Smart Choice® has big plans for 2020, and I hope you do, too. Fourth quarter is an excellent time to start planning your long-term and short-term goals for your agency. Perhaps your agency is positioned to experience exponential growth in the next 12 months. Or, maybe you’re hoping to retire soon and need a plan for selling your agency. Whatever your goal is, your State Director is here to help you.
Be SMART
Whether you’re growing your agency or planning to sell it, you need a long-term and short-term plan. Take some time to reflect on your big goal for your agency. What does your agency look like in a year? Five years? Ten years?
Take that vision and turn it into a SMART goal. A SMART goal is Specific, Measurable, Achievable, Relevant, and Timely. Here’s a look at two SMART goals for agency development.
Scenario One: Grow My Agency Personal Lines Premium to $5 Million by 2025
This goal is specific to personal lines premium. The $5 million goal is measurable and achievable. The goal is relevant to the future growth and success of the agency. Finally, the goal is timely, occurring within the next five years.
Scenario Two: Sell My Agency to Another Smart Choice® Agent for at Least 85 Percent of Its Valuation and Retire by 2025
This goal is specific, as it indicates the agency will be sold to a Smart Choice® agent. The 85 percent number is measurable and achievable. The goal is relevant for an agent who is nearing retirement age. Finally, the goal is timely, occurring in the next five years.
Once you have your big goal identified, it’s time to work backward and set smaller benchmark goals to help you achieve it. Use the SMART framework for each of your benchmark goals.
Finance Your Next Big Investment
Your big goal will likely take some investment. Changing or expanding your location, renovating your office, hiring staff, and running an effective marketing campaign all require capital.
Your Smart Choice® membership gives you special access to two of the nation’s top lenders. Live Oak Bank specializes in lending to insurance agencies. They offer competitive rates for loans between $75,000 and $5 million. Oak Street Funding provides working capital, debt restructuring, and financial services to help you buy and sell your agency. If you need cash to achieve your big goal, consider speaking to Live Oak, Oak Street, or another lender.
Hire a CSR
If your agency is in growth mode, you may be feeling short-staffed. Some new agents believe they can’t afford to hire a CSR. I believe you can’t afford not to.
Growing agencies do two things well: they relentlessly pursue new business and they offer their current customers exceptional customer service. A single agent will struggle to do both. While hiring a CSR does require an investment, having another person on your team allows your agency to continue to grow.
Leverage Carrier Training Programs
Many Smart Choice® carriers offer free training to our members. I was reminded recently of the great marketing resources Safeco provides, for example, including market research, insurance trends, and an intensive virtual marketing training program for appointed agents. Ask your State Director about the different programs your carriers may offer.
Take Advantage of Your Smart Choice® Discounts
Want to save money and grow your agency in the next one to ten years? Then take advantage of every discount you receive through Smart Choice®. You may already be getting a deal on EZ Lynx or your agency management system (if not, speak with your State Director).
But did you know you can save on your E&O with the Smart Choice® group E&O program? You also have access to a year of unlimited CE for just $29 through CEAuthority. You can also build a website for free through the Smart Choice® Website Builder. All of these tools will support you in growing your agency.
Planning for a successful 2020, 2025, and 2030 starts right now. Identify your goal, make it SMART, and then invest in the people and tools that will support your success. As always, your State Director is here to help.
If It’s Time to Move On
Have you ever wondered what will happen to the insurance agency once it’s time to move on?
You’re in the risk management business, so chances are you’ve thought about this quite a bit. But if not, here are a few tips to take the mystery out of selling your agency:
- Get an insurance agency valuation to determine its actual worth, including your book of business, location, the markets you offer, and your phenomenal staff.
- Create a plan to sell your agency at least three years before you plan to leave the business with the help of a good business attorney.
- Know your sale options, from selling your agency for free through Smart Choice® to identifying a buyer within your agency, your family, or your professional connections.
Finances and Growth: Securing Your Future
It’s also a great time to begin planning for next year, and adjusting your goals based on how successful your current year has been. For more on how agents can set SMART goals and achieve their growth plans, check out the 2019 Issue 5 of Smart Choice Magazine.