How to create a financial forecast for an event security company?

Creating a financial forecast for your event security company, and ensuring it stays up to date, is the only way to maintain visibility on future cash flows.
This might sound complex, but with the right guidance and tools, creating an accurate financial forecast for your event security company is not that hard.
In this guide, we'll cover everything from the main goal of a financial projection, the data you need as input, to the tables that compose it, and the tools that can help you build a forecast efficiently.
Without further ado, let us begin!
Why create and maintain a financial forecast for an event security company?
Creating and maintaining an up-to-date financial forecast is the only way to steer the development of your event security company and ensure that it can be financially viable in the years to come.
A financial plan for an event security company enables you to look at your business in detail - from income to operating costs and investments - to evaluate its expected profitability and future cash flows.
This gives you the visibility needed to plan future investments and expansion with confidence.
And, when your trading environment gets tougher, having an up to date event security company forecast enables you to detect potential upcoming financing shortfalls in advance, enabling you to make adjustments or secure financing before you run out of cash.
It’s also important to remember that your event security company's financial forecast will be essential when looking for financing. You can be 100% certain that banks and investors will ask to see your numbers, so make sure they’re set out accurately and attractively.
Need a convincing business plan?
The Business Plan Shop makes it easy to create a financial forecast to assess the potential profitability of your projects, and write a business plan that’ll wow investors.

What information is used as input to build an event security company financial forecast?
A event security company's financial forecast needs to be built on the right foundation: your assumptions.
The data required to create your assumptions will depend on whether you are a new or existing event security company.
If you are creating (or updating) the forecast of an existing event security company, then your main inputs will be historical accounting data and operating metrics, and your team’s view on what to expect for the next three to five years.
If you are building financial projections for a new event security company startup, you will need to rely on market research to form your go-to-market strategy and derive your sales forecast.
For a new venture, you will also need an itemised list of resources needed for the event security company to operate, along with a list of equipment required to launch the venture (more on that below).
Now that you understand what is needed, let’s have a look at what elements will make up your event security company's financial forecast.
The sales forecast for an event security company
From experience, it is usually best to start creating your event security company financial forecast by your sales forecast.
To create an accurate sales forecast for your event security company, you will have to rely on the data collected in your market research, or if you're running an existing event security company, the historical data of the business, to estimate two key variables:
- The average price
- The number of monthly transactions
To get there, you will need to consider the following factors:
- Seasonal Demand: The average price and number of monthly transactions for your event security company may be affected by seasonal demand. For example, during the summer months, there may be a higher demand for security services due to outdoor events and festivals, resulting in an increase in average price and number of transactions.
- Economic Conditions: Changes in the economy can also impact your business's average price and number of monthly transactions. For instance, during a recession, event organizers may be more budget-conscious and opt for lower-priced security services, resulting in a decrease in your average price and number of transactions.
- Competition: The presence of competitors in your market can also affect your business's average price and number of monthly transactions. If you have a lot of competition, you may need to lower your prices to remain competitive, resulting in a decrease in your average price and potentially an increase in the number of transactions.
- Event Type: The type of event you are providing security for can also impact your average price and number of monthly transactions. For example, a large music festival may require a higher level of security and therefore command a higher average price compared to a small corporate event.
- Technology: Advancements in technology can also affect your business's average price and number of monthly transactions. For instance, if new security technology becomes available, you may need to invest in it to remain competitive, resulting in an increase in your average price but potentially a decrease in the number of transactions if clients are not willing to pay for the added cost.
Once you have an idea of what your future sales will look like, it will be time to work on your overhead budget. Let’s see what this entails.
Need a convincing business plan?
The Business Plan Shop makes it easy to create a financial forecast to assess the potential profitability of your projects, and write a business plan that’ll wow investors.

