A large part of the day-to-day business of an insurance agent is to plan for future risks to a client. So it’s surprising that so many insurance agents are blind to potential risks in their own business. Planning for the perpetuation of your insurance agency is vital, but a lot of agents ignore that risk.
We would be hard pressed to find anyone who doesn’t have a friend or acquaintance who died suddenly at a young age. What would happen to your business if that happened to you? How would that affect your family? These are cold questions, but they raise a valid point. What would that mean for the perpetuation of your insurance agency?
Answering Questions is Key to the Perpetuation of Your Insurance Agency
This question, just leads to other questions such as: Who would take over the business? What would be the effect on your clients? How much would the insurance agency’s value be affected? The perpetuation of your insurance agency relies on you having the answers to these questions.
If you don’t have those answers; then there’s only one answer for all of those questions. It would result in chaos. The perpetuation of your insurance agency relies heavily on planning. You need to set your company’s future goals, beyond your own involvement.
The Perpetuation of Your Insurance Agency Needs to Involve You
It might be that your plan for the perpetuation of your insurance agency is to sell and eventually move on or retire. It’s an option a lot of business owners take, but a disaster like the one mentioned above will most likely remove that option for you. So even if the perpetuation of your insurance agency lies in the hands of a buyer, you need to begin planning for that event today.
If you see the perpetuation of your insurance agency coming from within the business, then planning is even more important. You need to be sure that there’s a smooth transition, whenever you decide to move on. Otherwise the damage to the value of the agency could be catastrophic. Most insurance agencies are owned by multiple owners. This only increases the likelihood of a unplanned event thus making perpetuation planning even more important.
The perpetuation of your insurance agency needs a definitive plan and you need to be a central part of that planning process. If you’re not thinking about the perpetuation of your insurance agency, you need to begin today.
If you are planning for your future, click here to learn how Sukay and Associates could help you.
