Starting your own security installation business comes with a lot of perks, but it won’t be as simple as opening up your shop. There is a lot of planning, preparation and analysis involved with starting your own business. Luckily for you, the team at Southwest Automated Security is here to help you become one of the most sought after security installers in your area. Here is how we suggest starting your security business:
Common Problems with Small Businesses
Whether you’re focusing on selling CCTV security systems or you want to be a commercial security installation specialist, you have to keep in mind that nearly 70% of small businesses fail within their first ten years. We have found that the most common issues with small businesses are that they fall short in finding a high demand location, have poor management and experience problems with cash flow.
Before you open up your doors, make sure your community has a demand for the products you want to offer. This will require doing some research, as well as calling local businesses and asking them about their security preferences. Management requires a self-evaluation of your skillset. Things to ask yourself would be, “Have I managed a team before?”, “How did I face the challenges with my team?” and “What was my management result?”
Lastly, but most importantly, you have to have a stable cash flow for your business. One-third of companies fail because their costs become more significant than their revenue. In order to combat these issues, you need to find a way to minimize the time between purchasing inventory, installing equipment and getting paid for the project. This requires a lot of thorough planning, along with keeping clear and transparent communication with your team and customers.
Obtaining a License and Registering
After you’ve found a need in your community for security installation and you’ve developed a plan to manage your team while maintaining a healthy cash flow effectively, your next step is to obtain the correct licensing for your industry. From access control security systems to swing gate operator installations, you will need to have the right licensing and paperwork in order to operate within your state and under the federal government. You can view license requirements here.
Registering the name of your business, along with obtaining insurance, would come next. When you register your business, you establish a formal business name, create a business structure and obtain a federal tax identification number. To find out more about establishing and registering your company name, click here. If you need to find more information about a business structure, click here.
Insurance is one of the most important pieces when you start your business. You want to be covered at all times for any situation that might affect your company’s health. Insurance will help you protect your team from injuries, unforeseen damages to the client’s assets and any other mishaps. For more information, check the laws and requirements in your area regarding insurance for security installation companies.
Security Installation and Distribution Partners
Now that you have everything from cash flow to licensing figured out, all that’s left to answer is how to set up a security company. Security system vendors will likely work with distributors to sell their products. It’s improbable that manufacturers will sell products directly from their website, so you will need to find a licensed distributor to help you find the right products for your business.
At Southwest Automated Security, we have been a trusted security installation distributor throughout the United States. We work with our dealers to find the perfect electronic security solutions for their business model. On top of that, we have exclusive deals and discounts for all of our electronic security dealers every month! Find out more information about becoming a trusted Southwest Automated Security dealer and the benefits of partnering with us.
Creating a security installation business is a lot of work, but partnering with us can make your life a lot easier. We pride ourselves on having a creative, proactive and customer service focused team. The SAS team is eager to help you with any questions or concerns you may have about starting your own business or finding a trusted electronic security distributor. Contact our team today to find out more information about what we can offer you.
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