New Business Development, By Richard Garrity- 2013

A comprehensive guide to
New Business Development
Methods and strategies to
winning the customer for life
By, Richard Garrity

This presentation is proprietary
information and can’t be copied or
reproduced in any fashion without
consent from the publisher owner,
Richard Garrity

This comprehensive guide to
New Business Development has
been developed and geared toward
the contract corporate security
bidding process as well as
methods & strategies to winning
the customer for life and insuring
long term client retention.

4
Business Quote of the day:Business Quote of the day:

Business Quote of the day:Business Quote of the day:
““A business absolutelyA business absolutely devoteddevoted
to supreme service and superiorto supreme service and superior
customer service will only havecustomer service will only have
one worry aboutone worry about profits.profits. TheyThey
will be embarrassingly large”…will be embarrassingly large”…
Henry FordHenry Ford

6
A growing demand for Service:A growing demand for Service:

A growing demand for ServiceA growing demand for Service
Private securityPrivate security officers have outnumberedofficers have outnumbered
police officers since thepolice officers since the 1980’s,1980’s, predating thepredating the
heightened concern about security brought onheightened concern about security brought on
by the September 11, 2001, attacks. The moreby the September 11, 2001, attacks. The more
than 1 million contract security officers, andthan 1 million contract security officers, and
an equal number of security staff estimated toan equal number of security staff estimated to
work directly for U.S. corporations, is muchwork directly for U.S. corporations, is much
greater than the nearly 700,000 sworn lawgreater than the nearly 700,000 sworn law
enforcement officers in the United States.enforcement officers in the United States.

The trend and increased demand for privateThe trend and increased demand for private
protection officers began in the mid to lateprotection officers began in the mid to late
1970’s1970’s and grew exponentially well into theand grew exponentially well into the
1980’s.1980’s. This growth in asset protection was inThis growth in asset protection was in
large part due to the explosion of mid & highlarge part due to the explosion of mid & high
rise office towers across the nation thatrise office towers across the nation that
necessitated the need for more corporatenecessitated the need for more corporate
security personnel. Obviously aftersecurity personnel. Obviously after 9-11,9-11, thethe
demand for security services sky rocketed.demand for security services sky rocketed.

FromFrom 19801980 toto 20102010 for both totalfor both total
employment and employment withinemployment and employment within
contract firms, there was an increasecontract firms, there was an increase
of aboutof about 80%80% in the number ofin the number of
employees. However, most of thisemployees. However, most of this
growth occurred during thegrowth occurred during the 1980s1980s
andand 1990s,1990s, with limited to no growthwith limited to no growth
over the past 5-10 years.over the past 5-10 years.

Moreover, sinceMoreover, since 19971997 aboutabout 60%60% ofof
private security officers have beenprivate security officers have been
employed by a contract security firm.employed by a contract security firm.
This implies that the remainingThis implies that the remaining 40%40%
are proprietary security officers. Ofare proprietary security officers. Of
this remaining 40%, a large portionthis remaining 40%, a large portion
of that is proprietary retail.of that is proprietary retail.

Size, scope, and status of the
U.S. Contract Security Industry

Size of the U.S. Contract Security IndustrySize of the U.S. Contract Security Industry
TheThe contract security industrycontract security industry has beenhas been
striving for many years to elevate howstriving for many years to elevate how
it’sit’s
perceived in theperceived in the public opinionpublic opinion
marketplace and it has made greatmarketplace and it has made great
progress in this endeavor, in spite ofprogress in this endeavor, in spite of
Hollywood making movies like “PaulHollywood making movies like “Paul
Blart: Mall Cop” and “Night at theBlart: Mall Cop” and “Night at the
Museum” that painted unflattering,Museum” that painted unflattering,
demeaning pictures of security officers.demeaning pictures of security officers.

The contract security officer of todayThe contract security officer of today
tends to betends to be better educated,better educated, betterbetter
trained,trained, and in several areas, moreand in several areas, more
qualified to handle the security functionsqualified to handle the security functions
demanded by the company’s customers.demanded by the company’s customers.
This didn’t happen overnight – it’s theThis didn’t happen overnight – it’s the
resultresult of efforts on the part of the ownersof efforts on the part of the owners
that want their company to be a trulythat want their company to be a truly
professional security organization.professional security organization.

National security organizations such asNational security organizations such as
NASCO andNASCO and ASIS InternationalASIS International as well as theas well as the
many state agencies and organizations aremany state agencies and organizations are
working together to create legislation andworking together to create legislation and
best practices procedures for the industry.best practices procedures for the industry.
The general public also demanded thisThe general public also demanded this
change, but there are still seriouschange, but there are still serious
improvements that need to be, and areimprovements that need to be, and are
being, made in the security industry.being, made in the security industry.

There are approximatelyThere are approximately 6,0006,000 individualindividual
companies that employ more than 100companies that employ more than 100
contract security personnel and anothercontract security personnel and another
approximatelyapproximately 20002000 companies thatcompanies that
employ less than 100 contract securityemploy less than 100 contract security
personnel in the United States. Thispersonnel in the United States. This
according toaccording to Robert H. Perry & AssociatesRobert H. Perry & Associates
who has been compiling data on contractwho has been compiling data on contract
security agencies for almost 25 years.security agencies for almost 25 years.

