Beginners guide: Starting or buying armored transport business for sale

In a business world increasingly reliant on credit cards, mobile payments like Apple Pay, and even Bitcoin, does cash still have a chance? An article in The New York Times featured Allan M. Siegel, partner at Chaikin, Sherman, Cammarata & Siegel, P.C., questioning the idea of a cashless society and believing cash will retain its value. Surprisingly, I share the same belief!

They say cash is king, but handling cash in the business world is not as straightforward as it seems. Businesses dealing with large cash amounts often hire armored transport trucks for pick-ups, providing peace of mind. However, this convenience comes at a price. In this article, we'll explore the pros and cons of starting or acquiring an armored transport business, also known as the cash truck. Stay tuned, as we dive into the world of money!

What is an armored truck business? 

An armored truck business is a specialized service that involves the transportation and protection of valuable items, typically cash, precious metals, valuable documents, and other high-value assets. These businesses use armored vehicles, which are heavily fortified and equipped with advanced security measures, to ensure the safe transportation of these valuables.

The primary purpose of an armored truck business is to securely move cash and valuable items between various locations, such as banks, businesses, retailers, ATMs, and even events or venues where large sums of money are involved, like concerts or sports events.

The armored trucks are designed to withstand attempted robberies, theft, and tampering. They are usually operated by highly trained security personnel who are trained to handle emergency situations and are equipped with communication devices to stay in contact with a central monitoring center or law enforcement agencies if needed.

In addition to transporting cash and valuables, some armored truck businesses may also offer additional security services, such as cash processing, ATM maintenance, and providing secure storage facilities for businesses or individuals who need to safeguard their assets.

What businesses use armored transport? 

Various businesses and organizations utilize armored transport services to ensure the secure transportation of valuable items. Some of the key industries that commonly use armored transport include:

Financial Institutions:

Banks, credit unions, and other financial institutions frequently use armored trucks to transport cash and coins between branches, ATMs, and central processing centers.

Retailers:

Large retailers and chain stores dealing with significant cash transactions often rely on armored transport to move cash from their stores to secure cash centers or banks.

Jewelry and Precious Metals:

Jewelers, diamond traders, and businesses dealing in precious metals like gold and silver use armored transport to move their valuable inventory between stores or to safeguard their assets during trade shows or exhibitions.

Government Agencies:

Government entities, such as tax collection agencies, courthouses, and government offices handling important documents or cash, may employ armored transport to ensure the secure movement of sensitive materials.

Event Management Companies:

Organizations managing major events, concerts, or sports gatherings with high cash flows may hire armored transport to handle ticket sales and collect revenue securely.

Casinos:

Casinos often rely on armored trucks to transfer large amounts of cash generated from gaming operations to banks or cash centers.

Pharmaceutical Companies:

Businesses in the pharmaceutical industry may utilize armored transport to transport expensive and sensitive medications or medical supplies.

Private Security Companies:

Companies specializing in security services may offer armored transport as part of their comprehensive security solutions for high-profile clients or businesses with security concerns.

Armored Vehicle Rental Services:

Some companies rent out armored vehicles to individuals or businesses needing secure transport for one-time events, high-value asset movement, or VIP protection.

Armored Cash Processing Centers:

These are specialized businesses that process, count, and verify cash on behalf of banks and retailers. They use armored transport to move cash to and from their facilities.

For individuals interested in starting an armored transport business for sale, understanding the diverse industries that rely on these services can help identify potential client bases and opportunities for growth. Establishing strong relationships with clients, ensuring top-notch security protocols, and offering reliable and efficient transportation are crucial elements for success in this industry.

How do armored transport businesses make money?

While specific revenue figures can vary significantly based on factors like the size of the business, the region of operation, and the range of services offered, here are some estimated revenue breakdowns for an armored transport business:

Transportation Fees:

Transportation fees can range from $100 to $500 per trip, depending on the distance traveled and the level of security required. Assuming an average fee of $300 per trip, an armored transport business handling 10 trips per day could generate approximately $3,000 per day or $90,000 per month.

Cash Handling Services:

Cash processing fees can be charged on a per-transaction basis, with an average fee of $0.05 to $0.15 per banknote. For a business processing 100,000 banknotes per day, the daily revenue could range from $5,000 to $15,000.

Service Contracts:

With service contracts, businesses may offer discounts to clients. Assuming a 10% discount on standard transportation fees for a client on a contract with a monthly value of $10,000, this could result in $1,000 in monthly discounted revenue.

Valuables Storage:

Storage fees can be around $500 to $1,000 per month per client. With five clients using the storage facility, the monthly revenue could be approximately $2,500 to $5,000.

ATM Replenishment:

ATM replenishment services can be priced at $50 to $200 per replenishment. With 50 ATMs serviced daily at an average fee of $100, the daily revenue could be around $5,000.

Event Security:

Event security services can be charged at a flat fee of $5,000 to $10,000 per event, depending on the size and complexity of the event.

VIP Protection:

VIP protection services can range from $1,000 to $5,000 per day, depending on the level of security and the duration of the service.

Customized Security Solutions:

For tailored security solutions, prices can vary significantly based on the complexity and scope of the plan. A customized security package could range from $10,000 to $50,000 per client.

These are rough estimates and may not reflect the actual figures for all businesses. An armored transport company's revenue will depend on its ability to attract clients, maintain strong relationships, and provide reliable and secure services. It's important to conduct thorough market research and financial planning to determine specific revenue projections for any individual business.

What requirements are needed to start or buy an armored transport business for sale?

If you're a business owner looking to start or buy an armored transport business for sale, conducting thorough testing is essential. Ensure the security and safety of your operations by testing the effectiveness of the vehicles' security measures, including locks, alarms, and surveillance equipment. Evaluate your employees' driving skills through simulations and safety assessments. Conduct comprehensive background checks on prospective employees to ensure their trustworthiness when handling valuable items. If your business employs armed guards, ensure they undergo regular firearm proficiency tests and training. Test and plan efficient transportation routes while considering cybersecurity measures for digital systems. Additionally, ensure compliance with all relevant regulations and industry standards. By conducting comprehensive testing, you can identify weaknesses, improve operational efficiency, and build a reliable and trustworthy team that prioritizes the safety and security of your client’s assets.

In conclusion, starting or acquiring an armored transport business requires careful consideration and thorough testing to ensure a secure and successful venture. By addressing security measures, driving skills, employee background checks, and route planning, one can build a robust and reliable operation. Moreover, conducting regular firearm proficiency tests and implementing cybersecurity measures will further strengthen the business's capabilities. Remaining vigilant for one-time red flags during employee screening and throughout daily operations will help maintain the highest level of trustworthiness and professionalism in this specialized industry. With meticulous preparation and a strong focus on safety and compliance, an armored transport business can thrive, providing essential services to clients and safeguarding valuable assets with utmost reliability.

Disclaimer: The information provided in this article is for general informational purposes only and should not be considered legal advice. The laws and regulations regarding business licenses may vary from state to state and are subject to change. It is important to contact your local state office to determine which licenses are required for any specific businesses. Additionally, please note that this article contains affiliate links and we may earn a commission from our affiliate partners or Amazon links. If you are considering starting a business, it is recommended that you seek the advice of a qualified lawyer, business broker, or professional in your area. The information provided in this article is not a substitute for professional advice and should not be relied upon as such.