As a business person, you are responsible for earning the revenue to pay expenses. You
are working to establish your own business with your own corporate identity. This can be
personally satisfying, and for some the last step needed for ultimate success, but there is a
price in time, effort, and hassle.
The danger for many in setting up on their own, taking more responsibility for their
future destiny, is that the time needed to run the
operation is not budgeted correctly, in proper balance, with time for selling. The financial
health of the operation spirals downward. Money lost can always be made again, time
lost cannot. Efficiency in your operation’s management is essential to your future
success.
In today’s environment of smaller commissions and lower premiums, increases in
production and efficiency in operation are required just to stay even. The MDRT’s Cost
Of Doing Business Survey shows that companies have consistently reduced fixed
allowances for overhead over the years. Companies’s contributions to agent overhead are
more and more tied directly and solely to new premium volume, and less and less to
loyalty factors. Thus it is increasingly important that you make informed decisions to
determine that your operation is efficient now and in the future.
There is no substitute for time and trust when deciding on the equipment and the
technology needed for your office. Unfortunately, as with insurance, there is no “best
solution”. Yes, there are guidelines you can follow to shorten the process, and archaic
technologies to avoid, which will be addressed in the following sections. However, you
will not be able to avoid a commitment of time to learn and understand about a
technology. And even once you feel you understand, you will still have to put yourself in
the hands of someone you trust when making the final purchase decision.
In each section of this chapter, consultation with an expert can make your decision easier,
and in the long run, save you money. As an insurance agent, the process of setting up an
office, equipping an office, or just upgrading an office can be a business opportunity. If
you don’t already have a client in a particular area, there is now the opportunity to obtain
a new client at the same time as you receive valuable advice and assistance.
It’s all just shopping. Take the same approach you would to purchase any major item for
your home. Talk to various suppliers, talk to users of equipment, talk to friends and
associates. Finally, enlist the aid of someone you trust to help finalize your decision. And
then look for and negotiate the best deal.
Once you have decided on a particular solution, remember that what you are
contemplating purchasing is a commodity for which paying more does not necessarily
mean you are getting more. So check out a number of stores as prices can vary
dramatically.
Business and trade shows are also excellent sources for information on what is available.
Your shopping effort is made easier because the main suppliers are all concentrated in
one place and readily available for cross comparison. And at the least, these shows
provide an
opportunity for prospecting.
