Biological Prospects Exports Equithrive with KSBDC Assistance
Science, not business, comes naturally to Pat Lawless, founder of Biological Prospects , a high-tech company that produces a line of nutraceutical supplements for the equine industry. Uncertain how to market his novel product on an international scale, Lawless contacted Gordon Garrett, associate director with the KSBDC.
Together Garrett and Lawless reviewed his product offerings and drew up a plan so he could quickly and cost effectively take “ Equithrive ” to the international equine market. “Basically, Gordon advised me to outsource everything we can. For example, manufacturers know a lot more about manufacturing a product than I do.”
By utilizing the market prowess of five large distributors, Lawless was able to move Equithrive across international boundaries in a fraction of the time it would have taken him to build and train his own sales force.
“I have implemented a similar model with numerous KSBDC clients,” Garrett said. “It takes a lot less money to get these businesses off the ground if we piggyback on the relationships distributors have already formed with retailers.”
For Biological Prospects, that partnership means moving their product to an international market in a matter of months vs. years. Today the company exports products through five major distributors, all with highly-trained sales forces that have established relationships with veterinarians across the globe. To-date, five percent of Lawless’ product is exported to Australia and Canada and Europe.
“The SBDC has been a tremendously valuable resource. I don’t know what I would have done without Gordon’s assistance. He has guided me through every step of this process.”
– Pat Lawless
According to a recent study performed by marketsandmarkets.com, researchers believe the home security market will grow from $28,318.69 million in 2014 to $47,542.52 million by 2020. The report was titled, “ Home Security Solutions Market by Product (Electronic locks, Sensors, Cameras), Solutions (Intruder Alarm, Intercom, Access Control, Fire Protection, Integrated Security, Video Surveillance & Others), Home Type, & Geography - Global Forecast to 2020.”
The report also goes on to say that the majority of the market share will be occupied by the U.S. The global home security market has seen many changes since its inception in the ‘90s. The constant evolution of technology, and the growth of the internet, has increased the ways in which a home owner can keep their property secure.
Investors also see the home security market as profitable. Take BeON Home, for example. The company has created the first Bluetooth Smart-enabled home protection system that provides preventative security and emergency lighting. They announced on Feb. 4 that they’d received $2.9 million in capital. Jopeko, LLC led the effort, and now BeON’s total investment equals around $5 million.
The press release , which BeON released to various outlets via wire, states that they are continuing to update their products and improve them for consumer’s wants and needs.
The marketsandmarkets.com study named the following companies as the industry heavyweights. The major players in the global home security solutions market are Tyco, ASSA ABLOY, UTC Fire & Security, Honeywell International, Inc., Bosch Security Systems, Ingersoll Rand Solutions, Allegion PLC, Godrej & Boyce Manufacturing Company Limited, Control4 Corporation, Alarm.com, and Nortek Security & Control LLC.
However, an article published on BusinessInsider.com in July of last year says that while the big wigs represent more than 90% of the market, there is room for growth in self-installed and self-monitored home security. Consumers will look to build loyalty with tech companies who begin producing home security. The data came from Citi.
“Based on research projections, Citi estimates that self-installed and monitored systems will control 34% of the market in five years, with professional system slipping to 61.6%. In the longer term, 20 years from now, these numbers are projected to basically switch with self-monitored systems holding 62.5% of the market and professional services making up 31.3%,” writes Bob Bryan.
As millenials become home owners, the desire for different home security options will change, but the desire for home security will not go away.
Any way you look at it, home security is a profitable small business venture, with projected growth for many years to come
Author : Aaron Gilley, Owner of Security Essentials of Lexington