Whenever you make a big decision in life, you need to think through the facts and make an informed decision based on those facts. You then explain to your family, friends and sometimes yourself why the decision is correct. Most of us avoid the whole truth when we make these decisions. Instead, we create versions of the truth that sound better to everyone.
When it comes to selling your insurance agency, those versions of the truth often sound the same. You’ll say things like, “I want to access a larger prospect base” or “I want to have access to more and better markets”. You might believe that these are the reasons you’re selling your insurance agency. There are usually other reasons.
Why Are You Selling Your Insurance Agency?
The other reasons may be ones you don’t want to make public, maybe even reasons you don’t want to admit to yourself. When you’re selling your insurance agency, you need to understand the real reason you decided to sell. There is so much at stake, so many people affected by that decision, that you can’t afford to make your decision for the wrong reasons.
You need to ask yourself why you’re selling your insurance agency. If you look at it honestly, and the answer that comes back is that it is about growing the business, that’s great. A lot of business owners answer the question as, “I don’t like dealing with my business partners anymore”, or “I don’t enjoy dealing with all of the employee issues” or simply, “I’m tired and I’ve lost my passion for the business”
Selling Your Insurance Agency Shouldn’t be a Snap Decision
These are some of the reasons that motivate a lot of people to sell. These are also the reasons to sell that people rarely admit. Unfortunately, they are all perfectly good reasons to look at the perpetuation of the business. They may not be the best reasons to sell your insurance agency, but they certainly indicate the need to consider the future.
Selling your insurance agency doesn’t have to be a snap decision. Snap decisions should not be motivated by emotional factors. Perpetuation planning can help to build a roadmap for the future of the business. Two items are critical: The first is that you need to have a clear idea why you decided to sell your insurance agency. The second critical item is that you need to have some thorough discussions and conclusions on the goals you hope to achieve, both financial and cultural.
It can also help you to be honest, both to your business and to yourself.
Agency Valuations
As a firm, we believe answering the question “How much is my agency worth?” is part of our responsibility and the foundation of a great working relationship – even if that is further in the future. Because of this we, unlike most firms, offer insurance agency valuations for those who qualify. Click below to apply.