TheThe Freedonia GroupFreedonia Group- in October- in October
of 2008, indicates that the U.S.of 2008, indicates that the U.S.
Contract Security Guard marketContract Security Guard market
waswas $22.150 Billion$22.150 Billion in 2007 andin 2007 and
was expected to grow towas expected to grow to $28.9$28.9
BillionBillion by 2013 – aby 2013 – a 5.5%5.5% annualannual
growth rate.growth rate.

This same report puts theThis same report puts the
worldwide security guard/worldwide security guard/
officer market in 2008 asofficer market in 2008 as
approximatelyapproximately $38-40 Billion,$38-40 Billion,
which means the US marketwhich means the US market
alone is overalone is over halfhalf the size ofthe size of
the world market.the world market.

Most industry experts are saying thatMost industry experts are saying that
today’s contract security market, to includetoday’s contract security market, to include
only traditional standing security officeronly traditional standing security officer
services, is in theservices, is in the $20 Billion$20 Billion range and isrange and is
growing aroundgrowing around 5% per year.5% per year. Much of thisMuch of this
growth is coming from an increase in billinggrowth is coming from an increase in billing
rates to companies with existing securityrates to companies with existing security
services (services (unionizationunionization-- cost of livingcost of living) and) and
the sharp rise in new commercialthe sharp rise in new commercial
development, both urban and suburban.development, both urban and suburban.

Companies looking to cut costs areCompanies looking to cut costs are
increasinglyincreasingly eliminatingeliminating theirtheir in-in-
househouse security program and usingsecurity program and using
contract securitycontract security companies.companies.
Typically, in-house securityTypically, in-house security
employees will have a higher payemployees will have a higher pay
scale due to long term tenure withscale due to long term tenure with
the company and expensivethe company and expensive
retirement benefits.retirement benefits.

ByBy contracting outcontracting out the securitythe security
function by these in-house proprietaryfunction by these in-house proprietary
programs, companies are getting betterprograms, companies are getting better
trained security personnel (and accountable)trained security personnel (and accountable)
in many cases, for less total outlay. Althoughin many cases, for less total outlay. Although
the company is probably paying more for thethe company is probably paying more for the
contracted officer in terms ofcontracted officer in terms of hourly billing,hourly billing,
they arethey are devoiddevoid of paying payroll taxes,of paying payroll taxes,
healthcare, retirement, and other incentives.healthcare, retirement, and other incentives.
Not to mention the burden of liability is nowNot to mention the burden of liability is now
exponentially diminished.exponentially diminished.

A prime examples of this trend fromA prime examples of this trend from
proprietary to contract service was theproprietary to contract service was the
massive transition to contract securitymassive transition to contract security
services by defense systems giantservices by defense systems giant RaytheonRaytheon
Network Centric Systems in 2011, the currentNetwork Centric Systems in 2011, the current
transition to contract security operations bytransition to contract security operations by
Fidelity InvestmentsFidelity Investments in the Boston region,in the Boston region,
and the transfer of manyand the transfer of many federal prisonfederal prison
correction officer duties in the 1980’s.correction officer duties in the 1980’s.

It is believed that the in-house securityIt is believed that the in-house security
market is presently in themarket is presently in the $16 Billion$16 Billion range,range,
with a large chunk of this being retail. As morewith a large chunk of this being retail. As more
companies presently utilizing in-house securitycompanies presently utilizing in-house security
programs are faced with rising employmentprograms are faced with rising employment
taxes and the challenges of thetaxes and the challenges of the AffordableAffordable
Care Act,Care Act, it’s expected that the moveit’s expected that the move
from in-house to contract security mayfrom in-house to contract security may
dramatically increase. That is a huge newdramatically increase. That is a huge new
business bonanza waiting to bebusiness bonanza waiting to be tapped!tapped!

Total Number of Private Security Officers andTotal Number of Private Security Officers and
Contract Security Officers in the United StatesContract Security Officers in the United States
by Data Source,by Data Source, 1980–20091980–2009

Defining new business development:

Purpose and definition:
Business development plans
provide guidance to organizations
in purpose, including mission,
vision and values, as well as
product or service, target audience
and the strategies they will use to
achieve long term success.

Pillars of Customer Service:
If you can prevent 5% of
your customers from
leaving, you can increase
your bottom line profit by
25-95%. This research by
Harvard Business Review,
is indisputable-

 The average American business loses
15% of it’s customer base each year.
 68% of customers who stop buying
from one business and go to another
will do so due to poor, inferior, or
indifferent service.
 82% will go somewhere else because
of a specific customer service issue.
- U.S. News & World Report

Develop a Customer Service Mission Statement:

 Clearly convey your company’s specific
objectives as they relate to customer service.
 Your mission statement in theory, should be
dedicated to building an organizational
perspective of what WOWING the customer is
truly about.
 Communicate your mission statement with
customers and employees. All to keep the
mission alive as well as communicate it’s
successes.

Goals, Objectives, Strategies, Tactics

Goals are high level and indicate
what the business development
plan is designed to accomplish in
a broad, general sense.
Objectives are more specific and
include clear, measurable
outcomes and timelines.

