December 21, 2010

 

 

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1. Update your security contracts. If you're still not using contracts then don't bother reading on; You're hopeless. All contracts, except for Sales, are designed to have recurring revenue.  Your goal for 2011 should be significant RMR growth for your company, and for you.  Only the Kirschenbaum Contracts bearing that trademark assure you that you are getting the most up to date approved contracts.  This year we added the Commercial Fire All in One.  If you do commercial fire this contract is a most for you.  Get it today.  It covers the design, permitting, sale, installation, monitoring, inspection and service of an AHJ approved commercial fire alarm system.

 

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 local association meetings. These meetings 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 and you'll get a lot more out of your membership experience.

 

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 30 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.  If you are in a Dealer Program that encourages, or worse, requires, that you sell the Program your recurring revenue, reassess that Dealer Program.  You need to retain your recurring revenue.

 

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?  www.alarmcontracts.com