Florida Business Exchange, Inc.

Best Practice Tips
helping your insurance agency profit

Increase the value of your agency today and for future sale by measuring your business against the most profitable and fastest growing insurance agencies in the nation.

This week’s focus point: Geographical location plays a large part in the profitability of your agency. Did you know that 48% of the most profitable agencies are located in small towns?*

Defined as locations with less than 50,000 in population, small towns in Florida include places such as Lake City, Palatka, Palm Coast, Homosassa Springs, The Villages, Key West and others. In fact, more than 52% of all agencies are located in these areas.

According to the IIABA 2010 Best Practices Survey, only 10% of all agencies are located in major metropolitan areas - Miami/Miami Beach, Tampa/St. Petersburg/Clearwater, Orlando and Jacksonville. In fact, only 12% of the most profitable agencies are located in large cities and surrounding communities.

Certainly the lower costs of most small towns contribute to the profitability of these agencies. And, the personal nature of selling insurance is important to the success of most agents. It’s easy to see that personal relationships may be easier to nurture in a small town, particularly if that’s where you grew up, your kids are in local schools, you’re an active member of your church and make an effort to be a leader in your community.

So, what if you own an agency in a large metro area and you want to improve profitability? First, take a look at your expenses. A large community means increased competition - for your vendors. Shop around for the best prices on telephone, Internet, printing, office supplies, etc. Second, run your agency like you’re located in a small town. Focus on getting to know prospects in your local area and knock ‘em over with friendliness and customer service.

And, if you’re already located in a small town? Then, accept my congratulations for making a wise business choice.

Best regards,
Kathryn Christ
agency sales - valuations - consulting
Florida Business Exchange, Inc.
Direct:  (904) 451-7604
kathy@kathrynchrist.com  

Kathryn Christ is the consultant of choice for Florida’s insurance agency owners who decide to increase immediate and future value. To learn more about growing your insurance agency’s proft margin, contact Kathy at (904) 451-7604 or online at kathrynchrist.com.  

*Source:  IIABA 2010 Best Practices Survey