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 that?  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.

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:

  1. Track: revenue, expenses, and taxes need to be tracked.  You can’t manage what is not measured.
  2. Monitor: you must monitor these three items by looking at your financial statements at least monthly to know where you stand.
  3. 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.