This is the time of the year to consider your New Year's resolutions.
Here are a few items that every alarm / security professional should
consider, not necessarily in order of importance.
1. Update your security contracts. If you're still not using contracts then
don't bother reading on; it's hopeless.
2. Check your insurance needs and coverage. This includes your workers
comp, general liability, and errors and omissions. Maybe it's time to
consider life insurance, disability, long term too. And look for
competitive prices for your health insurance.
3. If you're not operating as a corporation or limited liability company
then you need to take care of that January 2. You cannot continue to
operate in your own name or a DBA or partnership. Ask your accountant if
you should consider changing your corporate structure.
4. Make sure your license is still good. Even if not required try and stay
on top of continuing education. Attend your association meeting. These
usually have informative presentations and are worth the time spent.
Joining your local association is also a good start. Offer to participate
in your local association; they need your help.
5. Review your accounts receivables. Work out a procedure to become more
aggressive collecting your receivables, whether in house or sending it to
local counsel. Do not carry subscribers who are in default, which means
falling out of their regular payment schedule or more than 90 days in
arrears.
6. Focus on your recurring revenue; it's the lifeblood of your business.
Not only will that recurring revenue eventually put you in the operating
black, but it will continue to increase the equity value of your business.
Balance your sales [which does not offer recurring revenue] with other
services you provide that does include recurring revenue, such as leasing,
monitoring and service.
7. If retirement or sale is remotely in your future start thinking of an
exit strategy If transition to family members is your plan than perhaps you
need a Trust and should start transferring stock to that Trust, or to your
kids now. If you think you might sell out then you need to start running
your business like a business. In either event, you should be increasing
your recurring revenue. Consider offering alarm verification before its
required in your jurisdiction. CCTV offers that and central station
monitoring of your CCTV is a great way to create recurring revenue. Fire
Alarm Inspection contracts is another winner for recurring revenue. Both of
these contracts are offered on my web site as standard contracts.
8. Try to pay down debt. Try not to sell off your recurring revenue to
raise capital.
9. Make sure you are getting the best prices from your suppliers, and that
includes your central station and your equipment suppliers. Time to
renegotiate or look at their competition. Make sure all of your monitoring
accounts are on your telephone line or that your central station agrees in
writing to transfer that line to you if you want to change central
stations.
10. Get my contracts; all of them. They will make you lots of money and
protect your business. Did I mention that one yet?