The Fast Path to Agency Growth

As an independent agency owner, you have tremendous potential to grow your business. It can take a long time to build an agency that would attract acquisition attention or sustain future generations. It’s important to assess where you are, and then advance with intention. If you want to really grow your business, there are numerous ways to go about it.

Strategies for Growth

As a successful agency owner, you already know how to staff for a diverse portfolio, offer a wide range of insurance products, keep your sales pipeline full, and retain customers using outstanding customer service and follow-through.

The good news: All these actions will help you methodically build your business.

The bad news: These actions are unlikely to create an inflection point at which you begin to grow exponentially — sometimes referred to as “hockey stick growth.”

Achieving radical growth requires more than simply investing more time and money. Working harder will only get you so far. Radical growth requires breaking out of the status quo and changing your business model with an unprecedented, giant leap forward — the kind of surge that occurs when you purchase another agency through acquisition.

Acquisitions are common in the insurance sector. Small and midsize agencies sometimes don’t have the contracts, advertising budgets, and other resources they need to compete with bigger agencies. Developing an acquisition strategy can be key for long term growth.

Developing Relationships for Multifaceted Growth

As an agency owner, you recognize the importance of building relationships. To retain clients year after year, cross-sell new products and earn referrals, you need to cultivate strong connections with your customers. These types of relationships are the foundation that helps you sustain organic growth.

Unfortunately, many agency owners stop there and do not maximize potential partnerships.

By intentionally building relationships with other industry professionals, financing partners, and an insurance network, agency owners can pave the way for radical growth through acquisition.

In addition to offering access to essential markets and back-office support, some networks help their agencies with the entire acquisition process — from finding target agencies to connecting agents with financing partners.

Time to Think Big?

The U.S. Census Bureau says 10,000 people turn 65 every day. By 2030, all baby boomers will have reached retirement age. Independent insurance agencies owners are retiring in droves, and as a result, there will be a lot of agencies up for sale over the next decade. This is an incredible opportunity for younger agents who want to grow their business through acquisition.

This is the time to think big. By growing your agency (both organically and through acquisition), you can achieve tremendous levels of success — increasing your revenue now and preparing for your eventual retirement and the sale of your agency.

You’ve already built a successful business. Now, it’s time to build an estate.

Securing Your Retirement

For many agency owners, the sale of their agencies is a key part of their retirement planning. A successful sale can accomplish two important retirement goals.

First, you’ll receive funds for your retirement. As many people are behind on their retirement savings goals, this may be critical.

Second, you can ensure the agency you worked hard to build continues to thrive in your absence. When you set the terms of the sale, you control your legacy and ensure your employees and customers are well cared for.

The more attractive you can make your agency to potential buyers, the more likely you are to secure a successful sale.

It’s easy to see how increasing your agency’s value today can secure the future you envision for tomorrow.