Even the most optimistic forecasters concede that the climb out of this Great Recession will continue to be steep and arduous. Florida, especially, has been hammered with high unemployment, mortgage failures, and tumbling property values. The national recession and its resultant drop in tourism and decreased number of new business coming into the state have exacerbated our problems.

In insurance agencies across the state, income has either remained relatively flat or decreased, with clients purchasing fewer products and carriers reducing commissions. There was a time when carriers paid 20 percent commissions and also paid for all the inspections, MVRs, credit reports, and the like. Those days are gone — and they are not coming back.

In response to these diminishing returns, agencies are searching for ways to survive in this "new normal." The most effective response may be for agency owners to get back to basics and focus on three areas critical business areas — income, outgo and upkeep.