Building Growth and Equity in Your Security Business
Technology and financing options allow dealers to adapt their business to new models.
Resolution Products is a high-tech design and manufacturing company specializing in wireless technologies for the professional security market and related connected-home (IoT) space.
Some dealers are fortunate enough to have built up a strong enough RMR stream to finance new account acquisitions and keep their business alive. Many others finance their business by selling monitoring contracts to a funding source. In either case, revenue growth is dependent on highly effective lead generation, sales close rates, and minimizing account creation costs. Companies looking to retain a higher percentage of the accounts they create also have to focus on strong service to retain their accounts, and seek unique financing sources to help them effectively grow their business.
Fortunately, new financing options are emerging that give dealers an ability to easily cover the cost of account creation up front, through a loan, but retain ownership of the account at the end of the initial contract term. These new models are aimed at not only helping dealers retain their accounts, but also targeting previously-unserved segments – like renters – that have historically been difficult to address for security dealers. Security Equity Partners and RMR Capital are two examples of companies helping dealers expand and grow their business. They focus on unique financing tools, and their teams target technologies that will help ensure their dealers have success in these new ventures. These financing tools, the same as reduced account creation costs, put/keep operational cash in dealers pockets at the front end.
A dealer interested in pursuing this equity building form of financing to grow their business should focus operations, and select products that help in three key areas:
- Minimizing account creation costs through fast and predictable installations
- Maximizing account retention through smartphone interactive services
- Selecting products that naturally serve the growing renter and DIY markets
Security panel suppliers have been investing heavily, and sometimes effectively, in new panel technology that enables dealers to pursue these lucrative growth strategies, enabling dealers to build long term equity and retained recurring revenue streams.
The Helix security and automation panel from Resolution Products is a perfect example of these advances. Every Helix system is delivered with smartphone interactive capabilities built-in, using a low cost Ethernet broadband connection. This UL compliant panel can be desktop mounted anyplace in the home providing a predictable (no surprises), fast and low cost installation every time. A typical Helix security installation can be accomplished in about 30 minutes with no tools required! This significantly reduces labor expenditures.
The Helix platform also changes your approach to selling security and interactive services. Since every Helix comes Ethernet ready for both interactive services and central station reporting, cellular communications now becomes an upsell option, driven by consumer choice, rather than dealer lack of choice. This can be used to reduce account creation costs further, or as a sales closing tool. Either approach gives the dealer opportunities to differentiate their product and service offering, and maximize consumer satisfaction.
As small business owners, security dealers are continually faced with challenges in ensuring their business remains strong and viable. It is critical to remain informed of new technology and financing tools that help you serve new and expanding market segments. The combination of capital resources from companies like Security Equity Partners and RMR Capital, combined with innovative security architectures like Helix represent a solid up-front cash-infusion and cash-retention platform every dealer should consider for the next phase of security industry growth.
Click here to learn more about Helix.
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