5 Tips to Improve Your Security Alarm Company’s Value

As a business owner, it is important to know your company’s worth and have a solid understanding of its value. This is especially important if you are considering selling your business in the future.

Even if you are not looking to sell, knowing your worth is crucial when figuring out how to increase its value.

Through our years in the industry, Egan Security Group has compiled these 5 tips to improve your security alarm company’s value:

Document everything and make regular reporting a priority

Make sure to document all strategies and processes your company is using. Stay organized and keep track of what is working and what is not. If you have a certain way of doing something and it has been successful, keep it up. At the same time, make sure to report on your successes and failures. Keeping up to date on your reports can help you keep track of how you are truly performing. It will also make your company more appealing with buyers if you are considering selling.

Find sources of additional recurring monthly revenue (RMR)

Recurring monthly revenue is the backbone of any profitable security alarm company. In fact, it is common in the security alarm industry to calculate your business’s value on a multiple of the RMR you generate. The more RMR your business brings in, the more value your company will have now and when you are ready to sell. A straightforward way to find additional sources of RMR is to diversify your customer base. Try exploring new service areas and integration, train your sales team to always upsell, and get creative. Consider starting a customer referral program or running a perk-based promotion. Play around but remember to document and report everything you do to measure performance!

Focus on customer retention

Growing your client base is great but being able to retain your current customers is necessary for any successful company. Make sure you are offering a great first impression with new customers, listen to their feedback and be empathetic to their situation, and find ways to keep your products and services at the top of their mind. Being able to show a low attrition rate is a key indicator of the success of your company. By focusing on customer retention, you will easily build upon your business’s long-term value.

Stay on top of market trends

Knowing what is going on in your industry is important to see how your business is performing compared to the competition. It can help you to identify new opportunities and insure you will not get caught off guard in a conversation with a potential customer or buyer. Use these trends to find opportunities for change and grow your business by implementing them.

Understand your unique selling point

What sets you apart from other companies in the security alarm industry? You need to know what makes you different from or better than your competition. Make sure you have a clear understanding of your company’s strengths and weaknesses. Use this to determine why a customer should choose your business over another. Being able to highlight what makes you different can easily add value your business and inspire potential customers and eligible buyers to choose you.