Strategies indicate how the company
will accomplish its objectives by
leveraging its strengths and
opportunities, and overcoming its
weaknesses and threats.
Tactics are operational and indicate
exactly what the company will do to
achieve its strategies.

The purpose of this presentation is to give a
general but detailed plan on how to properly
present proposal bids to new business clients
within the security industry and effective
measures on long term client retention in
that said industry. More often than not,
securing new business contracts can be quite
the challenge as sometimes the only
opportunities for new business are when a
company has put their services out to bid.

A comprehensive analysis of proper
liability insurance selection shall also
be reviewed. This particular aspect of
this presentation is vital in your new
services contract as improper
insurance limits and claims for
damages, especially after the contract
or policy has expired could be
financially devastating to the long term
business viability of the company.

This power point presentation will examine many
aspects of the new business security services
proposal, but can’t possibly outline all of them. It
has been created as a guide to new business
development managers, branch mgt., and even to
some degree, security account managers and or
directors. It is not meant to directly alter, replace, or
revise any segment of your new business
development programs, but merely to give a “fresh
perspective” of various sections of the process that
could contribute in the desired outcome.

The new business process:
When a security services company
does have the opportunity to bid on
new service contracts, there are
usually two critical & primary factors
that determine weather they win the
bidding process. One crucial factor
they control and one they do not
control. Generally, the awarding of
new business is based on the bid
itself, the lowest bid. That is the nature
of the process and it can’t be
controlled or foreseen.

The second factor is the presentation or
the written proposal itself. That you
control. If you have found yourself in
front of a potential new client and are
giving a presentation of security services
and products that you want that client to
purchase, what makes you stand out
from the rest of your competitors? Why
should they choose you, over the others?

“Why should we choose you”.
Clearly define in your proposal
and or presentation why you’re
the company to be chosen over
the others? What makes you the
best selection?

The five most important principles to security
industry business clients that contract guard
services are the following:
 Cost of doing business
 Quality of personnel
 Reducing costly liability
 Reducing staff turnover
 Safety Prevention
That for the most part is their primary
concerns when contracting services.

For the most part, in this industry, the productFor the most part, in this industry, the product
we are selling to our clients, are realwe are selling to our clients, are real people.people.
That in itself, can be quite costly toThat in itself, can be quite costly to insure…insure…

Proper insurance premiums and coverageProper insurance premiums and coverage
selections are vital company survivalselections are vital company survival choices.choices.

Liability Insurance Guidance
Security service providers can be sued
long after the work or contract is
completed, and can be found liable even
though they may no longer be providing
services to that client, even if they sold
their business or retired. If a covered
incident occurs during the time period
when your insurance is in effect, do you
want to be sure that it will be covered
regardless of when the claim is filed?

If you purchase the right
kind of liability policy, you
will have the comfort of
knowing that your risk will
be covered long after your
policy expires.

Although all security officers perform many
of the same duties & procedures, their
specific duties vary with whether the guard
works in a ‘static’ security position or on a
mobile patrol. Officers assigned to static
security positions usually serve the client at
one location for a specified length of time.
These officers must become closely
acquainted with the property and people
associated with it and must often monitor
alarms and closed-circuit TV cameras.

In contrast, guards or security officers
assigned to mobile patrol duty drive or
walk from location to location and
conduct security checks within an
assigned geographical zone. They may,
in extreme circumstances, detain or
arrest criminal violators, answer service
calls concerning criminal activity, solve
site problems, and issue traffic violation
warnings.

The difference between static
posts and mobile patrols can
have a substantial pricing
difference in your liability
insurance premiums.

Private security is essential to ensuring the
security and safety of persons and property,
as well as intellectual property and sensitive
corporate information. Private security
officers are responsible for protecting many of
the nation‘s institutions and critical
infrastructure systems. Security personnel are
frequently faced with dangerous and
potentially deadly situations as well as
confrontations with no firearm.

Security officers work in many different
diverse and challenging environments.
Assignments range from:
Office buildings, retail & mall
shopping centers, museums,
factories, laboratories, government
buildings, data processing centers,
universities,

sports stadiums crowd control,
residential communities, air, sea, and rail
terminals, banks, and hospitals to name
just a few. Security personnel have also
been utilized by local municipalities like
Seattle, San Diego, and Miami Metro
Dade County to conduct armed
“policing” duties on their light rail
commuter transportation networks.

Occurrence Forms vs.
Claims-Made Policies

Occurrence Forms vs. Claims-Made Policies
First, make sure your policy is written
on Occurrence Forms and not a Claims-
Made policy. This is critical.
Business insurance policies are often
offered in two forms. One is the Claims-
Made policy and the other is the
Occurrence Forms policy. Before
agreeing to purchase business
insurance, you should understand the
differences between the two types of
policies.

Claims-Made policies provide coverage for
claims made in the period the policy is in
force. Claims-Made policies provide coverage
only so long as the insured continues to pay
premiums for the initial policy and any
subsequent renewals. Once premiums stop
the coverage stops for any claims not yet
known or made to the insurance company
during the coverage period.

