He wants to take his security firm national
Sovereign ranks high on Inner City 100 list of fast-growing businesses.
RICHARD COTTOM, 51, of Newtown, is president of Sovereign Security, a minority-owned Center City provider of security personnel and services. He's a former vice president of public safety at Drexel University. Sovereign ranked No. 11 on the 2013 Inner City 100 list of fastest-growing businesses in U.S. cities, compiled by the Initiative for a Competitive Inner City.
Q: How'd you start the biz?
A: My position at Drexel was eliminated and I took a couple of months off and started the business in October 2004.
Q: Where'd you get funding?
A: My own resources. I also got a [severance] package and was able to use some of that. Initial startup funding was $50,000, which covered insurance, office rent and working capital.
Q: What does the business do?
A: We have armed and/or unarmed guards at manufacturing and public-utility facilities, public housing, charter schools, office buildings, public buildings. We do drug screening, background checks and other services.
Q: How's the biz model work?
A: We want to be our clients' one-stop shop for all security needs. We do everything except closed-circuit television, but we have strategic partners who do.
Q: How big a business is this?
A: We have close to 300 employees, most are full-time, with revenues of $7.2 million in 2012.
Q: Who are some clients?
A: The Pennsylvania Convention Center, Philadelphia Gas Works, the Philadelphia Housing Authority and Merck. We also work with staffing companies that place temporary workers.
Q: What separates Sovereign Security from its competitors?
A: From a minority standpoint, there's only Top of the Clock, Scotlandyard Security Services and us, and some smaller firms. I try to communicate with customers at least once a week. I don't want our first contact to be a problem. You're only as good as your best person on the job, and it only takes a second for somebody to screw up.
Q: What's the biggest challenge you faced growing the business?
A: Getting capital so I can continue to grow.
Q: What's the growth plan?
A: We want to be a national company. There aren't many minority security firms in this state, and few are national companies. We are licensed here, Maryland and Tennessee, and getting licensed in Washington, D.C., and New York. We're also working with a partner on opportunities in Oklahoma, Kentucky and Texas.
Q: What's the time frame?
A: You do it one state at a time. I tell our partners: If it makes good business sense, I'll go to Timbuktu. We've developed strong partnerships with major security companies and we want to be their go-to minority supplier. If you want to do business with the federal government, you need diverse suppliers. For us to grow, the only way that will happen is to partner with larger companies.
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