By: Michael Keegan, Magnasphere
“I’ve been teaching people how to sell security systems for years; I can do this.” Those were my famous last words to my wife before we began our journey from employees to entrepreneurs.
Jackson Hole, Wyoming had become a magnet for the rich and famous—Harrison Ford, the Rockefellers, Sandra Bullock, among others, called it home. In the 1990’s, however, builders were busy with new golf course communities and ski-in/ski-out developments…and every one of them needed security systems.
At this same time, I was VP of Sales for Commonwealth Security Systems in Lancaster, Pennsylvania, leading and training nearly thirty sales reps. My in-laws had built a home in Jackson, and during family vacations I’d befriended John, the owner of the small local alarm company who had installed my family’s security system.
One day, the phone rang in Pennsylvania and on the other end was John. “I’m selling my alarm company. I know you have family here—are you interested?”
At the time, I loved my job where I worked for an industry icon, Pat Egan, who was also my mentor and someone I greatly respected. Moreover, the area we lived in was a great neighborhood with great friends.. By all logic, I should have stayed put.
But a voice in my head kept whispering: You’ll regret it if you don’t. You could own your own company in one of the most beautiful places in the world.
And so, the journey began.
Fifteen Years Later
It’s been 15 years since my wife and I sold our business and we have no regrets. When asked, “What would you have done differently?” I honestly wouldn’t have changed much because I listened to, and implemented, the advice I was given from the start. As I like to say: “My best ideas came from someone else—I just put them into practice”.
Through the state and national alarm associations in which we were involved in, I had friends who were willing to share their best practices. They wanted me to avoid the mistakes they had made. Here’s what I learned and lived by:
1. Build It to Sell It
Pat Egan told me, “Every decision you make should prepare your company for sale.” Selling wasn’t on my mind then, but it made sense. The real assets of an alarm company are its contracted recurring revenue. What increases value to a buyer? Consistent products, market share, low attrition, and a strong reputation. That became my focus.
2. The Big Three
Before I had a single account, I secured:
- A CPA
- A security industry attorney for contracts and compliance
- An insurance provider who truly knew the alarm industry (Security America is the best in my book)
Your homeowner’s insurer can’t necessarily cover your alarm business. Likewise, the attorney who drafted your will isn’t qualified to write your monitoring contracts. Get industry-specific partners.
3. Write It Down
Whether starting fresh, growing an existing business, or working in sales—you need a plan. I took an Small Business Administration (SBA)-sponsored course on writing a business plan. Even with years of experience, I had multiple “I didn’t know that” moments—especially about taxes, insurance, and employment costs.
4. It’s Not Worth It Without a Contract
I never lifted a screwdriver without a signed sales and/or monitoring agreement. Friends, relatives, neighbors—no exceptions. Your buddy might not sue you, but his insurance company can if there’s a loss.
5. Know What Business You’re In
I reminded myself constantly: I was in the recurring revenue business. Big one-off projects were tempting, but they tied up labor and often yielded little profit. It was better to install ten $1,000 systems than one $10,000 system.
6. Tell Everyone What You Do
Early on, I walked into a store I frequented and saw my competitor’s decal on the door—they’d just installed a system. The owner said, “I wish I’d known!” Lesson learned: make sure everyone you interact with knows what you do and the products you offer.
7. Recognize Buying Triggers
The alarm business is event-driven. A burglary, new construction permit, remodel, or business opening can all create opportunities. Get out of the office. Visit job sites. Canvas neighborhoods. It’s old-school—and it still works.
8. Junk In, Junk Out
I set strict protocols for monitoring center data input. Zone descriptions, call lists, and procedures had to be complete. Most central station issues are created by the dealer not providing accurate information. Our monitoring center needed to reflect our standards and professionalism. Every morning, I reviewed all signals from the previous 24 hours. That allowed me to set the day’s schedule before the call from the customer. When that call came in, I could say, “Hi Mrs. Smith, I’m glad you called, we received a low battery at 1:15 am and you are on our schedule. That builds confidence and loyalty from your customers.
9. Watch Your Attrition
Potential buyers always ask:
- What’s your RMR?
- What percentage of monitored accounts are under contract, and for how long?
- What’s your attrition rate?
I tracked accounts that ended service and actively pursued new contracts with new property owners. You’ve already done the hard work—don’t waste the opportunity.
The Exit
After 15 years, we were ready to reclaim our personal lives. The buyer’s due diligence team verified everything—inventory counts matched, every monitored account had an auto-renewable five-year contract, and RMR matched my records. All that early discipline paid off.
The Next Chapter
Two weeks after my transition agreement ended, I attended the ESX show. For the first time in my life, I was unemployed. That’s where I met the team from a company I’d never heard of—Magnasphere. I thought, What a cool product—this could be a game changer.
Three weeks later, I was their Vice President of Security Products and, for the past 15 years, I’ve been on the other side of the desk. I know what it takes for an integrator to make a product change, and I understand what they value in a manufacturer. I use those lessons to meet customers on their terms, not mine.
So, what would I do differently?
Not much. The best moves I made were listening to—and acting on—the advice of those who had walked the path before me.
ABOUT THE AUTHOR
Michael Keegan began his alarm industry career in 1985 and is now the Vice President of Security Products for Magnasphere. Michael has a long history of serving in various state and national associations including the ESA, Connecticut Burglar and Fire Alarm Association and Pennsylvania Alarm Association. Keegan has received numerous industry awards including 2025 ESA Sarah E. Jackson award, 2016 ESA President’s Award and 2013 Humanitarian of the Year Award from Mission 500.