One month things are getting better, and then the next month things seem to be getting worse. Does it feel this way to you? With the way the media covers the U.S. economy, it’s difficult to judge whether or not we’re moving in the right direction or staying in the same place. However, one thing we can all agree on is that things certainly could be better, especially for local insurance agencies across the map. Some may be doing better than others, but your agency should be doing what it can to weather these times until things begin tilting further upward.

Here are some considerations to look into:

• “Low hanging fruit”: Make sure you are tapping the right markets for your agency. You may sell a variety of policies, but try to concentrate a lot on the policies that bring in the most revenue and that you have most access to. Consumers are worried about the economy just like you, so finding the areas you know they’re willing to spend money is also key.
• High profit margins: You should always be on the lookout for high profit margins. By looking into these, you will be giving your agency more room for error should you not meet expectations or if you were overly optimistic.
• Don’t stray: If you’re thinking of adding new products or services, make sure that you can sell them to your customers. By straying from markets you know you will make sales in, you’re making a decent sized risk. You may not get the return on investment you were expecting by branching out with new products.
• Pace growth: Only grow as fast as you can with your available cash flow. It’s important to be aggressive in your market when you can, within reason.

We encourage your agency to do whatever it takes to maintain a clean balance sheet, but we hope any risks or chances you take are calculated and worth your agency’s while. If you need help, it’s a good idea to look into insurance sales training. Turn to the experts at Zywave coaching if you’d like to make a wise investment in your agency’s future growth.