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April 8, 2024On the ground, working within the private security industry in South Africa is one riddled with danger and unplanned issues. Back at the office, these dangers take on an entirely new shape, and without the proper backup, things can get challenging.
Private security companies in South Africa are no strangers to risk and, by the industry’s very nature, effective risk reporting and management.
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It’s a day-to-day dance with danger, but it’s a battle already lost if you’re not paying attention to what’s happening behind the scenes. Aside from physical threats, crucial elements of your security company management, from staying competitive to mastering staff administration, need the best care.
With the landscape of private security booming in recent years, there’s no better time to get on top of things, and it all starts right here.
The South African private security industry: At a glance
There’s no denying that the private security industry has been thriving locally for quite some time. In fact, South Africa accounts for the largest private security industry in the world, with more than 10,830 registered companies.
Consisting of a workforce that totals more than 2.5 million security guards, the industry continues to be a driving force behind the country’s economy.
Facing a unique set of potential problems, the South African private security industry is still heavily shaped by the country’s socio-economic landscape — one of high crime rates, constant understaffing, and regular underfunding.
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The demands placed upon the private security services industry are as rapidly evolving as the industry itself. Companies must provide practical, innovative, and progressive security solutions that protect businesses and individuals from theft, vandalism, and violent crime.
The field of benefit is exceptionally vast and taking advantage of the growth within the private security industry has never been more vital. Ensuring your business can scale alongside industry growth while at the same time remaining competitive in an over-saturated sector must be a top priority.
Challenges faced by the private security industry
The future of private security is as promising as ever, but that doesn’t mean it is without its challenges. Successfully operating and elevating your business within the industry means dealing with societal and economic shifts and meeting local regulations.
Thankfully, the extensive demand for improved private security has also given rise to various security management solutions. Aimed at keeping your business running as smoothly as possible, these systems allow you to focus on your primary goal — providing security to your customers.
Dealing with increasing competition
The private security industry is a clear-cut dog-eat-dog world based on a high degree of competition. On the one side you’ll find countless fly-by-night security companies that offer a cheap but substandard service. The other side is dominated by larger private security companies, each going the extra mile to consolidate their positions. The genuine concern is how you successfully claim your part of the market share when there are so many other competitors.
Being able to provide inventive solutions to customer needs not only ensures lasting customer retention but is also a significant part of acquisition. In contrast, your capability to do the above rests on your company’s ability to differentiate itself from the competition.
With so many companies competing for a seat at the table, setting yourself apart based on service quality, technology offerings, and pricing remains a constant process.
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Inadequate cash flow management
At the end of the day, you’re running a business, and just as much as it’s based on providing private security, it’s also based on a stable bottom line. Without a steady cash flow that you can rely on, you’d leave a gap in your business security.
As the industry continues to expand, being unable to invest and fund continued business growth means you’ll quickly get left behind. All of this rests on effectively managing your cash flow and knowing what not to do. Your financial strategy can become a minefield if it’s still reliant on manually managing your accounts, invoices, and payments.
Keep in mind that without effective cash flow management via client payments, your operations are crippled. Without the assurance that funds will be available, delivering optimal security to all your customers can become impossible.
Another consideration is the mitigation of risk. Unless your billing process is as streamlined as possible when dealing with clients, you could open yourself to several problems.
If a client payment fails or is overseen due to human error, that individual or business loses access to your services. Shortly after, a robbery or theft occurs, and you’re in the hot seat to explain why they weren’t protected. This leaves a lasting impression on your brand reputation, which could have been avoided.
If you are ensuring the availability of automated payments via debit orders, invoicing, and account structures within your security business, the result is the elimination of time-consuming admin. It also removes any potential breaks in security coverage, protecting your brand.
Poor mitigation of client expectations
One of the more widely discussed challenges your private security business will face is your ability to provide quality and provable services. Each contract and account your business manages comes with distinct needs and expectations.
Should you fail to predict emerging trends, both in security advancements and client expectations, there’s a possibility of a decrease in customer retention. You have to adapt and successfully manage your client’s expectations while offering them innovation, or lose them to the next company that does.
As harsh as that sounds, there’s never been more importance placed on security companies being able to understand customer needs. This goes hand-in-hand with tailoring services to meet unique needs, resulting in continued and improved customer satisfaction and loyalty.
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Falling behind technological advancements
Technological advancements have undeniably contributed to the growth of the private security industry. And while this is a significantly positive relationship, it does leave you open to potentially falling behind the times if you don’t keep up.
These advancements allow security companies to provide more efficient services, from biometric authentication to robotics, and if you’re not investing in the future, your competition definitely is. This isn’t just a once-off investment either, as your business needs to continually fund upgrades to your infrastructure and skills.
Locally, numerous private security companies are already embracing the future. On the front line of the armed response sector, Oryx Systems & Software is an excellent example. Their approach to integrating emerging tech trends has led them to continued success.
Ineffective staff management
Your staff are an integral part of your business, and within the private security industry, a lot rests on ensuring that your personnel are happy, well-trained, well-equipped, and paid on time.
All of these inherently come with their own challenges, but as one of the foundational blocks of your business, not effectively managing your staff can be disastrous. Should your staff become unhappy or disgruntled because of meagre wages or missed salary payments, they can quickly turn away from work, or be susceptible to bribery.
This could lead to even more unwanted issues. Unfortunately, staff unrest can dent your brand reputation, especially if your cash flow doesn’t allow for a quick fix.
It already doesn’t seem like a winning scenario, and if you consider that it all starts within the administration of your company, it becomes a bit more bleak. On the other hand, straightforward fixes do exist, one of which is an automated payroll system.
Should your employees have different banks with different payment clearing times, you could face growing mistrust. Integrating your payroll system with a salary payment solution ensures you can simultaneously pay everyone at the same time.
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Actionable risk management
As a private security company, your business comes face to face with various risks that are associated with providing personal protection to individuals and companies. But, behind the apparent dangers, there are hidden challenges most don’t consider.
Aside from the day-to-day operational risks, aspects like liability for breaches or failures in security protocols often go unnoticed. Of course, this is just one of many, and without a robust risk management system, you leave yourself at a disadvantage.
Remember that your customers trust that your management systems cohesively work together, preventing potential lapses in providing security services. This is where automation comes into play, eliminating human errors in payments and invoicing, ensuring both satisfied clients and staff.
Finally, remember that while you’re providing physical security to clients, your business also needs to provide the highest level of personal data safety. Without systems in place to eliminate data risks, you stand a chance to lose trust, reputation, and regulatory compliance.
Succeeding in the private security industry | Wrapped up
Going head-to-head with these challenges requires security companies like yours to adopt a strategic and adaptive approach. Your arsenal must include dedication to innovation, customer-centricity, and compliance, ensuring success.
There’s no denying that to succeed within this dynamic and competitive landscape, you need the best backup available.
Backed by over 20 years of experience, more than 500 security businesses trust Netcash to get the job done. Get in touch today to take full advantage of industry-leading payment solutions, top-notch data security, and forward-thinking integrations.
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Author:
Paul Adant
Business Solutions Manager
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Paul has over 30 years experience in banking and the payment industry, he has a passion for translating needs into effective solutions. Cultivating strategic partnerships with integrated software vendors and producing cost effective, efficient and time saving business solutions make him a valuable member of the team at Netcash.
