How to Grow Your Security Business: 3 Methods You Need to Try

Graph showing growth overlaid on top of an image of a person working at a computer. The person is touching a point on the graph with their pen.

As the security business continues to evolve quickly, putting your company on a path to steady, sustainable growth can be challenging. At AFS, we’ve worked with hundreds of companies. In our experience, firms that successfully grow their business share some of the same characteristics and strategies.

Diversify Services – But Recognize When it’s Time to Sell

Diversifying the services your security company offers is arguably the most effective way to grow your business. Whether it’s an expansion into risk management or security system integration, many options exist. However, you’ll need to do your homework to determine where the industry is trending and how your current business dovetails with potential new ventures.

It’s also essential to examine your existing business closely to identify when it makes sense to sell part of it based on market conditions. For example, the current industry trend is for smaller companies to sell the monitoring branches of their business rather than spend the resources necessary to compete with wholesale monitoring firms. Think of it as addition by subtraction because selling off a particular service allows for the reallocation of time and money to other methods of growth.

Mergers and Acquisitions

According to industry experts, the security business merger and acquisition market was strong in 2023. There was a significant amount of consolidation activity generated by private equity- backed buyers in the residential and commercial markets. The outlook in 2024 for potential buyers in the M&A market remains strong.

AFS President Rory Russell is confident that the M&A market is currently booming. “It seems to be a really great time to be selling your business. There’s a plethora of money out there right now, in private equity especially. Interest rates are a little higher, but it really hasn’t really affected the market.”

For security business owners who are ready to make an acquisition or work on a potential merger opportunity, having an experienced broker on your side is invaluable. At AFS, our team can help you move swiftly and carefully to determine and provide suitable financing options, assist you with negotiations, and conduct due diligence.

Define Business Strategy, Know the Market

To grow a security business effectively, owners need to take an inventory of the security services they offer and understand their overall strengths and weaknesses. Once this is done, creating a strategic plan that sets realistic goals and a timeline to achieve them provides a template to track progress and make proactive changes on the fly if needed.

But these plans aren’t worth the paper they’re printed on if you don’t understand your security market sector. Owners need to keep up with the latest trends, focus on adding value for their clients, and be ready to roll out new products when they become available.

Don’t forget to keep an eye on your competitors so you can make more informed business decisions. An important aspect of this research is that it helps strategically set prices. If you’re too high, you’ll likely lose business. But if you offer a competitive price point, you’ll spark growth. That doesn’t mean you need to be the least expensive provider in the market—customers will stick with companies that provide quality products and excellent customer service who charge a bit more.

Put Your Company in the Best Market Position

AFS president Rory Russell taps into his decades of experience in the alarm, security, and integration space to help clients align their companies with the right market sectors and proactively expand their businesses. Rory’s background in the industry is a huge asset if you need guidance on all aspects of merger and acquisitions. If you’re planning to expand or sell your business, contact Rory today to talk about how AFS can collaborate with you to ensure the process runs smoothly and meets your goals.