The commercial security industry is growing and shows no signs of stopping in the foreseeable future. That’s great news for the industry, but it doesn’t necessarily mean your own business will grow in value. If you’re looking to strengthen the value of your security consulting firm, you’ll need to understand the factors that influence your company’s value. What are those factors, and how do you leverage them?
Security Sales & Integration (SSI) recently posted an insightful article by James Mahoney of Huron Capital that outlines the three Ps that drive a company’s value. In this article, I’ll take a look at those factors and show you how Circadian Risk can be a big part of driving your company’s value upwards.
3 Keys to Maximizing Your Company’s Value
In the SSI article, James Mahoney says there are three key factors that drive your security company’s value: People, Processes and Profits.
How deep is your leadership team, and how well do they work together? Are they ready to lead your company without you, and have they gone through trials by fire together? If you sell your company, the leaders under you will need to provide consistency, stability and forward momentum in the midst of transition. Choose your leaders well, and invest in their leadership skills. It’s also important to have good people on the front lines, because they’re the face of the organization and have the greatest impact your company’s reputation.
At the same time, you need to be very discerning about the buyer you choose. Make every effort to ensure that they have the people in place to maximize your valuation.
Do you have established processes for all of your core business activities? A strong business has written processes for hiring (and firing), sales, marketing, customer support, billing and risk assessment. Undefined processes means disorder, unpredictability and miscommunication. Those are big warning flags for anyone interested in investing in your company.
Don’t just focus on risk assessment or sales processes and stop there. Your security firm is a complete business. The value of your business depends on the strength of your entire business.
When anyone looks to invest in your business, they will assess your company’s track record for generating consistent and predictable growth in cash flow. That’s done by using a financial calculation and an intrinsic assessment. The financial calculation is a hard number, but the intrinsic component is more subjective.
Circadian Risk Helps Boost Your Business Value
Circadian Risk is a key component of boosting your company’s value. Our physical risk assessment software increases your financial and intrinsic components of profit, and improves your business processes. Let’s start with processes.
Improving your business processes
Many security consultants don’t have a standard, written process for doing their physical risk assessments, but investors and buyers want to see a ship-shape operation. The Circadian Risk assessment tool automatically takes you through the entire risk assessment project using established best practices.
- Interview. Provide an online questionnaire to your clients before you ever set foot onsite. You’ll gain a thorough understanding of the site before the inspection.
- Inspection. Capture all vulnerabilities and deficiencies as you inspect the building. Document issues with photos, geolocation, and much more.
- Reporting. What typically takes most security consultants days or weeks to do, Circadian Risk can automate in seconds at the click of a button, thereby allowing you to focus on remediation and recommendations.
- Corrective actions. Detailed corrective action plans are automatically included in each report, which empowers your customers and creates an opportunity for cross-selling and upselling.
On top of that, Circadian Risk’s automation and digital technology combine to make your risk assessment process as efficient as possible. It isn’t unusual to cut your assessment and reporting time by as much as 80%.
All of this impacts your other business processes, improving your customer acquisition, increasing retention and streamlining the sales process.
Increasing your profits
Profitability is measured by revenue and costs. If you increase your revenue, or lower your costs—or both—you’ll increase your profitability. Investors and buyers want to see what your profitability looks like, and they want to see consistent and predictable cash flow. Circadian Risk can help cut costs and increase your revenue. Because our assessment software reduces your non-billable reporting time by up to 80 percent, you’ll see an incredible reduction in operating costs. And because you’ll be providing greater value to your customers—with interactive dashboard reporting and detailed corrective action plans they can easily use—you can raise your rates and increase revenue. And if you’re using Circadian Risk as a selling point, you should also see an increase in sales.
Your intrinsic value is based on customer concentration and long-term customer retention (among other things). A potential investor or buyer wants to see that you aren’t relying on just two or three big customers. They also want to see customer loyalty. Circadian Risk software helps increase both of them. By reducing assessment and reporting time, you’re freed up to take on more customers—and the value you provide helps generate more sales, as well as retain more customers.
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Build Your Business with Circadian Risk
Every business owner wants to increase the value of their security company. That comes by investing in the three Ps: people, processes, and profits. Whether you’re looking to become acquired or simply want to build a better business, Circadian Risk is a key part of boosting your profits and improving your processes.