Like many commercial fire and safety service providers, security integrators perform large-scale installations of expensive detection and notification equipment. These installations bring a flood of money into the business at once. When they happen frequently, your business thrives. But if they slow down, you will need to have a reliable stream of regular revenue established to support your business.
That is why it is important for security integrators to build recurring monthly revenue into their business strategy. Here’s a closer look at how doing this impacts your security business for the better:
It Keeps Security Integrators Steady Through Good Times and Bad
One of the true marks of a successful business is its resilience. It’s hard to start a business, but it’s even harder to keep it running! To have a business that continues to grow and thrive over the years shows that the services you offer are always in demand. It also shows that you manage your business well and know how to set it up for success.
It is very important for security integrators to keep this in mind when business is booming. It’s easy to let other forms of income slip down or even off the priority list if you are completing many installations or specialty projects. While these bring great money into the business, they are not consistent. When something like the pandemic or an economic recession happens, these big-ticket items can stop coming. But if you already have a regular revenue stream in place, you can stay steady or even keep growing through the most difficult of times.
RMR Helps Security System Integrators Establish a Relationship with Their Customers
If your company has a nice flow of recurring monthly revenue coming in, that means you are revisiting your customers throughout the year. Unlike big installations where your security integrators go in, install the systems, and then leave, recurring services allow you to build relationships with your customers over time. By reappearing a few times a year to inspect and maintain the safety systems, you are able to establish your company as a trustworthy authority looking out for your customers.
When you are visiting your customers more often, you have the opportunity to be the first to notice when upgrades or repairs are due to their systems. As you have already proven that you can be trusted as a safety advisor, you will be able to bring these needs to the customers’ attention and gain the approvals you need to complete the work faster. This means that your recurring monthly revenue can also become a source of additional income at any point throughout the year.
Investors Love Security Integration Businesses with Positive Cash Flow
In today’s hot acquisitions market, many security systems integrators are choosing to grow their businesses by selling them! Once they grow to the point that they are able to catch the eyes of investors and other big industry players, they sell to interested parties who are ready to keep them growing. Backed by the financial and industry connections and resources the buyers bring into the deal, the security integrators who sell and stay involved can proudly help their businesses reach new levels of success.
Whether you’re ready to sell your business or not, it is important to understand that your recurring monthly revenue will decide how many options are available when you are ready to exit. Investors want to know that they can count on a steady flow of cash from the businesses they purchase. While a thriving integrated security systems installation business might still receive attention from buyers, today’s market is more interested in companies that are reliable year-round. The more consistent your cash flow, the more likely you are to attract a large offer when it’s time to make a deal.
Want to Know What Your Business is Worth? Call Rory Russell Today!
When security integrators focus on building recurring monthly revenue into their business plans, they are setting themselves up for long-term success and stability in good times and bad. RMR keeps your business in front of its customers throughout the year, helps strengthen relationships, and entices investors when it comes time to sell.
The right strategy for RMR can be the key to a thriving security integrators business that stands strong in an ever-changing economy.
If you are interested in learning more about what your business is worth or how to add more sources of recurring monthly revenue to your business before you sell, contact Rory Russell today!
As a former owner of an alarm company himself and a fire and security broker with over three decades of experience, Rory can help you position your company to receive the best offers on your terms. Call him directly at 800-354-3863 to get started today.
Looking to learn more about establishing a healthy stream of recurring monthly revenue for your integration business? The following resources are a good place to start:
Commercial Security: The Secret to Growing Your Alarm Business RMR – Learn about available opportunities for recurring monthly revenue within the commercial security industry.
3 Places to Look for Valuable Contracted RMR – Find out where you can source additional contracted recurring monthly revenue for your business.