Cybersecurity Business Plan
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We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Cybersecurity businesses.
Below is a template to help you create each section of your Cybersecurity business plan.
Executive Summary
Business Overview
The Cyber Guardian business is a startup cybersecurity company located in Burlingame, California. The company was founded by Lynn Frederick, who has a fifteen-year history working in the cybersecurity industry, in increasingly responsible roles. This expertise positions him to start and effectively grow a successful cybersecurity company. Lynn believes his coding and managerial experience, coupled with a deep knowledge of cybersecurity practices will provide everything needed for long-term growth and profitability.
Cyber Guardian is a cutting-edge cybersecurity startup dedicated to providing robust cybersecurity solutions to small and medium enterprises (SMEs). Founded by cybersecurity expert Lynn Frederick, Cyber Guardian leverages advanced technologies and deep industry experience to protect clients’ digital assets.
Product Offering
The following are the services that Cyber Guardian will provide:
- Vulnerability Assessment
- Managed Security Services
- Incident Response
- Cybersecurity Training & Awareness
Customer Focus
The primary customers of Cyber Guardian are SMEs across various sectors such as finance, healthcare, and retail, which are increasingly vulnerable to cyber threats but often lack the resources to maintain a full-fledged internal cybersecurity team.
Management Team
Cyber Guardian is owned and operated by Lynn Frederick, who graduated from UC Berkely with a bachelor’s degree in Software Security. Since his graduation, Lynn has been working at a large cybersecurity company in increasingly responsible roles. Lynn’s knowledge, skill, and customer service orientation prompted several customers to encourage him to launch his own company, stating they trust him above all others, and would follow him to the new firm. As he considered starting his own company, Lynn began securing contracts from these clients, ensuring they will follow him to Cyber Guardian when the company fully launches.
Lynn Frederick has recruited Gloria Perlman, who also attended UC Berkeley, to be the Administrative Manager in the new company. In this role, Gloria will oversee and direct staff members in the execution of the company vision, as well as run the back office operation and bookkeeping.
Success Factors
Cyber Guardian will be able to achieve success by offering the following competitive advantages:
- Friendly, knowledgeable, and highly-qualified team of IT professionals
- Services that leverage cutting-edge technology and techniques for maintaining security
- Cyber Guardian offers the best pricing in town, with a comparatively cost effective pricing structure.
Download the Cybersecurity business plan template (including a customizable financial model) to your computer here <–
Financial Highlights
Cyber Guardian is seeking $175,000 in debt financing to launch its cybersecurity operation. The funding will be dedicated toward securing the office space and purchasing technology and setting up the necessary infrastructure. Funding will also be dedicated toward three months of overhead costs to include payroll of the staff, rent, and marketing costs for the print ads and marketing costs. The breakout of the funding is below:
- Office space build-out: $10,000
- Technology and infrastructure: $50,000
- Three months of overhead expenses (payroll, rent, utilities): $100,000
- Marketing costs: $5,000
- Working capital: $10,000
The following graph outlines the financial projections for Cyber Guardian.
Company Overview
Who is Cyber Guardian?
Cyber Guardian is a newly established, full-service cybersecurity company in Burlingame, California. Cyber Guardian will be the most reliable, cost-effective, and efficient cybersecurity choice in the city and the surrounding communities. Cyber Guardian will provide a tailored menu of cybersecurity solutions designed to protect SMEs from the growing threats of cyberattacks, ensuring business continuity and regulatory compliance.
Lynn Frederick will serve as manager and mentor to each of his team members, all of whom are highly qualified in their own right, and experienced in the most important aspects of cybersecurity. Cyber Guardian offers peace of mind for all its clients and ensures all issues are taken care of expeditiously while delivering the best customer service.
Cyber Guardian History
Cyber Guardian is owned and operated by Lynn Frederick. As a former cybersecurity manager for several years, he developed a unique capability to design and implement cybersecurity solutions that clearly reflect his skills and abilities. The company is built on the foundation of its founder’s extensive industry expertise and a deep understanding of the cybersecurity challenges faced by SMEs. Furthermore, Lynn Frederick has gained the trust and commitment of several clients in advance of opening his business and has begun to sign contracts with each to provide tailored cybersecurity solutions once the company launches.
