Surveillance Monitoring Service Running Costs: $86K/Month Fixed

Surveillance Camera Monitoring Service Running Costs

Initial fixed running costs for a Surveillance Camera Monitoring Service start high, averaging around $86,000 per month in 2026, primarily driven by specialized payroll and central station overhead This estimate includes $62,083 in wages for 9 full-time employees (FTEs) and $24,000 in fixed operating expenses like rent and software Your variable costs, covering cloud infrastructure and commissions, start at 130% of revenue Given the high initial investment and slow revenue ramp (Year 1 revenue is only $562,000), the business requires significant working capital You need to plan for a minimum cash requirement of $813,000 before reaching the projected breakeven point in June 2028 This guide breaks down the seven critical monthly expenses you must track to manage cash flow defintely

7 Operational Expenses to Run Surveillance Camera Monitoring Service

#	Operating Expense	Expense Category	Description	Min Monthly Amount	Max Monthly Amount
1	Payroll Expenses	Labor	Initial payroll for 9 FTEs, including 4 Security Monitoring Agents, totals $62,083 per month in 2026.	$62,083	$62,083
2	Central Station Rent	Facility	Securing a reliable, hardened monitoring facility requires a fixed monthly outlay of $12,000 for rent.	$12,000	$12,000
3	Cloud Infrastructure	Variable COGS	Costs of video storage, data transfer bandwidth, and processing are variable, starting at 50% of gross revenue in 2026.	$0	$0
4	Sales Commissions	Sales & Marketing	Sales commissions and payment processing fees are projected to consume 80% of revenue in 2026, decreasing slightly as volume scales.	$0	$0
5	Customer Acquisition	Marketing Budget	The annual marketing budget starts at $120,000 ($10,000/month) to support a Customer Acquisition Cost target of $1,500 in Year 1.	$10,000	$10,000
6	Software Subscriptions	Technology	Specialized monitoring platform software and related tools require a fixed monthly subscription fee of $5,000.	$5,000	$5,000
7	Insurance and Licensing	G&A	Maintaining Cyber, Liability Insurance ($3,000/month), and required Professional Licensing Fees ($500/month) costs $3,500 monthly.	$3,500	$3,500
	Total	All Operating Expenses		$92,583	$92,583

What is the total required operating budget to reach cash flow breakeven?

Reaching cash flow breakeven for the Surveillance Camera Monitoring Service requires a total cumulative investment of $813,000 to cover losses over the next 30 months, hitting breakeven around June 2028; you should defintely model this runway carefully, especially when considering How Increase Surveillance Camera Monitoring Service Profits?.

Total Cash Required

This is the total cumulative funding needed.
The required capital target is $813,000.
This amount covers all operational deficits.
It buys you time until the business turns cash positive.

Breakeven Milestone

The projected timeline to stop burning cash.
Breakeven is set for 30 months from launch.
This places operational neutrality in June 2028.
If customer acquisition costs rise, this date shifts later.

Which cost categories represent the largest recurring monthly expenses?

The largest recurring monthly expenses for the Surveillance Camera Monitoring Service are labor costs and physical space rental, which you've got to manage tightly if you want to scale profitably; understanding these fixed overheads is crucial before you even look at customer acquisition costs, which is why reading up on How To Launch Surveillance Camera Monitoring Service Business? is smart. Specifically, initial payroll runs $62,083 monthly, closely followed by Central Station Rent at $12,000 per month, making labor efficiency defintely the top lever for profitability.

Labor Cost Pressure

Payroll is your single biggest fixed cost item.
Initial monthly labor expense hits $62,083.
This high fixed cost demands high agent utilization.
You must drive agent efficiency to cover this overhead.

Fixed Overhead Stack

Central Station Rent adds another $12,000 monthly.
Labor and rent form the core fixed cost base.
High fixed costs mean break-even point is high.
If customer onboarding takes 14+ days, churn risk rises fast.

How much working capital is needed to sustain operations during the initial growth phase?

