Security Equipment Distributor Business Plan and SWOT Analysis

Security Equipment Distributor Business Plan, Marketing Plan, How To Guide, and Funding Directory

The Security Equipment Distributor Business Plan and Business Development toolkit features 18 different documents that you can use for capital raising or general business planning purposes. Our product line also features comprehensive information regarding to how to start an Security Equipment Distributor business. All business planning packages come with easy-to-use instructions so that you can reduce the time needed to create a professional business plan and presentation.

Your Business Planning Package will be immediately emailed to you after you make your purchase.

Product Specifications (please see images below):

  • Bank/Investor Ready
  • Complete Industry Research for the Industry
  • 3 Year Excel Financial Model
  • Business Plan (26 to 30 pages)
  • Marketing Plan (24 to 28 pages)
  • 425+ Page Funding Directory
  • PowerPoint Presentation
  • Loan Amortization and ROI Tools
  • Three SWOT Analysis Templates
  • How to Start a Business Guide
  • Easy to Use Instructions
  • All Documents Delivered in Word, Excel, and PowerPoint Format
  • Meets SBA Requirements

These days, people are more and more concerned with the security of their homes, offices, and industrial complexes. Given the now much lower cost of security equipment than 20 years ago, many people have taken to installing specialized security equipment within their homes and places of business. As such, security equipment distributors are able to generate moderate gross margins from the sale these products not only directly to the general public, but also through wholesale channels as well. Depending on the type of sale, gross margins typically range anywhere from 20% to 40% depending on the types of products being sold. Major manufacturers across all spectrums have developed security products that include video equipment, specialized doorbells, alarms, as well as equipment that ties in directly with an individual’s Wi-Fi system and cell phone. This is commonly referred to as the Internet of Things (“Iot”), and the number of people that are integrating these products into their homes and offices is expected to increase substantially over the next 10 years as prices continue to decline. The startup cost associated with the new security equipment distributor typically ranges anywhere from $50,000 to $200,000 depending on the amount of inventory that will be carried at the onset of operations. It should be noted that some companies will work on a purchase order basis so that payments are made to manufacturers only once a product is sold. This can substantially reduce the startup costs especially if the security equipment distributor becomes a affiliated partner of a security equipment manufacturer. These businesses tend to be relatively immune from negative changes in the economy.

A security equipment distributor business plan should also be developed if the entrepreneur is going to be raising capital. This business plan should feature a three-year profit and loss statement, cash analysis, balance sheet, breakeven analysis, and business ratios page. As it relates to the security agreement industry, there are about 40,000 companies that actively distribute security equipment on both a wholesale and retail basis. Each year these businesses generate about $8 billion revenue. The growth of this industry is expected to remain stronger than that of the general economy given the fact that demand for security equipment is increasing while the prices are declining. As such, this industry can enjoy growth rates ranging anywhere from 2% to 4% in any given year.

A demographic profile should be included within the business plan as well as it relates to both the individuals as well as businesses that will purchase these products from the company. As it relates to individuals, an overview of the annual household income, median household net worth, and the amount of money spent on security equipment should be included. As it relates to a demographic profile targeting companies, this should include an overview of the industries in which these businesses are operating within, in all revenues, estimated annual profits, number of employees, and the amount of money that needs to spend on security equipment each year.

A security equipment distributor SWOT analysis should be developed as well. This document outlines the strengths, weaknesses, opportunities, and threats that are faced by these businesses. As it relates to strengths, security, distributors are able to sell their products in any given economic climate given that people are always going be concerned security. The barriers to entry are considered to be moderately low in the startup costs are considered to be moderately low as well.

For weaknesses, this is a highly competitive field given that major retailers including Amazon have developed their own proprietary line of security equipment that can be installed in the home. As such, one of the ways that these businesses need to address his weakness is often by providing free installation services coupled with moderately low cost service contracts.

For opportunities, these businesses can expand by integrating services and products that generate recurring streams of revenue. Many manufacturers and associated businesses often have specific programs that provide storage of video images as well as monitoring on a month-to-month basis. As such, the security equipment distributor can develop recurring streams revenue if they are able to act in a reseller capacity for the services.

For threats, the biggest issue that is challenging for many security distributors is that they must remain on the cutting edge of technology at all times. As such, the entrepreneur that starts is that the service needs to continually monitor what new services and products have been produced for the market and integrate them into the menu of services offered by the company.

A security equipment distributor marketing plan also needs to be developed in order to ensure that the business can quickly sell its inventories while obtaining service contracts. Foremost, the security agreement distributor should maintain an expansive website that showcases the entire inventory the business, installation services, security monitoring services, and any other bit of information that will assist the consumer or a business with making a determination as to whether or not to buy security equipment from the business. This website to be mobile friendly and listed among all major search engines. At the onset of operations, many entrepreneurs that launches labor business will frequently hire a search engine optimization firm that can ensure that the business is quickly found especially when local searches are done for security equipment services. This will ensure that numerous people will come to the website on a daily basis and make contact with the business in order to make a purchase. The cost for developing this type of website ranges anywhere from $1,000 to $2,000 depending on how many custom graphics are going to be needed and whether or not a backend system will be used so that the owner can modify the website at any time.

Many security distributors will also maintain relationships with general contractors as well as real estate developers in order to secure large-scale contracts for the sale of these products as well as for installation services. This can be one of the quickest ways for a security equipment distributor to drastically boost their revenues at any given time. Over time, these businesses can be invaluable sources of revenue for a security equipment distribution business. Often, entrepreneurs that launches this type of business will also develop relationships with companies that maintain secure facilities such as banks, jewelry stores, physicians offices, pharmacies, and other places of business where there are valuable inventories that need to be protected. It is also important for a security agreement distributor to join local chambers of commerce in order to ensure that third-party businesses are aware of the company’s brand and what they are able to provide.

A security equipment distributor is always going to be in need in any given market. The ways in which these businesses can grow our substantial, and for a qualified contractor or small business entrepreneur that understands security equipment – these can be highly profitable businesses that are readily scalable at any time.