Since incorporation, Cyber Guardian has achieved the following milestones:
- Registered Cyber Guardian, LLC to transact business in the state of California.
- Has a contract in place for a 10,000 square foot office at one of the midtown buildings
- Reached out to numerous contacts to include Cyber Guardian in upcoming advertising and marketing programs.
- Began recruiting a staff of experienced IT professionals to work at Cyber Guardian
Cyber Guardian Services
Cyber Guardian offers end-to-end security services, from risk assessments and monitoring to incident response and recovery, alongside continuous updates and training to cope with evolving threats.
The following will be the services Cyber Guardian will provide:
- Vulnerability Assessment
- Managed Security Services
- Incident Response
- Cybersecurity Training & Awareness
- Performance reports and analytics: weekly reports to clients
- Superior day to day client management
Industry Analysis
The cybersecurity market is growing due to increasing internet penetration, a surge in cybercrime, and stringent regulatory requirements. The demand for cybersecurity solutions is expected to rise, especially among SMEs, which are typically less well-protected.
The cybersecurity industry is expected to reach $78.3 billion this year, and continue to grow at an annual rate of 7.7% over the next five years.
Cybersecurity is becoming increasingly important, as companies, governments, and individuals are more and more reliant on IT systems, which are vulnerable to malicious actions. This digital transformation has made security a priority for organizations of every size.
The cybersecurity software industry is growing due to increasing threats of hacking and malware. Rising sales, limited costs and a reliance on skilled labor have contributed to strong profits. Developers invest heavily in research and development to stay ahead of the game. Purchases costs vary depending on the developer, but are diminishing as cloud computing limits the need for hardware.
Download the Cybersecurity business plan template (including a customizable financial model) to your computer here <–
Customer Analysis
Demographic Profile of Target Market
Cyber Guardian will target companies that currently utilize cybersecurity and those that have a need for cybersecurity in Burlingame, California and, in the greater San Francisco region. The company will target small-to-medium sized businesses who have not yet acquired cybersecurity, as well as larger corporations without an effective cybersecurity solution.
The precise demographics for Cyber Guardian are:
| Total | Percent | |
|---|---|---|
| Total population | 1,680,988 | 100% |
| Male | 838,675 | 49.9% |
| Female | 842,313 | 50.1% |
| 20 to 24 years | 114,872 | 6.8% |
| 25 to 34 years | 273,588 | 16.3% |
| 35 to 44 years | 235,946 | 14.0% |
| 45 to 54 years | 210,256 | 12.5% |
| 55 to 59 years | 105,057 | 6.2% |
| 60 to 64 years | 87,484 | 5.2% |
| 65 to 74 years | 116,878 | 7.0% |
| 75 to 84 years | 52,524 | 3.1% |
Customer Segmentation
Cyber Guardian will primarily target the following customer profiles in the Bay Area:
- Finance SMEs: High-value transactions and regulatory compliance needs.
- Healthcare SMEs: Require protection of sensitive patient data.
- Retail SMEs: Need to secure consumer data and e-commerce platforms.
Competitive Analysis
Direct and Indirect Competitors
Cyber Guardian will face competition from other companies with similar business profiles. A description of each competitor company is below.
IT Partners
Established in 2000, IT Partners is an IT managed services company that provides managed IT services throughout North America. IT Partners is equipped to offer a comprehensive range of IT solutions for businesses of all sizes. Solutions include cloud computing solutions, cybersecurity defense, network design and implementation, critical incident response, and 24/7 help desk support. The company uses a proactive approach to focus on prevention and designs customized strategies tailored to each client’s specific requirements and goals. IT Partners has over 250 IT professionals on its team and has served over 1,900 businesses. The company provides solutions for various industries, including accounting, architecture, engineering, construction, education, finance, healthcare, hospitality, insurance, legal, manufacturing, retail, recruiting/staffing, real estate, and non-profits.
