We’re hitting 2013’s home stretch and for most businesses, that means winding down towards the end of the holiday season. However, for insurance agency owners it means one thing, renewals.
The beginning of the new year is often the busiest time of the year in the insurance brokerage industry as new policies are signed and year-long relationships are renewed. For some owners it can be the start of a different kind of renewal.The arrivals of December and January inevitably lead people to reflect on the previous year before turning their attention to the future. At some point, maybe not this year, that will mean that you will start thinking about perpetuating the business. Those thoughts often present themselves in the same way, you will think, ‘am I ready to finish running this business?’
Am I Ready To Finish?
While that is a legitimate question and one you will have to answer one day, selling or perpetuating the business isn’t necessarily the same thing as retiring. The only thing that has to happen is the transfer of ownership of the business. The rest depends on you. You get to define exactly how you want the deal to be structured and what future involvement you are likely to have.
That can be a vital factor in the decision to sell for two types of agency owners in particular. It’s common for some owners to begin to feel a little drained, that the business is becoming more and more of a chore, but are not ready to finish. Those owners may discover a new lease of life by remaining involved with the business after a sale. Instead of finishing, they can focus on the things they love about the job and allow the new owner to worry about the draining factors.
On the other hand, owners who think it might be a good time to sell financially, but who are still enthusiastic to succeed sometimes feel trapped. They feel ransomed by financial or economic factors and may grow to resent any suggestion to sell. It’s vital for these owners to remember that they control their own future. It is possible to sell your agency and use that as a springboard to a successful career as a producer for the merged agency. If not as a producer, the same applies to consultancy or even a more focused people-management role.
Seeing The Big Picture
When you think about selling your agency, you need to look at the potential benefits from every angle and consider the potential drawbacks in that context. At this time of year insurance agencies regularly discuss the pros and cons of renewals with clients. You ask clients to see the bigger picture and choose the best coverage solution to fit their business.
Selling your insurance agency can be your own personal renewal, so it’s vital that you take your own advice and keep one eye on the bigger picture.
