Is Your Firm Positioned for Organic Growth?
In our experience, high-performing agencies and brokers (“agencies”) share several characteristics that help position them as industry leaders.
They’re high-growth, progressive businesses that attract top talent, consistently grow organically at double-digit rates, and are positioned for long-term sustainability. These agencies embrace planning and a defined, repeatable sales process that all of their producers follow with proven success. They set growth goals and coach producers to cultivate profitable and growing books of business. They know the importance of differentiation and a defined service structure — and they take ownership in fostering a sales culture.
FIVE REASONS WHY ORGANIC GROWTH IS IMPORTANT TO OWNERS AND EMPLOYEES
1. ENERGY AND EXCITEMENT.
I’m sure most of us have been in that dreary sales meeting before. No wins to talk about, non-existent pipelines, prospects that won’t let us in the door, and everyone is spinning their wheels without any success to show for it. We believe that a renewed focus on new business can change all of that.
2. CARRIER MINIMUM VOLUME REQUIREMENTS.
Carriers are going to grow one way or another. If you’re not helping them grow, you may drop to their bottom tier, where the carrier doesn’t spend much time with your agency and won’t offer educational or sales training opportunities. We are seeing that compensation cuts from the carriers are a regular occurrence now.
3. ABILITY TO HIRE QUALITY NEW EMPLOYEES.
New business means new revenue to the agency, which allows for additional hires to be made in production and service staff. It helps employees manage capacity and gives career pathing opportunities
4. PROFIT TO REINVEST IN THE NEXT GENERATION.
High-growth agencies are consistently focused on their perpetuation plan and grooming the next generation.
5. PROFIT TO PAY BONUSES & RAISES.
Expenses grow every year. If revenue doesn’t grow equal to the expense growth, then profits shrink. If profits shrink, so do the employees’ bonuses and raises.
1Marsh, Berry & Company, Inc. Financial Advisory services include M&A Advisory*, Business Planning, Perpetuation Planning and Valuations. The Financial Advisory services provided by Marsh, Berry & Company, Inc. and its affiliates are not meant to be construed as services that constitute an offer to buy or sell, or a solicitation of an offer to buy or sell any securities, financial instruments or to participate in any particular trading strategy, or to provide investment recommendations on any company for personal investment purposes. Marsh, Berry & Company, Inc. and its affiliates are not rendering legal, accounting, financial or other advice.
*Securities offered through MarshBerry Capital, Inc., Member FINRA and SIPC, and an affiliate of Marsh, Berry & Co., Inc. 28601 Chagrin Blvd., Suite 400, Woodmere, Ohio 44122, 440-354-3230 Contact Us
Specifically designed for the insurance industry, RevGen is a comprehensive training program designed to help new producers build a sustainable sales process. After kicking off the program with a two-day learning seminar, we continue the relationship with the producer, along with the mentor, to ensure results.