Safety. It’s a basic human need. Everyone longs to feel safe and keep the things they acquire secure. Luckily for franchisees, peace of mind doesn’t have an expiration date. Because of that, security franchises are a stable industry segment, and one that has seen an uptick in demand.
To find out more about this burgeoning franchise industry, we spoke to CEO and Co-founder of Signal 88 Security, Reed Nyffeler. Founded by law enforcement professionals, Signal 88 has grown to be the largest private security franchise in the nation since its start in 2003. In addition to general industry talk, Reed also tells us more about the Signal 88 franchise opportunity specifically.
Is this a competitive market in terms of the number of competitors?
There are about 8,000 competitors nationwide. We are in the middle-size market, which happens to have the least amount. There are about 5-10 security companies that have lots of revenue that we compete with on a “National Brand Level” as a franchisor, and there are roughly 7,500 that are small local shops that we compete with as a “local owner” with the franchisee. We are the fastest growing security company because we satisfy both strengths of leveraging a national brand and its tools and reach with the local owner being a highly experienced franchisee.
How has technology impacted the industry?
Technology has been a huge benefit for us. We are able to assist franchisees with the use of technology to improve efficiency by reducing the number of employees and managers needed to run a business. This provides the franchisees with real-time visibility of their businesses, and has dramatically improved their profitability well above the industry averages.
What kinds of people do well as franchisees in this industry?
People that like to see the results of their efforts. The people who are “leaders” and to whom their peers and family look to in times of need. People that are willing to work hard and learn new things and apply this knowledge for their own personal benefit. People that are willing to stick to a process and recognize that every minute, every hour and every day that they spend working on their business will pay off in the end!
Are there any special requirements necessary to work in this field?
A willingness to serve customers and communicate well. The rest can be learned. We find that people that are a “people person” do well with clients, officers and other franchisees.
How can the industry grow in the future?
The industry continues to grow as there are more and more threats to our peace of mind. Over the last 20 years we have had a series of attacks from international organizations, disturbed individuals, and gang violence. Throughout this same time, the police forces have not grown and as a result private security is needed to continue to fill the gap.
How big is the market specifically for Signal 88 franchises?
In the United States, there are 3,300 franchise territories currently available. Right now, we have almost 400 territories sold. This leaves a lot of good markets open. Many of those markets that are open actually have current clients that would come with them for the interested franchisee.
What are your growth goals for 2016?
We are planning on selling over 80 new territories in 2016, and will continue our growth of near 20% annually.
How long does your start-up process take on average?
Usually people make a decision to move forward within 90 days of requesting information. From the time of signing it takes about 60-90 days to actually open their franchise. After they officially open they could have their first contract within 30-90 days and really begin to build their businesses from there!
Is there anything else you would like to share with readers?
This concept is ideal for someone who is looking for an opportunity with low start-up costs, is able to learn and apply technology, wants a very stable industry to invest in and has a passion for creating peace of mind for others.
Many thanks to Reed for his time and insight! To learn more about the Signal 88 franchise opportunity, click here.
Photo Credits: Signal 88 Security