Service Offerings Include:
- Managed IT Services
- Internal IT Support
- Virtual CIO
- Network Management
- Cybersecurity Protection
- Backup Monitoring/Remediation
- Device Management
- Patch Management
- Cloud Solutions
- Delmiaworks Support (IQMS)
- Amazon Web Services (AWS Cloud services, AWS Cloud migration, AWS managed cloud, AWS application modernization, AWS serverless architecture)
Bay Area Technology Solutions
Established in 1996, Bay Area Technology Solutions (BATS) is an IT services company that specializes in IT support and cybersecurity solutions for Bay Area businesses. BATS employs a team of highly credentialed technology professionals with expertise in a wide range of services, from remote help desk to on-site support, storage, server consolidation, virtualization, wireless, business continuity, archiving, POS systems, cybersecurity, and data center builds.
Service Offerings Include:
- Managed IT Services
- Cybersecurity Services
- Application Support & Development
- Voice over IP (VoIP) Services
Miklos Technologies
Established in 1997, Miklos Technologies (Miklos IT) is a managed IT services company that serves businesses throughout the United States. Miklos IT supports numerous industries, including healthcare, logistics, finance, professional services, manufacturing, real estate, retail, ecommerce, construction, engineering, architecture, legal, private equity, education, non-profit, science, hospitality, and entertainment companies. Miklos IT provides four key service areas: technology consulting, IT, software, and marketing. The company offers business and technology consulting in various areas such as business transformation, growth & strategy planning, IT regulation compliances, mergers & acquisitions, technology risk assessments, operations, marketing brand strategy, sales, and recruiting & staffing.
Service Offerings Include:
- Managed IT Services & Security
- Software Development
- Ecommerce & Custom Websites
- Digital Marketing
- IT Consulting
- IT Support
- Support & Advance Custom Software
- Cybersecurity
- Systems Integration
- Cloud Computing & Migrations
Download the Cybersecurity business plan template (including a customizable financial model) to your computer here <–
Competitive Advantage
Cyber Guardian will be able to offer the following advantages over their competition:
- Friendly, knowledgeable, and highly-qualified team of experienced IT professionals
- Comprehensive menu of personalized, SME-focused solutions
- Cyber Guardian offers flexible pricing models designed to cater to the specific needs of smaller businesses.
Marketing Plan
Brand & Value Proposition
Cyber Guardian will offer a unique value proposition to its clientele:
- Highly-qualified team of skilled employees who are able to provide a comprehensive cybersecurity program that brings peace of mind to their clients
- Experience with keeping abreast of evolving threats and security issues
- Flexible pricing models
Promotions Strategy
The promotions strategy for Cyber Guardian is as follows:
Word of Mouth/Referrals
The founder of Cyber Guardian has built an extensive list of contacts over the years by providing exceptional service and highly skilled and effective cybersecurity services. Many of these contacts and clients will follow the founder to the new company and help spread the word of Cyber Guardian.
Professional Associations and Networking
Industry associations and local networking will become a top priority for the team at Cyber Guardian. The management team will seek active leadership roles, which will expand its credibility within the industry.
Social Media Marketing
Cyber Guardian will focus primarily on marketing its services and on maximizing relationship opportunities via social media efforts.
Website/SEO Marketing
Cyber Guardian’s website will be well organized, informative, and list all the services that Cyber Guardian provides. Further, the company will engage in SEO marketing tactics so that anytime someone searches online for “cybersecurity company” or “cybersecurity company near me,” Cyber Guardian will be listed at the top of the search results.
Operations Plan
The following will be the operations plan for Cyber Guardian.
Operation Functions:
- Lynn Frederick will be the owner and President of the company. He will manage client relations. Lynn Frederick has spent the past year recruiting the following staff:
- Gloria Perlman will be the Administrative Manager, and will oversee and direct staff members in the execution of the company vision, as well as run the back office operation and bookkeeping.
Download the Cybersecurity business plan template (including a customizable financial model) to your computer here <–
Milestones:
Cyber Guardian will have the following milestones completed in the next six months.
