Just because you went through the hard work of starting an independent insurance agency, that doesn’t mean you want to keep it forever. At some point, you may want to sell it. Maybe you want to move on to another phase of your life or you have another reason.
Every insurance agent who decides to sell their agency will have a slightly different reason for doing so. But the following are some signs that it may be the right time for you to sell.
You Are No Longer Excited About the Work
Being an insurance agent should be fun and exciting. Successful agents will feel a hunger for bringing in clients or cross-selling. They will feel enthusiastic about taking the next step to do that. This may mean you want to make that extra phone call or schedule an extra meeting.
If you notice this fire and hunger to grow your agency reducing, you may be ready to sell.
Your Agency Isn’t Moving Forward
Sometimes, the reason to sell your agency is a lack of enthusiasm, but it might also be a lack of results. At some point, your agency may not seem to be moving forward or growing anymore. In this case, you may decide to sell the agency to infuse fresh energy and ideas into it.
This may be the push your agency needs to grow and the push you need to plan for your next phase of life.
You Have a Succession Plan
Many insurance agency owners like to plan ahead. When they start to think about retiring or moving on to something else, they may start training a successor. If you feel ready to sell your agency or move on and feel that your successor is fully trained, then it may be a good time to sell your insurance agency.
Your Mental Health Is Poor
Running an insurance agency can be a lot of work and stress. Sometimes, it may take a toll on you to the point that your mental health is not where it used to be. If you feel that running the agency is negatively affecting your mental health, then it may be a good idea to sell the agency.
In this case, you may even be able to sell the agency but still work there. It’s possible that the reduction in responsibilities will be enough to lower your stress and improve your mental health.
You Are Ready for an Exciting New Project
Everyone is different. While some people want to work at the same job until they retire, others like to change things up. If you are starting to get bored running your insurance agency, then it may be time to switch to another career.
Or maybe you enjoy having your own agency, but you have another project or business idea that is more exciting to you. In this case, you may want to sell the agency to fund your new project.
You Want to Retire
One of the most common signs that it is time to sell your insurance agency is if you want to retire. This is an obvious indication that selling it may be a good idea.
Before retiring, however, make sure you get an accurate idea of how much you can expect to get from selling the agency. This will help you evaluate whether you have enough money to retire.
Remember that if you think you want to retire, selling the agency isn’t the only option. Some insurance agents will semi-retire. Maybe you will pass your clients onto another one of your agents but still handle the overall running of the agency and own it. In that case, you could keep the agency.
You could also do the opposite. This would mean selling the agency but continuing to work there as an agent part-time.
You Decided to Sell, What Else to Know
So, you have decided that it is the right time to sell your insurance agency. There are a few important things you will need to know.
It May Be a Long Process
Don’t expect to be able to sell your insurance agency instantly. It is likely to take at least several months just to complete the paperwork. This means that you will have to plan ahead when you want to sell.
You Need to Estimate the Agency’s Value
You will also have to get an accurate estimate of your agency’s value before you can sell it. This will involve taking a look at your records and the value of various clients. The data on your Jenesis agency management software should help with this. Don’t forget to also factor in costs, such as paying employees and rent for the space.
This is crucial for negotiations. It also helps you evaluate whether selling the agency is the right move.
Conclusion
Not everyone who owns an insurance agency wants to do so forever. Maybe you want to retire or start a new business. Maybe your mental health is suffering, or you just don’t feel the same excitement for insurance that you used to. Before deciding to sell, estimate the value of the agency to ensure that this is the right decision.