How To Start A Cyber Security Company In South Africa

How To Start A Cyber Security Company In South Africa

What is a Cyber Security Company?

Computer security, cybersecurity, or information technology security is the protection of computer systems and networks from information disclosure, theft of, or damage to their hardware, software, or electronic data, as well as from the disruption or misdirection of the services they provide

How To Start A Cyber Security Company In South Africa

Get the right professional certifications

Before someone will hire you, they need to trust you to get the job done right. A bachelor’s degree in information technology, computer science, or a similar field is a good indicator you have the skill set to start a cybersecurity or IT-related business.

But degrees don’t provide the real-world experience clients crave. Certifications offer another way to build your credibility and signal your skills are practical and relevant.

Here are some of the most popular cybersecurity certifications available:

  • Certified Ethical Hacker Certification
  • GIAC Security Essentials Certification (GSEC)
  • Certified Information Systems Security Professional (CISSP)
  • Certified Cloud Security Professional (CCSP)
  • CompTIA Cybersecurity Analyst (CompTIA CySA+)
  • ISACA’s Certified in the Governance of Enterprise IT (CGEIT)
  • ISACA’s Certified Information Security Manager (CISM)

While skills and certifications are critical, they are just one element of a successful strategy for starting a cybersecurity business. You must also create a business plan and set it in motion.

Develop a business plan tailored to cybersecurity

A business plan provides a basic blueprint for your business. It should outline your company’s structure, strategy, objectives, budget, and more.

Define your target market and analyze it

Early on, you need to choose the focus of your cybersecurity business.

Some businesses opt to become an authority for a certain field or industry. For example, do you want to target a specific industry, such as finance or healthcare?

Others choose to present themselves in a particular area of cybersecurity. They may want to be known for their deep knowledge of access control or network security regardless of industry. 

This decision should be based on your skill set, but also on a market analysis. If you know the competition, you can identify potential opportunities.

Choose your company’s legal structure

The legal structure of your business is critical. It impacts everything from daily operations to taxes and financial risks. As the SBA explains, here are the five most common company structures:

  • Sole proprietorship
  • Partnership
  • Limited liability company (LLC)
  • S corporation
  • C corporation

Before you choose a structure, it’s wise to talk with business counselors, accountants, and attorneys to figure out which arrangement is best for you.

Obtain a business license, business bank account, and company credit card

You’ll need to check with state and local agencies to learn what business licenses or permits are required to open your cybersecurity business. Unlike many other fields, you don’t need a federal license (yet).

Many jurisdictions also require you to carry general liability insurance before they’ll issue you a license. And if you have employees, you must also maintain workers’ compensation insurance.

Secure funding and set a budget

A number of funding options can help get your business off the ground. Beyond your personal capital, you can explore loans, grants, and angel investors.

Many cyber entrepreneurs pursue these options. In fact, a recent report revealed that venture capital funding of cybersecurity companies hit $5.3 billion. 

Find the right location

Luckily, companies across the country need cybersecurity services. Of course, Hawaii can host only so many cybersecurity consultants.

Beyond your ideal location, you should also take into account your start-up capital, if you need to hire, and the nature of your business when deciding where to set up shop. 

Market your services

Customers are the one thing your business can’t survive without. And marketing is the tool that delivers them.

If you don’t plan to do the marketing yourself, consider hiring or outsourcing marketing to experts in the field. You’ll need their expertise to help you launch your product, brand, and services.

Before you venture too far with marketing, start with the basics. And for a cybersecurity company, a well-designed website is square one.

Carefully draft client contracts

Before any new project, be sure to sign a client service agreement. This contract should clearly define expectations for you and your client. One failed project without legal protection can derail your future in the industry, even if it’s not your fault.

To reduce the risk of lawsuits, the agreement should set out the scope of work, ownership of intellectual property, payment terms, and liabilities/indemnification. Make sure an attorney helps you review or draft client contracts to protect both parties.

Hire quality employees

Congrats on growing your company enough to hire employees! The SBA has helpful guidelines on how to set up your employee onboarding process without an HR rep.

Conduct thorough interviews and background checks on potential employees to verify their credentials and experience. During these reviews, be sure to comply with any federal and state laws. Once you begin hiring employees, you’ll need to carry workers’ comp insurance to protect yourself and your staff.

You may also want to purchase fidelity bonds to protect against employee theft, fraud, or illegal data access.

Protect your investment and your future

A new business is an investment in yourself and your future. We’re experts in helping cybersecurity businesses protect themselves and limit their risk. Our licensed insurance agents are happy to discuss your company’s situation and find the right options to fit your needs.

Frequently Asked Questions (FAQs)

Is cyber security business profitable?

In this article, we intend to provide 20 highly lucrative and best cybersecurity business ideas and opportunities for your ready reference. According to industry experts, the cybersecurity market is expected to grow to USD 231.94 Billion by 2022, at a Compound Annual Growth Rate (CAGR) of 11.0%.

How do I start a cyber security job with no experience?

Get a Cybersecurity Job with No Experience

  1. Build your foundational knowledge of technology and information security.
  2. Focus your time on achieving your goal. Eliminate distractions.
  3. Showcase the skills you already have.
  4. Pursue certifications that demonstrate your competence.

How does cyber security company make money?

Cybersecurity companies earn money by offering any number of services to clients, including providing outsourced technology support, managed services, software tools, penetration testing, systems auditing, vulnerability analysis and consulting.

How much does it cost to register a security company in South Africa?

You must pay registration fees at the Private Security Regulatory, and this includes: R2,280 and then sit a writing exam. R1,710 assessment fee. R520 Annual renewal fee.

Who is the best cyber security company?

Who is Considered the Best Cybersecurity Company in the World?

  • McAfee.
  • CyberArk.
  • Cisco.
  • CA Technologies.
  • AppGuard.
  • Avast.
  • Symantec.
  • Avira.

Which country has the best cyber security?

In several cyber power categories, it now leads the world. And in at least one instance, Russia also tops the United States. Cyber surveillance power: When it comes to cyber surveillance, China is the most powerful in cyber. Researchers say Russia is second in the category and the United States is third

What degree do you need for cyber security?

While it’s possible to find certain entry-level cyber security positions with an associate’s degree, most jobs require a four-year bachelor’s degree in cyber security or a related field such as information technology or computer science.

How do I train for cyber security?

Cyber security training can come in the form of an associate’s degree, as part of a bachelors in information technology, or from a certificate program. An associate’s degree can be achieved in about two years of full-time school, while a bachelor’s may take around least four years.

Is cybersecurity a good career?

Cybersecurity is a great career to enter right now, as there is a high demand for professionals with these skills. The U.S. Bureau of Labor Statistics estimates that the employment of information security analysts will grow 31 percent from 2019 to 2029.