As a business owner, you know that it’s unwise to put all your eggs in one basket. This is where the idea of “diversification” comes into play. By diversifying your alarm company, you can become more stable and withstand whatever events may come your way. Let’s dive into what you will gain by building a diversified alarm company and how you can start creating one.
The Benefits of a Diversified Alarm Company
You want to generate profits, but at the same time, you need to balance risk and reward. Ultimately, you want to grow a company that can keep going through the ups and downs of business. Diversification can help you do that. Here’s how:
- Diversification builds resilience to withstand downturns. The economy cycles up and down, and different sectors cycle differently. Often, one sector may be booming while another is in decline. Diversifying your business brings protection by adding other revenue streams that keep flowing when others have dried up.
- It lets you play offense, not defense. It can be difficult to run a business that’s underperforming. Worries about low revenue will sap your ability to lead. You’re running defense all the time, and it’s exhausting. Having a diversified business means you’re now on the offensive. You can keep the company moving forward since you have other sources of income. That income takes the pressure off and lets you keep thinking strategically.
- It increases your visibility in new markets. Additional revenue streams mean your company is in new markets, gaining visibility in those markets. This can drive further business growth as new customers try your products and services and then share their positive experiences.
How to Build a Diversified Alarm Company
Diversification will look different for each company since it depends on your starting point. Here are suggested additions that can create new sources of recurring monthly revenue (RMR).
Add a market segment
If your company focuses on the consumer market, think about moving into business security or vice versa. If you focus on offices, consider manufacturing facilities. Or if you focus on single-family housing, look at multi-family dwellings
Add a service
Consider adding fire alarms, access control, CCTV, or another service.
Add new technologies
The Internet of Things has spurred growth in home automation. You can add new RMR sources by offering related service upgrades and add-ons. There’s also growing demand for cloud-based services.
Repackage what you offer
Take a look at your products and services with an eye towards bundling what’s popular. Price your bundles for profits and sales.
AFS Can Help You Add Revenue Streams
Rory Russell at AFS knows the ins-and-outs alarm company business. With over three decades of experience, he can help you identify and add new sources of recurring monthly revenue to build a high-value, diversified alarm company.
If you’re ready to strengthen and diversify your alarm company business, contact Rory Russell at 888-551-0476 or online to get the conversation started today.