AGENCYBUDGET

Agency, it is better to only include increases in revenue when you can easily estimate them and when they have a fairly high likelihood of occurring

Remember: Your Agency’s expected revenue will set the “tone” for your Agency’s expected expenses. Overestimating future revenue may result in overspending if you are not cautious.

#3: Use Reputable Information Sources

Ideally, estimates for specific expenses should draw on real data.

One method for estimating your future expenses is to obtain estimates directly from the business(es) you are expecting to purchase goods/services from. For example, the price of a new Agency Management Software can usually be obtained by either going to their website or by contacting the manufacturer directly. This is the ideal method for estimating expenses because it reflects the cost of the item right now.

Occasionally, a new expense may not have a “market price”, or the market price may be difficult or

Continued from page 31 impossible to obtain. For example, you may be expecting to add a new producer, but are not sure how much you will have to pay them in their first year, and furthermore, you are not sure how it will affect your revenue. The best option in this case is to look at past data and use it as a benchmark. Historically, how much have you paid producers in their first year on average? How much revenue have new producers generated in their first year on average?

Once you have built your budget, be sure to share the goals and measurement metrics with your team. One of the benefits to establishing a budget is determining the key performance metrics that you can use to assess your overall and individual performance across the team. By mapping out the year, you can have welldefined metrics that you can use as a gauge all throughout the year. This oversight and management will allow you to adjust or pivot if something unexpected occurs or if a new opportunity arises.

Give

the budgeting tool a try and let us know what you think!

Independent Market Solutions Jan 2023

If you’re looking to grow your business, expanding your agency’s product offerings is a great way to generate more revenue. Whether you’re looking to diversify your current book of business or just need a little head start securing company appointments, Independent Market Solutions (IMS) can help.

IMS was created with the goal of providing member agents access to quality insurance markets. Since its creation, the number of participating carriers has grown each year and in 2022, IMS added six new carriers to its roster of company appointments. Looking ahead to 2023, the program will continue working to grow carrier partnerships to include more carriers that offer personal, commercial, and various specialty lines.

Unlike some other market access arrangements, there are no subscription fees and low to no volume commitments with IMS. Agents who gain appointments through IMS can maintain a direct working relationship with carriers, all while taking advantage of competitive commissions, 100 percent ownership of expirations, and participation in any earned program contingencies.

IMS market availability in Louisiana includes several participating carriers. If you’d like to apply for an appointment or learn more about the carriers IMS can get you connected with, click here.