There’s a common theme in a lot of our conversations with agency owners. The majority of owners rely on us to provide the financial know-how when planning the sale. They often put it the same way; they say, “I’m an insurance salesman and a businessman, I don’t have a financial background.” Providing our experience is an important part of our role in a sale, but there are some skills that you have that benefit the sales process.
One of the hallmarks of a good salesman is their ability to communicate. You wouldn’t be a successful agency owner if you didn’t communicate successfully. That communication skill is vital in successfully selling your insurance agency.
Communicating Your Goals
The first step in the sales process will be defining what you want to get out of selling your agency. Is the valuation most important to you? Do you have other less tangible goals in mind? Your ability to effectively communicate those goals to your partners, your family and your financial advisor will be one of the keys to the success of the sale.
When everyone knows what the target is, everyone will be pulling in the same direction. Making a successful sale relies on cooperation from all facets of the agency and communication is essential.
Internal Communication Plays a Part
When you decide to make any change in a business, it’s important to communicate with your staff. If you make the decision to sell, but don’t inform key staff members, you are likely to get a negative response when the sale goes through. They may not have a direct involvement in the sales process, but these staff members have a huge vested interest in the future of the agency. Selling your insurance agency may feel like a sole venture, but there are many stakeholders in every sale. There is never a perfect time to tell the remainder of the staff about a sale. We usually suggest that the Seller wait until completion of the due diligence.
It’s also important to control the message that your employees receive. If you don’t communicate effectively it leads to rumors about changes in the organization and potential job losses. That will only serve to undermine the sales process. Employees will be initially concerned about only one thing, “Will I still have a job?” Once that is resolved, they will begin to focus on many other matters including benefits and how the sale impacts their future.
Communication with Financial Advisor is Key
The most important line of communication in the sales process will be with your financial advisor. It’s important that you work with an advisor who understands your goals. Your advisor will be important in finding a buyer and in helping you to decide on the details of the sale. If you’re not totally open with your advisor, it could make that final decision more difficult.
When you’re selling your insurance agency, your financial advisor will bring a variety of skills to the table. They will be focused on the business side of the sale. That doesn’t mean that your skills as a salesman aren’t required. Your skill as a communicator will be essential in making the sale a success.
We know that knowledge is power, and we would like to share our knowledge and experience with you. Please feel free to browse our free whitepapers here which cover several aspects of selling an insurance agency. Click here.