What this means to the business
owner is that there is a risk of an
unknown or unreported claim being
made long after the contract period
is over, and it not being covered
because the claim was made outside
of the coverage period.

To continue coverage after the coverage
period has ceased, the business owner must
purchase a "tail". Tail coverage (or an
Extended Reporting Endorsement) is an
endorsement that extends the claims
reporting period after the contract service
has ended. Tail coverage must be purchased
to continue any risk protection afforded
under the policy. Tail coverage can be
expensive and can prove to be an
unaffordable expense when winding down.

An Occurrence policy protects you against incidents
that occur while the policy is in force, regardless of
when the claim is reported.
• Here is an example: Let's say that you purchased an
Occurrence policy in 2000, and discontinued the
policy in 2007. A Claimant you were following (on
surveillance) in 2005 files an Invasion of Privacy
claim against you now. Because the claim occurred
while the policy was in force, you're able to report
the claim now for that 2005 incident.

An Occurrence policy automatically
protects you both now and in the future
for any incidents that occurred while
you were a policyholder.
This means that you can report claims:
• During the current policy year, and
• After your policy has ended.

The premium cost: Claims-Made policies are
much cheaper than Occurrence policies. The
premium difference can be as much as 35-
50%. The coverage amount: Under an
Occurrence policy, coverage is the amount
of coverage under the policy in the year of
the occurrence. This means that, while you
have coverage, it will probably be lower
than your current limits.

Coverage limits carried in the past
are usually lower than current
coverage limits because they do
not take into account inflation,
claims costs, and the growth of
your business. A Claims-Made
insurance policy covers you at the
level of insurance you have when
the claim is made.

An Individual Policy covers only one person
or one company (and its employees). The
person or company purchases the policy
themselves from an insurance broker.
With a Master Policy, a number of
individuals or employees with at least one
shared characteristic band together and
collectively purchase a single policy. To
obtain the insurance, you may be required
to belong to an association and pay a fee.

The association retains the Master
Insurance Policy, which covers the people
who belong to the association. The Master
Policy General Liability Insurance serves as
the model for the policy covering each
member of the association. Generally, the
insurance company charges fees based on
the demographic composition of the group,
rather than each individual's characteristics.

Master policies:
In some cases the cost of
insurance under a Master Policy
plan is lower than for individual
policies due to lower acquisition
and administrative expenses.
However, certain conditions can
cause nasty surprises. Drawbacks
of Master Policies:

Master policies:
• The association can cancel the Master
Policy at any renewal time, leaving the
group association members uninsured.
• Should a large claim be submitted to
the association holding the Master
Policy, the insurance company could
cancel the Master Policy, leaving the
members without insurance coverage.

Master policies:
• Although some Master policies do offer per-
member limits endorsements, other Master
policies have a cap on the liability limits
they will pay out on claims for the entire
association. In some cases we have seen
the total liability capped at as little as
$5,000,000 for the association and its
members. Just think, if five members each
file a claim for $1,000,000, then the entire
association would have no more coverage.

Commercial General Liability
• The Commercial General Liability (CGL) policy is a
modular policy that can simultaneously provide
several types of coverage: bodily injury and
property damage liability; personal injury and
advertising injury liability; medical payments; and
(as applicable) products / completed operations
coverage. Coverage is provided for most of the
premises, products, completed operations,
personal injury, advertising, and contractual
liability exposures of an organization. The CGL
offers very broad coverage that can be narrowed by
endorsement when necessary.

Errors and Omissions
• Errors and Omissions (E&O) insurance
provides coverage for damages arising out of
the insured's negligence, mistakes, or failure
to take appropriate action in the performance
of business or professional duties. The
coverage frequently carries a high deductible
($1,000 or more) and usually does not require
the insured's consent to settle claims (unlike
professional liability insurance - a term
sometimes used interchangeably with errors
and omissions).

Errors and Omissions
• There are a wide variety of
errors and omissions coverage
forms including those
designed specifically for
Private investigators, Security
providers and Low Profile
Executive Protection.

Excess Liability
Excess Liability insurance coverage is
written in "excess" of primary
insurance. It is intended to increase the
total limits of liability, providing a form
of catastrophe coverage. Excess liability
coverage does not respond to a loss
until the amount of the loss exhausts or
exceeds the policy limits of any existing
primary policies.

Excess Liability
For example, consider if a primary
liability policy with a limit of $1 million
is written, and excess insurance is
written for $3 million excess of the
primary. The primary policy would pay
all losses within $1 million and the
excess policy would pay losses in excess
of the primary coverage, up to the
excess policy limit of $3 million.

Premises Liability Claims:
A premises liability claim involves an
injury to a person who is on the
property of another. Premises claims
include slip & falls, random injuries,
criminal attacks, false arrest & unlawful
detention, and other similar actions. A
property owner is not liable simply by
virtue of the incident occurring on it’s
premises. When is there liability for the
claimant’s injuries?

Liability is determined by the laws and
procedures of the state in which the injury
occurred. In some states, the court will focus
on the status of the injured visitor in
determining liability. In other states, the
focus will be on the condition of the property
and the activities of both the owner and
visitor. However if injuries were sustained
due to say, the person was heavily
intoxicated or was trespassing, then their
claim for damages is very weak at best.

