Planning for Success
by Dera DeRoche-Jolet

A successful company doesn’t just happen. Even when luck plays some role in a company’s success, continuing a successful path requires a certain amount of preparing. It requires you to know not only your company’s strengths, weaknesses and goals but ultimately, the very reason it exists. Have you ever considered asking yourself or your employees this simple question: "What is the purpose of your alarm company?"

You just very well find the answers interesting. Some of you might say it is to make money. Others will say it is to provide a service. If you are a public company, others will say that the purpose of your business is to provide a return on investment to your stockholders.

All those answers are correct. But the most important purpose of any company is to survive and prosper. Prospering means making money and in doing so providing a product or service your customers are satisfied with. Prospering also means staying in business while providing jobs and some security to those employed.

Now that we know the definition, the real question is: "How can your company prosper today?"

One way is by doing strategic planning and focusing on the competitive advantages your company enjoys. Another way is by watching out for technology and competition that can change the way a market is being served.

Do you remember when typing was done on a typewriter, not on a computer? A few years ago if you wanted to hear music you bought a record. Now we have compact discs. Not too long ago movies were seen in theaters, not at home using a video cassette player.

Times, technologies and markets have changed. Certainly the alarm industry has undergone tremendous changes in the past few years and I expect even more in the near future. Changes in the way markets are being served means new strategies are called for. Those who don’t adapt to change will not survive.

Rest assured that changes in the market will alter the way your company does business. Alarm companies that prosper will be the ones looking for opportunities and new strategies in the markets they serve. That’s why planning is so important. Here’s one way of strategic planning that you can use to stay ahead of the competition.

First, look at your internal strengths. These are the things your alarm company does very well. You might have experienced installers, great salespeople, name recognition and competitive prices. The company might have a reputation for fantastic customer service and dedicated employees. These are some of your strengths.

Next, look at any internal weaknesses. How old is the building you are in? Is the parking inadequate? Do you have a limited product and service offering? Are your installers well trained? Look closely at your weaknesses, your competition certainly is.

Also look at outside opportunities. What is happening in the community and the marketplace that could be a potentially positive opportunity for you to take advantage of? Is the community growing? Are you seeing new construction in town? Is there increased traffic in front of your shop? What is happening that you could take advantage of to expand your business?

Now look at outside threats. These are things outside your business that you need to keep an eye on. Is there a new alarm company opening up in town? Is a bigger company buying out your competition? Has your competition begun offering free systems? Have they blanketed newspapers, TV and other media with ads? Is there a change in the buying habits of the public? Has a local competitor begin offering a new service such as cellular phones? What could happen in the marketplace that would have an impact on your business?

Finally, concentrate on your competitive advantages, the elements of your alarm company that makes it unique. Why should anyone purchase an alarm system from your company? Is it because you have the best customer service, the best prices, the best products or the greatest name recognition? Is it something else?

Never stop looking for what you do well, and what you could do better. In 1943, Thomas Watson, the Chairman of IBM said, "I think there is a world market for maybe five computers." Of course, Mr. Watson was proved wrong and IBM changed its strategy during the late 1970’s and early 1980’s. Their problem was that they didn’t continue to keep track of the changing times, markets and technology and lost their competitive advantage. Don’t let that happen to you. Pay attention to your customers to determine why they do business with you. What brings the customer back, and what could take them away?

Planning to succeed is essential today. Strategic planning means looking at how you will position your business to prosper in the future. It is the beginning step in developing long-range plans which identify what needs to be done today so that you can not only survive, but flourish in the years ahead.