You need to raise at least $813,000 to cover the initial cash burn until the Surveillance Camera Monitoring Service starts making money, a crucial metric often examined alongside core performance indicators like What Are The 5 KPI Metrics For Surveillance Camera Monitoring Service Business? This minimum cash requirement is projected to hit in May 2028, so planning runway now is defintely critical.

Cash Floor Projection

Minimum cash needed is $813,000.
This covers negative cash flow before profit.
The trough hits in May 2028.
Funding must arrive well before this date.

Growth Capital Focus

Cover agent hiring and monitoring center setup.
Fund marketing to reach target SMBs.
Working capital pays for customer acquisition costs.
Ensure payroll runs smoothly during ramp-up.

How will we cover fixed costs if customer acquisition is slower than the $1,500 CAC projection?

If customer acquisition for the Surveillance Camera Monitoring Service slows down while holding the $1,500 Customer Acquisition Cost (CAC) target, you must immediately slash variable overhead, particularly delaying the hiring of Security Monitoring Agents, to preserve your cash runway. You can read more about planning for these scenarios in How To Write A Business Plan For Surveillance Camera Monitoring Service?

Immediate Payroll Freeze

If sales miss targets, you defintely need to stop spending on headcount before you touch marketing spend. Fixed costs like payroll burn cash fastest when revenue isn't flowing in to cover them.

Delay hiring Security Monitoring Agents by 45 days minimum.
Cut non-essential SaaS subscriptions costing over $500 monthly.
Re-evaluate the need for a dedicated Sales Development Rep (SDR) role.
Ensure existing agents maintain 85% billable utilization rate.

Runway Stress Test

Your runway (how long you can operate before running out of cash) shrinks fast if the $1,500 CAC goal isn't met. You need a clear plan for covering fixed operating expenses.

If CAC hits $2,000, you need 33% more customers to break even.
Calculate fixed costs against only 50% of projected monthly recurring revenue.
Map required agent headcount to the first 100 paying subscribers.
Prioritize marketing spend only on channels showing CAC under $1,000.

Key Takeaways

The surveillance monitoring service faces high initial fixed costs, averaging around $86,000 monthly, primarily driven by specialized payroll expenses.
A substantial minimum cash requirement of $813,000 is necessary to cover cumulative losses before reaching the projected breakeven point in 30 months.
Payroll represents the single largest recurring expense, costing $62,083 per month initially for nine full-time employees, making labor efficiency crucial.
Variable costs are projected to consume 130% of initial revenue, necessitating rigorous management of sales commissions and cloud infrastructure spending.

Running Cost 1 : Payroll Expenses

Labor is Biggest Fixed Cost

Labor costs dominate your initial fixed budget, hitting $62,083 per month in 2026 for 9 FTEs. This payroll, which includes 4 Security Monitoring Agents, represents your largest structural commitment before generating significant revenue. You defintely need strong subscription volume just to cover this baseline.

Payroll Inputs

The $62,083 monthly payroll in 2026 covers 9 FTEs required for round-the-clock operations. Four of these are the critical Security Monitoring Agents who watch the feeds. This cost is fixed, meaning it must be paid even if customer acquisition lags behind projections. It dwarfs other fixed costs like rent.

Covers 9 total full-time employees.
Includes 4 specialized monitoring staff.
Fixed cost sets the minimum monthly burn rate.

Managing Staff Spend

You must manage this high fixed labor cost by maximizing agent utilization before adding headcount. Don't hire based on pipeline projections; wait until the recurring revenue supports the salary plus benefits. A common mistake is over-staffing slow overnight shifts when demand is low.

Tie hiring to confirmed subscription revenue.
Review shift scheduling for efficiency gains.
Ensure high utilization rates per agent.

Break-Even Impact

Since labor is the largest fixed cost, your break-even point hinges on covering that $62,083 monthly payroll quickly. If your average monthly subscription fee is $300, you need about 207 active customers just to cover salaries before factoring in rent, software, or variable cloud costs.

