I am not giving any legal advise nor am i telling you what to do, this information should be used for educational purposes only. Always remember to seek advise from an attorney before making any legal decision.
Having said that, there are many ways that you can build the stability of your company however i want to talk about one in particular. This is In-house accounts. This may be obvious to many but not to others. Getting contracts on your customers can bind the relationship more.
When you in-house a customer regardless of what industry you are in, you are the one who is in charge of billing your customer. The customer pays you for the services you provide. Typically you are not the one who is doing the actual servicing however you do do the servicing ! let me explain.
In the security industry the customer needs equipment and a service of monitoring. If you were to in-house a customer this would mean you would typically outsource the monitoring to a monitoring station, however you would do the installation and charging the customer. In return the monitoring station would charge you a small amount as a dealer to monitor that customer and you pocket the difference from what the customer pays you minus the cost the monitoring station charges you , and all the fees involved in your daily business overhead.
- The residual income that the customer pays you goes directly to you for as long as the customer keeps the account.
- With volume the amount you get paid monthly can really add up
- You can always sell these accounts off if you ever so choose to
- You don’t rely on a monitoring station or service station.
- Money comes in at the end of the month regardless if the sales reps produce or not.
- It requires and investment for the upfront charges. Ie: Sales rep, technician, equipment charges if not collected from the customer.
- No initial funding which can make it hard to grow from the start if you don’t have the funds to fund the initial operation.
- Have to stay on top of customers that don’t pay.
As anything in life there are the ups and downs to everything. The largest door knocking companies all in-house their customers. Selling them off is a good way to raise capital if you don’t already have it, but put in your mind that you can start to house accounts as well slowly and they will add up.
Lastly make sure you have every contract filled out the right way and stored in a safe place according to the law ! check your laws on this and know that the rewards can be astonishing if you do it right.