Happy Monday to my Insurance Professionals, friends and Business Owners.
The message today is brief yet I believe vitally important. “Understanding the Dollars and Sense (NO, I don’t mean cents) of your Agency.”
An Insurance Agency is a business and a business has two distinct purposes:
- Generate A Profit
- Growth
I find in having this discussion with the multitude of Agency Owners that I coach, train, develop and support that they call themselves “Business Owners” but when asked these questions they cannot answer:
- What is your Gross Revenue
- What is your take-home revenue
- What are your staffing costs
- What are your marketing cost
- Which product lines are profit centers
- Which product lines are cost centers
- What is your operating budget this year
- What is your operating budget forecast for the next 2-5 years
Most Insurance Professionals, do one thing, “SELL INSURANCE”. There is nothing wrong with that, in fact that has to be done to keep the business moving forward. Yet, the deeper issue is are the day to day decisions you are making increasing the “NET DOLLARS” and does your Agency/Business “MAKE SENSE?”
THOUGHTS TO PONDER TODAY: Is your Agency profitable (to you not your carrier)? Are your marketing expenses generating a ROI (return of investment)? Are your staff generating an ROI? What is the TRUE financial number it takes to run your Agency/Business? What is the TRUE financial number it takes to run your Personal Life? If you are wishing to expand, which lever do you pull to increase that expansion; marketing, staffing, sales, product lines, etc.? These are not easy questions and probably the reason you have never stopped to ask them MUCH LESS answer them! I assure you those Agencies/Businesses that answer these questions are thriving regardless of the market conditions because they understand the “DOLLARS AND SENSE OF THEIR AGENCY”.
John Lucero, is a successful business owner with over 20 years of experience in multi-line insurance agency operations for several major National Brands. With an expertise in Recruiting, Educating, Coaching, Developing and Product Knowledge, his passion and drive to ELEVATE Insurance Agencies to higher levels of success is what keeps him inspired about the future and motivated about making a difference.
