Insurance Agency Owners | When Do We Change?
Change only happens when you become uncomfortable. The proof of that is thinking about sitting in a chair for a long time a certain way. The only time you change your position is when you become uncomfortable. You will change your position until you become comfortable once again. I believe that you are at your best when you are uncomfortable. It forces you to see things from a different perspective, it gets the creative thought process going, and forces you to make decisions that you would not but should make when you are comfortable.
Think about it you’re the owner of an agency and you have gone through another year. You review your results and they are pretty good. You have been contacted by several buyers and they are really trying to talk you into joining them. You think to yourself, “Why change what I am doing? I am doing pretty well so I can just continue what I am doing.” In addition to that, many of the buyers believe that if they offer you the right amount of money that will be enough to get you to sell.
The truth is that while the money is very important, most agency owners have done well and make a good living staying in their comfort zone. Once more the day after the deal they invest the proceeds. It adds to their wealth but it does not address the most important hurdle that agency owners face when making the decision to sell. What happens to me the day after a sale? They now have to change.
Buyers will avoid the discussion about what happens the day after a transaction because they do not want to make the agency owners uncomfortable. Most agency owners understand that once they sell their agency things will change. The only way to get them to make the leap to sell is to explain how things will change and draw a picture of what the day after a transaction will look like in their eyes. This is the point where they decide who the best partner will be. The idea of being uncomfortable can be something that drives their thought process and once see the path forward they will see the change as a positive aspect of joining your team.
We change when we become uncomfortable so in order to get an agency owner to change you have to make them uncomfortable so share the day after story, it will increase your odds of getting the deal if you are the right fit.
The First Step
A Valuation. The Valuation of an Insurance Agency tells you more than just the price.
The valuation of an insurance agency isn’t just a figure; it can provide insight into the agency’s goals and help guide operating strategies in addition to its’ role in perpetuation planning. A lower than expected valuation may trigger the need to take certain financial actions. It could also highlight inherent risks in the agency such as an unwanted concentration.
The valuation of an insurance agency can prompt a sale that wasn’t planned, as well as stop a sale that’s already in progress. You may not realize how much value there is within your agency, or you may have overestimated it, but the only way to know for sure is to speak to a financial advisor and go through the valuation process.
Here at Sukay & Associates, we offer free valuations. As a firm, we believe in answering the question is our responsibility and the foundation of a great working relationship – even if that is in the future. Because of this, we are not like most firms. Click here or below to request a free Agency Valuation.