If you’re in any way involved in the security alarm industry, you’ve probably noticed that in recent years DIY home security has taken the market by storm. With the advent of the Internet of Things taking hold, more and more consumers are taking advantage of DIY home security systems.
As a result, we’ve seen a larger share of the market trending towards do it yourself alarm systems and shying away from traditional security alarm providers.
While this has been alarming to some alarm company owners, it has also provided them with new opportunities.
DIY Home Security’s Impact on Traditional Alarm Companies
The increasing popularity of DIY home security has forced traditional alarm company owners to take a hard look at what they are doing and reassess their capabilities and offerings.
For some security business owners, DIY home security systems have made now an ideal time to sell their company and exit the market. For others, it’s been the impetus for integrating new products and services into their alarm company’s offerings.
So what’s the right option for your alarm business? Do you sell your business to a buyer who is willing to take on the challenge of upgrading the company to keep up with the Internet of Things and increasing consumer demand for DIY home security solutions? Or do you incorporate DIY security into your current business model?
Incorporating DIY Security Into Your Traditional Alarm Company Business Model
Choosing between selling or upgrading your business can be challenging, and is not a decision that should be taken lightly.
If you are pondering whether to sell your alarm business or take on the task of incorporating DIY security offerings into your current business model, here are a few important factors to consider.
1. Do you have the funds to add a new DIY security segment to your business?
Adding new product and service offerings always requires an up-front investment. You’ll need to have finances available to purchase products and system components, update infrastructure, invest in training for staff members, and market your new offerings to consumers, among other things.
If your business is stretched thin as it is, it may not be in your best interest to move forward with incorporating DIY home security into your current alarm company.
2. Do you have (or can you hire) staff members to support your DIY home security offerings?
If you choose to incorporate a DIY security sector within your alarm business, you’ll likely need to provide more substantial customer service to the customers you work with. As a result, you’ll need to train current staff members – or hire new employees – to take on the task of aiding new customers when they inevitably turn to you with questions about installation, testing, account maintenance, and more.
Responsive customer service is a must when it comes to DIY alarm products and services. In order to be successful with a DIY segment, you’ll need to be fully prepared to provide the support that your customers need.
3. Could you successfully market new DIY home security offerings to new customers?
If you’re a traditional home security company, many of your current customers likely have traditional home security systems. While some may want to transition over to DIY home security or might take advantage of new home automation features you may offer, the reality is you’ll need to go after new customers in order to grow the DIY home security segment of your business.
You’ll need to be well prepared to market your new DIY alarm system offerings and reach out to new customers while continuing to provide the same level service and attention to your current customers that they’ve come to expect.
4. Are you knowledgeable enough to provide competitive services in the DIY home security market?
One of the biggest challenges of DIY home security systems for traditional alarm company owners is accommodating a completely different style of alarm security technology. Though the systems perform similar tasks in terms of home security, DIY systems integrated with the Internet of Things have technical elements that can be challenging to understand.
If your business takes on the task of providing do it yourself home security systems to consumers, you’ll need to be well versed in all the technical elements of the new systems you are offering. You’ll want to make sure your team is knowledgeable enough to provide the technical assistance and customer service your new clients will need, otherwise the new segment of your business may not be able to keep up with what competitors are offering.
5. In the long run, would it be more profitable to sell now?
There are a number of reasons why DIY security and the Internet of Things have made now a good time to put traditional alarm companies on the market. DIY security systems and the Internet of Things have caused traditional alarm companies to face increased competition in the home security market. If you’re not entirely confident that your company is equipped to take on the challenge of incorporating DIY home security into your offerings, selling your company may be the better option.
Additionally, if you were planning to exit the industry sooner rather than later, selling to a buyer who is interested in taking on the task of upgrading the company may be the more profitable way to go. The truth is, it will likely take a while to see the profits and the return on your investment in DIY security. If you don’t think you’ll be around for long enough to harvest the fruits of your labor, you may want to consider the option of selling.
Is DIY Home Security In Your Company’s Future?
Whether you see it as an opportunity or as a challenge for your company, the reality is that DIY home security is here – and it’s here to stay.
It’s important to weigh your options carefully as you determine the best course of action for your business, whether it’s incorporating DIY security system offerings into your existing business or selling your alarm company to a qualified buyer who is better positioned to take on the task.
Not sure of the next step for your business? Caught on the fence between upgrading and selling? Advice from industry expert Rory Russell could help you make the right decision.
With decades of experience in the security alarm industry, Rory knows the industry inside and out. He can help you understand how much your company is worth, and help you plot the most profitable trajectory for your alarm business moving forward.
If you decide that selling your alarm company or some of your accounts is the way to go, Rory can help you position your company for a profitable sale and connect you with qualified buyers willing to pay top dollar for your business.
Give Rory a call today at (800) 354-3863 (his personal cell number with 24/7 availability) to get the conversation started.
Interested in learning more about the DIY home security, the Internet of Things, and how they’re impacting the security alarm industry? The following articles are a good place to start:
Why Your Alarm Business is Becoming Obsolete – And What You Should Do About It – Explore two likely reasons why your alarm business is starting to seem outdated, and review our suggestions for the next steps to take if you feel your company falling behind.
Why Alarm Companies Should Consider Selling During the Internet of Things Revolution – Selling isn’t your only option as the Internet of Things continues to take hold, but it may be an opportunity worth taking advantage of. Find out if selling now is the right option for you and your business.
Benefits of Smart Home Security Features – Upgrading to incorporate new offerings and features can benefit your company and your customers. Read through our handful of reasons why you may want to seriously consider incorporating smart home security features during the IoT Revolution.