Whenever we meet with new clients, we ask them about their business. We talk about their history, their people and their business plans. We also talk about their procedures. There are always similarities in each area from client to client. Insurance agencies can be operated in a variety of ways, but there is always some crossover and the best ones keep up to date with one another.
The Same Old Problems
With that similarity in mind, we can’t help but compare some clients to others. It’s human nature, but it does help us to see potential improvements for one client or another. One factor we’ve found to be common amongst most insurance agency owners is their dedication to certain procedures. Almost every client has identified a practice or procedure that we found unusual or counter-productive.
It could be anything from an over-reliance on fax machines when scanners and email make things more efficient to overly complicated communication or decision-making structures. When we ask clients why they choose that method, the answer is always the same, ‘that’s how we’ve always done it.’
That phrase is usually used to close the conversation, as if that fact proves that it is unquestionably the right way to do it. We do get the follow-up, ‘why, what would you suggest?’ but usually clients assume ‘how we’ve always done it’ is a bulletproof reason. That’s a dangerous approach.
Embrace The New
There are always technological and industry innovations that could improve your business. You may be able to ignore them for a while, but not forever. No matter how much we try to deny it, new innovations will eventually trump older practices. That’s why they call them innovations. When that happens, businesses that haven’t adopted the innovations become stagnant, boring and slow. Most importantly, they become a less attractive proposition for clients.
You don’t have to fall into that trap. All it takes is an objective look at your business practices to identify where you could improve. Are there technologies or practices that you have resisted using because you already have your own method for that task? Ask yourself, honestly, could it improve your business?
When we assist clients in selling their business, the easiest sell is growth. An agency that is growing will always be a viable purchase, even more so if it is growing using the most up to date practices and technologies. Businesses that aren’t growing and have ‘outdated’ practices are a harder sell. When you present your revenue figures to a prospective buyer, the last thing you want them to think is ‘that’s how you’ve always done.’
We have a simple rule at our company, if we have done it the same way for a year, we must think of a better way. Change isn’t easy, but it is necessary.
Agency improvement and modernization directly impacts the longevity of the organisation. Have a look at our Internal Perpetuation whitepaper for more information as to how you can handle the future of your agency.
