Today may not be the day your agency changes hands, but it can be the day you’re ready. It’s never too early to prepare for insurance agency perpetuation. No matter how much you try to control it, life is unpredictable, and you may be met with a perpetuation decision sooner than you thought.

It’s difficult to get a return on the lifelong investment that is your agency without displaying its value, especially if perpetuation comes at an unexpected time. This is something you can, and should, get started on now.

37% of agencies surveyed named maximizing agency value as the most difficult part of perpetuation – read more.

Chances are, you’ve already started recording your agency’s value. Your agency management system is built to keep track of your agency, so it contains all the information you need to display its value. But, it’s up to you to use your system to its fullest and illustrate value to potential buyers. Here are a few tips to get you started on recording and showing your agency’s worth.

How to Record Agency Value in Your Agency Management System

  • Use your system to capacity. Take advantage of integrated systems, personalized workflows, document management, and other efficiency-wielding capabilities. The more you put into your system (i.e. documents, syncing emails, financial information, etc.) the easier it will be to get a record of your agency’s worth out of it.
  • Stay on top of provider updates. This relates to the previous tip: you need to have the most up-to-date system to maximize its use. And, the age and usability of your agency’s tech have a bearing on agency value.
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Get integrated accounting. Syncing your financials with your agency management system makes it infinitely easier to produce an accurate book of business. Integration ensures that every penny spent and collected is recorded. Though you will need to add adjustments when determining final value, a set record of income and expenses will make it that much easier to determine when the time comes to sell.

Planning to perpetuate to a family member? Check out our eGuide on How to Make the Switch.

  • Track annual revenue with reporting. Again, integrated accounting comes in handy here. Use reporting features to set up reads on your revenue each year, so you don’t have to dig back later. Showing steady revenue (or growth) over the years adds to your agency value in a big way.
  • Get on the cloud. Take advantage of your system’s cloud-based abilities. Cloud storage keeps your records secure, saving you from starting at square one if disaster strikes. This type of data protection also adds to agency worth.
  • Audit for E & O compliance. Go through your system regularly to check for duplicates and other errors. A clean system will boost your value. Stay ahead of issues with capabilities like email integration and mobile access.

Don’t Recognize These Capabilities?

If capabilities like secure cloud storage, integrated accounting, and personalized workflows sound unfamiliar, it’s time for you to reevaluate your current agency management system. Get in touch with us today at [email protected] to see how you can upgrade your management system, boosting your final value.

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