Whether your realize it or not, every agent in the country will spend $1 million over the next five years! This is the number one item affecting your bottom line and it’s important to know
where that money is being spent. Ask yourself as a business owner: “does your current tracking, planning, and budget allocation align with the results that you want to achieve?” You have a partner in your business that you may not have realized - the government. With tax rates between federal, state, and local taxes often exceeding 40%, it is a significant part of your business. If you had a revenue line that was 40% of your business, would you track it? Same goes for taxes...In any small business, including insurance agencies, there's three ways that you can improve your take-home pay: either increase business revenue, decrease expenses, or focus on tax liability.
If you had a revenue line that was 40% of your business,
would you track it?
In order to play this game you can't fall short on any of the following 3 routines when it comes to your agency's financials:
- Track: revenue, expenses, and taxes need to be tracked. You can't manage what is not measured.
- Monitor: you must monitor these three items by looking at your financial statements at least monthly to know where you stand.
- Compare: compare your financial metrics to months past, quarters past, and to other agents to truly determine forward momentum, increased business acumen, and ultimately an increased bottom line.
Learn how Club Capital clients are doing this with their agencies.