It goes without saying that safety is a basic human need. Each person longs for the feeling of being safe and keeping everything that they own nice and secure. With a franchise, peace of mind never has an expiration date and because of that, a security franchise is a stable industry segment that has been able to see quite an uptick in demand.
In order to learn more about this fast growing franchise industry, we looked to Reed Nyffeler, the guidance of Co-Founder and CEO of Signal 88 Security. Set up by professionals in law enforcement, Signal 88 has been able to grow into the largest franchise in private security in the entire nation since inception in 2003. With the addition of general industry talk, Reed wen ton to tell us all about the opportunities available with Signal 88 specifically.
Is this a market that is competitive in terms of the number of those competing?
There are roughly eight thousand competitors across the nation and we are in the middle size in terms of market, and this happens to be the least amount. You will find about five to ten security companies that have a great deal of revenue that we actually compete with as a franchisor on a “National Brand Level”. There are also 7,500 local shops that we compete with the franchisee on a “local owner” level. We happen to be a security company that is fast growing simply because we are able to satisfy both strengths while leveraging a great national brand and the tools that reach local owners.
What does technology do to impact the industry?
Technology has come at a tremendous benefit to us, as we are able to assist the franchises with technology as a way to improve upon efficiency. This works by reducing the number of managers and employees that are necessary to run a business. It can help the franchises so that they have real time visibility for their business and a drastic improvement in profitability that is leaps and bounds over the industry averages.
What types of people do well with a franchise in this industry?
The people that are happy to see results for effort put in. Anyone who is a leader and the type of person who their peers and family look to them in any time of need. A person who is willing to put in the hard work while learning new things to apply the knowledge for their own personal gain. People who are able to stick to the process and understand that the more time that they spend working, the better it will pay off for them in the end.
What are the requirements to work in this field?
You have to have the will to serve customers and great communication skills. Everything else can be learned. We have found that people who do well with other people can be great with officers, clients and other franchisees.
What about industry growth in the future?
This is an industry that keeps growing and there are always going to be more threats to the peace of mind of all of our clients. Throughout the past 20 years, we have had numerous attacks from disturbed individuals, international organizations and even gangs. During this same time, law enforcement has not been able to grow. This means that private security is necessary to help fill this gap.
What is the size of the market for Signal 88 franchises?
In the US alone, there are about 2,300 franchise territories to pick from. Currently, there are about 400 territories that are sold. This actually leaves some wonderful markets that are open. A lot of these open markets have current clients that would happily go with the right franchisee.
What are goals for growth throughout 2016?
We are looking to sell well over 80 new territories for 2016 and will keep growing for about 20% annually.
How long will it take for the start up process?
Most people will make the decision to go forward in about 90 days after they request information. From the time of sign up, it takes roughly 60 to 90 days to open their franchise. Once they are open, they can have their first contract in about 30 to 90 days and begin building their business.
What else would you like to share with readers?
This is a concept that is ideal for someone who looks for ways to get into an opportunity with lower costs for start up. If you can learn the technology and apply it, you are going to be in for a great business opportunity while creating solid peace of mind for your clients.