The security services provider would be very
limited in any such claims for premise liability
damages. The building owner and or property
mgt. company has the burden of liability in
these legal matters. One of the few
exceptions to this would be the false arrest or
unlawful detention of an individual who
clearly should not have been held against
their own free will. Equally, the building
owners would not have premise liability for
such incidents & actions.

Potential new business clients and current
clients “love” to hear about safety prevention
programs. Of all the topics you can address
during the new business proposal, safety is one
of the best areas to focus on during the bidding
process. All clients, potential and current, worry
about accidents at their business because of the
costly liability and loss of productivity
associated with workplace accidents. Your
commitment to creating the safest environment
possible must be stressed in the written
proposal and or during the presentation.

Safety Prevention sells clients

“Field Site Inspections”
Some security services contracts in order
to secure new business will offer what we
call “value adds”. These are little perks to
the new or existing clients that
demonstrate your appreciation of the
business relationship. Value adds can
range from the occasional lunch treat to
no charge site safety assessments. An
example would be like a complete CCTV
camera audit of the facility to determine if
additional units should be installed in vital
areas lacking adequate monitoring.

Another important “value add” is the off-
hours “field inspection”. In many cases this
is a big selling point to potential new
business clients. Some contracts even
require field inspections of the site and
security personnel. If you introduce the
notion of field inspections to your business
plan, try at all costs to not write in stone
definitive daily or weekly inspections.

The reason being, sometimes it is impossible
to stick by a firm schedule. This could be due
to the field officer responding to other site
needs or emergencies, call outs, and other
unforeseen factors that may prevent them
from abiding by a set schedule of any one
particular site inspection. So in spirit, if
financially feasible to your district operation,
always insert some type of language that
field inspections will be made, perhaps on a
weekly basis.

When making an in-person
presentation to a potential
new client or in written
proposal form, do not make
the following claim:
“We only recruit and hire the
best people”.

That is a fatal mistake and any seasoned
potential client is going to know the
difference. The bottom line is, no matter
how great your company is, no matter how
well managed it is, you simply can’t control
who walks in your front door to fill out an
application. The people walking thru your
front door are the same ones walking thru
your competitor’s front door. It is a fact of
the industry we work in.

Because we the security providers are at
the mercy of the client billing rate, it is a
challenge of epic proportions to say the
least to find the best and most qualified
personnel for the clients we serve. But it is
not impossible, time consuming maybe, but
not impossible. A security organization
totally committed to quality, service, and
client satisfaction will develop methods to
cultivate the best personnel required.

When making your sales pitch to a new
potential client, certainly stress that
your committed to recruiting only the
best personnel possible, but do not
make the assertion that you
unequivocally only hire the best
qualified people because that will come
back someday to haunt you. Like I stated
previously, they know the difference.

Some of the most effective sales
strategy and new business action
plan you can deploy when
presenting your proposal for
security services are several key
factors that property managers
and new business clients want to
be sold on. They are:

1. The competent mgt. personnel who
will be managing front line officers.
2. The initial training & safety program
3. Direct supervision, development, and
site documentation verification.
4. Reducing personnel turnover
5. Enhanced training- refresher training.

What is outlined in your proposal
to reduce turnover rates?

What is the general strategy to
improve service over the existing one?

Those are some of the key
components that sells to a new
client. New & existing clients are
rather simple in their thinking, most
of them want inexpensive service
rates but superior performance
from personnel assigned to their
building facilities.

It can be done. It is all about-
training+ supervision+
development. You can’t fail if
you stick to that formula.

“Devise a successful formula
that works and stick by it”

“Training defines your image”

Yes. Training is
knowledge and what we
teach them is what leaves
with them when they are
ready to for their new site
assignment.

“The uniform defines your company”

“The uniform is your company”
When providing security services
for your new or current client base,
uniforms is an integral part of the
new business equation. For many
new client property managers, the
uniform is almost as important as
the person filling that uniform.

The uniform is the person
and the person is the uniform.
They must compliment each
other. Clients are not only
hiring real people, they are
hiring uniforms as well.

Well dressed security personnel can make a
client’s building or facility truly stand out.
Weather it be the hard police style uniform or
the corporate security style, the uniform
makes a statement and speaks volumes
about the officer filling it and the company
that he or she represents, and that is key,
“represents”. That uniform represents the
client and the contract company.

When making your presentation bid and
your in front of the client, bring perhaps an
assistant who will be dressed in one of your
uniform styles selected for that site, or
simply bring a brand new example of the
uniform so the potential client can have an
idea of just how sharp they will look on their
site. If your only submitting a written bid,
make sure color illustrations of your uniform
are part of the proposal.

The “RFP”- Request for Proposal

Prove you’re the only choice

The RFP is a type of bidding solicitation in
which a company or organization announces
that funding is available for a particular
project or contract service, and companies
can place bids for the business service. The
Request For Proposal outlines the bidding
process and contract terms, and provides
guidance on how the bid should be
formatted and presented. A RFP is typically
open to a wide range of bidders, creating
open competition between companies
looking for work.

