Your time as an agency owner is extremely valuable, so it’s essential to develop a strong strategic network of complementary business partners. Here are some of the top partner categories that will help drive long-term success.
Accountant or Accounting Firm: Many of our articles in the Agency Finance section of the First Mid website focus on the impact of having a solid handle on your agency’s cash flow management, revenue trends, and profitability ratios. As a busy business owner, working with an insightful and proactive accountant can help make sure you’re on the right path to meet your financial goals — and avoid monetary pitfalls.
Legal Advisors: Although attorneys may be necessary if you have to handle any litigation, their most powerful purpose as advisors is to help you mitigate risk. This may include:
- Registering your agency as the most appropriate business type for your needs (sole proprietorship, partnership, corporation, or LLC).
- Handling commercial leases and real estate transactions.
- Negotiating mergers or acquisitions of other agencies.
- Overseeing the possible sale of your agency.
- Addressing and advising on the legal aspects of a succession plan.
- Drawing up other legal agreements.
Financial Institutions: As a small business, insurance agencies have specific deposit and lending needs. Choosing a stable bank that offers a consultative approach, expertise in insurance agency financing, and a long-term commitment to its customer relationships can provide you with a partner that will help you strategically optimize your assets and support your capital needs. Along with a legal advisor, your bank is likely to be involved with any agency acquisitions or sale.
Marketing Partners: Accelerated agency growth typically requires both hands-on, personal relationship building and a solid marketing plan that can help cost-effectively attract, retain, and grow customers. It’s essential to choose a marketing partner that understands the nuances of co-op advertising, the regulatory requirements for marketing financial products, and conforming to the brand standards of a variety of insurance carriers.
Technology Providers: Because your agency may work with multiple carriers — with each having their own proprietary technology — you will probably need to have technical support to ensure that your team can operate the various platforms efficiently and effectively. You’ll also want to have a team on standby to help with any hardware or general technology problems that pop up, as well as address possible cyberfraud. When your tech is down, so is your staff’s productivity. It’s better to have a group that knows your agency and needs, rather than reaching out to an unknown entity in the midst of a technology meltdown.
Referral Partners: In addition to the benefits of networking with other seasoned professionals to support your agency’s infrastructure and prevent liability, many of these groups can also serve as referral sources of high-quality leads. Aligning with other professionals like realtors, mortgage brokers, auto dealerships and auto lenders can reduce marketing costs and provide consistent leads to your agency.
Surrounding yourself and your team with the right resources will aid in your long-term success.
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