- 5/1/202X – Finalize contract to lease office space
- 5/15/202X – Finalize personnel and staff employment contracts for Cyber Guardian
- 6/1/202X – Finalize contracts for Cyber Guardian clients
- 6/15/202X – Begin networking at industry events
- 6/22/202X – Begin moving into Cyber Guardian office
- 7/1/202X – Cyber Guardian opens its doors for business
Management Team
Cyber Guardian is owned and operated by Lynn Frederick, who graduated from UC Berkely with a bachelor’s degree in Software Security. Since his graduation, Lynn has been working at a large cybersecurity company in increasingly responsible roles. Lynn’s knowledge, skill, and customer service orientation prompted several customers to encourage him to launch his own company, stating they trust him above all others, and would follow him to the new firm. As he considered starting his own company, Lynn began securing contracts from these clients, ensuring they will follow him to Cyber Guardian when the company fully launches.
Lynn Frederick has recruited Gloria Perlman, who also attended UC Berkeley, to be the Administrative Manager in the new company. In this role, Gloria will oversee and direct staff members in the execution of the company vision, as well as run the back office operation and bookkeeping.
Financial Plan
Key Revenue & Costs
The revenue drivers for Cyber Guardian are the fees charged for deployed solutions. Strong growth and a recurring revenue model, with client bases growing to generate a consistent revenue stream, also support profitability.
The cost drivers will be the overhead costs required to staff Cyber Guardian. The expenses will be the payroll cost, rent, utilities, technology and software costs.
Funding Requirements and Use of Funds
Cyber Guardian is seeking $175,000 in debt financing to launch its cybersecurity operation. The funding will be dedicated toward securing the office space and purchasing technology and setting up the necessary infrastructure. Funding will also be dedicated toward three months of overhead costs to include payroll of the staff, rent, and marketing costs for the print ads and marketing costs. The breakout of the funding is below:
- Office space build-out: $10,000
- Technology and infrastructure: $50,000
- Three months of overhead expenses (payroll, rent, utilities): $100,000
- Marketing costs: $5,000
- Working capital: $10,000
Download the Cybersecurity business plan template (including a customizable financial model) to your computer here <–
Key Assumptions
The following outlines the key assumptions required achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.
- Number of clients Per Month: 20
- Average revenue per Month: $200,000
- Office Lease per Year: $100,000
Financial Projections
Income Statement
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| Revenues | ||||||
| Total Revenues | $360,000 | $793,728 | $875,006 | $964,606 | $1,063,382 | |
| Expenses & Costs | ||||||
| Cost of goods sold | $64,800 | $142,871 | $157,501 | $173,629 | $191,409 | |
| Lease | $50,000 | $51,250 | $52,531 | $53,845 | $55,191 | |
| Marketing | $10,000 | $8,000 | $8,000 | $8,000 | $8,000 | |
| Salaries | $157,015 | $214,030 | $235,968 | $247,766 | $260,155 | |
| Initial expenditure | $10,000 | $0 | $0 | $0 | $0 | |
| Total Expenses & Costs | $291,815 | $416,151 | $454,000 | $483,240 | $514,754 | |
| EBITDA | $68,185 | $377,577 | $421,005 | $481,366 | $548,628 | |
| Depreciation | $27,160 | $27,160 | $27,160 | $27,160 | $27,160 | |
| EBIT | $41,025 | $350,417 | $393,845 | $454,206 | $521,468 | |
| Interest | $23,462 | $20,529 | $17,596 | $14,664 | $11,731 | |
| PRETAX INCOME | $17,563 | $329,888 | $376,249 | $439,543 | $509,737 | |
| Net Operating Loss | $0 | $0 | $0 | $0 | $0 | |
| Use of Net Operating Loss | $0 | $0 | $0 | $0 | $0 | |
| Taxable Income | $17,563 | $329,888 | $376,249 | $439,543 | $509,737 | |
| Income Tax Expense | $6,147 | $115,461 | $131,687 | $153,840 | $178,408 | |
| NET INCOME | $11,416 | $214,427 | $244,562 | $285,703 | $331,329 |
Balance Sheet
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Cash | $154,257 | $348,760 | $573,195 | $838,550 | $1,149,286 | |
| Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
| Inventory | $30,000 | $33,072 | $36,459 | $40,192 | $44,308 | |
| Total Current Assets | $184,257 | $381,832 | $609,654 | $878,742 | $1,193,594 | |
| Fixed assets | $180,950 | $180,950 | $180,950 | $180,950 | $180,950 | |
| Depreciation | $27,160 | $54,320 | $81,480 | $108,640 | $135,800 | |
| Net fixed assets | $153,790 | $126,630 | $99,470 | $72,310 | $45,150 | |
| TOTAL ASSETS | $338,047 | $508,462 | $709,124 | $951,052 | $1,238,744 | |
| LIABILITIES & EQUITY | ||||||
| Debt | $315,831 | $270,713 | $225,594 | $180,475 | $135,356 | |
| Accounts payable | $10,800 | $11,906 | $13,125 | $14,469 | $15,951 | |
| Total Liability | $326,631 | $282,618 | $238,719 | $194,944 | $151,307 | |
| Share Capital | $0 | $0 | $0 | $0 | $0 | |
| Retained earnings | $11,416 | $225,843 | $470,405 | $756,108 | $1,087,437 | |
| Total Equity | $11,416 | $225,843 | $470,405 | $756,108 | $1,087,437 | |
| TOTAL LIABILITIES & EQUITY | $338,047 | $508,462 | $709,124 | $951,052 | $1,238,744 |
Cash Flow Statement
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| CASH FLOW FROM OPERATIONS | ||||||
| Net Income (Loss) | $11,416 | $214,427 | $244,562 | $285,703 | $331,329 | |
| Change in working capital | ($19,200) | ($1,966) | ($2,167) | ($2,389) | ($2,634) | |
| Depreciation | $27,160 | $27,160 | $27,160 | $27,160 | $27,160 | |
| Net Cash Flow from Operations | $19,376 | $239,621 | $269,554 | $310,473 | $355,855 | |
| CASH FLOW FROM INVESTMENTS | ||||||
| Investment | ($180,950) | $0 | $0 | $0 | $0 | |
| Net Cash Flow from Investments | ($180,950) | $0 | $0 | $0 | $0 | |
| CASH FLOW FROM FINANCING | ||||||
| Cash from equity | $0 | $0 | $0 | $0 | $0 | |
| Cash from debt | $315,831 | ($45,119) | ($45,119) | ($45,119) | ($45,119) | |
| Net Cash Flow from Financing | $315,831 | ($45,119) | ($45,119) | ($45,119) | ($45,119) | |
| Net Cash Flow | $154,257 | $194,502 | $224,436 | $265,355 | $310,736 | |
| Cash at Beginning of Period | $0 | $154,257 | $348,760 | $573,195 | $838,550 | |
| Cash at End of Period | $154,257 | $348,760 | $573,195 | $838,550 | $1,149,286 |
Cybersecurity Business Plan FAQs
What Is a Cybersecurity Business Plan?
A cybersecurity business plan is a plan to start and/or grow your cybersecurity business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.
You can easily complete your Cybersecurity business plan using our Cybersecurity Business Plan Template here.
What are the Main Types of Cybersecurity Businesses?
There are a number of different kinds of cybersecurity businesses, some examples include: Remote security center services, Cloud security services, Vulnerability scan & management, and Endpoint security services.
How Do You Get Funding for Your Cybersecurity Business Plan?
Cybersecurity businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.
What are the Steps To Start a Cybersecurity Business?
Starting a cybersecurity business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.
1. Develop A Cybersecurity Business Plan - The first step in starting a business is to create a detailed cybersecurity business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.
2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your cybersecurity business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your cybersecurity business is in compliance with local laws.
3. Register Your Cybersecurity Business - Once you have chosen a legal structure, the next step is to register your cybersecurity business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.
4. Identify Financing Options - It’s likely that you’ll need some capital to start your cybersecurity business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.
5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.
6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.
7. Acquire Necessary Cybersecurity Equipment & Supplies - In order to start your cybersecurity business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation.
8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your cybersecurity business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.