The contract proposal should contain, at
a minimum, the following key points:
1. The contract cover page
2. The introduction page
3. The company history
4. The executive summary- objective
The objective of the security coverage
needs and additional staffing as need.

The Opportunity:
Contracting with our company to provide
security services will meet the following
goals of the new client’s facility:
1. State a pivotal goal

The Solution:
Our security services company is one of the leading
suppliers of security services within our region. We
have a well established training program for
security officers that can be customized to meet
the needs of your facility. Our company
consistently maintains a large pool of qualified
security officers, and so we possess the capability
of scheduling standard base building security
personnel as needed, and to handle a variety of
unforeseen situations and events.

Recommendation #1:
The new client management should
meet with the security services
provider to discuss site needs,
direct solutions, and address any
special personnel requirements the
client management may have.

Recommendation #2:
Client management should
finalize a one to three year
contract with the security
services provider, with options
to renew for future years.

Recommendation #3:
After signing the contract, the
security services provider will
immediately review available
candidates, develop training
materials as needed, train, and
place guards in new assignments at
the client site.

Recommendation #4:
Side Note: There should be clear contract
language stating the time frame when new
security personnel should be placed.
Generally, 30 days notice to comply with
new personnel to be deployed at the client
site is the industry standard. However,
sometimes a new client has extreme needs
to have immediate coverage, say in 2 weeks.

Cost Summary:
This section will detail billing rates for all
security personnel and special rates:
1. Billing rate- standard security officer
2. Billable O/T rate- security officer
3. Billing rate- shift supervisor
4. Billable O/T rate- shift supervisor
5. Billing rate- site supervisor or manager
6. Billing rate- agreeable holiday schedule based
on time and a half calculations

Cost Summary:
Standard Disclaimer: The prices shown
above are valid for one year (or three)
from the time of contract agreement.
New costs will be determined each
year and a new contract must be
signed each year. The security services
provider pays for all training,
supervision, employee benefits, and
insurance costs for its workforce

Site training:
Your security services contract should detail
the following training site objectives:
• On-Site Training
All security personnel will be thoroughly
oriented on-site as to the specific locations
and building layouts and potential security
issues of the different areas of the site.
• Off-Site Training
All security personnel will be trained in
proper procedures and expected behavior
standards during the training course.

Site training:
• Printed Manuals
The security services provider will develop a
training manual (SOP) for all security
personnel assigned to the client site.
• Fast Track Training
Experienced security personnel will receive
concentrated training and orientation so
that they may assume their responsibilities
at the client site as soon as possible.

>Training Plans REDUCE Liability<

Coordination efforts:
Unarmed security officers cannot
handle every situation on their own.
The security services provider will put
in place procedures with other law
enforcement and associated agencies
and train all personnel to coordinate
with those agencies on how to deal
with certain extreme situations beyond
their scope of authority or control.

Supervision of staff:
• Random checks by the security
services provider’s supervisors of the
client site to ensure that all staff
members on duty, are performing as
expected, and uniformed.
• Availability and willingness of security
management to take comments and
complaints on our service and follow
up on them.

• A surprise drop-in inspection by
our supervisory staff can happen at
any time and during the course of
any shift or special event. During a
check like this, all security
personnel will be observed,
evaluated, and daily reports
inspected.

 Immediate correction of all service
related problems and viable
solutions.
 Availability of the security services
provider management to handle
scheduling issues, including
emergency situations.

 If an issue is determined to be a
lack of training or a
misunderstanding, guards will be
instructed in correct behavior and
put on probation. A repetition of
problem behavior will result in
immediate replacement of that
security officer or supervisor.

• A supervisor or manager from the
service provider is on call 24 hours a
day, seven days a week, to coordinate
with client management and handle any
situation as it arises. The security
services provider is dedicated to training
and supervising our staff to provide
superior service to our clients.

“Keeping valued customers”

There are usually three primary factors why
a security services contract is lost or put out
to bid. They are:
1. The current client is looking for a cheaper
billing rate. There are many reasons for this,
which is generally linked to budget
constraints and not linked to the performance
of the current services provider in any way
shape or form. Sometimes, regardless of great
service, it is all about the numbers for some.

2. Client dissatisfaction or they have
simply grown bored or uninterested in
current security services provider.
3. Turnover rate of personnel. Nothing
can be more of a “contract killer” than
consistently high turnover of staff
personnel. Constant turnover is a
business problem for both parties.

Focusing on the turnover rate:
4. Clients and or property managers do
not like to see a different person at any
given post change weekly or monthly.
High turnover rates alarm clients because
if you have new personnel constantly
changing hands, then that can lower the
standard of quality and put your security
program at risk.

When the site is lacking in seasoned long
term officers who know the site and it’s
procedures all too well, but instead
stacked with new hires all the time, that
can be more than detrimental to the
entire security program and the
operational objectives. Clients really do
want reasonable longevity from their
site assigned personnel.

It is of course quintessentially and
economically viable for the security services
provider to have a low turnover rate of it’s
staff personnel. The cost benefits of lower
turnover for the security services provider
can for some pretty much “make” or “break”
the district’s profit margin and it’s business
viability. Profit margins in this industry can be
thin and marginal to begin with, so high
turnover rates can substantially reduce those
thin profit margins even more.

