By Tom Sukay, CEO Sukay & Associates 
In today’s post we discuss Harper Lee’s latest bestseller and explain why insurance agency owners should be confident about expanding their businesses even when it seems like it’s too late.
Harper Lee’s novel, “Go Set a Watchman” was written before her classic “To Kill a Mockingbird.” However, it was published 55 years after Harper Lee’s classic novel and the publishing of the new novel was considered very risky. The 89-year-old always maintained she would never publish another novel after “Mockingbird” but the massive sales of “Watchman” illustrated it is never too late for someone to change their mind and reap the rewards. The same can be said for insurance agency owners. It is common for them to become wary of expanding their companies in the later stages of their careers as they worry about losing money or damaging their reputations. However, a great opportunity can arise at any moment and you need to be prepared to seize it, no matter what age you are.
Just as Harper Lee noticed, the market is changing and allows for some gambles to be taken that can provide big rewards. Insurance agencies shouldn’t rely on their past successes to dictate their future, they should recognize and seize the opportunity of a changing market. There is more demand from carriers and clients on insurance agencies to change their business to the changing market. Clients want an insurance agency that creates new programs that go above and beyond the standard package. They don’t want something antiquated but something reliable. They want something innovative.
What needs to happen from the insurance agency end is to identify and quantify improvement opportunities in line with the changing market. If those opportunities prove profitable for you and beneficial to your clients, there is good reason to take that gamble and produce something new. It may not have been accepted 50 years ago as “in line with the market” but like the market, opportunities change and so should your business. This can be as simple as changing their logo, changing your website, or even changing some options or marketing techniques to appeal to your audience and clients. We are a big fan of updating your website on a regular basis. Try this experiment. Google the names of insurance agencies in a town close to you but where you are not familiar with the agency. Take a look at their websites. Try to be aware of the initial impression that was made when you first opened the site. Think about what your customers see and what they think when they see your site. We review insurance agency websites on a regular basis. As an industry, we need to do a lot of work to change that first impression.
Many owners are hesitant to make these changes if they feel the changes might hurt the value of their agency. Many changes, though, are viewed favorably by perspective buyers and will enhance the value. If you have doubts or questions, please feel free to give us a call to discuss your plans.
The Lifecycle of an Agency
Insurance agencies aren’t short-term investments, or temporary steps on the career ladder. Most people who start an agency, or get heavily involved in the industry, stay involved until the day they retire. In most cases it’s a lifelong career.
In fact, most agencies have a lifecycle of their own. As the agency grows, the owners encounter new situations and new challenges that must be overcome. Fill out the form below to download your complimentary whitepaper today, and find out how each challenge affects the long-term value of your agency.
