How many times have we considered what we'd do differently if we had it all to do over again? I was meeting recently with an agency owner in the midst of trying to undo some very ugly shareholder issues when he commented: "We could have used this advice when we were starting the business. Unfortunately, that's the time we could least afford to pay a consultant."
What are the basic principles that every insurance agency, new or old, should focus on to build a strong, viable and profitable enterprise? Recognizing that our industry is once again enjoying a great deal of start-up activity, it's worthwhile to consider some of the foundational organizational principles exhibited by many Best Practices agencies.
Avoid the trap of paying partners the same amount, regardless of contribution. What sounds equitable on the front-end of a business formation often proves highly problematic years later. The truth is that different roles have different values that should be compensated differently.
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