A nationwide survey of security dealers and installers conducted earlier this year revealed that one-third of owners have considered selling their business, although 42% have no succession plan. This comes from a study from Parks Associates, Dallas, and its Security Dealer Perspectives: Views from the Front Line.
Elizabeth Parks, President and CMO, Parks Associates, said the reality of the market is that there’s a decline in housing and other factors potentially affecting profitability. “In response, many security dealers focus on reviving or increasing their sales to commercial environments, or they are looking to set the business up for sale,” Parks said. “To thrive, dealers must avoid high attrition, increase fees as possible and seek additional revenue sources.”
Whether the time has some to sell your company or you’re preparing for the future, positioning your company for profitability is always a key goal. The cloud can help you create a healthier, more profitable company – so when you are ready to sell you get the most for your business. Part of developing an exit strategy is a strong focus on managed services and recurring monthly revenue (RMR), delivered through the cloud.
Solid revenues from services
Additional revenue sources are readily attainable with the cloud, with the ability to scale and add new services from a single management platform. Intrusion, video, access control, critical environmental monitoring, energy management and other services can be offered to your customer as managed services – boosting your RMR. In addition, when you standardize on a single cloud platform, your technicians and personnel become knowledgeable about the offerings and training is simpler.
There’s another element at play here when it comes to establishing a strong company: central station monitoring isn’t as valuable as it was years ago. Monitoring revenues have eroded and prices dropped – it’s no longer the revenue-generating proposition it was in the past. Customers may opt for self-monitoring from mobile platforms, especially residential or multifamily, instead of central station monitoring.
Shifting to a managed services mindset brings predictable, consistent revenue streams. When you focus on services, you gain more RMR, building better equity in your company. The more subscribers you have with multiple services, the bigger your RMR takes. In addition, customers with multiple services are less likely to leave your company – so it’s easier to avoid attrition and churn. Services make for a longer-term, stickier customer, so you become an indispensable service provider.
Maximize the value of your business with a cloud management platform that has the flexibility to add services quickly. Your customer base – and your business – becomes stronger and more attractive to investors or buyers.
The Connect ONE® cloud platform is the only management interface your customers need to add services – while you boost the value of your company.
Reach us at firstname.lastname@example.org or call 866.976.3520 to learn more.