Unlocking your security business’s full profit potential requires more than sticking to the status quo. The key is continually evolving and adapting what works best for your organization. But what does that entail? It might mean revamping your service offerings, shaking up your marketing strategies, or streamlining your operations.
While embarking on these changes might feel daunting, the promise of increased profitability makes the journey worthwhile. Ready to transform your bottom line? Discover ten innovative ways to elevate your profitability and secure your path to success:
1. Reassess and Enhance Security Protocols
Security procedures include physical security measures like alarms and surveillance cameras, plus digital security measures like firewalls, encryption, and anti-virus software. They also incorporate policies and procedures related to data and employee access to systems, including security management design.
To improve profitability in this area, it’s important to regularly assess and update security procedures to ensure they comply with industry best practices and client needs. This includes checking the effectiveness of current protocols, identifying potential vulnerabilities, and making the necessary changes to improve.
If you don’t currently have a way to review, assess, or change security procedures regularly, this is a great place to start.
2. Revisit policy processes
You’re dealing with processes like billing, scheduling, security guard checkpoint reporting, and more. Make it a priority to analyze your internal processes to identify areas for improvement. People often use workarounds to get things done, even when processes are inefficient. Instead, improving the process, automating tasks, and using the best technology to make the entire operation more efficient is helpful.
Ask your team – what’s working with current policies? What are the main goals? What are the best practices? Use these answers to develop strategies and modify policies for the best cost-effective outcomes.
With a formal policy process:
- Make sure the entire team understands the process and importance of it
- Kick off a campaign that helps everyone use it
- Instill a sense of ownership and dedication to policies
Not only does this create a better work culture that increases the chance policies will be followed, but clear policies also help solve problems when they arise. All of this, in turn, improves your bottom line.
3. Analyze and Adjust Staffing Requirements
Of course, labor expenses are necessary, as people are worth the investment. However, you can also ensure staffing levels are right for client demands – without overstaffing. If you have too many employees, you’re wasting money on costs that could help increase profits. If you have too few, you can miss out on additional opportunities.
Check workloads and schedules and consider cross-training employees to help with costs. Check staffing levels regularly to ensure you’re operating at the most efficient level. You can increase or decrease the staff you need – and where you need help – and improve your profit margins based on your changing needs.
Companies using Trackforce’s security management software solutions have been able to reduce operating costs by an average of 40%. Learn more about the ROI.
4. Minimize Unnecessary Overtime
Overtime is part of the industry since it offers people flexibility and the opportunity to make more money if the need and the desire match. However, it can be expensive when overtime isn’t controlled or measured.
Reducing excessive overtime helps increase profits in a variety of ways:
- Humans need breaks. Overworked employees can become less productive, which leads to higher costs since more resources are needed to complete jobs.
- When overtime increases too much, the labor cost can get out of balance.
- Unfortunately, overworked employees are statistically more likely to make errors or overlook details. Preventing excessive overtime means businesses can help people remain productive – and, at the same time – avoid increased costs.
Technology solutions like workforce management software can help identify when excessive overtime is becoming an issue. Using it, you can check the analytics to make better scheduling decisions, reduce the risk of fraud, and improve the overall work experience.
It can also help you deal with unbilled overtime costs. By filtering out employees approaching overtime from the schedule, security firms can reduce the costs associated with non-billable overtime charges. Trackforce users save thousands per year in reduction of non-billable overtime and keep it well under the industry benchmark of 5%.
Download our guide for more tips on navigating state laws and eliminating non-billable hours.
5. Invest in Modern Security Technologies
You want your employees to be safe and your customers to be protected. By taking advantage of the latest technology, you can improve your security measures and reduce costs.
Consider your biggest needs. What will be the best for you, your clients, and the bottom line? Options could include upgrading surveillance systems, access control solutions, or workforce management software to improve productivity and response times.
With the latest tools, you can improve your security and potentially take on more complex projects, which also helps with the bottom line.
With a command center and officer security guard officer tracking, supervisors can reduce the number of on-site visits while improving visibility and accountability.
6. Implement a Comprehensive Tracking System
To improve your profits, you can upgrade your tracking solutions to those designed specifically for the security industry. For instance, with Trackforce, you can establish checkpoints with NFC, barcode, QR Code, Aztec, GPS, and manual check-ins. You can also leave instructions for guards at each checkpoint.
Using the post order acknowledgment feature, you can also verify that guards received the information they need. If you need to contact guards, communicate with them via a message board and give clients as much access to your security operations as they want with a client portal.
You’ll better understand your business, where people are located, and what incidents are happening. This information can make the entire process more efficient. Use the knowledge to make future business decisions and, in turn, save money.
Get the details on guard tracking.
7. Introduce price bundling
Want larger contracts and more revenue? Of course. Provide clients with attractive service bundles and packages. This could involve combining guarding services with security technology solutions or offering tiered pricing based on service levels.
By offering price bundling, you can potentially sell more. Since there is a better deal available, people may feel more comfortable spending more on a package than buying in parts. You can also increase customer satisfaction by adding desirable products to the bundle. It’s a small difference to you but a big difference to a customer!
8. Focus on high-profit activities
Focus on high-value services and clients that generate the best profit margins. Consider your service profitability, identify areas for growth, and concentrate resources where you’ll get the best ROI.
This way, you can increase profit while freeing up resources for other business initiatives. Focusing on the most profitable efforts can also help you stay ahead of your competitors.
Is there a customer, specific channel, or niche area you can use to get ahead? Identify and analyze your options, then focus on selling to the right people.
Plus, by concentrating on your greatest areas of profit, you can identify shorter—and longer-term projects to maintain your profit levels.
9. Establish a Strong Client Retention Plan
How can creating a retention strategy help? For your business, it can help create a sense of customer satisfaction and loyalty, help you build stronger client relationships, increase repeat business, and provide a chance to sell additional products or services.
What measures can you take to keep your existing clients?
Along with great service, you could also offer:
- Loyalty programs: Offer discounts, priority services, or reward points for long-term clients.
- Client appreciation programs: Show appreciation through cards, anniversary acknowledgments, or client events.
- Personalized service: Tailor your services to meet each client’s specific needs.
- Regular communication: Stay in touch with clients through newsletters, custom emails, or periodic calls to demonstrate your commitment to their security needs.
Investing in your clients helps with long-term success. In fact, not only can you keep your current clients, but users of Trackforce Security workforce management software have even seen an average of 30% increase in new business.
Check out additional marketing efforts.
10. Cut Down on Overhead Expenses
Overhead costs are business elements unrelated to the production, marketing, and selling of services. Take a good look at your business to see where you can make cuts – like negotiating better rates or reducing daily expenses like rent, accounting, and insurance.
Consider—could you find a lower interest rate, move to a lower-rent space, or use a freelancer instead of a full-time person to do temporary work?
Change for the better
Though initially making changes to your operation may seem difficult, the results will be worth the work. When you take the time to explore these 10 steps, you can monitor their effectiveness, make changes where applicable, and enjoy your increased profitability. What are you waiting for? Get started today.
When you find cost savings in the business, you also may be able to invest in technology solutions that will eventually increase your profits even more. Want more details? Get a demo.