The operating expenses for an event security company
The next step is to estimate the expenses needed to run your event security company on a day-to-day basis.
These will vary based on the level of sales expected, and the location and size of your business.
But your event security company's operating expenses should include the following items at a minimum:
- Staff Costs: This includes wages, salaries, benefits, and training for all employees, including security guards, supervisors, and administrative staff.
- Accountancy Fees: You will need to hire an accountant or use accounting software to manage your company's finances, prepare tax returns, and keep track of expenses.
- Insurance Costs: As an event security company, you will need to have liability insurance to protect your business from potential lawsuits and property damage.
- Software Licenses: To efficiently manage your operations, you may need to purchase software licenses for scheduling, communication, and monitoring.
- Banking Fees: You will need to pay fees for banking services, such as wire transfers, check processing, and credit card transactions.
- Uniforms and Equipment: Your security guards will need uniforms and equipment, such as radios, flashlights, and first aid kits, to perform their duties.
- Training and Certifications: To ensure your security personnel are prepared for any situation, you will need to invest in their training and certifications.
- Vehicle Expenses: If your company provides transportation for security personnel, you will need to consider expenses such as fuel, maintenance, and insurance for the vehicles.
- Marketing and Advertising: To attract clients and promote your company, you may need to invest in marketing and advertising efforts, such as creating a website, printing brochures, or attending trade shows.
- Office Rent and Utilities: If you have a physical office, you will need to pay rent and cover utility expenses, such as electricity, water, and internet.
- Communication Costs: Your company's communication expenses may include phone bills, internet service, and equipment, such as cell phones and two-way radios.
- Legal Fees: You may need to hire a lawyer to review contracts, handle legal disputes, and ensure your business is compliant with all laws and regulations.
- Travel Expenses: If your company provides security services for events in different locations, you will need to cover travel expenses for your security personnel.
- Office Supplies: To keep your office running smoothly, you will need to purchase supplies, such as paper, ink, pens, and folders.
- Employee Benefits: In addition to salaries, you may need to offer benefits, such as health insurance, retirement plans, and paid time off, to attract and retain employees.
This list is, of course, not exhaustive, and you'll have to adapt it according to your precise business model and size. A small event security company might not have the same level of expenditure as a larger one, for example.
What investments are needed to start or grow an event security company?
Your event security company financial forecast will also need to include the capital expenditures (aka investments in plain English) and initial working capital items required for the creation or development of your business.
For an event security company, these could include:
- Security Equipment: This includes items such as surveillance cameras, metal detectors, and walkie-talkies. These are essential for an event security company to effectively monitor and communicate during events.
- Vehicle Fleet: Event security companies often need to transport their personnel and equipment to different event locations. This may require purchasing or leasing vehicles such as vans or trucks.
- Uniforms and Gear: Event security personnel need to have proper attire and gear to perform their duties effectively. This may include items such as uniforms, vests, and protective gear.
- Training and Certification: In order to provide high-quality security services, event security companies need to invest in training and certification for their employees. This may include courses on crowd control, emergency response, and first aid.
- Office Equipment and Supplies: Event security companies also need to have a functional office space to operate from. This may require purchasing items such as desks, computers, and office supplies.
Again, this list will need to be adjusted according to the size and ambitions of your event security company.
Need a convincing business plan?
The Business Plan Shop makes it easy to create a financial forecast to assess the potential profitability of your projects, and write a business plan that’ll wow investors.

The financing plan of your event security company
The next step in the creation of your financial forecast for your event security company is to think about how you might finance your business.
You will have to assess how much capital will come from shareholders (equity) and how much can be secured through banks.
Bank loans will have to be modelled so that you can separate the interest expenses from the repayments of principal, and include all this data in your forecast.
Issuing share capital and obtaining a bank loan are two of the most common ways that entrepreneurs finance their businesses.
What tables compose the financial plan for an event security company?
Now let's have a look at the main output tables of your event security company's financial forecast.
The profit & loss forecast
The forecasted profit & loss statement will enable you to visualise your event security company's expected growth and profitability over the next three to five years.

A financially viable P&L statement for an event security company should normally show:
- Sales growing above inflation
- Stable or expanding (ideally) profit margins
- A net profit
This will of course depend on the stage of your business: a new venture might be loss-making until it reaches its breakeven point in year 2 or 3, for example.
The projected balance sheet
The projected balance sheet gives an overview of your event security company's financial structure at the end of the financial year.
It is composed of three categories of items: assets, liabilities and equity:
- Assets: are what the business possesses and uses to produce cash flows. It includes resources such as cash, buildings, equipment, and accounts receivable (money owed by clients).
- Liabilities: are the debts of your event security company. They include accounts payable (money owed to suppliers), taxes due and bank loans.
- Equity: is the combination of what has been invested by the business owners and the cumulative profits to date (which are called retained earnings). Equity is a proxy for the value of the owner's stake in the business.

The cash flow projection
The cash flow forecast of your event security company will show how much cash the business is expected to generate or consume over the next three to five years.

