2023 Agency Ownership: How did you Improve your Agency? Reflections

Here we are arriving at year end.? It’s been a challenging year for many owners navigating carrier appetite changes and capacity, a tough hiring environment, and over arching economic ambiguity.?? Yet just like our industry, agency owners are resilient and generally growing.

?When I talk with owners, I often inquire – How did your agency improve or change this year?? It’s not revenue questions, it’s strategic.? Did the agency evolve in some way?? It could be technology, up-skilling of employees, marketing, new agency expertise.?

?The underlying premise is “is your agency better today than a year ago”?? What has changed ??

?Inertia is powerful. For some agencies, surviving the market dynamics or employee turnover of 2023 was an accomplishment. ?But that is also a convenient scapegoat.? Owners need to do better than survive to increase wealth long term.?

?For those lucky (and few) owners that had smooth sailing in 2023, it’s easy to be a bit complacent regarding strategic efforts.? Yet now is the time to evaluate weaknesses (there’s always something) and act for 2024.?

?Owners that invested beyond the day to day in some way:? time, money, energy are rewarded by increasing the value of the agency.?

?Obvious Valuation Drivers:

• Commission and Revenue Growth
• Improved profitability margin
• Increase in PIF

?When working with Owners to increase long term value, here are long term Valuation Drivers (and less obvious) leading to increased revenue that I love to see:

• Retention Strategy and Process Changes
• Employee Upskilling? Licenses, Designations, Product Knowledge, Expanded Role and Job Description
• Cross Selling Strategy and Process Changes
• Client Relationship Strategy and Process Changes
• Technology Improvements and Process Changes

For owners growing strategically, often I see them double-down.? Those agencies are growing valuation year over year with strategic momentum.? It’s not time to exit.

?Sometimes owners don’t have the time or energy for strategic changes.? If this is you, year after year, again and again, let’s discuss potential Buyer partnerships that enable agency growth and financial reward.? All Buyers are not equal.

If your agency has plateaued, there are options to reignite growth and increase long term personal wealth.? At times an owner has taken the agency as far as possible, and the expectation of breakthrough growth is not realistic.? There are ways to overcome the status quo and advance overall long-term wealth.

Let’s talk.? 913-980-7773? [email protected]

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