[Blog] A Blueprint for Growth

Troy Korsgaden

When I wrote my first business plan many years ago, it was a single page. I wrote it in the backyard with a friend. I told him I’d been inspired to do so by a book I’d read recently, so we both sat outside and crafted our plans. Mine wasn’t a detailed document; it was really just a vision of what my future business would look like. But it became my guiding light. I kept it on my desk where I could see it every day. My friend stuffed his in a drawer.

Ten years later, my friend was in the exact same spot he had been when we wrote those plans—the same number of clients, the same location, the same number of employees, the same everything—while my business had grown by leaps and bounds, and I was recognized as one of the top multiline insurance agents in the company.

The moral of this story is clear. Creating and executing a business plan can transform your business: I know this is true because it has worked for me for the 30-plus years I’ve been in the industry. But your business plan must be a living document—one you refer to daily, focusing on the activities that move you toward your vision.

When I talk to agency owners about their business plans, I am often surprised by how many of them view the annual business planning process as a chore that takes them away from their real job of selling and service. So many simply go through the motions of creating a plan and then stuff it in a drawer or, worse yet, skip planning altogether.

I get it. You’re busy. Financial services and insurance professionals are some of the busiest people I know. You spend your days (and often your nights) developing new leads, meeting with prospects and clients, training team members, networking in your community . . . the list goes on and on. It’s hard to carve out time to stop doing and start planning. But, think about it, would an architect build a house without a blueprint, or a pilot fly a plane without a flight plan? Of course not. No matter how experienced they are—how many houses they’ve built or flights they’ve completed—these professionals understand that their success depends on having a clear vision of the desired outcome and a plan for how to get there. Your business deserves the same level of professionalism. You owe it to yourself, your team and your clients.

Passion, Purpose, People

Rather than feeling like a chore, the planning process should inspire and engage you and your team. (And I hope it goes without saying that you should include your team in the planning process.) I find that many agency teams rush through the vision, mission and values portion of the business plan. The plan is all about the numbers: appointments held, policies sold, client retention, revenue growth and all the other indicators of agency success.

Yet, planning can also be an opportunity to reinforce your shared purpose and reignite the passion for what you do. The real value of planning lies in the process, the conversations you have and the questions you ask. Take time to review all that you accomplished in the previous year—not just the number of policies sold, but the people you helped. Remember, your true purpose is being there when people need you most.

And, speaking of people, where are they in your business plan? Ultimately, your plan is about them, not numbers. The numbers explain how you will know you’ve succeeded; they are essential to the plan and to your ability to grow and sustain a thriving business. But your end goal is all about people—as a business owner, it is about serving your clients, and as a leader, serving your team. Remember: serve first, and the results will follow.

Here are a few questions to discuss with your team during the planning process to inspire passion and purpose:

• What do we believe in as an organization and what do we want to be known for?
• What inspires us to keep going even when it’s hard?
• What can we do to better serve our clients—to surround them with protection?
• How can we support each other, working as a team to achieve our goals?
• What makes us proud to be a part of this team?

Rather than rushing through this part of the plan, use these questions and the conversations they inspire to lay a foundation for the rest of the plan that puts people directly in the center.

5 Essential Elements

I’ve learned much over the years, and my business plans changed as I gained more experience. My most recent plan is 150 pages long. It is still very much a vision of what I want my business to look like in the future, but now it also includes detailed strategies in the areas I’ve identified as essential for sustainable growth.

Often, when agency owners share their business plans with me, what they really have is a marketing plan, and no matter how strong it might be, it is not a business plan. As business owners, you must look at the entirety of your practice. Think of your practice as an ecosystem of interdependent parts that work together toward a common goal. Your practice is only as strong as the weakest link in the ecosystem.

You will need to examine these five areas of your practice as you develop your business plan: organizational structure and staffing, business development, client retention, operational alignment and culture and team engagement.

1. Organizational Structure and Staffing

An effective organizational structure clarifies roles, responsibilities and expectations. It is the foundation for how your business operates and grows. Questions to consider include:

• Does your current business structure support your growth goals?
• Does your compensation strategy attract and retain top talent?
• Do team members have the skills and resources they need to perform to a level of excellence?
• Do your onboarding and everboarding processes set team members up for success?
• What external expertise partners would help you to grow your business and serve your clients?

