounted price, our analysis has shown that while we might be having a low gross margin, we would not be running at a loss.
- Payment Options
Due to the high value we have for our customers and how sweet we want their experience at our company to be, we at Kaboosh Tech have come up with different payment options that will suit all our various customers and whatever preferences they might have.
Therefore, the payment options that we intend to make available to our various clients are;
- Cash payment
- Payment via check
- Payment via online payment portal
- Payment via Point of Sale (POS) Machine
- Payment via bank draft
- Payment via credit card
- Payment via crypto-currency
The above payment options were deliberately chosen to be able to cater to the diverse needs of our clients and they suit our business too. We intend to assure our customers that these platforms will work smoothly without hitches of any sort.
- Start-Up Expenditure (Budget)
The cyber security business is not such a hard business to start but if however you intend setting up a business that is standard then you would need to spend a bit more in ensuring that the most important aspects are well covered. Mostly the bulk of the capital would be used in procuring equipment, leasing a facility, buying a van and paying the salaries of employees for a defined period of time.
Therefore the key areas where we intend to spend our start-up capital on are;
- Total fee for registering Kaboosh Tech in the United States of America – $750
- Obtaining of the necessary licenses, permits, accounting and customer software as well as other legal expenses – $2,250
- Insurance policy (general liability, workers’ compensation and property insurance) – $2,000
- Leasing of a facility for use for at least five years and carrying out renovations – $100,000
- Cost of hiring a business consultant – $2,000
- Operational cost for the first 3 months (salaries of employees and payment of utility bills) – $150,000
- Other start-up expenses which includes (virus detection software, bug tracking, anti-viruses, software subscription and cable broadband) – $15,000
- Marketing promotion expenses (general marketing expenses and promotion activities towards the grand opening ceremony of Kaboosh Tech – $5,000
- Administrative expenses (stationery, phone, computers, printers, furniture, business cards, office supplies, and stamps) – $30,000
- Cost of purchasing an official fairly used van – $20,000
- Cost of launching a website – $1,000
- Cost of throwing a grand opening party – $5,000
- Miscellaneous – $8,000
From the above analysis, it is apparent that we need an estimate of $341,000 if we intend to start and run a standard and successful business here in Mountain View – California. It should be noted that the bulk of the capital will go into leasing a facility for a period of five years, paying the salaries of employees as well as utility bills for a period of three months, purchasing a van for official errands as well as getting the necessary equipment to start our cyber security business here in Mountain View – California.
Generating Funding/Startup Capital for Kaboosh Tech Business
Kaboosh Tech is fully owned and run by Mr. Kab Oshe. Due to the fact that we do not intend to seek for an external investor to be part of our business, we will therefore source for funding from other sources. The following are the different areas where we intend to source our start-up capital from;
- Generate part capital from personal savings and sale of stocks
- Source for part capital from online crowdfunding sites
- Apply for loan from commercial bank
N.B: We got the sum of $100,000 from our personal savings and sale of stocks. We registered in a crowdfunding site and were able to generate the sum of $100,000 for our cyber security business. We have been able to secure the sum of $141,000 from our commercial bank after signing several documents. The loan is to be repaid in 7 years at the rate of 3% per annum.
Cyber Security Business Plan – Sustainability and Expansion Strategy
Ensuring that our business not only exists but is sustained for as long as we want to remain in business is a priority to us and we have therefore concentrated on the factors that we know will enable us sustain and expand our cyber security business here in Mountain View – California. The factors that we intend to concentrate on are ensuring that we build the right business structure, engage in effective publicity and advertising strategies, as well as ensure that we retain a high percentage of our clients.
Finally, we understand that without our customers, our business is going to fail, and so we pay a high amount of attention to our customers. We understand how important they are to our business and we will ensure that all employees adopt an excellent customer culture.
- Business Name Availability Check: Completed
- Business Registration: Completed
- Opening of Corporate Bank Accounts: Completed
- Securing Point of Sales (POS) Machines: Completed
- Opening Mobile Money Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Conducting Feasibility Studies: Completed
- Generating capital from family members: Completed
- Applications for Loan from the bank: In Progress
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents and other relevant Legal Documents: In Progress
- Design of The Company’s Logo: Completed
- Graphic Designs and Printing of Packaging Marketing/Promotional Materials: In Progress
- Recruitment of employees: In Progress
- Creating Official Website for the Company: In Progress
- Creating Awareness for the business both online and around the community: In Progress
- Health and Safety and Fire Safety Arrangement (License): Secured
- Opening party/launching party planning: In Progress
- Establishing business relationship with vendors – wholesale suppliers/merchants: In Progress
- Purchase of trucks: Completed