There are multiple ways of presenting a cash flow forecast but from experience, it is better to organise it by nature in order to clearly show these elements:
- Operating cash flow: how much cash is generated by the event security company's operations
- Investing cash flow: what is the business investing to expand or maintain its equipment
- Financing cash flow: is the business raising additional funds or repaying financiers (debt repayment, dividends)
Your cash flow forecast is the most important element of your overall financial projection and that’s where you should focus your attention to ensure that your event security company is adequately funded.
Note: if you are preparing a financial forecast in order to try to secure funding, you will need to include both a yearly and monthly cash flow forecast in your event security company's financial plan.
Need a convincing business plan?
The Business Plan Shop makes it easy to create a financial forecast to assess the potential profitability of your projects, and write a business plan that’ll wow investors.

Which tool should you use to create your event security company's financial projections?
Building an event security company financial forecast is not difficult provided that you use the right tool for the job. Let’s see what options are available below.
Using online financial forecasting software to build your event security company's projections
The modern and easiest way is to use professional online financial forecasting software such as the one we offer at The Business Plan Shop.
There are several advantages to using specialised software:
- You can easily create your financial forecast by letting the software take care of the financial calculations for you without errors
- You have access to complete financial forecast templates
- You get a complete financial forecast ready to be sent to your bank or investors
- You can easily track your actual financial performance against your financial forecast, and recalibrate your forecast as the year goes by
- You can create scenarios to stress test your forecast's main assumptions
- You can easily update your forecast as time goes by to maintain visibility on future cash flows
- You have a friendly support team on standby to assist you when you are stuck
- It’s cost-efficient and much cheaper than using an accountant or consultant (see below)
If you are interested in this type of solution, you can try our forecasting software for free by signing up here.
Calling in a financial consultant or chartered accountant
Enlisting the help of a consultant or accountant is also a good way to obtain a professional event security company financial forecast.
The downside of this solution is its cost. From experience, obtaining a simple financial forecast over three years (including a balance sheet, income statement, and cash flow statement) is likely to cost a minimum of £700 or $1,000.
The indicative cost above, is for a small business, and a forecast is done as a one-shot exercise. Using a consultant or accountant to track your actuals vs. forecast and to keep your financial projections up to date on a monthly or quarterly basis will cost a lot more.
If you opt for this solution, make sure your accountant has in-depth knowledge of your industry, so that they may challenge your figures and offer insights (as opposed to just taking your assumptions at face value to create the forecast).
Why not use a spreadsheet such as Excel or Google Sheets to build your event security company's financial forecast?
Creating an accurate and error-free event security company financial forecast on Excel (or any spreadsheet) is very technical and requires both a strong grasp of accounting principles and solid skills in financial modelling.
Most entrepreneurs lack the expertise required to create an accurate financial forecast using spreadsheet software like Excel or Google Sheets. As a result, it is unlikely anyone will trust your numbers.
The second reason is that it is inefficient. Building forecasts on spreadsheets was the only option in the 1990s and early 2000s, nowadays technology has advanced and software can do it much faster and much more accurately.
This is why professional forecasters all use software. With the rise of AI, software is also becoming smarter at helping us detect mistakes in our forecasts and helping us analyse the numbers to make better decisions.
Finally, like everything with spreadsheets, tracking actuals vs. forecasts and updating your forecast as the year progresses is manual, tedious, error-prone, and time-consuming. Whereas financial forecasting software like The Business Plan Shop is built for this.
Need a convincing business plan?
The Business Plan Shop makes it easy to create a financial forecast to assess the potential profitability of your projects, and write a business plan that’ll wow investors.

Use our financial projection templates for inspiration
The Business Plan Shop has dozens of financial forecast templates available.
Our examples contain a complete business plan with a financial forecast and a written presentation of the company, the team, the strategy, and the medium-term objectives.
Whether you are just starting out or already have your own event security company, looking at our financial forecast template is a good way to:
- Understand what a complete business plan should look like
- Understand how you should model financial items for your event security company

Takeaways
- Having a financial forecast enables you to visualise the expected growth, profitability, and cash generation for your business over the next three to five years.
- Tracking actuals vs. forecast and keeping your financial projections up-to-date is the only way to get a view on what your event security company future cash flows may look like.
- Using financial forecasting software is the mordern and easy way to create and maintain your forecasts.
This is the end of our guide on how to build the financial forecast for an event security company, we hope you found it useful. Don't hesitate to contact us if you want to share your feedback or have any questions.
Need a convincing business plan?
The Business Plan Shop makes it easy to create a financial forecast to assess the potential profitability of your projects, and write a business plan that’ll wow investors.

Also on The Business Plan Shop
- Example of financial forecast
- How to project revenues for a business?
- Example of financial forecast for business idea
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