Look at where you are now and where you want to be, and ensure you have the structure in place to achieve your vision.

2. Business Development

This, of course, is at the heart of what you do. Expanding into new markets, developing leads and increasing household product density are essential for growth. Understandably, this is the area where many agency owners spend most of their time in the planning process. As you build your plan and set goals, I recommend asking these two questions that are often overlooked:

Are we generating enough appointments every day to sustain a consistent selling cycle? In my experience, this is an area where many agencies fall short. They simply aren’t scheduling enough appointments. To maintain a consistent selling cycle, you must “fill the seats” every day. I recommend a minimum of 10 agency appointments each day.

Are we maintaining a balanced book of business? This is important both for your agency and your clients. A balanced book creates more efficiency within your practice. It is easier to manage 1,000 clients with four products than 4,000 clients with one. It also encourages you to include cross-selling strategies in your plan. Your current clientele is your most valuable resource for growing your business. A balanced book benefits your clients by ensuring that you truly are surrounding them with protection and helping them achieve their financial goals.

3. Client Retention

Neglecting new sales will result in stagnation. But maintaining a strong focus on client retention can ensure steady revenue and profitability. To increase client retention, focus on these three questions:

How can we continually deepen relationships with our clients? Every client interaction is an opportunity to deepen the relationship. As part of your business plan, identify strategies to gather more information about your clients and connect with them more often. You should be in contact with clients at least seven times a year.

Are we providing an unrivaled experience for our clients? Client experience is the true differentiator today. Studies have shown that people are willing to pay more and are more loyal to companies that provide exceptional service. Examine the client journey from beginning to end and across every communication channel. What more can you do to surprise and delight your clients?

How are we representing ourselves to the communities we serve? Your brand, marketing and public relations efforts, social media presence and community involvement all affect the public perception of your agency, which, in turn, affects your ability to attract new clients (and new team members). Ensure that the image you are presenting to your clients, prospects, potential team members and community aligns with the vision of what you want your organization to be, the purpose you serve and the values you embrace.

4. Operational Alignment

Your organization’s systems and processes must support your efforts to grow your business and serve your clients. Three important questions to ask regarding operations during your planning process are:

What is the financial health of our organization, and how will that affect our plan?

How can we leverage technology to increase efficiency and provide unrivaled service to our clients?

Are we prepared for the unexpected?

Additionally, you need to pay close attention to three key areas of your business.

Business Financials. I am often surprised at how many agency owners have only a rudimentary understanding of their organization’s financials. While you don’t need to have the in-depth knowledge of an accountant, you should be able to read and analyze a profit and loss statement, cash flow statement and balance sheet. Understanding these documents will help you assess the financial health of your business, make strategic decisions, and plan for the future.

Business Systems. Clients today have high expectations for efficiency and convenience. Examine your agency’s systems and processes to identify opportunities to leverage technology. How can you provide better service to your clients or increase team productivity? What data can you collect at the local level that will provide valuable insight into your marketplace?

Business Continuity. A business continuity plan ensures that critical business functions can continue during and after an unexpected event. These may be external events, like a natural disaster that shuts down your office, or internal events, like the loss of a key team member. Either way, business is disrupted. And, just as we tell clients that the worst time to figure out what kind of coverage they have is at the time of a loss, it is also the worst time for a business to start thinking about its continuity plan.

5. Culture and Team Engagement

Studies have shown that culture and the work environment are key drivers of performance, productivity and retention. You must be intentional in how you build yours. Here are some questions to consider as you create your business plan:

• What kind of culture do we want to create? How do the actions of our people, processes and systems support that culture?
• What can we do to strengthen the team’s connection to our purpose and increase their engagement in achieving our goals?
• What framework is in place to foster teamwork and high performance?
• What can I do to become a stronger leader?

Leadership skills have become increasingly important as more companies and agencies move to team selling. The skills that made you successful as a solo practitioner are not the same as those you will need to lead and engage a team. As you develop your business plan, remember to include a plan for your personal development as well.

Addressing these five essential elements for growth in your business plan while continually asking, “What can we do to better serve our clients and achieve our goals?” will put you well along the path toward a strong and successful future.