Running Cost 2 : Central Station Rent

Facility Rent Floor

The required monitoring facility costs a fixed $12,000 monthly, regardless of how many clients you monitor. This cost is non-negotiable overhead for securing a hardened, reliable space for 24/7 operations. You must cover this before seeing any profit.

Facility Budget Input

This $12,000 rent covers the physical, hardened location for your security agents. This is a critical fixed overhead, sitting alongside the $5,000 software fee. To budget this, you need signed lease terms for the required square footage. This cost exists even if you have zero customers on day one.

Fixed monthly rent: $12,000
Covers hardened facility needs
Independent of customer volume

Rent Optimization Tactics

Since this is a fixed cost, you can only lower the base rate, not the per-customer cost. Negotiate longer lease terms, maybe 36 months, for a better effective rate. Avoid over-specing the space too early; ensure the footprint scales reasonably with your initial 9 FTEs. It's defintely better to secure space slightly small.

Negotiate long-term leases
Avoid premium real estate initially
Ensure space supports hiring plan

Total Fixed Overhead

This $12,000 rent, combined with $62,083 payroll and $5,000 software, means your baseline fixed operating expense is $79,083/month before customer acquisition spend. You need significant recurring revenue just to cover the physical infrastructure and staffing.

Running Cost 3 : Cloud Infrastructure

Variable Cloud Cost Hit

Cloud infrastructure costs tied to video handling are highly variable and represent a major margin pressure point. Expect these expenses-storage, bandwidth, and processing-to consume 50% of gross revenue right from the start in 2026. That's a huge chunk of your top line before anything else.

Inputs Driving Cloud Spend

This cost covers ingesting, storing, and analyzing client video feeds 24/7. Inputs depend heavily on total active camera hours and data retention policies. Since it scales directly with revenue, managing it means controlling customer usage volume. If you onboard 100 clients paying $500/month, expect this cost to be around $250/month per client initially.

Total video stream volume (hours)
Data retention requirements (days)
Processing load per stream

Controlling Bandwidth and Storage

You can't skip storage, but you can optimize how you pay for it. Avoid over-provisioning for peak load; use tiered storage solutions. A common mistake is failing to compress data before transit, spiking bandwidth fees. Aggressive compression standards can cut storage costs by 20% to 40% if managed defintely well.

Implement aggressive video compression
Negotiate bulk data transfer rates
Audit storage tiers quarterly

Margin Reality Check

Because cloud infrastructure is 50% of revenue, your gross margin before labor is only 50%. This leaves very little room to cover $62,083 in payroll and $12,000 in rent. If revenue projections slip by even 10% in 2026, you'll face immediate cash flow constraints unless you secure better infrastructure pricing now.

Running Cost 4 : Sales Commissions

Commission Burn Rate

Sales commissions and payment processing fees are your biggest variable drain. In 2026, these costs are expected to eat up 80% of gross revenue. This percentage should dip a bit as you sign more customers, but it remains the dominant cost of sale. You need high lifetime value (LTV) to cover this upfront expense.

Cost Drivers

This 80% projection covers two things: the sales team's payout for closing the deal and the standard fees charged by credit card processors. To calculate this accurately, you need the commission structure (e.g., percentage of first month's subscription) and the average payment processor fee, often around 3% of the transaction. This cost scales directly with every new dollar of revenue.

Sales commission structure
Payment processing rates
Monthly recurring revenue (MRR)

Managing Sales Cost

Given the high burn rate, you must control upfront sales incentives. If you rely heavily on commissioned reps, structure payouts based on realized revenue, not just signed contracts, to manage cash flow risk. A common mistake is paying full commission immediately. Consider paying 50% upfront and 50% after the customer pays their third invoice. This is defintely safer.

Tie payout to collected revenue
Negotiate processor rates lower
Incentivize direct bank transfers

Scaling Impact

Since this cost starts at 80%, your gross margin before fixed costs is only 20% initially. This means you need significant volume quickly to cover the $12,000 rent and $62,083 payroll. If your average monthly subscription is $400, you need about 230 customers just to cover the variable sales cost before hitting operational breakeven.