The financial impact of high turnover rates
can be damaging. Factors to consider:
1. Simply preserving & protecting your
business reputation. People do talk.
2. Uniform allotment. Can become costly in
terms of replacing or constantly cleaning.
3. The cost of training new personnel.
4. The cost of running background checks.

5. The cost of non-billable 8, 16, or 24
hour standard OJT new site training.
6. The indirect cost of the branch mgt.
personnel who are processing new hires.
7. The direct or indirect financial impact
of constant advertising for new staff.
8. Recruiting costs. High turnover means
higher recruiting costs.

It of course should be noted that high or
relatively high turnover rates at any given
service account is not always the fault of
the security services provider. Sometimes
there are external & internal factors that
play a larger role in the turnover problem.
That can be attributed to the site itself like
the “location” , “personality conflicts” or
challenges in relation to the client or
certain client team members. Factors that
can’t really be controlled.

Just who is responsible for what equipment?

“Site Security Equipment”
It is standard practice in the security
services contract to, at your direct expense,
provide full uniforms and training of staff
personnel. This will usually consist of
summer & winter uniforms. In rare instances,
the client will provide partial or full
reimbursement for all uniforms. Some clients
(very rare) will have on site uniforms that
they provide and are distributed and
maintained by the security services provider.

Except for uniforms and standard
office supplies, your contract should
reflect items that they are not
responsible for. This is a crucial segment
of your proposal as if site equipment
does fail or needs replacement, it is vital
that standard and professional contract
language is inserted that makes it clear
what the services provider is responsible
for and what they are not.

1. Full uniforms, badges, and accessories
2. General office supplies- maybe site cell phones
3. Rain gear & cold weather gear
4. Flashlights and safety reflective vests
5. Standard Operations Procedures manual
6. Portable space heaters if warranted
7. Company identification cards
The following items that generally the
service provider is responsible for:

Items the contract service provider
is not responsible for:

1. Purchasing or repairs of electronic touring
systems. (GCS, Guard 1, Detex)
2. Purchase or repair of site access control
systems. ( C-Cure 800, Spectrum, etc.)
3. Purchase or repair of site CCTV cameras
4. Purchase or repair of site Motorola radios.
5. Purchase or repair of site computers
service provider is not responsible for:

6. Purchase of any office furniture- chairs
7. Purchase or repair of computer printers
8. Purchase or replacement of HID access control
type cards or FOBS.
9. Purchase or repair of site fire extinguishers
10. Purchase of metal keys or key-boxes
service provider is not responsible for:

Not every security services contract is the
same. They are all different and unique in
their own right, almost like a fingerprint.
Although the previous items listed that
routinely the provider is not responsible for,
is not set in stone. To make things more
efficient some of these items listed may well
be the responsibility of the service provider
but is “billable” to the client with proper
invoicing & documentation attached.

“Client Relations. Client Retention”

Client Relations- Client Retention:
In the grand scheme of things, clients,
client relationships, and client retention
are three of your most critical business
success keys to maintaining your current
business portfolio. The very foundation,
“growth”, and expansion of your business
operation is dependent upon how your
present day operations are managed as
well as your client relations. New business
development is linked directly to your
current business practices.

No client or client site is too
“small” or too big. Every client in
the portfolio is as important as
the other. It does not matter if it
is a 128, 336, or even a 1200 hour
a week account. Every account
has the same equal importance
and should be treated as such.

Do larger accounts like a 1200 hour a
week account be given more attention
and scrutiny? Of course they should,
just by the shear size of such an account
more attention would be warranted.
Large accounts can be high
maintenance and servicing the security
force can be time consuming on all
operational levels.

But that does not mean the 1200
hour a week account is more
important than say the 128 a
week K-Mart detail. Every client
no matter the size, has given you
the opportunity to conduct
business with them and hopefully
earn some healthy profit margins
along the way.

You will never have
“healthy” profits if
you do not have
“happy” customers!!

“Forging new partnerships”

152
The Quarterly Business Review:The Quarterly Business Review:

Quarterly Business Review:
Introducing theIntroducing the Quarterly BusinessQuarterly Business
ReviewReview into your new businessinto your new business
proposals or presentations is anproposals or presentations is an
another dynamic aspect of your overallanother dynamic aspect of your overall
sales pitch to land that tough client. Thesales pitch to land that tough client. The
QBR is another useful tool that conveysQBR is another useful tool that conveys
to the potential or existing client thatto the potential or existing client that
you are totally involved with theiryou are totally involved with their
security services program and want tosecurity services program and want to
bring it to abring it to a higher level.higher level.

TheThe quarterly business reviewquarterly business review is ais a
comprehensive and lengthycomprehensive and lengthy financialfinancial
review of your security program. Thereview of your security program. The
primary focus of this meeting is to bringprimary focus of this meeting is to bring
the client up to date on monthly billing,the client up to date on monthly billing,
billable overtime, added coverage, andbillable overtime, added coverage, and
current staffing needs. Othercurrent staffing needs. Other aspectsaspects ofof
your weekly and monthly reports can beyour weekly and monthly reports can be
integrated into the quarterly meeting.integrated into the quarterly meeting.

