For years, you’ve been working hard to keep your alarm business healthy and growing. From implementing a successful succession plan and working hard to prevent attrition to demonstrating to customers that you’re a reputable company they should stick with, you’ve been making consistent efforts to help your organization thrive in a competitive market.
But in this day and age, it’s becoming increasingly difficult to stay ahead in the security alarm industry. Even if you feel your alarm company is at the top of its game, operating at full capacity, the unfortunate reality is that there is a good chance you may still be falling behind.
As frustrating as it is, the current market has proven this to be true – and there are a few reasons this is the case.
2 Reasons Your Alarm Company is Beginning to Appear Outdated
1. The Internet of Things
Technology is changing, and changing FAST. From washers and dryers to air conditioning systems and coffee makers, nearly everything in our daily lives can be controlled and adjusted via smartphone. The “Internet of Things” has taken hold, and with companies like Google leading the way, there’s no turning back.
Consumers now expect to be able to monitor and adjust their security systems and other components of their homes remotely, through the use of smartphones, apps and the Internet.
For security alarm business owners, this means immense – and frequent – technological upgrades are in order. While your customers may be satisfied with your current offerings, chances are they won’t be for long. Consumers are rapidly shifting away from traditional alarm security systems and towards home automation. If your customers start to feel their home security technology is falling behind, they will turn to a company that is more in touch with the “Internet of Things” and can give them what they are looking for.
2. DIY Security Companies
Do it yourself security systems have been becoming increasingly popular in recent years. Rather than pay a monthly fee for security alarm monitoring services, many consumers would rather pay a one time fee and install a security system themselves. What’s more, many of these systems can be integrated with smart technology so consumers can keep an eye on their homes and make adjustments on the go, without the help of an alarm company.
These DIY alarm system options have completely changed the game in the security alarm industry, making it much more competitive. With many affordable DIY security alarm products on the market and consumers looking to save on their monthly expenses, it does not come as a surprise that DIY security companies are now a top competitor for traditional alarm companies, making their traditional security alarm offerings appear outdated.
What To Do If Your Alarm Business Is Struggling to Compete
While the threat of your alarm company becoming obsolete may be discouraging, the good news is you can take action to avoid becoming obsolete. There are two main, overarching options you have when it comes to being proactive about getting your business back up to speed:
1. Upgrade Your Infrastructure & Offerings
If you intend to stay in the security alarm business with a substantial customer base for years to come, updating your company in order to continue competing successfully is likely your best option. The key to updating successfully is to stay in touch with your clients and customers. What are they looking for in a security alarm provider? What features, upgrades and services are they interested in? How can you adapt and integrate the Internet of Things?
Though there are costs associated with these updates, upgrading and taking advantage of the Internet of Things provides you with the opportunity to retain customers you may have lost otherwise – and gives you the chance to tap into additional sources of recurring monthly revenue you may have missed out on otherwise.
Interested in upgrading and updating your alarm business to keep pace with the innovations happening in the industry? The following resources are a great place to start when it comes to exploring your options and next steps:
- Benefits of Smart Home Security Features: 8 Reasons You Should Consider Upgrading Your Alarm Business – Learn about the advantages of incorporating some of the features brought about by the IoT revolution and consider whether these features are a good fit for your organization.
- Should Your Alarm Company Incorporate DIY Security Options? – Review a few important things to consider if you’re thinking about adding DIY security options to your alarm business’ list of offerings.
- Security Alarm Features Today’s Consumers are Craving – Take a look at a handful of features and offerings that are popular with today’s consumers so you can determine whether or not you’re up for the task of incorporating them into your existing business.
2. Sell Your Alarm Business
If upgrading to incorporate service upgrades and home automation technologies seems overwhelming or unappealing, or if you’re planning to sell your alarm business in the very near future, keeping up with the Internet of Things might not be the best option for you or your company. If this is the case, now is the ideal time to sell your alarm business.
Putting your business on the market will give you the opportunity to sell the well-established company you’ve worked hard to build for maximum profit to a buyer who is interested in implementing the services and features you are not. By finding the right buyer, you can exit the industry without enduring the hassle of upgrading your infrastructure BEFORE your current services and offerings become outdated. Plus, you can ensure that your customers ultimately have access to the new technologies and features that have been brought about by the Internet of Things.
Think selling your alarm business is the more appropriate option for your company? Be sure to check out the following resources:
- Why Alarm Companies Should Sell During the IoT Revolution – Find out what makes now an ideal time to sell your alarm business if you’re ready to step away from the industry.
- 8 Questions You Must Answer Before Selling Your Alarm Business – Alarm and security business owners should ensure that they know the answers to these 8 key questions before taking steps towards selling.
- How to Know When It’s Time to Sell Your Alarm Company – On the fence about whether to sell or upgrade? Review the 6 factors that typically indicate selling is the better option for you.
Don’t Let Advancing Technology and The Internet of Things Get the Best Of Your Alarm Company
If you are concerned that your company is at risk of becoming obsolete as technology continues to advance and the Internet of Things becomes increasingly mainstream, don’t wait to take action! You have options, and there are steps you can take to help keep your company ahead of the game.
Need help figuring out the right next step for your business? Give Rory Russell of AFS a call today. With decades of experience in the alarm industry and as an alarm broker, Rory can help you determine which option is right for your alarm business and facilitate the sale of your alarm company if that is the route you choose.
Editor’s Note: This content was originally published in October 2016, but has been updated as of March 2021.