Running Cost 5 : Customer Acquisition

Budget and Target

Your initial marketing spend is set at $120,000 annually, breaking down to $10,000 per month. This budget directly supports your goal of acquiring customers at a Customer Acquisition Cost (CAC) of $1,500 in Year 1. Honestly, that $1,500 target is high for a subscription model, so watch that metric closely.

Acquisition Spend Breakdown

This $120,000 covers all planned marketing outreach for the first year. To hit your $1,500 CAC goal, you need to acquire exactly 80 new subscribers over 12 months, assuming zero churn. This cost must be covered before payroll and rent start eating into cash flow.

Annual Budget: $120,000
Monthly Spend: $10,000
Target CAC: $1,500

Managing High CAC

A $1,500 CAC is only sustainable if your average customer lifetime value (LTV) is at least three times that amount. If initial customer conversion is slow, you'll burn through the $10k monthly budget fast. Avoid broad digital ads; focus marketing spend only on proven channels serving auto dealerships or storage facilities, defintely.

Payback Period Check

You must track the payback period for this $1,500 acquisition cost against your monthly recurring revenue (MRR). If the payback is over 10 months, you'll need significantly more working capital to survive the initial ramp-up phase before cash flow turns positive.

Running Cost 6 : Software Subscriptions

Fixed Software Cost

Software subscriptions are a non-negotiable fixed cost of $5,000 monthly for your monitoring platform. This fee supports the core technology needed to watch client feeds and dispatch alerts, impacting profitability immediately. You need this tech before your first customer signs up.

Platform Cost Detail

This $5,000 covers the specialized monitoring platform and necessary tools. It's a fixed operational expense, unlike variable cloud costs (which start at 50% of gross revenue). You need vendor quotes to confirm this rate holds for your expected user volume. Anyway, this is your baseline tech overhead.

Fixed monthly software fee
Supports core monitoring tech
Essential before first customer

Managing Tech Spend

Reducing this fixed fee is tough since it's tied to specialized monitoring tech. Avoid paying for unused seats or features you won't deploy in Year 1. Negotiate multi-year contracts if you see stable growth, but watch out for long lock-ins if you pivot fast. That's a common mistake.

Negotiate multi-year pricing
Audit unused software seats
Benchmark against industry peers

Fixed Cost Leverage

Because this $5,000 is fixed, every new customer you onboard adds high margin toward covering it, assuming variable costs aren't hit yet. This cost sits alongside $12,000 rent and $3,500 insurance/licensing, meaning your minimum monthly burn before payroll is substantial.

Running Cost 7 : Insurance and Licensing

Compliance Baseline

Your fixed operational compliance costs run $3,500 per month for necessary coverage and licensing. This covers essential Cyber and Liability Insurance plus required Professional Licensing Fees. Don't mistake this required fixed outlay for variable expenses, as it hits your P&L every month regardless of sales volume.

Cost Inputs

This $3,500 monthly spend is non-negotiable for running a surveillance monitoring service legally in the US. The largest part is $3,000 for essential insurance policies covering cyber risk and general liability. The remaining $500 covers mandatory professional licensing fees required to operate.

Insurance Coverage: $3,000/month
Licensing Fees: $500/month

Managing Spend

You can't cut professional licensing fees, but insurance premiums are negotiable over time. Shop your Cyber and Liability Insurance quotes annually, especially after Year 1 growth proves your risk profile is improving. Avoid letting policies auto-renew without a competitive review; savings of 5% to 10% are defintely possible.

Shop insurance quotes yearly.
Review coverage limits annually.

Fixed Cost Weight

At $3,500 monthly, this compliance cost is small compared to the $62,083 payroll, but it's a critical baseline. If you start with only 10 customers paying $200 each ($2,000 revenue), this fixed cost alone consumes 175% of that initial revenue base.