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Agency Owners: What Would You Do with a Mulligan?
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If agency owners close to retirement could go back in time, what would they say their younger selves? That's an excellent question raised by InsurBanc CEO Dave Tralka in a return "On Point" appearance. "Boomer owners often have regrets that, with the luxury of time, they could have cleaned up. Maybe it's a better work/life balance," Dave says. Or perhaps hiring younger producers and future owners, investing in technology, or owning real estate versus leasing. "The single-biggest topic that comes up is staffing development," he says. "A lot of principals find that the next generation isn't as enamored with the insurance business as perhaps they were. Or there are no offspring or family members to take over. So, grooming a successor who is not the most apparent one is one of the things they look back on and say, 'I would have had more options for my next stage.' Dave also comments on what he sees as a trend of "build versus buy" agencies. More firms, he says, "are using available working capital to bring in new talent for a future perpetuation or to work out of a non-compete contract." That way they don't strain their operating budget to pay for the transition period. "Organic growth is the best return that agency principals can get," Dave says.