The quarterly business review should beThe quarterly business review should be
conducted and created by committee.conducted and created by committee.
TheThe committeecommittee usually consists of youusually consists of you
the manager, the assistant securitythe manager, the assistant security
manager, the district manager, themanager, the district manager, the
senior property manager, and the juniorsenior property manager, and the junior
property manager. All final drafts on theproperty manager. All final drafts on the
quarterly review should bequarterly review should be approvedapproved byby
your district manager, first.your district manager, first.

Your financial report shouldYour financial report should
contain the following:contain the following:
1.1. Weekly standard billable hoursWeekly standard billable hours
2.2. Weekly billable overtimeWeekly billable overtime
3.3. Weekly non-billable overtimeWeekly non-billable overtime
4.4. Weekly added coverage- you mustWeekly added coverage- you must
differentiatedifferentiate between client and tenantbetween client and tenant
requests for additional coveragerequests for additional coverage
5.5. Training hours- billableTraining hours- billable
6.6. Training hours- non-billableTraining hours- non-billable

Your financial report should contain:Your financial report should contain:
7. Monthly price sheets to verify officer7. Monthly price sheets to verify officer
wage rates (if applicable)wage rates (if applicable)
8.8. Invoice Aging Report-Invoice Aging Report- for receivablesfor receivables
overover 60 days60 days
9. Potential over billing9. Potential over billing
10. Resolution to client complaints10. Resolution to client complaints
concerning disputed billable OTconcerning disputed billable OT
11. Monthly & quarterly totals of11. Monthly & quarterly totals of
your weekly calculationsyour weekly calculations

1.1. Security staffing concernsSecurity staffing concerns
2.2. Poor performance by somePoor performance by some
3.3. Equipment failures on the property,Equipment failures on the property,
like broken cameras or the need forlike broken cameras or the need for
more of them.more of them.
4.4. Discussion of serious incidentsDiscussion of serious incidents
5.5. Ways to reward personnel who areWays to reward personnel who are
doing andoing an outstandingoutstanding jobjob
6.6. Site equipment/ repairSite equipment/ repair invoicinginvoicing
The quarterly business review is also a good
time to address and discuss the following
operational topics:

159
The Quarterly Business Review:The Quarterly Business Review:

160
During your QBR, the client will haveDuring your QBR, the client will have
questions.questions. Make sure you haveMake sure you have answers.answers.
The right ones.The right ones.

Are your current clients, all of
them, raving fans? Are they?

Or this? If your getting body language
like this, your program is in big trouble~

I have found that one of the most common
and business ending practices a security
contract company can make is, neglecting
the client. Not maintaining communication.
Not properly following up to serious
incidents. Not updating them. Nothing
agitates a property manager more, than poor
communication lines from the very service
providers they are paying for.

In some instances, where maybe the
account is running smooth with no
complaints, regional and or district managers
can get complacent and lose touch with their
client account customers. This is a bad habit.
No matter how smooth any given account
maybe running, no matter how efficient any
given account manager maybe, branch mgt.
should always maintain regular contact with
client managers.

Clients have a need to feel important and
appreciated. They thrive on constant
feedback and attention to their property.
When they feel they are not getting the
attention they deserve, they simply contract
with someone else who can fulfill their needs.
In your new business proposal, there should
be a clause that you will meet, maybe once a
month to discuss site security operations.

If you do not see the need to insert specific
language to include a weekly or monthly
operations meeting with the new potential
client, then certainly suggest verbally during
your presentation or contract negotiations if
you win the service bid. Some clients actually
prefer limited contact if all is going well in
their site program. But always, at least reach
out to them so they know they are important.

The new business presentation tip:
Keep your points short, yet thorough; be
concise, yet engaging. If you crowd your
presentation with too much verbiage, your
potential clients are bound to lose interest
and forget your proposal's selling points. Let
the printed proposal cover the details, while
you state the general and important factors
of your plan, such as how it will be an asset
to your audience and how it is better than
your competitors‘.

Deliver what you're say you're going to do. If
the business can't deliver on basics, then any
other steps will be wasted effort. It may seem
ludicrous, but far too many businesses focus
on ways to keep customers, only to lose sight
of the fact that their product or service simply
isn't what it should be. Make certain that the
core of what you do is deserving of long-term
customer loyalty, and then look for ways to
nurture it.

Client retention and client
longevity is probably one of your
best selling & marketing tools
you have at your disposal. A
superior product or service
always sells itself, always.

What is a Quality Assurance Plan?

What is a Quality Assurance Plan?
The Quality Assurance Plan describes
the strategy & methods the project or
program will deploy to ensure 2
things:
1. That the project is being managed,
developed, and deployed in a sound,
reasonable way.
2. That the project's deliverables are of
acceptable quality before they are
delivered to the project's clients.
(This would be say, a new officer, post orders, etc)

“Do you have what it takes to be my client”

The ultimate goal is winningThe ultimate goal is winning
thethe “customer for life”.“customer for life”.

A pretty simple formulaA pretty simple formula

The opportunities are endlessThe opportunities are endless

Thank you for attendingThank you for attending
today’s presentation~today’s presentation~

New Business Development, By Richard Garrity- 2013

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